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ERE.

European Residential Real Estate Investment Trust TSX:ERE.UN Stock Report

Last Price

CA$3.03

Market Cap

CA$702.2m

7D

-7.6%

1Y

-33.1%

Updated

25 Sep, 2022

Data

Company Financials +

European Residential Real Estate Investment Trust Competitors

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$3.03
52 Week HighCA$5.06
52 Week LowCA$2.99
Beta1.0
1 Month Change-13.43%
3 Month Change-18.77%
1 Year Change-33.11%
3 Year Change-32.67%
5 Year Changen/a
Change since IPO-31.14%

Recent News & Updates

Shareholder Returns

ERE.UNCA REITsCA Market
7D-7.6%-6.8%-4.8%
1Y-33.1%-22.1%-7.3%

Return vs Industry: ERE.UN underperformed the Canadian REITs industry which returned -22.1% over the past year.

Return vs Market: ERE.UN underperformed the Canadian Market which returned -7.2% over the past year.

Price Volatility

Is ERE.UN's price volatile compared to industry and market?
ERE.UN volatility
ERE.UN Average Weekly Movement4.9%
REITs Industry Average Movement3.2%
Market Average Movement9.9%
10% most volatile stocks in CA Market18.3%
10% least volatile stocks in CA Market3.8%

Stable Share Price: ERE.UN is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: ERE.UN's weekly volatility (5%) 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 CapCA$702.22m
Earnings (TTM)CA$262.51m
Revenue (TTM)CA$109.20m

1.0x

P/E Ratio

2.5x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
ERE.UN income statement (TTM)
Revenue€82.80m
Cost of Revenue€18.62m
Gross Profit€64.18m
Other Expenses-€134.85m
Earnings€199.03m

Last Reported Earnings

Jun 30, 2022

Next Earnings Date

n/a

Earnings per share (EPS)2.22
Gross Margin77.51%
Net Profit Margin240.38%
Debt/Equity Ratio256.2%

How did ERE.UN perform over the long term?

See historical performance and comparison

Dividends

5.2%

Current Dividend Yield

21%

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 2022
Dividend Pay DateOct 17 2022
Days until Ex dividend2 days
Days until Dividend pay date21 days

Does ERE.UN pay a reliable dividends?

See ERE.UN dividend history and benchmarks
We’ve recently updated our valuation analysis.

Valuation

Is ERE.UN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

6/6

Valuation Score 6/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for ERE.UN?

Other financial metrics that can be useful for relative valuation.

ERE.UN key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue19.1x
Enterprise Value/EBITDAn/a
PEG Ratio-0.01x

Price to Earnings Ratio vs Peers

How does ERE.UN's PE Ratio compare to its peers?

ERE.UN PE Ratio vs Peers
The above table shows the PE ratio for ERE.UN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average2.4x
MRG.UN Morguard North American Residential Real Estate Investment Trust
1.2xn/aCA$867.8m
MI.UN Minto Apartment Real Estate Investment Trust
1.6xn/aCA$866.9m
MHC.UN Flagship Communities Real Estate Investment Trust
2.6xn/aCA$408.1m
IIP.UN InterRent Real Estate Investment Trust
4.3xn/aCA$1.6b
ERE.UN European Residential Real Estate Investment Trust
1x-102.7%CA$702.2m

Price-To-Earnings vs Peers: ERE.UN is good value based on its Price-To-Earnings Ratio (1x) compared to the peer average (2.4x).


Price to Earnings Ratio vs Industry

How does ERE.UN's PE Ratio compare vs other companies in the CA REITs Industry?

Price-To-Earnings vs Industry: ERE.UN is good value based on its Price-To-Earnings Ratio (1x) compared to the Canadian REITs industry average (4.3x)


Price to Earnings Ratio vs Fair Ratio

What is ERE.UN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

ERE.UN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio1x
Fair PE Ratio2.7x

Price-To-Earnings vs Fair Ratio: ERE.UN is good value based on its Price-To-Earnings Ratio (1x) compared to the estimated Fair Price-To-Earnings Ratio (2.7x).


Share Price vs Fair Value

What is the Fair Price of ERE.UN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: ERE.UN (CA$3.03) is trading below our estimate of fair value (CA$7.08)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

How is European Residential Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-102.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ERE.UN's earnings are forecast to decline over the next 3 years (-102.7% per year).

Earnings vs Market: ERE.UN's earnings are forecast to decline over the next 3 years (-102.7% per year).

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

Revenue vs Market: ERE.UN's revenue (6% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: ERE.UN's revenue (6% 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


Discover growth companies

Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


36.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: ERE.UN has a large one-off gain of €175.2M impacting its June 30 2022 financial results.

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


Past Earnings Growth Analysis

Earnings Trend: ERE.UN's earnings have grown significantly by 36.3% per year over the past 5 years.

Accelerating Growth: ERE.UN's earnings growth over the past year (983%) exceeds its 5-year average (36.3% per year).

Earnings vs Industry: ERE.UN earnings growth over the past year (983%) exceeded the REITs industry 58.2%.


Return on Equity

High ROE: Whilst ERE.UN's Return on Equity (37.33%) is high, this metric is skewed due to their high level of debt.


Discover strong past performing companies

Financial Health

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

Financial Health Score

1/6

Financial Health Score 1/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: ERE.UN's short term assets (€22.4M) do not cover its short term liabilities (€114.4M).

Long Term Liabilities: ERE.UN's short term assets (€22.4M) do not cover its long term liabilities (€1.4B).


Debt to Equity History and Analysis

Debt Level: ERE.UN's net debt to equity ratio (253.2%) 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 (4.2%).

Interest Coverage: ERE.UN's interest payments on its debt are well covered by EBIT (3.8x coverage).


Balance Sheet


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Dividend

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

Dividend Score

3/6

Dividend Score 3/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


5.22%

Current Dividend Yield

Upcoming Dividend Payment

TodaySep 26 2022Ex Dividend DateSep 28 2022Dividend Pay DateOct 17 202219 days from Ex DividendBuy in the next 2 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: ERE.UN's dividend (5.22%) is higher than the bottom 25% of dividend payers in the Canadian market (2.05%).

High Dividend: ERE.UN's dividend (5.22%) is low compared to the top 25% of dividend payers in the Canadian market (5.95%).


Stability and Growth of Payments

Stable Dividend: ERE.UN has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ERE.UN's dividend payments have increased, but the company has only paid a dividend for 3 years.


Earnings Payout to Shareholders

Earnings Coverage: With its low payout ratio (20.9%), ERE.UN's dividend payments are well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (48.4%), ERE.UN's dividend payments are well covered by cash flows.


Discover strong dividend paying companies

Management

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

4.4yrs

Average board tenure


CEO

Phillip Burns (53 yo)

no data

Tenure

€1,149,124

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 ($USD1.12M) is about average for companies of similar size in the Canadian market ($USD1.27M).

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 (4.4 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.


Recent Insider Transactions

TSX:ERE.UN Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
23 Mar 22BuyCA$48,764Scott CryerIndividual10,000CA$4.88
23 Feb 22BuyCA$200,810Stephen CoIndividual43,000CA$4.67
15 Nov 21BuyCA$505,901Ira GluskinIndividual110,000CA$4.60
10 Nov 21BuyCA$460,320Ira GluskinIndividual100,000CA$4.60

Ownership Breakdown

What is the ownership structure of ERE.UN?
Owner TypeNumber of SharesOwnership Percentage
Individual Insiders1,653,1571.8%
Institutions36,573,65740.8%
General Public51,488,77057.4%

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Top 25 shareholders own 42.53% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
14.65%
1832 Asset Management L.P.
13,142,056€39.8m0%0.05%
11.37%
Canadian Apartment Properties Real Estate Investment Trust
10,197,000€30.9m0%100%
4.16%
CI Global Asset Management
3,729,454€11.3m-46.69%0.02%
2.59%
CIBC Asset Management Inc.
2,326,600€7.0m51.66%0.01%
2.16%
BMO Asset Management Corp.
1,934,200€5.9m0%no data
0.97%
Phillip Burns
868,288€2.6m0%no data
0.88%
Purpose Investments Inc.
787,774€2.4m0%0.18%
0.85%
Vision Capital Corporation
764,129€2.3m-21.42%0.64%
0.75%
Arrow Capital Management Inc.
675,000€2.0m8%0.55%
0.65%
First Asset Investment Management Inc.
580,900€1.8m0%0.1%
0.6%
The Ira Gluskin & Maxine Granovsky Gluskin Charitable Foundation, Endowment Arm
539,450€1.6m0%no data
0.57%
AGF Management Limited
507,900€1.5m0%0.01%
0.38%
Dimensional Fund Advisors LP
337,971€1.0m0.01%no data
0.37%
Ira Gluskin
332,900€1.0m0%no data
0.3%
Neuberger Berman Investment Advisers LLC
273,156€827.7k0%no data
0.23%
The Vanguard Group, Inc.
205,838€623.7k0.2%no data
0.2%
Middlefield Capital Corporation
175,000€530.3k0%0.06%
0.18%
Gina Cody
162,000€490.9k0%no data
0.17%
Jarislowsky, Fraser Limited
153,900€466.3k0%no data
0.17%
Jan Breure
150,400€455.7k0%no data
0.13%
Michael Stein
120,000€363.6k0%no data
0.11%
BlackRock, Inc.
95,580€289.6k1.2%no data
0.039%
Manulife Asset Management
34,900€105.7k0%no data
0.034%
Scotia Administradora General de Fondos Chile SA
30,370€92.0k-9.88%0.01%
0.033%
Asset Management One Co., Ltd.
29,312€88.8k0%no data

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$702.222m
  • Market Cap: CA$271.838m
  • Shares outstanding: 231.76m
  • Website: https://www.eresreit.com

Location

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


Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ERE.UNTSX (The Toronto Stock Exchange)YesTrust UnitsCACADApr 2019

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/09/25 00:00
End of Day Share Price2022/09/23 00:00
Earnings2022/06/30
Annual Earnings2021/12/31


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.