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EQU

Equites Property FundJSE:EQU Stock Report

Market Cap

R15.0b

7D

-1.0%

1Y

23.3%

Updated

16 Oct, 2021

Data

Company Financials +
EQU fundamental analysis
Snowflake Score
Valuation4/6
Future Growth1/6
Past Performance4/6
Financial Health4/6
Dividends2/6

EQU Overview

Equites is a listed Real Estate Investment Trust (“REIT”) with a focus on owning and developing modern, well-located logistics properties let to A-grade tenants on long-dated leases.

Equites Property Fund Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Equites Property Fund
Historical stock prices
Current Share PriceR21.09
52 Week HighR15.13
52 Week LowR21.97
Beta0.34
1 Month Change3.18%
3 Month Change13.51%
1 Year Change23.33%
3 Year Change-1.59%
5 Year Change31.81%
Change since IPO96.19%

Recent News & Updates

Shareholder Returns

EQUZA REITsZA Market
7D-1.0%-0.4%1.6%
1Y23.3%39.5%21.3%

Return vs Industry: EQU underperformed the ZA REITs industry which returned 39.5% over the past year.

Return vs Market: EQU exceeded the ZA Market which returned 21.3% over the past year.

Price Volatility

Is EQU's price volatile compared to industry and market?
EQU volatility
EQU Beta0.34
Industry Beta0.89
Market Beta1

Stable Share Price: EQU is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: EQU's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/a29Andrea Taverna-Turisanhttps://www.equites.co.za

Equites is a listed Real Estate Investment Trust (“REIT”) with a focus on owning and developing modern, well-located logistics properties let to A-grade tenants on long-dated leases. Equites has established itself as a leading owner and developer of high-quality logistics assets in SA and the UK and is the only specialist logistics REIT listed on the JSE. This gives shareholders pure exposure to an asset class that is expected to outperform over time.

Equites Property Fund Fundamentals Summary

How do Equites Property Fund's earnings and revenue compare to its market cap?
EQU fundamental statistics
Market CapR14.97b
Earnings (TTM)R1.70b
Revenue (TTM)R1.46b

8.8x

P/E Ratio

10.3x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EQU income statement (TTM)
RevenueR1.46b
Cost of RevenueR199.18m
Gross ProfitR1.26b
Expenses-R439.19m
EarningsR1.70b

Last Reported Earnings

Aug 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)2.40
Gross Margin86.36%
Net Profit Margin116.44%
Debt/Equity Ratio44.0%

How did EQU perform over the long term?

See historical performance and comparison

Dividends

7.5%

Current Dividend Yield

77%

Payout Ratio

Does EQU pay a reliable dividends?

See EQU dividend history and benchmarks
When do you need to buy EQU by to receive an upcoming dividend?
Equites Property Fund dividend dates
Ex Dividend DateOct 20 2021
Dividend Pay DateOct 25 2021
Days until Ex dividend3 days
Days until Dividend pay date8 days

Does EQU pay a reliable dividends?

See EQU dividend history and benchmarks

Valuation

Is Equites Property Fund undervalued compared to its fair value and its price relative to the market?

30.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EQU (ZAR21.09) is trading below our estimate of fair value (ZAR30.43)

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


Price To Earnings Ratio

PE vs Industry: EQU is good value based on its PE Ratio (8.8x) compared to the ZA REITs industry average (11.9x).

PE vs Market: EQU is good value based on its PE Ratio (8.8x) compared to the ZA market (11.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: EQU is overvalued based on its PB Ratio (1.2x) compared to the ZA REITs industry average (0.6x).


Future Growth

How is Equites Property Fund forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

6.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if EQU's forecast earnings growth is above the savings rate (8.8%).

Earnings vs Market: Insufficient data to determine if EQU's earnings are forecast to grow faster than the ZA market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EQU's revenue (6.7% per year) is forecast to grow faster than the ZA market (6.1% per year).

High Growth Revenue: EQU's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: EQU's Return on Equity is forecast to be low in 3 years time (13.4%).


Past Performance

How has Equites Property Fund performed over the past 5 years?

0.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EQU has a large one-off gain of ZAR456.5M impacting its August 31 2021 financial results.

Growing Profit Margin: EQU's current net profit margins are higher than last year (7.4%).


Past Earnings Growth Analysis

Earnings Trend: EQU's earnings have grown by 0.6% per year over the past 5 years.

Accelerating Growth: EQU's earnings growth over the past year (2180.1%) exceeds its 5-year average (0.6% per year).

Earnings vs Industry: EQU earnings growth over the past year (2180.1%) exceeded the REITs industry 111.5%.


Return on Equity

High ROE: EQU's Return on Equity (13.1%) is considered low.


Financial Health

How is Equites Property Fund's financial position?


Financial Position Analysis

Short Term Liabilities: EQU's short term assets (ZAR1.5B) exceed its short term liabilities (ZAR1.3B).

Long Term Liabilities: EQU's short term assets (ZAR1.5B) do not cover its long term liabilities (ZAR6.6B).


Debt to Equity History and Analysis

Debt Level: EQU's debt to equity ratio (44%) is considered high.

Reducing Debt: EQU's debt to equity ratio has reduced from 55.3% to 44% over the past 5 years.

Debt Coverage: EQU's debt is well covered by operating cash flow (20.4%).

Interest Coverage: EQU's interest payments on its debt are well covered by EBIT (330.8x coverage).


Balance Sheet


Dividend

What is Equites Property Fund current dividend yield, its reliability and sustainability?

7.54%

Current Dividend Yield


Upcoming Dividend Payment

TodayOct 17 2021Ex Dividend DateOct 20 2021Dividend Pay DateOct 25 20215 days from Ex DividendBuy in the next 3 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: EQU's dividend (7.54%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: EQU's dividend (7.54%) is low compared to the top 25% of dividend payers in the ZA market (8.09%).


Stability and Growth of Payments

Stable Dividend: EQU has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: EQU's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (76.7%), EQU's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: EQU's dividends in 3 years are not forecast to be well covered by earnings (103.3% payout ratio).


Next Steps

Management

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

1.8yrs

Average board tenure


CEO

Andrea Taverna-Turisan (52 yo)

no data

Tenure

R14,061,000

Compensation

Mr. Andrea Taverna-Turisan serves as Chief Executive Officer and Executive Director at Equites Property Fund Limited. He immigrated to South Africa in 1995 and initially worked as a Commercial Property Bro...


CEO Compensation Analysis

Compensation vs Market: Andrea's total compensation ($USD961.60K) is about average for companies of similar size in the ZA market ($USD895.91K).

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


Board Members

Experienced Board: EQU's board of directors are not considered experienced ( 1.8 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 14.8%.


Top Shareholders

Company Information

Equites Property Fund Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Equites Property Fund Limited
  • Ticker: EQU
  • Exchange: JSE
  • Founded: NaN
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Market Cap: R14.967b
  • Shares outstanding: 709.70m
  • Website: https://www.equites.co.za

Number of Employees


Location

  • Equites Property Fund Limited
  • Portside Towers
  • 14th Floor
  • Cape Town
  • Western Cape
  • 8001
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/16 17:02
End of Day Share Price2021/10/15 00:00
Earnings2021/08/31
Annual Earnings2021/02/28


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.