European Residential REIT
TSX:ERE.UN
Intrinsic Value
European Residential Real Estate Investment Trust is an open-ended real estate investment trust. [ Read More ]
The intrinsic value of one ERE.UN stock under the Base Case scenario is 8.67 CAD. Compared to the current market price of 2.38 CAD, European Residential REIT is Undervalued by 73%.
Valuation Backtest
European Residential REIT
Run backtest to discover the historical profit from buying and selling ERE.UN stocks based on their intrinsic value.
Analyze the historical link between intrinsic value and market price to make more informed investment decisions.
Fundamental Analysis
ERES Q3 2023: Strong Performance Amid Challenges
2023-Q3 Earnings Call
European Residential REIT (ERES) demonstrated a strong operational performance in Q3 2023, with residential occupancy reaching 98.7% and monthly rents increasing by 7.1% to EUR 1,053. Despite this, the fair value of its portfolio dropped slightly by 1.2% to EUR 1.7 billion, mainly impacted by inflation and interest rate pressures, which also led to a net asset value (NAV) decrease to EUR 3.05 per unit. Financially, ERES saw a 7.8% rise in same-property net operating income (NOI), with NOI margin improving to 79.5%. The funds from operations (FFO) per unit decreased by 4.5% to EUR 0.042, and the adjusted FFO (AFFO) payout ratio stood at 77.8% for the quarter, within its target range. Debt-to-market value ratio was up to 57%, but liquidity remained strong at EUR 188 million, with no immediate debt maturities threatening the balance sheet.
Balance Sheet Decomposition
European Residential REIT
Current Assets | 11.9m |
Cash & Short-Term Investments | 6.9m |
Receivables | 2.4m |
Other Current Assets | 2.6m |
Non-Current Assets | 1.7B |
Long-Term Investments | 1.7B |
Other Non-Current Assets | 29.2m |
Current Liabilities | 104.7m |
Accounts Payable | 1.9m |
Accrued Liabilities | 6.9m |
Other Current Liabilities | 95.9m |
Non-Current Liabilities | 1.2B |
Long-Term Debt | 912m |
Other Non-Current Liabilities | 278.8m |
Earnings Waterfall
European Residential REIT
Revenue
|
95.7m
EUR
|
Cost of Revenue
|
-17.9m
EUR
|
Gross Profit
|
77.8m
EUR
|
Operating Expenses
|
-10.5m
EUR
|
Operating Income
|
67.3m
EUR
|
Other Expenses
|
-181.5m
EUR
|
Net Income
|
-114.2m
EUR
|
Free Cash Flow Analysis
European Residential REIT
What is Free Cash Flow?
ERE.UN Profitability Score
Profitability Due Diligence
European Residential REIT's profitability score is 59/100. The higher the profitability score, the more profitable the company is.
Score
European Residential REIT's profitability score is 59/100. The higher the profitability score, the more profitable the company is.
ERE.UN Solvency Score
Solvency Due Diligence
European Residential REIT's solvency score is 15/100. The higher the solvency score, the more solvent the company is.
Score
European Residential REIT's solvency score is 15/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
ERE.UN Price Targets Summary
European Residential REIT
According to Wall Street analysts, the average 1-year price target for ERE.UN is 3.22 CAD with a low forecast of 2.78 CAD and a high forecast of 4.2 CAD.
Shareholder Return
ERE.UN Price
European Residential REIT
Average Annual Return | -1.96% |
Standard Deviation of Annual Returns | 21.53% |
Max Drawdown | -55% |
Market Capitalization | 217.9m CAD |
Shares Outstanding | 91 570 000 |
Percentage of Shares Shorted | 0.07% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
European Residential Real Estate Investment Trust is an open-ended real estate investment trust. The company is headquartered in Toronto, Ontario. The company went IPO on 2016-10-07. The firm owns a portfolio of multi-residential properties, including apartments and townhomes, as well as commercial properties in Europe. The company owns a portfolio of over 141 multi-residential properties, comprised of approximately 6,183 residential rental suites in Netherlands. The company holds approximately 450,911 square feet of gross leasable area (GLA) across one commercial property in Germany. The company owns one commercial property in Belgium. The company also owns ancillary retail space, which is located in Netherlands.
Contact
IPO
Employees
Officers
The intrinsic value of one ERE.UN stock under the Base Case scenario is 8.67 CAD.
Compared to the current market price of 2.38 CAD, European Residential REIT is Undervalued by 73%.