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RGL

Regional REIT LSE:RGL Stock Report

Last Price

UK£0.75

Market Cap

UK£386.3m

7D

-2.6%

1Y

-14.4%

Updated

26 Jun, 2022

Data

Company Financials +
RGL fundamental analysis
Snowflake Score
Valuation5/6
Future Growth3/6
Past Performance1/6
Financial Health2/6
Dividends4/6

RGL Stock Overview

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.

Regional REIT Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for Regional REIT
Historical stock prices
Current Share PriceUK£0.75
52 Week HighUK£0.96
52 Week LowUK£0.73
Beta0.89
1 Month Change-11.78%
3 Month Change-14.89%
1 Year Change-14.40%
3 Year Change-30.52%
5 Year Change-28.84%
Change since IPO-27.11%

Recent News & Updates

Shareholder Returns

RGLGB REITsGB Market
7D-2.6%0.01%2.3%
1Y-14.4%-5.7%-8.6%

Return vs Industry: RGL underperformed the UK REITs industry which returned -5.7% over the past year.

Return vs Market: RGL underperformed the UK Market which returned -8.6% over the past year.

Price Volatility

Is RGL's price volatile compared to industry and market?
RGL volatility
RGL Average Weekly Movement2.3%
REITs Industry Average Movement3.3%
Market Average Movement5.5%
10% most volatile stocks in GB Market10.8%
10% least volatile stocks in GB Market2.8%

Stable Share Price: RGL is less volatile than 75% of UK stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: RGL's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2015n/aStephen Inglishttps://www.regionalreit.com

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 London & Scottish Property Investment Management Limited, the Asset Manager, and Toscafund Asset Management LLP, the Investment Manager. Regional REIT's commercial property portfolio is comprised wholly of income producing UK assets and comprises, predominantly, offices and industrial units located in the regional centres outside of the M25 motorway.

Regional REIT Fundamentals Summary

How do Regional REIT's earnings and revenue compare to its market cap?
RGL fundamental statistics
Market CapUK£386.29m
Earnings (TTM)UK£28.76m
Revenue (TTM)UK£79.90m

13.4x

P/E Ratio

4.8x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RGL income statement (TTM)
RevenueUK£79.90m
Cost of RevenueUK£24.08m
Gross ProfitUK£55.82m
Other ExpensesUK£27.07m
EarningsUK£28.76m

Last Reported Earnings

Dec 31, 2021

Next Earnings Date

Sep 15, 2022

Earnings per share (EPS)0.056
Gross Margin69.87%
Net Profit Margin35.99%
Debt/Equity Ratio86.2%

How did RGL perform over the long term?

See historical performance and comparison

Dividends

8.7%

Current Dividend Yield

63%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is RGL undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for RGL?

Other financial metrics that can be useful for relative valuation.

RGL key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue9.8x
Enterprise Value/EBITDAn/a
PEG Ratio0.7x

Price to Earnings Ratio vs Peers

How does RGL's PE Ratio compare to its peers?

RGL PE Ratio vs Peers
The above table shows the PE ratio for RGL vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average14.1x

Price-To-Earnings vs Peers: RGL is good value based on its Price-To-Earnings Ratio (13.4x) compared to the peer average (14.1x).


Price to Earnings Ratio vs Industry

How does RGL's PE Ratio compare vs other companies in the U.K. REITs Industry?

Price-To-Earnings vs Industry: RGL is expensive based on its Price-To-Earnings Ratio (13.4x) compared to the UK REITs industry average (7.7x)


Price to Earnings Ratio vs Fair Ratio

What is RGL's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

RGL PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio13.4x
Fair PE Ratio18.4x

Price-To-Earnings vs Fair Ratio: RGL is good value based on its Price-To-Earnings Ratio (13.4x) compared to the estimated Fair Price-To-Earnings Ratio (18.4x).


Share Price vs Fair Value

What is the Fair Price of RGL when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: RGL (£0.75) is trading below our estimate of fair value (£2.02)

Significantly Below Fair Value: RGL is trading below fair value by more than 20%.


Price to Earnings Growth Ratio

PEG Ratio: RGL is good value based on its PEG Ratio (0.7x)


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Future Growth

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

Future Growth Score

3/6

Future Growth Score 3/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


19.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RGL's forecast earnings growth (19.7% per year) is above the savings rate (0.9%).

Earnings vs Market: RGL's earnings (19.7% per year) are forecast to grow faster than the UK market (10.9% per year).

High Growth Earnings: RGL's earnings are forecast to grow, but not significantly.

Revenue vs Market: RGL's revenue (5.4% per year) is forecast to grow faster than the UK market (4.1% per year).

High Growth Revenue: RGL's revenue (5.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if RGL's Return on Equity is forecast to be high in 3 years time


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Past Performance

How has Regional REIT performed over the past 5 years?

Past Performance Score

1/6

Past Performance Score 1/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-23.5%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: RGL has a large one-off loss of £7.7M impacting its December 31 2021 financial results.

Growing Profit Margin: RGL became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: RGL's earnings have declined by 23.5% per year over the past 5 years.

Accelerating Growth: RGL has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: RGL has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (129.6%).


Return on Equity

High ROE: RGL's Return on Equity (5.7%) is considered low.


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Financial Health

How is Regional REIT's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: RGL's short term assets (£85.5M) exceed its short term liabilities (£58.4M).

Long Term Liabilities: RGL's short term assets (£85.5M) do not cover its long term liabilities (£449.9M).


Debt to Equity History and Analysis

Debt Level: RGL's net debt to equity ratio (75%) is considered high.

Reducing Debt: RGL's debt to equity ratio has increased from 75.4% to 86.2% over the past 5 years.

Debt Coverage: RGL's debt is not well covered by operating cash flow (10.1%).

Interest Coverage: RGL's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


8.68%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: RGL's dividend (8.68%) is higher than the bottom 25% of dividend payers in the UK market (1.88%).

High Dividend: RGL's dividend (8.68%) is in the top 25% of dividend payers in the UK market (5.18%)


Stability and Growth of Payments

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

Growing Dividend: RGL's dividend payments have increased, but the company has only paid a dividend for 6 years.


Earnings Payout to Shareholders

Earnings Coverage: With its reasonable payout ratio (63.4%), RGL's dividend payments are covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: At its current cash payout ratio (76.5%), RGL's dividend payments are covered by cash flows.


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Management

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

3.1yrs

Average management tenure


CEO

Stephen Inglis (52 yo)

3.08yrs

Tenure

Mr. Stephen John Inglis has been a Non-Executive Director of Regional REIT Limited since October 16, 2015. Mr. Inglis has been the Chief Executive Officer at London & Scottish Property Investment Managemen...


Leadership Team

Experienced Management: RGL's management team is considered experienced (3.1 years average tenure).


Board Members

Experienced Board: RGL's board of directors are considered experienced (6.7 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: RGL insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 19.5%.


Top Shareholders

Company Information

Regional REIT Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Regional REIT Limited
  • Ticker: RGL
  • Exchange: LSE
  • Founded: 2015
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: UK£386.287m
  • Shares outstanding: 515.74m
  • Website: https://www.regionalreit.com

Number of Employees


Location

  • Regional REIT Limited
  • Mont Crevelt House
  • Bulwer Avenue
  • Saint Sampson
  • GY2 4LH
  • Guernsey

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/26 00:00
End of Day Share Price2022/06/24 00:00
Earnings2021/12/31
Annual Earnings2021/12/31


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.