ASX:ABP

Stock Analysis Report

Abacus Property Group

Executive Summary

Abacus Property Group is a leading diversified property group that invests in real estate opportunities to deliver enhanced returns.

Snowflake

Fundamentals

Established dividend payer and good value.


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


Market Performance


7 Day Return

-2.0%

ABP

0.05%

AU REITs

1.0%

AU Market


1 Year Return

12.6%

ABP

14.5%

AU REITs

7.2%

AU Market

ABP underperformed the REITs industry which returned 14.5% over the past year.

ABP outperformed the Market in Australia which returned 7.2% over the past year.


Share holder returns

ABPIndustryMarket
7 Day-2.0%0.05%1.0%
30 Day-2.3%-2.3%3.2%
90 Day-11.1%-1.9%1.4%
1 Year18.4%12.6%20.3%14.5%13.4%7.2%
3 Year56.4%33.9%41.8%21.4%40.7%21.8%
5 Year96.5%50.2%103.6%58.1%50.8%17.0%

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

3 weeks ago | Simply Wall St

What Can We Expect From Abacus Property Group's (ASX:ABP) Earnings Over The Next Year?

Valuation

Is Abacus Property Group undervalued based on future cash flows and its price relative to the stock market?

25%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Abacus Property Group's share price is below the future cash flow value, and at a moderate discount (> 20%).

Abacus Property Group's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Abacus Property Group is good value based on earnings compared to the AU REITs industry average.

Abacus Property Group is good value based on earnings compared to the Australia market.


Price Based on Expected Growth

Abacus Property Group earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

Abacus Property Group is good value based on assets compared to the AU REITs industry average.


Next Steps

Future Growth

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

-8.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Abacus Property Group's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

Abacus Property Group's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Abacus Property Group's revenues are expected to decrease over the next 1-3 years, this is below the Australia market average.

Abacus Property Group's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.

Abacus Property Group's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Abacus Property Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

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

15.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Abacus Property Group's year on year earnings growth rate has been positive over the past 5 years.

Abacus Property Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Abacus Property Group's 1-year earnings growth is negative, it can't be compared to the AU REITs industry average.


Return on Equity

Abacus Property Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Abacus Property Group used its assets more efficiently than the AU REITs industry average last year based on Return on Assets.


Return on Capital Employed

Abacus Property Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Abacus Property Group's financial position?


Financial Position Analysis

Abacus Property Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Abacus Property Group's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Abacus Property Group's level of debt (37.9%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (49.4% vs 37.9% today).

Debt is not well covered by operating cash flow (14.7%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 6x coverage).


Balance Sheet

Low level of unsold assets.

Debt is not covered by short term assets, assets are 0.3x debt.


Next Steps

Dividend

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

5.13%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Abacus Property Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.44%).

Abacus Property Group's dividend is below the markets top 25% of dividend payers in Australia (5.64%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (684.9x coverage).


Next Steps

Management

What is the CEO of Abacus Property Group's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Steven Sewell (53yo)

1.4yrs

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

Steven's remuneration is about average for companies of similar size in Australia.

Steven's compensation has increased by more than 20% in the past year whilst earnings fell less than 20%.


Management Age and Tenure

1.4yrs

Average Tenure

The average tenure for the Abacus Property Group management team is less than 2 years, this suggests a new team.


Board Age and Tenure

0.8yrs

Average Tenure

The average tenure for the Abacus Property Group board of directors is less than 3 years, this suggests a new board.


Insider Trading

More shares have been bought than sold by Abacus Property Group individual insiders in the past 3 months.


Recent Insider Transactions

BuyAU$169,44417 Sep 19
Steven Sewell
EntityIndividual
Role
Chief Executive Officer
MD & Director
Shares43,448
Max PriceAU$3.90
BuyAU$25,03023 Aug 19
Holly Kramer
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares6,402
Max PriceAU$3.91
BuyAU$50,12503 Mar 19
Holly Kramer
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares13,679
Max PriceAU$3.66
BuyAU$4,938,15305 Feb 19
Investors Mutual Limited
EntityCompany
Shares1,521,008
Max PriceAU$3.25
SellAU$719,76715 Oct 18
Investors Mutual Limited
EntityCompany
Shares188,683
Max PriceAU$3.81
BuyAU$23,840,23015 Oct 18
Investors Mutual Limited
EntityCompany
Shares7,037,404
Max PriceAU$3.39

Ownership Breakdown


Management Team

  • Cameron Laird

    Director of Property Developments

    • Tenure: 11.6yrs
    • Compensation: AU$954.32k
  • Peter Strain

    Director of Property Investment

    • Tenure: 2.3yrs
    • Compensation: AU$940.33k
  • Neil Summerfield

    General Manager of Corporate Development

    • Tenure: 1.1yrs
  • Steven Sewell (53yo)

    MD & Director

    • Tenure: 1.4yrs
    • Compensation: AU$1.96m
  • Rob Baulderstone

    CFO & Company Secretary

    • Tenure: 6.8yrs
    • Compensation: AU$1.05m
  • Gavin Lechem

    Executive General Manager of Corporate Development

    • Tenure: 1.1yrs
  • Phil Peterson

    Director of Self-Storage

    • Tenure: 0yrs
  • Lisa-Anne Carey

    Head of Legal

    • Tenure: 1.4yrs
  • Cynthia Rouse

    Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Holly Kramer (54yo)

    Non-Executive Director

    • Tenure: 0.8yrs
    • Compensation: AU$66.60k
  • Trent Alston

    Director

    • Tenure: 0yrs
  • Steven Sewell (53yo)

    MD & Director

    • Tenure: 1.4yrs
    • Compensation: AU$1.96m
  • Jingmin Qian

    Non-Executive Director

    • Tenure: 2yrs
    • Compensation: AU$130.20k
  • Myra Salkinder

    Chairman

    • Tenure: 0yrs
    • Compensation: AU$126.00k
  • Mark Haberlin

    Lead Independent Director

    • Tenure: 0.08yrs
    • Compensation: AU$82.69k

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$2.517b
  • Shares outstanding: 645.33m
  • Website: https://www.abacusproperty.com.au

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 is a leading diversified property group that invests in real estate opportunities to deliver enhanced returns. Abacus was established in 1996 and listed on the ASX in 2002. It is incl ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/20 10:33
End of Day Share Price2019/09/20 00:00
Earnings2019/06/30
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.