Now could be an opportune time to snap up the ASX 200 stock in this article.
That's the view of analysts at Bell Potter, who believe that it could generate big returns for investors over the remainder of 2026.
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Which ASX 200 stock?
The stock in question is Region Re Ltd (ASX: RGN). It is an internally managed REIT owning and managing a portfolio of approximately 100 neighbourhood and sub-regional shopping centres around Australia.
Bell Potter notes that the ASX 200 stock has released its half-year results and was pleased with what it saw. It said:
RGN announced its 1H26 result with FFO / share of 7.9c directly in-line with BPe and Visible Alpha consensus. FY26 guidance has been upgraded to FFO / share of 16.0c (was 15.9c, BPe 15.9c, VA 15.9c) and AFFO / DPS of 14.1c.
The broker also highlights that the company's outlook is improving. It adds:
Whilst not in our forecasts, we see potential avenues for further growth beyond stated guidance. Potential factors, which are not included in guidance, include: (1) further accretive acquisitions above RGN's marginal CoC, (2) further deployment of FUM with capital partner (pro-forma FUM now c.$840m vs FY25 $711.5m), (3) recommencement of buy-back (c.16% complete at $2.39 avg.).
Big potential returns
In response to the results, Bell Potter has reaffirmed its buy rating on the ASX 200 stock with an improved price target of $2.75.
Based on its current share price of $2.33, this implies potential upside of 18% for investors over the next 12 months.
In addition, the broker is expecting a dividend yield of approximately 6%. This boosts the total potential return to 24%.
Bell Potter highlights that the company's shares are trading at a discount to net tangible assets (NTA) despite offering a generous dividend yield and having a "strong runway."
Commenting on its buy recommendation, Bell Potter concludes:
No change to our Buy recommendation. We continue to see strong runway for RGN, with interest expense variability largely hedged out and, in our view, conservative guidance amid the backdrop of improving property fundamentals, trading at 14.6x FY26e FFO and a -9% discount to NTA offering a 6.0% yield.
Our target price increases accounting for these earnings changes, roll forward of our valuations. Our DCF valuation increases +3.1% accounting for the above changes. Our SOTP increases by +0.3%, reflecting our updated assumption for -10bp cap rate compression in our NAV (vs. -15bp previously).
