Regional REIT - Edison Group

Overview
Price performance
Financials
Research
Thematics

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 while income returns have been significantly more stable. Office valuations are significantly down from the 2022 peak, while rents have increased, and may benefit from the expected decline in interest rates.

Latest Insights

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Real Estate |
edison tv

02.07.24

Regional REIT – executive interview

Real Estate |
Flash note

22.05.24

Regional REIT — Q124 DPS unchanged ahead of refinancing

Real Estate |
Flash note

09.04.24

Regional REIT — Performing as expected ahead of refinancing

Real Estate |
Update

01.03.24

Regional REIT — Lancing the boil?

Regional-REIT_resized

Sector

Real Estate

Equity Analyst

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 debt (£m)

N/A

Forecast gearing ratio (%)

N/A

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	(5.2)	19.4	(52.5)
Relative	(4.0)	15.2	(57.1)
52 week high/low	47.9p/14.1p

Financials

The Q124 DPS was maintained at 1.2p but full year DPS will partly depend on Regional REIT’s chosen route for refinancing the £50m 4.5% unsecured bond maturing in August and its broader loan-to-value (LTV) reduction plans. It continues to make good progress with asset disposals but these are unlikely to be sufficient to fund repayment of the bond. Q1 sales were £15m (before costs) with sales of £1.1m completed since. The disposal programme includes 59 properties totalling £111m. Strong rent collection and leasing momentum was maintained, at rent levels above estimated rental value, and EPC ratings strengthened further. EPRA occupancy was little changed at 79.9% but, allowing for expiries and including asset sales (we estimate £1.4m pa of rental income), rent roll was £2.3m lower at £65.5m. Borrowings reduced by c £8m to c £413m with cash and equivalents of £33.5m little changed. Pro-forma LTV was 55.2%.

Y/E Dec	Revenue (£m)	EBITDA (£m)	PBT (£m)	EPS (fd) (p)	P/E (x)	P/CF (x)
2022A	62.6	51.2	(65.2)	6.6	2.2	N/A
2023A	53.7	43.1	(67.4)	5.2	2.8	N/A
2024E	N/A	N/A	N/A	N/A	N/A	N/A
2025E	N/A	N/A	N/A	N/A	N/A	N/A

Research

Regional-REIT_resized

Update

Real Estate

17.04.23

Regional REIT — Covered dividend with a 12% yield

Regional-REIT_resized

Update

Real Estate

27.02.23

Regional REIT — FY22 DPS covered and yields c 11% yield

Real Estate

edison tv

Regional REIT – executive interview

Update

Real Estate

11.11.22

Regional REIT — Operational progress supports DPS

Update

Real Estate

27.09.22

Regional REIT — Continuing to deliver income-led returns

edison tv

Real Estate

23.09.22

Regional REIT – executive interview

Flash note

Real Estate

23.06.22

Regional REIT — Acquisitions are accretive and portfolio enhancing

Outlook

Real Estate

06.06.22

Regional REIT — Return to the office gathers momentum

Update

Real Estate

04.04.22

Regional REIT — Well positioned for an office recovery

Update

Real Estate

24.02.22

Regional REIT — FY21 DPS target met, confirming attractive yield

edison tv

Real Estate

08.10.21

Interview with Stephen Inglis, CEO of the asset manager to Regional REIT

Update

Real Estate

01.10.21

Regional REIT — Positioning for growth

Flash note

Real Estate

01.09.21

Regional REIT — Advancing strategy and enhancing earnings

Update

Real Estate

20.05.21

Regional REIT — Quarterly DPS increased by 7%

Outlook

Real Estate

12.04.21

Regional REIT — Fully covered high-yielding dividend

Update

Real Estate

02.03.21

Regional REIT — Q420 dividend as guided

Update

Real Estate

17.11.20

Regional REIT — Focusing strategy and potential buy-back

Update

Real Estate

30.09.20

Regional REIT — Reinstating estimates after robust H120

Update

Real Estate

24.04.20

Regional REIT — FY19 momentum and COVID-19 defences

Outlook

Real Estate

04.11.19

Regional REIT — Progress with capital raise deployment

edison tv

Real Estate

16.09.19

Executive interview – Regional REIT

Update

Real Estate

09.08.19

Regional REIT — Capital raised for accretive acquisitions

Update

Real Estate

03.06.19

Regional REIT — Positive trading and dividend increase

edison tv

Real Estate

23.04.19

Executive Interview – Regional REIT

Update

Real Estate

11.04.19

Regional REIT — Creating value through asset management

Update

Real Estate

06.03.19

Regional REIT — Confirming outlook

edison tv

Real Estate

20.09.18

Executive interview – Regional REIT

Update

Real Estate

20.07.18

Regional REIT — Retail eligible bond 4.5% 2024

Flash note

Real Estate

21.05.18

Regional REIT — Q1 DPS growth confirmed

Update

Real Estate

06.04.18

Regional REIT — Acquisitions driving growth and diversification

edison tv

Real Estate

06.04.18

Executive interview – Regional REIT

Update

Real Estate

16.01.18

Regional REIT — Asset growth and refinancing completed

Update

Real Estate

06.12.17

Regional REIT — Significant proposed growth and funding

Update

Real Estate

21.11.17

Regional REIT — Letting progress; trading in line

Update

Real Estate

05.06.17

Regional REIT — Dividend up, vacancy down

edison tv

Real Estate

04.04.17

Executive interview – Regional REIT

Update

Real Estate

03.04.17

Regional REIT — Delivering results

research

Real Estate

27.02.17

Regional REIT — Update 27 February 2017

Update

Real Estate

27.02.17

Regional REIT — Update 27 February 2017

Update

Real Estate

22.11.16

Regional REIT — Update 22 November 2016

edison tv

Real Estate

25.10.16

Executive Interview – Regional REIT

Update

Real Estate

04.10.16

Regional REIT — Update 4 October 2016

Initiation

Real Estate

26.07.16

Regional REIT — Update 26 July 2016

thematic

Real Estate

17.03.21

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Financials

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