LSE:PRSR

Stock Analysis Report

Executive Summary

The PRS REIT 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.

Snowflake

Fundamentals

High growth potential second-rate dividend payer.

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.5%

PRSR

2.5%

GB REITs

-0.4%

GB Market


1 Year Return

-12.0%

PRSR

6.8%

GB REITs

2.9%

GB Market

Return vs Industry: PRSR underperformed the UK REITs industry which returned 6.8% over the past year.

Return vs Market: PRSR underperformed the UK Market which returned 2.9% over the past year.


Shareholder returns

PRSRIndustryMarket
7 Day1.5%2.5%-0.4%
30 Day2.3%7.4%-1.4%
90 Day-7.7%9.1%-2.1%
1 Year-7.3%-12.0%11.6%6.8%7.9%2.9%
3 Yearn/a28.2%10.1%18.0%3.6%
5 Yearn/a40.2%12.4%35.8%6.4%

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?

30.42x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate PRSR's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate PRSR's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: PRSR is poor value based on its PE Ratio (30.4x) compared to the REITs industry average (13.7x).

PE vs Market: PRSR is poor value based on its PE Ratio (30.4x) compared to the UK market (16.7x).


Price to Earnings Growth Ratio

Low PEG Ratio: PRSR is good value based on its PEG Ratio (0.9x)


Price to Book Ratio

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


Next Steps

Future Growth

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

35.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PRSR's forecast earnings growth (35.4% per year) is above the savings rate (1.2%).

Earnings vs Market: PRSR's earnings (35.4% per year) are forecast to grow faster than the UK market (12.6% per year).

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

Revenue vs Market: PRSR's revenue (54.2% per year) is forecast to grow faster than the UK market (3.9% per year).

High Growth Revenue: PRSR's revenue (54.2% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has PRS REIT performed over the past 5 years?

387.7%

Last years earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: Unable to establish if PRSR'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.

Accelerating Growth: Unable to compare PRSR's past year earnings growth to its 5-year average as it has been trading publicly for less than 3 years.

Earnings vs Industry: PRSR earnings growth over the past year (387.7%) exceeded the REITs industry -16.8%.


Return on Equity

High ROE: PRSR's Return on Equity (3.1%) is considered low.


Return on Assets

ROA vs Industry: PRSR's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: PRSR is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is PRS 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: PRSR has a high level of physical assets or inventory.

Debt Coverage by Assets: PRSR's debt is covered by short term assets (assets are 2.354140x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

  • Explore more healthy companies in the Real Estate industry.

Dividend

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

5.59%

Current Dividend Yield


Dividend Yield vs Market

company5.6%marketbottom25%2.0%markettop25%5.4%industryaverage4.0%forecastin3Years5.8%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: PRSR's dividend (5.59%) is higher than the bottom 25% of dividend payers in the UK market (2.01%).

High Dividend: PRSR's dividend (5.59%) is in the top 25% of dividend payers in the UK market (5.36%)

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 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (7187.6%), PRSR's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PRSR's dividends in 3 years are forecast to be covered by earnings (95.1% payout ratio).


Next Steps

Management

What is the CEO of PRS REIT's salary, the management and board of directors tenure and is there insider trading?

2.5yrs

Average board tenure


CEO

Graham Barnet (56yo)

0yrs

Tenure

0

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 Age and Tenure

2.5yrs

Average Tenure

63.5yo

Average Age

Experienced Board: PRSR's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUK£18,90028 Jun 19
David Francis
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director
Shares20,000
Max PriceUK£0.94

Ownership Breakdown


Management Team

  • Graham Barnet (56yo)

    Founder & CEO

    • Tenure: 0yrs
  • Malcolm Briselden (51yo)

    Finance Director

    • Tenure: 0yrs
  • Peter Young

    Director Residential Asset Management

    • Tenure: 0yrs
  • Mike Scott (46yo)

    Corporate Development Director & Group Legal Counsel

    • Tenure: 0yrs

Board Members

  • Rod MacRae (55yo)

    Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£20.00k
  • David Francis (64yo)

    Non-Executive Director

    • Tenure: 2.5yrs
    • Compensation: UK£18.00k
  • Jim Prower (63yo)

    Non Executive Director

    • Tenure: 0.4yrs
  • Steve Smith (66yo)

    Non-Executive Chairman

    • Tenure: 2.5yrs
    • Compensation: UK£26.00k

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£443.273m
  • 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

Biography

The PRS REIT 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 ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/19 21:51
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2019/06/30


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.