TSX:SRT.UN

Stock Analysis Report

Executive Summary

Slate Retail REIT is a real estate investment trust focused on U.S.


Snowflake Analysis

Average dividend payer and fair value.

Share Price & News

How has Slate Retail REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: SRT.UN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.9%

SRT.UN

-2.5%

CA REITs

-4.8%

CA Market


1 Year Return

4.0%

SRT.UN

11.9%

CA REITs

0.1%

CA Market

Return vs Industry: SRT.UN underperformed the Canadian REITs industry which returned 13.2% over the past year.

Return vs Market: SRT.UN exceeded the Canadian Market which returned 0.5% over the past year.


Shareholder returns

SRT.UNIndustryMarket
7 Day-1.9%-2.5%-4.8%
30 Day-2.8%1.0%-3.2%
90 Day0.5%4.0%-1.0%
1 Year12.8%4.0%17.5%11.9%3.3%0.1%
3 Year16.8%-8.9%43.6%21.6%12.9%2.7%
5 Year50.6%1.4%63.1%22.9%29.2%10.3%

Price Volatility Vs. Market

How volatile is Slate Retail REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Slate Retail REIT undervalued compared to its fair value and its price relative to the market?

30.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SRT.UN (CA$13.35) is trading below our estimate of fair value (CA$17.19)

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


Price To Earnings Ratio

PE vs Industry: SRT.UN is poor value based on its PE Ratio (131x) compared to the REITs industry average (10.7x).

PE vs Market: SRT.UN is poor value based on its PE Ratio (131x) compared to the Canadian market (15.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SRT.UN is good value based on its PB Ratio (1x) compared to the CA REITs industry average (1.1x).


Next Steps

Future Growth

How is Slate Retail REIT forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-2.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if SRT.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: SRT.UN's revenue is expected to decline over the next 3 years (-1.8% per year).

High Growth Revenue: SRT.UN's revenue is forecast to decline over the next 3 years (-1.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if SRT.UN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Slate Retail REIT performed over the past 5 years?

1.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRT.UN has a large one-off loss of $45.3M impacting its September 30 2019 financial results.

Growing Profit Margin: SRT.UN's current net profit margins (2.3%) are lower than last year (30%).


Past Earnings Growth Analysis

Earnings Trend: SRT.UN's earnings have grown by 1.2% per year over the past 5 years.

Accelerating Growth: SRT.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: SRT.UN had negative earnings growth (-92.3%) over the past year, making it difficult to compare to the REITs industry average (9.2%).


Return on Equity

High ROE: SRT.UN's Return on Equity (0.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Slate Retail REIT'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: SRT.UN has a high level of physical assets or inventory.

Debt Coverage by Assets: SRT.UN's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Slate Retail REIT's current dividend yield, its reliability and sustainability?

8.74%

Current Dividend Yield


Dividend Yield vs Market

company8.7%marketbottom25%2.0%markettop25%5.8%industryaverage4.5%forecastin3Years8.8%

Current dividend yield vs market & industry

Notable Dividend: SRT.UN's dividend (8.6%) is higher than the bottom 25% of dividend payers in the Canadian market (2.02%).

High Dividend: SRT.UN's dividend (8.6%) is in the top 25% of dividend payers in the Canadian market (5.7%)


Stability and Growth of Payments

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

Growing Dividend: SRT.UN's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67%), SRT.UN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SRT.UN's dividends in 3 years are forecast to be thoroughly covered by earnings (1.7% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Greg Stevenson 0

4.5yrs

Tenure

US$700,000

Compensation

Mr. Greg Stevenson has been Chief Executive Officer of the Slate Retail REIT on August 12, 2015. Mr. Stevenson had been responsible for asset management and operational oversight of the REIT’s portfolio si ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD526.78K) is below average for companies of similar size in the Canadian market ($USD1.01M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Greg Stevenson
Chief Executive Officer4.5yrsUS$700.00k0.11% $469.2k
Andrew Agatep
Chief Financial Officer0.2yrsno data0.00034% $1.4k
David Dunn
Chief Operating Officer0.2yrsno datano data
Katie Fasken
Director of Business Development & Investor Relations4.1yrsno datano data
Ramsey Ali
Corporate Secretary & General Counsel of Slate Canada7.1yrsno datano data
Lisa Rowe
Senior Vice President of Finance & Taxation of Slate Canada7.1yrsno data0.017% $71.0k
Brandon Donnelly
Managing Director of Development0yrsno datano data
Will Miller
Vice President of Asset Management2.2yrsno datano data
Madeline Sarracini
Analyst0yrsno datano data
Amanda Giardino
Manager of Financial Analysis & Reporting2.2yrsno datano data

3.1yrs

Average Tenure

Experienced Management: SRT.UN's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Samuel Altman
Independent Trustee8yrsUS$51.00k0.82% $3.5m
Colum Bastable
Independent Trustee5.9yrsUS$64.50k0.0093% $39.5k
Thomas Farley
Chair of the Board5.7yrsUS$96.00k0.24% $1.0m
Andrea Stephen
Independent Trustee2.7yrsUS$56.00k0.025% $105.0k
Patrick Flatley
Independent Trustee8yrsUS$42.00k0.0098% $41.9k
Blair Welch
8.1yrsno datano data
Brady Welch
8yrsno data0.058% $248.7k

8.0yrs

Average Tenure

55yo

Average Age

Experienced Board: SRT.UN's board of directors are considered experienced (8 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

Ownership Breakdown

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


Top Shareholders

Company Information

Slate Retail REIT's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Slate Retail REIT
  • Ticker: SRT.UN
  • Exchange: TSX
  • Founded:
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: CA$426.421m
  • Market Cap: CA$538.856m
  • Shares outstanding: 42.09m
  • Website: https://www.slateretailreit.com

Location

  • Slate Retail REIT
  • 121 King Street West
  • Suite 200
  • Toronto
  • Ontario
  • M5H 3T9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
SRT.UNTSX (The Toronto Stock Exchange)YesClass U UnitsCACADApr 2014
SRRT.FOTCPK (Pink Sheets LLC)YesClass U UnitsUSUSDApr 2014

Biography

Slate Retail REIT is a real estate investment trust focused on U.S. grocery-anchored real estate. The REIT owns and operates approximately U.S. $1.3 billion of assets located across the top 50 U.S. metro markets that are visited regularly by consumers for their everyday needs. The REIT’s diversified portfolio and quality tenant covenants, provides a strong basis to continue to grow unitholder distributions and the flexibility to capitalize on opportunities that drive value appreciation. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 02:44
End of Day Share Price2020/02/26 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.