2025-06-17-花旗集团-区域集团（RGN）_区域集团（RGN.AX）_物业估值上涨2.3_导致股价较修订后的每股净资产折让约2_11页_242kb

Company: Region Group (RGN.AX) analysis by Citigroup.

Valuation: Property valuation increased by 2.3% to $4,374.1 million as of 30 June 2025, due to a compression of weighted average cap rates to 5.97%. Net Tangible Asset (NTA) rose to $2.45, resulting in a c2% share price discount to NTA compared to the target price.

Key financials: Target price $2.40, expected total return 5.4%, dividend yield 5.8%, and pro forma gearing of 32.8%, within the range of 30-40%.

Citi's recommendation: Buy, based on a blended valuation using NAV and DCF. Distribution payable aligns with consensus expectations.

Risks: Exposure to rising interest rates, tenant performance, supply-demand dynamics, debt-related financial risks, and valuation risks from market cap rate changes.

Additional context: No material catalysts expected in the short term; strategy focuses on operational and development outlook.