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EQU

Equites Property Fund JSE:EQU Stock Report

Last Price

R16.12

Market Cap

R12.6b

7D

-2.2%

1Y

-21.8%

Updated

04 Oct, 2022

Data

Company Financials +
EQU fundamental analysis
Snowflake Score
Valuation3/6
Future Growth1/6
Past Performance4/6
Financial Health2/6
Dividends2/6

EQU Stock 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 PriceR16.12
52 Week HighR23.92
52 Week LowR15.74
Beta0.36
1 Month Change-9.59%
3 Month Change-11.04%
1 Year Change-21.79%
3 Year Change-24.46%
5 Year Change-23.24%
Change since IPO49.95%

Recent News & Updates

Shareholder Returns

EQUZA REITsZA Market
7D-2.2%-1.3%1.0%
1Y-21.8%-10.4%-5.2%

Return vs Industry: EQU underperformed the ZA REITs industry which returned -10.4% over the past year.

Return vs Market: EQU underperformed the ZA Market which returned -5.2% over the past year.

Price Volatility

Is EQU's price volatile compared to industry and market?
EQU volatility
EQU Average Weekly Movement2.8%
REITs Industry Average Movement4.4%
Market Average Movement5.5%
10% most volatile stocks in ZA Market10.2%
10% least volatile stocks in ZA Market3.1%

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

Volatility Over Time: EQU's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/an/aAndrea 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 CapR12.55b
Earnings (TTM)R2.03b
Revenue (TTM)R1.69b

6.2x

P/E Ratio

7.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
EQU income statement (TTM)
RevenueR1.69b
Cost of RevenueR240.42m
Gross ProfitR1.45b
Other Expenses-R585.51m
EarningsR2.03b

Last Reported Earnings

Feb 28, 2022

Next Earnings Date

Oct 05, 2022

Earnings per share (EPS)2.61
Gross Margin85.75%
Net Profit Margin120.45%
Debt/Equity Ratio51.4%

How did EQU perform over the long term?

See historical performance and comparison

Dividends

10.1%

Current Dividend Yield

154%

Payout Ratio
We’ve recently updated our valuation analysis.

Valuation

Is EQU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • Analyst Forecast

Key Valuation Metric

Which metric is best to use when looking at relative valuation for EQU?

Other financial metrics that can be useful for relative valuation.

EQU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue14.2x
Enterprise Value/EBITDA17.4x
PEG Ration/a

Price to Earnings Ratio vs Peers

How does EQU's PE Ratio compare to its peers?

EQU PE Ratio vs Peers
The above table shows the PE ratio for EQU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPEEstimated GrowthMarket Cap
Peer Average11.9x
VKE Vukile Property Fund
6.5xn/aR12.1b
HYP Hyprop Investments
9.1xn/aR12.2b
FFA Fortress REIT
25.8xn/aR14.8b
SSS Stor-Age Property REIT
6.2xn/aR6.2b
EQU Equites Property Fund
6.2xn/aR12.3b

Price-To-Earnings vs Peers: EQU is good value based on its Price-To-Earnings Ratio (6.2x) compared to the peer average (11.6x).


Price to Earnings Ratio vs Industry

How does EQU's PE Ratio compare vs other companies in the ZA REITs Industry?

Price-To-Earnings vs Industry: EQU is good value based on its Price-To-Earnings Ratio (6.2x) compared to the ZA REITs industry average (7.6x)


Price to Earnings Ratio vs Fair Ratio

What is EQU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

EQU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio6.2x
Fair PE Ration/a

Price-To-Earnings vs Fair Ratio: Insufficient data to calculate EQU's Price-To-Earnings Fair Ratio for valuation analysis.


Share Price vs Fair Value

What is the Fair Price of EQU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: EQU (ZAR16.12) is trading above our estimate of fair value (ZAR12.79)

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


Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Analyst Forecast: Target price is more than 20% higher than the current share price and analysts are within a statistically confident range of agreement.


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Future Growth

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

Future Growth Score

1/6

Future Growth Score 1/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


13.2%

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 (9%).

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 EQU's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: EQU's revenue (13.2% per year) is forecast to grow faster than the ZA market (5.3% per year).

High Growth Revenue: EQU's revenue (13.2% 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 (6.7%).


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Past Performance

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

Past Performance Score

4/6

Past Performance Score 4/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


12.3%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: EQU has a large one-off gain of ZAR1.2B impacting its February 28 2022 financial results.

Growing Profit Margin: EQU's current net profit margins are higher than last year (34.4%).


Past Earnings Growth Analysis

Earnings Trend: EQU's earnings have grown by 12.3% per year over the past 5 years.

Accelerating Growth: EQU's earnings growth over the past year (398.8%) exceeds its 5-year average (12.3% per year).

Earnings vs Industry: EQU earnings growth over the past year (398.8%) exceeded the REITs industry 146%.


Return on Equity

High ROE: EQU's Return on Equity (13.5%) is considered low.


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Financial Health

How is Equites Property Fund's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: EQU's short term assets (ZAR1.9B) exceed its short term liabilities (ZAR1.7B).

Long Term Liabilities: EQU's short term assets (ZAR1.9B) do not cover its long term liabilities (ZAR8.5B).


Debt to Equity History and Analysis

Debt Level: EQU's net debt to equity ratio (48.1%) is considered high.

Reducing Debt: EQU's debt to equity ratio has increased from 27.4% to 51.4% over the past 5 years.

Debt Coverage: EQU's debt is not well covered by operating cash flow (8.9%).

Interest Coverage: EQU's interest payments on its debt are well covered by EBIT (242.2x coverage).


Balance Sheet


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Dividend

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

Dividend Score

2/6

Dividend Score 2/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Cash Flow Coverage


10.11%

Current Dividend Yield

Dividend Yield vs Market

Equites Property Fund Dividend Yield vs Market
How does Equites Property Fund dividend yield compare to the market?
SegmentDividend Yield
Company (Equites Property Fund)10.1%
Market Bottom 25% (ZA)3.5%
Market Top 25% (ZA)8.9%
Industry Average (REITs)10.3%
Analyst forecast in 3 Years (Equites Property Fund)11.3%

Notable Dividend: EQU's dividend (10.11%) is higher than the bottom 25% of dividend payers in the ZA market (3.54%).

High Dividend: EQU's dividend (10.11%) is in the top 25% of dividend payers in the ZA market (8.93%)


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 8 years.


Earnings Payout to Shareholders

Earnings Coverage: With its high payout ratio (153.5%), EQU's dividend payments are not well covered by earnings.


Cash Payout to Shareholders

Cash Flow Coverage: With its high cash payout ratio (158.7%), EQU's dividend payments are not well covered by cash flows.


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Management

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

2.8yrs

Average board tenure


CEO

Andrea Taverna-Turisan (53 yo)

no data

Tenure

R19,314,000

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

Andrea Taverna-Turisan's Compensation vs Equites Property Fund Earnings
How has Andrea Taverna-Turisan's remuneration changed compared to Equites Property Fund's earnings?
DateTotal Comp.SalaryCompany Earnings
Feb 28 2022R19mR5m

R2b

Nov 30 2021n/an/a

R2b

Aug 31 2021n/an/a

R2b

May 31 2021n/an/a

R1b

Feb 28 2021R15mR4m

R407m

Nov 30 2020n/an/a

R241m

Aug 31 2020n/an/a

R75m

May 31 2020n/an/a

R378m

Feb 29 2020R16mR3m

R682m

Nov 30 2019n/an/a

R806m

Aug 31 2019n/an/a

R930m

May 31 2019n/an/a

R800m

Feb 28 2019R17mR3m

R670m

Nov 30 2018n/an/a

R650m

Aug 31 2018n/an/a

R629m

May 31 2018n/an/a

R750m

Feb 28 2018R12mR3m

R870m

Nov 30 2017n/an/a

R905m

Aug 31 2017n/an/a

R940m

May 31 2017n/an/a

R862m

Feb 28 2017R7mR2m

R785m

Nov 30 2016n/an/a

R636m

Aug 31 2016n/an/a

R487m

May 31 2016n/an/a

R435m

Feb 29 2016R4mR2m

R384m

Compensation vs Market: Andrea's total compensation ($USD1.10M) is about average for companies of similar size in the ZA market ($USD909.43K).

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


Board Members

Experienced Board: EQU's board of directors are not considered experienced ( 2.8 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

JSE:EQU Recent Insider Transactions by Companies or Individuals
DateValueNameEntityRoleSharesMax Price
15 Jun 22SellR1,420,047Gerhard GousIndividual74,348R19.10
15 Jun 22SellR5,416,944Andrea Taverna-TurisanIndividual279,080R19.41
09 Jun 22SellR306,337Gerhard GousIndividual16,981R18.04
09 Jun 22SellR2,066,111Andrea Taverna-TurisanIndividual110,919R19.14
07 Jun 22SellR1,906,000Chiluan Holdings (Pty) Ltd.Company100,000R19.06
27 May 22BuyR115,672Nazeem KhanIndividual5,842R19.80
27 May 22BuyR34,690Ruth Benjamin-SwalesIndividual1,752R19.80
27 May 22BuyR2,930Keabetswe NtuliIndividual148R19.80
23 Feb 22BuyR72,797Keabetswe NtuliIndividual3,455R21.07
22 Oct 21BuyR102,980Nazeem KhanIndividual5,201R19.80
22 Oct 21BuyR36,016Ruth Benjamin-SwalesIndividual1,819R19.80

Ownership Breakdown

What is the ownership structure of EQU?
Owner TypeNumber of SharesOwnership Percentage
Private Companies4,120,6480.5%
Individual Insiders30,770,3674.0%
General Public98,431,70212.6%
Institutions645,362,31182.9%

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.7%.


Top Shareholders

Top 25 shareholders own 81.43% of the company
OwnershipNameSharesCurrent ValueChange %Portfolio %
15.67%
Public Investment Corporation Limited
121,988,796ZAR2.0b61.71%0.25%
10.64%
Old Mutual Investment Group (Pty) Limited
82,817,626ZAR1.3b0%1.39%
9.95%
Coronation Fund Managers Limited
77,502,023ZAR1.2b2031.02%0.56%
9.23%
STANLIB Asset Management (Pty) Limited
71,856,049ZAR1.2b0%7.35%
5.93%
Sesfikile Capital (Pty) Ltd
46,191,279ZAR744.6m0%9.13%
4.08%
The Vanguard Group, Inc.
31,784,000ZAR512.4m5.38%no data
3.24%
Eskom Pension and Provident Fund
25,212,208ZAR406.4m0%4.35%
3.06%
Sanlam Investment Management (Pty) Ltd.
23,847,261ZAR384.4m0%0.33%
2.78%
Catalyst Fund Managers (Pty) Limited
21,654,111ZAR349.1m0%6.81%
2.36%
Giancarlo Lanfranchi
18,384,481ZAR296.4m0%no data
2.05%
Ninety One UK Limited
15,955,993ZAR257.2m0%0.02%
1.76%
Norges Bank Investment Management
13,672,579ZAR220.4m0%no data
1.31%
Dimensional Fund Advisors LP
10,230,617ZAR164.9m5.47%no data
1.12%
BNY Mellon Asset Management
8,730,993ZAR140.7m2.2%no data
1.06%
BlackRock, Inc.
8,248,359ZAR133.0m0.9%no data
0.99%
André Gouws
7,714,219ZAR124.4m0%no data
0.83%
Truffle Asset Management (Pty) Ltd
6,442,556ZAR103.9m0%0.82%
0.82%
Marriott Asset Management (Pty) Ltd.
6,372,953ZAR102.7m0%3.57%
0.8%
Bridge Fund Managers
6,228,409ZAR100.4m0%3.84%
0.79%
Alexander Forbes Investments Limited
6,139,734ZAR99.0m0%0.68%
0.63%
PPM America, Inc.
4,872,986ZAR78.6m0%0.09%
0.61%
Absa Asset Management (Proprietary) Ltd.
4,761,194ZAR76.8m0%0.92%
0.61%
Taquanta Asset Managers (Pty) Ltd
4,756,101ZAR76.7m0%0.74%
0.57%
Camissa Asset Management Proprietary Limited
4,432,592ZAR71.5m0%0.8%
0.55%
Old Mutual Customised Solutions (Pty) Limited
4,310,384ZAR69.5m0%0.83%

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
  • Implied Market Cap: R12.552b
  • Shares outstanding: 778.69m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EQUJSE (The Johannesburg Securities Exchange)YesShare CapitalZAZARJun 2014

Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/10/04 00:00
End of Day Share Price2022/10/04 00:00
Earnings2022/02/28
Annual Earnings2022/02/28


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.