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Regional REIT Limited (GB:RGL)
LSE:RGL
UK Market
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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 54 (OpenAI - 5.2)
Rating:54Neutral
Price Target:
101.00 p
▲(4.66% Upside)
Action:Reiterated
Date:08/07/26
The score is held back primarily by weak financial performance (declining revenue and multi-year net losses, plus weakening free cash flow), partially offset by improved balance-sheet leverage and positive operating cash flow. Technicals are moderately supportive with price above key moving averages and positive MACD, and valuation is mixed due to a negative P/E despite a high dividend yield.
Positive Factors
Stable rental-income business model
Regional REIT’s core cash-generation comes from contracted lease payments and recurring service-charge recoveries, creating predictable recurring cash inflows. That structural income base supports distributions and debt service over the medium term, assuming occupancy and lease renewals remain steady.
Negative Factors
Declining revenue trend
Multi-year top-line declines signal weakening demand or rental reversion in regional commercial markets, shrinking the recurring income base. Falling revenue constrains the REIT’s ability to absorb cost inflation, invest in repositioning assets, and sustain distributions without relying on asset disposals or external capital.
Read all positive and negative factors
Positive Factors
Negative Factors
Stable rental-income business model
Regional REIT’s core cash-generation comes from contracted lease payments and recurring service-charge recoveries, creating predictable recurring cash inflows. That structural income base supports distributions and debt service over the medium term, assuming occupancy and lease renewals remain steady.
Read all positive factors

Regional REIT (RGL) vs. iShares MSCI United Kingdom ETF (EWC)

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 ESR Europe LSPIM Limited, the Investment Adviser, an...
How the Company Makes Money
Regional REIT primarily makes money by generating rental income from tenants occupying its commercial property portfolio. Revenue is driven by contracted lease payments (typically paid quarterly in the UK), with performance influenced by occupancy...

Regional REIT Earnings Call Summary

Earnings Call Date:Sep 09, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Mar 23, 2027
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.
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.
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.
Read all updates
Q2-2025 Updates
Negative
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.
Read all positive updates
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
Mixed fundamentals: revenues declined over 2023–2025 and net income has been negative for four straight years, though losses narrowed in 2024 and 2025. Positives include meaningfully lower debt in 2025 and consistently positive operating cash flow, but operating cash flow has trended down and free cash flow fell to roughly breakeven in 2025.
Income Statement
34
Negative
Balance Sheet
48
Neutral
Cash Flow
52
Neutral
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue72.98M78.63M90.98M91.88M93.32M79.90M
Gross Profit31.58M34.10M40.70M47.15M54.22M55.82M
EBITDA-253.00K-4.14M34.83M35.91M73.98M45.45M
Net Income-11.33M-16.35M-39.54M-67.46M-65.16M28.76M
Balance Sheet
Total Assets601.72M636.58M722.13M782.42M906.05M1.01B
Cash, Cash Equivalents and Short-Term Investments40.78M37.73M55.87M34.51M50.15M56.13M
Total Debt11.39M273.73M323.77M426.99M446.52M449.87M
Total Liabilities292.57M317.29M370.52M476.33M503.11M508.29M
Stockholders Equity309.15M319.29M351.61M306.09M402.94M502.40M
Cash Flow
Free Cash Flow23.41M12.98M19.91M21.26M33.26M43.84M
Operating Cash Flow23.41M12.98M19.91M21.26M33.26M43.84M
Investing Cash Flow53.50M35.39M21.44M14.80M-5.08M-98.24M
Financing Cash Flow-83.24M-67.36M-19.14M-51.70M-34.15M43.15M

Regional REIT Technical Analysis

Technical Analysis Sentiment
Positive
Last Price96.50
Price Trends
50DMA
96.05
Negative
100DMA
92.45
Positive
200DMA
94.57
Positive
Market Momentum
MACD
-0.52
Positive
RSI
49.26
Neutral
STOCH
27.04
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:RGL, the sentiment is Positive. The current price of 96.5 is above the 20-day moving average (MA) of 95.12, above the 50-day MA of 96.05, and above the 200-day MA of 94.57, indicating a neutral trend. The MACD of -0.52 indicates Positive momentum. The RSI at 49.26 is Neutral, neither overbought nor oversold. The STOCH value of 27.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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
72
Outperform
£342.92M11.116.98%8.50%44.75%13.02%
65
Neutral
$2.17B12.193.79%4.94%3.15%1.96%
62
Neutral
£50.18M11.883.61%7.59%-4.65%-36.18%
60
Neutral
£370.26M14.664.93%4.85%-5.46%-27.41%
55
Neutral
£52.61M-10.43-4.75%3.85%4.77%-1540.79%
54
Neutral
£153.01M-9.42-4.99%10.00%-15.80%44.17%
54
Neutral
£29.87M-7.19-11.17%8.02%-41.22%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
GB:RGL
Regional REIT
95.00
-16.35
-14.68%
GB:NRR
NewRiver REIT
78.80
15.18
23.85%
GB:PCA
Palace Capital
187.00
-18.06
-8.81%
GB:PNS
Panther Securities
290.00
20.76
7.71%
GB:TOWN
Town Centre Securities
130.00
8.03
6.58%
GB:PCTN
Picton Property Income
73.00
2.66
3.78%

Regional REIT Corporate Events

Business Operations and StrategyFinancial Disclosures
Regional REIT Secures £1.1m Long-Term Lease for Nottingham Offices
Positive
Jun 18, 2026
Regional REIT has secured a 20-year lease with a specialist electronics manufacturer for two previously vacant office buildings, One and Two Newstead Court, in Nottingham, covering 146,262 sq. ft. The deal provides headline annual rent of about &#...
Business Operations and StrategyShareholder Meetings
Regional REIT Wins Strong Shareholder Backing at Annual Meeting
Positive
May 19, 2026
Regional REIT Limited, a specialist in regional UK commercial property, concentrates on income-generating office assets outside the M25 and operates a diversified portfolio spanning 110 properties and hundreds of tenants, valued at roughly £5...
Business Operations and StrategyDividendsFinancial Disclosures
Regional REIT trims portfolio and debt while securing higher rents in Q1
Neutral
May 19, 2026
Regional REIT reported a modestly smaller portfolio value of about £543m at the end of Q1 2026, after executing £12.6m of property disposals largely from high-vacancy assets where refurbishment returns were unattractive. The company said...
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: Aug 07, 2026