NYSE:IRET.PRC

Stock Analysis Report

Investors Real Estate Trust

Executive Summary

IRET is a real estate company focused on the ownership, management, acquisition, redevelopment, and development of apartment communities.


Snowflake Analysis

Undervalued second-rate dividend payer.


Similar Companies

Share Price & News

How has Investors Real Estate Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

1.8%

IRET.PRC

15.8%

US REITs

7.2%

US Market


1 Year Return

-1.5%

IRET.PRC

-20.1%

US REITs

-10.4%

US Market

Return vs Industry: IRET.PRC exceeded the US REITs industry which returned -20.1% over the past year.

Return vs Market: IRET.PRC exceeded the US Market which returned -10.4% over the past year.


Shareholder returns

IRET.PRCIndustryMarket
7 Day1.8%15.8%7.2%
30 Day-4.4%-19.2%-12.6%
90 Day-6.2%-24.6%-19.4%
1 Year5.2%-1.5%-16.8%-20.1%-8.5%-10.4%
3 Yearn/a-0.7%-13.1%15.8%8.3%
5 Yearn/a13.3%-10.2%35.8%21.0%

Price Volatility Vs. Market

How volatile is Investors Real Estate Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Investors Real Estate Trust undervalued compared to its fair value and its price relative to the market?

25.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IRET.PRC ($24.63) is trading below our estimate of fair value ($33.08)

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


Price To Earnings Ratio

PE vs Industry: IRET.PRC is good value based on its PE Ratio (8.6x) compared to the REITs industry average (24.3x).

PE vs Market: IRET.PRC is good value based on its PE Ratio (8.6x) compared to the US market (13.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: IRET.PRC is good value based on its PB Ratio (1.2x) compared to the US REITs industry average (1.3x).


Next Steps

Future Growth

How is Investors Real Estate Trust forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

-117.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IRET.PRC's earnings are forecast to decline over the next 3 years (-117.4% per year).

Earnings vs Market: IRET.PRC's earnings are forecast to decline over the next 3 years (-117.4% per year).

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

Revenue vs Market: IRET.PRC's revenue (2% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: IRET.PRC's revenue (2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Investors Real Estate Trust performed over the past 5 years?

16.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IRET.PRC has a large one-off gain of $100.7M impacting its December 31 2019 financial results.

Growing Profit Margin: IRET.PRC became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: IRET.PRC has become profitable over the past 5 years, growing earnings by 16.3% per year.

Accelerating Growth: IRET.PRC has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: IRET.PRC has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (5%).


Return on Equity

High ROE: IRET.PRC's Return on Equity (12.2%) is considered low.


Next Steps

Financial Health

How is Investors Real Estate 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: IRET.PRC has a high level of physical assets or inventory.

Debt Coverage by Assets: IRET.PRC's debt is not covered by short term assets (assets are 0.1x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: IRET.PRC is profitable, therefore cash runway is not a concern.

Forecast Cash Runway: IRET.PRC is profitable, therefore cash runway is not a concern.


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Investors Real Estate Trust's current dividend yield, its reliability and sustainability?

5.33%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IRET.PRC's dividend (5.33%) is higher than the bottom 25% of dividend payers in the US market (1.95%).

High Dividend: IRET.PRC's dividend (5.33%) is low compared to the top 25% of dividend payers in the US market (5.4%).


Stability and Growth of Payments

Stable Dividend: IRET.PRC's dividend payments have been volatile in the past 10 years.

Growing Dividend: IRET.PRC's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (75.8%), IRET.PRC's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IRET.PRC's dividends in 3 years are forecast to be thoroughly covered by earnings (5% payout ratio).


Next Steps

Management

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

2.7yrs

Average management tenure


CEO

Mark Decker (43yo)

2.83s

Tenure

US$1,250,349

Compensation

Mr. Mark O. Decker, Jr., serves as the Chief Executive Officer and Trustee at Investors Real Estate Trust (IRET) since April 27, 2017 and President since joining on August 5, 2016. Mr. Decker has capital m ...


CEO Compensation Analysis

Compensation vs Market: Mark's total compensation ($USD1.25M) is below average for companies of similar size in the US market ($USD3.17M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Mark Decker
President2.83yrsUS$1.25m0.19% $1.4m
John Kirchmann
Executive VP & CFO2.67yrsUS$747.21k0.091% $686.6k
Anne Olson
Executive VP1.67yrsUS$928.79k0.023% $171.9k
Nancy Andersen
Senior VP & Chief Accounting Officer5yrsUS$278.77kno data
Jonathan Bishop
Vice President Financeno datano datano data
Michelle Saari
Vice President of Marketing & Communications20.42yrsno datano data
Karin Wentz
Senior VP & Associate General Counsel13.17yrsno datano data
Grant Campbell
Senior Vice President of Investments1.67yrsno datano data
Julie Letner
Senior Vice President of Talent & Culture1.58yrsno datano data
Jean Denn
Senior Vice President of Operations1.17yrsno datano data

2.7yrs

Average Tenure

43yo

Average Age

Experienced Management: IRET.PRC's management team is considered experienced (2.7 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Decker
President2.83yrsUS$1.25m0.19% $1.4m
Terrance Maxwell
Independent Trustee6.25yrsUS$73.86k0.042% $313.3k
Linda J. Keller
Independent Trustee8.42yrsUS$80.53k0.055% $411.7k
Emily Green
Independent Trustee2yrsUS$71.69k0.011% $82.1k
Mary Twinem
Independent Trustee2yrsUS$68.86k0.022% $169.6k
Michael Dance
Independent Trustee3.83yrsUS$79.54k0.056% $420.1k
John Schissel
Independent Trustee3.83yrsUS$75.23k0.032% $243.0k
Jeffrey Caira
Independent Chairman of the Board2.83yrsUS$115.79k0.11% $831.8k

3.3yrs

Average Tenure

59.5yo

Average Age

Experienced Board: IRET.PRC's board of directors are considered experienced (3.3 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Investors Real Estate Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Investors Real Estate Trust
  • Ticker: IRET.PRC
  • Exchange: NYSE
  • Founded: 1970
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: US$754.429m
  • Market Cap: US$635.801m
  • Shares outstanding: 13.16m
  • Website: https://www.iretapartments.com

Number of Employees


Location

  • Investors Real Estate Trust
  • 1400 31st Avenue SW
  • Suite 60
  • Minot
  • North Dakota
  • 58702
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IRETNYSE (New York Stock Exchange)YesCommon SharesUSUSDOct 1997
WXC1DB (Deutsche Boerse AG)YesCommon SharesDEEUROct 1997
IRET.PRCNYSE (New York Stock Exchange)6.625% CUM PFD CUSUSDSep 2017

Biography

IRET is a real estate company focused on the ownership, management, acquisition, redevelopment, and development of apartment communities. As of December 31, 2019, IRET owned interests in 69 apartment communities consisting of 11,953 homes. IRET's common shares and Series C preferred shares are publicly traded on the New York Stock Exchange (NYSE symbols: IRET and IRET-PC, respectively). 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 03:30
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.