NYSE:PEI

Stock Analysis Report

Pennsylvania Real Estate Investment Trust

Executive Summary

PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets.

Rewards

Trading at 3.4% below its fair value

Pays a high and reliable dividend of 22.95%

Risk Analysis

Earnings are forecast to decline by an average of -7.8% per year for the next 3 years

Currently unprofitable and not forecast to become profitable over the next 3 years

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

6 star dividend payer and slightly overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: PEI's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-1.6%

PEI

3.0%

US REITs

1.5%

US Market


1 Year Return

-45.9%

PEI

16.2%

US REITs

20.1%

US Market

Return vs Industry: PEI underperformed the US REITs industry which returned 16.2% over the past year.

Return vs Market: PEI underperformed the US Market which returned 20.1% over the past year.


Shareholder returns

PEIIndustryMarket
7 Day-1.6%3.0%1.5%
30 Day-27.5%4.5%1.4%
90 Day-38.6%6.1%8.7%
1 Year-37.6%-45.9%20.9%16.2%22.7%20.1%
3 Year-71.4%-78.8%40.7%23.1%50.1%40.5%
5 Year-77.6%-84.6%57.9%25.3%73.1%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

3.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PEI ($3.66) is trading below our estimate of fair value ($3.79)

Significantly Below Fair Value: PEI is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: PEI is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: PEI is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PEI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PEI is good value based on its PB Ratio (0.6x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is Pennsylvania Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-7.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PEI is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: PEI is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: PEI is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: PEI's revenue (2.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: PEI's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PEI is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

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

-16.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PEI is currently unprofitable.

Growing Profit Margin: PEI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PEI is unprofitable, and losses have increased over the past 5 years at a rate of -16.5% per year.

Accelerating Growth: Unable to compare PEI's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PEI is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (6.9%).


Return on Equity

High ROE: PEI has a negative Return on Equity (-18.69%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pennsylvania Real Estate Investment 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: PEI has a high level of physical assets or inventory.

Debt Coverage by Assets: PEI's debt is not covered by short term assets (assets are 0x 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: Whilst unprofitable PEI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PEI is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -1.7% per year.


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

22.95%

Current Dividend Yield


Dividend Yield vs Market

company23.0%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years23.0%

Current dividend yield vs market & industry

Notable Dividend: PEI's dividend (22.95%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: PEI's dividend (22.95%) is in the top 25% of dividend payers in the US market (3.69%)


Stability and Growth of Payments

Stable Dividend: PEI's dividends per share have been stable in the past 10 years.

Growing Dividend: PEI's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.5%), PEI's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PEI's dividends in 3 years are forecast to be thoroughly covered by earnings (0.9% payout ratio).


Next Steps

Management

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

6.9yrs

Average management tenure


CEO

Joe Coradino (67yo)

7.7yrs

Tenure

US$4,907,051

Compensation

Mr. Joseph F. Coradino, also known as Joe, has been the Chief Executive Officer at Pennsylvania Real Estate Investment Trust since June 7, 2012 and has been Chairman of the Board since February 2017 and Tr ...


CEO Compensation Analysis

Compensation vs Market: Joe's total compensation ($USD4.91M) is above average for companies of similar size in the US market ($USD1.11M).

Compensation vs Earnings: Joe's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Coradino
Chairman & CEO7.7yrsUS$4.91m0.73% $2.1m
Mario Ventresca
Executive VP & CFO0.2yrsUS$1.18m0.15% $443.5k
Andrew Ioannou
Executive Vice President of Finance & Acquisitions5.1yrsUS$1.00m0.12% $354.2k
Joseph Aristone
Executive Vice President of Leasing0yrsUS$1.10m0.11% $332.6k
Lisa Most
Senior VP0yrsno data0.074% $215.7k
Heather Crowell
Executive Vice President of Strategy & Communications0yrsno data0.073% $212.9k
Daniel Herman
Senior Vice President of Development6.1yrsno datano data
Debi Gilson
Regional Marketing Director of East Region Properties10.7yrsno datano data
Michael Rakers
General Manager of Springfield Mall9.6yrsno datano data

6.9yrs

Average Tenure

50.5yo

Average Age

Experienced Management: PEI's management team is seasoned and experienced (6.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Joseph Coradino
Chairman & CEO7.7yrsUS$4.91m0.73% $2.1m
John Roberts
Independent Trustee16.3yrsUS$204.57k0.11% $333.7k
Mark Pasquerilla
Independent Trustee16.2yrsUS$183.07k0.16% $465.0k
George Alburger
Independent Trustee2.7yrsUS$175.57k0.065% $189.3k
Charles Pizzi
Lead Independent Trustee2.7yrsUS$218.07k0.075% $219.5k
Leonard Korman
Independent Trustee24.1yrsUS$178.57k0.71% $2.1m
Joanne Epps
Independent Trustee2yrsUS$169.57k0.036% $105.9k
Michael DeMarco
Independent Trustee4.7yrsUS$188.57k0.069% $200.8k

3.8yrs

Average Tenure

67.5yo

Average Age

Experienced Board: PEI's board of directors are considered experienced (3.8 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 5.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Pennsylvania Real Estate Investment Trust
  • Ticker: PEI
  • Exchange: NYSE
  • Founded: 1960
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: US$291.389m
  • Market Cap: US$283.986m
  • Shares outstanding: 79.61m
  • Website: https://www.preit.com

Number of Employees


Location

  • Pennsylvania Real Estate Investment Trust
  • 2005 Market Street
  • Suite 1000
  • Philadelphia
  • Pennsylvania
  • 19103
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PEINYSE (New York Stock Exchange)YesCommon SharesUSUSDJan 1969
WX3DB (Deutsche Boerse AG)YesCommon SharesDEEURJan 1969
PEI.PRBNYSE (New York Stock Exchange)CUM RED PERP PFDUSUSDOct 2012
PEI.PRCNYSE (New York Stock Exchange)RED PFD SER CUSUSDJan 2017
PEI.PRDNYSE (New York Stock Exchange)6.875% RED PFD DUSUSDSep 2017

Biography

PREIT (NYSE:PEI) is a publicly traded real estate investment trust that owns and manages quality properties in compelling markets. PREIT's robust portfolio of carefully curated retail and lifestyle offerings mixed with destination dining and entertainment experiences are located primarily in the densely-populated eastern U.S. with concentrations in the mid-Atlantic's top MSAs. Since 2012, the Company has driven a transformation guided by an emphasis on portfolio quality and balance sheet strength driven by disciplined capital expenditures. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/16 23:41
End of Day Share Price2020/02/14 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.