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TPF

Transcend Residential Property FundJSE:TPF Stock Report

Market Cap

R595.6m

7D

0%

1Y

-24.2%

Updated

17 Oct, 2021

Data

Company Financials
TPF fundamental analysis
Snowflake Score
Valuation4/6
Future Growth0/6
Past Performance1/6
Financial Health0/6
Dividends2/6

TPF Overview

Transcend Residential Property Fund Limited focuses on acquiring and managing residential properties in South Africa.

Transcend Residential Property Fund Competitors

Indluplace Properties

JSE:ILU

R1.0b

Stor-Age Property REIT

JSE:SSS

R6.0b

Tradehold

JSE:TDH

R2.6b

New African Properties

BSM:NAP

P2.0b

Price History & Performance

Summary of all time highs, changes and price drops for Transcend Residential Property Fund
Historical stock prices
Current Share PriceR4.55
52 Week HighR4.20
52 Week LowR5.50
Beta-0.10
1 Month Change0%
3 Month Change8.33%
1 Year Change-24.17%
3 Year Change-25.41%
5 Year Changen/a
Change since IPO-28.63%

Recent News & Updates

Shareholder Returns

TPFZA REITsZA Market
7D0%-0.4%1.6%
1Y-24.2%39.5%21.3%

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

Return vs Market: TPF underperformed the ZA Market which returned 21.3% over the past year.

Price Volatility

Is TPF's price volatile compared to industry and market?
TPF volatility
TPF Beta-0.10
Industry Beta0.89
Market Beta1

Stable Share Price: TPF is less volatile than 75% of ZA stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: TPF's weekly volatility (2%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
2016n/aMyles Kritzingerhttps://transcendproperty.co.za

Transcend Residential Property Fund Limited focuses on acquiring and managing residential properties in South Africa. It holds 13 properties comprising 2 472 units located primarily in Gauteng, as well as the Western Cape and Mpumalanga. The company qualifies as a real estate investment trust for federal income tax purposes.

Transcend Residential Property Fund Fundamentals Summary

How do Transcend Residential Property Fund's earnings and revenue compare to its market cap?
TPF fundamental statistics
Market CapR595.57m
Earnings (TTM)R171.25m
Revenue (TTM)R311.07m

3.5x

P/E Ratio

1.9x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TPF income statement (TTM)
RevenueR311.07m
Cost of RevenueR119.65m
Gross ProfitR191.42m
ExpensesR20.17m
EarningsR171.25m

Last Reported Earnings

Jun 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)1.31
Gross Margin61.54%
Net Profit Margin55.05%
Debt/Equity Ratio99.9%

How did TPF perform over the long term?

See historical performance and comparison

Dividends

15.1%

Current Dividend Yield

114%

Payout Ratio

Valuation

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

9.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: TPF (ZAR4.55) is trading below our estimate of fair value (ZAR5.05)

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


Price To Earnings Ratio

PE vs Industry: TPF is good value based on its PE Ratio (3.5x) compared to the ZA REITs industry average (9.9x).

PE vs Market: TPF is good value based on its PE Ratio (3.5x) compared to the ZA market (11.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: TPF is good value based on its PB Ratio (0.5x) compared to the ZA REITs industry average (0.6x).


Future Growth

How is Transcend Residential Property Fund forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

11.9%

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 Transcend Residential Property Fund 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 Transcend Residential Property Fund performed over the past 5 years?

-3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TPF has a large one-off gain of ZAR67.4M impacting its June 30 2021 financial results.

Growing Profit Margin: TPF became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: TPF's earnings have declined by 3.2% per year over the past 5 years.

Accelerating Growth: TPF has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: TPF has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (132.9%).


Return on Equity

High ROE: TPF's Return on Equity (13.6%) is considered low.


Financial Health

How is Transcend Residential Property Fund's financial position?


Financial Position Analysis

Short Term Liabilities: TPF's short term assets (ZAR225.7M) do not cover its short term liabilities (ZAR633.2M).

Long Term Liabilities: TPF's short term assets (ZAR225.7M) do not cover its long term liabilities (ZAR680.9M).


Debt to Equity History and Analysis

Debt Level: TPF's debt to equity ratio (99.9%) is considered high.

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

Debt Coverage: TPF's debt is not well covered by operating cash flow (4.1%).

Interest Coverage: TPF's interest payments on its debt are not well covered by EBIT (2.4x coverage).


Balance Sheet


Dividend

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

15.13%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TPF's dividend (15.13%) is higher than the bottom 25% of dividend payers in the ZA market (3.07%).

High Dividend: TPF's dividend (15.13%) is in the top 25% of dividend payers in the ZA market (8.09%)


Stability and Growth of Payments

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

Growing Dividend: TPF's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (113.9%), TPF's dividend payments are not well 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?

0.8yrs

Average management tenure


CEO

Myles Kritzinger (36 yo)

0.75

Tenure

R1,823,000

Compensation

Mr. Myles Kritzinger, CA(SA), has been Executive Director of Transcend Residential Property since March 9, 2018 and has been its Chief Executive Officer since January 1, 2021. He was the Chief Financial Of...


CEO Compensation Analysis

Compensation vs Market: Myles's total compensation ($USD124.67K) is below average for companies of similar size in the ZA market ($USD280.19K).

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


Leadership Team

Experienced Management: TPF's management team is not considered experienced ( 0.8 years average tenure), which suggests a new team.


Board Members

Experienced Board: TPF's board of directors are considered experienced (4.4 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

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


Key Information

  • Name: Transcend Residential Property Fund Limited
  • Ticker: TPF
  • Exchange: JSE
  • Founded: 2016
  • Industry: Residential REITs
  • Sector: Real Estate
  • Market Cap: R595.571m
  • Shares outstanding: 130.89m
  • Website: https://transcendproperty.co.za

Location

  • Transcend Residential Property Fund Limited
  • Glasgow House
  • Block G, Ground Floor
  • Johannesburg
  • Gauteng
  • 2191
  • 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 17:06
End of Day Share Price2021/10/15 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.