TSX:DRG.UN

Stock Analysis Report

Dream Global Real Estate Investment Trust

Executive Summary

Dream Global REIT is an owner and operator of a diversified high-quality portfolio of office and industrial properties located in key markets in Western Europe with a focus on Germany and the Netherlands.

Snowflake

Fundamentals

Outstanding track record and good value.

Share Price & News

How has Dream Global 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

0.1%

DRG.UN

-1.3%

CA REITs

0.3%

CA Market


1 Year Return

21.8%

DRG.UN

17.5%

CA REITs

0.1%

CA Market

Return vs Industry: DRG.UN exceeded the Canadian REITs industry which returned 17.5% over the past year.

Return vs Market: DRG.UN exceeded the Canadian Market which returned 0.1% over the past year.


Shareholder returns

DRG.UNIndustryMarket
7 Day0.1%-1.3%0.3%
30 Day0.5%3.5%-2.5%
90 Day17.8%6.3%-1.4%
1 Year28.6%21.8%23.9%17.5%3.6%0.1%
3 Year119.8%81.0%40.7%18.5%14.3%4.1%
5 Year163.2%81.6%68.1%25.2%25.0%6.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Dream Global Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

25.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: DRG.UN (CA$16.65) is trading below our estimate of fair value (CA$22.22)

Significantly Undervalued: DRG.UN is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: DRG.UN is good value based on its PE Ratio (4.1x) compared to the REITs industry average (9.6x).

PE vs Market: DRG.UN is good value based on its PE Ratio (4.1x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: DRG.UN is good value based on its PB Ratio (1x) compared to the CA REITs industry average (1x).


Next Steps

Future Growth

How is Dream Global Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-24.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: DRG.UN's earnings are forecast to decline over the next 3 years (-24.4% per year).

Earnings vs Market: DRG.UN's earnings are forecast to decline over the next 3 years (-24.4% per year).

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

Revenue vs Market: DRG.UN's revenue (1.8% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: DRG.UN's revenue (1.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: DRG.UN's Return on Equity is forecast to be low in 3 years time (8.6%).


Next Steps

Past Performance

How has Dream Global Real Estate Investment Trust performed over the past 5 years?

35.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: DRG.UN's earnings have grown significantly by 35.6% per year over the past 5 years.

Accelerating Growth: DRG.UN's earnings growth over the past year (57.1%) exceeds its 5-year average (35.6% per year).

Earnings vs Industry: DRG.UN earnings growth over the past year (57.1%) exceeded the REITs industry 6%.


Return on Equity

High ROE: DRG.UN's Return on Equity (25%) is considered high.


Return on Assets

ROA vs Industry: DRG.UN has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

ROCE Improving: DRG.UN has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Dream Global Real Estate Investment Trust'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: DRG.UN has a high level of physical assets or inventory.

Debt Coverage by Assets: DRG.UN's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

4.81%

Current Dividend Yield


Dividend Yield vs Market

company4.8%marketbottom25%2.0%markettop25%6.0%industryaverage4.8%forecastin3Years4.7%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: DRG.UN's dividend (4.81%) is higher than the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: DRG.UN's dividend (4.81%) is low compared to the top 25% of dividend payers in the Canadian market (5.99%).

Stable Dividend: Whilst dividend payments have been stable, DRG.UN has been paying a dividend for less than 10 years.

Growing Dividend: DRG.UN has only been paying a dividend for 8 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (62.2%), DRG.UN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: DRG.UN's dividends in 3 years are forecast to be thoroughly covered by earnings (0.4% payout ratio).


Next Steps

Management

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

1.8yrs

Average management tenure


CEO

P. Gavan (59yo)

8.8yrs

Tenure

CA$2,032,750

Compensation

Ms. P. Jane Gavan serves as an Independent Director of PrairieSky Royalty Ltd. since May 23, 2019. Ms. Gavan has been a Non Independent Trustee of Dream Office Real Estate Investment Trust since May 17, 20 ...


CEO Compensation Analysis

Compensation vs. Market: P.'s total compensation ($USD1.54M) is below average for companies of similar size in the Canadian market ($USD2.88M).

Compensation vs Earnings: P.'s compensation has increased by more than 20% in the past year.


Management Age and Tenure

1.8yrs

Average Tenure

45yo

Average Age

Experienced Management: DRG.UN's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

8.2yrs

Average Tenure

58.5yo

Average Age

Experienced Board: DRG.UN's board of directors are considered experienced (8.2 years average tenure).


Insider Trading

Insider Buying: DRG.UN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$454,26730 Sep 19
Duncan Newton Jackman
EntityIndividual
Shares27,382
Max PriceCA$16.59
SellCA$1,800,60017 May 19
DREAM Asset Management Corporation
EntityCompany
Shares127,551
Max PriceCA$14.12

Ownership Breakdown


Management Team

  • P. Gavan (59yo)

    President

    • Tenure: 8.8yrs
    • Compensation: CA$2.03m
  • Bruce Traversy (53yo)

    Head of Investment

    • Tenure: 1.8yrs
  • Rajeev Viswanathan (43yo)

    Chief Financial Officer

    • Tenure: 1.1yrs
    • Compensation: CA$426.04k
  • Alex Sannikov (33yo)

    Chief Operating Officer

    • Tenure: 0.9yrs
  • Michael Schwöbel (45yo)

    MD & Head of of Real Estate - Germany

    • Tenure: 0yrs
  • Jennifer Bachmann

    Head of Asset Management - Germany

    • Tenure: 3.8yrs

Board Members

  • John Sullivan (59yo)

    • Tenure: 7.9yrs
    • Compensation: CA$107.88k
  • Michael Cooper (58yo)

    Vice Chairman of the Board

    • Tenure: 8.8yrs
    • Compensation: CA$290.20k
  • P. Gavan (59yo)

    President

    • Tenure: 8.8yrs
    • Compensation: CA$2.03m
  • Detlef F. Bierbaum

    Chairman of the Board

    • Tenure: 8.8yrs
    • Compensation: CA$180.00k
  • Christian Schede

    • Tenure: 0.4yrs
  • R. Bhatia (42yo)

    • Tenure: 3.9yrs
    • Compensation: CA$110.00k

Company Information

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


Key Information

  • Name: Dream Global Real Estate Investment Trust
  • Ticker: DRG.UN
  • Exchange: TSX
  • Founded: 2011
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Implied Market Cap: CA$3.231b
  • Market Cap: CA$3.233b
  • Shares outstanding: 194.18m
  • Website: https://www.dreamglobalreit.ca

Number of Employees


Location

  • Dream Global Real Estate Investment Trust
  • State Street Financial Centre
  • Suite 301
  • Toronto
  • Ontario
  • M5C 3H1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
DRG.UNTSX (The Toronto Stock Exchange)YesREIT UnitsCACADAug 2011
DUND.FOTCPK (Pink Sheets LLC)YesREIT UnitsUSUSDAug 2011
DRGDB (Deutsche Boerse AG)YesREIT UnitsDEEURAug 2011
DRGXTRA (XETRA Trading Platform)YesREIT UnitsDEEURAug 2011
0RKJLSE (London Stock Exchange)YesREIT UnitsGBEURAug 2011

Biography

Dream Global REIT is an owner and operator of a diversified high-quality portfolio of office and industrial properties located in key markets in Western Europe with a focus on Germany and the Netherlands.  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/16 00:11
End of Day Share Price2019/10/15 00:00
Earnings2019/06/30
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.