Real Estate Investors (LSE:RLE) Interest Coverage : 1.93 (As of Dec. 2024)

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What is Real Estate Investors Interest Coverage?

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. 2024 was £3.09 Mil. Real Estate Investors's Interest Expense for the six months ended in Dec. 2024 was £-1.61 Mil. Real Estate Investors's interest coverage for the quarter that ended in Dec. 2024 was 1.93. 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: 1.47 Med: 2.8 Max: 3.25
Current: 1.87

LSE:RLE's Interest Coverage is ranked worse than
68.25% of 718 companies
in the REITs industry
Industry Median: 2.855 vs LSE:RLE: 1.87

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Real Estate Investors Interest Coverage Historical Data

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.

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Real Estate Investors Interest Coverage Chart

Real Estate Investors Annual Data

Trend

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Dec24

Interest Coverage

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3.24

2.97

2.53

2.81

1.87

Real Estate Investors Semi-Annual Data
	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23	Jun24	Dec24
Interest Coverage	Get a 7-Day Free Trial															2.20	2.64	3.02	1.81	1.93

Competitive Comparison of Real Estate Investors's Interest Coverage

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's Interest Coverage Distribution in the 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.

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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:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Real Estate Investors's Interest Coverage for the fiscal year that ended in Dec. 2024 is calculated as

Here, for the fiscal year that ended in Dec. 2024, Real Estate Investors's Interest Expense was £-3.34 Mil. Its Operating Income was £6.24 Mil. And its Long-Term Debt & Capital Lease Obligation was £0.00 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2024 )	/	Interest Expense (A: Dec. 2024 )
	=	-1	*	6.24	/	-3.339
	=	1.87

Real Estate Investors's Interest Coverage for the quarter that ended in Dec. 2024 is calculated as

Here, for the six months ended in Dec. 2024, Real Estate Investors's Interest Expense was £-1.61 Mil. Its Operating Income was £3.09 Mil. And its Long-Term Debt & Capital Lease Obligation was £0.00 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2024 )	/	Interest Expense (Q: Dec. 2024 )
	=	-1	*	3.093	/	-1.605
	=	1.93

The higher the ratio, the stronger the company's Financial Strength is.

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

Thank you for viewing the detailed overview of Real Estate Investors's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Real Estate Investors Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Real Estate Investors PLC (LSE:RLE) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

RLE.GB:UK

Address

75-77 Colmore Row, 2nd Floor, Birmingham, GBR, B3 2AP

Website

https://www.reiplc.com

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.

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