CHIA: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

Good value with poor track record.

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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-0.7%

IAP

8.6%

AU REITs

7.1%

AU Market


1 Year Return

n/a

IAP

-31.7%

AU REITs

-19.4%

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 Day-0.7%8.6%7.1%
30 Day-27.5%-34.1%-21.3%
90 Day-30.0%-33.2%-24.8%
1 Yearn/a-28.5%-31.7%-15.8%-19.4%
3 Yearn/a-8.7%-21.7%-2.4%-15.8%
5 Yearn/a17.5%-8.6%8.4%-16.0%

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?

46.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IAP (A$1.04) is trading below our estimate of fair value (A$1.94)

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 (8.4x) compared to the REITs industry average (9.2x).

PE vs Market: IAP is good value based on its PE Ratio (8.4x) compared to the Australian market (13.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: IAP is overvalued based on its PB Ratio (0.8x) compared to the AU REITs industry average (0.8x).


Next Steps

Future Growth

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

-6.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IAP's earnings are forecast to decline over the next 3 years (-6.4% per year).

Earnings vs Market: IAP's earnings are forecast to decline over the next 3 years (-6.4% per year).

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

Revenue vs Market: IAP's revenue (2.5% per year) is forecast to grow slower than the Australian market (4% per year).

High Growth Revenue: IAP's revenue (2.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

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

25.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IAP has a large one-off gain of A$44.1M impacting its September 30 2019 financial results.

Growing Profit Margin: IAP's current net profit margins (71.5%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: IAP's earnings have grown significantly by 25.3% 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 (-24.2%) over the past year, making it difficult to compare to the REITs industry average (1.7%).


Return on Equity

High ROE: IAP's Return on Equity (9%) 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?

6.85%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IAP's dividend (6.85%) is higher than the bottom 25% of dividend payers in the Australian market (3.17%).

High Dividend: IAP's dividend (6.85%) is low compared to the top 25% of dividend payers in the Australian market (8.18%).


Stability and Growth of Payments

Stable Dividend: IAP has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: IAP's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (210.6%), IAP's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

5.8yrs

Average board tenure


CEO

Graeme Katz (54yo)

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 ($USD95.09K) is below average for companies of similar size in the Australian market ($USD805.56K).

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$155.00k0.037% A$252.5k
Stephen Koseff
Non-Executive Director of Investec Property Limited5.75yrsAU$13.00k0.16% A$1.1m
Richard Longes
Chairman of Investec Property Limitedno dataAU$37.00kno data
Samuel Leon
Non-Executive Director of Investec Property Limited6.75yrsAU$19.00k0.65% A$4.4m
Sally Herman
Lead Independent Non-Executive Director of Investec Property Limitedno dataAU$56.00kno data
Georgina Lynch
Independent Non-Executive Director of Investec Property Limited0.75yrno data0.011% A$74.3k
Hugh Martin
Independent Non-Executive Director of Investec Property Limited5.58yrsAU$45.00kno data

5.8yrs

Average Tenure

69yo

Average Age

Experienced Board: IAP's board of directors are considered experienced (5.8 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 6.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Investec Australia Property Fund
  • Ticker: IAP
  • Exchange: CHIA
  • Founded:
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: R7.418b
  • Listing Market Cap: R681.381m
  • Shares outstanding: 618.71m
  • Website: https://www.investec.com/en_au/property.html

Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IAPJSE (The Johannesburg Securities Exchange)YesLinked UnitsZAZAROct 2013
IAPASX (Australian Securities Exchange)YesLinked UnitsAUAUDOct 2013
IAPASX (Australian Securities Exchange)NPVAUAUDMay 2019
IAPCHIA (Chi-X Australia)NPVAUAUDMay 2019
IAPJSE (The Johannesburg Securities Exchange)NPVZAZARMay 2019

Biography

Investec Australia Property Fund is an Australian domiciled fund that is dual listed on the JSE and the ASX. The Fund invests in office, industrial and retail property located in Australia and New Zealand. The Fund is managed by an experienced team of property specialists on the ground in Australia who have an established track record. Investec Australia Property Fund 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 Analysis2020/04/01 10:46
End of Day Share Price2020/04/01 00:00
Earnings2019/09/30
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.