company background image
GRT

Growthpoint PropertiesJSE:GRT Stock Report

Market Cap

R45.2b

7D

-4.8%

1Y

10.4%

Updated

22 Oct, 2021

Data

Company Financials +
GRT fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance0/6
Financial Health1/6
Dividends4/6

GRT Overview

Growthpoint is the largest South African primary JSE-listed REIT with a quality portfolio of 440 directly owned properties in South Africa (RSA) valued at R73.4bn, including four hospitals and one medical chambers valued at R2.6bn owned by Growthpoint Healthcare Property Holdings (RF) Limited (GHPH).

Growthpoint Properties Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Growthpoint Properties
Historical stock prices
Current Share PriceR13.22
52 Week HighR10.40
52 Week LowR16.10
Beta0.80
1 Month Change-9.51%
3 Month Change-9.45%
1 Year Change10.35%
3 Year Change-42.37%
5 Year Change-46.78%
Change since IPO-54.02%

Recent News & Updates

Shareholder Returns

GRTZA REITsZA Market
7D-4.8%-0.5%-0.7%
1Y10.4%35.0%19.0%

Return vs Industry: GRT underperformed the ZA REITs industry which returned 35% over the past year.

Return vs Market: GRT underperformed the ZA Market which returned 19% over the past year.

Price Volatility

Is GRT's price volatile compared to industry and market?
GRT volatility
GRT Beta0.80
Industry Beta0.89
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
1987n/aLeon Sassehttps://www.growthpoint.co.za

Growthpoint is the largest South African primary JSE-listed REIT with a quality portfolio of 440 directly owned properties in South Africa (RSA) valued at R73.4bn, including four hospitals and one medical chambers valued at R2.6bn owned by Growthpoint Healthcare Property Holdings (RF) Limited (GHPH). Growthpoint has a 61.8% shareholding in GHPH. We have a 62.2% interest in ASX-listed Growthpoint Properties Australia Limited (GOZ), which owns 58 properties in Australia valued at R51.8bn and a 52.1% interest in LSE-listed Capital & Regional Plc (C&R), which owns seven properties in the United Kingdom valued at R14.8bn.

Growthpoint Properties Fundamentals Summary

How do Growthpoint Properties's earnings and revenue compare to its market cap?
GRT fundamental statistics
Market CapR45.16b
Earnings (TTM)-R497.00m
Revenue (TTM)R13.13b

3.4x

P/S Ratio

-90.5x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
GRT income statement (TTM)
RevenueR13.13b
Cost of RevenueR3.42b
Gross ProfitR9.71b
ExpensesR10.21b
Earnings-R497.00m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.15
Gross Margin73.98%
Net Profit Margin-3.79%
Debt/Equity Ratio79.3%

How did GRT perform over the long term?

See historical performance and comparison

Dividends

9.0%

Current Dividend Yield

88%

Payout Ratio

Valuation

Is Growthpoint Properties undervalued compared to its fair value and its price relative to the market?

19.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GRT (ZAR13.22) is trading below our estimate of fair value (ZAR16.44)

Significantly Below Fair Value: GRT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: GRT is unprofitable, so we can't compare its PE Ratio to the ZA REITs industry average.

PE vs Market: GRT is unprofitable, so we can't compare its PE Ratio to the ZA market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GRT's PB Ratio (0.7x) is in line with the ZA REITs industry average.


Future Growth

How is Growthpoint Properties forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

81.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: GRT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (8.8%).

Earnings vs Market: GRT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: GRT's is expected to become profitable in the next 3 years.

Revenue vs Market: GRT's revenue (4.2% per year) is forecast to grow slower than the ZA market (6.4% per year).

High Growth Revenue: GRT's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: GRT's Return on Equity is forecast to be low in 3 years time (11.3%).


Past Performance

How has Growthpoint Properties performed over the past 5 years?

-46.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRT is currently unprofitable.

Growing Profit Margin: GRT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: GRT is unprofitable, and losses have increased over the past 5 years at a rate of 46.7% per year.

Accelerating Growth: Unable to compare GRT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: GRT is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (132.9%).


Return on Equity

High ROE: GRT has a negative Return on Equity (0.58%), as it is currently unprofitable.


Financial Health

How is Growthpoint Properties's financial position?


Financial Position Analysis

Short Term Liabilities: GRT's short term assets (ZAR6.2B) do not cover its short term liabilities (ZAR8.1B).

Long Term Liabilities: GRT's short term assets (ZAR6.2B) do not cover its long term liabilities (ZAR65.8B).


Debt to Equity History and Analysis

Debt Level: GRT's debt to equity ratio (79.3%) is considered high.

Reducing Debt: GRT's debt to equity ratio has increased from 53.5% to 79.3% over the past 5 years.

Debt Coverage: GRT's debt is not well covered by operating cash flow (7.6%).

Interest Coverage: GRT's interest payments on its debt are well covered by EBIT (3x coverage).


Balance Sheet


Dividend

What is Growthpoint Properties's current dividend yield, its reliability and sustainability?

8.96%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GRT's dividend (8.96%) is higher than the bottom 25% of dividend payers in the ZA market (3.14%).

High Dividend: GRT's dividend (8.96%) is in the top 25% of dividend payers in the ZA market (7.7%)


Stability and Growth of Payments

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

Growing Dividend: GRT's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87.9%), GRT's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GRT's dividends in 3 years are forecast to be covered by earnings (75.1% payout ratio).


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Leon Sasse (56 yo)

3.58yrs

Tenure

R24,250,612

Compensation

Mr. Leon Norbert Sasse, BCom (Hons) (Acc), CA (SA) has been the Group the Chief Executive Officer of Growthpoint Properties Ltd. since March 1, 2018. Mr. Sasse has been an Executive Director at Acucap Prop...


CEO Compensation Analysis

Compensation vs Market: Leon's total compensation ($USD1.64M) is about average for companies of similar size in the ZA market ($USD1.29M).

Compensation vs Earnings: Leon's compensation has increased whilst the company is unprofitable.


Leadership Team

Experienced Management: GRT's management team is considered experienced (3.7 years average tenure).


Board Members

Experienced Board: GRT's board of directors are considered experienced (6.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: GRT insiders have only sold shares 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 13.8%.


Top Shareholders

Company Information

Growthpoint Properties Limited's employee growth, exchange listings and data sources


Key Information

  • Name: Growthpoint Properties Limited
  • Ticker: GRT
  • Exchange: JSE
  • Founded: 1987
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: R45.156b
  • Shares outstanding: 3.40b
  • Website: https://www.growthpoint.co.za

Number of Employees


Location

  • Growthpoint Properties Limited
  • The Place
  • 1 Sandton Drive
  • Johannesburg
  • 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 Analysis2021/10/22 17:03
End of Day Share Price2021/10/22 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.