Regional REIT Limited (GB:RGL)
LSE:RGL
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Regional REIT
(LSE:RGL)
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Rating:51Neutral
Price Target:
90.00 p
▼(-20.49% Downside)
Action:ReiteratedDate:03/25/26
The score is held back primarily by weak financial performance (multi-year net losses, declining revenue, and weaker free cash flow) and bearish technicals (below key moving averages with negative MACD). Offsetting factors include improved balance-sheet positioning from lower debt, a very high dividend yield, and an earnings update showing progress on lettings and planned deleveraging—tempered by tenant breaks and rising debt costs.
Positive Factors
Improved leverage
A material reduction in total debt meaningfully lowers balance-sheet risk and refinancing pressure. Durable lower leverage increases financial flexibility to execute asset sales, withstand cyclical rents, and supports the firm's stated LTV target, strengthening medium-term solvency and dividend support.
Negative Factors
Multi-year losses and revenue decline
Sustained net losses and declining top-line reduce retained earnings and erode the equity base, constraining internal funding for capex and distributions. This structural profitability weakness increases reliance on asset disposals and external financing, heightening vulnerability to cyclical downturns and capital market access.
Read all positive and negative factors
Positive Factors
Negative Factors
Improved leverage
A material reduction in total debt meaningfully lowers balance-sheet risk and refinancing pressure. Durable lower leverage increases financial flexibility to execute asset sales, withstand cyclical rents, and supports the firm's stated LTV target, strengthening medium-term solvency and dividend support.
Read all positive factors
Regional REIT (RGL) vs. iShares MSCI United Kingdom ETF (EWC)
Market Cap
£141.02M
Dividend Yield9.7%
Average Volume (3M)308.92K
Price to Earnings (P/E)―
Beta (1Y)0.65
Revenue Growth-5.48%
EPS Growth89.60%
CountryUK
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)-0.05
Shares Outstanding162,088,490
10 Day Avg. Volume414,443
30 Day Avg. Volume308,923
Financial Highlights & Ratios
PEG Ratio0.15
Price to Book (P/B)0.54
Price to Sales (P/S)2.20
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)0.09
Revenue Forecast (FY)£47.73M
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 Lim...
How the Company Makes Money
Regional REIT makes money primarily by earning rental income from leasing its commercial properties to tenants under lease agreements. Revenue is driven by the level of occupancy across its portfolio, the contracted rent levels, and the credit qua...
Regional REIT Earnings Call Summary
Earnings Call Date:Sep 09, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Sep 15, 2026
Earnings Call Sentiment Neutral
The earnings call presented a mixed picture with substantial progress in strategic investments, asset sales, and new lettings, along with positive total returns and sustainability initiatives. However, unexpected tenant breaks, rental income decline, increased debt costs, and market uncertainties posed significant challenges. Despite these issues, a cautiously optimistic outlook was expressed, particularly regarding future occupier demand and market stabilization.Positive Updates
Capex Investment Progress
Invested GBP 6 million in Capex in the first 6 months of 2025, with 5 projects on site and 18 in transition, compared to GBP 8.2 million for the entire 2024.
Negative Updates
Unexpected Tenant Breaks
Experienced unexpected tenant breaks causing a 1.03% like-for-like NAV decline, impacting income and leading to a downward market guidance.
Read all updates
Q2-2025 Updates
Positive
Negative
Capex Investment Progress
Invested GBP 6 million in Capex in the first 6 months of 2025, with 5 projects on site and 18 in transition, compared to GBP 8.2 million for the entire 2024.
Read all positive updates
Company Guidance
In the recent investor presentation, Regional REIT Limited provided guidance on several key financial metrics and strategic goals. The company reported a like-for-like net asset value decline of 1.03% due to unexpected tenant breaks, but emphasized asset value stability excluding these specific assets. Despite a prudent downward adjustment in market consensus for this year's income, the dividend is expected to remain at 10p per share. The company is actively working on a pipeline of new letting opportunities, with 20 new lettings achieved in H1, exceeding the estimated rental value. The Capex program has seen an investment of GBP 6 million in the first half of 2025, with significant progress on ongoing projects. Asset sales have totaled GBP 23.2 million, with further sales anticipated to reduce debt levels. The net loan-to-value (LTV) ratio is projected to fall below 40% by year-end. Earnings per share on an EPRA basis are reported at 5.2p, fully covering the 5p per share dividend for H1. The company is also focusing on strategic asset retention and disposal, with a goal of maintaining a portfolio of 75% core assets for long-term growth.Regional REIT Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
48
Neutral
Cash Flow
52
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 78.63M | 90.98M | 91.88M | 93.32M | 79.90M |
| Gross Profit | 34.10M | 40.70M | 47.15M | 54.22M | 55.82M |
| EBITDA | -4.14M | 34.83M | 35.91M | 73.98M | 45.24M |
| Net Income | -16.35M | -39.54M | -67.46M | -65.16M | 28.76M |
Balance Sheet | |||||
| Total Assets | 636.58M | 722.13M | 782.42M | 906.05M | 1.01B |
| Cash, Cash Equivalents and Short-Term Investments | 37.73M | 55.87M | 34.51M | 50.15M | 56.13M |
| Total Debt | 273.73M | 323.77M | 426.99M | 446.52M | 449.87M |
| Total Liabilities | 317.29M | 370.52M | 476.33M | 503.11M | 508.29M |
| Stockholders Equity | 319.29M | 351.61M | 306.09M | 402.94M | 502.40M |
Cash Flow | |||||
| Free Cash Flow | 0.00 | 19.91M | 21.26M | 33.26M | 43.84M |
| Operating Cash Flow | 12.98M | 19.91M | 21.26M | 33.26M | 43.84M |
| Investing Cash Flow | 35.39M | 21.44M | 14.80M | -5.08M | -98.24M |
| Financing Cash Flow | -67.36M | -19.14M | -51.70M | -34.15M | 43.15M |
Regional REIT Technical Analysis
Negative
113.20
Price Trends
97.77
Negative
99.45
Negative
105.84
Negative
Market Momentum
-3.32
Positive
33.99
Neutral
26.55
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RGL, the sentiment is Negative. The current price of 113.2 is above the 20-day moving average (MA) of 93.15, above the 50-day MA of 97.77, and above the 200-day MA of 105.84, indicating a bearish trend. The MACD of -3.32 indicates Positive momentum. The RSI at 33.99 is Neutral, neither overbought nor oversold. The STOCH value of 26.55 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:RGL.
Regional REIT Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | £50.18M | 3.28 | 6.10% | 3.92% | -6.10% | 889.93% | |
71 Outperform | £309.66M | 5.78 | 6.35% | 9.66% | 84.02% | 53.97% | |
66 Neutral | £37.42M | 54.66 | 4.33% | 7.14% | -41.22% | ― | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | £397.33M | 6.81 | 7.51% | 5.15% | -3.98% | 412.08% | |
51 Neutral | £141.02M | -10.59 | -4.99% | 9.70% | -5.48% | 89.60% | |
46 Neutral | £50.51M | -9.68 | -2.97% | 3.94% | 16.08% | 56.94% |
* Real Estate Sector Average
GB:RGL
Regional REIT
87.00
-6.73
-7.18%
GB:NRR
NewRiver REIT
71.90
11.57
19.17%
GB:PCA
Palace Capital
185.00
-2.69
-1.43%
GB:PNS
Panther Securities
290.00
11.18
4.01%
GB:TOWN
Town Centre Securities
120.00
-6.56
-5.18%
GB:PCTN
Picton Property Income
77.80
14.76
23.41%
Regional REIT Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresPrivate Placements and Financing
Regional REIT Tightens Balance Sheet as It Bets on Regional Office Recovery
Neutral
Mar 24, 2026
Regional REIT reported 2025 full-year results showing resilient operations in a tough market, with portfolio value at £555.2m and like-for-like valuations down 5.0% amid disposals. EPRA EPS fell to 11.8p, but a fully covered 10p dividend was ...
Business Operations and StrategyFinancial Disclosures
Regional REIT to Brief Investors on Full-Year Results via Online Presentation
Neutral
Mar 20, 2026
Regional REIT has scheduled a live online presentation of its full-year results on 25 March 2026, to be delivered by Stephen Inglis via the Investor Meet Company platform. The event, which is open to existing and prospective shareholders, undersco...
Business Operations and StrategyDividendsFinancial Disclosures
Regional REIT Cuts 2026 Dividend Target as It Prioritises Portfolio Upgrades and Debt Reduction
Negative
Feb 19, 2026
Regional REIT has reported a 5% like-for-like fall in portfolio value for 2025 to £555.2m, driven mainly by income effects from prior tenant lease breaks, but met key operational goals including £51.6m of asset disposals at a premium to ...
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.