company background image
IPF

Investec Property FundJSE:IPF Stock Report

Market Cap

R8.6b

7D

1.2%

1Y

32.1%

Updated

17 Oct, 2021

Data

Company Financials +
IPF fundamental analysis
Snowflake Score
Valuation1/6
Future Growth0/6
Past Performance0/6
Financial Health1/6
Dividends3/6

IPF Overview

Investec Property Fund Limited (IPF) is a South African Real Estate Investment Trust (REIT) which listed on the Johannesburg Stock Exchange (JSE) in 2011.

Investec Property Fund Competitors

Growthpoint Properties

JSE:GRT

R47.2b

Redefine Properties

JSE:RDF

R24.3b

Fortress REIT

JSE:FFA

R18.6b

SA Real Estate

JSE:SAC

R5.5b

Price History & Performance

Summary of all time highs, changes and price drops for Investec Property Fund
Historical stock prices
Current Share PriceR10.65
52 Week HighR7.01
52 Week LowR11.69
Beta1.06
1 Month Change3.10%
3 Month Change12.11%
1 Year Change32.13%
3 Year Change-29.66%
5 Year Change-30.21%
Change since IPO-5.75%

Recent News & Updates

Shareholder Returns

IPFZA REITsZA Market
7D1.2%-0.4%1.6%
1Y32.1%39.5%21.3%

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

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

Price Volatility

Is IPF's price volatile compared to industry and market?
IPF volatility
IPF Beta1.06
Industry Beta0.89
Market Beta1

Stable Share Price: IPF is not significantly more volatile than the rest of ZA stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: IPF's weekly volatility (5%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/an/aAndrew Woolerhttps://www.investecproperty.com/en_za/investec-property-fund.html

Investec Property Fund Limited (IPF) is a South African Real Estate Investment Trust (REIT) which listed on the Johannesburg Stock Exchange (JSE) in 2011. The Fund’s investment portfolio comprises R27 billion of direct and indirect real estate investments in South Africa, the UK and Europe. In South Africa, the Fund directly owns a sizeable portfolio of 92 properties in the retail, industrial and office sectors valued at R15.7 billion and a 35% interest in Izandla valued at R0.3 billion.

Investec Property Fund Fundamentals Summary

How do Investec Property Fund's earnings and revenue compare to its market cap?
IPF fundamental statistics
Market CapR8.57b
Earnings (TTM)R107.68m
Revenue (TTM)R1.46b

79.6x

P/E Ratio

5.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
IPF income statement (TTM)
RevenueR1.46b
Cost of RevenueR537.85m
Gross ProfitR918.07m
ExpensesR810.39m
EarningsR107.68m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.13
Gross Margin63.06%
Net Profit Margin7.40%
Debt/Equity Ratio77.1%

How did IPF perform over the long term?

See historical performance and comparison

Dividends

8.7%

Current Dividend Yield

71%

Payout Ratio

Valuation

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

15.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IPF (ZAR10.65) is trading below our estimate of fair value (ZAR12.53)

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


Price To Earnings Ratio

PE vs Industry: IPF is poor value based on its PE Ratio (79.6x) compared to the ZA REITs industry average (9.9x).

PE vs Market: IPF is poor value based on its PE Ratio (79.6x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: IPF's PB Ratio (0.6x) is in line with the ZA REITs industry average.


Future Growth

How is Investec Property Fund forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

2.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if IPF'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: IPF's revenue (2.7% per year) is forecast to grow slower than the ZA market (6.1% per year).

High Growth Revenue: IPF's revenue (2.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IPF's Return on Equity is forecast to be low in 3 years time (10.4%).


Past Performance

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

-10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IPF has a large one-off loss of ZAR811.8M impacting its March 31 2021 financial results.

Growing Profit Margin: IPF's current net profit margins (7.4%) are lower than last year (86.9%).


Past Earnings Growth Analysis

Earnings Trend: IPF's earnings have declined by 10.7% per year over the past 5 years.

Accelerating Growth: IPF's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: IPF had negative earnings growth (-93%) over the past year, making it difficult to compare to the REITs industry average (132.9%).


Return on Equity

High ROE: IPF's Return on Equity (0.8%) is considered low.


Financial Health

How is Investec Property Fund's financial position?


Financial Position Analysis

Short Term Liabilities: IPF's short term assets (ZAR2.0B) do not cover its short term liabilities (ZAR3.4B).

Long Term Liabilities: IPF's short term assets (ZAR2.0B) do not cover its long term liabilities (ZAR8.4B).


Debt to Equity History and Analysis

Debt Level: IPF's debt to equity ratio (77.1%) is considered high.

Reducing Debt: IPF's debt to equity ratio has increased from 52.2% to 77.1% over the past 5 years.

Debt Coverage: IPF's debt is not well covered by operating cash flow (5.7%).

Interest Coverage: IPF's interest payments on its debt are well covered by EBIT (4.1x coverage).


Balance Sheet


Dividend

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

8.66%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: IPF's dividend (8.66%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: IPF's dividend (8.66%) is in the top 25% of dividend payers in the ZA market (8.09%)


Stability and Growth of Payments

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

Growing Dividend: IPF has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (70.6%), IPF's dividend 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?

2.8yrs

Average management tenure


CEO

Andrew Wooler (39 yo)

2.83yrs

Tenure

R2,800,000

Compensation

Mr. Andrew Robert Wooler has been Joint CEO of Investec Property Fund Limited since December 1, 2018 and its Executive Director since August 17, 2015. Mr. Wooler served as Financial Director of Investec Pr...


CEO Compensation Analysis

Compensation vs Market: Andrew's total compensation ($USD191.49K) is below average for companies of similar size in the ZA market ($USD731.45K).

Compensation vs Earnings: Andrew's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

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


Board Members

Experienced Board: IPF's board of directors are considered experienced (5.7 years average tenure).


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

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


Key Information


Location

  • Investec Property Fund Limited
  • 100 Grayston Drive
  • Sandown
  • Sandton
  • 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 Analysis2021/10/17 17:04
End of Day Share Price2021/10/15 00:00
Earnings2021/03/31
Annual Earnings2021/03/31


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.