OTCPK:SRRT.F

Stock Analysis Report

Executive Summary

Slate Retail REIT is a real estate investment trust focused on U.S.

Rewards

Trading at 23.9% below its fair value

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Profit margins (2.3%) are lower than last year (30%)



Snowflake Analysis

Average dividend payer and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.7%

SRRT.F

2.1%

US REITs

1.7%

US Market


1 Year Return

9.1%

SRRT.F

18.5%

US REITs

23.6%

US Market

Return vs Industry: SRRT.F underperformed the US REITs industry which returned 17.9% over the past year.

Return vs Market: SRRT.F underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

SRRT.FIndustryMarket
7 Day1.7%2.1%1.7%
30 Day3.3%2.9%3.5%
90 Dayn/a-0.7%11.7%
1 Year19.3%9.1%23.4%18.5%26.2%23.6%
3 Year23.0%-4.6%35.2%18.2%53.2%43.3%
5 Yearn/a46.1%16.0%75.5%56.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is Slate Retail REIT undervalued compared to its fair value and its price relative to the market?

22.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SRRT.F ($10.08) is trading below our estimate of fair value ($13.23)

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


Price To Earnings Ratio

PE vs Industry: SRRT.F is poor value based on its PE Ratio (132.2x) compared to the REITs industry average (37.8x).

PE vs Market: SRRT.F is poor value based on its PE Ratio (132.2x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SRRT.F is good value based on its PB Ratio (1.1x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Slate Retail REIT forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

-1.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if SRRT.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: SRRT.F's revenue is expected to decline over the next 3 years (-1.8% per year).

High Growth Revenue: SRRT.F's revenue is forecast to decline over the next 3 years (-1.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Slate Retail REIT performed over the past 5 years?

1.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SRRT.F has a large one-off loss of $45.3M impacting its September 30 2019 financial results.

Growing Profit Margin: SRRT.F's current net profit margins (2.3%) are lower than last year (30%).


Past Earnings Growth Analysis

Earnings Trend: SRRT.F's earnings have grown by 1.2% per year over the past 5 years.

Accelerating Growth: SRRT.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: SRRT.F had negative earnings growth (-92.3%) over the past year, making it difficult to compare to the REITs industry average (8.1%).


Return on Equity

High ROE: SRRT.F's Return on Equity (0.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Slate Retail 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: SRRT.F has a high level of physical assets or inventory.

Debt Coverage by Assets: SRRT.F's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

What is Slate Retail REIT's current dividend yield, its reliability and sustainability?

8.43%

Current Dividend Yield


Upcoming Dividend Payment

Purchase Slate Retail REIT before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company8.4%marketbottom25%1.4%markettop25%3.7%industryaverage3.6%forecastin3Years8.5%

Current dividend yield vs market & industry

Notable Dividend: SRRT.F's dividend (8.52%) is higher than the bottom 25% of dividend payers in the US market (1.4%).

High Dividend: SRRT.F's dividend (8.52%) is in the top 25% of dividend payers in the US market (3.66%)


Stability and Growth of Payments

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

Growing Dividend: SRRT.F's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67%), SRRT.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SRRT.F's dividends in 3 years are forecast to be thoroughly covered by earnings (1.7% payout ratio).


Next Steps

Management

What is the CEO of Slate Retail REIT's salary, the management and board of directors tenure and is there insider trading?

3.0yrs

Average management tenure


CEO

Greg Stevenson 0

4.4yrs

Tenure

US$700,000

Compensation

Mr. Greg Stevenson has been Chief Executive Officer of the Slate Retail REIT on August 12, 2015. Mr. Stevenson had been responsible for asset management and operational oversight of the REIT’s portfolio si ...


CEO Compensation Analysis

Compensation vs Market: Greg's total compensation ($USD535.78K) is below average for companies of similar size in the US market ($USD1.70M).

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


Management Age and Tenure

3.0yrs

Average Tenure

Experienced Management: SRRT.F's management team is considered experienced (3 years average tenure).


Board Age and Tenure

7.9yrs

Average Tenure

55yo

Average Age

Experienced Board: SRRT.F's board of directors are considered experienced (7.9 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$24,84712 Nov 19
Greg Stevenson
EntityIndividual
Role
Chief Executive Officer
Chief Executive Officer
Shares2,520
Max PriceUS$9.86

Ownership Breakdown

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


Management Team

  • Ramsey Ali

    Corporate Secretary & General Counsel of Slate Asset Management LP

    • Tenure: 7yrs
  • Greg Stevenson

    Chief Executive Officer

    • Tenure: 4.4yrs
    • Compensation: US$700.00k
  • Lisa Rowe

    Senior Vice President of Finance & Taxation - Slate Asset Management LP

    • Tenure: 7yrs
  • Andrew Agatep

    Chief Financial Officer

    • Tenure: 0.08yrs
  • Brandon Donnelly

    MD & Vice President of Development

    • Katie Fasken

      Director of Business Development & Investor Relations

      • Tenure: 4yrs
    • David Dunn

      Chief Operating Officer

      • Tenure: 0.08yrs
    • Will Miller

      Vice President of Asset Management

      • Tenure: 2.1yrs
    • Amanda Giardino

      Manager of Financial Analysis & Reporting

      • Tenure: 2.1yrs
    • Madeline Sarracini

      Analyst


      Board Members

      • Sam Altman (60yo)

        Independent Trustee

        • Tenure: 7.9yrs
        • Compensation: US$51.00k
      • Colum Bastable (72yo)

        Independent Trustee

        • Tenure: 5.8yrs
        • Compensation: US$64.50k
      • Tom Farley (63yo)

        Chair of the Board

        • Tenure: 5.6yrs
        • Compensation: US$96.00k
      • Andrea Stephen (55yo)

        Independent Trustee

        • Tenure: 2.6yrs
        • Compensation: US$56.00k
      • Pat Flatley (55yo)

        Independent Trustee

        • Tenure: 7.9yrs
        • Compensation: US$42.00k
      • Blair Welch (46yo)

        • Tenure: 8yrs
      • Brady Welch (49yo)

        • Tenure: 7.9yrs

      Company Information

      Slate Retail REIT's company bio, employee growth, exchange listings and data sources


      Key Information

      • Name: Slate Retail REIT
      • Ticker: SRRT.F
      • Exchange: OTCPK
      • Founded:
      • Industry: Retail REITs
      • Sector: Real Estate
      • Implied Market Cap: CA$453.980m
      • Market Cap: CA$439.519m
      • Listing Market Cap: CA$347.276m
      • Shares outstanding: 43.99m
      • Website: https://www.slateretailreit.com

      Location

      • Slate Retail REIT
      • 121 King Street West
      • Suite 200
      • Toronto
      • Ontario
      • M5H 3T9
      • Canada

      Listings

      TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
      SRT.UNTSX (The Toronto Stock Exchange)YesClass U UnitsCACADApr 2014
      SRRT.FOTCPK (Pink Sheets LLC)YesClass U UnitsUSUSDApr 2014

      Biography

      Slate Retail REIT is a real estate investment trust focused on U.S. grocery-anchored real estate. The REIT owns and operates approximately U.S. $1.3 billion of assets located across the top 50 U.S. metro markets that are visited regularly by consumers for their everyday needs. The REIT’s diversified portfolio and quality tenant covenants, provides a strong basis to continue to grow unitholder distributions and the flexibility to capitalize on opportunities that drive value appreciation. 


      Company Analysis and Financial Data Status

      All financial data provided by Standard & Poor's Capital IQ.
      DataLast Updated (UTC time)
      Company Analysis2020/01/20 00:38
      End of Day Share Price2020/01/17 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.