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FFA

Fortress REITJSE:FFA Stock Report

Market Cap

R18.7b

7D

-0.8%

1Y

8.8%

Updated

19 Oct, 2021

Data

Company Financials +
FFA fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance2/6
Financial Health1/6
Dividends4/6

FFA Overview

Fortress was listed on 22 October 2009 on the main board of the Johannesburg Stock Exchange Limited as a property loan stock company.

Fortress REIT Competitors

Growthpoint Properties

JSE:GRT

R47.6b

Redefine Properties

JSE:RDF

R24.4b

Investec Property Fund

JSE:IPF

R8.8b

SA Real Estate

JSE:SAC

R5.5b

Price History & Performance

Summary of all time highs, changes and price drops for Fortress REIT
Historical stock prices
Current Share PriceR13.59
52 Week HighR12.00
52 Week LowR16.27
Beta0.76
1 Month Change-7.99%
3 Month Change-1.66%
1 Year Change8.81%
3 Year Change-19.54%
5 Year Change-17.03%
Change since IPO41.56%

Recent News & Updates

Shareholder Returns

FFAZA REITsZA Market
7D-0.8%0.5%1.0%
1Y8.8%41.5%20.8%

Return vs Industry: FFA underperformed the ZA REITs industry which returned 38.4% over the past year.

Return vs Market: FFA underperformed the ZA Market which returned 20.7% over the past year.

Price Volatility

Is FFA's price volatile compared to industry and market?
FFA volatility
FFA Beta0.76
Industry Beta0.89
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
n/an/aSteve Brownhttps://www.fortressfund.co.za

Fortress was listed on 22 October 2009 on the main board of the Johannesburg Stock Exchange Limited as a property loan stock company. It listed with an initial market capitalisation of R1.8 billion, making it the largest initial listing in the listed property sector. Fortress converted to a Real Estate Investment Trust REIT on 1 July 2013.

Fortress REIT Fundamentals Summary

How do Fortress REIT's earnings and revenue compare to its market cap?
FFA fundamental statistics
Market CapR18.73b
Earnings (TTM)R3.35b
Revenue (TTM)R3.94b

9.0x

P/E Ratio

7.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FFA income statement (TTM)
RevenueR3.94b
Cost of RevenueR1.24b
Gross ProfitR2.70b
Expenses-R654.10m
EarningsR3.35b

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.51
Gross Margin68.51%
Net Profit Margin85.11%
Debt/Equity Ratio61.7%

How did FFA perform over the long term?

See historical performance and comparison

Dividends

5.5%

Current Dividend Yield

16%

Payout Ratio

Valuation

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

9.01x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: FFA (ZAR13.59) is trading above our estimate of fair value (ZAR13.27)

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


Price To Earnings Ratio

PE vs Industry: FFA is good value based on its PE Ratio (9x) compared to the ZA REITs industry average (9.8x).

PE vs Market: FFA is good value based on its PE Ratio (9x) compared to the ZA market (11.5x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FFA is overvalued based on its PB Ratio (1.1x) compared to the ZA REITs industry average (0.6x).


Future Growth

How is Fortress REIT forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-3.0%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Fortress REIT performed over the past 5 years?

-24.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FFA has a large one-off gain of ZAR1.6B impacting its June 30 2021 financial results.

Growing Profit Margin: FFA became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: FFA has become profitable over the past 5 years, growing earnings by -24.3% per year.

Accelerating Growth: FFA has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FFA has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (132.9%).


Return on Equity

High ROE: FFA's Return on Equity (12.4%) is considered low.


Financial Health

How is Fortress REIT's financial position?


Financial Position Analysis

Short Term Liabilities: FFA's short term assets (ZAR2.0B) do not cover its short term liabilities (ZAR3.0B).

Long Term Liabilities: FFA's short term assets (ZAR2.0B) do not cover its long term liabilities (ZAR15.3B).


Debt to Equity History and Analysis

Debt Level: FFA's debt to equity ratio (61.7%) is considered high.

Reducing Debt: FFA's debt to equity ratio has increased from 30.9% to 61.7% over the past 5 years.

Debt Coverage: FFA's debt is not well covered by operating cash flow (8.7%).

Interest Coverage: FFA's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Dividend

What is Fortress REIT current dividend yield, its reliability and sustainability?

5.50%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: FFA's dividend (5.5%) is higher than the bottom 25% of dividend payers in the ZA market (3.05%).

High Dividend: FFA's dividend (5.5%) is low compared to the top 25% of dividend payers in the ZA market (8.06%).


Stability and Growth of Payments

Stable Dividend: FFA's dividend payments have been volatile in the past 10 years.

Growing Dividend: FFA's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its low payout ratio (16.1%), FFA's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FFA's dividends in 3 years are forecast to be covered by earnings (99.8% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Steve Brown (41 yo)

2.25yrs

Tenure

R8,119,000

Compensation

Mr. Steven Brown, also known as Steve, CA (SA), CFA, B.Bus.Sci has been Executive Director of Fortress REIT Limited since July 02, 2018. He has been Chief Executive Officer and Managing Director at Fortres...


CEO Compensation Analysis

Compensation vs Market: Steve's total compensation ($USD558.84K) is below average for companies of similar size in the ZA market ($USD918.78K).

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


Leadership Team

Experienced Management: FFA's management team is considered experienced (2.8 years average tenure).


Board Members

Experienced Board: FFA'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

Ownership Breakdown

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


Top Shareholders

Company Information

Fortress REIT Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Fortress REIT Limited
  • Ticker: FFA
  • Exchange: JSE
  • Founded: NaN
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: R18.730b
  • Shares outstanding: 2.22b
  • Website: https://www.fortressfund.co.za

Number of Employees


Location

  • Fortress REIT Limited
  • Block C, Cullinan Place
  • Cullinan Close
  • Morningside
  • Gauteng
  • 2196
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/19 21:45
End of Day Share Price2021/10/19 00:00
Earnings2021/06/30
Annual Earnings2021/06/30


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.