Regional Reit Company Research (RGL)

Regional REIT (RGL) has published 2025 results. With much of the key data having been contained in the February trading update, this placed the spotlight on the continuing progress with the company’s strategic portfolio repositioning and the expected benefits. The external leasing environment remains challenging, with global geopolitical and macroeconomic developments creating a new level of uncertainty. While this is outside RGL’s control, the profitable disposal of underperforming assets, reinvestment to enhance retained assets, debt refinancing and the amended management fee arrangements are all self-help measures that will support RGL’s performance. The 2025 results were in line with consensus and there is no change to our 2026 and 2027 forecasts, recently reduced to reflect the impact of three large, unexpected lease breaks in H225.