OTCPK:IVRE.F

Stock Analysis Report

Inovalis Real Estate Investment Trust

Executive Summary

Inovalis Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario.

Rewards

Trading at 43.3% below its fair value

Revenue is forecast to grow 8.3% per year

Risk Analysis

Earnings have declined by -4.64% per year over past 5 years

Unstable dividend track record

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Undervalued average dividend payer.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

IVRE.F

1.0%

US REITs

0.7%

US Market


1 Year Return

n/a

IVRE.F

13.0%

US REITs

18.2%

US Market

Return vs Industry: Insufficient data to determine how IVRE.F performed against the US REITs industry.

Return vs Market: Insufficient data to determine how IVRE.F performed against the US Market.


Shareholder returns

IVRE.FIndustryMarket
7 Day0%1.0%0.7%
30 Day9.4%1.7%1.5%
90 Day9.4%0.8%5.0%
1 Yearn/a17.8%13.0%20.8%18.2%
3 Yearn/a34.3%17.5%45.2%35.8%
5 Yearn/a58.3%25.6%71.6%52.7%

Price Volatility Vs. Market

How volatile is Inovalis 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 Inovalis Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

43.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IVRE.F ($8.35) is trading below our estimate of fair value ($14.7)

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


Price To Earnings Ratio

PE vs Industry: IVRE.F is good value based on its PE Ratio (11.5x) compared to the REITs industry average (38.8x).

PE vs Market: IVRE.F is good value based on its PE Ratio (11.5x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: IVRE.F is good value based on its PB Ratio (1x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

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

8.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if IVRE.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: IVRE.F's revenue (8.3% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: IVRE.F's revenue (8.3% 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 IVRE.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

-4.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IVRE.F has a large one-off gain of CA$6.0M impacting its September 30 2019 financial results.

Growing Profit Margin: IVRE.F's current net profit margins (58.5%) are higher than last year (52.4%).


Past Earnings Growth Analysis

Earnings Trend: IVRE.F's earnings have declined by -4.6% per year over the past 5 years.

Accelerating Growth: IVRE.F's earnings growth over the past year (2.6%) exceeds its 5-year average (-4.6% per year).

Earnings vs Industry: IVRE.F earnings growth over the past year (2.6%) underperformed the REITs industry 8.3%.


Return on Equity

High ROE: IVRE.F's Return on Equity (8.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Inovalis 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: IVRE.F has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

7.72%

Current Dividend Yield


Dividend Yield vs Market

company7.7%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years7.7%

Current dividend yield vs market & industry

Notable Dividend: IVRE.F's dividend (7.72%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: IVRE.F's dividend (7.72%) is in the top 25% of dividend payers in the US market (3.7%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, IVRE.F has been paying a dividend for less than 10 years.

Growing Dividend: IVRE.F has only been paying a dividend for 6 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.8%), IVRE.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: IVRE.F's dividends in 3 years are forecast to be thoroughly covered by earnings (3.7% payout ratio).


Next Steps

Management

What is the CEO of Inovalis Real Estate Investment Trust's salary, the management and board of directors tenure and is there insider trading?

1.6yrs

Average management tenure


CEO

David Giraud 0

6.7yrs

Tenure

CA$150,000

Compensation

Mr. David Giraud has been the Chief Executive Officer of Inovalis Real Estate Investment Trust since April 10, 2013. Mr. Giraud Co-Founded Inovalis in 1998 and has focused on fund structuring, investor rel ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD113.40K) is below average for companies of similar size in the US market ($USD1.12M).

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


Management Age and Tenure

1.6yrs

Average Tenure

Experienced Management: IVRE.F's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Age and Tenure

1.9yrs

Average Tenure

57yo

Average Age

Experienced Board: IVRE.F's board of directors are not considered experienced ( 1.9 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCA$13,84426 Dec 18
Inovalis
EntityCompany
Shares1,900
Max PriceCA$7.29
SellCA$244,02915 Dec 18
Inovalis
EntityCompany
Shares33,000
Max PriceCA$7.43

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 4.8%.


Management Team

  • Stéphane Amine (51yo)

    President & Director

    • Tenure: 0.5yrs
    • Compensation: CA$250.00k
  • Khalil Hankach

    Chief investment Officer & CFO

    • Tenure: 0.5yrs
    • Compensation: CA$220.00k
  • David Giraud

    Chief Executive Officer

    • Tenure: 6.7yrs
    • Compensation: CA$150.00k

Board Members

  • Dan Argiros (55yo)

    Chairman & Independent Lead Trustee

    • Tenure: 1.6yrs
    • Compensation: CA$39.50k
  • Michael Lagopoulos (62yo)

    Independent Trustee

    • Tenure: 2.4yrs
    • Compensation: CA$38.75k
  • Marc Manasterski (70yo)

    Independent Trustee

    • Tenure: 6.8yrs
    • Compensation: CA$32.25k
  • Jean-Daniel Cohen (57yo)

    Independent Trustee

    • Tenure: 6.8yrs
    • Compensation: CA$32.50k
  • Stéphane Amine (51yo)

    President & Director

    • Tenure: 0.5yrs
    • Compensation: CA$250.00k
  • Jo-Ann Lempert (43yo)

    Independent Trustee

    • Tenure: 2.3yrs
    • Compensation: CA$37.99k
  • Robert Picard (58yo)

    Independent Trustee

    • Tenure: 1.6yrs
    • Compensation: CA$21.73k
  • Michael Missaghie

    Independent Trustee

    • Tenure: 0.08yrs

Company Information

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


Key Information

  • Name: Inovalis Real Estate Investment Trust
  • Ticker: IVRE.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Office REITs
  • Sector: Real Estate
  • Implied Market Cap: CA$263.190m
  • Market Cap: CA$192.644m
  • Listing Market Cap: CA$198.964m
  • Shares outstanding: 24.69m
  • Website: https://www.inovalisreit.com

Number of Employees


Location

  • Inovalis Real Estate Investment Trust
  • 151 Yonge Street
  • 11th floor
  • Toronto
  • Ontario
  • M5C 2W7
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
INO.UNTSX (The Toronto Stock Exchange)YesUnitsCACADApr 2013
IVRE.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDApr 2013

Biography

Inovalis Real Estate Investment Trust is an unincorporated, open-ended real estate investment trust established pursuant to a declaration of trust under the laws of the Province of Ontario. The REIT has be ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 00:26
End of Day Share Price2019/12/03 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.