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HET

Heriot REITJSE:HET Stock Report

Market Cap

R2.9b

7D

0%

1Y

0%

Updated

21 Oct, 2021

Data

Company Financials
HET fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance2/6
Financial Health1/6
Dividends3/6

HET Overview

Heriot Properties (Pty) Ltd. operates as a property holding company.

Heriot REIT Competitors

SA Real Estate

JSE:SAC

R5.3b

Attacq

JSE:ATT

R4.8b

Emira Property Fund

JSE:EMI

R4.8b

Arrowhead Properties

JSE:AHA

R4.6b

Price History & Performance

Summary of all time highs, changes and price drops for Heriot REIT
Historical stock prices
Current Share PriceR11.50
52 Week HighR10.10
52 Week LowR11.50
Beta-0.0067
1 Month Change0%
3 Month Change0%
1 Year Change0%
3 Year Change4.55%
5 Year Changen/a
Change since IPO15.00%

Recent News & Updates

Jan 14
Should You Be Concerned About Heriot REIT Limited's (JSE:HET) ROE?

Should You Be Concerned About Heriot REIT Limited's (JSE:HET) ROE?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like...

Shareholder Returns

HETZA REITsZA Market
7D0%-0.5%-0.7%
1Y0%35.0%19.0%

Return vs Industry: HET underperformed the ZA REITs industry which returned 36.1% over the past year.

Return vs Market: HET underperformed the ZA Market which returned 19.9% over the past year.

Price Volatility

Is HET's price volatile compared to industry and market?
HET volatility
HET Beta-0.0067
Industry Beta0.89
Market Beta1

Stable Share Price: Insufficient data to determine HET's volatility over the past 3 months.

Volatility Over Time: Insufficient data to determine HET's volatility change over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/an/aRichard Herringhttps://www.heriotreit.com

Heriot Properties (Pty) Ltd. operates as a property holding company. The company offers investment analysis, project management, property development and management, and retail services. Its projects include industrial, retail, office, and other projects.

Heriot REIT Fundamentals Summary

How do Heriot REIT's earnings and revenue compare to its market cap?
HET fundamental statistics
Market CapR2.94b
Earnings (TTM)R313.03m
Revenue (TTM)R501.87m

9.4x

P/E Ratio

5.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HET income statement (TTM)
RevenueR501.87m
Cost of RevenueR154.62m
Gross ProfitR347.25m
ExpensesR34.22m
EarningsR313.03m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.23
Gross Margin69.19%
Net Profit Margin62.37%
Debt/Equity Ratio61.9%

How did HET perform over the long term?

See historical performance and comparison

Dividends

8.2%

Current Dividend Yield

88%

Payout Ratio

Valuation

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

23.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HET (ZAR11.5) is trading below our estimate of fair value (ZAR15.08)

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


Price To Earnings Ratio

PE vs Industry: HET is good value based on its PE Ratio (9.4x) compared to the ZA REITs industry average (10.2x).

PE vs Market: HET is good value based on its PE Ratio (9.4x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HET is overvalued based on its PB Ratio (1x) compared to the ZA REITs industry average (0.6x).


Future Growth

How is Heriot REIT forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.7%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Heriot REIT has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Past Performance

How has Heriot REIT performed over the past 5 years?

278.5%

Last years earnings growth


Earnings and Revenue History

Quality Earnings: HET has a large one-off gain of ZAR100.0M impacting its June 30 2021 financial results.

Growing Profit Margin: HET's current net profit margins (62.4%) are higher than last year (16.3%).


Past Earnings Growth Analysis

Earnings Trend: Insufficient data to determine if HET's year-on-year earnings growth rate was positive over the past 5 years.

Accelerating Growth: Insufficient data to compare HET's past year earnings growth to its 5-year average.

Earnings vs Industry: HET earnings growth over the past year (278.5%) exceeded the REITs industry 132.9%.


Return on Equity

High ROE: HET's Return on Equity (10.9%) is considered low.


Financial Health

How is Heriot REIT's financial position?


Financial Position Analysis

Short Term Liabilities: HET's short term assets (ZAR202.1M) do not cover its short term liabilities (ZAR522.6M).

Long Term Liabilities: HET's short term assets (ZAR202.1M) do not cover its long term liabilities (ZAR1.5B).


Debt to Equity History and Analysis

Debt Level: HET's debt to equity ratio (61.9%) is considered high.

Reducing Debt: Insufficient data to determine if HET's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: HET's debt is not well covered by operating cash flow (13.8%).

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


Balance Sheet


Dividend

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

8.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: HET's dividend (8.15%) is higher than the bottom 25% of dividend payers in the ZA market (3.08%).

High Dividend: HET's dividend (8.15%) is in the top 25% of dividend payers in the ZA market (8.02%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, HET has been paying a dividend for less than 10 years.

Growing Dividend: HET's dividend payments have increased, but the company has only paid a dividend for 4 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (88.1%), HET's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

2.7yrs

Average board tenure


CEO

Richard Herring (49 yo)

4.17yrs

Tenure

R4,842,000

Compensation

Mr. Richard Lawrence Herring serves as Chief Executive Officer at Heriot REIT Limited since August 18, 2018 and serves as its Executive Director. Mr. Herring is a qualified Chartered Accountant and served...


CEO Compensation Analysis

Compensation vs Market: Richard's total compensation ($USD332.14K) is below average for companies of similar size in the ZA market ($USD499.93K).

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


Board Members

Experienced Board: HET's board of directors are not considered experienced ( 2.7 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

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


Key Information

  • Name: Heriot REIT Limited
  • Ticker: HET
  • Exchange: JSE
  • Founded: NaN
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: R2.937b
  • Shares outstanding: 255.40m
  • Website: https://www.heriotreit.com

Location

  • Heriot REIT Limited
  • 3 Melrose Boulevard
  • Suite 1
  • 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 Analysis2021/10/21 21:04
End of Day Share Price2021/10/21 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.