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MLI

Industrials REITJSE:MLI Stock Report

Market Cap

R10.7b

7D

0.1%

1Y

34.0%

Updated

21 Oct, 2021

Data

Company Financials +
MLI fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance4/6
Financial Health3/6
Dividends3/6

MLI Overview

Stenprop is a UK REIT listed on the LSE and the JSE.

Price History & Performance

Summary of all time highs, changes and price drops for Industrials REIT
Historical stock prices
Current Share PriceR36.84
52 Week HighR25.00
52 Week LowR38.00
Beta0.30
1 Month Change1.26%
3 Month Change9.16%
1 Year Change34.01%
3 Year Change75.43%
5 Year Change90.00%
Change since IPO74.18%

Recent News & Updates

Shareholder Returns

MLIZA REITsZA Market
7D0.1%-0.5%-0.7%
1Y34.0%35.0%19.0%

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

Return vs Market: MLI exceeded the ZA Market which returned 19.9% over the past year.

Price Volatility

Is MLI's price volatile compared to industry and market?
MLI volatility
MLI Beta0.30
Industry Beta0.89
Market Beta1

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

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

About the Company

FoundedEmployeesCEOWebsite
201243Paul Arensonhttps://www.stenprop.com

Stenprop is a UK REIT listed on the LSE and the JSE. The objective of the Company is to deliver sustainable growing income to its investors. Stenprop's investment policy is to invest in a diversified portfolio of UK multi-let industrial (MLI) properties with the strategic goal of becoming the leading MLI business in the UK.

Industrials REIT Fundamentals Summary

How do Industrials REIT's earnings and revenue compare to its market cap?
MLI fundamental statistics
Market CapUK£532.22m
Earnings (TTM)UK£53.94m
Revenue (TTM)UK£45.67m

9.9x

P/E Ratio

11.7x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
MLI income statement (TTM)
RevenueUK£45.67m
Cost of RevenueUK£10.98m
Gross ProfitUK£34.69m
Expenses-UK£19.24m
EarningsUK£53.94m

Last Reported Earnings

Mar 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)0.19
Gross Margin75.97%
Net Profit Margin118.10%
Debt/Equity Ratio42.6%

How did MLI perform over the long term?

See historical performance and comparison

Dividends

3.7%

Current Dividend Yield

67%

Payout Ratio

Valuation

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

9.87x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: MLI (ZAR36.84) is trading above our estimate of fair value (ZAR32.12)

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


Price To Earnings Ratio

PE vs Industry: MLI is good value based on its PE Ratio (9.9x) compared to the ZA REITs industry average (10.2x).

PE vs Market: MLI is good value based on its PE Ratio (9.9x) compared to the ZA market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: MLI's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: MLI is overvalued based on its PB Ratio (1.2x) compared to the ZA REITs industry average (0.6x).


Future Growth

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

-1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: MLI's earnings are forecast to decline over the next 3 years (-1.7% per year).

Earnings vs Market: MLI's earnings are forecast to decline over the next 3 years (-1.7% per year).

High Growth Earnings: MLI's earnings are forecast to decline over the next 3 years.

Revenue vs Market: MLI's revenue is expected to decline over the next 3 years (-2.4% per year).

High Growth Revenue: MLI's revenue is forecast to decline over the next 3 years (-2.4% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has Industrials REIT performed over the past 5 years?

6.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: MLI has a large one-off gain of £37.3M impacting its March 31 2021 financial results.

Growing Profit Margin: MLI's current net profit margins are higher than last year (38%).


Past Earnings Growth Analysis

Earnings Trend: MLI's earnings have grown by 6.1% per year over the past 5 years.

Accelerating Growth: MLI's earnings growth over the past year (203.7%) exceeds its 5-year average (6.1% per year).

Earnings vs Industry: MLI earnings growth over the past year (203.7%) exceeded the REITs industry 132.9%.


Return on Equity

High ROE: MLI's Return on Equity (12.7%) is considered low.


Financial Health

How is Industrials REIT's financial position?


Financial Position Analysis

Short Term Liabilities: MLI's short term assets (£103.7M) exceed its short term liabilities (£38.2M).

Long Term Liabilities: MLI's short term assets (£103.7M) do not cover its long term liabilities (£177.1M).


Debt to Equity History and Analysis

Debt Level: MLI's debt to equity ratio (42.6%) is considered high.

Reducing Debt: MLI's debt to equity ratio has reduced from 81.6% to 42.6% over the past 5 years.

Debt Coverage: MLI's debt is not well covered by operating cash flow (9.4%).

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


Balance Sheet


Dividend

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

3.69%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: MLI's dividend (3.69%) is higher than the bottom 25% of dividend payers in the ZA market (3.08%).

High Dividend: MLI's dividend (3.69%) is low compared to the top 25% of dividend payers in the ZA market (8.02%).


Stability and Growth of Payments

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

Growing Dividend: MLI's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (66.6%), MLI's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: MLI's dividends in 3 years are forecast to be covered by earnings (88.9% payout ratio).


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Paul Arenson (58 yo)

7yrs

Tenure

UK£634,000

Compensation

Mr. Paul Maurice Arenson has been the Chief Executive Officer at Stenprop Limited since October 2, 2014. Mr. Arenson served as Managing Director at Stenham Property Ltd. from inception until October 2014 a...


CEO Compensation Analysis

Compensation vs Market: Paul's total compensation ($USD875.36K) is about average for companies of similar size in the ZA market ($USD906.57K).

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


Leadership Team

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


Board Members

Experienced Board: MLI's board of directors are considered experienced (3.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: MLI insiders have bought more shares than they have sold 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 2.8%.


Top Shareholders

Company Information

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


Key Information

  • Name: Industrials REIT Limited
  • Ticker: MLI
  • Exchange: JSE
  • Founded: 2012
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: R10.713b
  • Shares outstanding: 290.79m
  • Website: https://www.stenprop.com

Number of Employees


Location

  • Industrials REIT Limited
  • Kingsway House
  • Havilland Street
  • Saint Peter Port
  • GY1 2QE
  • Guernsey

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
Earnings2021/03/31
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.