OTCPK:PRLE

Stock Analysis Report

Pillarstone Capital REIT

Executive Summary

Paragon Real Estate Equity and Investment Trust does not have significant operations.


Snowflake Analysis

Undervalued with proven track record.

Share Price & News

How has Pillarstone Capital REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

PRLE

-0.07%

US REITs

-1.1%

US Market


1 Year Return

-45.5%

PRLE

16.0%

US REITs

17.9%

US Market

Return vs Industry: PRLE underperformed the US REITs industry which returned 16% over the past year.

Return vs Market: PRLE underperformed the US Market which returned 17.9% over the past year.


Shareholder returns

PRLEIndustryMarket
7 Day0%-0.07%-1.1%
30 Day0%3.6%1.4%
90 Dayn/a7.8%6.9%
1 Year-45.5%-45.5%20.7%16.0%20.3%17.9%
3 Year-66.2%-66.2%37.9%20.6%47.8%38.3%
5 Year-17.2%-17.2%60.3%27.3%71.9%53.0%

Price Volatility Vs. Market

How volatile is Pillarstone Capital REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Pillarstone Capital REIT undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PRLE ($1.2) is trading below our estimate of fair value ($8.21)

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


Price To Earnings Ratio

PE vs Industry: PRLE is good value based on its PE Ratio (0.3x) compared to the REITs industry average (37.2x).

PE vs Market: PRLE is good value based on its PE Ratio (0.3x) compared to the US market (18.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PRLE is good value based on its PB Ratio (0.4x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is Pillarstone Capital REIT forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

5.2%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Pillarstone Capital REIT has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

  • Examine whether Pillarstone Capital REIT is trading at an attractive price based on how much it is expected to earn in the future, and relative to its industry peers and the wider market.
  • While we do not consider unaudited financials to be a reliable enough to include in our analysis, you can access them on the OTC Markets Website. If you are looking for more of a qualitative research into the company, you can access Pillarstone Capital REIT's filings and announcements here.
  • Explore growth companies in the Real Estate industry.

Past Performance

How has Pillarstone Capital REIT performed over the past 5 years?

70.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PRLE has a large one-off gain of $7.7M impacting its September 30 2019 financial results.

Growing Profit Margin: PRLE's current net profit margins (9.8%) are higher than last year (0.6%).


Past Earnings Growth Analysis

Earnings Trend: PRLE has become profitable over the past 5 years, growing earnings by 70% per year.

Accelerating Growth: PRLE's earnings growth over the past year (1383.7%) exceeds its 5-year average (70% per year).

Earnings vs Industry: PRLE earnings growth over the past year (1383.7%) exceeded the REITs industry 7.6%.


Return on Equity

High ROE: Whilst PRLE's Return on Equity (34.97%) is high, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pillarstone Capital REIT'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: PRLE has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Pillarstone Capital REIT's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate PRLE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate PRLE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PRLE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PRLE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PRLE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

16.9yrs

Average board tenure


CEO

Jim Mastandrea (76yo)

16.8yrs

Tenure

0

Mr. James C. Mastandrea, also known as Jim, has been the Chief Executive Officer at Whitestone REIT since October 2006. Mr. Mastandrea has been the President and Chairman of the Board of Pillarstone Capita ...


Board Members

NamePositionTenureCompensationOwnership
James Mastandrea
Chairman16.8yrsno data2.89% $485.3k
John Dee
Senior VP16.9yrsno data0.99% $165.7k
Paul Lambert
21.3yrsUS$51.65k10.56% $1.8m
Dennis Chookaszian
3.7yrsno data0.49% $82.8k
Kathy Jassem
1.5yrsno datano data

16.9yrs

Average Tenure

73yo

Average Age

Experienced Board: PRLE's board of directors are seasoned and experienced ( 16.9 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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Pillarstone Capital REIT's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pillarstone Capital REIT
  • Ticker: PRLE
  • Exchange: OTCPK
  • Founded: 1994
  • Industry: Residential REITs
  • Sector: Real Estate
  • Implied Market Cap: US$16.787m
  • Market Cap: US$486.202k
  • Shares outstanding: 13.99m
  • Website: https://www.pillarstone-capital.com

Number of Employees


Location

  • Pillarstone Capital REIT
  • 2600 South Gessner
  • Suite 555
  • Houston
  • Texas
  • 77063
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRLEOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDApr 1996

Biography

Paragon Real Estate Equity and Investment Trust does not have significant operations. It primarily focuses on searching for and reviewing real estate opportunities, including land development, retail, office, industrial, hotel, other real estate investment and operating companies, and joint venture investments. The company was founded in 1994 and is headquartered in Houston, Texas with an additional office in Cleveland, Ohio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/23 00:38
End of Day Share Price2019/11/26 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.