Equity Analysis /
United Kingdom

GB : Real Estate Investors - Cash backed returns at a discount

    Chris Spearing
    Chris Spearing

    Analyst - Real Estate

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    Hugh Carrow
    Tom Musson
    CGS-CIMB
    30 March 2022
    Published byCGS-CIMB

    RLE’s FY results were in line, with the business delivering a respectable 13% accounting return in the period. We think it will hit a revenue and PBT trough in 2022, with income growing thereafter. Capital values also have headroom to recover, particularly where voids can be filled. There remain structural tailwinds for the West Midlands region. As voids are indeed filled, we think the market will gain confidence in RLE’s ability to increase dividends and begin to re-price the attractive c.8% DPS yield.