Region Group

This report is an updated version of the report published on 14 January 2025 at 3:16 PM AEDT.

Company Overview: Region Group (ASX: RGN) comprises two internally managed real estate investment trusts that own a portfolio of convenience-focused retail properties across Australia. The company primarily invests in retail assets anchored by non-discretionary retailers, featuring long-term leases with tenants such as Woolworths Limited, Coles Limited, and various companies within the Wesfarmers Limited group. Kalkine’s Real Estate Report covers the Investment Highlights, Management Insights, Key Financial Metrics, Risks, Technical Analysis along with the Valuation, Target Price, and Recommendation on the stock.  

The top 10 shareholders together form ~35.80% of the total shareholding. The Vanguard Group, Inc. held the maximum number of shares with a percentage holding of 8.01%, followed by Vanguard Investments Australia Ltd. holding 5.55%, as also highlighted in the chart below:

The company’s return on equity stood at 0.6% in FY24, as compared to a negative 4.1% reported in the year-ago period. The graph below depicts the occupancy rate and current ratio trend:

2.1: Recent Business Updates: 

2.3: Historical Financial Highlights

The stock price went down by ~7.83% in the last three months, and over the last nine months, stock prices went down by ~2.75%. The stock has a 52-week low and 52-week high of AUD 2.050 and AUD 2.400, respectively, and is currently trading below its mid-range of the 52-week-high-low levels.

Markets are trading in a highly volatile zone currently due to certain macro-economic issues and geopolitical tensions prevailing. Therefore, it is prudent to follow a cautious approach while investing. 

Note 1: Past performance is neither an indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is 14 January 2025. The reference data in this report has been partly sourced from REFINITIV.

Note 3: Investment decisions should be made depending on an individual's appetite for upside potential, risks, holding duration, and any previous holdings. An 'Exit' from the stock can be considered if the Target Price mentioned as per the Valuation and or the technical levels provided has been achieved and is subject to the factors discussed above.

Note 4: Dividend Yield may vary as per the stock price movement.

Note 5: Kalkine reports are prepared based on the stock prices captured either from REFINITIV or Trading View. Typically, REFINITIV or Trading View may reflect stock prices with a delay which could be a lag of 25-30 minutes. There can be no assurance that future results or events will be consistent with the information provided in the report. The information is subject to change without any prior notice.

Technical Indicators Defined: - 

Support: A level at which the stock prices tend to find support if they are falling, and a downtrend may take a pause backed by demand or buying interest. Support 1 refers to the nearby support level for the stock and if the price breaches the level, then Support 2 may act as the crucial support level for the stock.

Resistance: A level at which the stock prices tend to find resistance when they are rising, and an uptrend may take a pause due to profit booking or selling interest. Resistance 1 refers to the nearby resistance level for the stock and if the price surpasses the level, then Resistance 2 may act as the crucial resistance level for the stock.

Stop-loss: It is a level to protect further losses in case of unfavourable movement in the stock prices.