Some Analysts Just Cut Their Growthpoint Properties Limited (JSE:GRT) Estimates
The latest analyst coverage could presage a bad day for Growthpoint Properties Limited ( JSE:GRT ), with the analysts...
South African (JSE) REITS Industry Analysis
UpdatedDec 02, 2021
DataAggregated Company Financials
Companies33
- 7D5.3%
- 3M1.3%
- 1Y24.2%
- YTD24.0%
Over the last 7 days, the REITS industry has risen 5.3%, driven by gains from Growthpoint Properties of 15%. Meanwhile, Redefine Properties actually underperformed within the industry, shrinking 8.1% in the last week. This takes the industry's 12 month performance to a gain of 24%.
Industry Valuation and Performance
Has the South African REITS Industry valuation changed over the past few years?
| Date | Market Cap | Revenue | Earnings | PE |
|---|---|---|---|---|
| Sun, 05 Dec 2021 | R233.0b | R57.9b | R13.4b | 9.4x |
| Tue, 02 Nov 2021 | R229.0b | R57.3b | -R1,996,451,283.00 | 9.8x |
| Thu, 30 Sep 2021 | R232.1b | R56.8b | -R5,995,424,310.00 | 14x |
| Sat, 28 Aug 2021 | R232.5b | R56.8b | -R24,384,644,702.47 | 14.4x |
| Sun, 04 Jul 2021 | R223.3b | R56.8b | -R24,384,644,702.47 | 13.8x |
| Wed, 07 Apr 2021 | R202.2b | R56.2b | -R34,336,861,702.47 | 13.5x |
| Sat, 09 Jan 2021 | R189.1b | R57.2b | -R49,637,686,800.21 | 13.1x |
| Fri, 02 Oct 2020 | R161.3b | R59.8b | -R51,879,630,620.06 | 13x |
| Mon, 06 Jul 2020 | R182.0b | R62.1b | -R41,122,016,030.02 | 13.6x |
| Thu, 09 Apr 2020 | R156.9b | R64.2b | -R14,372,187,922.37 | 14x |
| Wed, 01 Jan 2020 | R300.3b | R64.7b | R12.6b | 11.8x |
| Sat, 05 Oct 2019 | R308.1b | R65.0b | R18.3b | 11.1x |
| Tue, 09 Jul 2019 | R330.4b | R64.7b | R20.9b | 11.3x |
| Mon, 01 Apr 2019 | R326.6b | R64.5b | R8.8b | 10.8x |
| Thu, 03 Jan 2019 | R331.8b | R63.4b | -R1,413,061,211.57 | 9x |
PE Ratio
9x
Current Industry PE: Investors are relatively neutral on the industry at the moment, considering it's trading close to its 3-year average PE ratio of 12.3x. It appears they believe that earnings will grow in-line with historical growth rates.
Past Earnings Growth: Total earnings for the REITs industry have gone up over the last three years, and the industry is now profitable. However revenues have declined 3.0% per year. This means that less sales are being generated overall, but since the cost of doing business is lower, profits have been increasing.
Industry Trends
Which industries have driven the changes within the South African REITS industry?
| Retail REITs | 6.54% | |
| Industrial REITs | 6.11% | |
| Diversified REITs | 4.95% | |
| Residential REITs | 2.23% | |
| Specialized REITs | 2.22% | |
| Office REITs | -2.25% | |
Industry PE: Investors are most optimistic about the Diversified REITs industry even though it's trading below its 3-year average PE ratio of 13.2x. However analysts are expecting annual earnings growth of 52%, which is lower than the prior year's growth of 190% per year. So the market might believe that analysts are underestimating future growth. Meanwhile, investors are most pessimistic about the Residential REITs industry, which is trading below its 3-year average of 14.1x.
Forecasted Growth: Analysts are most optimistic on the Diversified REITs industry, expecting annual earnings growth of 52% over the next 5 years. However this is lower than its past earnings growth rate of 190% per year.
Top Stock Gainers and Losers
Which companies have driven the market over the last 7 days?
| Company | 7D | 1Y | Valuation | |
|---|---|---|---|---|
| GRT Growthpoint Properties | 15.0%+R6.3b | 15.0% | PB0.7x | |
| RES Resilient REIT | 8.7%+R1.7b | 42.6% | PB1.1x | |
| FFA Fortress REIT | 5.7%+R1.6b | -0.9% | PB1.1x | |
| HYP Hyprop Investments | 10.1%+R1.1b | 9.7% | PB0.6x | |
| VKE Vukile Property Fund | 8.6%+R984.9m | 64.9% | PB0.7x |