Real Estate ate ate Investors (RLE) AI Stock Analysis

• Market Cap: £55.08M
• Dividend Yield: 5.08%
• Average Volume (3M): 103.99K
• Price to Earnings (P/E): 13.0
• Beta (1Y): 0.17
• Revenue Growth: -6.44%
• EPS Growth: 75.18%
• Country: UK
• Employees: 7
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Diversified
• EPS (TTM): -0.01
• Shares Outstanding: 174,848,190
• 10 Day Avg. Volume: 161,743
• 30 Day Avg. Volume: 103,986
• PEG Ratio: -0.25
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 11.86
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 59 Neutral
• Price Target: ―

The overall stock score is driven by positive corporate events and strong technical indicators, suggesting near-term optimism and strategic progress. However, financial performance and valuation concerns, particularly negative profitability and a high P/E ratio, weigh on the score. Investors should consider these mixed signals when evaluating the stock.

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 primarily through rental income from its portfolio of residential and commercial properties. The company also profits from property sales, leveraging appreciation in real estate values to achieve capital gains. Additionally, RLE offers investment advisory services for a fee, assisting clients in identifying lucrative real estate opportunities. These services may include portfolio management and market analysis. Strategic partnerships with financial institutions and real estate developers further enhance RLE's ability to secure favorable financing terms and access exclusive investment opportunities, contributing to its financial growth.

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: Neutral
• Last Price: 31.50
• 50DMA: Negative
• 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 Neutral. The current price of 31.5 is below the 20-day moving average (MA) of 32.29, below the 50-day MA of 31.57, and above the 200-day MA of 30.58, indicating a neutral trend. The MACD of -0.13 indicates Positive momentum. The RSI at 40.29 is Neutral, neither overbought nor oversold. The STOCH value of 31.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	£59.57M	11.65	7.77%	8.38%	4.10%	88.43%
AEWU	68 Neutral	£167.30M	18.49	5.56%	7.58%	―	―
Sector *	66 Neutral	£997.73M	12.13	-0.02%	4.98%	10.34%	31.28%
RLE	59 Neutral	£55.08M	12.96	-2.55%	5.08%	-6.44%	75.18%
PCA	58 Neutral	£65.00M	49.56	1.67%	4.97%	-49.23%	49.40%
TOWN	46 Neutral	£55.56M	―	-0.26%	1.41%	-0.20%	98.04%

Real Estate ate ate Investors Corporate Events

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.

Real Estate Investors Plc Publishes 2024 Annual Report and Announces AGM

Real Estate Investors Plc has published its 2024 Annual Report and announced its 2025 Annual General Meeting, which will be held on 22 May 2025. The company is undergoing a strategic sale of its portfolio to enhance shareholder returns, with a focus on repaying debt and maintaining quarterly dividends.

Real Estate Investors CEO Increases Stake Amid Strategic Asset Sales

Real Estate Investors Plc announced that its CEO, Paul Bassi, has purchased 314,346 ordinary shares, increasing his stake to 10.29% of the company’s issued share capital. This move signals confidence in the company’s strategic direction as it continues its planned asset sales and debt repayment while maintaining dividend payments.

Real Estate Investors Plc Issues New Shares Following Executive Awards

Real Estate Investors Plc has announced the issuance and allotment of 466,244 new Ordinary Shares following the vesting of share awards to key executives and employees. This move, which includes the exercise of rights by CEO Paul Bassi and Finance Director Marcus Daly, will increase the company’s issued share capital and adjust the voting rights, potentially impacting shareholder interests and market positioning.

Real Estate Investors Plc Announces Vesting of LTIP Awards to Directors

Real Estate Investors Plc announced the vesting of share awards to its directors under the Long Term Incentive Plan, with Paul Bassi and Marcus Daly receiving 185,654 and 116,034 ordinary shares, respectively. These awards, subject to performance conditions, have been reduced by two-thirds as per the Shorter Term Incentive Plan. The vesting reflects the company’s ongoing commitment to aligning executive compensation with performance, potentially impacting its operational focus and stakeholder interests.