LSE:PRSR

Stock Analysis Report

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Executive Summary

The PRS REIT plc is a closed-ended real estate investment trust established to invest in the Private Rented Sector and to provide shareholders with an attractive level of income together with the potential for capital and income growth. More Details


Snowflake Analysis

High growth potential and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-2.7%

PRSR

3.1%

GB REITs

0.1%

GB Market


1 Year Return

-19.6%

PRSR

-19.2%

GB REITs

-15.4%

GB Market

Return vs Industry: PRSR matched the UK REITs industry which returned -19.2% over the past year.

Return vs Market: PRSR underperformed the UK Market which returned -15.4% over the past year.


Shareholder returns

PRSRIndustryMarket
7 Day-2.7%3.1%0.1%
30 Day-11.4%4.4%1.1%
90 Day-3.2%-18.1%-2.0%
1 Year-15.4%-19.6%-22.1%-19.2%-12.1%-15.4%
3 Year-20.6%-31.7%-9.2%-8.6%-8.4%-19.7%
5 Yearn/a-15.9%-20.1%16.4%-9.7%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

29.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRSR (£0.72) is trading below our estimate of fair value (£1.02)

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


Price To Earnings Ratio

PE vs Industry: PRSR is poor value based on its PE Ratio (21.7x) compared to the GB REITs industry average (16.6x).

PE vs Market: PRSR is poor value based on its PE Ratio (21.7x) compared to the UK market (18.3x).


Price to Earnings Growth Ratio

PEG Ratio: PRSR is good value based on its PEG Ratio (0.7x)


Price to Book Ratio

PB vs Industry: PRSR's PB Ratio (0.8x) is in line with the GB REITs industry average.


Next Steps

Future Growth

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

31.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRSR's forecast earnings growth (31.9% per year) is above the savings rate (1.2%).

Earnings vs Market: PRSR's earnings (31.9% per year) are forecast to grow faster than the UK market (24.1% per year).

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

Revenue vs Market: PRSR's revenue (30.4% per year) is forecast to grow faster than the UK market (6% per year).

High Growth Revenue: PRSR's revenue (30.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PRSR's Return on Equity is forecast to be low in 3 years time (4%).


Next Steps

Past Performance

How has PRS REIT performed over the past 5 years?

12.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: PRSR has a large one-off gain of £15.8M impacting its June 30 2020 financial results.

Growing Profit Margin: PRSR's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if PRSR's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare PRSR's past year earnings growth to its 5-year average.

Earnings vs Industry: PRSR earnings growth over the past year (12.5%) exceeded the REITs industry -20.8%.


Return on Equity

High ROE: PRSR's Return on Equity (3.5%) is considered low.


Next Steps

Financial Health

How is PRS REIT's financial position?


Financial Position Analysis

Short Term Liabilities: PRSR's short term assets (£63.0M) exceed its short term liabilities (£19.3M).

Long Term Liabilities: PRSR's short term assets (£63.0M) do not cover its long term liabilities (£149.8M).


Debt to Equity History and Analysis

Debt Level: PRSR's debt to equity ratio (30.8%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if PRSR's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: PRSR's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: PRSR's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet


Next Steps

Dividend

What is PRS REIT current dividend yield, its reliability and sustainability?

5.56%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: PRSR's dividend (5.56%) is higher than the bottom 25% of dividend payers in the UK market (1.81%).

High Dividend: PRSR's dividend (5.56%) is in the top 25% of dividend payers in the UK market (5.24%)


Stability and Growth of Payments

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

Growing Dividend: PRSR has only been paying a dividend for 3 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: PRSR is paying a dividend but the company is unprofitable.


Future Payout to Shareholders

Future Dividend Coverage: PRSR's dividends in 3 years are forecast to be covered by earnings (95.8% payout ratio).


Next Steps

Management

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

3.5yrs

Average board tenure


CEO

Graham Barnet (57 yo)

no data

Tenure

Graham Barnet is an Architect of the Sigma PRS model and co-founded and created Winchburgh development. Qualified corporate lawyer with significant merchant banking experience in Noble Grossart Limited and ...


Board Members

NamePositionTenureCompensationOwnership
Roderick MacRae
Independent Non-Executive Director3.5yrsUK£35.00k0.020%
£ 72.0k
David Francis
Independent Non-Executive Director3.5yrsUK£30.00k0.012%
£ 43.2k
Aubyn James Prower
Independent Non Executive Director1.42yrsUK£30.00k0.0044%
£ 15.8k
Stephen Smith
Independent Non-Executive Chairman3.5yrsUK£45.00k0.016%
£ 57.6k

3.5yrs

Average Tenure

64.5yo

Average Age

Experienced Board: PRSR's board of directors are considered experienced (3.5 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

The PRS REIT plc's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: The PRS REIT plc
  • Ticker: PRSR
  • Exchange: LSE
  • Founded:
  • Industry: Residential REITs
  • Sector: Real Estate
  • Market Cap: UK£356.600m
  • Shares outstanding: 495.28m
  • Website: https://www.theprsreit.com

Location

  • The PRS REIT plc
  • 1 St. Ann Street
  • Floor 3
  • Manchester
  • Greater Manchester
  • M2 7LR
  • United Kingdom

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRSRLSE (London Stock Exchange)YesOrdinary SharesGBGBPMay 2017
PRSRLBATS-CHIXE (BATS 'Chi-X Europe')YesOrdinary SharesGBGBPMay 2017

Biography

The PRS REIT plc is a closed-ended real estate investment trust established to invest in the Private Rented Sector and to provide shareholders with an attractive level of income together with the potential ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/24 21:05
End of Day Share Price2020/10/23 00:00
Earnings2020/06/30
Annual Earnings2020/06/30


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.