ASX:ABP

Stock Analysis Report

Abacus Property Group

Executive Summary

Abacus Property Group (ASX:ABP), is a diversified Australian REIT with an investment portfolio concentrated in the Office and Self Storage sectors.


Snowflake Analysis

Very undervalued established dividend payer.


Similar Companies

Share Price & News

How has Abacus Property Group's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ABP's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

15.1%

ABP

13.2%

AU REITs

13.4%

AU Market


1 Year Return

-39.2%

ABP

-34.6%

AU REITs

-18.8%

AU Market

Return vs Industry: ABP underperformed the Australian REITs industry which returned -36.8% over the past year.

Return vs Market: ABP underperformed the Australian Market which returned -22.9% over the past year.


Shareholder returns

ABPIndustryMarket
7 Day15.1%13.2%13.4%
30 Day-39.5%-36.5%-20.7%
90 Day-37.5%-35.8%-24.4%
1 Year-36.2%-39.2%-31.7%-34.6%-15.2%-18.8%
3 Year-19.9%-31.2%-12.8%-25.2%-2.8%-15.9%
5 Year1.9%-21.9%12.2%-12.7%9.3%-15.3%

Price Volatility Vs. Market

How volatile is Abacus Property Group's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Abacus Property Group undervalued compared to its fair value and its price relative to the market?

46.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ABP (A$2.25) is trading below our estimate of fair value (A$4.22)

Significantly Below Fair Value: ABP is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ABP is good value based on its PE Ratio (8.7x) compared to the REITs industry average (9.2x).

PE vs Market: ABP is good value based on its PE Ratio (8.7x) compared to the Australian market (12.6x).


Price to Earnings Growth Ratio

PEG Ratio: ABP is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: ABP is good value based on its PB Ratio (0.7x) compared to the AU REITs industry average (0.8x).


Next Steps

Future Growth

How is Abacus Property Group forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

15.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABP's forecast earnings growth (15.7% per year) is above the savings rate (1.1%).

Earnings vs Market: ABP's earnings (15.7% per year) are forecast to grow faster than the Australian market (9.7% per year).

High Growth Earnings: ABP's earnings are forecast to grow, but not significantly.

Revenue vs Market: ABP's revenue is expected to decline over the next 3 years (-3.3% per year).

High Growth Revenue: ABP's revenue is forecast to decline over the next 3 years (-3.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ABP's Return on Equity is forecast to be low in 3 years time (6.1%).


Next Steps

Past Performance

How has Abacus Property Group performed over the past 5 years?

7.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ABP has high quality earnings.

Growing Profit Margin: ABP's current net profit margins (49.4%) are lower than last year (70.3%).


Past Earnings Growth Analysis

Earnings Trend: ABP's earnings have grown by 7.4% per year over the past 5 years.

Accelerating Growth: ABP's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ABP had negative earnings growth (-37%) over the past year, making it difficult to compare to the REITs industry average (1.7%).


Return on Equity

High ROE: ABP's Return on Equity (6.7%) is considered low.


Next Steps

Financial Health

How is Abacus Property Group's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ABP has a low level of unsold assets or inventory.

Debt Coverage by Assets: ABP's debt is not covered by short term assets (assets are 0.3x debt).


Financial Institutions Analysis

Asset Level: ABP's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ABP has a sufficient allowance for bad loans.

Low Risk Liabilities: ABP reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ABP has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ABP has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ABP has an appropriate level of bad loans.


Next Steps

Dividend

What is Abacus Property Group's current dividend yield, its reliability and sustainability?

8.40%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ABP's dividend (8.4%) is higher than the bottom 25% of dividend payers in the Australian market (3.35%).

High Dividend: ABP's dividend (8.4%) is low compared to the top 25% of dividend payers in the Australian market (8.5%).


Stability and Growth of Payments

Stable Dividend: ABP's dividends per share have been stable in the past 10 years.

Growing Dividend: ABP's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.3%), ABP's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ABP's dividends in 3 years are forecast to be thoroughly covered by earnings (0.1% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.9yrs

Average management tenure


CEO

Steven Sewell (53yo)

1.92s

Tenure

AU$1,958,266

Compensation

Mr. Steven Craig Sewell, BSc, has been Managing Director of Macquarie Infrastructure and Real Assets (Europe) Limited since July 02, 2018. He has been Managing Director and Director of Abacus Property Grou ...


CEO Compensation Analysis

Compensation vs Market: Steven's total compensation ($USD1.20M) is about average for companies of similar size in the Australian market ($USD1.08M).

Compensation vs Earnings: Steven's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Steven Sewell
MD & Director1.92yrsAU$1.96m0.018% A$280.2k
Robert Baulderstone
CFO & Company Secretary7.33yrsAU$1.05m0.049% A$748.1k
Peter Strain
Director of Property Investment2.75yrsAU$940.33k0.065% A$993.8k
Cynthia Rouse
Head of Investor Relationsno datano datano data
Lisa-Anne Carey
Head of Legal1.92yrsno datano data
Gavin Lechem
Executive General Manager of Corporate Development1.58yrsno datano data
Cameron Laird
Director of Property Developments12yrsAU$954.32k0.032% A$488.2k
Philip Peterson
Director of Self-Storageno datano datano data
Neil Summerfield
General Manager of Corporate Development1.58yrsno datano data

1.9yrs

Average Tenure

Experienced Management: ABP's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Steven Sewell
MD & Director1.92yrsAU$1.96m0.018% A$280.2k
Holly Kramer
Non-Executive Director1.25yrsAU$66.60k0.0031% A$46.7k
Trent Alston
Non-Executive Director0.50yrno data0.0046% A$69.9k
Jingmin Qian
Non-Executive Director2.5yrsAU$130.20k0.0031% A$46.6k
Myra Salkinder
Chairman0.50yrAU$126.00k0.00031% A$4.7k
Mark Haberlin
Lead Independent Director0.58yrAU$82.69k0.0054% A$81.6k

0.6yrs

Average Tenure

Experienced Board: ABP's board of directors are not considered experienced ( 0.6 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ABP insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.9%.


Top Shareholders

Company Information

Abacus Property Group's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Abacus Property Group
  • Ticker: ABP
  • Exchange: ASX
  • Founded: 1996
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: AU$1.523b
  • Shares outstanding: 653.50m
  • Website: https://www.abacusproperty.com.au

Number of Employees


Location

  • Abacus Property Group
  • Australia Square
  • Level 34
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ABPASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDNov 2002
ABPCHIA (Chi-X Australia)YesStapled SecuritiesAUAUDNov 2002
EZOMUN (Boerse Muenchen)YesStapled SecuritiesDEEURNov 2002
EZODB (Deutsche Boerse AG)YesStapled SecuritiesDEEURNov 2002

Biography

Abacus Property Group (ASX:ABP), is a diversified Australian REIT with an investment portfolio concentrated in the Office and Self Storage sectors. We invest capital in real estate opportunities to deliver superior long term returns and maximise security holder value. Abacus’ key focus is to be a strong asset backed, annuity style business model where capital is directed towards assets that provide potential for enhanced income growth and ultimately create value. Our people, market insight and repositioning capability together with strategic partnering are the key enablers of our strategy. Abacus was established in 1996 and listed on the ASX in 2002. As at 30 June 2019, it is included in the S&P/ASX 200 index and has a market capitalisation of $2.4 billion, with a single corporate office in Sydney, Australia. Abacus is comprised of Abacus Group Holdings Limited (the nominated parent entity), Abacus Group Projects Limited and Abacus Storage Operations Limited, Abacus Trust, Abacus Income Trust and Abacus Storage Property Trust. The shares and units in these entities are stapled together and trade as one security in ABP. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 10:37
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.