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European Residential Real Estate Investment Trust

TSXV:ERE.UN
Snowflake Description

Fair value with limited growth.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
ERE.UN
TSXV
CA$677M
Imp Market Cap
  1. Home
  2. CA
  3. Real Estate
Company description

ERES is an unincorporated, open-ended real estate investment trust. The last earnings update was 70 days ago. More info.


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ERE.UN Share Price and Events
7 Day Returns
-1.1%
TSXV:ERE.UN
-1%
CA REITs
-0.4%
CA Market
1 Year Returns
-
TSXV:ERE.UN
8.5%
CA REITs
-2.8%
CA Market
ERE.UN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
European Residential Real Estate Investment Trust (ERE.UN) -1.1% -0.9% 0.2% - - -
CA REITs -1% -1.2% 1.1% 8.5% 5.9% 15.6%
CA Market -0.4% 0.3% -2.4% -2.8% 7.7% 0.1%
1 Year Return vs Industry and Market
  • No trading data on ERE.UN.
  • No trading data on ERE.UN.

ERE.UN Value

 Is European Residential Real Estate Investment Trust undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of European Residential Real Estate Investment Trust to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for European Residential Real Estate Investment Trust.

TSXV:ERE.UN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 2 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 6.7%
Perpetual Growth Rate 10-Year CA Government Bond Rate 1.9%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for TSXV:ERE.UN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year CA Govt Bond Rate 1.9%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.48
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.476 (1 + (1- 26.5%) (54.88%))
0.777
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.95% + (0.8 * 5.96%)
6.72%

Discounted Cash Flow Calculation for TSXV:ERE.UN using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for European Residential Real Estate Investment Trust is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

European Residential Real Estate Investment Trust is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

TSXV:ERE.UN DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (EUR, Millions) Source Present Value
Discounted (@ 6.72%)
2020 20.16 Analyst x2 18.90
2021 21.04 Est @ 4.35% 18.48
2022 21.80 Est @ 3.63% 17.94
2023 22.49 Est @ 3.12% 17.34
2024 23.11 Est @ 2.77% 16.70
2025 23.69 Est @ 2.52% 16.04
2026 24.25 Est @ 2.35% 15.38
2027 24.79 Est @ 2.23% 14.74
2028 25.32 Est @ 2.14% 14.11
2029 25.85 Est @ 2.09% 13.49
Present value of next 10 years cash flows €163.11
TSXV:ERE.UN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= €25.85 × (1 + 1.95%) ÷ (6.72% – 1.95%)
€552.67
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= €552.67 ÷ (1 + 6.72%)10
€288.54
TSXV:ERE.UN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= €163.11 + €288.54
€451.66
Equity Value per Share
(EUR)
= Total value / Shares Outstanding
= €451.66 / 157.88
€2.86
TSXV:ERE.UN Discount to Share Price
Calculation Result
Exchange Rate EUR/CAD
(Reporting currency to currency of TSXV:ERE.UN)
1.469
Value per Share
(CAD)
= Value per Share in EUR x Exchange Rate (EUR/CAD)
= €2.86 x 1.469
CA$4.2
Value per share (CAD) From above. CA$4.20
Current discount Discount to share price of CA$4.41
= -1 x (CA$4.41 - CA$4.20) / CA$4.20
-4.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of European Residential Real Estate Investment Trust is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for European Residential Real Estate Investment Trust's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are European Residential Real Estate Investment Trust's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
TSXV:ERE.UN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in EUR €2.78
TSXV:ERE.UN Share Price ** TSXV (2019-07-18) in CAD CA$4.41
TSXV:ERE.UN Share Price converted to EUR reporting currency Exchange rate (CAD/ EUR) 0.681 €3
Canada REITs Industry PE Ratio Median Figure of 40 Publicly-Listed REITs Companies 10.03x
Canada Market PE Ratio Median Figure of 538 Publicly-Listed Companies 15.04x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of European Residential Real Estate Investment Trust.

TSXV:ERE.UN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSXV:ERE.UN Share Price ÷ EPS (both in EUR)

= 3 ÷ 2.78

1.08x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • European Residential Real Estate Investment Trust is good value based on earnings compared to the CA REITs industry average.
  • European Residential Real Estate Investment Trust is good value based on earnings compared to the Canada market.
Price based on expected Growth
Does European Residential Real Estate Investment Trust's expected growth come at a high price?
Raw Data
TSXV:ERE.UN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 1.08x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts
-18.3%per year
North America REITs Industry PEG Ratio Median Figure of 145 Publicly-Listed REITs Companies 1.61x
Canada Market PEG Ratio Median Figure of 247 Publicly-Listed Companies 1.17x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for European Residential Real Estate Investment Trust, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on European Residential Real Estate Investment Trust's assets?
Raw Data
TSXV:ERE.UN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in EUR €3.87
TSXV:ERE.UN Share Price * TSXV (2019-07-18) in CAD CA$4.41
TSXV:ERE.UN Share Price converted to EUR reporting currency Exchange rate (CAD/ EUR) 0.681 €3
Canada REITs Industry PB Ratio Median Figure of 46 Publicly-Listed REITs Companies 0.98x
Canada Market PB Ratio Median Figure of 2,441 Publicly-Listed Companies 1.44x
TSXV:ERE.UN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSXV:ERE.UN Share Price ÷ Book Value per Share (both in EUR)

= 3 ÷ 3.87

0.77x

* Primary Listing of European Residential Real Estate Investment Trust.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • European Residential Real Estate Investment Trust is good value based on assets compared to the CA REITs industry average.
X
Value checks
We assess European Residential Real Estate Investment Trust's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. European Residential Real Estate Investment Trust has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

ERE.UN Future Performance

 How is European Residential Real Estate Investment Trust expected to perform in the next 1 to 3 years based on estimates from 2 analysts?

  • No analysts cover European Residential Real Estate Investment Trust, future earnings growth has been estimated based on fundamentals.
The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-18.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is European Residential Real Estate Investment Trust expected to grow at an attractive rate?
  • European Residential 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%.
Growth vs Market Checks
  • European Residential Real Estate Investment Trust's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.
  • European Residential Real Estate Investment Trust's revenue growth is expected to exceed the Canada market average.
Annual Growth Rates Comparison
Raw Data
TSXV:ERE.UN Future Growth Rates Data Sources
Data Point Source Value (per year)
TSXV:ERE.UN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 2 Analysts -18.3%
TSXV:ERE.UN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 2 Analysts 44.7%
Canada REITs Industry Earnings Growth Rate Market Cap Weighted Average 4.5%
Canada REITs Industry Revenue Growth Rate Market Cap Weighted Average 5.4%
Canada Market Earnings Growth Rate Market Cap Weighted Average 14%
Canada Market Revenue Growth Rate Market Cap Weighted Average 5.7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
TSXV:ERE.UN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
All numbers in EUR Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
TSXV:ERE.UN Future Estimates Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-12-31 45 14 2
2019-12-31 26 6 1
TSXV:ERE.UN Past Financials Data
Date (Data in EUR Millions) Revenue Cash Flow Net Income *
2019-03-31 22 7 47
2018-12-31 20 4 44
2017-12-31 8 2 10

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • European Residential Real Estate Investment Trust's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • European Residential Real Estate Investment Trust's revenue is expected to grow significantly at over 20% yearly.
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
TSXV:ERE.UN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below

All data from European Residential Real Estate Investment Trust Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSXV:ERE.UN Future Estimates Data
Date (Data in EUR Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-12-31
2019-12-31
TSXV:ERE.UN Past Financials Data
Date (Data in EUR Millions) EPS *
2019-03-31 2.78
2018-12-31 2.69
2017-12-31

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if European Residential Real Estate Investment Trust will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess European Residential Real Estate Investment Trust's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Canada market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Canada market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
European Residential Real Estate Investment Trust has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

ERE.UN Past Performance

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

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare European Residential Real Estate Investment Trust's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Unable to establish if European Residential Real Estate Investment Trust's year on year earnings growth rate was positive over the past 5 years as it has been trading publicly for less than 3 years.
  • Unable to compare European Residential Real Estate Investment Trust's 1-year earnings growth to the 5-year average as it has been trading publicly for less than 3 years.
  • European Residential Real Estate Investment Trust's earnings growth has exceeded the CA REITs industry average in the past year (156.4% vs 12.6%).
Earnings and Revenue History
European Residential Real Estate Investment Trust's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from European Residential Real Estate Investment Trust Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

TSXV:ERE.UN Past Revenue, Cash Flow and Net Income Data
Date (Data in EUR Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 21.65 47.15 1.67
2018-12-31 20.34 43.84 1.60
2017-12-31 8.32 10.06 1.25

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Whilst European Residential Real Estate Investment Trust made outstanding use of shareholders’ funds last year (Return on Equity greater than 40%), this is metric is skewed due to its high level of debt.
  • European Residential Real Estate Investment Trust used its assets more efficiently than the CA REITs industry average last year based on Return on Assets.
  • Unable to establish if European Residential Real Estate Investment Trust improved its use of capital last year versus 3 years ago (Return on Capital Employed) due to insufficient past data.
X
Past performance checks
We assess European Residential Real Estate Investment Trust's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
European Residential Real Estate Investment Trust has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

ERE.UN Health

 How is European Residential Real Estate Investment Trust's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up European Residential Real Estate Investment Trust's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • European Residential Real Estate Investment Trust's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • European Residential Real Estate Investment Trust's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of European Residential Real Estate Investment Trust's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from European Residential Real Estate Investment Trust Company Filings, last reported 3 months ago.

TSXV:ERE.UN Past Debt and Equity Data
Date (Data in EUR Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 65.72 252.69 16.17
2018-12-31 105.29 305.96 2.24
2017-12-31 49.30 309.75 6.47
  • European Residential Real Estate Investment Trust's level of debt (384.5%) compared to net worth is high (greater than 40%).
  • Unable to establish if European Residential Real Estate Investment Trust's debt level has increased without past 5-year debt data.
  • Debt is not well covered by operating cash flow (2.8%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 1.3x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess European Residential Real Estate Investment Trust's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. European Residential Real Estate Investment Trust has a total score of 0/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

ERE.UN Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.5%
Current annual income from European Residential Real Estate Investment Trust dividends. Estimated to be 3.64% next year.
If you bought CA$2,000 of European Residential Real Estate Investment Trust shares you are expected to receive CA$70 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • European Residential Real Estate Investment Trust's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.07%).
  • European Residential Real Estate Investment Trust's dividend is below the markets top 25% of dividend payers in Canada (5.73%).
Upcoming dividend payment

Purchase European Residential Real Estate Investment Trust before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
TSXV:ERE.UN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 2 Analyst Estimates (S&P Global) See Below
Canada REITs Industry Average Dividend Yield Market Cap Weighted Average of 44 Stocks 5%
Canada Market Average Dividend Yield Market Cap Weighted Average of 336 Stocks 3.5%
Canada Minimum Threshold Dividend Yield 10th Percentile 1.1%
Canada Bottom 25% Dividend Yield 25th Percentile 2.1%
Canada Top 25% Dividend Yield 75th Percentile 5.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

TSXV:ERE.UN Future Dividends Estimate Data
Date (Data in €) Dividend per Share (annual) Avg. No. Analysts
2020-12-31 0.11 3.00
2019-12-31 0.11 3.00
TSXV:ERE.UN Past Annualized Dividends Data
Date (Data in €) Dividend per share (annual) Avg. Yield (%)
2019-07-15 0.105 3.468
2019-06-21 0.105 3.499

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • It is too early to tell whether European Residential Real Estate Investment Trust has stable dividend payments.
  • European Residential Real Estate Investment Trust only just started paying a dividend, it is too early to tell if payments are increasing.
Current Payout to shareholders
What portion of European Residential Real Estate Investment Trust's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as European Residential Real Estate Investment Trust has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess European Residential Real Estate Investment Trust's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can European Residential Real Estate Investment Trust afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. European Residential Real Estate Investment Trust has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

ERE.UN Management

 What is the CEO of European Residential Real Estate Investment Trust's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Phillip Burns
AGE 50
CEO Bio

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 Trust and has been its Trustee since February 15, 2017. He previously served as the Chief Executive Officer and Trustee of European Commercial Real Estate Investment Trust. Mr. Burns served as Vice President of Investment Banking at The Goldman Sachs Group, Inc. He served as the Chief Executive Officer at CORESTATE Capital Holding S.A. since October 2013. Mr. Burns served as the Chief Executive Officer at Corestate Capital AG since February 2011 until October 2013 and was responsible for leading its business development and strategy and was actively involved in transaction execution. He served as a Financial Managing Director at Terra Firma Capital Partners Limited. Mr. Burns actively was involved in several transactions in multiple industry sectors including waste and infrastructure, real estate, credit and in particular, German residential real estate, where he led over €7.0 billion of acquisitions through Terra Firma Capital Partners’s portfolio company, Deutsche Annington. Mr. Burns was involved with raising three buy-out funds, including a fund dedicated to German residential real estate. He managed two acquisitions teams (London and Frankfurt) and ran its German office. Prior to joining it in 2002, he served as a Vice President of Investment Banking at Goldman Sachs, where he focused on mortgage finance, real estate, technology and general corporate finance. Over more than 20 years, he advised clients across a wide variety of strategic and financing transactions, including mergers and acquisitions and equity, debt and hybrid securities issuance. He also executed several mortgage finance transactions across North America as a Principal Lender and Agent, including single asset and portfolio loans and managed balance sheet exposure through securitizations, syndication and whole loan sales. He began his career as a Mergers and Acquisitions Corporate Attorney at Skadden, Arps Slate, Meagher & Flom. Mr. Burns was a practicing corporate attorney for Skadden, Arps, Slate, Meagher & Flom where he represented clients in corporate transactions including leveraged buyouts, equity and debt financings and trademark, copyright and computer software and technology licenses. He represented clients in multiple corporate transactions including leveraged buyouts, equity and debt financings and trademark, copyright and computer software and technology licenses. He has been a Director at Maple Knoll Capital Ltd. since June 2013. He serves as a Non-Executive Director of Irish Residential Properties REIT plc and served as its Independent Non-Executive Director since March 23, 2016. He served as a Director of FCC Recycling (UK) Ltd. He served as a Member of Supervisory Board at Vonovia SE since December 2, 2010. He served as a Member of Supervisory Board at Deutsche Annington Immobitien GmbH since December 2, 2010. Mr. Burns received a Juris Doctor, summa cum laude, from Syracuse University and a Bachelor of Science in Aerospace Engineering from the University of Michigan.

CEO Compensation
  • Insufficient data for Phillip to compare compensation growth.
  • Insufficient data for Phillip to establish whether their remuneration is reasonable compared to companies of similar size in Canada.
Management Team

Phillip Burns

TITLE
CEO & Trustee
AGE
50

Scott Cryer

TITLE
Chief Financial Officer
Board of Directors Tenure

Average tenure and age of the European Residential Real Estate Investment Trust board of directors in years:

1.2
Average Tenure
65
Average Age
  • The average tenure for the European Residential Real Estate Investment Trust board of directors is less than 3 years, this suggests a new board.
Board of Directors

Michael Stein

TITLE
Chair of the Board
AGE
68
TENURE
0.5 yrs

Phillip Burns

TITLE
CEO & Trustee
AGE
50
TENURE
2.4 yrs

Ira Gluskin

TITLE
AGE
76
TENURE
1.9 yrs

Jan Breure

TITLE
AGE
45
TENURE
2.4 yrs

Harold Burke

TITLE
AGE
72
TENURE
0.3 yrs

Gina Cody

TITLE
AGE
62
TENURE
0.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (CA$) Value (CA$)
X
Management checks
We assess European Residential Real Estate Investment Trust's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. European Residential Real Estate Investment Trust has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

ERE.UN News

Simply Wall St News

European Residential Real Estate Investment Trust (CVE:ERE.UN) Takes On Some Risk With Its Use Of Debt

We note that European Residential Real Estate Investment Trust (CVE:ERE.UN) does have debt on its balance sheet. … TSXV:ERE.UN Historical Debt, June 13th 2019 How Healthy Is European Residential Real Estate Investment Trust's Balance Sheet? … Because it carries more debt than cash, we think it's worth watching European Residential Real Estate Investment Trust's balance sheet over time.

Simply Wall St -

Can European Commercial Real Estate Investment Trust (CVE:ERE.UN) Improve Its Returns?

By way of learning-by-doing, we'll look at ROE to gain a better understanding European Commercial Real Estate Investment Trust (CVE:ERE.UN). … European Commercial Real Estate Investment Trust has a ROE of 6.4%, based on the last twelve months. … Check out our latest analysis for European Commercial Real Estate Investment Trust?

Simply Wall St -

How To Look At European Commercial Real Estate Investment Trust (CVE:ERE.UN)

European Commercial Real Estate Investment Trust is a CA$67.11m. … real estate investment trust (REIT) based in Toronto, Canada. … See our latest analysis for European Commercial Real Estate Investment Trust

Simply Wall St -

European Commercial Real Estate Investment Trust (TSXV:EREUN): Is Now The Time To Bet On Real Estate?

European Commercial Real Estate Investment Trust (TSXV:ERE.UN), a CADCA$65.18M small-cap, is a real estate company operating in an industry which remains the single largest sector globally, and has continued to play a key role in investor portfolios as an asset class. … TSXV:ERE.UN PE PEG Gauge Nov 22nd 17 The REIT industry is trading at a PE ratio of 12x, lower than the rest of the Canadian stock market PE of 17x. … Although it is expected to deliver lower growth on an industry level relative to the rest of the market, it is also trading at a PE below the average stock.

Simply Wall St -

ERE.UN Company Info

Description

ERES is an unincorporated, open-ended real estate investment trust. ERES is Canada's first European focused multi-residential REIT, with a focus on investing in high-quality multi-residential real estate properties in Europe. ERES currently owns a portfolio of multi-residential properties located in the Netherlands, two office properties in Germany and one office property in Belgium. ERES’ Units are listed on the TSXV under the symbol ERE.UN.

Details
Name: European Residential Real Estate Investment Trust
ERE.UN
Exchange: TSXV
Founded:
CA$676,587,666
CA$76,374,717
157,881,631
Website: http://www.eresreit.com
Address: European Residential Real Estate Investment Trust
11 Church Street,
Suite 401,
Toronto,
Ontario, M5E 1W1,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSXV ERE.UN Trust Units TSX Venture Exchange CA CAD 02. Apr 2019
Number of employees
Current staff
Staff numbers
0
European Residential Real Estate Investment Trust employees.
Industry
Residential REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 01:09
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/10
Last earnings filing: 2019/05/10
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.