Regional REIT (LSE: RGL)

Last close As at 27/03/2024

GBP0.20

2.07 (11.39%)

Market capitalisation

GBP94m

Regional REIT (RGL) owns a highly diversified commercial property portfolio located in the regional centres of the UK.

The commercial property market is cyclical, historically exhibiting substantial swings in capital values through cycles. Income returns have been significantly more stable. Across all main sectors the market is continuing to adjust to the end of the low interest rate environment with investment activity remaining subdued.

Latest Insights

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Real Estate | Update

Regional REIT — Lancing the boil?

Real Estate | Outlook

Regional REIT — Dividend rebase pragmatic and sustainable

Real Estate | edison tv

Regional REIT – executive interview

Regional-REIT_resized

Sector

Real Estate

Equity Analyst

Martyn King

Martyn King

Director, Financials

Key Management

  • Adam Dickinson

    Head of IR

  • Daniel Taylor

    Senior independent non-executive director

  • Frances Daley

    Independent non-executive director

  • Kevin McGrath

    Chairman

  • Massy Larizadeh

    Independent non-executive director

  • Stephen Inglis

    Non Executive Director

Balance Sheet

Forecast net cash (£m)

386.3

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
% 1M 3M 12M
Actual (25.8) (47.7) (68.7)
Relative (28.1) (49.0) (70.7)
52 week high/low 58.2p/14.1p

Financials

The Q423 DPS was confirmed at 1.2p and the Q125 DPS is scheduled to be declared in May, following the FY23 results scheduled for 26 March. Mirroring market trends, the portfolio valuation was 5.9% lower on a like-for-like basis in H223, increasing LTV to 55.1%. H223 asset sales were £11.5m, and there has been good progress in FY24 to date (£5m completed and £22m in solicitors’ hands), but the investment market remains weak. Asset sales alone may be insufficient to fund the repayment of the £50m 4.5% unsecured bond that matures in August, particularly not on value-creating terms. RGL says that it is actively exploring a range of refinancing options for the retail bond. H223 lettings secured £1.3m of new rental income (£1.2m in H1), on average above estimated rental value but end-FY23 EPRA occupancy of 80% was down on H123 (82.5%).

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2021A 55.8 45.2 28.8 6.6 3.1 N/A
2022A 62.6 51.2 (65.2) 6.6 3.1 N/A
2023E 54.2 43.3 (42.1) 5.3 3.8 N/A
2024E 53.8 42.7 24.8 4.8 4.2 N/A

Outlook

Real Estate

Regional REIT — Return to the office gathers momentum

Update

Real Estate

Regional REIT — Well positioned for an office recovery

Update

Real Estate

Regional REIT — Positioning for growth

Flash note

Real Estate

Regional REIT — Advancing strategy and enhancing earnings

Update

Real Estate

Regional REIT — Quarterly DPS increased by 7%

Outlook

Real Estate

Regional REIT — Fully covered high-yielding dividend

Update

Real Estate

Regional REIT — Q420 dividend as guided

Update

Real Estate

Regional REIT — Reinstating estimates after robust H120

Update

Real Estate

Regional REIT — FY19 momentum and COVID-19 defences

Outlook

Real Estate

Regional REIT — Progress with capital raise deployment

edison tv

Real Estate

Executive interview – Regional REIT

Update

Real Estate

Regional REIT — Positive trading and dividend increase

edison tv

Real Estate

Executive Interview – Regional REIT

Update

Real Estate

Regional REIT — Creating value through asset management

Update

Real Estate

Regional REIT — Confirming outlook

edison tv

Real Estate

Executive interview – Regional REIT

Update

Real Estate

Regional REIT — Retail eligible bond 4.5% 2024

Flash note

Real Estate

Regional REIT — Q1 DPS growth confirmed

edison tv

Real Estate

Executive interview – Regional REIT

Update

Real Estate

Regional REIT — Asset growth and refinancing completed

Update

Real Estate

Regional REIT — Significant proposed growth and funding

Update

Real Estate

Regional REIT — Letting progress; trading in line

Update

Real Estate

Regional REIT — Dividend up, vacancy down

edison tv

Real Estate

Executive interview – Regional REIT

Update

Real Estate

Regional REIT — Delivering results

research

Real Estate

Regional REIT — Update 27 February 2017

Update

Real Estate

Regional REIT — Update 27 February 2017

Update

Real Estate

Regional REIT — Update 22 November 2016

edison tv

Real Estate

Executive Interview – Regional REIT

Update

Real Estate

Regional REIT — Update 4 October 2016

Initiation

Real Estate

Regional REIT — Update 26 July 2016