Regional REIT (RGL) AI Stock Analysis

• Market Cap: £199.37M
• Dividend Yield: 7.4%
• Average Volume (3M): 170.41K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.61
• Revenue Growth: -0.98%
• EPS Growth: 27.18%
• Country: UK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -0.60
• Shares Outstanding: 162,088,490
• 10 Day Avg. Volume: 151,505
• 30 Day Avg. Volume: 170,415
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 55 Neutral
• Price Target: ―

Regional REIT is navigating significant financial challenges, with improvements in balance sheet stability and cash flow management. Technical analysis shows moderate momentum, while valuation is hindered by negative earnings despite a high dividend yield. Corporate events highlight strategic steps towards recovery and growth, including capital raising and increased office occupation.

Regional REIT Business Overview & Revenue Model

Company Description

Regional REIT Limited (Regional REIT or the Company) and its subsidiaries (the Group) is a United Kingdom (UK) based real estate investment trust that launched in November 2015. It is managed by London & Scottish Property Investment Management Limited, the Asset Manager, and Toscafund Asset Management LLP, the Investment Manager. Regional REIT's commercial property portfolio is comprised wholly of income producing UK assets and comprises, predominantly, offices and industrial units located in the regional centres outside of the M25 motorway. The portfolio is highly diversified, with 151 properties as at 30 June 2020, with a valuation of £742.3m. Regional REIT pursues its investment objective by investing in, actively managing and disposing of regional core and core plus property assets. It aims to deliver an attractive total return to its Shareholders, targeting greater than 10% per annum, with a strong focus on income supported by additional capital growth prospects. The Company's shares were admitted to the Official List of the UK's Financial Conduct Authority and to trading on the London Stock Exchange on 6 November 2015.

How the Company Makes Money

Regional REIT generates revenue primarily through rental income from its portfolio of commercial properties. The company leases space to tenants across various sectors, and the rental agreements typically include long-term leases that provide predictable cash flow. Key revenue streams include base rents, service charges, and other ancillary income derived from property management services. Additionally, RGL may capitalize on property appreciation and strategic asset disposals to further enhance its earnings. The company's focus on regional properties allows it to benefit from lower competition and potentially higher yields compared to investments in the London market. Partnerships with local property managers and real estate agents also contribute to its operational efficiency and tenant acquisition strategy, thereby supporting revenue growth.

Regional REIT Financial Statement Overview

Summary

Regional REIT's financial statements indicate challenges with consistent profitability and managing leverage. While there are improvements in equity and cash flow management, persistent negative margins and revenue fluctuations pose risks. Continued focus on cost management and stabilizing revenue streams is necessary for long-term financial health.

Income Statement

The income statement shows a volatile revenue trend with significant fluctuations in profitability. Gross profit margin is consistently negative, reflecting high costs or impairments. The net profit margin is also negative, indicating persistent losses, though EBIT margins show some improvement. Overall, the financials suggest challenges in achieving profitability.

Balance Sheet

The balance sheet indicates a moderate level of stability with improved stockholders' equity in recent periods. The debt-to-equity ratio has improved due to a reduction in total debt, which strengthens the financial position. However, the equity ratio remains a concern, highlighting potential leverage risks.

Cash Flow

The cash flow statement reveals some positive aspects such as stable operating cash flow, but free cash flow growth is inconsistent. The operating cash flow to net income ratio suggests better cash flow management despite operating losses. Overall, cash flow management shows resilience but needs improvement.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	-33.29M	91.88M	93.32M	79.90M	75.94M
Gross Profit	-33.29M	47.15M	54.22M	55.82M	45.66M
EBITDA	34.83M	35.91M	73.98M	45.24M	39.45M
Net Income	-39.54M	-67.46M	-65.16M	28.76M	-31.00M
Balance Sheet
Total Assets	722.13M	782.42M	906.05M	1.01B	850.61M
Cash, Cash Equivalents and Short-Term Investments	55.87M	34.51M	50.15M	56.13M	67.37M
Total Debt	323.77M	426.99M	446.52M	449.87M	376.61M
Total Liabilities	370.52M	476.33M	503.11M	508.29M	430.03M
Stockholders Equity	351.61M	306.09M	402.94M	502.40M	420.58M
Cash Flow
Free Cash Flow	19.91M	21.26M	33.26M	43.84M	35.67M
Operating Cash Flow	19.91M	21.26M	33.26M	43.84M	35.67M
Investing Cash Flow	21.44M	14.80M	-5.08M	-98.24M	-230.00K
Financing Cash Flow	-19.14M	-51.70M	-34.15M	43.15M	-5.31M

Regional REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 123.00
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RGL, the sentiment is Positive. The current price of 123 is above the 20-day moving average (MA) of 122.95, below the 50-day MA of 123.77, and above the 200-day MA of 115.11, indicating a neutral trend. The MACD of -0.12 indicates Negative momentum. The RSI at 49.96 is Neutral, neither overbought nor oversold. The STOCH value of 55.56 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RGL.

Regional REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CREI	73 Outperform	£349.41M	8.78	9.14%	7.78%	3.79%	―
AEWU	68 Neutral	£162.86M	18.00	5.56%	7.72%	―	―
SREI	68 Neutral	£237.22M	78.23	1.05%	6.86%	―	―
Sector *	63 Neutral	$7.02B	13.41	-0.50%	6.86%	4.08%	-25.24%
NRR	61 Neutral	£298.20M	11.11	5.57%	9.15%	36.09%	556.25%
RGL	55 Neutral	£199.37M	―	-12.02%	7.40%	-0.98%	27.18%
PCTNF	―	$511.29M	12.00	7.04%	―	―	―

Regional REIT Corporate Events

Regional REIT Announces 2025 AGM Details

Regional REIT Limited has announced the details of its 2025 Annual General Meeting (AGM), scheduled for May 15, 2025, in London. The notice is available on the company’s website, and any changes to the AGM arrangements will be communicated through a Regulatory News Service and the company’s website. This announcement ensures transparency and keeps shareholders informed, reflecting the company’s commitment to good governance and stakeholder engagement.

Regional REIT Announces 2025 AGM Details

Regional REIT Limited has announced its 2025 Annual General Meeting (AGM) to be held on May 15, 2025, at the offices of Macfarlanes LLP in London. The notice for the AGM is available on the company’s website, and any changes to the meeting arrangements will be communicated through a Regulatory News Service announcement and the company’s website. This announcement ensures transparency and keeps stakeholders informed about the company’s governance activities.

Regional REIT Corrects IG Markets Shareholding Notification

Regional REIT Limited announced a correction regarding a previous notification about IG Markets Limited’s shareholding. Initially reported as increased to 6.5%, it was clarified that IG Markets Limited’s holding did not surpass the 5% threshold due to a processing error. This correction may affect stakeholders’ perception of the company’s shareholding structure.

Regional REIT’s 2024 Results: A Pathway to Recovery and Growth

Regional REIT Limited has announced its full-year results for 2024, highlighting a strong operational performance despite challenges in the property market. The company successfully raised £110.5 million, transforming its balance sheet and providing increased flexibility for future growth. With a focus on reducing its loan-to-value ratio and capitalizing on value creation opportunities, Regional REIT is optimistic about its recovery path. The company plans to invest in capital expenditure projects and pursue planning consents to enhance asset value, aiming for shareholder value over the medium term. Despite current occupational headwinds, the diversified tenant base and high-quality occupiers mitigate risks, positioning the company well for future rental growth.

Regional REIT Reports Strong Lettings, Despite Portfolio Valuation Drop

Regional REIT announced a decrease in portfolio valuation by 8.2% in 2024, despite robust trading and an improved rent roll 13.5% above the estimated rental value (ERV) from 2023. The company’s net loan-to-value ratio improved, and rent collection remained high at 98.1%. Notably, the company made significant progress in upgrading its Energy Performance Certificate (EPC) ratings, and despite holding some vacant properties longer to enhance future value, the company remains committed to maintaining high dividend payouts.