TSX:APR.UN

Stock Analysis Report

Automotive Properties Real Estate Investment Trust

Executive Summary

Automotive Properties REIT is an unincorporated, open-ended real estate investment trust focused on owning and acquiring primarily income-producing automotive dealership properties located in Canada.

Snowflake

Fundamentals

Second-rate dividend payer and slightly overvalued.

Share Price & News

How has Automotive Properties Real Estate Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.3%

TSX:APR.UN

0.7%

CA REITs

1.5%

CA Market


1 Year Return

-0.4%

TSX:APR.UN

9.9%

CA REITs

-2.3%

CA Market

APR.UN underperformed the REITs industry which returned 10.3% over the past year.

APR.UN outperformed the Market in Canada which returned -2% over the past year.


Share holder returns

APR.UNIndustryMarket
7 Day0.3%0.7%1.5%
30 Day-1.8%0.8%-0.2%
90 Day-2.7%0.4%0.3%
1 Year7.7%-0.4%16.2%9.9%1.0%-2.3%
3 Year28.6%2.4%32.1%11.0%22.7%11.7%
5 Yearn/a58.4%17.6%19.7%3.2%

Price Volatility Vs. Market

How volatile is Automotive Properties Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Automotive Properties Real Estate Investment Trust undervalued based on future cash flows and its price relative to the stock market?

45%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Automotive Properties Real Estate Investment Trust's share price is below the future cash flow value, and at a moderate discount (> 20%).

Automotive Properties Real Estate Investment Trust's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Automotive Properties Real Estate Investment Trust is overvalued based on earnings compared to the CA REITs industry average.

Automotive Properties Real Estate Investment Trust is overvalued based on earnings compared to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Automotive Properties Real Estate Investment Trust, we can't assess if its growth is good value.


Price Based on Value of Assets

Automotive Properties Real Estate Investment Trust is overvalued based on assets compared to the CA REITs industry average.


Next Steps

Future Growth

How is Automotive Properties Real Estate Investment Trust expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

11.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Automotive Properties Real Estate Investment Trust's revenue is expected to grow by 12.9% yearly, however this is not considered high growth (20% yearly).

Automotive Properties Real Estate Investment Trust's earnings are expected to grow by 11.2% yearly, however this is not considered high growth (20% yearly).

Automotive Properties Real Estate Investment Trust's revenue growth is expected to exceed the Canada market average.

Automotive Properties Real Estate Investment Trust's earnings growth is positive but not above the Canada market average.

Automotive Properties Real Estate Investment Trust's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Automotive Properties Real Estate Investment Trust will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has Automotive Properties Real Estate Investment Trust performed over the past 5 years?

28.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Automotive Properties Real Estate Investment Trust has delivered over 20% year on year earnings growth in the past 5 years.

Automotive Properties Real Estate Investment Trust's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Automotive Properties Real Estate Investment Trust's 1-year earnings growth is negative, it can't be compared to the CA REITs industry average.


Return on Equity

Automotive Properties Real Estate Investment Trust has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Automotive Properties Real Estate Investment Trust used its assets less efficiently than the CA REITs industry average last year based on Return on Assets.


Return on Capital Employed

Automotive Properties Real Estate Investment Trust's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Automotive Properties Real Estate Investment Trust's financial position?


Financial Position Analysis

Automotive Properties Real Estate Investment Trust's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Automotive Properties Real Estate Investment Trust's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Automotive Properties Real Estate Investment Trust's level of debt (194.5%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (333.7% vs 194.5% today).

Debt is not well covered by operating cash flow (9.1%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.8x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0x debt.


Next Steps

Dividend

What is Automotive Properties Real Estate Investment Trust's current dividend yield, its reliability and sustainability?

7.70%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Automotive Properties Real Estate Investment Trust's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.14%).

Automotive Properties Real Estate Investment Trust's dividend is above the markets top 25% of dividend payers in Canada (5.72%).

Whilst dividend payments have been stable, Automotive Properties Real Estate Investment Trust has been paying a dividend for less than 10 years.

Automotive Properties Real Estate Investment Trust has only been paying a dividend for 4 years, and since then there has been no growth.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of Automotive Properties Real Estate Investment Trust's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average board tenure


CEO

Milton Lamb (49yo)

3.9yrs

Tenure

CA$902,161

Compensation

Mr. Milton Donald Lamb has been Chief Executive Officer and President of Automotive Properties Real Estate Investment Trust since July 22, 2015. With over 25 years of experience in the Canadian commercial  ...


CEO Compensation Analysis

Milton's remuneration is about average for companies of similar size in Canada.

Milton's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

3.9yrs

Average Tenure

61yo

Average Age

The tenure for the Automotive Properties Real Estate Investment Trust board of directors is about average.


Insider Trading

No 3 month insider trading information.


Recent Insider Transactions

BuyCA$198,52308 Jan 19
Kapil Dilawri
EntityIndividual
Role
Chairman of the Board
Shares22,500
Max PriceCA$8.96
BuyCA$98,78025 Dec 18
John Morrison
EntityIndividual
Role
Lead Director
Shares11,000
Max PriceCA$8.98
BuyCA$22,50018 Dec 18
Milton Lamb
EntityIndividual
Role
President & CEO
Shares2,500
Max PriceCA$9.00
BuyCA$4,48018 Dec 18
Andrew Kalra
EntityIndividual
Role
CFO & Corporate Secretary
Shares500
Max PriceCA$8.96
BuyCA$119,98418 Dec 18
Stuart Lazier
EntityIndividual
Role
Member of the Board of Directors
Shares13,400
Max PriceCA$8.95
BuyCA$46,50017 Dec 18
James Matthews
EntityIndividual
Role
Member of the Board of Directors
Shares5,000
Max PriceCA$9.30
BuyCA$71,25013 Dec 18
Stuart Lazier
EntityIndividual
Role
Member of the Board of Directors
Shares7,500
Max PriceCA$9.50
BuyCA$47,79413 Dec 18
Louis Forbes
EntityIndividual
Role
Member of the Board of Directors
Shares5,000
Max PriceCA$9.57

Ownership Breakdown


Management Team

  • Milton Lamb (49yo)

    President & CEO

    • Tenure: 3.9yrs
    • Compensation: CA$902.16k
  • Andrew Kalra (49yo)

    CFO & Corporate Secretary

    • Tenure: 3.9yrs
    • Compensation: CA$469.50k
  • Bruce Wigle

    Managing Partner


Board Members

  • Louis Forbes (62yo)

    Independent Trustee

    • Tenure: 2.0yrs
    • Compensation: CA$68.50k
  • John Morrison (61yo)

    Lead Independent Trustee

    • Tenure: 3.9yrs
    • Compensation: CA$73.50k
  • Stuart Lazier (67yo)

    Independent Trustee

    • Tenure: 3.9yrs
    • Compensation: CA$66.00k
  • Kapil Dilawri (53yo)

    Chairman of the Board

    • Tenure: 4.0yrs
  • James Matthews (56yo)

    • Tenure: 4.0yrs
  • Patricia Kay

    Independent Trustee

Company Information

Automotive Properties Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Automotive Properties Real Estate Investment Trust
  • Ticker: APR.UN
  • Exchange: TSX
  • Founded: 2015
  • Industry: specialized reits
  • Sector: real estate
  • Implied Market Cap: CA$330.625m
  • Market Cap: CA$227.338m
  • Shares outstanding: 31.73m
  • Website: Click here

Location

  • Automotive Properties Real Estate Investment Trust
  • 133 King Street East
  • Suite 300
  • Toronto
  • Ontario
  • M5C 1G6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
APR.UNTSX (The Toronto Stock Exchange)YesUnitsCACADJul 2015

Biography

Automotive Properties REIT is an unincorporated, open-ended real estate investment trust focused on owning and acquiring primarily income-producing automotive dealership properties located in Canada. The R ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/06/20 00:54
End of Day Share Price2019/06/19 00:00
Earnings2019/03/31
Annual Earnings2018/12/31


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.