LSE:RDI

Stock Analysis Report

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Executive Summary

RDI REIT P.L.C. was incorporated in the Isle of Man on 28 June 2004 (Registered Number: 111198C) and was re-registered under the Isle of Man Companies Act 2006 on 3 December 2013 (Registered Number: 010534V).On 4 December 2013, the Company converted to a UK-REIT and transferred its tax residence from the Isle of Man to the United Kingdom ("UK").The Company holds a primary listing on the Main Market of the London Stock Exchange ("LSE") and a secondary listing on the Main Board of the Johannesburg Stock Exchange ("JSE"). More Details


Snowflake Analysis

Moderate growth potential second-rate dividend payer.


Similar Companies

Share Price & News

How has RDI REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: RDI is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: RDI's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

0.3%

RDI

3.0%

GB REITs

-0.8%

GB Market


1 Year Return

-26.6%

RDI

-45.4%

GB REITs

-3.7%

GB Market

Return vs Industry: RDI underperformed the UK REITs industry which returned -12.6% over the past year.

Return vs Market: RDI underperformed the UK Market which returned -2% over the past year.


Shareholder returns

RDIIndustryMarket
7 Day0.3%3.0%-0.8%
30 Day2.4%5.8%0.9%
90 Day-1.9%6.6%6.6%
1 Year-22.5%-26.6%-12.1%-45.4%2.1%-3.7%
3 Year-34.6%-47.4%2.9%2.1%9.6%-3.5%
5 Year-41.4%-59.3%11.2%6.0%41.7%14.3%

Long-Term Price Volatility Vs. Market

How volatile is RDI REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is RDI REIT undervalued compared to its fair value and its price relative to the market?

0.62x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: RDI (£0.91) is trading above our estimate of fair value (£0.66)

Significantly Below Fair Value: RDI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RDI is unprofitable, so we can't compare its PE Ratio to the GB REITs industry average.

PE vs Market: RDI is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate RDI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: RDI is good value based on its PB Ratio (0.6x) compared to the GB REITs industry average (0.8x).


Next Steps

Future Growth

How is RDI REIT forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

96.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1%).

Earnings vs Market: RDI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: RDI's is expected to become profitable in the next 3 years.

Revenue vs Market: RDI's revenue is expected to decline over the next 3 years (-5% per year).

High Growth Revenue: RDI's revenue is forecast to decline over the next 3 years (-5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RDI's Return on Equity is forecast to be low in 3 years time (3.4%).


Next Steps

Past Performance

How has RDI REIT performed over the past 5 years?

-52.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RDI is currently unprofitable.

Growing Profit Margin: RDI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RDI is unprofitable, and losses have increased over the past 5 years at a rate of 52.3% per year.

Accelerating Growth: Unable to compare RDI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RDI is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (-4.2%).


Return on Equity

High ROE: RDI has a negative Return on Equity (-16.54%), as it is currently unprofitable.


Next Steps

Financial Health

How is RDI REIT's financial position?


Financial Position Analysis

Short Term Liabilities: RDI's short term assets (£209.9M) exceed its short term liabilities (£97.0M).

Long Term Liabilities: RDI's short term assets (£209.9M) do not cover its long term liabilities (£603.2M).


Debt to Equity History and Analysis

Debt Level: RDI's debt to equity ratio (102.6%) is considered high.

Reducing Debt: RDI's debt to equity ratio has increased from 86.6% to 102.6% over the past 5 years.

Debt Coverage: RDI's debt is not well covered by operating cash flow (3.9%).

Interest Coverage: RDI is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is RDI REIT current dividend yield, its reliability and sustainability?

5.51%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RDI's dividend (5.51%) is higher than the bottom 25% of dividend payers in the UK market (1.49%).

High Dividend: RDI's dividend (5.51%) is in the top 25% of dividend payers in the UK market (4.52%)


Stability and Growth of Payments

Stable Dividend: RDI has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: RDI has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (116.3%), RDI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RDI's dividends in 3 years are forecast to be covered by earnings (90.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

6.1yrs

Average management tenure


CEO

Stephen Oakenfull (40 yo)

0.17

Tenure

UK£429,040

Compensation

Mr. Stephen James Oakenfull, CFA, BSc (Hons), serves as Chief Executive Officer at RDI REIT P.L.C. since December 18, 2020. Mr. Oakenfull served as Deputy Chief Executive Officer of RDI REIT Plc (formerly,...


CEO Compensation Analysis

Compensation vs Market: Stephen's total compensation ($USD605.05K) is about average for companies of similar size in the UK market ($USD795.37K).

Compensation vs Earnings: Stephen's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Oakenfull
CEO & Director0.17yrUK£429.04k0.054%
£ 190.7k
Donald Grant
CFO & Director5.5yrsUK£359.85k0.022%
£ 78.0k
Adrian Horsburgh
Property Director & Executive Director6.92yrsUK£154.52k0.039%
£ 137.5k
Janine Ackermann
Head of Investor Relationsno datano datano data
Michelle Daniels
Group Head of Marketing6.08yrsno datano data
Helder Pereira
Chief Executive Officer of Redefine BDL Hotel Group Limited7.75yrsno datano data
Lisa Hibberd
Company Secretary11.08yrsno datano data
Mark Sennett
Executive Officer of Corovest International - Property Adviserno datano datano data
Richard Breese
Executive Officer of Corovest International - Property Adviserno datano datano data
Peter Katz
Director of European Portfoliono datano datano data
Johannes Becker
Senior Asset Manager of European Portfolio6.58yrsno datano data
Sarah Jones
Senior Asset Manager of UK Portfolio5.5yrsno datano data

6.1yrs

Average Tenure

51.5yo

Average Age

Experienced Management: RDI's management team is seasoned and experienced (6.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Stephen Oakenfull
CEO & Director0.17yrUK£429.04k0.054%
£ 190.7k
Donald Grant
CFO & Director5.5yrsUK£359.85k0.022%
£ 78.0k
Adrian Horsburgh
Property Director & Executive Director6.92yrsUK£154.52k0.039%
£ 137.5k
Susan Ford
Senior Independent Non-executive Director0.083yrUK£53.20kno data
Gavin Tipper
Independent Chairman2.58yrsUK£100.20kno data
Elizabeth Peace
Independent Non-executive Director3.25yrsUK£53.20kno data
Krysto Nikolic
Alternate Director0.58yrno datano data
Matthew Parrott
Non-Executive Director0.58yrno datano data

1.6yrs

Average Tenure

55yo

Average Age

Experienced Board: RDI's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

RDI REIT P.L.C.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RDI REIT P.L.C.
  • Ticker: RDI
  • Exchange: LSE
  • Founded: 2005
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: UK£350.143m
  • Shares outstanding: 380.59m
  • Website: https://www.rdireit.com

Number of Employees


Location

  • RDI REIT P.L.C.
  • 33 Regent Street
  • London
  • Greater London
  • SW1Y 4NB
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RDILSE (London Stock Exchange)YesOrdinary SharesGBGBPAug 2011
RPLJSE (The Johannesburg Securities Exchange)YesOrdinary SharesZAZARAug 2011
RDIR.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDAug 2011
RDILBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPAug 2011
WIETDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2011

Biography

RDI REIT P.L.C. was incorporated in the Isle of Man on 28 June 2004 (Registered Number: 111198C) and was re-registered under the Isle of Man Companies Act 2006 on 3 December 2013 (Registered Number: 010534...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/02/24 19:46
End of Day Share Price2021/02/24 00:00
Earnings2020/08/31
Annual Earnings2020/08/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.