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SAC

SA Real EstateJSE:SAC Stock Report

Market Cap

R5.3b

7D

-2.8%

1Y

81.2%

Updated

18 Oct, 2021

Data

Company Financials +
SAC fundamental analysis
Snowflake Score
Valuation2/6
Future Growth0/6
Past Performance0/6
Financial Health0/6
Dividends3/6

SAC Overview

SA Corporate Real Estate Limited is a JSE-listed Real Estate Investment Trust (“REIT”) which owns a diversified portfolio of quality industrial, retail, commercial and residential buildings located primarily in the major metropolitan areas of South Africa with a secondary node in Zambia.

SA Real Estate Competitors

Growthpoint Properties

JSE:GRT

R47.4b

Redefine Properties

JSE:RDF

R24.3b

Fortress REIT

JSE:FFA

R18.7b

Investec Property Fund

JSE:IPF

R8.3b

Price History & Performance

Summary of all time highs, changes and price drops for SA Real Estate
Historical stock prices
Current Share PriceR2.12
52 Week HighR1.08
52 Week LowR2.34
Beta1.39
1 Month Change-4.07%
3 Month Change6.00%
1 Year Change81.20%
3 Year Change-46.06%
5 Year Change-61.66%
Change since IPO6.00%

Recent News & Updates

Shareholder Returns

SACZA REITsZA Market
7D-2.8%-0.4%1.6%
1Y81.2%39.5%21.3%

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

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

Price Volatility

Is SAC's price volatile compared to industry and market?
SAC volatility
SAC Beta1.39
Industry Beta0.89
Market Beta1

Stable Share Price: SAC is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: SAC's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/an/aTerence Mackeyhttps://www.sacorporatefund.co.za

SA Corporate Real Estate Limited is a JSE-listed Real Estate Investment Trust (“REIT”) which owns a diversified portfolio of quality industrial, retail, commercial and residential buildings located primarily in the major metropolitan areas of South Africa with a secondary node in Zambia. The property, excluding investment in listed shares and loans advanced, consists of 192 properties, with 1 629 105 m2 of lettable area, valued at R16.6 billion, and a 50% joint venture in three Zambian properties valued at R1.1 billion.

SA Real Estate Fundamentals Summary

How do SA Real Estate's earnings and revenue compare to its market cap?
SAC fundamental statistics
Market CapR5.29b
Earnings (TTM)-R105.97m
Revenue (TTM)R2.07b

2.6x

P/S Ratio

-49.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
SAC income statement (TTM)
RevenueR2.07b
Cost of RevenueR858.23m
Gross ProfitR1.21b
ExpensesR1.32b
Earnings-R105.97m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.042
Gross Margin58.51%
Net Profit Margin-5.12%
Debt/Equity Ratio71.0%

How did SAC perform over the long term?

See historical performance and comparison

Dividends

13.3%

Current Dividend Yield

115%

Payout Ratio

Does SAC pay a reliable dividends?

See SAC dividend history and benchmarks
When do you need to buy SAC by to receive an upcoming dividend?
SA Real Estate dividend dates
Ex Dividend DateOct 20 2021
Dividend Pay DateOct 25 2021
Days until Ex dividend1 day
Days until Dividend pay date6 days

Does SAC pay a reliable dividends?

See SAC dividend history and benchmarks

Valuation

Is SA Real Estate undervalued compared to its fair value and its price relative to the market?

29.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: SAC (ZAR2.12) is trading below our estimate of fair value (ZAR2.99)

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


Price To Earnings Ratio

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

PE vs Market: SAC 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 SAC's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: SAC's PB Ratio (0.5x) is in line with the ZA REITs industry average.


Future Growth

How is SA Real Estate forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

0.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if SAC'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: SAC's revenue (0.8% per year) is forecast to grow slower than the ZA market (6.1% per year).

High Growth Revenue: SAC's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has SA Real Estate performed over the past 5 years?

-60.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SAC is currently unprofitable.

Growing Profit Margin: SAC is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: SAC is unprofitable, and losses have increased over the past 5 years at a rate of 60.4% per year.

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

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


Return on Equity

High ROE: SAC has a negative Return on Equity (-1.07%), as it is currently unprofitable.


Financial Health

How is SA Real Estate's financial position?


Financial Position Analysis

Short Term Liabilities: SAC's short term assets (ZAR1.3B) do not cover its short term liabilities (ZAR2.7B).

Long Term Liabilities: SAC's short term assets (ZAR1.3B) do not cover its long term liabilities (ZAR4.9B).


Debt to Equity History and Analysis

Debt Level: SAC's debt to equity ratio (71%) is considered high.

Reducing Debt: SAC's debt to equity ratio has increased from 40.4% to 71% over the past 5 years.

Debt Coverage: SAC's debt is not well covered by operating cash flow (10%).

Interest Coverage: SAC's interest payments on its debt are not well covered by EBIT (1.2x coverage).


Balance Sheet


Dividend

What is SA Real Estate current dividend yield, its reliability and sustainability?

13.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: SAC's dividend (13.3%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: SAC's dividend (13.3%) is in the top 25% of dividend payers in the ZA market (8.09%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (114.9%), SAC's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SAC's dividends in 3 years are forecast to be covered by earnings (79.8% payout ratio).


Next Steps

Management

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

1.3yrs

Average management tenure


CEO

Terence Mackey (59 yo)

6.75yrs

Tenure

R3,197,000

Compensation

Mr. Terence Rory Mackey, BSc Eng, Postgrad Dip Eng, CPFA, Pr CPM, is Chief Executive Officer at SA Corporate Real Estate Limited since January 19, 2015. He was Managing Director at SA Corporate Real Estate...


CEO Compensation Analysis

Compensation vs Market: Terence's total compensation ($USD217.68K) is below average for companies of similar size in the ZA market ($USD731.45K).

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


Leadership Team

Experienced Management: SAC's management team is not considered experienced ( 1.3 years average tenure), which suggests a new team.


Board Members

Experienced Board: SAC's board of directors are not considered experienced ( 2.3 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.


Ownership Breakdown

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


Top Shareholders

Company Information

SA Corporate Real Estate Limited's employee growth, exchange listings and data sources


Key Information

  • Name: SA Corporate Real Estate Limited
  • Ticker: SAC
  • Exchange: JSE
  • Founded: NaN
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: R5.289b
  • Shares outstanding: 2.49b
  • Website: https://www.sacorporatefund.co.za

Location

  • SA Corporate Real Estate Limited
  • The Forum
  • South Wing, First Floor
  • Century City
  • Western Cape
  • 7441
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/18 21:39
End of Day Share Price2021/10/18 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.