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 fair value.

Risks

  • Dream Global Real Estate Investment Trust is covered by less than 3 analysts.

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

16.8%

TSX:DRG.UN

0.2%

CA REITs

1.6%

CA Market


1 Year Return

9.4%

TSX:DRG.UN

7.6%

CA REITs

-0.5%

CA Market

DRG.UN outperformed the REITs industry which returned 6.4% over the past year.

DRG.UN outperformed the Market in Canada which returned -0.3% over the past year.


Share holder returns

DRG.UNIndustryMarket
7 Day16.8%0.2%1.6%
30 Day16.3%0.9%3.9%
90 Day20.9%1.6%0.8%
1 Year16.0%9.4%13.5%7.6%3.0%-0.5%
3 Year124.1%83.1%36.1%14.4%19.5%8.8%
5 Year166.2%82.3%65.8%23.2%21.0%3.6%

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 based on future cash flows and its price relative to the stock market?

27%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

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

Dream Global Real Estate Investment Trust's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Dream Global Real Estate Investment Trust is good value based on earnings compared to the CA REITs industry average.

Dream Global Real Estate Investment Trust is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Dream Global Real Estate Investment Trust earnings are not expected to grow next year, we can't assess if its growth is good value.


Price Based on Value of Assets

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


Next Steps

Future Growth

How is Dream Global Real Estate Investment Trust expected 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 Estimates


Future Annual Growth Analysis

Dream Global Real Estate Investment Trust's revenue is expected to grow by 1.8% yearly, however this is not considered high growth (20% yearly).

Dream Global Real Estate Investment Trust's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Dream Global Real Estate Investment Trust's revenue growth is positive but not above the Canada market average.

Dream Global Real Estate Investment Trust's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.

Dream Global Real Estate Investment Trust's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Dream Global Real Estate Investment Trust is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

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

Dream Global Real Estate Investment Trust's 1-year earnings growth exceeds its 5-year average (57.1% vs 35.6%)

Dream Global Real Estate Investment Trust's earnings growth has exceeded the CA REITs industry average in the past year (57.1% vs 6%).


Return on Equity

Dream Global Real Estate Investment Trust has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

Dream Global Real Estate Investment Trust used its assets more efficiently than the CA REITs industry average last year based on Return on Assets.


Return on Capital Employed

Dream Global Real Estate Investment Trust has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Dream Global Real Estate Investment Trust's financial position?


Financial Position Analysis

Dream Global Real Estate Investment Trust is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

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


Debt to Equity History and Analysis

Dream Global Real Estate Investment Trust's level of debt (81.7%) 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 (136.6% vs 81.7% today).

Debt is not well covered by operating cash flow (5.8%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 7.4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

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

4.74%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Dream Global Real Estate Investment Trust's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.99%).

Dream Global Real Estate Investment Trust's dividend is below the markets top 25% of dividend payers in Canada (5.85%).

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

Dream Global Real Estate Investment Trust has only been paying a dividend for 8 years, and since then there has been no growth.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.6x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (273.2x coverage).


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?

1.7yrs

Average management tenure


CEO

P. Gavan (59yo)

8.7yrs

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

P.'s remuneration is lower than average for companies of similar size in Canada.

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


Management Age and Tenure

1.7yrs

Average Tenure

45yo

Average Age

The average tenure for the Dream Global Real Estate Investment Trust management team is less than 2 years, this suggests a new team.


Board Age and Tenure

8.1yrs

Average Tenure

58.5yo

Average Age

The tenure for the Dream Global Real Estate Investment Trust board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

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: 8.7yrs
    • Compensation: CA$2.03m
  • Bruce Traversy (53yo)

    Head of Investment

    • Tenure: 1.7yrs
  • Rajeev Viswanathan (43yo)

    Chief Financial Officer

    • Tenure: 1yrs
    • Compensation: CA$426.04k
  • Alex Sannikov (33yo)

    Chief Operating Officer

    • Tenure: 0.8yrs
  • Michael Schwöbel (45yo)

    MD & Head of of Real Estate - Germany

    • Tenure: 0yrs
  • Jennifer Bachmann

    Head of Asset Management - Germany

    • Tenure: 3.7yrs

Board Members

  • John Sullivan (59yo)

    • Tenure: 7.8yrs
    • Compensation: CA$107.88k
  • Michael Cooper (58yo)

    Vice Chairman of the Board

    • Tenure: 8.7yrs
    • Compensation: CA$290.20k
  • P. Gavan (59yo)

    President

    • Tenure: 8.7yrs
    • Compensation: CA$2.03m
  • Detlef F. Bierbaum

    Chairman of the Board

    • Tenure: 8.7yrs
    • Compensation: CA$180.00k
  • Christian Schede

    • Tenure: 0.3yrs
  • R. Bhatia (42yo)

    • Tenure: 3.8yrs
    • 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$2.752b
  • Market Cap: CA$3.218b
  • 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 Analysis2019/09/17 00:17
End of Day Share Price2019/09/16 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.