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TWR

Tower Property FundJSE:TWR Stock Report

Market Cap

R1.2b

7D

0.8%

1Y

54.9%

Updated

15 Oct, 2021

Data

Company Financials
TWR fundamental analysis
Snowflake Score
Valuation0/6
Future Growth0/6
Past Performance0/6
Financial Health0/6
Dividends2/6

TWR Overview

Tower is an internally managed real estate investment trust (REIT) which owns a diversified portfolio of 42 convenience retail, office and industrial properties valued at R4.8 billion, located in South Africa and Croatia.

Tower Property Fund Competitors

Growthpoint Properties

JSE:GRT

R47.2b

Redefine Properties

JSE:RDF

R24.3b

Investec Property Fund

JSE:IPF

R8.6b

SA Real Estate

JSE:SAC

R5.5b

Price History & Performance

Summary of all time highs, changes and price drops for Tower Property Fund
Historical stock prices
Current Share PriceR3.64
52 Week HighR1.94
52 Week LowR3.80
Beta1.08
1 Month Change1.11%
3 Month Change1.11%
1 Year Change54.89%
3 Year Change-43.13%
5 Year Change-52.73%
Change since IPO-63.60%

Recent News & Updates

Shareholder Returns

TWRZA REITsZA Market
7D0.8%-0.4%1.6%
1Y54.9%39.5%21.3%

Return vs Industry: TWR exceeded the ZA REITs industry which returned 39.4% over the past year.

Return vs Market: TWR exceeded the ZA Market which returned 21.2% over the past year.

Price Volatility

Is TWR's price volatile compared to industry and market?
TWR volatility
TWR Beta1.08
Industry Beta0.89
Market Beta1

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

Volatility Over Time: TWR's weekly volatility (3%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
n/an/aMarc Edwardshttps://www.towerpropertyfund.co.za

Tower is an internally managed real estate investment trust (REIT) which owns a diversified portfolio of 42 convenience retail, office and industrial properties valued at R4.8 billion, located in South Africa and Croatia. The South African portfolio is located in the country's major metropoles with 47% by value in Cape Town, 41% in Gauteng and 12% in KwaZulu Natal. The five Croatian properties represent 37% of the fund's total value.

Tower Property Fund Fundamentals Summary

How do Tower Property Fund's earnings and revenue compare to its market cap?
TWR fundamental statistics
Market CapR1.23b
Earnings (TTM)-R418.21m
Revenue (TTM)R322.96m

3.8x

P/S Ratio

-2.9x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
TWR income statement (TTM)
RevenueR322.96m
Cost of RevenueR55.39m
Gross ProfitR267.57m
ExpensesR685.78m
Earnings-R418.21m

Last Reported Earnings

May 31, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-1.24
Gross Margin82.85%
Net Profit Margin-129.49%
Debt/Equity Ratio78.8%

How did TWR perform over the long term?

See historical performance and comparison

Dividends

6.2%

Current Dividend Yield

50%

Payout Ratio

Valuation

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

0.58x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: TWR (ZAR3.64) is trading above our estimate of fair value (ZAR3.22)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

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


Future Growth

How is Tower 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 Tower 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 Tower Property Fund performed over the past 5 years?

-58.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: TWR is currently unprofitable.

Growing Profit Margin: TWR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: TWR is unprofitable, and losses have increased over the past 5 years at a rate of 58% per year.

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

Earnings vs Industry: TWR is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (111.5%).


Return on Equity

High ROE: TWR has a negative Return on Equity (-16.96%), as it is currently unprofitable.


Financial Health

How is Tower Property Fund's financial position?


Financial Position Analysis

Short Term Liabilities: TWR's short term assets (ZAR375.0M) do not cover its short term liabilities (ZAR515.7M).

Long Term Liabilities: TWR's short term assets (ZAR375.0M) do not cover its long term liabilities (ZAR1.4B).


Debt to Equity History and Analysis

Debt Level: TWR's debt to equity ratio (78.8%) is considered high.

Reducing Debt: TWR's debt to equity ratio has increased from 73% to 78.8% over the past 5 years.

Debt Coverage: TWR's debt is not well covered by operating cash flow (3.4%).

Interest Coverage: TWR's interest payments on its debt are not well covered by EBIT (2.1x coverage).


Balance Sheet


Dividend

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

6.16%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: TWR's dividend (6.16%) is higher than the bottom 25% of dividend payers in the ZA market (3.05%).

High Dividend: TWR's dividend (6.16%) is low compared to the top 25% of dividend payers in the ZA market (8.04%).


Stability and Growth of Payments

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

Growing Dividend: TWR has only been paying a dividend for 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (50.1%), TWR'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?

8.3yrs

Average board tenure


CEO

Marc Edwards (46 yo)

no data

Tenure

R3,314,000

Compensation

Mr. Marc Edwards serves as the Chief Executive Officer of Tower Property Fund Limited. He Co-founded Tower Property Fund Limited in 2012. Mr. Edwards joined Spire in 2004 after working for a property finan...


CEO Compensation Analysis

Compensation vs Market: Marc's total compensation ($USD226.64K) is about average for companies of similar size in the ZA market ($USD283.37K).

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


Board Members

Experienced Board: TWR's board of directors are considered experienced (8.3 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.


Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Tower Property Fund Limited
  • Ticker: TWR
  • Exchange: JSE
  • Founded: NaN
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: R1.228b
  • Shares outstanding: 337.24m
  • Website: https://www.towerpropertyfund.co.za

Location

  • Tower Property Fund Limited
  • Unit 606
  • 6th Floor, Sunclare Building
  • Claremont
  • Western Cape
  • 7708
  • South Africa

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/10/15 22:47
End of Day Share Price2021/10/15 00:00
Earnings2021/05/31
Annual Earnings2021/05/31


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.