NZSE:IPL

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Investore Property Limited (Investore) is a commercial property ownership business that has been established to invest in quality Large Format Retail property assets. More Details


Snowflake Analysis

Proven track record with mediocre balance sheet.

Share Price & News

How has Investore Property's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: IPL is less volatile than 75% of NZ stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: IPL's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

-4.1%

IPL

-0.8%

NZ REITs

0.5%

NZ Market


1 Year Return

16.9%

IPL

-7.1%

NZ REITs

5.6%

NZ Market

Return vs Industry: IPL exceeded the NZ REITs industry which returned -7.1% over the past year.

Return vs Market: IPL exceeded the NZ Market which returned 5.6% over the past year.


Shareholder returns

IPLIndustryMarket
7 Day-4.1%-0.8%0.5%
30 Day-8.4%-5.6%-6.1%
90 Day-5.9%-4.6%-2.1%
1 Year21.5%16.9%-3.9%-7.1%9.3%5.6%
3 Year74.8%49.6%50.3%31.8%45.6%27.5%
5 Yearn/a64.7%30.8%87.2%43.1%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Investore Property undervalued compared to its fair value and its price relative to the market?

6.17x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IPL (NZ$2.08) is trading above our estimate of fair value (NZ$1.08)

Significantly Below Fair Value: IPL is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: IPL is good value based on its PE Ratio (6.2x) compared to the NZ REITs industry average (14.1x).

PE vs Market: IPL is good value based on its PE Ratio (6.2x) compared to the NZ market (23.7x).


Price to Earnings Growth Ratio

PEG Ratio: IPL's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: IPL's PB Ratio (1.1x) is in line with the NZ REITs industry average.


Next Steps

Future Growth

How is Investore Property forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-40.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IPL's earnings are forecast to decline over the next 3 years (-40.6% per year).

Earnings vs Market: IPL's earnings are forecast to decline over the next 3 years (-40.6% per year).

High Growth Earnings: IPL's earnings are forecast to decline over the next 3 years.

Revenue vs Market: IPL's revenue (2.8% per year) is forecast to grow slower than the NZ market (6.8% per year).

High Growth Revenue: IPL's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IPL's Return on Equity is forecast to be low in 3 years time (4.2%).


Next Steps

Past Performance

How has Investore Property performed over the past 5 years?

25.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IPL has a large one-off gain of NZ$90.6M impacting its September 30 2020 financial results.

Growing Profit Margin: IPL's current net profit margins are higher than last year (72.4%).


Past Earnings Growth Analysis

Earnings Trend: IPL's earnings have grown significantly by 25.3% per year over the past 5 years.

Accelerating Growth: IPL's earnings growth over the past year (175.1%) exceeds its 5-year average (25.3% per year).

Earnings vs Industry: IPL earnings growth over the past year (175.1%) exceeded the REITs industry -20.4%.


Return on Equity

High ROE: IPL's Return on Equity (15.3%) is considered low.


Next Steps

Financial Health

How is Investore Property's financial position?


Financial Position Analysis

Short Term Liabilities: IPL's short term assets (NZ$7.0M) exceed its short term liabilities (NZ$5.4M).

Long Term Liabilities: IPL's short term assets (NZ$7.0M) do not cover its long term liabilities (NZ$298.0M).


Debt to Equity History and Analysis

Debt Level: IPL's debt to equity ratio (39.4%) is considered satisfactory.

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

Debt Coverage: IPL's debt is not well covered by operating cash flow (6.6%).

Interest Coverage: IPL's interest payments on its debt are well covered by EBIT (3.3x coverage).


Balance Sheet


Next Steps

Dividend

What is Investore Property current dividend yield, its reliability and sustainability?

3.65%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IPL's dividend (3.65%) is higher than the bottom 25% of dividend payers in the NZ market (2.56%).

High Dividend: IPL's dividend (3.65%) is low compared to the top 25% of dividend payers in the NZ market (4.39%).


Stability and Growth of Payments

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

Growing Dividend: IPL's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (134.7%), IPL's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IPL's dividends in 3 years are forecast to be covered by earnings (92.4% payout ratio).


Next Steps

Management

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

4.8yrs

Average board tenure


CEO

Philip Littlewood

no data

Tenure

Mr. Philip Littlewood, BProp, BCom, MBA, has been Chief Executive Officer of Stride Stapled Group since June 27, 2017. Mr. Littlewood serves Chief Executive Officer of Stride Investment Management Limited ...


Board Members

NamePositionTenureCompensationOwnership
Adrian Walker
Independent Director0.83yrno datano data
Gráinne Troute
Independent Non-Executive Director2.92yrsNZ$49.16k0.0089%
NZ$ 68.4k
Timothy Ian Storey
Non-Executive Director5.42yrsNZ$43.75k0.014%
NZ$ 104.5k
Michael Allen
Independent Chairman of the Board4.75yrsNZ$81.25k0.015%
NZ$ 118.8k
Edward Harvey
Non-Executive Director5.42yrsNZ$43.75k0.014%
NZ$ 104.5k

4.8yrs

Average Tenure

Experienced Board: IPL's board of directors are considered experienced (4.8 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 been diluted in the past year, with total shares outstanding growing by 20.9%.


Top Shareholders

Company Information

Investore Property Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Investore Property Limited
  • Ticker: IPL
  • Exchange: NZSE
  • Founded: 2015
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: NZ$773.084m
  • Shares outstanding: 368.14m
  • Website: https://www.investoreproperty.co.nz

Location

  • Investore Property Limited
  • 34 Shortland Street
  • Level 12
  • Auckland
  • 1010
  • New Zealand

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IPLNZSE (New Zealand Stock Exchange)YesOrdinary SharesNZNZDJul 2016

Biography

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 2...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/05 06:02
End of Day Share Price2021/03/05 00:00
Earnings2020/09/30
Annual Earnings2020/03/31


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.