NYSE:IRET

Stock Analysis Report

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Investors Real Estate Trust

Executive Summary

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


Snowflake Analysis

Proven track record 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.4%

IRET

-3.2%

US REITs

-1.2%

US Market


1 Year Return

-12.1%

IRET

-15.1%

US REITs

19.5%

US Market

Return vs Industry: IRET exceeded the US REITs industry which returned -15.1% over the past year.

Return vs Market: IRET underperformed the US Market which returned 19.5% over the past year.


Shareholder returns

IRETIndustryMarket
7 Day-0.4%-3.2%-1.2%
30 Day3.6%1.1%5.8%
90 Day-4.8%3.2%8.1%
1 Year-8.2%-12.1%-11.7%-15.1%22.3%19.5%
3 Year34.5%16.7%14.4%1.0%43.6%34.0%
5 Year12.4%-14.7%39.6%11.5%87.3%66.1%

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

Valuation

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

13.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: IRET ($68.95) is trading above our estimate of fair value ($60.53)

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


Price To Earnings Ratio

PE vs Industry: IRET is good value based on its PE Ratio (13.1x) compared to the US REITs industry average (34x).

PE vs Market: IRET is good value based on its PE Ratio (13.1x) compared to the US market (19x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: IRET is overvalued based on its PB Ratio (1.7x) compared to the US REITs industry average (1.4x).


Next Steps

Future Growth

How is Investors Real Estate Trust forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

-33.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IRET's earnings are forecast to decline over the next 3 years (-33.8% per year).

Earnings vs Market: IRET's earnings are forecast to decline over the next 3 years (-33.8% per year).

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

Revenue vs Market: IRET's revenue (1.9% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: IRET's revenue (1.9% 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'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?

39.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IRET has a large one-off gain of $90.1M impacting its June 30 2020 financial results.

Growing Profit Margin: IRET's current net profit margins (34.7%) are higher than last year (6.5%).


Past Earnings Growth Analysis

Earnings Trend: IRET has become profitable over the past 5 years, growing earnings by 39.1% per year.

Accelerating Growth: IRET's earnings growth over the past year (418.5%) exceeds its 5-year average (39.1% per year).

Earnings vs Industry: IRET earnings growth over the past year (418.5%) exceeded the REITs industry 3.3%.


Return on Equity

High ROE: IRET's Return on Equity (11.1%) is considered low.


Next Steps

Financial Health

How is Investors Real Estate Trust's financial position?


Financial Position Analysis

Short Term Liabilities: IRET's short term assets ($55.2M) exceed its short term liabilities ($54.9M).

Long Term Liabilities: IRET's short term assets ($55.2M) do not cover its long term liabilities ($655.9M).


Debt to Equity History and Analysis

Debt Level: IRET's debt to equity ratio (98.8%) is considered high.

Reducing Debt: IRET's debt to equity ratio has reduced from 118.9% to 98.8% over the past 5 years.

Debt Coverage: IRET's debt is not well covered by operating cash flow (9.8%).

Interest Coverage: IRET's interest payments on its debt are not well covered by EBIT (0.5x coverage).


Balance Sheet


Next Steps

Dividend

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

4.06%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IRET's dividend (4.06%) is higher than the bottom 25% of dividend payers in the US market (1.62%).

High Dividend: IRET's dividend (4.06%) is low compared to the top 25% of dividend payers in the US market (4.66%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (94.3%), IRET's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IRET's dividends in 3 years are forecast to be covered by earnings (76.5% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Mark Decker (44 yo)

3.5yrs

Tenure

US$1,609,755

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 ($USD1.61M) is below average for companies of similar size in the US market ($USD2.82M).

Compensation vs Earnings: Mark's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Mark Decker
President3.5yrsUS$1.61m0.22%
$ 2.2m
John Kirchmann
Executive VP & CFO3.33yrsUS$879.10k0.10%
$ 1.0m
Anne Olson
Executive VP2.33yrsUS$1.04m0.038%
$ 374.0k
Nancy Andersen
Senior VP & Chief Accounting Officer5.67yrsUS$278.77kno data
Jonathan Bishop
Vice President Financeno datano datano data
Michelle Saari
Vice President of Marketing & Communications21.08yrsno datano data
Karin Wentz
Senior VP & Associate General Counsel13.75yrsno datano data
Grant Campbell
Senior Vice President of Investments2.33yrsno datano data
Julie Letner
Senior Vice President of Talent & Culture2.17yrsno datano data
Jean Denn
Senior Vice President of Operations1.75yrsno datano data
Susan Picotte
Vice President of Asset Management3.33yrsno datano data
Justin Hammer
Vice President of Operations2.58yrsno datano data

3.3yrs

Average Tenure

44yo

Average Age

Experienced Management: IRET's management team is considered experienced (3.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Mark Decker
President3.5yrsUS$1.61m0.22%
$ 2.2m
Terrance Maxwell
Independent Trustee6.92yrsUS$114.53k0.047%
$ 457.4k
Linda J. Keller
Independent Trustee9.08yrsUS$124.53k0.057%
$ 551.0k
Emily Nagle Green
Independent Trustee2.67yrsUS$124.53k0.028%
$ 273.0k
Mary Twinem
Independent Trustee2.67yrsUS$114.53k0.029%
$ 282.8k
Michael Dance
Independent Trustee4.5yrsUS$123.03k0.060%
$ 587.2k
John Schissel
Independent Trustee4.5yrsUS$114.53k0.038%
$ 372.0k
Jeffrey Caira
Independent Chairman of the Board3.5yrsUS$168.73k0.12%
$ 1.1m

4.0yrs

Average Tenure

60.5yo

Average Age

Experienced Board: IRET's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: IRET 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 7.8%.


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
  • Exchange: NYSE
  • Founded: 1970
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: US$971.487m
  • Market Cap: US$884.401m
  • Shares outstanding: 13.85m
  • 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 June 30, 2020, we owned interests in 70 apartment communities ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:27
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
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.