ASX:IAP

Stock Analysis Report

Investec Australia Property Fund

Executive Summary

Investec Australia Property Fund is an Australian domiciled fund that is dual listed on the JSE and the ASX.


Snowflake Analysis

Undervalued with concerning outlook.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

2.9%

IAP

-0.2%

AU REITs

1.1%

AU Market


1 Year Return

n/a

IAP

-30.2%

AU REITs

-18.9%

AU Market

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

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


Shareholder returns

IAPIndustryMarket
7 Day2.9%-0.2%1.1%
30 Dayn/a-33.8%-20.8%
90 Dayn/a-33.1%-25.0%
1 Yearn/a-26.9%-30.2%-15.2%-18.9%
3 Yearn/a-8.8%-21.8%-2.6%-16.0%
5 Yearn/a17.4%-8.7%7.9%-16.4%

Price Volatility Vs. Market

How volatile is Investec Australia 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 Investec Australia Property Fund undervalued compared to its fair value and its price relative to the market?

29.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IAP (A$1.44) is trading below our estimate of fair value (A$2.05)

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


Price To Earnings Ratio

PE vs Industry: IAP is good value based on its PE Ratio (13x) compared to the REITs industry average (15.8x).

PE vs Market: IAP is good value based on its PE Ratio (13x) compared to the Australian market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate IAP's PEG Ratio to determine if it is good value.


Price to Book Ratio

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


Next Steps

Future Growth

How is Investec Australia Property Fund forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IAP's forecast earnings growth (6.4% per year) is above the savings rate (2.3%).

Earnings vs Market: IAP's earnings (6.4% per year) are forecast to grow slower than the Australian market (9.6% per year).

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

Revenue vs Market: Insufficient data to determine if IAP's revenue is forecast to grow faster than the Australian market.

High Growth Revenue: Insufficient data to determine if IAP's revenue is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if IAP's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Investec Australia Property Fund performed over the past 5 years?

36.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IAP has a large one-off gain of A$15.2M impacting its March 31 2019 financial results.

Growing Profit Margin: IAP's current net profit margins (59.3%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: IAP's earnings have grown significantly by 36% per year over the past 5 years.

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

Earnings vs Industry: IAP had negative earnings growth (-50.9%) over the past year, making it difficult to compare to the REITs industry average (-16.4%).


Return on Equity

High ROE: IAP's Return on Equity (8.5%) is considered low.


Next Steps

Financial Health

How is Investec Australia 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: IAP has a high level of physical assets or inventory.

Debt Coverage by Assets: IAP's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Investec Australia Property Fund's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate IAP's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate IAP's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if IAP's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IAP's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of IAP's dividend in 3 years as they are not forecast to pay a notable one for the Australian market.


Next Steps

Management

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

5.4yrs

Average board tenure


CEO

Graeme Katz (53yo)

no data

Tenure

AU$155,000

Compensation

Mr. Graeme Katz serves as Chief Executive Officer of Investec Property Limited, the responsible entity of Investec Australia Property Fund Limited and has been its Executive Director since March 31, 2009.  ...


CEO Compensation Analysis

Compensation vs Market: Graeme's total compensation ($USD106.49K) is below average for companies of similar size in the Australian market ($USD2.84M).

Compensation vs Earnings: Graeme's compensation has been consistent with company performance over the past year.


Board Members

NamePositionTenureCompensationOwnership
Graeme Katz
CEO & Executive Director of Investec Property Limitedno dataAU$155.00kno data
Stephen Koseff
Non-Executive Director of Investec Property Limited4.92yrsAU$13.00kno data
Richard Longes
Chairman of Investec Property Limitedno dataAU$37.00kno data
Samuel Leon
Non-Executive Director of Investec Property Limited5.92yrsAU$19.00kno data
Sally Herman
Lead Independent Non-Executive Director of Investec Property Limitedno dataAU$56.00kno data
Hugh Martin
Independent Non-Executive Director of Investec Property Limited4.75yrsAU$45.00kno data

5.4yrs

Average Tenure

67yo

Average Age

Experienced Board: IAP's board of directors are considered experienced (5.4 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: IAP only recently listed within the past 12 months.


Top Shareholders

Company Information

Investec Australia Property Fund's company bio, employee growth, exchange listings and data sources


Key Information


Location

  • Investec Australia Property Fund
  • The Chifley Tower
  • 2 Chifley Square
  • Sydney
  • New South Wales
  • 2000
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IAPASX (Australian Securities Exchange)NPVAUAUDMay 2019
IAPCHIA (Chi-X Australia)NPVAUAUDMay 2019
IAPJSE (The Johannesburg Securities Exchange)NPVZAZARMay 2019

Biography

IAPF is an Australian domiciled fund that is listed on the JSE. The Fund invests in office, industrial and retail property located in Australia and New Zealand. The Fund is managed by an experienced team of entrepreneurial property specialists on the ground in Australia who have an established track record of managing third party property funds. The Fund’s portfolio is geographically and sectorally diversified with quality tenants underpinning known rental income. IAPF is operated by Investec Property Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/20 10:39
End of Day Share Price2019/06/20 00:00
Earnings2019/03/31
Annual Earnings2019/03/31


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.