RLE

Real Estate InvestorsAIM:RLE Stock Report

Market Cap

UK£71.8m

7D

-1.8%

1Y

42.9%

Updated

16 Sep, 2021

Data

Company Financials +
RLE fundamental analysis
Snowflake Score
Valuation3/6
Future Growth0/6
Past Performance0/6
Financial Health0/6
Dividends4/6

RLE Overview

Real Estate Investors Plc is a publicly quoted, internally managed property investment company and REIT with a portfolio of 1.59 million sq ft of mixed-use commercial property, managed by a highly-experienced property team with over 100 years of combined experience of operating in the Midlands property market across all sectors.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: RLE is not significantly more volatile than the rest of UK stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: RLE's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-1.8%

RLE

-0.7%

GB REITs

-0.2%

GB Market


1 Year Return

42.9%

RLE

27.9%

GB REITs

19.4%

GB Market

Return vs Industry: RLE exceeded the UK REITs industry which returned 26.5% over the past year.

Return vs Market: RLE exceeded the UK Market which returned 19.2% over the past year.


Shareholder returns

RLEIndustryMarket
7 Day-1.8%-0.7%-0.2%
30 Day-6.4%-2.1%-1.5%
90 Day3.9%6.8%1.3%
1 Year57.1%42.9%31.9%27.9%24.3%19.4%
3 Year-10.6%-29.8%12.8%13.9%17.6%4.5%
5 Year-7.2%-34.4%25.1%21.0%36.2%11.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Real Estate Investors Fundamentals Summary

How do Real Estate Investors's earnings and revenue compare to its market cap?
RLE fundamental statistics
Market CapUK£71.75m
Earnings (TTM)-UK£20.64m
Revenue (TTM)UK£16.43m

4.4x

P/S Ratio

-3.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
RLE income statement (TTM)
RevenueUK£16.43m
Cost of RevenueUK£1.40m
Gross ProfitUK£15.03m
ExpensesUK£35.67m
Earnings-UK£20.64m

Last Reported Earnings

Dec 31, 2020

Next Earnings Date

n/a

Earnings per share (EPS)-0.12
Gross Margin91.49%
Net Profit Margin-125.67%
Debt/Equity Ratio107.4%

How did RLE perform over the long term?

See historical performance and comparison

Dividends

7.5%

Current Dividend Yield

57%

Payout Ratio

Valuation

Is Real Estate Investors 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: RLE (£0.4) is trading below our estimate of fair value (£0.87)

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


Price To Earnings Ratio

PE vs Industry: RLE is unprofitable, so we can't compare its PE Ratio to the UK REITs industry average.

PE vs Market: RLE is unprofitable, so we can't compare its PE Ratio to the UK market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RLE is good value based on its PB Ratio (0.7x) compared to the GB REITs industry average (0.9x).


Future Growth

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

-0.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if RLE's forecast earnings growth is above the savings rate (0.9%).

Earnings vs Market: Insufficient data to determine if RLE's earnings are forecast to grow faster than the UK market

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

Revenue vs Market: RLE's revenue is expected to decline over the next 3 years (-0.6% per year).

High Growth Revenue: RLE's revenue is forecast to decline over the next 3 years (-0.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Real Estate Investors performed over the past 5 years?

-42.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: RLE is currently unprofitable.

Growing Profit Margin: RLE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: RLE is unprofitable, and losses have increased over the past 5 years at a rate of 42.9% per year.

Accelerating Growth: Unable to compare RLE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: RLE is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (46.5%).


Return on Equity

High ROE: RLE has a negative Return on Equity (-21.13%), as it is currently unprofitable.


Financial Health

How is Real Estate Investors's financial position?


Financial Position Analysis

Short Term Liabilities: RLE's short term assets (£12.4M) do not cover its short term liabilities (£52.9M).

Long Term Liabilities: RLE's short term assets (£12.4M) do not cover its long term liabilities (£59.3M).


Debt to Equity History and Analysis

Debt Level: RLE's debt to equity ratio (107.4%) is considered high.

Reducing Debt: RLE's debt to equity ratio has increased from 41.5% to 107.4% over the past 5 years.

Debt Coverage: RLE's debt is not well covered by operating cash flow (9.2%).

Interest Coverage: RLE's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Dividend

What is Real Estate Investors's current dividend yield, its reliability and sustainability?

7.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: RLE's dividend (7.5%) is higher than the bottom 25% of dividend payers in the UK market (1.32%).

High Dividend: RLE's dividend (7.5%) is in the top 25% of dividend payers in the UK market (4%)


Stability and Growth of Payments

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

Growing Dividend: RLE's dividend payments have increased, but the company has only paid a dividend for 9 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (56.7%), RLE's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RLE's dividends in 3 years are forecast to be covered by earnings (93% payout ratio).


Next Steps

Management

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

6.9yrs

Average board tenure


CEO

Paul Bassi (58 yo)

15.25yrs

Tenure

UK£752,000

Compensation

Mr. Paramjit Singh Bassi, CBE, DL, D. UNIV, DSc, also known as Paul, has been the Chief Executive Officer and Executive Director of Real Estate Investors Plc since June 29, 2006 and June 2006 respectively....


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD1.04M) is above average for companies of similar size in the UK market ($USD326.64K).

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


Board Members

Experienced Board: RLE's board of directors are considered experienced (6.9 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

Real Estate Investors plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Real Estate Investors plc
  • Ticker: RLE
  • Exchange: AIM
  • Founded: 2004
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: UK£71.751m
  • Shares outstanding: 179.38m
  • Website: https://www.reiplc.com

Number of Employees


Location

  • Real Estate Investors plc
  • 2nd Floor
  • 75–77 Colmore Row
  • Birmingham
  • East Lothian
  • B3 2AP
  • United Kingdom

Listings


Biography

Real Estate Investors Plc is a publicly quoted, internally managed property investment company and REIT with a portfolio of 1.59 million sq ft of mixed-use commercial property, managed by a highly-experien...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/16 21:32
End of Day Share Price2021/09/16 00:00
Earnings2020/12/31
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.