OTCPK:GWWT.F

Stock Analysis Report

Executive Summary

Growthpoint is the largest South African primary listed REIT with a quality portfolio of 447 directly owned properties in South Africa (RSA) valued at R77.2 billion.

Snowflake

Fundamentals

Average dividend payer and fair value.

Share Price & News

How has Growthpoint Properties's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0%

OTCPK:GWWT.F

0.3%

US REITs

-0.7%

US Market


1 Year Return

n/a

OTCPK:GWWT.F

8.2%

US REITs

-0.5%

US Market

No trading data on GWWT.F.

No trading data on GWWT.F.


Share holder returns

GWWT.FIndustryMarket
7 Day0%0.3%-0.7%
30 Day0%3.7%-3.0%
90 Dayn/a4.0%0.9%
1 Yearn/a13.0%8.2%1.7%-0.5%
3 Yearn/a24.7%8.4%39.5%30.4%
5 Yearn/a58.7%25.0%54.1%37.0%

Price Volatility Vs. Market

How volatile is Growthpoint Properties's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Growthpoint Properties undervalued based on future cash flows and its price relative to the stock market?

15.39x

Price to Earnings (PE) ratio


Intrinsic Value Based on Future Cash Flows

Growthpoint Properties's share price is above the future cash flow value, it's not available at a moderate discount (< 20%).

Growthpoint Properties's share price is above the future cash flow value, it's not available at a substantial discount (< 40%).


Price Based on Earnings

Growthpoint Properties is good value based on earnings compared to the US REITs industry average.

Growthpoint Properties is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Growthpoint Properties, we can't assess if its growth is good value.


Price Based on Value of Assets

Growthpoint Properties is good value based on assets compared to the US REITs industry average.


Next Steps

Future Growth

How is Growthpoint Properties expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

-0.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Growthpoint Properties's revenue is expected to grow by 4.9% yearly, however this is not considered high growth (20% yearly).

Growthpoint Properties's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Growthpoint Properties's revenue growth is positive but not above the United States of America market average.

Growthpoint Properties's earnings are expected to decrease over the next 1-3 years, this is below the United States of America market average.

Growthpoint Properties's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

Growthpoint Properties is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Growthpoint Properties performed over the past 5 years?

5.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Growthpoint Properties's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.

Growthpoint Properties's 1-year earnings growth is negative, it can't be compared to the 5-year average.

Growthpoint Properties's 1-year earnings growth is negative, it can't be compared to the US REITs industry average.


Return on Equity

Growthpoint Properties has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Growthpoint Properties used its assets less efficiently than the US REITs industry average last year based on Return on Assets.


Return on Capital Employed

Growthpoint Properties's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Growthpoint Properties's financial position?


Financial Position Analysis

Growthpoint Properties is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Growthpoint Properties's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Growthpoint Properties's level of debt (60%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (46.9% vs 60% today).

Debt is not well covered by operating cash flow (1.4%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 5.5x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.2x debt.


Next Steps

Dividend

What is Growthpoint Properties's current dividend yield, its reliability and sustainability?

10.04%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Growthpoint Properties's pays a higher dividend yield than the bottom 25% of dividend payers in United States of America (1.49%).

Growthpoint Properties's dividend is above the markets top 25% of dividend payers in United States of America (3.84%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are well covered by earnings (2.2x coverage).


Future Payout to Shareholders

Dividends after 3 years are not well covered by earnings (1x coverage).


Next Steps

Management

What is the CEO of Growthpoint Properties's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average management tenure


CEO

Leon Sasse (54yo)

1.4yrs

Tenure

SAR36,105,975

Compensation

Mr. Leon Norbert Sasse, BCom (Hons) (Acc), CA (SA) has been the Group the Chief Executive Officer of Growthpoint Properties Ltd. since March 1, 2018. Mr. Sasse has been an Executive Director at Acucap Prop ...


CEO Compensation Analysis

Leon's remuneration is lower than average for companies of similar size in United States of America.

Leon's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

1.4yrs

Average Tenure

49.5yo

Average Age

The average tenure for the Growthpoint Properties management team is less than 2 years, this suggests a new team.


Board Age and Tenure

11.0yrs

Average Tenure

61.5yo

Average Age

The average tenure for the Growthpoint Properties board of directors is over 10 years, this suggests they are a seasoned and experienced board.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellSAR336,26321 Jun 19
Growthpoint Management Services (Pty) Limited
EntityCompany
Shares200,000
Max PriceSAR1.68
SellSAR43,89518 Apr 19
Gerald Völkel
EntityIndividual
Role
Member of the Board of Directors
Group Financial Director & Director
Shares25,000
Max PriceSAR1.76
BuySAR341,83710 Apr 19
Estienne de Klerk
EntityIndividual
Role
Member of the Board of Directors
CEO of South Africa & Director
Shares199,160
Max PriceSAR1.72
SellSAR279,76410 Apr 19
Estienne de Klerk
EntityIndividual
Role
Member of the Board of Directors
CEO of South Africa & Director
Shares162,952
Max PriceSAR1.73
SellSAR1,036,15210 Apr 19
Leon Sasse
EntityIndividual
Role
Chief Executive Officer
Group CEO & Director
Shares603,520
Max PriceSAR1.73
BuySAR200,82415 Nov 18
Leon Sasse
EntityIndividual
Role
Chief Executive Officer
Group CEO & Director
Shares120,434
Max PriceSAR1.67
SellSAR164,35115 Nov 18
Leon Sasse
EntityIndividual
Role
Chief Executive Officer
Group CEO & Director
Shares98,539
Max PriceSAR1.67
SellSAR44,54909 Nov 18
Gerald Völkel
EntityIndividual
Role
Member of the Board of Directors
Group Financial Director & Director
Shares25,060
Max PriceSAR1.78
BuySAR34,14602 Nov 18
Jacobus Marais
EntityIndividual
Role
Chairman of the Board
Independent Non-Executive Chairman of the Board
Shares21,975
Max PriceSAR1.56
SellSAR22,89310 Oct 18
Estienne de Klerk
EntityIndividual
Role
Member of the Board of Directors
CEO of South Africa & Director
Shares14,975
Max PriceSAR1.53

Ownership Breakdown


Management Team

  • Gerald Völkel (58yo)

    Group Financial Director & Director

    • Tenure: 6.5yrs
    • Compensation: SAR9.00m
  • Leon Sasse (54yo)

    Group CEO & Director

    • Tenure: 1.4yrs
    • Compensation: SAR36.11m
  • Estienne de Klerk (50yo)

    CEO of South Africa & Director

    • Tenure: 11.0yrs
    • Compensation: SAR25.94m
  • Rudolf Pienaar (59yo)

    Chief Development & Investment Officer

    • Tenure: 1.3yrs
  • Xolani Hlatshwayo (36yo)

    Group Legal Counsel

    • Tenure: 0.6yrs
  • Engelbert Binedell (49yo)

    Chief Operating Officer

    • Tenure: 1.6yrs
  • Alec Davis (54yo)

    Chief Information Officer

    • Tenure: 0.0yrs
  • Lauren Turner (42yo)

    Head of Investor Relations

    • Tenure: 0.0yrs
  • George Muchanya (48yo)

    Head of Corporate Finance

    • Tenure: 1.3yrs
  • Olive Chauke (46yo)

    HR Director & Executive Director

    • Tenure: 1.2yrs
    • Compensation: SAR2.94m

Board Members

  • Zoli Diliza (70yo)

    Non-Executive Director

    • Tenure: 17.9yrs
    • Compensation: SAR826.60k
  • Gerald Völkel (58yo)

    Group Financial Director & Director

    • Tenure: 6.5yrs
    • Compensation: SAR9.00m
  • Jacobus Marais (64yo)

    Independent Non-Executive Chairman of the Board

    • Tenure: 11.1yrs
    • Compensation: SAR2.53m
  • Eric Visser (67yo)

    Independent Non-Executive Director

    • Tenure: 18.6yrs
    • Compensation: SAR751.60k
  • Leon Sasse (54yo)

    Group CEO & Director

    • Tenure: 1.4yrs
    • Compensation: SAR36.11m
  • Peter Fechter (73yo)

    Independent Non-Executive Director

    • Tenure: 16.0yrs
    • Compensation: SAR927.40k
  • John Hayward (68yo)

    Lead Independent Director

    • Tenure: 2.2yrs
    • Compensation: SAR999.30k
  • Estienne de Klerk (50yo)

    CEO of South Africa & Director

    • Tenure: 11.0yrs
    • Compensation: SAR25.94m
  • Lynette Finlay (59yo)

    Independent Non-Executive Director

    • Tenure: 9.8yrs
    • Compensation: SAR913.30k
  • Olive Chauke (46yo)

    HR Director & Executive Director

    • Tenure: 1.2yrs
    • Compensation: SAR2.94m

Company Information

Growthpoint Properties Limited's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Growthpoint Properties Limited
  • Ticker: GWWT.F
  • Exchange: OTCPK
  • Founded: 1987
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: SAR68.320b
  • Listing Market Cap: SAR4.483b
  • Shares outstanding: 2.95b
  • Website: https://growthpoint.co.za

Number of Employees


Location

  • Growthpoint Properties Limited
  • The Place
  • 1 Sandton Drive
  • Johannesburg
  • Gauteng
  • 2196
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
GRTJSE (The Johannesburg Securities Exchange)YesNew Ordinary SharesZAZARJan 1992
GWWT.FOTCPK (Pink Sheets LLC)YesNew Ordinary SharesUSUSDJan 1992

Biography

Growthpoint is the largest South African primary listed REIT with a quality portfolio of 447 directly owned properties in South Africa (RSA) valued at R77.2 billion. We have a 66.0% interest in ASX-listed  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/19 00:53
End of Day Share Price2019/05/23 00:00
Earnings2018/12/31
Annual Earnings2018/06/30


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.