ENXTBR:RET

Stock Analysis Report

Executive Summary

The Belgian public real estate investment trust Retail Estates nv is a niche player specialised in making in out-of-town retail properties located on the periphery of residential areas or along main access roads to urban centres available to users.


Snowflake Analysis

Undervalued established dividend payer.


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


Market Performance


7 Day Return

1.6%

RET

2.9%

BE REITs

-1.1%

BE Market


1 Year Return

-46.1%

RET

-5.6%

BE REITs

-28.1%

BE Market

Return vs Industry: RET underperformed the Belgian REITs industry which returned -5.6% over the past year.

Return vs Market: RET underperformed the Belgian Market which returned -28.1% over the past year.


Shareholder returns

RETIndustryMarket
7 Day1.6%2.9%-1.1%
30 Day-41.2%-16.8%-16.8%
90 Day-46.8%-14.8%-30.1%
1 Year-44.1%-46.1%-2.7%-5.6%-26.7%-28.1%
3 Year-33.2%-40.4%28.9%13.4%-33.0%-37.5%
5 Year-25.9%-39.6%43.4%16.1%-34.1%-41.8%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: RET (€45.3) is trading below our estimate of fair value (€93)

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


Price To Earnings Ratio

PE vs Industry: RET is good value based on its PE Ratio (10.9x) compared to the REITs industry average (11.1x).

PE vs Market: RET is good value based on its PE Ratio (10.9x) compared to the Belgian market (13.1x).


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 good value based on its PB Ratio (0.8x) compared to the BE REITs industry average (1x).


Next Steps

Future Growth

How is Retail Estates forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

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 (1.7% 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 (17.2%).


Return on Equity

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


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?

9.38%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RET's dividend (9.38%) is higher than the bottom 25% of dividend payers in the Belgian market (2.74%).

High Dividend: RET's dividend (9.38%) is in the top 25% of dividend payers in the Belgian market (6.54%)


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

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

11.7yrs

Average management tenure


CEO

Jan De Neys (60yo)

22.25s

Tenure

€319,000

Compensation

Mr. Jan De Neys 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 Constr ...


CEO Compensation Analysis

Compensation vs Market: Jan's total compensation ($USD348.82K) is below average for companies of similar size in the Belgian market ($USD581.62K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Paul Borghgraef
Chairman & Compliance Officer4.25yrs€60.00kno data
Jan De Neys
MD, CEO & Director22.25yrs€319.00kno data
Kara De Smet
CFO & Executive Director4.25yrsno datano data
Koenraad Van Nieuwenburg
Chief Investment Officerno datano datano data
Sara Hautier
Accounting Managerno datano datano data
Thomas Ooms
Construction & Technical Manager9.17yrsno datano data
Runa Eeckt
Chief Legal Officer1.25yrsno datano data
Wilfried Van Laethem
Financial Controllerno datano datano data
Bernadette Rossel
Senior Property Manager15.25yrsno datano data
Kevin Tirmarche
Property Manager8yrsno datano data

11.7yrs

Average Tenure

60yo

Average Age

Experienced Management: RET's management team is seasoned and experienced (11.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Paul Borghgraef
Chairman & Compliance Officer4.25yrs€60.00kno data
Jan De Neys
MD, CEO & Director22.25yrs€319.00kno data
Kara De Smet
CFO & Executive Director4.25yrsno datano data
Victor Ragoen
Non-Executive Director15.42yrs€18.00kno data
Christophe Demain
Non-Executive Director6.83yrs€13.50kno data
Kathleen Van den Neste
Independent Director4.25yrs€21.00kno data
Jean Sterbelle
Non-Executive Director7yrs€15.00kno data
René Annaert
Independent Director4.75yrs€19.50kno data
Herlinda Wouters
Non-Executive Director4.25yrs€15.00kno data
Ann Gaeremynck
Independent Director3yrs€22.50kno data

4.3yrs

Average Tenure

58.5yo

Average Age

Experienced Board: RET's board of directors are considered experienced (4.3 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 14.7%.


Top Shareholders

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: €572.158m
  • 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

The Belgian public real estate investment trust Retail Estates nv is a niche player specialised in making in out-of-town retail properties located on the periphery of residential areas or along main access roads to urban centres available to users. Real Estates NV acquires these real properties from third parties or builds and commercialises retail buildings for its own account. The buildings have useful areas ranging between 500 m² and 3,000 m². A typical retail building has an average area of 1,000 m². As of 31 December 2019, Retail Estates nv has 970 premises in its portfolio with a total retail area of 1,122,499 m², spread over Belgium and the Netherlands. The occupancy rate of the portfolio was 97.98% on 31 December 2019, compared to 98.28% on 31 March 2019. The fair value of the consolidated real estate portfolio of Retail Estates NV as at 31 December 2019 is estimated at € 1,665.62 million by independent real estate experts. Retail Estates NV is listed on Euronext Brussels and Euronext Amsterdam and is registered as a public regulated real estate company. As at 31 December 2019, the stock market capitalisation of the shares amounts to € 1,059.69 million. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/02 22:00
End of Day Share Price2020/04/02 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.