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Regional REIT (RGL)

Business description

Regional REIT owns a commercial property portfolio, predominantly offices and industrial units located in the regional centres of the UK. It is actively managed and targets a total shareholder return of 10-15% pa with a strong focus on income.

Investment summary

With FY17 results in March, Regional REIT (RGL) reiterated its commitment to a progressive dividend, and has now declared a Q118 DPS of 1.85p (Q117: 1.80p). Management reports a good pace of lettings year to date, which it says reinforces its confidence in the prospects for increasing occupancy and income. We make no change to our estimates for a continued good level of total return, substantially income based. The yield remains the highest in the sector, with a highly diversified portfolio mitigating economic and sector-specific risks.

Last updated on 21/05/2018

Y/E Dec Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 38.1 29.9 20.8 7.8 12.2 N/A
2017A 45.8 36.4 21.1 8.6 11.0 N/A
2018E 56.4 44.0 31.5 8.4 11.3 N/A
2019E 58.2 45.4 34.3 9.2 10.3 N/A

Last updated on 23/04/2018

Latest video

Executive interview - Regional REIT

Industry outlook

Regional occupier demand is generally firm, driven by continuing economic growth and business relocation away from London, while new supply remains limited. Meanwhile, the yield spread between the regions and London remains historically wide, representing a clear potential for narrowing.

Last updated on 27/04/2018

Key management

Kevin McGrath, Chairman
Adam Dickinson, Head of IR
Tim Bee, Non Executive Director
William D. Eason, Non Executive Director
Stephen Inglis, Non Executive Director
Daniel Taylor, Non Executive Director

Company address

Toscafund Asset Management LLP 7th Floor
90 Long Acre
London
WC2E9RA
United Kingdom
+44 (0) 207 845 6100
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