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 fair 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

-0.5%

ABP

0.7%

AU REITs

1.7%

AU Market


1 Year Return

20.1%

ABP

18.9%

AU REITs

10.3%

AU Market

Return vs Industry: ABP exceeded the Australian REITs industry which returned 18.9% over the past year.

Return vs Market: ABP exceeded the Australian Market which returned 10.3% over the past year.


Shareholder returns

ABPIndustryMarket
7 Day-0.5%0.7%1.7%
30 Day0.5%1.0%-0.4%
90 Day-6.2%-1.6%-0.1%
1 Year26.2%20.1%24.9%18.9%16.7%10.3%
3 Year65.4%41.6%46.2%25.2%36.7%18.4%
5 Year95.7%49.6%101.5%56.7%50.9%16.9%

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?

23.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: ABP (A$3.95) is trading below our estimate of fair value (A$5.14)

Significantly Undervalued: ABP is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: ABP is good value based on its PE Ratio (11.4x) compared to the REITs industry average (16x).

PE vs Market: ABP is good value based on its PE Ratio (11.4x) compared to the Australian market (18.2x).


Price to Earnings Growth Ratio

Low PEG Ratio: ABP's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: ABP is overvalued based on its PB Ratio (1.2x) compared to the AU REITs industry average (1.1x).


Next Steps

Future Growth

How is Abacus Property Group forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ABP's earnings are forecast to decline over the next 3 years (-8.5% per year).

Earnings vs Market: ABP's earnings are forecast to decline over the next 3 years (-8.5% per year).

High Growth Earnings: ABP's earnings are forecast to decline over the next 3 years.

Revenue vs Market: ABP's revenue is expected to decline over the next 3 years (-3.8% per year).

High Growth Revenue: ABP's revenue is forecast to decline over the next 3 years (-3.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: ABP's Return on Equity is forecast to be low in 3 years time (6.4%).


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

Earnings Trend: ABP's earnings have grown by 15.8% 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 (-16.3%) over the past year, making it difficult to compare to the REITs industry average (-16.3%).


Return on Equity

High ROE: ABP's Return on Equity (9.8%) is considered low.


Return on Assets

ROA vs Industry: ABP has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

ROCE Improving: ABP's Return on Capital Employed has declined over the past 3 years.


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?

4.68%

Current Dividend Yield


Dividend Yield vs Market

company4.7%marketbottom25%2.5%markettop25%5.6%industryaverage4.4%forecastin3Years4.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: ABP's dividend (4.68%) is higher than the bottom 25% of dividend payers in the Australian market (2.45%).

High Dividend: ABP's dividend (4.68%) is low compared to the top 25% of dividend payers in the Australian market (5.56%).

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 (80.7%), 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

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

1.5yrs

Average management tenure


CEO

Steven Sewell (53yo)

1.5yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Australian market.

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


Management Age and Tenure

1.5yrs

Average Tenure

Experienced Management: ABP's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.


Board Age and Tenure

0.2yrs

Average Tenure

Experienced Board: ABP's board of directors are not considered experienced ( 0.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: ABP insiders have bought more shares than they have sold 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

Ownership Breakdown


Management Team

  • Cameron Laird

    Director of Property Developments

    • Tenure: 11.7yrs
    • 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: 1.2yrs
  • Steven Sewell (53yo)

    MD & Director

    • Tenure: 1.5yrs
    • Compensation: AU$1.96m
  • Rob Baulderstone

    CFO & Company Secretary

    • Tenure: 6.9yrs
    • Compensation: AU$1.05m
  • Gavin Lechem

    Executive General Manager of Corporate Development

    • Tenure: 1.2yrs
  • Phil Peterson

    Director of Self-Storage

    • Tenure: 0yrs
  • Lisa-Anne Carey

    Head of Legal

    • Tenure: 1.5yrs
  • 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

    Non-Executive Director

    • Tenure: 0.08yrs
  • Steven Sewell (53yo)

    MD & Director

    • Tenure: 1.5yrs
    • Compensation: AU$1.96m
  • Jingmin Qian

    Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: AU$130.20k
  • Myra Salkinder

    Chairman

    • Tenure: 0.08yrs
    • Compensation: AU$126.00k
  • Mark Haberlin

    Lead Independent Director

    • Tenure: 0.2yrs
    • 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$2.568b
  • 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 Analysis2019/10/18 10:33
End of Day Share Price2019/10/18 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.