OTCPK:ARES.F

Stock Analysis Report

Artis Real Estate Investment Trust

Executive Summary

Artis is a diversified Canadian real estate investment trust investing in office, retail and industrial properties.


Snowflake Analysis

Established dividend payer and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-4.1%

ARES.F

-4.7%

US REITs

-7.6%

US Market


1 Year Return

13.3%

ARES.F

11.6%

US REITs

10.2%

US Market

Return vs Industry: ARES.F matched the US REITs industry which returned 12.8% over the past year.

Return vs Market: ARES.F exceeded the US Market which returned 10.5% over the past year.


Shareholder returns

ARES.FIndustryMarket
7 Day-4.1%-4.7%-7.6%
30 Day-0.7%-1.5%-4.5%
90 Day1.6%0.9%-0.6%
1 Year18.2%13.3%16.1%11.6%12.5%10.2%
3 Year15.9%-6.3%31.7%15.3%37.1%28.3%
5 Year11.6%-23.7%52.7%21.3%60.8%43.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

18.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ARES.F ($9.1) is trading below our estimate of fair value ($11.12)

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


Price To Earnings Ratio

PE vs Industry: ARES.F is good value based on its PE Ratio (23.3x) compared to the REITs industry average (36.3x).

PE vs Market: ARES.F is poor value based on its PE Ratio (23.3x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ARES.F is good value based on its PB Ratio (0.8x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

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

-5.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if ARES.F's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if ARES.F's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ARES.F's revenue is expected to decline over the next 3 years (-5.5% per year).

High Growth Revenue: ARES.F's revenue is forecast to decline over the next 3 years (-5.5% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

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

15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ARES.F has a large one-off loss of CA$75.0M impacting its September 30 2019 financial results.

Growing Profit Margin: ARES.F's current net profit margins (14.3%) are lower than last year (35.9%).


Past Earnings Growth Analysis

Earnings Trend: ARES.F's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: ARES.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ARES.F had negative earnings growth (-58.7%) over the past year, making it difficult to compare to the REITs industry average (5.9%).


Return on Equity

High ROE: ARES.F's Return on Equity (3.9%) is considered low.


Next Steps

Financial Health

How is Artis 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: ARES.F has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

4.47%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ARES.F's dividend (4.46%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: ARES.F's dividend (4.46%) is in the top 25% of dividend payers in the US market (3.9%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (57.1%), ARES.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ARES.F's dividends in 3 years are forecast to be thoroughly covered by earnings (0.3% payout ratio).


Next Steps

Management

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

13.8yrs

Average management tenure


CEO

Armin Martens (64yo)

15.1yrs

Tenure

CA$3,093,948

Compensation

Mr. Armin Martens, P.Eng., M.B.A., has been the Chief Executive Officer and President at Artis Real Estate Investment Trust since 2005 and serves as its Trustee since November 8, 2004 and was re-appointed  ...


CEO Compensation Analysis

Compensation vs Market: Armin's total compensation ($USD2.33M) is below average for companies of similar size in the US market ($USD3.92M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Armin Martens
President15.1yrsCA$3.09m0.51% CA$6.4m
James Green
Chief Financial Officer15.3yrsCA$1.07m0.067% CA$843.8k
Frank Sherlock
Executive Vice President of Property Management12.5yrsCA$413.32kno data
Philip Martens
Executive Vice President of U.S. Region3.4yrsCA$386.78k0.0031% CA$38.9k
Jaclyn Koenig
Vice President of Corporate Accounting0yrsno datano data
Heather Nikkel
Vice President0yrsno datano data
Kara Watson
Vice President of Legal0yrsno datano data
Brad Goerzen
Senior Vice President of Leasing - Central Region0yrsno datano data
Marie Dunn
Senior Vice President of Asset Management - U.S. Region0yrsno datano data
Ron Wieler
Senior Vice President of Construction & Development0yrsno datano data

13.8yrs

Average Tenure

Experienced Management: ARES.F's management team is seasoned and experienced (13.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Armin Martens
President15.1yrsCA$3.09m0.51% CA$6.4m
Lauren Zucker
Independent Trustee1.7yrsCA$71.50k0.055% CA$685.9k
Edward Warkentin
Independent Chairman of the Board14.3yrsCA$234.00k0.028% CA$354.0k
Victor Thielmann
Independent Trustee15.3yrsCA$118.50k0.041% CA$518.2k
Wayne Townsend
Independent Trustee15.3yrsCA$141.50k0.022% CA$276.6k
Benjamin Rodney
Independent Trustee0.7yrsno data0.0029% CA$36.3k
Bruce William Jack
Independent Trustee2.9yrsCA$180.50k0.0036% CA$45.3k
Ida Albo
Independent Trustee1.7yrsCA$71.75k0.016% CA$194.3k

8.6yrs

Average Tenure

63.5yo

Average Age

Experienced Board: ARES.F's board of directors are considered experienced (8.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: ARES.F insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Artis Real Estate Investment Trust
  • Ticker: ARES.F
  • Exchange: OTCPK
  • Founded: 2003
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: CA$1.665b
  • Listing Market Cap: CA$1.252b
  • Shares outstanding: 137.98m
  • Website: https://www.artisreit.com

Location

  • Artis Real Estate Investment Trust
  • 600 – 220 Portage Avenue
  • Winnipeg
  • Manitoba
  • R3C 0A5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AX.UNTSX (The Toronto Stock Exchange)YesTrust UnitsCACADFeb 2004
ARES.FOTCPK (Pink Sheets LLC)YesTrust UnitsUSUSDFeb 2004
AX.PRGTSX (The Toronto Stock Exchange)PFD UNIT SER GCACADJul 2013
AX.PRITSX (The Toronto Stock Exchange)PREF SHS ICACADJan 2018

Biography

Artis is a diversified Canadian real estate investment trust investing in office, retail and industrial properties. Since 2004, Artis has executed an aggressive but disciplined growth strategy, building a portfolio of commercial properties in British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and select markets in the United States. As of September 30, 2019, Artis' commercial property comprises approximately 25.0 million square feet of leasable area. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 01:53
End of Day Share Price2020/02/25 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.