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Investore Property

NZSE:IPL
Snowflake Description

Second-rate dividend payer and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
IPL
NZSE
NZ$492M
Market Cap
  1. Home
  2. NZ
  3. Real Estate
Company description

Investore Property Limited (Investore) is a commercial property ownership business that has been established to invest in quality Large Format Retail property assets. The last earnings update was 59 days ago. More info.


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IPL Share Price and Events
7 Day Returns
0%
NZSE:IPL
0.1%
NZ REITs
0.1%
NZ Market
1 Year Returns
23.8%
NZSE:IPL
27%
NZ REITs
12.9%
NZ Market
IPL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Investore Property (IPL) 0% 2.7% 14.7% 23.8% 12% -
NZ REITs 0.1% 5.5% 12.6% 27% 24.5% 59.9%
NZ Market 0.1% 4.4% 6.1% 12.9% 27.6% 56.5%
1 Year Return vs Industry and Market
  • IPL underperformed the REITs industry which returned 27% over the past year.
  • IPL outperformed the Market in New Zealand which returned 12.9% over the past year.
Price Volatility
IPL
Industry
5yr Volatility vs Market

Value

 Is Investore Property 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 Investore Property 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 Investore Property.

NZSE:IPL 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 5 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year NZ Government Bond Rate 2.4%

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 NZSE:IPL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year NZ Govt Bond Rate 2.4%
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- 28%) (65.34%))
0.799
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)
= 2.37% + (0.8 * 5.96%)
7.14%

Discounted Cash Flow Calculation for NZSE:IPL using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for Investore Property 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.

Investore Property 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.

NZSE:IPL DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (NZD, Millions) Source Present Value
Discounted (@ 7.14%)
2020 19.40 Analyst x1 18.11
2021 19.90 Analyst x1 17.34
2022 20.55 Est @ 3.25% 16.71
2023 21.16 Est @ 2.99% 16.06
2024 21.75 Est @ 2.8% 15.41
2025 22.34 Est @ 2.67% 14.77
2026 22.91 Est @ 2.58% 14.14
2027 23.49 Est @ 2.52% 13.53
2028 24.07 Est @ 2.47% 12.94
2029 24.66 Est @ 2.44% 12.37
Present value of next 10 years cash flows NZ$151.38
NZSE:IPL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= NZ$24.66 × (1 + 2.37%) ÷ (7.14% – 2.37%)
NZ$529.42
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= NZ$529.42 ÷ (1 + 7.14%)10
NZ$265.69
NZSE:IPL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= NZ$151.38 + NZ$265.69
NZ$417.07
Equity Value per Share
(NZD)
= Total value / Shares Outstanding
= NZ$417.07 / 260.08
NZ$1.6
NZSE:IPL Discount to Share Price
Calculation Result
Value per share (NZD) From above. NZ$1.60
Current discount Discount to share price of NZ$1.87
= -1 x (NZ$1.87 - NZ$1.60) / NZ$1.60
-16.6%

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

  • The current share price of Investore Property 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 Investore Property's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Investore Property's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NZSE:IPL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in NZD NZ$0.15
NZSE:IPL Share Price ** NZSE (2019-07-19) in NZD NZ$1.87
New Zealand REITs Industry PE Ratio Median Figure of 10 Publicly-Listed REITs Companies 11.42x
New Zealand Market PE Ratio Median Figure of 89 Publicly-Listed Companies 17.77x

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

** Primary Listing of Investore Property.

NZSE:IPL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NZSE:IPL Share Price ÷ EPS (both in NZD)

= 1.87 ÷ 0.15

12.65x

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

  • Investore Property is overvalued based on earnings compared to the NZ REITs industry average.
  • Investore Property is good value based on earnings compared to the New Zealand market.
Price based on expected Growth
Does Investore Property's expected growth come at a high price?
Raw Data
NZSE:IPL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 12.65x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
-15%per year
New Zealand REITs Industry PEG Ratio Median Figure of 10 Publicly-Listed REITs Companies -0.87x
New Zealand Market PEG Ratio Median Figure of 64 Publicly-Listed Companies 1.41x

*Line of best fit is calculated by linear regression .

NZSE:IPL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 12.65x ÷ -15%

-0.84x

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

  • Investore Property earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Investore Property's assets?
Raw Data
NZSE:IPL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in NZD NZ$1.70
NZSE:IPL Share Price * NZSE (2019-07-19) in NZD NZ$1.87
New Zealand REITs Industry PB Ratio Median Figure of 10 Publicly-Listed REITs Companies 1.17x
New Zealand Market PB Ratio Median Figure of 127 Publicly-Listed Companies 1.58x
NZSE:IPL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NZSE:IPL Share Price ÷ Book Value per Share (both in NZD)

= 1.87 ÷ 1.70

1.1x

* Primary Listing of Investore Property.

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

  • Investore Property is good value based on assets compared to the NZ REITs industry average.
X
Value checks
We assess Investore Property'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. Investore Property has a total score of 2/6, 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.

Future Performance

 How is Investore Property expected to perform in the next 1 to 3 years based on estimates from 5 analysts?

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
-15%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Investore Property expected to grow at an attractive rate?
  • Investore Property's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.4%.
Growth vs Market Checks
  • Investore Property's earnings are expected to decrease over the next 1-3 years, this is below the New Zealand market average.
  • Investore Property's revenues are expected to decrease over the next 1-3 years, this is below the New Zealand market average.
Annual Growth Rates Comparison
Raw Data
NZSE:IPL Future Growth Rates Data Sources
Data Point Source Value (per year)
NZSE:IPL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts -15%
NZSE:IPL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts -4.1%
New Zealand REITs Industry Earnings Growth Rate Market Cap Weighted Average -14.8%
New Zealand REITs Industry Revenue Growth Rate Market Cap Weighted Average 1.5%
New Zealand Market Earnings Growth Rate Market Cap Weighted Average 7.7%
New Zealand Market Revenue Growth Rate Market Cap Weighted Average 4.3%

*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
NZSE:IPL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in NZD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NZSE:IPL Future Estimates Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-03-31 48 22 24 4
2021-03-31 48 22 25 5
2020-03-31 47 21 25 4
NZSE:IPL Past Financials Data
Date (Data in NZD Millions) Revenue Cash Flow Net Income *
2019-03-31 55 21 39
2018-12-31 54 23 42
2018-09-30 50 25 45
2018-06-30 48 23 45
2018-03-31 50 21 46
2017-12-31 49 21 42
2017-09-30 48 21 38
2017-06-30 43 20 33
2017-03-31 37 18 29

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Investore Property's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Investore Property's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.
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
NZSE:IPL 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 5 Analyst Estimates (S&P Global) See Below

All data from Investore Property Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:IPL Future Estimates Data
Date (Data in NZD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-03-31 0.09 0.09 0.08 2.00
2021-03-31 0.10 0.12 0.08 3.00
2020-03-31 0.09 0.12 0.08 3.00
NZSE:IPL Past Financials Data
Date (Data in NZD Millions) EPS *
2019-03-31 0.15
2018-12-31 0.16
2018-09-30 0.17
2018-06-30 0.17
2018-03-31 0.18
2017-12-31 0.16
2017-09-30 0.15
2017-06-30 0.15
2017-03-31 0.15

*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.
  • Investore Property is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Investore Property'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 New Zealand market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the New Zealand 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.
Investore Property has a total score of 0/6, 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.

Past Performance

  How has Investore Property 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 Investore Property'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.
  • Insufficient data to establish if Investore Property's year on year earnings growth rate was positive over the past 5 years.
  • Investore Property's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Investore Property's 1-year earnings growth is negative, it can't be compared to the NZ REITs industry average.
Earnings and Revenue History
Investore Property'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 Investore Property Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NZSE:IPL Past Revenue, Cash Flow and Net Income Data
Date (Data in NZD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 54.67 38.56 1.97
2018-12-31 53.74 41.54 1.89
2018-09-30 49.67 44.52 1.82
2018-06-30 48.46 45.34 1.79
2018-03-31 50.39 46.17 1.77
2017-12-31 49.29 41.99 1.59
2017-09-30 48.19 37.80 1.41
2017-06-30 42.80 33.16 1.26
2017-03-31 37.40 28.52 1.11
2016-03-31 15.44 5.95 0.37

*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.
  • Investore Property has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Investore Property used its assets less efficiently than the NZ REITs industry average last year based on Return on Assets.
  • Investore Property's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Investore Property'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.
Investore Property has a total score of 0/6, 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.

Health

 How is Investore Property'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 Investore Property's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Investore Property is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Investore Property's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Investore Property'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 Investore Property Company Filings, last reported 3 months ago.

NZSE:IPL Past Debt and Equity Data
Date (Data in NZD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 443.21 321.17 5.11
2018-12-31 443.21 321.17 5.11
2018-09-30 426.00 312.88 2.79
2018-06-30 426.00 312.88 2.79
2018-03-31 429.06 307.78 2.20
2017-12-31 429.06 307.78 2.20
2017-09-30 405.10 260.37 2.49
2017-06-30 405.10 260.37 2.49
2017-03-31 405.03 260.25 4.38
2016-03-31 0.02 286.49 0.03
  • Investore Property's level of debt (72.5%) compared to net worth is high (greater than 40%).
  • Unable to establish if Investore Property's debt level has increased without past 5-year debt data.
  • Debt is not well covered by operating cash flow (6.6%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.9x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess Investore Property'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. Investore Property has a total score of 1/6, 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.

Dividends

 What is Investore Property'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
4.06%
Current annual income from Investore Property dividends. Estimated to be 4.12% next year.
If you bought NZ$2,000 of Investore Property shares you are expected to receive NZ$81 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?
  • Investore Property's pays a higher dividend yield than the bottom 25% of dividend payers in New Zealand (3.29%).
  • Investore Property's dividend is below the markets top 25% of dividend payers in New Zealand (5.8%).
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
NZSE:IPL 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 5 Analyst Estimates (S&P Global) See Below
New Zealand REITs Industry Average Dividend Yield Market Cap Weighted Average of 10 Stocks 3.8%
New Zealand Market Average Dividend Yield Market Cap Weighted Average of 73 Stocks 3.6%
New Zealand Minimum Threshold Dividend Yield 10th Percentile 2.3%
New Zealand Bottom 25% Dividend Yield 25th Percentile 3.3%
New Zealand Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

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

NZSE:IPL Future Dividends Estimate Data
Date (Data in NZ$) Dividend per Share (annual) Avg. No. Analysts
2022-03-31 0.08 4.00
2021-03-31 0.08 5.00
2020-03-31 0.08 4.00
NZSE:IPL Past Annualized Dividends Data
Date (Data in NZ$) Dividend per share (annual) Avg. Yield (%)
2019-05-21 0.076 4.180
2018-05-28 0.075 4.835
2018-02-26 0.075 5.281
2017-11-22 0.075 5.178
2017-09-07 0.075 5.526
2017-05-29 0.082 6.031
2017-02-23 0.076 5.760
2016-11-16 0.051 3.691

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

  • Investore Property has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Dividend payments have increased, but Investore Property only paid a dividend in the past 3 years.
Current Payout to shareholders
What portion of Investore Property's earnings are paid to the shareholders as a dividend.
  • Dividends paid are covered by earnings (1.1x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1.1x coverage).
X
Income/ dividend checks
We assess Investore Property's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 2.3%) - 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 Investore Property afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Investore Property has a total score of 3/6, see the detailed checks below.


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

Management

 What is the CEO of Investore Property'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
Philip Littlewood
CEO Bio

Mr. Philip Littlewood has been Chief Executive Officer of Stride Stapled Group since June 27, 2017. Mr. Littlewood serves Chief Executive Officer of Stride Investment Management Limited at Investore Property Limited and served as it’s as General Manager of Investment Management of Stride Investment Management Limited and responsible for Investment management, research and strategy. He served as General Manager of Investment Management at Stride Stapled Group until June 27, 2017. Mr. Littlewood joined Stride in May 2014. Prior to DNZ, he was employed with EY NZ in its Transaction Advisory Services team. He spent seven years where he served as an Associate in Morgan Stanley’s real estate investment banking division and subsequently became a Partner in a large private-equity real estate firm where he was responsible for transactions and investment management. Prior to leaving Newzealand, he served as an Investment Manager at AMP Capital Investors. He has more than 14 years experience in property investment management and advisory. He holds a Bachelor of Property and a Bachelor of Commerce in Finance and Economics from the University of Auckland and an MBA from Imperial College London.

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

Philip Littlewood

TITLE
Chief Executive Officer of Stride Investment Management Limited

Jennifer Whooley

TITLE
Chief Financial Officer of Stride Investment Management Limited
Board of Directors Tenure

Average tenure of the Investore Property board of directors in years:

3.4
Average Tenure
  • The tenure for the Investore Property board of directors is about average.
Board of Directors

Mike Allen

TITLE
Independent Chairman of the Board
COMPENSATION
NZ$70K
AGE
58
TENURE
3.1 yrs

Gráinne Troute

TITLE
Independent Non-Executive Director
COMPENSATION
NZ$38K
TENURE
1.3 yrs

Tim Storey

TITLE
Non-Executive Director
COMPENSATION
NZ$40K
AGE
61
TENURE
3.8 yrs

Edward Harvey

TITLE
Non-Executive Director
COMPENSATION
NZ$40K
TENURE
3.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (NZ$) Value (NZ$)
X
Management checks
We assess Investore Property'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. Investore Property 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.

News

Simply Wall St News

Is Investore Property Limited's (NZSE:IPL) 4.1% Dividend Sustainable?

Today we'll take a closer look at Investore Property Limited (NZSE:IPL) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. Investore Property pays a 4.1% dividend yield, and has been paying dividends for the past three years. A 4.1% yield does look good. Could the short payment history hint at future dividend growth? The company also bought back stock equivalent to around 0.6% of market capitalisation this year. Some simple analysis can reduce the risk of holding Investore Property for its dividend, and we'll focus on the most important aspects below. Explore this interactive chart for our latest analysis on Investore Property! NZSE:IPL Historical Dividend Yield, June 21st 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Investore Property paid out 93% of its profit as dividends, over the trailing twelve month period. It's paying out most of its earnings, which limits the amount that can be reinvested in the business. This may indicate limited need for further capital within the business, or highlight a commitment to paying a dividend. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Investore Property paid out 93% of its cash flow last year. This may be sustainable but it does not leave much of a buffer for unexpected circumstances. It's positive to see that Investore Property's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Is Investore Property's Balance Sheet Risky? As Investore Property has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. Net debt to EBITDA is a measure of a company's total debt. Net interest cover measures the ability to meet interest payments on debt. Essentially we check that a) a company does not have too much debt, and b) that it can afford to pay the interest. … Conclusion To summarise, shareholders should always check that Investore Property's dividends are affordable, that its dividend payments are relatively stable, and that it has decent prospects for growing its earnings and dividend. … Investore Property's is paying out more than half its income as dividends, but at least the dividend is covered by both reported earnings and cashflow.

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Why It Might Not Make Sense To Buy Investore Property Limited (NZSE:IPL) For Its Next Dividend

See our latest analysis for Investore Property Dividends are usually paid out of company profits, so if a company pays out more than it earned then its dividend is usually at greater risk of being cut. … That said, even highly profitable companies sometimes might not generate enough cash to pay the dividend, which is why we should always check if the dividend is covered by cash flow. … Investore Property is already paying out a high percentage of its income, so without earnings growth, we're doubtful of whether this dividend will grow much in the future.

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Should Investore Property (NZSE:IPL) Be Disappointed With Their 16% Profit?

For example, the Investore Property Limited (NZSE:IPL) share price is up 16% in the last year, clearly besting than the market return of around 11% (not including dividends). … View our latest analysis for Investore Property To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it's a weighing machine. … During the last year Investore Property grew its earnings per share (EPS) by 14%.

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Does Investore Property (NZSE:IPL) Deserve A Spot On Your Watchlist?

In the age of tech-stock blue-sky investing, my choice may seem old fashioned; I still prefer profitable companies like Investore Property (NZSE:IPL). … In the last three years Investore Property's earnings per share took off like a rocket; fast, and from a low base. … I like to take a look at earnings before interest and (EBIT) tax margins, as well as revenue growth, to get another take on the quality of the company's growth.

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Investore Property Limited (NZSE:IPL) Has A ROE Of 10%

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … That means that for every NZ$1 worth of shareholders' equity, it generated NZ$0.10 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

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Is Investore Property Limited (NZSE:IPL) Spending Too Much Money?

If you are currently a shareholder in Investore Property Limited (NZSE:IPL), or considering investing in the stock, you need to examine how the business generates cash, and how it is reinvested. … I’ve analysed below, the health and outlook of Investore Property’s cash flow, which will help you understand the stock from a cash standpoint. … Investore Property’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure.

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What Kind Of Shareholders Own Investore Property Limited (NZSE:IPL)?

A look at the shareholders of Investore Property Limited (NZSE:IPL) can tell us which group is most powerful. … Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. … Investore Property is not a large company by global standards.

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Investore Property Limited (NZSE:IPL) Has A ROE Of 10%

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Another way to think of that is that for every NZ$1 worth of equity in the company, it was able to earn NZ$0.10. … Return on Equity = Net Profit ÷ Shareholders' Equity

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Why You Should Care About Investore Property Limited’s (NZSE:IPL) Cash Levels

Two important questions to ask before you buy Investore Property Limited (NZSE:IPL) is, how it makes money and how it spends its cash. … Investore Property generates cash through its day-to-day business, which needs to be reinvested into the company in order for it to continue operating. … There are two methods I will use to evaluate the quality of Investore Property’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

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Investing In Investore Property Limited (NZSE:IPL): What You Need To Know

Investore Property Limited is a NZ$396m. … REITs own and operate income-generating property and adhere to a different set of regulations. … This term is very common in the REIT investing world as it provides a cleaner look at its cash flow from daily operations by excluding impact of one-off activities or non-cash items such as depreciation.

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Company Info

Description

Investore Property Limited (Investore) is a commercial property ownership business that has been established to invest in quality Large Format Retail property assets. Investore was established in October 2015 in connection with the acquisition of 19 Countdown supermarkets from Antipodean Supermarkets Limited and Antipodean Properties Limited. The transfer of six properties from Stride Property Limited (Stride) and Stride Holdings Limited to Investore took place between 29 April and 9 June 2016 by way of sale and purchase agreements for cash consideration equal to the most recently obtained independent valuation of the properties transferred (in each case, 31 March 2016). In June 2016, Investore entered into a sale and purchase agreement to acquire 14 Countdown supermarkets from Shopping Centres Australasia Property Group Trustee NZ Limited (the SCA Acquisition). Settlement of six properties occurred on 12 July 2016, with the other eight properties expected to settle in September 2016. Investore's investment strategy is focused on Large Format Retail property assets. Large Format Retail means a single-storey or low level property comprising retail shops and outlets and car parking areas with more than 50% of the property generally occupied by, and more than 50% of the rental generally provided by, a single major tenant or a limited number of major tenants under net leases. Investore believes that Large Format Retail assets have a specific, differentiating set of attributes that can provide a reliable income return to shareholders.

Details
Name: Investore Property Limited
IPL
Exchange: NZSE
Founded: 2015
NZ$491,542,908
260,075,613
Website: http://www.investoreproperty.co.nz
Address: Investore Property Limited
34 Shortland Street,
Level 12,
Auckland,
1010,
New Zealand
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NZSE IPL Ordinary Shares New Zealand Stock Exchange NZ NZD 12. Jul 2016
Number of employees
Current staff
Staff numbers
0
Investore Property employees.
Industry
Retail REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 10:37
End of day share price update: 2019/07/19 00:00
Last estimates confirmation: 2019/07/17
Last earnings filing: 2019/05/21
Last earnings reported: 2019/03/31
Last annual earnings reported: 2019/03/31


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.