ASX:VTH

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Vitalharvest Freehold Trust

Executive Summary

Vitalharvest owns the largest aggregation of berry and citrus farms in Australia.


Snowflake Analysis

Good value unattractive dividend payer.

Share Price & News

How has Vitalharvest Freehold Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-3.8%

VTH

-4.9%

AU REITs

-2.0%

AU Market


1 Year Return

-18.5%

VTH

-25.7%

AU REITs

-12.3%

AU Market

Return vs Industry: VTH exceeded the Australian REITs industry which returned -25.7% over the past year.

Return vs Market: VTH underperformed the Australian Market which returned -12.3% over the past year.


Shareholder returns

VTHIndustryMarket
7 Day-3.8%-4.9%-2.0%
30 Day-6.3%-7.8%-3.6%
90 Day7.1%4.6%11.9%
1 Year-13.0%-18.5%-22.5%-25.7%-8.7%-12.3%
3 Yearn/a12.2%-3.3%14.9%-0.4%
5 Yearn/a28.2%-0.3%28.3%0.6%

Price Volatility Vs. Market

How volatile is Vitalharvest Freehold Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Vitalharvest Freehold Trust undervalued compared to its fair value and its price relative to the market?

47.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: VTH (A$0.75) is trading below our estimate of fair value (A$1.44)

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


Price To Earnings Ratio

PE vs Industry: VTH is good value based on its PE Ratio (8x) compared to the AU REITs industry average (10.4x).

PE vs Market: VTH is good value based on its PE Ratio (8x) compared to the Australian market (15.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: VTH's PB Ratio (0.8x) is in line with the AU REITs industry average.


Next Steps

Future Growth

How is Vitalharvest Freehold Trust forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-28.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: VTH's earnings are forecast to decline over the next 3 years (-28.5% per year).

Earnings vs Market: VTH's earnings are forecast to decline over the next 3 years (-28.5% per year).

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

Revenue vs Market: VTH's revenue (10% per year) is forecast to grow faster than the Australian market (4.3% per year).

High Growth Revenue: VTH's revenue (10% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: VTH's Return on Equity is forecast to be low in 3 years time (6.2%).


Next Steps

Past Performance

How has Vitalharvest Freehold Trust performed over the past 5 years?

-0.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: VTH has a large one-off gain of A$22.4M impacting its December 31 2019 financial results.

Growing Profit Margin: VTH became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: VTH's earnings have declined by -0.1% per year over the past 5 years.

Accelerating Growth: VTH has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: VTH has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (3.3%).


Return on Equity

High ROE: VTH's Return on Equity (9.9%) is considered low.


Next Steps

Financial Health

How is Vitalharvest Freehold Trust's financial position?


Financial Position Analysis

Short Term Liabilities: VTH's short term assets (A$7.0M) exceed its short term liabilities (A$3.1M).

Long Term Liabilities: VTH's short term assets (A$7.0M) do not cover its long term liabilities (A$103.2M).


Debt to Equity History and Analysis

Debt Level: VTH's debt to equity ratio (59.3%) is considered high.

Reducing Debt: Insufficient data to determine if VTH's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: VTH's debt is not well covered by operating cash flow (15.8%).

Interest Coverage: VTH's interest payments on its debt are not well covered by EBIT (0.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Vitalharvest Freehold Trust current dividend yield, its reliability and sustainability?

6.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: VTH's dividend (6.33%) is higher than the bottom 25% of dividend payers in the Australian market (2.53%).

High Dividend: VTH's dividend (6.33%) is low compared to the top 25% of dividend payers in the Australian market (6.54%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether VTH's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if VTH's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (121.6%), VTH's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: VTH's dividends in 3 years are forecast to be covered by earnings (86.7% payout ratio).


Next Steps

Management

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

0.08yrs

Average management tenure


CEO

David Schwartz (66yo)

0.083

Tenure

Mr. David Jacob Schwartz serves as the Executive Chairman of Pascoe’s Pty Limited, ToLife Technologies Pty Limited, Stefani Pure Water Australasia Pty Limited and Loftus Capital Partners Limited. He serves ...


Leadership Team

NamePositionTenureCompensationOwnership
John Bond
Executive Chairman0.083yrno datano data
David Schwartz
Managing Director0.083yrno datano data
David Creasy
CFO & Company Secretary0.083yrno datano data
Julian Lodge
Chief Investment Officer0.083yrno datano data
Glenn Foster
Executive Director of the Trust Company (RE Services) Limited5yrsno datano data
Vicki Riggio
Executive Director of the Trust Company (RE Services) Limited2.25yrsno datano data
Richard McCarthy
Executive Director of the Trust Company (RE Services) Limited1.75yrsno datano data
James Litis
Executive Director0.083yrno datano data
Adam O'Donoghue
Head of Asset Management0.083yrno datano data
Eleanor Padman
Company Secretary of Trust Company (RE Services) Limitedno datano datano data

0.08yrs

Average Tenure

66yo

Average Age

Experienced Management: VTH's management team is not considered experienced ( 0.1 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
John Bond
Executive Chairman0.083yrno datano data
Glenn Foster
Executive Director of the Trust Company (RE Services) Limited5yrsno datano data
Vicki Riggio
Executive Director of the Trust Company (RE Services) Limited2.25yrsno datano data
Richard McCarthy
Executive Director of the Trust Company (RE Services) Limited1.75yrsno datano data
James Litis
Executive Director0.083yrno datano data
Phillip Blackmore
Alternate Director of the Trust Company (RE Services) Limited2yrsno datano data
Simone Mosse
Director of The Trust Company (RE Services) Limited0.83yrno datano data

1.8yrs

Average Tenure

Experienced Board: VTH's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Vitalharvest Freehold Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Vitalharvest Freehold Trust
  • Ticker: VTH
  • Exchange: ASX
  • Founded:
  • Industry: Specialized REITs
  • Sector: Real Estate
  • Market Cap: AU$138.750m
  • Shares outstanding: 185.00m
  • Website: https://www.vitalharvest.com.au

Location

  • Vitalharvest Freehold Trust
  • 89 Cubitt Street
  • Cremorne
  • Victoria
  • 3121
  • Australia

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
VTHASX (Australian Securities Exchange)YesTrust UnitsAUAUDAug 2018
VTHCHIA (Chi-X Australia)YesTrust UnitsAUAUDAug 2018

Biography

Vitalharvest owns the largest aggregation of berry and citrus farms in Australia. These are located in prime growing locations in New South Wales, South Australia and Tasmania and are leased to Costa Group (ASX:CGC). Vitalharvest provides investors with exposure to agricultural property assets whose earnings profile and underlying value are exposed to the growing global agricultural demand for healthy, nutritious food. These assets provide agricultural diversification by way of crop type, climatic region, water source and product end markets. Vitalharvest is an agricultural real estate investment trust managed by goFARM Asset Management (ACN 625 505 455) AR No. 001264243. The Trust Company (RE Services) Limited (ABN 45 003 278 831) (Responsible Entity), part of Perpetual Limited (ASX:PPT), is the responsible entity for the Vitalharvest Freehold Trust ARSN 626 537 362. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/11 10:36
End of Day Share Price2020/07/10 00:00
Earnings2019/12/31
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.