How does SEA's PE Ratio compare to its peers?

SEA is good value based on its Price-To-Earnings Ratio (7.2x) compared to the peer average (12.3x).

How does SEA's PE Ratio compare vs other companies in the Global REITs Industry?

SEA is good value based on its Price-To-Earnings Ratio (7.2x) compared to the Global REITs industry average (16.3x).

What is SEA's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

Insufficient data to calculate SEA's Price-To-Earnings Fair Ratio for valuation analysis.

What is the Fair Price of SEA when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

SEA (ZAR9.75) is trading below our estimate of [[fair value]] (ZAR10.26)

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

Insufficient data to show price forecast.

Spear Reit JSE:SEA Stock Report

Last Price

R9.75

Market Cap

R2.6b

7D

1.6%

1Y

19.0%

Updated

30 Dec, 2024

Data

Company Financials +

Spear Reit Limited

JSE:SEA Stock Report

Market Cap: R2.6b

SEA Stock Overview

No business description. More details

SEA fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	0/6
Past Performance	3/6
Financial Health	2/6
Dividends	3/6

Rewards

Trading at 5% below our estimate of its fair value

Earnings have grown 16.9% per year over the past 5 years

Risk Analysis

Shareholders have been diluted in the past year

Large one-off items impacting financial results

Dividend of 8.21% is not well covered by free cash flows

My Notes

Capture your thoughts, links and company narrative

Spear Reit Limited Competitors

Octodec Investments

JSE:OCT

R3.0b

Emira Property Fund

JSE:EMI

R5.2b

Oasis Crescent Property Fund

JSE:OAS

R1.3b

Fairvest

JSE:FTA

R8.0b

Price History & Performance

Summary of share price highs, lows and changes for Spear Reit
Historical stock prices
Current Share Price	R9.75
52 Week High	R10.34
52 Week Low	R7.50
Beta	0.37
1 Month Change	4.84%
3 Month Change	1.04%
1 Year Change	19.05%
3 Year Change	10.92%
5 Year Change	1.56%
Change since IPO	3.72%

Recent News & Updates

Recent updates

Read This Before Selling Spear Reit Limited (JSE:SEA) Shares

Mar 15

Spear Reit (JSE:SEA) Shareholders Received A Total Return Of Negative 24% In The Last Three Years

Jan 21

Michael Flax Is The Non-Executive Deputy Chairman of Spear Reit Limited (JSE:SEA) And They Just Picked Up 6.5% More Shares

Nov 27

Shareholder Returns

	SEA	ZA REITs	ZA Market
7D	1.6%	-0.1%	-0.3%
1Y	19.0%	17.3%	7.8%

Return vs Industry: SEA exceeded the ZA REITs industry which returned 17.3% over the past year.

Return vs Market: SEA exceeded the ZA Market which returned 7.8% over the past year.

Price Volatility

Is SEA's price volatile compared to industry and market?
SEA volatility
SEA Average Weekly Movement	4.7%
REITs Industry Average Movement	3.4%
Market Average Movement	4.2%
10% most volatile stocks in ZA Market	9.2%
10% least volatile stocks in ZA Market	2.5%

Stable Share Price: SEA has not had significant price volatility in the past 3 months compared to the ZA market.

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

About the Company

Founded	Employees	CEO	Website
n/a	30	Quintin Rossi	www.spearprop.co.za

Spear Reit Limited Fundamentals Summary

How do Spear Reit's earnings and revenue compare to its market cap?
SEA fundamental statistics
Market cap	R2.61b
Earnings (TTM)	R363.86m
Revenue (TTM)	R631.12m

7.2x

P/E Ratio

4.1x

P/S Ratio

Is SEA overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report (TTM)
SEA income statement (TTM)
Revenue	R631.12m
Cost of Revenue	R228.85m
Gross Profit	R402.27m
Other Expenses	R38.41m
Earnings	R363.86m

Last Reported Earnings

Aug 31, 2024

Next Earnings Date

n/a

Earnings per share (EPS)	1.36
Gross Margin	63.74%
Net Profit Margin	57.65%
Debt/Equity Ratio	32.7%

How did SEA perform over the long term?

See historical performance and comparison

Dividends

8.2%

Current Dividend Yield

66%

Payout Ratio

Company Analysis and Financial Data Status

Data	Last Updated (UTC time)
Company Analysis	2024/12/30 00:54
End of Day Share Price	2024/12/30 00:00
Earnings	2024/08/31
Annual Earnings	2024/02/29

Data Sources

The data used in our company analysis is from S&P Global Market Intelligence LLC. The following data is used in our analysis model to generate this report. Data is normalised which can introduce a delay from the source being available.

Package	Data	Timeframe	Example US Source ^*
Company Financials	10 years	Income statement Cash flow statement Balance sheet	SEC Form 10-K SEC Form 10-Q
Analyst Consensus Estimates	+3 years	Forecast financials Analyst price targets	Analyst Research Reports Blue Matrix
Market Prices	30 years	Stock prices Dividends, Splits and Actions	ICE Market Data SEC Form S-1
Ownership	10 years	Top shareholders Insider trading	SEC Form 4 SEC Form 13D
Management	10 years	Leadership team Board of directors	SEC Form 10-K SEC Form DEF 14A
Key Developments	10 years	Company announcements	SEC Form 8-K

^* example for US securities, for non-US equivalent regulatory forms and sources are used.

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.

Analysis Model and Snowflake

Details of the analysis model used to generate this report is available on our Github page, we also have guides on how to use our reports and tutorials on Youtube.

Learn about the world class team who designed and built the Simply Wall St analysis model.

Industry and Sector Metrics

Our industry and section metrics are calculated every 6 hours by Simply Wall St, details of our process are available on .

Analyst Sources

Spear Reit Limited is covered by 2 analysts. 1 of those analysts submitted the estimates of revenue or earnings used as inputs to our report. Analysts submissions are updated throughout the day.

Analyst	Institution
Francois Du Toit	Anchor Stockbrokers Proprietary Limited
Lwando Ngubentombi	Anchor Stockbrokers Proprietary Limited

SEA Stock Overview

Rewards

Risk Analysis

Spear Reit Limited Competitors

JSE:OCT

R3.0b

JSE:EMI

R5.2b

JSE:OAS

R1.3b

JSE:FTA

R8.0b

Price History & Performance

Recent News & Updates

CFO & Executive Director recently bought R150k worth of stock

First half dividend increased to R0.40

New major risk - Dividend sustainability

Spear Reit Limited Announces Dividend Declaration for the Six Months Ended 31 August 2024, Payable on 18 November 2024

Spear Reit Limited to Report First Half, 2025 Results on Oct 24, 2024

36one Asset Management (Pty) Ltd. acquired an additional minority stake in Spear Reit Limited (JSE:SEA).

Recent updates

CFO & Executive Director recently bought R150k worth of stock

First half dividend increased to R0.40

New major risk - Dividend sustainability

Spear Reit Limited Announces Dividend Declaration for the Six Months Ended 31 August 2024, Payable on 18 November 2024

Spear Reit Limited to Report First Half, 2025 Results on Oct 24, 2024

36one Asset Management (Pty) Ltd. acquired an additional minority stake in Spear Reit Limited (JSE:SEA).

Upcoming dividend of R0.41 per share

New minor risk - Shareholder dilution

Spear Reit Limited, Annual General Meeting, Jul 31, 2024

Capitec Bank Limited acquired The Liberty Life Building, Century City Boulevard from Spear Reit Limited (JSE:SEA).

Capitec Bank Limited acquired The Liberty Life Building, Century City Boulevard from Spear Reit Limited (JSE:SEA).

CEO, MD & Director recently bought R138k worth of stock

Final dividend increased to R0.41

Full year 2024 earnings released: EPS: R1.49 (vs R0.79 in FY 2023)

Now 21% undervalued after recent price drop

Now 22% undervalued after recent price drop

New minor risk - Financial data availability

Now 20% undervalued after recent price drop

CFO & Executive Director recently bought R209k worth of stock

Chief Operating Officer recently sold R420k worth of stock

New minor risk - Insider selling

CEO, MD & Director recently bought R89k worth of stock

CFO & Executive Director recently bought R71k worth of stock

Now 20% undervalued

Upcoming dividend of R0.38 per share at 9.8% yield

CEO, MD & Director recently sold R532k worth of stock

New major risk - Financial position

Spear Reit Limited Declares Interim Dividend for the Six Months Ended 31 August 2023. Payable on 20 November 2023

Spear Reit Limited to Report First Half, 2024 Results on Oct 24, 2023

Chief Operating Officer recently sold R261k worth of stock

Now 21% undervalued

CEO, MD & Director recently bought R88k worth of stock

Now 23% undervalued after recent price drop

CEO, MD & Director recently bought R134k worth of stock

CEO, MD & Director recently bought R4.6m worth of stock

Spear Reit Limited, Annual General Meeting, Jun 30, 2023

Upcoming dividend of R0.39 per share at 11% yield

CEO, MD & Director recently bought R72k worth of stock

Spear Reit Limited Announces Dividend Declaration for the Year Ended 28 February 2023, Payable on 12 June 2023

CEO, MD & Director recently bought R116k worth of stock

Capitec Bank Limited entered into a sale of rental enterprise agreement to acquire The Liberty Life Building, Century City Boulevard from Spear Reit Limited (JSE:SEA) for ZAR 400 million.

Spear Reit Limited Appoints Bongani Raziya as an Independent Non-Executive Director, and as Member of the Social and Ethics, Audit and Risk, Remuneration and Investment Committees

CFO & Executive Director recently sold R3.4m worth of stock

Spear Reit Limited Announces Resignation of Niclas Kjellström-Matseke as Independent Non-Executive Director

Non-Executive Deputy Chairman recently bought R193k worth of stock

Standard Bank Group Limited (JSE:SBK) acquired an unknown stake in Spear Reit Limited (JSE:SEA).

Less than half of directors are independent

Upcoming dividend of R0.37 per share

Spear Reit Limited (JSE:SEA) entered into a sale of rental enterprise agreement to acquire The Island Milnerton, Western Cape from Inospace 2 Proprietary Limited for SAR 185 million.

CEO, MD & Director recently bought R1.6m worth of stock

Rex Trueform Group Limited (JSE:RTN) entered in to an agreement to acquire ERF 176024 Cape Town situated at 5 Fitzmaurice Avenue from Spear Reit Limited (JSE:SEA) for ZAR 85 million.

Upcoming dividend of R0.35 per share

Spear Reit Limited Declares Final Gross Dividend, Payable 20 June 2022

Spear Reit Limited, Annual General Meeting, Jun 30, 2022

Spear Reit Limited to Report First Half, 2023 Results on Oct 25, 2022

Spear Reit Limited to Report Fiscal Year 2022 Results on May 26, 2022

Less than half of directors are independent

Snow Storm Investments Proprietary Limited entered into a sale of letting enterprise agreement to acquire Erf 17611 Cape Town at 8 Section Street, Paarden Eiland from Spear Reit Limited (JSE:SEA) for ZAR 22.5 million.

CEO, MD & Director recently bought R112k worth of stock