Edison Investment Research - Regional REIT Ltd. (RGL) Regional REIT - Acquisitions are accretive and portfolio enhancing

Report

Edison Investment Research

Martyn King

Regional REIT - Acquisitions are accretive and portfolio enhancing

Regional REIT (RGL) has announced the acquisition of three high-quality, recently refurbished office assets, with good environmental credentials, for an aggregate £26.5m, reflecting an accretive net initial yield of 8.0%. Across its portfolio, as the ‘return to the office’ builds, RGL expects a positive demand-supply balance for attractive regional offices to generate further value creation, despite economic and political challenges. This is based on the expectation of rental growth and increased occupancy driving valuation gains. Recent market weakness leaves the shares on a highly attractive FY21 yield of 8.6% and 23% discount to NAV.

23/06/2022 1 EN

Underlying

Regional REIT Ltd.

Regional REIT is a real estate investment trust company. Co. is engaged in the investment, management and disposition of regional property assets. Co.'s commercial property portfolio is in the U.K. comprises of offices and industrial units located in the regional centers of the U.K. outside of the M25 motorway. As of Dec 31, 2016, the portfolio is diversified with 123 properties, 941 units and 717 tenants.

See profile

GG00BYV2ZQ34 London Stock Exchange Guernsey

Provider

Edison Investment Research

Edison is an investment research and advisory company, with offices in North America, Europe, the Middle East and AsiaPac. The heart of Edison is our world renowned equity research platform and deep multi-sector expertise. At Edison Investment Research, our research is widely read by international investors, advisors and stakeholders. Edison Advisors leverages our core research platform to provide differentiated services including investor relations and strategic consulting.

See profile

Analysts

Martyn King

Other Reports on these Companies

Edison Investment Research

Regional REIT - Performing as expected ahead of refinancing

In a challenging market, Regional REIT’s (RGL’s) FY23 operational and financial performance was robust, in line with expectations and previous guidance. Investor focus remains on the company’s loan to value (LTV) reduction and bond refinancing plans, explored in detail in our previous note and RGL will provide an update on this in due course.

April 9, 2024 April 9, 2024 1 EN

Edison Investment Research

Regional REIT - Lancing the boil?

Regional REIT (RGL) has declared an unchanged Q423 DPS of 1.2p per share and is making good progress with asset sales. However, with H223 property valuations following the market lower, and a subsequent further increase in the loan to value ratio (LTV), investors are focused on RGL’s refinancing plans, particularly the near maturity of its unsecured bonds. The company is considering a range of options, explored in this note, which likely include an equity raise. By removing uncertainty, an equity raise has the potential to materially improve the share rating.

March 1, 2024 March 1, 2024 1 EN

Edison Investment Research

Regional REIT - Underlying progress but leasing remains subdued

Regional REIT’s (RGL’s) Q323 trading update includes details of further leasing events, at rents ahead of market levels, and continuing asset sales, at or above book value. However, with the balance of occupiers remaining cautious, as economic prospects are assessed, rent roll and occupancy weakened. Supported by the strong ‘return to the office’, RGL continues to expect an acceleration in leasing, to provide the underpinning for its efforts to reduce gearing while maintaining income and dividends.

November 13, 2023 November 13, 2023 1 EN

ProCredit Holding - A solid start to 2024

ProCredit Holding (PCB) has delivered another strong set of results, posting Q124 net income of €33.5m (up 14% y-o-y), which translates into an annualised ROE of 13.4%. Earnings were supported by a sustained solid net interest margin (NIM; at 3.7% annualised vs 3.4% in Q123) and low cost of risk (2bp). Meanwhile, PCB reported a higher cost-income ratio (CIR, 61.7% in Q124 vs 59.7% in Q123) as it ramps up its new strategic agenda. In line with PCB’s dividend policy, the management board will propose at the AGM (on 4 June 2024) the payout of one-third of PCB’s FY23 profits, translating into a di...

57m 57m 1 EN

Kate Heseltine

Kate Heseltine

Britvic - Buoyant volumes in H124

Britvic’s interim results showcased a positive first half of FY24, with strong revenue growth across core brands and geographies. This was underpinned by a robust increase in volumes, reflecting product innovation and growth across its strategic pillars. Positive price/mix helped enable a 70bp improvement in margins. The enhanced profitability permitted a 16% increase in the interim dividend. Britvic continues to make strategic progress against the growth pillars of family favourite brands, Brazil and new growth areas. Management remains confident in the outlook, particularly with several key ...

1h / 47m 1h / 47m 1 EN

Kate Heseltine

Kate Heseltine

Topps Tiles - Looking to the future

Topps Tiles’ (TPT’s) H124 results demonstrate the effects of the general market softness of spend on repairs, maintenance and improvement, as evidenced by other companies and external data. Of more importance is TPT’s updated strategy, which includes targeting new markets and further/better leverage of existing brands, and ‘medium-term’ financial goals, the most notable being an indicated more than quadrupling of adjusted PBT from our FY24 estimates. Management points to more encouraging forward indicators for customer spend (including mortgage approvals and consumer confidence), albeit curren...

3h / 32m 3h / 32m 1 EN

Sign-up for free to access full reports immediately

Email Address*

Choose Password* ( 6 or more characters )

Due to regulatory restrictions regarding the distribution of financial research, this report is restricted to a specific region or investor type. Get access to exclusive reports by answering the questions below.

Select your country*

Get financial insights straight to your inbox

By clicking "register" you accept the Terms and Conditions & Privacy Policy

Already on ResearchPool?

Almost there...

Are you a professional investor?

Select your country

REGISTER

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

In order to access this report please create an account.

LOGIN

Regional REIT - Acquisitions are accretive and portfolio enhancing

Regional REIT - Performing as expected ahead of refinancing

Regional REIT - Lancing the boil?

Regional REIT - Underlying progress but leasing remains subdued

ProCredit Holding - A solid start to 2024

Britvic - Buoyant volumes in H124

Topps Tiles - Looking to the future

Create a free ResearchPool account to access full reports, get a personalised dashboard and follow providers or companies

Sign-up for free to access full reports immediately

ResearchPool Subscriptions

Get the most out of your insights

Why subscribe?

How to subscribe

ResearchPool Subscriptions

This report is only available to subscribers

Why subscribe?

How to subscribe