RDI Reit PLC (RDI.L) WACC Analysis

As of May 27, 2025, RDI Reit PLC (RDI.L) carries a Weighted Average Cost of Capital (WACC) of 6.7%. WACC reflects the blended rate RDI Reit PLC must pay to both equity and debt holders.

Within that, the cost of equity is 7.3%, the cost of debt is 4.0%, and the effective tax rate is 0.9%.

Breakdown of WACC Components

• Long-term bond rate: 2.9% – 3.4%
• Equity market risk premium: 5.3% – 6.3%
• Adjusted beta: 0.81 – 0.97
• Additional risk adjustment: 0.0% – 0.5%
• Debt-to-equity ratio: 1.42

What It Means for Investors

With a selected WACC of 6.7%, RDI Reit PLC must ensure any new investment returns exceed this threshold to generate shareholder value. This level reflects an attractive low cost of capital.