NYSE:CXP

Stock Analysis Report

Columbia Property Trust

Executive Summary

Columbia Property Trust (NYSE: CXP) creates value through owning, operating and developing Class-A office buildings in high-barrier U.S.

Rewards

Trading at 35.2% below its fair value

Earnings are forecast to grow 15.41% per year

Earnings grew by 1158.2% over the past year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Highwoods Properties

NYSE:HIW

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.9%

CXP

0.8%

US REITs

-1.2%

US Market


1 Year Return

3.2%

CXP

17.3%

US REITs

22.3%

US Market

Return vs Industry: CXP underperformed the US REITs industry which returned 17.9% over the past year.

Return vs Market: CXP underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

CXPIndustryMarket
7 Day-0.9%0.8%-1.2%
30 Day5.7%3.4%1.6%
90 Day8.9%1.5%8.8%
1 Year7.2%3.2%22.2%17.3%25.0%22.3%
3 Year10.4%-1.3%38.0%20.6%49.9%40.3%
5 Year10.6%-10.9%49.6%18.7%77.6%58.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

32.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CXP ($21.15) is trading below our estimate of fair value ($32.65)

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


Price To Earnings Ratio

PE vs Industry: CXP is poor value based on its PE Ratio (69.1x) compared to the REITs industry average (37.8x).

PE vs Market: CXP is poor value based on its PE Ratio (69.1x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: CXP is poor value based on its PEG Ratio (4.5x)


Price to Book Ratio

PB vs Industry: CXP is good value based on its PB Ratio (0.9x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

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

15.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CXP's forecast earnings growth (15.4% per year) is above the savings rate (1.7%).

Earnings vs Market: CXP's earnings (15.4% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: CXP's earnings are forecast to grow, but not significantly.

Revenue vs Market: CXP's revenue (6.2% per year) is forecast to grow slower than the US market (7.5% per year).

High Growth Revenue: CXP's revenue (6.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CXP's Return on Equity is forecast to be low in 3 years time (0.5%).


Next Steps

Past Performance

How has Columbia Property Trust performed over the past 5 years?

-6.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CXP has a large one-off gain of $18.3M impacting its September 30 2019 financial results.

Growing Profit Margin: CXP's current net profit margins (12.2%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: CXP's earnings have declined by -6.8% per year over the past 5 years.

Accelerating Growth: CXP's earnings growth over the past year (1158.2%) exceeds its 5-year average (-6.8% per year).

Earnings vs Industry: CXP earnings growth over the past year (1158.2%) exceeded the REITs industry 8.1%.


Return on Equity

High ROE: CXP's Return on Equity (1.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Columbia Property Trust'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: CXP has a high level of physical assets or inventory.

Debt Coverage by Assets: CXP's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Columbia Property Trust's current dividend yield, its reliability and sustainability?

3.83%

Current Dividend Yield


Dividend Yield vs Market

company3.8%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years4.1%

Current dividend yield vs market & industry

Notable Dividend: CXP's dividend (3.97%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: CXP's dividend (3.97%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

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

Growing Dividend: CXP has only been paying a dividend for 6 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (52.5%), CXP's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CXP's dividends in 3 years are forecast to be thoroughly covered by earnings (0.6% payout ratio).


Next Steps

Management

What is the CEO of Columbia Property Trust's salary, the management and board of directors tenure and is there insider trading?

6.7yrs

Average management tenure


CEO

E. Mills (58yo)

6.9yrs

Tenure

US$4,850,916

Compensation

Mr. E. Nelson Mills, CPA, has been the President of Columbia Property Trust Operating Partnership, L.P. since July 21, 2010. Mr. Mills has been the Chief Executive Officer and President of Columbia Propert ...


CEO Compensation Analysis

Compensation vs Market: E.'s total compensation ($USD4.85M) is about average for companies of similar size in the US market ($USD4.99M).

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


Management Age and Tenure

6.7yrs

Average Tenure

54yo

Average Age

Experienced Management: CXP's management team is seasoned and experienced (6.7 years average tenure).


Board Age and Tenure

6.4yrs

Average Tenure

67yo

Average Age

Experienced Board: CXP's board of directors are considered experienced (6.4 years average tenure).


Insider Trading

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Jim Fleming (60yo)

    Executive VP & CFO

    • Tenure: 6.4yrs
    • Compensation: US$2.20m
  • E. Mills (58yo)

    President

    • Tenure: 6.9yrs
    • Compensation: US$4.85m
  • Kevin Hoover (54yo)

    Senior Vice President of Portfolio Management & Transactions

    • Compensation: US$1.47m
  • Wendy Gill (44yo)

    Senior VP of Corporate Operations & Chief Accounting Officer

    • Tenure: 7yrs
    • Compensation: US$1.14m
  • Dave Dowdney (44yo)

    Senior VP & Head of Leasing

    • Tenure: 5.6yrs
    • Compensation: US$1.36m
  • Rachel Williams

    Vice President of Marketing & Communications

    • Amy Tabb

      Senior Vice President of Business Development

      • Debbie Newmark

        Director of Legal Compliance & Transactions and Corporate Secretary

        • Angela Hutchinson

          Director of Human Resources

          • Tenure: 7yrs
        • Matt Stover

          Director of Finance & Investor Relations

          • Tenure: 4yrs

        Board Members

        • Tom Wattles (67yo)

          Independent Director

          • Tenure: 6.4yrs
          • Compensation: US$161.13k
        • Connie Moore (63yo)

          Independent Director

          • Tenure: 2.2yrs
          • Compensation: US$156.03k
        • Dave Henry (70yo)

          Independent Director

          • Tenure: 4yrs
          • Compensation: US$158.50k
        • Mike Robb (71yo)

          Independent Director

          • Tenure: 5yrs
          • Compensation: US$159.63k
        • Carmen Bowser (64yo)

          Independent Director

          • Tenure: 4yrs
          • Compensation: US$155.13k
        • John Dixon (76yo)

          Independent Chairman of the Board

          • Tenure: 7.1yrs
          • Compensation: US$192.18k
        • E. Mills (58yo)

          President

          • Tenure: 6.9yrs
          • Compensation: US$4.85m
        • George Sands (74yo)

          Independent Director

          • Tenure: 9.8yrs
          • Compensation: US$155.88k
        • Murray McCabe (51yo)

          Independent Director

          • Tenure: 6.4yrs
          • Compensation: US$158.88k

        Company Information

        Columbia Property Trust, Inc.'s company bio, employee growth, exchange listings and data sources


        Key Information

        • Name: Columbia Property Trust, Inc.
        • Ticker: CXP
        • Exchange: NYSE
        • Founded: 2003
        • Industry: Office REITs
        • Sector: Real Estate
        • Market Cap: US$2.562b
        • Shares outstanding: 116.90m
        • Website: https://www.columbia.reit

        Number of Employees


        Location

        • Columbia Property Trust, Inc.
        • 315 Park Avenue South
        • Suite 400
        • New York
        • New York
        • 10010
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        CXPNYSE (New York Stock Exchange)YesCommon StockUSUSDOct 2013

        Biography

        Columbia Property Trust (NYSE: CXP) creates value through owning, operating and developing Class-A office buildings in high-barrier U.S. office markets, primarily New York, San Francisco, and Washington D.C. Columbia is deeply experienced in transactions, asset management and repositioning, leasing, and property management. It employs these competencies to grow value across its high-quality, well-leased portfolio of 17 properties that contain over seven million rentable square feet, as well as one property under development. Columbia has investment-grade ratings from both Moody’s and Standard & Poor’s. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/27 00:57
        End of Day Share Price2020/01/24 00:00
        Earnings2019/09/30
        Annual Earnings2018/12/31


        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.