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Regional REIT (GB:RGL)
:RGL
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Regional REIT
(LSE:RGL)
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Rating:50Neutral
Price Target:
116.00p
▲(2.47% 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)
Market Cap
£177.32M
Dividend Yield8.59%
Average Volume (3M)230.17K
Price to Earnings (P/E)―
Beta (1Y)0.87
Revenue Growth-5.48%
EPS Growth89.60%
CountryUK
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Office
Share Statistics
EPS (TTM)0.05
Shares Outstanding162,088,490
10 Day Avg. Volume212,019
30 Day Avg. Volume230,168
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.39
Price to Sales (P/S)1.50
P/FCF Ratio6.84
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
£140.00Price Target Upside23.67% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Regional REIT Business Overview & Revenue Model
Company DescriptionRegional REIT (RGL) is a UK-based real estate investment trust (REIT) that focuses on acquiring and managing a diverse portfolio of commercial properties, primarily in the regional markets outside of London. The company targets sectors such as office, industrial, and retail properties, aiming to generate sustainable income and capital appreciation for its shareholders. RGL's core services include property management and leasing, which are essential for maintaining occupancy rates and optimizing rental income across its property portfolio.
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
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.30
Negative
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.55
Neutral
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.45
Neutral
| 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
Negative
113.20
Price Trends
117.28
Negative
118.59
Negative
113.45
Negative
Market Momentum
-1.90
Positive
32.77
Neutral
25.36
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 below the 20-day moving average (MA) of 113.91, below the 50-day MA of 117.28, and below the 200-day MA of 113.45, indicating a bearish trend. The MACD of -1.90 indicates Positive momentum. The RSI at 32.77 is Neutral, neither overbought nor oversold. The STOCH value of 25.36 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | £373.26M | 9.34 | 9.14% | 7.50% | 3.79% | ― | |
| ― | £172.05M | 7.10 | ― | 7.37% | ― | ― | |
| ― | £266.57M | ― | ― | 6.15% | ― | ― | |
| ― | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
| ― | £305.07M | 11.35 | 5.57% | 9.09% | 36.09% | 556.25% | |
| ― | $418.36M | 11.78 | 7.04% | 4.73% | -1.23% | ― | |
| ― | £177.32M | -8.74 | -6.74% | 8.59% | -5.48% | 89.60% |
* Real Estate Sector Average
GB:RGL
Regional REIT
109.40
-12.34
-10.14%
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GB:NRR
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GB:SREI
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14.59%
GB:PCTN
Picton Property Income
79.20
12.18
18.17%
Regional REIT Corporate Events
Financial Disclosures
Regional REIT to Present HY25 Results via Investor Meet Company
Neutral
Sep 24, 2025
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.
The most recent analyst rating on (GB:RGL) stock is a Hold with a £118.00 price target. To see the full list of analyst forecasts on Regional REIT stock, see the GB:RGL Stock Forecast page.
Business Operations and StrategyM&A Transactions
Regional REIT Sells Clearblue Centre at Premium Price
Positive
Sep 18, 2025
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.
The most recent analyst rating on (GB:RGL) stock is a Hold with a £126.00 price target. To see the full list of analyst forecasts on Regional REIT stock, see the GB:RGL Stock Forecast page.
Business Operations and 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.
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.