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Region Group
Real Estate · REIT - Retail
Updated just now
$2.25
MARKET CAP
$2.59B
P/E RATIO
12.4
DIV. YIELD
6.2%
FRANKING
—
Region Group is an internally managed real estate investment trust (REIT) with 87 convenience-based retail properties, valued at $4,374 million. We remain the largest owner of convenience-based retail centres with 7% share of the market, which is dominated by private owners.
View full descriptionThe Warsi Rating combines two proven approaches: value investing principles and dividend strategy. A stock must score 70+ on both to be rated Solid or higher.
$2.28
For 6% dividend yield
Business quality and balance-sheet durability.
Real cash left after running the business
Positive cash generation. Company produces real cash after capital expenditures - can fund dividends, buybacks, or growth.
Current Snapshot
Current FCF
$154M
Pass Rule
> $0
Status
Positive
Why It Matters
Free cash flow is the cash available after core operating and capital needs. It is central to dividend capacity.
Formula
Operating Cash Flow - Capital ExpendituresMethod
Review whether free cash flow is consistently positive and whether it is sufficient relative to dividends and debt needs.
Worked Example
This company generated $154M in free cash flow — cash left after operating costs and capital expenditure. Positive FCF means dividends are funded by real cash generation.
How to Interpret
Sources
Annual dividends as percentage of stock price
Region Group is an internally managed real estate investment trust (REIT) with 87 convenience-based retail properties, valued at $4,374 million. We remain the largest owner of convenience-based retail centres with 7% share of the market, which is dominated by private owners. This asset class has proven to be resilient due to its exposure to nondiscretionary retail categories, including long leases with grocery-based anchor tenants. Woolworths Group Limited (Woolworths) and Coles Group Limited (Coles) are our anchor retail partners at more than 97% of our properties.
Region (originally SCA Property Group was created out of Woolworths in late 2012, when ownership in a number of retail properties was transferred. Since November 2022, we have been operating under our new name, Region Group. Region Group was incorporated in 2012 in Australia.
Who owns the company's shares and how much leadership has at stake
Leadership holds a small personal stake
Professional fund managers have done their homework and chosen to own this
Shares freely traded on the ASX by individual investors like you
Insiders hold 1.1% — some skin in the game, but not a major commitment. Institutions hold 48.1%. Overall a typical ownership structure for a mid-to-large company. Neither a red flag nor a strong positive signal.
Current Snapshot
Insider %
1.1%
Institutional %
48.1%
Float %
50.7%
Why It Matters
Ownership mix affects governance incentives, liquidity, and share-price behaviour under large portfolio rebalancing flows.
Formula
Public Float (%) = 100 - Insider Ownership (%) - Institutional Ownership (%)Method
Use reported ownership percentages, convert to percentage terms, and compute remaining public float as the residual.
Worked Example
If insiders own 1.1% and institutions own 48.1%, public float is 50.7%.
How to Interpret
Higher insider ownership can improve alignment of incentives, while dominant institutional concentration can amplify short-term price moves.
Insiders hold 1.1% — some skin in the game, but not a major commitment. Institutions hold 48.1%. Overall a typical ownership structure for a mid-to-large company. Neither a red flag nor a strong positive signal.
Sources
| Date | Insider | Type | Shares | Value |
|---|---|---|---|---|
| 9 Mar 2026 | Mellowes (Anthony Michael Grainger) Former | Unknown | 130K | — |
| 13 Feb 2026 | Lloyd (Rhonda Jane) Independent Non-Executive Director | Purchase at price 1.61 per share. | 27K | $43K |
| 20 Nov 2025 | Lloyd (Rhonda Jane) Independent Non-Executive Director | Purchase at price 1.54 per share. | 12K | $18K |
| 18 Nov 2025 | Lloyd (Rhonda Jane) Independent Non-Executive Director | Purchase at price 1.55 per share. | 800 | $1K |
| 5 Sept 2025 | Mellowes (Anthony Michael Grainger) Chief Executive Officer | Sale at price 1.59 per share. | 113K | $179K |
Company insiders have been net buyers of shares over the past 12 months. This may indicate management confidence in future prospects.
Value analysis may be affected by missing data.
Market data sourced from third-party financial data providers. Analysis generated using Warsi Criteria — proprietary scoring algorithms for value investing and dividend income analysis. Not financial advice. Learn how we analyse stocks →
Persistently negative free cash flow can force reliance on borrowing or equity issuance to maintain payouts.
Positive cash flow means dividends are funded by actual money, not accounting profits. As Buffett says, "Cash is fact, profit is opinion." Your income is backed by real cash generation.
Profit generated per $1 of shareholder investment
516.7% average ROE meets the threshold, but dropped to -915.6% in a weak year. Consistency matters in this framework.
Current Snapshot
10Y Avg
516.7%
Threshold
8.0%
Worst Year
-915.6%
Why It Matters
ROE shows how effectively management turns shareholder capital into profit. High and stable ROE can signal pricing power, cost discipline, or both.
Formula
Net Income / Shareholders' Equity x 100Method
Use the 10-year average ROE and review the weakest year to check whether returns stayed resilient across cycles.
Worked Example
This company's 10-year average ROE is 516.7%, meaning each $1 of shareholder equity generates $5.17 in annual profit. The threshold is 8%, and the worst single year was -915.6%.
How to Interpret
Higher and steadier ROE generally supports stronger long-term compounding. Large drawdowns in weak years can point to fragility.
The average is solid, but the dip shows some vulnerability. At 516.7% ROE, every $1 retained generates $5.17 in annual profit — monitor whether the weak year was a one-off or a recurring pattern.
Sources
How much the company owes vs. what it owns
Debt-to-equity of 103.99 is 52.0x over Buffett's limit. High leverage increases risk during downturns.
Current Snapshot
Current D/E
103.99x
Industry Limit
2.00x
Headroom
-101.99x
Why It Matters
Debt-to-equity shows balance-sheet risk. Lower leverage usually means more flexibility when earnings soften.
Formula
Total Debt / Shareholders' EquityMethod
Compare current D/E against the industry threshold used in the scoring framework, then assess remaining headroom.
Worked Example
This company's D/E is 103.99, meaning it carries 10399 cents of debt for every $1 of equity. The real estate investment trusts limit is 2.00, leaving it 101.99 over the limit.
How to Interpret
Lower values generally imply lower refinancing pressure and lower dividend stress in downturns.
High debt means interest payments come before dividends. During recessions, heavily indebted companies often cut dividends first to preserve cash. This adds risk to your income stream.
Sources
Short-term assets vs. short-term debts
Current ratio of 0.33 is below 1.0 - company may struggle to pay short-term obligations.
Current Snapshot
Current Ratio
0.33x
Warning Floor
1.00x
Target
1.50x
Why It Matters
Liquidity supports operational stability. Companies with weak liquidity can face pressure even when long-term fundamentals are sound.
Formula
Current Assets / Current LiabilitiesMethod
Compare the current ratio to the warning floor and target level used in the framework.
Worked Example
This company's current ratio is 0.33x — it has $0.33 in short-term assets for every $1 of short-term liabilities. The target is 1.5x, with a warning floor at 1.0x.
How to Interpret
Ratios above the target suggest healthier short-term resilience; ratios below 1.0x can indicate immediate funding risk.
Tight liquidity means the company may need to borrow or sell assets to pay bills. Dividends are often the first expense cut when cash runs low.
Sources
Price versus estimated intrinsic value and required return thresholds.
What percentage of the stock price comes back as earnings each year
Strong value. 8.1% earnings yield exceeds the threshold, and multiple valuation checks confirm it's attractively priced.
Current Snapshot
Current Yield
8.1%
Required Yield
7.5%
Spread
+0.6pp
Why It Matters
Earnings yield reframes valuation as return on price paid. It helps compare equity earnings power against lower-risk alternatives.
Formula
(Earnings per Share / Stock Price) x 100Method
Calculate current earnings yield, then compare it to the required yield for the stock's industry setting.
Worked Example
With EPS of $0.18 and a share price of $2.25, earnings yield is 8.1%. The required yield for this industry is 7.5% (based on 4.5% government bond rate plus a risk premium).
How to Interpret
A yield above the required level suggests better valuation support; below it indicates thinner compensation for equity risk.
Multiple ways of measuring value agree: you're getting a fair deal. The stock offers solid returns compared to what you'd earn from safe bonds.
Sources
Percentage of revenue that becomes profit after all expenses
Exceptional 55.6% net margin signals a strong and durable competitive advantage.
Current Snapshot
Current Margin
55.6%
Threshold
15.0%
Relative Position
+40.6%
Why It Matters
Net income margin shows how much profit the business keeps from each dollar of revenue after all costs.
Formula
Net Income / Total Revenue x 100Method
Compare current margin with the industry-specific threshold to avoid cross-sector distortions.
Worked Example
This company's net income margin is 55.6% — it keeps 56 cents of every revenue dollar as profit after all expenses. The real estate investment trusts threshold is 15%, putting it 40.6% above the requirement.
How to Interpret
Margins that are both strong and stable can indicate competitive strength; persistent weakness may limit reinvestment and payout capacity.
Outstanding profitability means this company converts a large share of every dollar earned into profit. This buffer protects dividends even if revenue dips — the hallmark of a moat.
Sources
Years of earnings needed to retire all long-term debt
Consistency of profits over time
Is the business growing — and is debt being managed responsibly?
Revenue growing with stable debt levels — a positive sign of organic growth that supports future dividends.
Current Snapshot
Revenue Change
+10.3%
Debt Change
+13.3%
Trend State
Improving
Why It Matters
Revenue trend shows whether the business is expanding or contracting. Debt trend adds context on whether growth is being funded conservatively.
Formula
Revenue Change (%) = (Latest Revenue - Earliest Revenue) / |Earliest Revenue| x 100; Debt Change (%) = (Latest Debt - Earliest Debt) / |Earliest Debt| x 100Method
Map annual revenue history and, where relevant, annual debt history. For financial companies, debt is excluded because deposits and reserves distort this signal.
Worked Example
Revenue changed by +10.3% across the displayed period, while debt changed by +13.3%.
How to Interpret
Rising revenue with stable or falling debt is typically stronger than rising revenue funded by rapidly rising leverage.
Revenue growing with stable debt levels — a positive sign of organic growth that supports future dividends.
Sources
6.08% yield meets Barsi's 6% minimum. Based on 6-year average, not one-time spikes.
Current Snapshot
6Y Avg Yield
6.1%
6% Requirement
6.0%
Gross Yield
N/A
Why It Matters
Yield translates dividend income into a percentage of the price paid, which is central to income-first screening.
Formula
Annual Dividends per Share / Stock Price x 100Method
Use the 6-year average annual dividend for consistency and compare the result with the 6% framework requirement.
Worked Example
With a 6-year average annual dividend of $0.14 and a share price of $2.25, the Barsi yield is 6.1%. The minimum requirement is 6%.
How to Interpret
Higher sustainable yield improves upfront income, but unusually high yields may reflect elevated risk or weak coverage.
This yield provides meaningful income that can beat inflation and compound over time. With DRIP enabled, this income can snowball into significant wealth.
Sources
Track record of consistent dividend payments
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| ~1 July 2026Est | ~27 July 2026 | ~$0.07 | 0% | ~$0.07 | $0.00 |
| ~31 Dec 2026Est | ~1 Feb 2027 | ~$0.07 | 0% | ~$0.07 | $0.00 |
| Ex-Date | Pay Date | Gross | Franking | Net | Credit |
|---|---|---|---|---|---|
| 30 Dec 2025Interim | 30 Jan 2026 | $0.07 | 0% | $0.07 | $0.00 |
| 27 June 2025Final | 25 July 2025 | $0.07 | 0% | $0.07 | $0.00 |
| 30 Dec 2024Interim | 27 Jan 2025 | $0.07 | 0% | $0.07 | $0.00 |
| 27 June 2024Final | 25 July 2024 | $0.07 | 0% | $0.07 | $0.00 |
| 28 Dec 2023Interim | 25 Jan 2024 | $0.07 | 0% | $0.07 | $0.00 |
| 29 June 2023Final | 27 July 2023 | $0.08 | 0% | $0.08 | $0.00 |
| 29 Dec 2022Interim | 26 Jan 2023 | $0.07 | 0% | $0.07 | $0.00 |
| 29 June 2022Final | 27 July 2022 | $0.08 | 0% | $0.08 | $0.00 |
| 30 Dec 2021Interim | 27 Jan 2022 | $0.07 | 0% | $0.07 | $0.00 |
| 29 June 2021Final | 27 July 2021 | $0.07 | 0% | $0.07 | $0.00 |
Excellent track record. 10 years of consistent dividends through multiple market cycles.
Current Snapshot
History
10yr
Predictability
Stable
Payout Health
One-off event
Why It Matters
Payment consistency is a direct test of dividend reliability. Large cuts or skips often appear before confidence recovers.
Formula
Consecutive Years = count of years with dividend payments and no disqualifying skip/cut eventsMethod
Require at least 6 years of history, then check for skipped years and large cuts, allowing approved systemic-event exceptions.
Worked Example
This company has 10 years of dividend history (2016–2025). No suspensions detected — 10 consecutive years of payments. Predictability: Stable. Payout health: One-off event. The minimum requirement is 6 years.
How to Interpret
Longer uninterrupted records generally signal stronger income reliability than high yield alone.
A 10-year track record through multiple economic cycles gives confidence your income will continue. This company has proven it prioritises shareholder returns.
Sources
Highest price to lock in 6% yield
Current price is favourable. Locks in 6%+ dividend yield based on historical average.
Current Snapshot
Current Price
$2.25
Max Buy Price
$2.28
Delta
+1.3%
Why It Matters
The price ceiling links valuation discipline to income targets by defining the price that aligns with a 6% yield target.
Formula
6-Year Average Annual Dividend / 0.06Method
Use the 6-year average dividend (not one year) and divide by 0.06 to estimate the maximum entry price for target yield.
Worked Example
With a current price of $2.25 and a ceiling of $2.28, the entry is 1.3% below the ceiling.
How to Interpret
Prices below the ceiling imply a historical yield above 6%; prices above it imply a lower historical yield at entry.
Buying below the ceiling locks in your target yield based on proven historical dividends — not projections. Your income is secured at this price.
Sources
Industry category of the business
Real Estate is not a BESST sector. Non-BESST stocks receive a lower base score but can still qualify with exceptional dividend metrics.
Current Snapshot
Industry
REIT - Retail
BESST Match
No
Score Impact
No bonus
Why It Matters
Sector classification helps contextualise risk and demand durability, which can materially affect dividend stability.
Formula
BESST Match = Sector in {Banks, Energy, Sanitation, Insurance, Telecom}Method
Match company sector or industry against BESST categories. A match adds scoring support but does not replace core dividend checks.
Worked Example
This company operates in REIT - Retail (Real Estate sector). It does not match a BESST sector, so it receives the standard base score. Non-BESST stocks can still qualify with strong dividend metrics.
How to Interpret
BESST alignment is a positive context signal. Non-BESST stocks can still qualify with strong yield and dividend consistency.
Non-essential businesses face demand drops during recessions — discretionary spending is first to be cut. This increases cyclical risk for dividends, but companies with decades of consistent payments can still demonstrate durability.
Sources
How much of a company's earnings are paid out as dividends
A 52% payout is in the sustainable range (30–75%) — the company balances rewarding shareholders with reinvesting for growth. This gives the price ceiling calculation a stable base, which is a healthy sign for long-term dividend investors.
Current Snapshot
Latest Ratio
52.3%
Healthy Range
30%-75%
Zone
Healthy
Why It Matters
Payout ratio links dividends to earnings capacity and helps evaluate whether current distributions are likely to remain supportable.
Formula
Payout Ratio (%) = (Annual Dividend per Share / Earnings per Share) x 100Method
Calculate year-by-year payout ratios where EPS is positive, classify each year by sustainability zone, and compare with the current TTM ratio.
Worked Example
$0.14 dividend / $0.18 EPS equals 76.4% payout ratio.
How to Interpret
Ratios in the middle range are usually more sustainable than very high ratios. Values above 100% indicate dividends exceeded earnings in that period.
A 52% payout is in the sustainable range (30–75%) — the company balances rewarding shareholders with reinvesting for growth. This gives the price ceiling calculation a stable base, which is a healthy sign for long-term dividend investors.
Sources
Would take 44.1 years of earnings to pay off long-term debt — above the 10-year threshold. Common for this sector's capital structure.
Current Snapshot
Payoff Years
44.1yr
Target Years
10yr
Gap
-34.1yr
Why It Matters
Debt payoff years converts leverage into an intuitive time measure, making debt burden easier to compare across stocks.
Formula
Long-Term Debt / Average Net Income (3yr)Method
Use current long-term debt and the 3-year average net income to smooth one-off profit noise.
Worked Example
With $1.6B in long-term debt and $35M in average annual earnings (3yr), it would take 44.1 years of earnings to pay off all debt. The real estate investment trusts threshold is 10 years.
How to Interpret
Lower values generally indicate stronger debt capacity. Very high values can constrain dividend resilience.
Higher leverage is structural in this sector, but it means interest payments reduce the pool available for dividends. Monitor debt levels during economic downturns.
Sources
1 loss year(s) found with only 4 years of data. Limited data requires 100% positive EPS - industry exemptions don't apply.
Current Snapshot
Positive Years
9/4
Allowed Losses
0 (limited)
EPS CAGR
-4.0%
Why It Matters
Consistency in EPS helps distinguish resilient earnings power from one-off performance spikes.
Formula
Positive EPS Years / Available EPS YearsMethod
For 8+ years of data, apply industry-specific loss tolerance. For limited data, every available year must be positive.
Worked Example
This company reported positive earnings in 9 of the last 4 years, with 1 loss year. With only 4 years of data, every year must be positive. EPS growth rate (CAGR) is -4.0%.
How to Interpret
Fewer loss years and stronger EPS continuity generally improve confidence in future dividend and valuation assumptions.
Loss years signal unpredictable earnings. During loss periods, companies often cut dividends to preserve cash. Your income could be at risk in the next downturn.
Sources
Vicinity Centres
Scentre Group
Centuria Capital Group
Lendlease Group
Mirvac Group
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