Regional REIT (RGL) AI Stock Analysis

• Market Cap: £181.21M
• Dividend Yield: 8.41%
• Average Volume (3M): 232.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.83
• Revenue Growth: -5.48%
• EPS Growth: 89.60%
• Country: UK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): 0.05
• Shares Outstanding: 162,088,490
• 10 Day Avg. Volume: 246,155
• 30 Day Avg. Volume: 232,038
• PEG Ratio: 0.06
• Price to Book (P/B): 0.39
• Price to Sales (P/S): 1.50
• P/FCF Ratio: 6.84
• 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: £128.00
• Price Target Upside: 14.49% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 50 Neutral
• Price Target: 116.00p ▲(3.76% Upside)

Regional REIT's overall stock score reflects significant financial challenges, particularly in achieving profitability and managing leverage. While there are positive aspects such as strategic asset management and a high dividend yield, technical indicators and earnings call insights suggest caution. The company's efforts to stabilize and grow its portfolio are promising but face headwinds from market uncertainties and increased debt costs.

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

The financial performance of Regional REIT is challenged by volatile revenue and persistent negative margins, despite some improvements in equity and cash flow management. The company needs to focus on cost management and stabilizing revenue streams for long-term 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	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	86.67M	90.98M	91.88M	93.32M	79.90M	75.94M
Gross Profit	38.73M	40.70M	47.15M	54.22M	55.82M	45.66M
EBITDA	14.76M	34.83M	35.91M	73.98M	45.24M	39.45M
Net Income	-20.30M	-39.54M	-67.46M	-65.16M	28.76M	-31.00M
Balance Sheet
Total Assets	700.66M	722.13M	782.42M	906.05M	1.01B	850.61M
Cash, Cash Equivalents and Short-Term Investments	47.12M	55.87M	34.51M	50.15M	56.13M	67.37M
Total Debt	317.79M	323.77M	426.99M	446.52M	449.87M	380.94M
Total Liabilities	364.79M	370.52M	476.33M	503.11M	508.29M	430.03M
Stockholders Equity	335.88M	351.61M	306.09M	402.94M	502.40M	420.58M
Cash Flow
Free Cash Flow	3.98M	19.91M	21.26M	33.26M	43.84M	35.67M
Operating Cash Flow	20.43M	19.91M	21.26M	33.26M	43.84M	35.67M
Investing Cash Flow	5.78M	21.44M	14.80M	-5.08M	-98.24M	-230.00K
Financing Cash Flow	-5.41M	-19.14M	-51.70M	-34.15M	43.15M	-5.31M

Regional REIT Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 111.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 111.8 is below the 20-day moving average (MA) of 116.10, below the 50-day MA of 118.68, and below the 200-day MA of 113.32, indicating a bearish trend. The MACD of -1.38 indicates Positive momentum. The RSI at 32.97 is Neutral, neither overbought nor oversold. The STOCH value of 27.63 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CREI	73 Outperform	£354.64M	8.89	9.14%	7.79%	3.79%	―
AEWU	68 Neutral	£171.73M	7.05	5.56%	7.38%	―	―
SREI	68 Neutral	£234.28M	80.00	1.05%	6.98%	―	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
NRR	64 Neutral	£301.23M	11.21	5.57%	9.21%	36.09%	556.25%
PCTN	62 Neutral	$402.66M	11.33	7.04%	4.83%	-1.23%	―
RGL	50 Neutral	£181.21M	―	-6.74%	8.41%	-5.48%	89.60%

Regional REIT Corporate Events

Regional REIT Director Acquires Shares, Signaling Confidence

Regional REIT Limited announced a transaction involving the purchase of 40,000 ordinary shares by Stephen Inglis, a Non-Executive Director of the company. This transaction, conducted on the London Stock Exchange, reflects a strategic move by a key managerial figure, potentially indicating confidence in the company’s future prospects and stability, which may positively influence stakeholder perceptions.

The most recent analyst rating on (GB:RGL) stock is a Hold with a £122.00 price target. To see the full list of analyst forecasts on Regional REIT stock, see the GB:RGL Stock Forecast page.

Regional REIT Reports Strong Half-Year Results Amid Market Challenges

Regional REIT announced its half-year results for 2025, highlighting a strategic focus on long-term value despite challenging market conditions. The company reported a Total Shareholder Return of 9.6% and a dividend increase to 5.0p, supported by resilient operations and a strong capex program aimed at enhancing core assets. With a stabilizing property yield and increasing occupational demand, Regional REIT is well-positioned to capitalize on the lack of quality Grade A office supply. The company is advancing its refinancing plans and prioritizing asset disposals to reduce debt, while also achieving new lettings 4.2% ahead of estimated rental values.

Regional REIT Appoints Sarah Whitney as Independent Non-executive Director

Regional REIT has announced the appointment of Sarah Whitney as an Independent Non-executive Director, effective 4 August 2025. With over 35 years of experience in strategy, corporate finance, and real estate, Whitney will also join the Audit, Nomination, and Management Engagement and Remuneration Committees. Her extensive expertise is expected to support the company’s strategic ambitions and growth, enhancing its position in the real estate investment sector.

Bridgemere Investments Increases Stake in Regional REIT

Regional REIT Limited has announced that Bridgemere Investments Limited has increased its voting rights in the company from 20.3532% to 22.0993%. This acquisition of additional voting rights signifies a stronger influence of Bridgemere Investments within the company, potentially impacting future strategic decisions and stakeholder interests.

Regional REIT Chairman Purchases Shares, Signaling Confidence

Regional REIT Limited announced a transaction involving David Hunter, the Non-Executive Director and Chairman, who purchased 30,000 ordinary shares at a price of £1.254183 per share, totaling £37,625.49. This transaction, conducted on the London Stock Exchange, signifies confidence in the company’s future performance and may positively influence investor sentiment regarding the company’s market position.

Regional REIT Boosts Rental Income with New Lettings and Renewals

Regional REIT has successfully secured seven new lettings and eight lease renewals, resulting in an annual rental income increase of over £1.6 million, which is 6.32% above estimated rental values. This achievement highlights the effectiveness of their capital expenditure strategy and strong tenant relationships. The company is well-positioned to continue delivering value to shareholders through its strategic focus on sustainable and high-quality office spaces, amidst increasing demand and limited supply.