ASX:GDFDA

Stock Analysis Report

Garda Diversified Property Fund

Executive Summary

Garda Diversified Property Fund is a real estate investment trust externally managed by Garda Capital Group.


Snowflake Analysis

Undervalued second-rate dividend payer.

Share Price & News

How has Garda Diversified Property Fund's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0.7%

GDFDA

13.2%

AU REITs

13.4%

AU Market


1 Year Return

n/a

GDFDA

-34.6%

AU REITs

-18.8%

AU Market

Return vs Industry: Insufficient data to determine how GDFDA performed against the Australian REITs industry.

Return vs Market: Insufficient data to determine how GDFDA performed against the Australian Market.


Shareholder returns

GDFDAIndustryMarket
7 Day0.7%13.2%13.4%
30 Dayn/a-36.5%-20.7%
90 Dayn/a-35.8%-24.4%
1 Yearn/a-31.7%-34.6%-15.2%-18.8%
3 Yearn/a-12.8%-25.2%-2.8%-15.9%
5 Yearn/a12.2%-12.7%9.3%-15.3%

Price Volatility Vs. Market

How volatile is Garda Diversified Property Fund's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Garda Diversified Property Fund undervalued compared to its fair value and its price relative to the market?

31.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GDFDA (A$1.4) is trading below our estimate of fair value (A$2.02)

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


Price To Earnings Ratio

PE vs Industry: GDFDA is good value based on its PE Ratio (7.4x) compared to the REITs industry average (15.8x).

PE vs Market: GDFDA is good value based on its PE Ratio (7.4x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GDFDA is good value based on its PB Ratio (1x) compared to the AU REITs industry average (1.2x).


Next Steps

Future Growth

How is Garda Diversified Property Fund forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-3.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GDFDA's earnings are forecast to decline over the next 3 years (-3.2% per year).

Earnings vs Market: GDFDA's earnings are forecast to decline over the next 3 years (-3.2% per year).

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

Revenue vs Market: GDFDA's revenue is expected to decline over the next 3 years (-8% per year).

High Growth Revenue: GDFDA's revenue is forecast to decline over the next 3 years (-8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GDFDA's Return on Equity is forecast to be low in 3 years time (6.9%).


Next Steps

Past Performance

How has Garda Diversified Property Fund performed over the past 5 years?

53.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GDFDA has a large one-off gain of A$10.5M impacting its June 30 2019 financial results.

Growing Profit Margin: GDFDA's current net profit margins (86%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: GDFDA has become profitable over the past 5 years, growing earnings by 53.3% per year.

Accelerating Growth: GDFDA's earnings growth over the past year (19.1%) is below its 5-year average (53.3% per year).

Earnings vs Industry: GDFDA earnings growth over the past year (19.1%) exceeded the REITs industry -16.4%.


Return on Equity

High ROE: GDFDA's Return on Equity (13.3%) is considered low.


Next Steps

Financial Health

How is Garda Diversified Property Fund'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: GDFDA has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Garda Diversified Property Fund's current dividend yield, its reliability and sustainability?

6.43%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GDFDA's dividend (6.43%) is higher than the bottom 25% of dividend payers in the Australian market (2.34%).

High Dividend: GDFDA's dividend (6.43%) is in the top 25% of dividend payers in the Australian market (5.47%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (101.3%), GDFDA's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GDFDA's dividends in 3 years are forecast to be thoroughly covered by earnings (0.6% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Matthew Madsen (46yo)

8.25s

Tenure

Mr. Matthew Madsen, DipFin DipFinMrkt MAICD, has been Executive Chairman of GARDA Capital Limited, a Manager of Garda Diversified Property Fund since January 31, 2017. He serves as Managing Director of GAR ...


Leadership Team

NamePositionTenureCompensationOwnership
Matthew Madsen
Executive Chairman & MD of Garda Capital Limited8.25yrsno data0.079% A$208.6k
David Addis
Chief Operating Officer0.75yrno datano data
Paul Brown
Manager of Investor Relations - Garda Capital Groupno datano datano data
Lachlan Davidson
General Counsel & Company Secretary of Garda Capital Limited5.92yrsno datano data
Matthew Burrows
Head of Property - Garda Capital Group2.5yrsno datano data
Ikram Patel
Financial Controller0.33yrno datano data
Christian Seymour
Senior Project Manager of Garda Capital Groupno datano datano data
Paul Lohr
Asset Manager of Garda Capital Group2.75yrsno datano data

2.6yrs

Average Tenure

Experienced Management: GDFDA's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Matthew Madsen
Executive Chairman & MD of Garda Capital Limited8.25yrsno data0.079% A$208.6k
Morgan Parker
Independent Director of Garda Capital Limited1yrno datano data
Mark Hallett
Non-Executive Director of Garda Capital Limited8.92yrsno data0.026% A$69.4k
Philip Lee
Non-Executive Director of Garda Capital Limited4.58yrsno data0.033% A$87.8k

3.8yrs

Average Tenure

Experienced Board: GDFDA's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 18.3%.


Top Shareholders

Company Information

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


Key Information


Location

  • Garda Property Group
  • 12 Creek Street
  • Level 21
  • Brisbane
  • Queensland
  • 4000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GDFASX (Australian Securities Exchange)YesOrdinary UnitsAUAUDJul 2015
GDFDAASX (Australian Securities Exchange)NPV DFD 29/11/19(EX-SCHEME)AUAUDNov 2019

Biography

Garda Diversified Property Fund is a real estate investment trust externally managed by Garda Capital Group. It invests in real estate markets of Australia. The fund intends to invest in commercial offices in city and suburban markets as well as industrial facilities along the eastern seaboard of Australia. Garda Diversified Property is domiciled in Australia. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/02 10:49
End of Day Share Price2019/11/29 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.