TSX:INO.UN

Stock Analysis Report

Inovalis Real Estate Investment Trust

Executive Summary

Inovalis Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario.


Snowflake Analysis

Undervalued average dividend payer.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: INO.UN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

7.8%

INO.UN

9.2%

CA REITs

3.7%

CA Market


1 Year Return

-42.8%

INO.UN

-24.6%

CA REITs

-23.7%

CA Market

Return vs Industry: INO.UN underperformed the Canadian REITs industry which returned -24.6% over the past year.

Return vs Market: INO.UN underperformed the Canadian Market which returned -23.7% over the past year.


Shareholder returns

INO.UNIndustryMarket
7 Day7.8%9.2%3.7%
30 Day-43.8%-27.4%-19.7%
90 Day-44.7%-26.5%-24.3%
1 Year-37.8%-42.8%-20.7%-24.6%-21.2%-23.7%
3 Year-22.1%-39.2%-1.6%-16.7%-13.3%-21.4%
5 Year-1.4%-35.5%12.3%-15.4%-0.8%-15.5%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INO.UN (CA$5.82) is trading below our estimate of fair value (CA$22.03)

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


Price To Earnings Ratio

PE vs Industry: INO.UN is good value based on its PE Ratio (6.3x) compared to the REITs industry average (7.4x).

PE vs Market: INO.UN is good value based on its PE Ratio (6.3x) compared to the Canadian market (10.4x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate INO.UN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: INO.UN is good value based on its PB Ratio (0.5x) compared to the CA REITs industry average (0.7x).


Next Steps

Future Growth

How is Inovalis Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

15.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if INO.UN's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if INO.UN's earnings are forecast to grow faster than the Canadian market

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

Revenue vs Market: INO.UN's revenue (15.7% per year) is forecast to grow faster than the Canadian market (3.7% per year).

High Growth Revenue: INO.UN's revenue (15.7% 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 INO.UN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INO.UN has a large one-off gain of CA$6.0M impacting its September 30 2019 financial results.

Growing Profit Margin: INO.UN's current net profit margins (58.5%) are higher than last year (52.4%).


Past Earnings Growth Analysis

Earnings Trend: INO.UN's earnings have declined by -4.6% per year over the past 5 years.

Accelerating Growth: INO.UN's earnings growth over the past year (2.6%) exceeds its 5-year average (-4.6% per year).

Earnings vs Industry: INO.UN earnings growth over the past year (2.6%) underperformed the REITs industry 4.7%.


Return on Equity

High ROE: INO.UN's Return on Equity (8.3%) is considered low.


Next Steps

Financial Health

How is Inovalis 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: INO.UN has a high level of physical assets or inventory.

Debt Coverage by Assets: INO.UN's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

14.18%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: INO.UN's dividend (14.18%) is higher than the bottom 25% of dividend payers in the Canadian market (2.69%).

High Dividend: INO.UN's dividend (14.18%) is in the top 25% of dividend payers in the Canadian market (8.66%)


Stability and Growth of Payments

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

Growing Dividend: INO.UN has only been paying a dividend for 7 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.8%), INO.UN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: INO.UN's dividends in 3 years are forecast to be thoroughly covered by earnings (3.2% payout ratio).


Next Steps

Management

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

1.9yrs

Average management tenure


CEO

David Giraud

7s

Tenure

CA$150,000

Compensation

Mr. David Giraud has been the Chief Executive Officer of Inovalis Real Estate Investment Trust since April 10, 2013. Mr. Giraud Co-Founded Inovalis in 1998 and has focused on fund structuring, investor rel ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD105.82K) is below average for companies of similar size in the Canadian market ($USD158.74K).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Giraud
Chief Executive Officer7yrsCA$150.00kno data
Stéphane Amine
President & Director0.83yrCA$250.00kno data
Khalil Hankach
Chief investment Officer & CFO0.83yrCA$220.00kno data

1.9yrs

Average Tenure

Experienced Management: INO.UN's management team is not considered experienced ( 1.9 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Stéphane Amine
President & Director0.83yrCA$250.00kno data
Daniel Argiros
Chairman & Independent Lead Trustee1.92yrsCA$39.50k0.13% CA$226.6k
Michael Lagopoulos
Independent Trustee2.75yrsCA$38.75k0.021% CA$36.0k
Marc Manasterski
Independent Trustee7.17yrsCA$32.25kno data
Jean-Daniel Cohen
Independent Trustee7.17yrsCA$32.50k0.39% CA$665.4k
Jo-Ann Lempert
Independent Trustee2.58yrsCA$37.99k0.0035% CA$6.0k
Robert Picard
Independent Trustee1.92yrsCA$21.73kno data
Michael Missaghie
Independent Trustee0.42yrno datano data

2.3yrs

Average Tenure

57yo

Average Age

Experienced Board: INO.UN's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


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

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Inovalis Real Estate Investment Trust
  • Ticker: INO.UN
  • Exchange: TSX
  • Founded:
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: CA$172.669m
  • Market Cap: CA$167.649m
  • Shares outstanding: 29.67m
  • Website: https://www.inovalisreit.com

Number of Employees


Location

  • Inovalis Real Estate Investment Trust
  • 151 Yonge Street
  • 11th floor
  • Toronto
  • Ontario
  • M5C 2W7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INO.UNTSX (The Toronto Stock Exchange)YesUnitsCACADApr 2013
IVRE.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDApr 2013

Biography

Inovalis Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has been created for the purpose of acquiring and owning office properties primarily located in France and Germany but also opportunistically in other European countries where assets meet the REIT's investment criteria. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/01 05:37
End of Day Share Price2020/03/31 00:00
Earnings2019/09/30
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.