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Regional REIT Limited (GB:RGL)
LSE:RGL
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Regional REIT (RGL) AI Stock Analysis

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GB:RGL

Regional REIT

(LSE:RGL)

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Neutral 50 (OpenAI - 4o)
Rating:50Neutral
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 (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 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 Earnings Call Summary

Earnings Call Date:Sep 09, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Mar 31, 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.
Q2-2025 Updates
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.
Asset Sales and Debt Reduction
Sold assets worth GBP 23.2 million so far, with plans to reach GBP 40-50 million by the year-end, aiming to reduce net LTV to below 40%.
New Lettings and Rental Growth
Achieved 20 new lettings in H1 2025, creating a GBP 1.4 million rent roll, with rents in excess of ERV and an average growth of 4.2% ahead of ERV.
Positive Total Return
The company has produced a total return of 9.6% for the half year, slightly ahead of the index.
Strategic Pipeline and Occupier Demand
Strong progress on material new letting opportunities and increasing occupier interest expected to benefit future financial years.
ESG and EPC Improvements
Nearly 60% of the portfolio now complies with EPC A or B, with ongoing solar and 4D installation programs contributing to sustainability efforts.
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.
Rental Income Decline
Rental income is down despite increased EPRA occupancy, primarily due to unexpected breaks and void costs.
Increased Cost of Debt
Refinancing of a significant debt facility will increase the cost of funds from just under 1% to near 4%, raising the company's weighted average cost of debt from 3.4% to 4.2%.
Market Uncertainty
Geopolitical conditions and UK government instability have led to delays in decision-making and challenges in the investment market.
Slow Pace of Asset Sales
The pace of sales was slower than anticipated, affecting the planned timeline for debt reduction.
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
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
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.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue86.67M90.98M91.88M93.32M79.90M75.94M
Gross Profit38.73M40.70M47.15M54.22M55.82M45.66M
EBITDA14.76M34.83M35.91M73.98M45.24M39.45M
Net Income-20.30M-39.54M-67.46M-65.16M28.76M-31.00M
Balance Sheet
Total Assets700.66M722.13M782.42M906.05M1.01B850.61M
Cash, Cash Equivalents and Short-Term Investments47.12M55.87M34.51M50.15M56.13M67.37M
Total Debt317.79M323.77M426.99M446.52M449.87M380.94M
Total Liabilities364.79M370.52M476.33M503.11M508.29M430.03M
Stockholders Equity335.88M351.61M306.09M402.94M502.40M420.58M
Cash Flow
Free Cash Flow3.98M19.91M21.26M33.26M43.84M35.67M
Operating Cash Flow20.43M19.91M21.26M33.26M43.84M35.67M
Investing Cash Flow5.78M21.44M14.80M-5.08M-98.24M-230.00K
Financing Cash Flow-5.41M-19.14M-51.70M-34.15M43.15M-5.31M

Regional REIT Technical Analysis

Technical Analysis Sentiment
Negative
Last Price111.80
Price Trends
50DMA
118.68
Negative
100DMA
118.77
Negative
200DMA
113.32
Negative
Market Momentum
MACD
-1.38
Positive
RSI
32.97
Neutral
STOCH
27.63
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

Overall Rating
UnderperformOutperform
Sector (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
73
Outperform
£354.64M8.899.14%7.79%3.79%
68
Neutral
£171.73M7.055.56%7.38%
68
Neutral
£234.28M80.001.05%6.98%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
64
Neutral
£301.23M11.215.57%9.21%36.09%556.25%
62
Neutral
$402.66M11.337.04%4.83%-1.23%
50
Neutral
£181.21M-6.74%8.41%-5.48%89.60%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:RGL
Regional REIT
111.80
-4.22
-3.64%
GB:AEWU
AEW UK REIT
108.40
22.88
26.75%
GB:CREI
Custodian REIT
77.00
1.88
2.50%
GB:NRR
NewRiver REIT
70.60
-3.80
-5.11%
GB:SREI
Schroder Real Estate ate ate Investment
47.90
1.27
2.72%
GB:PCTN
Picton Property Income
77.70
9.92
14.64%

Regional REIT Corporate Events

Business Operations and Strategy
Regional REIT Director Acquires Shares, Signaling Confidence
Positive
Sep 11, 2025

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.

Business Operations and StrategyDividendsFinancial Disclosures
Regional REIT Reports Strong Half-Year Results Amid Market Challenges
Positive
Sep 9, 2025

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.

Business Operations and StrategyExecutive/Board Changes
Regional REIT Appoints Sarah Whitney as Independent Non-executive Director
Positive
Jul 21, 2025

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.

Business Operations and Strategy
Bridgemere Investments Increases Stake in Regional REIT
Neutral
Jul 10, 2025

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.

Other
Regional REIT Chairman Purchases Shares, Signaling Confidence
Positive
Jul 7, 2025

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.

Business Operations and Strategy
Regional REIT Boosts Rental Income with New Lettings and Renewals
Positive
Jun 26, 2025

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.

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.Date of analysis: Oct 09, 2025