Business
Edison issues initiation on Regional REIT
Edison issues initiation on Regional REIT.
About this update from Regional Reit Ltd.
[{"type":"text","content":"\n \nRNS Number : 6828F Regional REIT Limited 29 July 2016 \n\n \nLondon, UK, 29 July 2016\nEdison issues initiation on Regional REIT (RGL)\nRegional REIT (RGL) provides a focused exposure to UK regional commercial real estate, predominantly secondary assets. The regional property recovery began later than in London and we believe RGL offers the potential for above average late-cycle income and capital growth. It has an established and diversified high-yielding portfolio that already supports the attractive 8.1% prospective yield. RGL's focus on underexploited properties provides additional internally driven potential from asset management initiatives, with potential for accretive asset growth. Brexit has raised uncertainty about the pace of UK economic growth, investor appetite and future occupier demand, but particularly for City of London offices, while sterling's devaluation may provide a boost to regionally focused industry. Meanwhile, interest rates show no sign of increasing.\n \nRGL's prospective dividend yield of 8.1% is the highest among UK REIT sector constituents and it is also fully covered. As we show in the financial section on page 11, we believe there is scope for accretive acquisition activity to further increase DPS above our forecasts. The shares are at a c 13% discount to our 2016e EPRA NAV, which assumes no valuation yield tightening.\nClick here to view the full report \n \nAll reports published by Edison are available to download free of charge from its website: www.edisoninvestmentresearch.com\n \nAbout Edison: Edison is an international equity research firm with a team of over 110 analysts, investment and roadshow professionals and works with both large and smaller capitalised companies, blue chip institutional investors, wealth managers, private equity and corporate finance houses to support their capital markets activity. Edison provides services to more than 420 retained corporate and investor clients from offices in London, New York, Frankfurt, Sydney and Wellington. Edison is authorised and regulated by the Financial Conduct Authority.\nEdison is not an adviser or broker-dealer and does not provide investment advice. Edison's reports are not solicitations to buy or sell any securities.\nContact details: Learn more at www.edisongroup.com and connect with Edison on...