ENXTBR:RET

Stock Analysis Report

Executive Summary

Retail Estates nv is a public regulated real estate company and more specifically a niche company that specialises in investing in out-of-town retail properties which are located on the periphery of residential areas or along main access roads into urban centres.

Rewards

Trading at 2.4% below its fair value

Revenue is forecast to grow 7.51% per year

Pays a high and reliable dividend of 5.02%

Risk Analysis

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Established dividend payer and overvalued.


Similar Companies

Share Price & News

How has Retail Estates's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.4%

RET

0.2%

BE REITs

0.6%

BE Market


1 Year Return

15.4%

RET

29.7%

BE REITs

14.6%

BE Market

Return vs Industry: RET underperformed the Belgian REITs industry which returned 29.7% over the past year.

Return vs Market: RET matched the Belgian Market which returned 14.6% over the past year.


Shareholder returns

RETIndustryMarket
7 Day-2.4%0.2%0.6%
30 Day-4.2%-1.3%0.2%
90 Day1.3%2.7%-3.5%
1 Year19.7%15.4%34.6%29.7%16.9%14.6%
3 Year30.2%16.2%59.6%39.5%0.02%-6.6%
5 Year56.6%27.7%94.0%56.5%21.0%6.8%

Price Volatility Vs. Market

How volatile is Retail Estates's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Retail Estates undervalued compared to its fair value and its price relative to the market?

2.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RET (€84.6) is trading below our estimate of fair value (€86.65)

Significantly Below Fair Value: RET is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: RET is poor value based on its PE Ratio (20.4x) compared to the REITs industry average (16.8x).

PE vs Market: RET is poor value based on its PE Ratio (20.4x) compared to the Belgian market (16.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RET is overvalued based on its PB Ratio (1.4x) compared to the BE REITs industry average (1.4x).


Next Steps

Future Growth

How is Retail Estates forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

7.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if RET's forecast earnings growth is above the savings rate (0.7%).

Earnings vs Market: Insufficient data to determine if RET's earnings are forecast to grow faster than the Belgian market

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

Revenue vs Market: RET's revenue (7.5% per year) is forecast to grow faster than the Belgian market (4.2% per year).

High Growth Revenue: RET's revenue (7.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Retail Estates performed over the past 5 years?

9.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RET has a large one-off loss of €17.6M impacting its September 30 2019 financial results.

Growing Profit Margin: RET's current net profit margins (48.6%) are lower than last year (58.4%).


Past Earnings Growth Analysis

Earnings Trend: RET's earnings have grown by 9.6% per year over the past 5 years.

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

Earnings vs Industry: RET had negative earnings growth (-3.7%) over the past year, making it difficult to compare to the REITs industry average (13.6%).


Return on Equity

High ROE: RET's Return on Equity (6.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Retail Estates'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: RET has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Retail Estates's current dividend yield, its reliability and sustainability?

5.02%

Current Dividend Yield


Dividend Yield vs Market

company5.0%marketbottom25%2.1%markettop25%4.5%industryaverage3.8%forecastin3Years5.1%

Current dividend yield vs market & industry

Notable Dividend: RET's dividend (5.02%) is higher than the bottom 25% of dividend payers in the Belgian market (2.12%).

High Dividend: RET's dividend (5.02%) is in the top 25% of dividend payers in the Belgian market (4.49%)


Stability and Growth of Payments

Stable Dividend: RET's dividends per share have been stable in the past 10 years.

Growing Dividend: RET's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.5%), RET's dividend payments are 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

What is the CEO of Retail Estates's salary, the management and board of directors tenure and is there insider trading?

11.4yrs

Average management tenure


CEO

Jan De Nys (60yo)

21.9yrs

Tenure

€319,000

Compensation

Mr. Jan De Nys is Managing Director and Chief Executive Officer of Retail Estates N.V. since 1998 and serves as its Director. Most important other positions:- Director at Orelio nv (Maes/Alides Constru ...


CEO Compensation Analysis

Compensation vs Market: Jan's total compensation ($USD353.93K) is below average for companies of similar size in the Belgian market ($USD576.78K).

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


Management Age and Tenure

11.4yrs

Average Tenure

60yo

Average Age

Experienced Management: RET's management team is seasoned and experienced (11.4 years average tenure).


Board Age and Tenure

3.9yrs

Average Tenure

58.5yo

Average Age

Experienced Board: RET's board of directors are considered experienced (3.9 years average tenure).


Insider Trading

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 14.7%.


Management Team

  • Jan De Nys (60yo)

    MD, CEO & Director

    • Tenure: 21.9yrs
    • Compensation: €319.00k
  • Paul Borghgraef (65yo)

    Chairman & Compliance Officer

    • Tenure: 3.9yrs
    • Compensation: €60.00k
  • Kara De Smet (43yo)

    CFO & Executive Director

    • Tenure: 3.9yrs
  • Wilfried Van Laethem

    Financial Controller

    • Tenure: 0yrs
  • Sara Hautier

    Accounting Manager

    • Tenure: 0yrs
  • Bernadette Rossel

    Senior Property Manager

    • Tenure: 14.9yrs
  • Tom Ooms

    Construction & Technical Manager

    • Tenure: 8.8yrs
  • Kevin Tirmarche

    Property Manager

    • Tenure: 7.7yrs
  • Koenraad Van Nieuwenburg

    Chief Investment Officer

    • Tenure: 0yrs
  • Runa Eeckt

    Chief Legal Officer

    • Tenure: 0.9yrs

Board Members

  • Jan De Nys (60yo)

    MD, CEO & Director

    • Tenure: 21.9yrs
    • Compensation: €319.00k
  • Paul Borghgraef (65yo)

    Chairman & Compliance Officer

    • Tenure: 3.9yrs
    • Compensation: €60.00k
  • Vic Ragoen (64yo)

    Non-Executive Director

    • Tenure: 15.1yrs
    • Compensation: €18.00k
  • Christophe Demain (53yo)

    Non-Executive Director

    • Tenure: 6.5yrs
    • Compensation: €13.50k
  • Kara De Smet (43yo)

    CFO & Executive Director

    • Tenure: 3.9yrs
  • Leen Van den Neste (53yo)

    Independent Director

    • Tenure: 3.9yrs
    • Compensation: €21.00k
  • Jean Sterbelle (57yo)

    Non-Executive Director

    • Tenure: 6.7yrs
    • Compensation: €15.00k
  • René Annaert (67yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: €19.50k
  • Herlinda Wouters (61yo)

    Non-Executive Director

    • Tenure: 3.9yrs
    • Compensation: €15.00k
  • Ann Gaeremynck (53yo)

    Independent Director

    • Tenure: 2.7yrs
    • Compensation: €22.50k

Company Information

Retail Estates N.V.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Retail Estates N.V.
  • Ticker: RET
  • Exchange: ENXTBR
  • Founded: 1988
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: €1.069b
  • Shares outstanding: 12.63m
  • Website: https://www.retailestates.com

Number of Employees


Location

  • Retail Estates N.V.
  • Industrielaan 6
  • B-1740 Ternat
  • Brussels
  • Brussels
  • 1000
  • Belgium

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
R6NDB (Deutsche Boerse AG)YesOrdinary SharesDEEURDec 2004
RETENXTBR (Euronext Brussels)YesOrdinary SharesBEEURDec 2004
0FSOLSE (London Stock Exchange)YesOrdinary SharesGBEURDec 2004
RETBBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBEURDec 2004

Biography

Retail Estates nv is a public regulated real estate company and more specifically a niche company that specialises in investing in out-of-town retail properties which are located on the periphery of reside ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 21:17
End of Day Share Price2019/12/10 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.