OTCPK:RGGL.F

Stock Analysis Report

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Executive Summary

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.


Snowflake Analysis

Undervalued second-rate dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RGGL.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

RGGL.F

6.6%

US REITs

3.8%

US Market


1 Year Return

n/a

RGGL.F

-5.9%

US REITs

9.7%

US Market

Return vs Industry: Insufficient data to determine how RGGL.F performed against the US REITs industry.

Return vs Market: Insufficient data to determine how RGGL.F performed against the US Market.


Shareholder returns

RGGL.FIndustryMarket
7 Day0%6.6%3.8%
30 Day0%13.4%11.4%
90 Dayn/a-8.2%6.8%
1 Yearn/a-2.0%-5.9%12.1%9.7%
3 Yearn/a18.5%3.9%36.2%27.2%
5 Yearn/a50.1%19.4%63.7%45.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

19.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RGGL.F ($0.65) is trading below our estimate of fair value ($0.81)

Significantly Below Fair Value: RGGL.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RGGL.F is good value based on its PE Ratio (12x) compared to the REITs industry average (29.6x).

PE vs Market: RGGL.F is good value based on its PE Ratio (12x) compared to the US market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: RGGL.F is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: RGGL.F is good value based on its PB Ratio (0.7x) compared to the US REITs industry average (1.5x).


Next Steps

Future Growth

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

20.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RGGL.F's forecast earnings growth (20.5% per year) is above the savings rate (2.2%).

Earnings vs Market: RGGL.F's earnings (20.5% per year) are forecast to grow slower than the US market (22.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: RGGL.F's revenue (4.9% per year) is forecast to grow slower than the US market (8.8% per year).

High Growth Revenue: RGGL.F's revenue (4.9% 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 RGGL.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Regional REIT performed over the past 5 years?

3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RGGL.F has high quality earnings.

Growing Profit Margin: RGGL.F's current net profit margins (35%) are lower than last year (91%).


Past Earnings Growth Analysis

Earnings Trend: RGGL.F's earnings have grown by 3.4% per year over the past 5 years.

Accelerating Growth: RGGL.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: RGGL.F had negative earnings growth (-60.7%) over the past year, making it difficult to compare to the REITs industry average (5.2%).


Return on Equity

High ROE: RGGL.F's Return on Equity (5.5%) is considered low.


Next Steps

Financial Health

How is Regional REIT's financial position?


Financial Position Analysis

Short Term Liabilities: RGGL.F's short term assets (£69.4M) exceed its short term liabilities (£36.2M).

Long Term Liabilities: RGGL.F's short term assets (£69.4M) do not cover its long term liabilities (£355.5M).


Debt to Equity History and Analysis

Debt Level: RGGL.F's debt to equity ratio (70.1%) is considered high.

Reducing Debt: RGGL.F's debt to equity ratio has increased from 47.8% to 70.1% over the past 5 years.

Debt Coverage: RGGL.F's debt is not well covered by operating cash flow (3.7%).

Interest Coverage: RGGL.F's interest payments on its debt are well covered by EBIT (3.2x coverage).


Balance Sheet


Next Steps

Dividend

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

10.35%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RGGL.F's dividend (10.35%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: RGGL.F's dividend (10.35%) is in the top 25% of dividend payers in the US market (4.32%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, RGGL.F has been paying a dividend for less than 10 years.

Growing Dividend: RGGL.F's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (261.6%), RGGL.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RGGL.F's dividends in 3 years are forecast to be covered by earnings (91.5% payout ratio).


Next Steps

  • Explore strong dividend paying companies in the Real Estate industry.

Management

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

1.1yrs

Average management tenure


CEO

Stephen Inglis (50yo)

1.08yrs

Tenure

Mr. Stephen John Inglis has been a Director of Regional REIT Limited since October 16, 2015. Mr. Inglis has been the Chief Executive Officer at London & Scottish Property Investment Limited since May 2019. ...


Leadership Team

NamePositionTenureCompensationOwnership
Stephen Inglis
Director and CEO of London & Scottish Property Investment Limited1.08yrsno data0.25% £1.1m
Martin Hughes
Founder & CEO of Toscafund Asset Management LLP20.42yrsno datano data
Simon Marriott
Investment Director0.67yrno datano data
Derek McDonald
Managing Director of London & Scottish Investments Limitedno datano datano data
Andrew MacGilp
Director of Commercial Property - London & Scottish Investments Limitedno datano datano data
Adam Dickinson
Head of Investor Relationsno datano datano data

1.1yrs

Average Tenure

55yo

Average Age

Experienced Management: RGGL.F's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stephen Inglis
Director and CEO of London & Scottish Property Investment Limited1.08yrsno data0.25% £1.1m
Kevin McGrath
Independent Chairman of the Board4.67yrsUK£72.63k0.077% £335.2k
William Eason
Senior Independent Non-executive Director3.5yrsUK£51.88k0.052% £225.7k
Frances Margaret Daley
Independent Non-Executive Director2.33yrsUK£51.88k0.018% £77.2k
Timothy Bee
Non-Executive Director2.92yrsno data0.054% £232.7k
Daniel J. Taylor
Independent Non-Executive Director4.67yrsUK£51.88k0.16% £712.1k

4.1yrs

Average Tenure

58.5yo

Average Age

Experienced Board: RGGL.F's board of directors are considered experienced (4.1 years average tenure).


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 15.7%.


Top Shareholders

Company Information

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


Key Information

  • Name: Regional REIT Limited
  • Ticker: RGGL.F
  • Exchange: OTCPK
  • Founded: 2015
  • Industry: Office REITs
  • Sector: Real Estate
  • Market Cap: UK£343.911m
  • Listing Market Cap: UK£432.804m
  • Shares outstanding: 431.51m
  • Website: https://www.regionalreit.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RGLLSE (London Stock Exchange)YesOrdinary SharesGBGBPNov 2015
RGLLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPNov 2015
RGGL.FOTCPK (Pink Sheets LLC)YesOrdinary SharesUSUSDNov 2015

Biography

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. The portfolio is highly diversified, with 160 properties, 1,251 units and 904 tenants as at 31 December 2019, with a valuation of £787.9m. Regional REIT pursues its investment objective by investing in, actively managing and disposing of regional core and core plus property assets. It aims to deliver an attractive total return to its Shareholders, targeting greater than 10% per annum, with a strong focus on income supported by additional capital growth prospects. The purpose of the Company is to deliver long-term returns for Shareholders with income generated from investment in UK commercial property outside of the M25 motorway. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/05 06:16
End of Day Share Price2020/03/19 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.