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ERE.

European Residential Real Estate Investment TrustTSX:ERE.UN Stock Report

Market Cap

CA$1.1b

7D

-3.8%

1Y

10.5%

Updated

24 Sep, 2021

Data

Company Financials +
ERE.UN fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance1/6
Financial Health0/6
Dividends3/6

ERE.UN Overview

ERES is an unincorporated, open-ended real estate investment trust.

Price History & Performance

Summary of all time highs, changes and price drops for European Residential Real Estate Investment Trust
Historical stock prices
Current Share PriceCA$4.53
52 Week HighCA$4.04
52 Week LowCA$4.82
Beta0.78
1 Month Change-1.52%
3 Month Change6.59%
1 Year Change10.49%
3 Year Changen/a
5 Year Changen/a
Change since IPO2.96%

Recent News & Updates

Shareholder Returns

ERE.UNCA REITsCA Market
7D-3.8%-0.2%-1.0%
1Y10.5%38.8%31.4%

Return vs Industry: ERE.UN underperformed the Canadian REITs industry which returned 38.8% over the past year.

Return vs Market: ERE.UN underperformed the Canadian Market which returned 31.4% over the past year.

Price Volatility

Is ERE.UN's price volatile compared to industry and market?
ERE.UN volatility
ERE.UN Beta0.78
Industry Beta1.03
Market Beta1

Stable Share Price: ERE.UN is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: ERE.UN's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/an/aPhillip Burnshttps://www.eresreit.com

ERES is an unincorporated, open-ended real estate investment trust. ERES's REIT units are listed on the TSX under the symbol ERE.UN. ERES is Canada’s only European-focused multi-residential REIT, with a current initial focus on investing in high-quality multi-residential real estate properties in the Netherlands.

European Residential Real Estate Investment Trust Fundamentals Summary

How do European Residential Real Estate Investment Trust's earnings and revenue compare to its market cap?
ERE.UN fundamental statistics
Market Cap€708.75m
Earnings (TTM)€18.38m
Revenue (TTM)€73.15m

38.3x

P/E Ratio

9.6x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ERE.UN income statement (TTM)
Revenue€73.15m
Cost of Revenue€17.12m
Gross Profit€56.02m
Expenses€37.65m
Earnings€18.38m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.08
Gross Margin76.59%
Net Profit Margin25.12%
Debt/Equity Ratio346.0%

How did ERE.UN perform over the long term?

See historical performance and comparison

Dividends

3.6%

Current Dividend Yield

25%

Payout Ratio

Does ERE.UN pay a reliable dividends?

See ERE.UN dividend history and benchmarks
When do you need to buy ERE.UN by to receive an upcoming dividend?
European Residential Real Estate Investment Trust dividend dates
Ex Dividend DateSep 28 2021
Dividend Pay DateOct 15 2021
Days until Ex dividend3 days
Days until Dividend pay date20 days

Does ERE.UN pay a reliable dividends?

See ERE.UN dividend history and benchmarks

Valuation

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

13.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ERE.UN (CA$4.53) is trading below our estimate of fair value (CA$5.24)

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


Price To Earnings Ratio

PE vs Industry: ERE.UN is poor value based on its PE Ratio (38.3x) compared to the Canadian REITs industry average (10.1x).

PE vs Market: ERE.UN is poor value based on its PE Ratio (38.3x) compared to the Canadian market (12.8x).


Price to Earnings Growth Ratio

PEG Ratio: ERE.UN is poor value based on its PEG Ratio (1.3x)


Price to Book Ratio

PB vs Industry: ERE.UN is overvalued based on its PB Ratio (2.1x) compared to the CA REITs industry average (1.1x).


Future Growth

How is European Residential Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

29.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERE.UN's forecast earnings growth (29.4% per year) is above the savings rate (1.5%).

Earnings vs Market: ERE.UN's earnings (29.4% per year) are forecast to grow faster than the Canadian market (12.1% per year).

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

Revenue vs Market: ERE.UN's revenue (4.8% per year) is forecast to grow slower than the Canadian market (6.1% per year).

High Growth Revenue: ERE.UN's revenue (4.8% 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 ERE.UN's Return on Equity is forecast to be high in 3 years time


Past Performance

How has European Residential Real Estate Investment Trust performed over the past 5 years?

20.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ERE.UN has a large one-off gain of €56.8M impacting its June 30 2021 financial results.

Growing Profit Margin: ERE.UN's current net profit margins (25.1%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: ERE.UN's earnings have grown significantly by 20.1% per year over the past 5 years.

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

Earnings vs Industry: ERE.UN had negative earnings growth (-81.1%) over the past year, making it difficult to compare to the REITs industry average (5.5%).


Return on Equity

High ROE: ERE.UN's Return on Equity (5.4%) is considered low.


Financial Health

How is European Residential Real Estate Investment Trust's financial position?


Financial Position Analysis

Short Term Liabilities: ERE.UN's short term assets (€15.9M) do not cover its short term liabilities (€87.7M).

Long Term Liabilities: ERE.UN's short term assets (€15.9M) do not cover its long term liabilities (€1.2B).


Debt to Equity History and Analysis

Debt Level: ERE.UN's debt to equity ratio (346%) is considered high.

Reducing Debt: Insufficient data to determine if ERE.UN's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: ERE.UN's debt is not well covered by operating cash flow (3.9%).

Interest Coverage: ERE.UN's interest payments on its debt are not well covered by EBIT (1.7x coverage).


Balance Sheet


Dividend

What is European Residential Real Estate Investment Trust current dividend yield, its reliability and sustainability?

3.61%

Current Dividend Yield


Upcoming Dividend Payment

TodaySep 25 2021Ex Dividend DateSep 28 2021Dividend Pay DateOct 15 202117 days from Ex DividendBuy in the next 3 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ERE.UN's dividend (3.61%) is higher than the bottom 25% of dividend payers in the Canadian market (1.65%).

High Dividend: ERE.UN's dividend (3.61%) is low compared to the top 25% of dividend payers in the Canadian market (4.58%).


Stability and Growth of Payments

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

Growing Dividend: ERE.UN's dividend payments have increased, but the company has only paid a dividend for 2 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (25.4%), ERE.UN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ERE.UN's dividends in 3 years are forecast to be covered by earnings (69.2% payout ratio).


Next Steps

Management

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

3.4yrs

Average board tenure


CEO

Phillip Burns (52 yo)

no data

Tenure

€1,058,432

Compensation

Mr. Phillip Wesley Burns is the Founder of Maple Knoll Capital Ltd. and has been its Principal since June 2013. He also serves as the Chief Executive Officer of European Residential Real Estate Investment...


CEO Compensation Analysis

Compensation vs Market: Phillip's total compensation ($USD1.24M) is about average for companies of similar size in the Canadian market ($USD1.18M).

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


Board Members

Experienced Board: ERE.UN's board of directors are considered experienced (3.4 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

European Residential Real Estate Investment Trust's employee growth, exchange listings and data sources


Key Information

  • Name: European Residential Real Estate Investment Trust
  • Ticker: ERE.UN
  • Exchange: TSX
  • Founded: NaN
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: CA$1.054b
  • Market Cap: CA$405.856m
  • Shares outstanding: 231.04m
  • Website: https://www.eresreit.com

Location

  • European Residential Real Estate Investment Trust
  • 11 Church Street
  • Suite 401
  • Toronto
  • Ontario
  • M5E 1W1
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/24 22:08
End of Day Share Price2021/09/24 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.