OTCPK:WPTI.F

Stock Analysis Report

WPT Industrial Real Estate Investment Trust

Executive Summary

WPT Industrial 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 33.3% below its fair value

Revenue is forecast to grow 9.5% per year

Earnings grew by 100% over the past year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results

Shareholders have been diluted in the past year



Snowflake Analysis

Undervalued with proven track record and pays a dividend.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.4%

WPTI.F

1.0%

US REITs

0.7%

US Market


1 Year Return

11.8%

WPTI.F

13.0%

US REITs

18.2%

US Market

Return vs Industry: WPTI.F matched the US REITs industry which returned 13% over the past year.

Return vs Market: WPTI.F underperformed the US Market which returned 18.2% over the past year.


Shareholder returns

WPTI.FIndustryMarket
7 Day1.4%1.0%0.7%
30 Day4.4%1.7%1.5%
90 Day4.0%0.8%5.0%
1 Year18.3%11.8%17.8%13.0%20.8%18.2%
3 Year41.4%19.0%34.3%17.5%45.2%35.8%
5 Year78.9%32.2%58.3%25.6%71.6%52.7%

Price Volatility Vs. Market

How volatile is WPT Industrial Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is WPT Industrial Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

33.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: WPTI.F ($14.2) is trading below our estimate of fair value ($21.29)

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


Price To Earnings Ratio

PE vs Industry: WPTI.F is good value based on its PE Ratio (9.4x) compared to the REITs industry average (38.8x).

PE vs Market: WPTI.F is good value based on its PE Ratio (9.4x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: WPTI.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 WPT Industrial Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

9.5%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if WPTI.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: WPTI.F's revenue (9.5% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: WPTI.F's revenue (9.5% 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 WPTI.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

33.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: WPTI.F has a large one-off gain of $55.1M impacting its September 30 2019 financial results.

Growing Profit Margin: WPTI.F's current net profit margins (77.2%) are higher than last year (47.5%).


Past Earnings Growth Analysis

Earnings Trend: WPTI.F's earnings have grown significantly by 33.5% per year over the past 5 years.

Accelerating Growth: WPTI.F's earnings growth over the past year (100%) exceeds its 5-year average (33.5% per year).

Earnings vs Industry: WPTI.F earnings growth over the past year (100%) exceeded the REITs industry 8.3%.


Return on Equity

High ROE: WPTI.F's Return on Equity (11.6%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is WPT Industrial 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: WPTI.F has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

5.35%

Current Dividend Yield


Dividend Yield vs Market

company5.4%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years5.4%

Current dividend yield vs market & industry

Notable Dividend: WPTI.F's dividend (5.35%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: WPTI.F's dividend (5.35%) 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, WPTI.F has been paying a dividend for less than 10 years.

Growing Dividend: WPTI.F has only been paying a dividend for 7 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (83%), WPTI.F's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: WPTI.F's dividends in 3 years are forecast to be thoroughly covered by earnings (1.2% payout ratio).


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Scott Frederiksen (53yo)

6.9yrs

Tenure

US$3,383,574

Compensation

Mr. Scott Timothy Frederiksen, CCIM, SIOR is the Chief Executive Officer and Principal at WPT Capital Advisors, LLC ("WPT Capital") and its board of managers of WPT Capital. Mr. Frederiksen is the Chief Ex ...


CEO Compensation Analysis

Compensation vs Market: Scott's total compensation ($USD3.38M) is about average for companies of similar size in the US market ($USD2.63M).

Compensation vs Earnings: Scott's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.1yrs

Average Tenure

Experienced Management: WPTI.F's management team is considered experienced (3.1 years average tenure).


Board Age and Tenure

6.8yrs

Average Tenure

62yo

Average Age

Experienced Board: WPTI.F's board of directors are considered experienced (6.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$2,911,48026 Sep 19
Scott Frederiksen
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares211,744
Max PriceUS$13.75

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 16.6%.


Management Team

  • Scott Frederiksen (53yo)

    Chairman & CEO

    • Tenure: 6.9yrs
    • Compensation: US$3.38m
  • Judd Gilats

    Chief Financial Officer

    • Tenure: 2.5yrs
    • Compensation: US$2.11m
  • Matt Cimino

    COO, General Counsel & Secretary

    • Tenure: 3.1yrs
    • Compensation: US$2.57m

Board Members

  • Stuart H. Smith (73yo)

    Independent Trustee

    • Tenure: 3.6yrs
    • Compensation: US$76.13k
  • Robert Wolf (59yo)

    Lead Trustee

    • Tenure: 6.8yrs
    • Compensation: US$127.13k
  • Sarah Kavanagh (62yo)

    Independent Trustee

    • Tenure: 6.8yrs
    • Compensation: US$100.13k
  • Scott Frederiksen (53yo)

    Chairman & CEO

    • Tenure: 6.9yrs
    • Compensation: US$3.38m
  • Milo Arkema (68yo)

    Independent Trustee

    • Tenure: 6.8yrs
    • Compensation: US$112.13k
  • Pam Spackman (67yo)

    Independent Trustee

    • Tenure: 2.6yrs
    • Compensation: US$118.13k
  • Louie DiNunzio (50yo)

    Independent Trustee

    • Tenure: 3.6yrs
    • Compensation: US$121.13k

Company Information

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


Key Information

  • Name: WPT Industrial Real Estate Investment Trust
  • Ticker: WPTI.F
  • Exchange: OTCPK
  • Founded: 2013
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Implied Market Cap: US$936.604m
  • Market Cap: US$911.576m
  • Shares outstanding: 66.10m
  • Website: https://www.wptreit.com

Number of Employees


Location

  • WPT Industrial Real Estate Investment Trust
  • 199 Bay Street
  • Suite 4000
  • Toronto
  • Ontario
  • M5L 1A9
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
WIR.UTSX (The Toronto Stock Exchange)YesOrdinary UnitsCAUSDApr 2013
WPTI.FOTCPK (Pink Sheets LLC)YesOrdinary UnitsUSUSDApr 2013

Biography

WPT Industrial 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  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/10 00:35
End of Day Share Price2019/12/09 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.