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European Residential REIT
TSX:ERE.UN

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European Residential REIT
TSX:ERE.UN
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Price: 2.38 CAD -0.83% Market Closed
Updated: Mar 29, 2024

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%.

Key Points:
ERE.UN Intrinsic Value
Base Case
8.67 CAD
Undervaluation 73%
Intrinsic Value
Price
E
Worst Case
Base Case
Best Case

Valuation Backtest
European Residential REIT

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Fundamental Analysis

ERES Q3 2023: Strong Performance Amid Challenges
2023-Q3 Earnings Call

ERES Q3 2023: Strong Performance Amid Challenges

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.

Financials

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
Efficiency

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

Last Value
3-Years Average
FCF Margin
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Fundamental Scores

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.

59/100
Profitability
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.

Long-Term Solvency
High D/E
Short-Term Solvency
Positive Net Debt
15/100
Solvency
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

Wall Street analysts forecast ERE.UN stock price to rise over the next 12 months.

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.

Lowest
Price Target
2.78 CAD
17% Upside
Average
Price Target
3.22 CAD
35% Upside
Highest
Price Target
4.2 CAD
76% Upside
View Analyst Estimates
View Analyst Estimates

Competitive Landscape

Shareholder Return

ERE.UN Price
European Residential REIT

1M 1M
+5%
6M 6M
-3%
1Y 1Y
-26%
3Y 3Y
-40%
5Y 5Y
-30%
10Y 10Y
-21%
Annual Price Range
2.38
52w Low
2.15
52w High
3.4746
Price Metrics
Average Annual Return -1.96%
Standard Deviation of Annual Returns 21.53%
Max Drawdown -55%
Shares Statistics
Market Capitalization 217.9m CAD
Shares Outstanding 91 570 000
Percentage of Shares Shorted 0.07%

ERE.UN Return Decomposition
Main factors of price return

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Company Profile

European Residential REIT

Country

Canada

Industry

Real Estate

Market Cap

217.9m CAD

Dividend Yield

7.32%

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

ONTARIO
TORONTO
11 Church St Suite 401
+14163540167.0
https://www.eresreit.com/

IPO

2016-10-07

Employees

-

Officers

Chief Financial Officer
Ms. Jenny Chou
President, CEO & Director
Mr. Mark Kenney

See Also

Discover More
What is the Intrinsic Value of one ERE.UN stock?

The intrinsic value of one ERE.UN stock under the Base Case scenario is 8.67 CAD.

Is ERE.UN stock undervalued or overvalued?

Compared to the current market price of 2.38 CAD, European Residential REIT is Undervalued by 73%.