Regional REIT (RGL) AI Stock Analysis

• Market Cap: £165.65M
• Dividend Yield: 9.49%
• Average Volume (3M): 285.82K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.95
• 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: 344,243
• 30 Day Avg. Volume: 285,821
• 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: £140.00
• Price Target Upside: 23.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): 8.78
• Revenue Forecast (FY): £3.96B

• Rating: 54 Neutral
• Price Target: 106.00p ▼(-6.36% Downside)

Regional REIT's overall score reflects significant financial challenges, with persistent losses and high costs. While strategic initiatives and corporate events show promise, the technical indicators and valuation metrics suggest caution. The high dividend yield and insider confidence provide some support, but the company must address its profitability issues for a stronger outlook.

Positive Factors

New Lettings and Rental Growth

The successful acquisition of new lettings and rental growth indicates strong demand and effective leasing strategies, supporting long-term revenue stability.

Asset Sales and Debt Reduction

Asset sales and debt reduction efforts improve financial flexibility and reduce leverage, enhancing the company's balance sheet health.

ESG and EPC Improvements

Improving energy efficiency and sustainability aligns with regulatory trends and enhances the portfolio's attractiveness to tenants.

Negative Factors

Increased Cost of Debt

Higher debt costs can strain cash flow and reduce profitability, impacting the company's ability to invest in growth opportunities.

Unexpected Tenant Breaks

Unexpected tenant departures can lead to revenue volatility and increased vacancy costs, challenging income predictability.

Rental Income Decline

Declining rental income despite higher occupancy suggests challenges in maintaining rental rates or tenant quality, affecting revenue stability.

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 out its properties to various tenants, which provides a stable cash flow. Additionally, RGL benefits from potential capital appreciation of its real estate assets as the market value increases over time. The company may also engage in property development projects, which can yield additional income once completed and leased. Key partnerships with property management firms and local businesses can enhance tenant retention and optimize occupancy rates, further contributing to its earnings.

Regional REIT Financial Statement Overview

Summary

The financial performance of Regional REIT is challenged by negative margins and revenue fluctuations. While there are improvements in equity and cash flow management, the company struggles with consistent profitability and leverage risks.

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: 113.20
• 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 113.2 is above the 20-day moving average (MA) of 103.31, above the 50-day MA of 106.07, and above the 200-day MA of 110.07, indicating a bearish trend. The MACD of -0.67 indicates Positive momentum. The RSI at 44.37 is Neutral, neither overbought nor oversold. The STOCH value of 25.33 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	£363.66M	9.12	11.71%	7.40%	1.60%	211.81%
NRR	71 Outperform	£299.10M	11.13	6.94%	9.73%	84.02%	53.97%
AEWU	68 Neutral	£164.92M	6.77	7.37%	7.50%	-10.95%	-30.09%
SREI	68 Neutral	£267.54M	―	―	6.68%	―	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
PCTN	60 Neutral	$405.82M	11.44	7.51%	5.21%	-3.98%	412.08%
RGL	54 Neutral	£165.65M	―	-6.74%	9.49%	-5.48%	89.60%

Regional REIT Corporate Events

Regional REIT Director Acquires Shares, Signaling Confidence

Regional REIT Limited announced a transaction involving Massy Larizadeh, a Senior Independent Director, who purchased 8,850 ordinary shares at a price of £1.02828 each, totaling £9,100.28. This transaction, conducted on the London Stock Exchange, underscores the director’s confidence in the company’s prospects and may influence stakeholder perceptions positively.

Regional REIT Director Purchases Shares, Signaling Confidence

Regional REIT Limited announced a transaction involving Stephen Inglis, a Non-Executive Director, who purchased 50,000 ordinary shares at a price of £1.01 each, totaling £50,500. This transaction, conducted on the London Stock Exchange, highlights insider confidence in the company’s prospects and may positively influence stakeholder perceptions of Regional REIT’s market positioning.

Regional REIT Announces New Board Appointment

Regional REIT Limited announced the appointment of Sarah Whitney as an independent non-executive director and Chair Designate of International Public Partnerships, effective from 24 November 2025. This strategic move could enhance the company’s governance and potentially strengthen its industry positioning, signaling a commitment to robust leadership and stakeholder confidence.

Regional REIT Reports Q3 2025 Trading Update and Dividend Declaration

Regional REIT Limited announced its Q3 2025 trading update and dividend declaration, highlighting a strategic focus on reducing leverage through property disposals and maintaining high tenant retention rates. Despite challenges in leasing momentum due to economic uncertainties and government policy ambiguity, the company achieved £17.1 million in disposals and completed 21 lettings and renewals, reflecting a commitment to occupancy improvement and rental growth. The company also declared a dividend of 2.50 pence per share for the third quarter, emphasizing operational discipline and strategic asset repositioning to strengthen its portfolio and balance sheet.

Regional REIT to Present HY25 Results via Investor Meet Company

Regional REIT Limited announced a live presentation of its HY25 Results by Stephen Inglis, CEO of ESR Europe LSPIM Ltd., the Asset Manager. The presentation, scheduled for 30 September 2025, will be accessible to eligible UK investors via the Investor Meet Company platform, allowing for pre-event and live questions, which could enhance stakeholder engagement and transparency.

Regional REIT Sells Clearblue Centre at Premium Price

Regional REIT Limited has successfully sold the Clearblue Innovation Centre in Bedford for £8.8 million, achieving an 11.4% premium over its book value. The sale, which follows a lease extension and energy efficiency upgrades, will help reduce the company’s debt and strengthen its balance sheet, reflecting the effectiveness of its asset management strategy.

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.

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.