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Regional REIT Limited (GB:RGL)
LSE:RGL
UK Market

Regional REIT (RGL) AI Stock Analysis

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GB

Regional REIT

(LSE:RGL)

Rating:55Neutral
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 (RGL) vs. iShares MSCI United Kingdom ETF (EWC)

Regional REIT Business Overview & Revenue Model

Company DescriptionRegional 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 MoneyRegional REIT makes money through rental income generated from its portfolio of commercial properties, primarily office and industrial spaces. The company leases these properties to a diverse range of tenants, ensuring a stable and diversified income stream. In addition to rental income, the company may also increase its earnings through property appreciation and strategic asset management, which involves refurbishing or redeveloping properties to enhance their value and attract higher-paying tenants. Regional REIT's revenue is also supported by its active acquisition strategy, targeting properties with potential for income and capital growth. The company might engage in partnerships or joint ventures to optimize its property management and expand its market reach, but specific partnership details are not available.

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
30
Negative
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
55
Neutral
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
45
Neutral
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 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
-33.29M91.88M-57.54M79.90M-25.72M
Gross Profit
-33.29M47.15M-96.82M55.82M-55.99M
EBIT
-39.47M88.05M-49.47M37.59M-31.20M
EBITDA
34.83M35.91M73.98M45.24M39.45M
Net Income Common Stockholders
-39.54M-67.46M-65.16M28.76M-31.00M
Balance SheetCash, Cash Equivalents and Short-Term Investments
55.87M34.51M37.77M49.92M54.96M
Total Assets
722.13M782.42M906.05M1.01B850.61M
Total Debt
0.00426.99M446.52M449.87M376.61M
Net Debt
-55.87M392.48M408.75M399.95M321.65M
Total Liabilities
370.52M476.33M503.11M508.29M430.03M
Stockholders Equity
351.61M306.09M402.94M502.40M420.58M
Cash FlowFree Cash Flow
19.91M21.26M33.26M43.84M35.67M
Operating Cash Flow
19.91M21.26M33.26M43.84M35.67M
Investing Cash Flow
21.44M14.80M-5.08M-98.24M-230.00K
Financing Cash Flow
-19.14M-51.70M-34.15M43.15M-5.31M

Regional REIT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price120.00
Price Trends
50DMA
112.00
Positive
100DMA
110.58
Positive
200DMA
114.98
Positive
Market Momentum
MACD
1.47
Negative
RSI
65.34
Neutral
STOCH
83.18
Negative
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 120 is above the 20-day moving average (MA) of 115.65, above the 50-day MA of 112.00, and above the 200-day MA of 114.98, indicating a bullish trend. The MACD of 1.47 indicates Negative momentum. The RSI at 65.34 is Neutral, neither overbought nor oversold. The STOCH value of 83.18 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RGL.

Regional REIT Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
£387.26M22.943.85%7.19%7.81%
68
Neutral
£164.76M18.215.56%7.69%
68
Neutral
£259.23M85.481.05%6.39%
GBNRR
67
Neutral
£378.00M18.033.55%7.86%-8.82%
61
Neutral
$2.85B10.960.41%8438.88%5.73%-21.25%
GBRGL
55
Neutral
£194.51M-12.02%11.88%-0.98%27.18%
$567.72M11.337.04%4.79%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:RGL
Regional REIT
120.00
-12.27
-9.28%
GB:AEWU
AEW UK REIT
104.00
23.90
29.84%
GB:CREI
Custodian REIT
83.50
16.44
24.52%
GB:NRR
NewRiver REIT
79.70
13.46
20.32%
GB:SREI
Schroder Real Estate ate ate Investment
53.00
10.32
24.18%
PCTNF
Picton Property Income
0.99
0.19
23.75%

Regional REIT Corporate Events

Shareholder Meetings
Regional REIT Announces 2025 AGM Details
Neutral
Apr 1, 2025

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.

Shareholder Meetings
Regional REIT Announces 2025 AGM Details
Neutral
Apr 1, 2025

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.

Regulatory Filings and Compliance
Regional REIT Corrects IG Markets Shareholding Notification
Neutral
Mar 31, 2025

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.

Private Placements and FinancingBusiness Operations and StrategyFinancial Disclosures
Regional REIT’s 2024 Results: A Pathway to Recovery and Growth
Positive
Mar 25, 2025

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.

DividendsBusiness Operations and StrategyFinancial Disclosures
Regional REIT Reports Strong Lettings, Despite Portfolio Valuation Drop
Neutral
Feb 20, 2025

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.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.