Real Estate InvestorsLSE:RLE 42 Interest Coverage is 2.16 as of Dec. 2025, which is 23% below its 10-year median of 2.80. GuruFocus rates LSE:RLE with a GF Score™ of 42/100 and a GF Value™ of £0.25 (Modestly Overvalued). The stock has 8 warning signs investors should review. Among 700 REITs companies, Real Estate Investors ranks worse than 69% on this metric.
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's
Operating Income
by its Interest Expense. Real Estate Investors's
Operating Income
for the
six
months ended in Dec. 2025 was £2.48 Mil. Real Estate Investors's Interest Expense for the
six
months ended in Dec. 2025 was £-1.15 Mil.
Real Estate Investors's interest coverage for the quarter that ended in Dec. 2025 was 2.16.
The higher the ratio, the stronger the company's financial strength is.
The historical rank and industry rank for Real Estate Investors's Interest Coverage or its related term are showing as below:
LSE:RLE'
s Interest Coverage Range Over the Past 10 Years
Min: 1.87 Med: 2.8 Max: 3.25
Current: 2.04
LSE:RLE's Interest Coverage is ranked worse than 69% of 700
companies
in the REITs industry
Industry Median: 3.095
vs LSE:RLE: 2.04
Real Estate Investors (LSE:RLE) Interest Coverage Explanation
Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.
Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .
Real Estate Investors Interest Coverage Related Terms
Real Estate Investors Interest Coverage Historical Data
* Premium members only.
The historical data trend for Real Estate Investors's Interest Coverage can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
LSE:RLE vs VICI, WPC: Interest Coverage Comparison
For the REIT - Diversified subindustry, Real Estate Investors's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Real Estate Investors Interest Coverage vs REITs Industry
For the REITs industry and Real Estate sector, Real Estate Investors's Interest Coverage distribution charts can be found below:
* The bar in red indicates where Real Estate Investors's Interest Coverage falls into.
Real Estate Investors Interest Coverage Calculation
Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Real Estate Investors (LSE:RLE) has a Interest Coverage of 2.16 as of Dec. 2025. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Real Estate Investors and its competitors. This is 23% below median its historical median of 2.80. Over the past decade, Real Estate Investors' Interest Coverage has ranged from 1.87 to 3.25. According to the industry distribution chart, Real Estate Investors ranks #483 out of 700 companies in the REITs industry, placing it in the top 69%.
Is Real Estate Investors' Interest Coverage too high?
Real Estate Investors' current Interest Coverage of 2.16 is 23% below median its 10-year median of 2.80. Over the past 10 years, this metric has ranged from a low of 1.87 to a high of 3.25. The REITs industry median Interest Coverage is 3.10. Real Estate Investors' value of 2.16 is 30.2% below this industry median. Based on the distribution chart, Real Estate Investors ranks #483 out of 700 companies in the REITs industry, which is below the industry midpoint. Overall, Real Estate Investors has a GF Score™ of 42/100 and is considered Modestly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Real Estate Investors' Interest Coverage compare to VICI and WPC?
According to the REITs industry distribution chart, Real Estate Investors ranks #483 out of 700 companies for Interest Coverage. This places Real Estate Investors in the lower half of its industry. The industry median Interest Coverage is 3.10. Real Estate Investors' value of 2.16 is 30.2% below this benchmark. Historically, Real Estate Investors' own Interest Coverage has ranged from 1.87 to 3.25 over the past decade. While the company's 10-year median is 2.80 vs. the industry median of 3.10, Real Estate Investors has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Interest Coverage for a REITs company?
The median Interest Coverage among REITs companies is 3.10, based on 700 companies in the industry. Companies in the top quartile (top 25%) have a Interest Coverage significantly above this median, while those in the bottom quartile fall well below. However, Interest Coverage should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Real Estate Investors's current Interest Coverage of 2.16 is 30.2% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Interest Coverage mean?
A high Interest Coverage can signal that a stock is expensive relative to its fundamentals. Interest Coverage measures a company's capability to pay interest expenses on its debt. View historical data on Real Estate Investors and its competitors. For the REITs industry, the median Interest Coverage is 3.10 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Real Estate Investors's current Interest Coverage is 2.16, which is 23% below median its own 10-year median of 2.80. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Real Estate Investors stock overvalued right now?
Based on GuruFocus' analysis, Real Estate Investors (LSE:RLE) is currently considered Modestly Overvalued. The stock's GF Value™ is £0.25, compared to a current price of £0.32 — trading 26% above its estimated fair value. The current Interest Coverage is 2.16, which is 23% below median its 10-year median of 2.80 and 30.2% below the REITs industry median of 3.10. Real Estate Investors' overall GF Score™ is 42/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Interest Coverage calculated?
Interest Coverage is calculated from a company's financial statements. For Real Estate Investors (LSE:RLE), the current Interest Coverage is 2.16 as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Real Estate Investors (LSE:RLE) Overvalued in 2026?
Based on GuruFocus' analysis, Real Estate Investors stock appears to be overvalued.
The current stock price of £0.32 is trading 26% above its estimated GF Value™ of £0.25.
GuruFocus considers Real Estate Investors to be Modestly Overvalued.
Key valuation signals for LSE:RLE:
Interest Coverage: 2.16 (23% below median its 10-year median of 2.80)
GF Value™: £0.25 vs. price of £0.32 (26% above fair value)
Industry Position: 30.2% below the REITs median (#483 of 700)
No single metric tells the full story. See the LSE:RLE stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Real Estate Investors PLC operates as a real estate investment trust in the United Kingdom. The property investment firm has interests in commercial and residential properties throughout the country. Its portfolio is diversified by property type and tenant, with a mix of office, retail, and residential assets. The company invests in well-located, real estate assets in the established markets of central Birmingham and the Midlands. Its source of income is in the form of rents derived from retail, office, and residential land and property, new lettings, rent reviews, lease renewals, refurbishment, change of use, and planning gains. It has a range of occupiers from national and regional multiple retailers to government and corporate office occupiers.
42GF Score
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