Regional REIT 4.5% 06/08/2024

Please find some complementary research on the Regional REIT 4.5% 06/08/2024 bond.

Regional REIT Limited (“RGL”) is an investment trust listed on the LSE with a NAV of £393m that invests and manages high quality commercial properties predominantly in principal UK regions, outside of London.

We believe this bond offers a safe and simple investment. The interest is covered 3.8 times by the company’s earnings, pretty safe-looking from a bond holder’s perspective.

This makes a timely replacement for holders of the CLS 5.5% 31/12/19, which is being redeemed early on 31st July at a price of around 105%. Holders could therefore buy this new bond at a 105/100 ratio (a holding of 30,000 CLS 5.5% could be replaced with a subscription of 31,500 Regional REIT 4.5%).

The offer period closes on the 1st of August so please submit any order before then. With a coupon of 4.5%, we believe the bond represents good value and may well trade at a modest premium in the secondary market.