Rising interest costs to keep distributions flat over next decade for Region Re - Brokerage

Region Re

07/02/2023 20:22

** Analysts at Morningstar say that Region Re's  RGN.AX  results for the
first half of fiscal 2023 was in line with its expectations; keeps fair value
estimate unchanged at A$2.55 per security
    ** Shares of the Australian REIT fell as much as 3.6% on Tuesday after the
company swung to first-half loss; flagged higher interest rates to hurt earnings
    ** Morningstar estimates that rising interest costs will keep distributions
flat over the next decade; adds if necessary could curb down acquisitions and
developments if interest rates rise further than brokerage expects
    ** Feels it is wise to maintain conservative gearing given inflation risks
    ** Three of 11 analysts rate the stock "buy" or higher, six "hold" and two
"sell"; their median PT is A$2.78 – Refinitiv data
    ** Stock has fallen 1.5% this year, as of last close
 (Reporting by Rishav Chatterjee in Bengaluru)
 ((Rishav.Chatterjee@thomsonreuters.com;))