OTCPK:RDPE.F

Stock Analysis Report

Executive Summary

Redefine is a leading South African-based Real Estate Investment Trust (REIT), invested in a diverse property asset platform valued at R95.4 billion (FY18: R91.3 billion).

Rewards

PE ratio (10x) is below the US market (18.5x)

Risk Analysis

No risks detected for RDPE.F from our risk checks.


Snowflake Analysis

Fair value with acceptable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Information is not available.


Market Performance


7 Day Return

0%

RDPE.F

1.0%

US REITs

0.7%

US Market


1 Year Return

n/a

RDPE.F

13.0%

US REITs

18.2%

US Market

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

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


Shareholder returns

RDPE.FIndustryMarket
7 Day0%1.0%0.7%
30 Day0%1.7%1.5%
90 Day0%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 Year-30.9%-30.9%58.3%25.6%71.6%52.7%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Redefine Properties undervalued compared to its fair value and its price relative to the market?

9.99x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: RDPE.F ($0.63) is trading above our estimate of fair value ($0.1)

Significantly Below Fair Value: RDPE.F is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: RDPE.F is good value based on its PE Ratio (10x) compared to the REITs industry average (38.8x).

PE vs Market: RDPE.F is good value based on its PE Ratio (10x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: RDPE.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 Redefine Properties forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

-4.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: RDPE.F's earnings are forecast to decline over the next 3 years (-4.1% per year).

Earnings vs Market: RDPE.F's earnings are forecast to decline over the next 3 years (-4.1% per year).

High Growth Earnings: RDPE.F's earnings are forecast to decline over the next 3 years.

Revenue vs Market: RDPE.F's revenue (3.1% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: RDPE.F's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: RDPE.F's Return on Equity is forecast to be low in 3 years time (14%).


Next Steps

Past Performance

How has Redefine Properties performed over the past 5 years?

1.7%

Historical annual earnings growth


Earnings and Revenue History

Information is not available.

Information is not available.


Past Earnings Growth Analysis

Earnings Trend: RDPE.F's earnings have grown by 1.7% per year over the past 5 years.

Accelerating Growth: RDPE.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: RDPE.F had negative earnings growth (-6%) over the past year, making it difficult to compare to the REITs industry average (8.3%).


Return on Equity

High ROE: RDPE.F's Return on Equity (7.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Redefine Properties'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: RDPE.F has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

12.62%

Current Dividend Yield


Dividend Yield vs Market

company12.6%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years12.8%

Current dividend yield vs market & industry

Notable Dividend: RDPE.F's dividend (12.62%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: RDPE.F's dividend (12.62%) 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, RDPE.F has been paying a dividend for less than 10 years.

Growing Dividend: RDPE.F's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (118.3%), RDPE.F's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: RDPE.F's dividends in 3 years are forecast to be covered by earnings (99.4% payout ratio).


Next Steps

Management

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

5.9yrs

Average management tenure


CEO

Andrew König (52yo)

5.1yrs

Tenure

SAR11,516,000

Compensation

Mr. Andrew Joseph König, BCom, BCom, B Acc CA (SA), has been the Chief Executive Officer of Fountainhead Property Trust Management Limited since November 30, 2014. Mr. König has been the Chief Executive Of ...


CEO Compensation Analysis

Information is not available.

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


Management Age and Tenure

5.9yrs

Average Tenure

61yo

Average Age

Experienced Management: RDPE.F's management team is seasoned and experienced (5.9 years average tenure).


Board Age and Tenure

3.0yrs

Average Tenure

51yo

Average Age

Experienced Board: RDPE.F's board of directors are not considered experienced ( 3 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

BuySAR10,96511 Nov 19
Marius Barkhuysen
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director
Shares20,000
Max PriceSAR0.55
BuySAR11,22529 May 19
Leon Kok
EntityIndividual
Role
Member of the Board of Directors
Financial Director & Executive Director
Shares17,058
Max PriceSAR0.66
BuySAR13,22929 May 19
Marc Wainer
EntityIndividual
Role
Senior Key Executive
Shares20,102
Max PriceSAR0.66
SellSAR989,58203 Apr 19
The Drawood Trust
EntityCompany
Shares1,430,295
Max PriceSAR0.69
SellSAR34,51403 Apr 19
Marc Wainer
EntityIndividual
Role
Senior Key Executive
Shares49,760
Max PriceSAR0.69
SellSAR344,55006 Feb 19
Clearwater Capital (Holdings) (Pty) Ltd
EntityCompany
Shares434,420
Max PriceSAR0.80
SellSAR270,30501 Feb 19
Clearwater Capital (Holdings) (Pty) Ltd
EntityCompany
Shares340,036
Max PriceSAR0.79

Ownership Breakdown

Information is not available.


Management Team

  • Marc Wainer (71yo)

    • Tenure: 19.8yrs
    • Compensation: SAR15.24m
  • David Rice (63yo)

    Chief Operating Officer

    • Tenure: 8.5yrs
    • Compensation: SAR10.32m
  • Andrew König (52yo)

    CEO & Executive Director

    • Tenure: 5.1yrs
    • Compensation: SAR11.52m
  • Mike Ruttell (61yo)

    Executive Director of Development

    • Tenure: 6.7yrs
    • Compensation: SAR5.11m
  • Leon Kok (47yo)

    Financial Director & Executive Director

    • Tenure: 4.9yrs
    • Compensation: SAR6.80m
  • Bronwyn Baker

    Company Secretary

    • Tenure: 4.1yrs

Board Members

  • Harish Mehta (69yo)

    Non-Executive Director

    • Tenure: 10yrs
    • Compensation: SAR496.00k
  • Sipho Pityana (60yo)

    Independent Non-Executive Chairperson

    • Tenure: 0.3yrs
  • Ntombi Langa-Royds (57yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: SAR551.00k
  • Andrew König (52yo)

    CEO & Executive Director

    • Tenure: 5.1yrs
    • Compensation: SAR11.52m
  • Daisy Naidoo (47yo)

    Independent Non-Executive Director

    • Tenure: 0.08yrs
  • Lesego Sennelo (41yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
  • Marius Barkhuysen (62yo)

    Independent Non-Executive Director

    • Tenure: 3.8yrs
    • Compensation: SAR519.00k
  • Leon Kok (47yo)

    Financial Director & Executive Director

    • Tenure: 4.9yrs
    • Compensation: SAR6.80m
  • Amanda Dambuza (41yo)

    Independent Non-Executive Director

    • Tenure: 0.8yrs
  • Bridgitte Mathews (50yo)

    Lead Independent Non-Executive Director

    • Tenure: 2.1yrs
    • Compensation: SAR749.00k

Company Information

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


Key Information

  • Name: Redefine Properties Limited
  • Ticker: RDPE.F
  • Exchange: OTCPK
  • Founded: 1999
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: SAR42.857b
  • Listing Market Cap: SAR2.837b
  • Shares outstanding: 5.43b
  • Website: https://www.redefine.co.za

Number of Employees


Location

  • Redefine Properties Limited
  • Rosebank Towers
  • Office Level 5
  • Johannesburg
  • Gauteng
  • 2196
  • South Africa

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
RDFJSE (The Johannesburg Securities Exchange)YesCommon SharesZAZARAug 2014
RDPE.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2014

Biography

Redefine is a leading South African-based Real Estate Investment Trust (REIT), with a diverse, property asset platform valued at R92.0 billion (FY18: R91.3 billion). Redefine’s portfolio is anchored domest ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/30 00:41
End of Day Share Price2019/07/02 00:00
Earnings2019/02/28
Annual Earnings2018/08/31


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.