ASX:CMA

Stock Analysis Report

Centuria Metropolitan REIT

Executive Summary

CMA is Australia’s largest ASX listed pure play office REIT and is included in the S&P/ASX300 Index.

Rewards

PE ratio (17.9x) is below the Australian market (18.5x)

Earnings are forecast to grow 21.75% per year

Risk Analysis

Unstable dividend track record

Profit margins (49.1%) are lower than last year

Shareholders have been diluted in the past year



Snowflake Analysis

Reasonable growth potential average dividend payer.


Similar Companies

Share Price & News

How has Centuria Metropolitan REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CMA has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-8.2%

CMA

-4.0%

AU REITs

0.5%

AU Market


1 Year Return

22.7%

CMA

11.8%

AU REITs

19.0%

AU Market

Return vs Industry: CMA exceeded the Australian REITs industry which returned 11.8% over the past year.

Return vs Market: CMA exceeded the Australian Market which returned 19% over the past year.


Shareholder returns

CMAIndustryMarket
7 Day-8.2%-4.0%0.5%
30 Day-4.9%-2.3%0.2%
90 Day-3.9%-1.7%0.4%
1 Year31.5%22.7%17.4%11.8%24.9%19.0%
3 Year73.2%36.4%43.9%23.1%37.0%18.2%
5 Year106.0%38.4%87.0%44.9%58.6%22.8%

Price Volatility Vs. Market

How volatile is Centuria Metropolitan REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Centuria Metropolitan REIT undervalued compared to its fair value and its price relative to the market?

17.86x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CMA (A$2.92) is trading above our estimate of fair value (A$2.89)

Significantly Below Fair Value: CMA is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CMA is poor value based on its PE Ratio (17.9x) compared to the REITs industry average (15.2x).

PE vs Market: CMA is good value based on its PE Ratio (17.9x) compared to the Australian market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: CMA is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

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


Next Steps

Future Growth

How is Centuria Metropolitan REIT forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

21.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMA's forecast earnings growth (21.8% per year) is above the savings rate (1.1%).

Earnings vs Market: CMA's earnings (21.8% per year) are forecast to grow faster than the Australian market (9.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CMA's revenue (11% per year) is forecast to grow faster than the Australian market (3.5% per year).

High Growth Revenue: CMA's revenue (11% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CMA's Return on Equity is forecast to be low in 3 years time (7%).


Next Steps

Past Performance

How has Centuria Metropolitan REIT performed over the past 5 years?

43.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMA has high quality earnings.

Growing Profit Margin: CMA's current net profit margins (49.1%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: CMA's earnings have grown significantly by 43.6% per year over the past 5 years.

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

Earnings vs Industry: CMA had negative earnings growth (-37%) over the past year, making it difficult to compare to the REITs industry average (-16.4%).


Return on Equity

High ROE: CMA's Return on Equity (6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Centuria Metropolitan REIT'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: CMA has a high level of physical assets or inventory.

Debt Coverage by Assets: CMA's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Centuria Metropolitan REIT's current dividend yield, its reliability and sustainability?

5.97%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Centuria Metropolitan REIT before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company6.0%marketbottom25%2.4%markettop25%5.6%industryaverage4.6%forecastin3Years6.2%

Current dividend yield vs market & industry

Notable Dividend: CMA's dividend (5.97%) is higher than the bottom 25% of dividend payers in the Australian market (2.41%).

High Dividend: CMA's dividend (5.97%) is in the top 25% of dividend payers in the Australian market (5.6%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CMA has been paying a dividend for less than 10 years.

Growing Dividend: CMA's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86.6%), CMA's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CMA's dividends in 3 years are forecast to be covered by earnings (92.4% payout ratio).


Next Steps

Management

What is the CEO of Centuria Metropolitan REIT's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Centuria Metropolitan REIT has no CEO, or we have no data on them.


Management Age and Tenure

1.4yrs

Average Tenure

Experienced Management: CMA's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Age and Tenure

4.0yrs

Average Tenure

Experienced Board: CMA's board of directors are considered experienced (4 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyAU$29,999,99415 Nov 19
Centuria Property Funds Limited
EntityCompany
Shares10,489,511
Max PriceAU$2.86
BuyAU$30,00007 Nov 19
Roger Dobson
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director of Centuria Property Funds Limited
Shares10,000
Max PriceAU$3.00
BuyAU$8,40321 Oct 19
Matthew Hardy
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director of Centuria Property Funds Limited
Shares2,938
Max PriceAU$2.86
BuyAU$12,87021 Oct 19
Darren Collins
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director of Centuria Property Fund Limited
Shares4,500
Max PriceAU$2.86
BuyAU$35,31521 Oct 19
Roger Dobson
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director of Centuria Property Funds Limited
Shares12,348
Max PriceAU$2.86
BuyAU$36,89421 Oct 19
Kerco Pty Limited
EntityCompany
Shares12,900
Max PriceAU$2.86
BuyAU$13,523,47924 Sep 19
The Vanguard Group, Inc.
EntityCompany
Shares4,522,902
Max PriceAU$2.99
SellAU$78,57124 Sep 19
The Vanguard Group, Inc.
EntityCompany
Shares26,278
Max PriceAU$2.99
SellAU$939,62923 Sep 19
The Vanguard Group, Inc.
EntityCompany
Shares314,909
Max PriceAU$2.98
BuyAU$5,687,85923 Sep 19
The Vanguard Group, Inc.
EntityCompany
Shares1,871,006
Max PriceAU$3.04

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 44%.


Management Team

  • Victor Georos

    Head of Portfolio & Asset Management

    • Tenure: 0yrs
  • Michael Blake

    Head of Centuria Life

    • Tenure: 1.9yrs
  • Simon Holt

    Chief Financial Officer

    • Tenure: 0yrs
  • Ross Lees

    Head of Funds Management

    • Tenure: 0.5yrs
  • Anna Kovarik

    Company Secretary & General Counsel of Centuria Property Funds Limited

    • Tenure: 1.4yrs
  • Tim Mitchell

    Group Head of Investor Relations

    • Tenure: 0yrs

Board Members

  • Nick Collishaw (58yo)

    Independent Non-Executive Director of Centuria Property Funds Limited

    • Tenure: 2.2yrs
  • John Collins (50yo)

    Independent Non-Executive Director of Centuria Property Fund Limited

    • Tenure: 4.8yrs
  • Peter Done

    Non-Executive Chairman of Centuria Property Funds Limited

    • Tenure: 4yrs
  • Roger Dobson

    Independent Non-Executive Director of Centuria Property Funds Limited

    • Tenure: 2.2yrs
  • Matthew Hardy

    Independent Non-Executive Director of Centuria Property Funds Limited

    • Tenure: 6.4yrs

Company Information

Centuria Metropolitan REIT's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Centuria Metropolitan REIT
  • Ticker: CMA
  • Exchange: ASX
  • Founded: 2014
  • Industry: Office REITs
  • Sector: Real Estate
  • Market Cap: AU$1.319b
  • Shares outstanding: 451.57m
  • Website: https://www.centuria.com.au

Location

  • Centuria Metropolitan REIT
  • Chifley Tower
  • Level 41
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMAASX (Australian Securities Exchange)YesStapled SecuritiesAUAUDDec 2014
CMACHIA (Chi-X Australia)YesStapled SecuritiesAUAUDDec 2014

Biography

CMA is Australia’s largest ASX listed pure play office REIT and is included in the S&P/ASX300 Index. CMA owns a portfolio of high quality metropolitan office assets situated in core metropolitan submarkets ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/13 10:40
End of Day Share Price2019/12/13 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.