Real Estate ate ate Investors (RLE) AI Stock Analysis

• Market Cap: £55.95M
• Dividend Yield: 5.63%
• Average Volume (3M): 53.93K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.13
• Revenue Growth: -6.44%
• EPS Growth: 75.18%
• Country: UK
• Employees: 7
• Sector: Real Estate
• Sector Strength: 47
• Industry: REIT - Diversified
• EPS (TTM): <0.01
• Shares Outstanding: 174,848,190
• 10 Day Avg. Volume: 59,441
• 30 Day Avg. Volume: 53,926
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: £32.00
• Price Target Upside: 0.00%
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 51 Neutral
• Price Target: 32.00p ▲(0.00% Upside)

The overall stock score reflects a mix of financial challenges and strategic initiatives. The company's financial performance is hindered by declining revenue and profitability, while technical indicators suggest bearish momentum. However, positive corporate events, such as asset sales and debt reduction, provide some optimism for future improvements.

Real Estate ate ate Investors Business Overview & Revenue Model

Company Description

Real Estate Investors Plc is a publicly quoted, internally managed property investment company and REIT with a portfolio of 1.59 million sq ft of mixed-use commercial property, managed by a highly-experienced property team with over 100 years of combined experience of operating in the Midlands property market across all sectors. The Company's strategy is to invest in well located, real estate assets in the established and proven markets across the Midlands, with income and capital growth potential, realisable through active portfolio management, refurbishment, change of use and lettings. The portfolio has no material reliance on a single asset or occupier. On 1st January 2015, the Company converted to a REIT. Real Estate Investment Trusts are listed property investment companies or groups not liable to corporation tax on their rental income or capital gains from their qualifying activities. The Company aims to deliver capital growth and income enhancement from its assets, supporting its progressive dividend policy, which has enjoyed 7 years of consecutive growth. Further information on the Company can be found at www.reiplc.com.

How the Company Makes Money

RLE generates revenue through multiple streams, including rental income from its managed properties, profits from property sales after appreciation and renovations, and fees from advisory services provided to clients. The company also collaborates with financial institutions and real estate investment trusts (REITs) to leverage additional capital for acquisitions, enhancing its investment capabilities. Key partnerships with local contractors and real estate agencies further facilitate cost-effective renovations and market access, contributing significantly to its overall earnings.

Real Estate ate ate Investors Financial Statement Overview

Summary

The company faces declining revenue and profitability challenges, with a negative net profit margin and deteriorating EBIT margin. However, the balance sheet remains stable with moderate leverage, and cash flow generation is positive, despite a decrease in free cash flow. Strategic improvements are required to enhance profitability.

Income Statement

The company has experienced declining revenue over the past years, with a revenue decrease of 6.44% from 2023 to 2024. The net profit margin is negative in recent years, indicating profitability challenges, with net income at a loss of -21.88% in 2024. Additionally, margins have deteriorated, with a gross profit margin of 79.38% in 2024, down from previous years. The EBIT margin dropped significantly, and negative EBITDA further reflects operational difficulties.

Balance Sheet

The company maintains a moderate debt-to-equity ratio of 0.44 in 2024, which shows a manageable level of leverage. However, the equity ratio has decreased over time, indicating reduced equity in relation to total assets. ROE is negative due to net losses, impacting shareholders' returns. Overall, the balance sheet is stable but suggests room for improvement in financial leverage management.

Cash Flow

Operating cash flow remains positive, showing the company's ability to generate cash from operations, with a ratio to net income improving as losses narrow. However, free cash flow has decreased by 51.04% from 2023 to 2024, reflecting a need for better cash management strategies. The operating cash flow to net income ratio indicates resilience despite net losses.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	10.77M	11.51M	13.29M	15.97M	16.43M
Gross Profit	8.55M	9.28M	10.80M	12.64M	15.03M
EBITDA	983.00K	-7.04M	9.77M	10.99M	11.29M
Net Income	-2.36M	-9.41M	10.93M	13.92M	-20.64M
Balance Sheet
Total Assets	133.93M	156.03M	186.42M	204.30M	209.90M
Cash, Cash Equivalents and Short-Term Investments	6.88M	7.98M	7.82M	9.84M	4.24M
Total Debt	39.20M	54.41M	71.47M	89.44M	101.35M
Total Liabilities	44.43M	60.48M	77.45M	99.28M	112.22M
Stockholders Equity	89.50M	95.56M	108.97M	105.02M	97.67M
Cash Flow
Free Cash Flow	2.87M	5.86M	4.19M	8.62M	5.70M
Operating Cash Flow	5.98M	6.60M	4.19M	8.62M	6.04M
Investing Cash Flow	15.37M	16.72M	19.55M	15.16M	-341.00K
Financing Cash Flow	-22.45M	-23.16M	-25.77M	-18.19M	-11.55M

Real Estate ate ate Investors Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 32.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RLE, the sentiment is Positive. The current price of 32 is above the 20-day moving average (MA) of 31.95, above the 50-day MA of 31.88, and above the 200-day MA of 30.31, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 54.79 is Neutral, neither overbought nor oversold. The STOCH value of 39.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for GB:RLE.

Real Estate ate ate Investors Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AIRE	70 Neutral	£54.74M	10.71	7.77%	9.12%	4.10%	88.43%
AEWU	68 Neutral	£166.35M	18.39	5.56%	7.62%	―	―
Sector *	65 Neutral	$2.03B	16.82	4.04%	5.06%	2.46%	2.10%
PCA	58 Neutral	£65.86M	50.22	1.67%	6.64%	-32.42%	―
RLE	51 Neutral	£55.95M	12.96	-2.55%	5.63%	-6.44%	75.18%
API	―	£21.16M	―	-26.12%	126.13%	―	―
TOWN	58 Neutral	£58.93M	―	-0.26%	1.79%	-0.20%	98.04%

Real Estate ate ate Investors Corporate Events

Real Estate Investors Plc Reports Successful Sales and Debt Reduction

Real Estate Investors Plc has announced a trading update highlighting successful asset sales totaling £11.3 million and a reduction in debt to £34.9 million. The company is strategically managing its portfolio by targeting private investors and owner-occupiers, while preparing larger assets for sale in late 2025 and early 2026, contingent on market conditions. Despite subdued market sentiment towards larger assets, the company has maintained strong occupancy rates and rent collection, and is committed to maximizing shareholder value through its ongoing sales program and debt repayment strategy.

Real Estate Investors Plc Declares Q1 2025 Dividend Amid Strategic Portfolio Sale

Real Estate Investors Plc announced a Q1 2025 dividend of 0.4 pence per share, payable on 31 July 2025, reflecting a slight decrease from the previous year’s 0.5 pence per share. This dividend declaration aligns with the company’s strategy to maintain regular shareholder returns amidst its ongoing portfolio sale and debt reduction efforts.

Real Estate Investors Plc Secures Shareholder Support at AGM

Real Estate Investors Plc announced that all resolutions at its Annual General Meeting were passed, reflecting strong shareholder support. This outcome supports the company’s ongoing strategy of a strategic sale of its portfolio, aimed at optimizing shareholder returns and repaying debt, while continuing to pay a quarterly dividend.