| Date Reviewed | N/A |
| Company Name | European Residential REIT |
| Symbol | ERE.UN.TO |
| Sector | Real Estate |
| Industry | REIT - Residential |
| Beta | 1.307 |
| PRO Rating | 4 |
| Dividend Safety | 3 |
Business Model
European Residential REIT is a Canada-based open-ended real estate investment trust (REIT). The Company owns a portfolio of 157 multi-residential properties, comprised of approximately 6,750 suites and ancillary retail space located in the Netherlands, and owned one commercial property in Germany and one commercial property in Belgium. Its Commercial properties are located in Belgium and Germany and managed by Maple Knoll. Its commercial properties consists of 1 rue Adolphe Lavallee, Brussels, Belgium and E.ON-Allee 1-5 and Kiem-Pauli-Strabe, 2, Landshut, Germany. Its multi-residential portfolio is located across the Netherlands and is asset and property managed by European Residential Management (ERESM B.V.) on behalf of the Company. Its residential property consists of Chopinlaan 1-120; Sterappel 1-27 - 14 apartments; Prins Willem Alexanderplein 9-85 - 37 apartments; Keizershof 24-41 - 18 apartments; De Kameleon - 222 apartments, and Faustdreef 1-179 - 90 apartments.
| Current price | 3.48 |
| ROE | -23.35 % |
| ROIC | 0.00 % |
| Shareholder Yield | 3.05 % |
| 5-Yr Total Return | -9.60 % |
| 1-Yr Total Return | 63.95 % |
| Next Earnings Date |
Latest Quarter Information
What the CEO said:We're pleased to be executing on our previously stated commitment to surface value and enhance returns for our Unitholders, and we're proud of the meaningful strides we've made on that mission so far this year. Since the first quarter, we've completed €116 million in strategic portfolio sales and we've generated €15.1 million in additional liquidity from individual suite dispositions. We're using the net proceeds primarily to pay down debt, in order to lower our leverage, reduce our exposure to interest rate risk and strengthen our balance sheet."
What we say:8-6-2024, ERE reported Q2 2024 FFO of $0.039, representing a 5% decrease when compared to Q2 2023. Revenue reported for the quarter was $24.5M, representing a 5% increase when compared to the same period last year. Rental increases due to indexation beginning on July 1, 2024, the REIT served tenant notices to 6,572 suites, representing 96% of the residential portfolio, across which the average rental increase due to indexation and household income adjustments is 5.6%. In the prior year period, the REIT served tenant notices to 6,659 suites, representing 97% of the residential portfolio, across which the average rental increase due to indexation.
Investment Thesis
Dividend Triangle
| 5-Yr Rev. Growth | 34.45 % |
| 5-Yr EPS Growth | 0.00 % |
| 5-Yr Div Growth | -12.90 % |
Potential Risks
| Debt/Equity | 2.30 |
| Financial Debt to EBITDA (TTM) | 12.55 |
| Current Ratio (Quarterly) | 0.10 |
| Credit Score | 14 |
Dividend Growth Perspective
| Dividend ($) | 0.1799 |
| Dividend Yield Fwd | 5.20 % |
| Dividend Frequency | Monthly |
| Average 5-Yr Yield | 4.95 % |
| Payout Ratio (%) | 0.00 |
| Cash Payout Ratio (%) | 20.60 |
| DGR 1-Yr | 2.05 |
| DGR 3-Yr | 3.05 |
| DGR 5-Yr | -12.90 |
| DGR Streak | |
| Chowder Score | -7.75 |
| Next DVD PMT | 11-15-24 |
Valuation
(Data for `ddm_recent_annual_dividend` field are missing to build DDM tables)
Video Tutorial: How to Read the Stock Cards DDM Valuation
| Market Cap | 320.00 M |
| PE Ratio | 16.95 |
| Fwd PE | 23.05 |
| Price to Book Ratio | 1.35 |
| DDM Valuation | N/A |
| Average 5-Yr PE | 14.24 |
| Value Score | 68 |
- All financial metrics are updated weekly.
- The DSR PRO rating and Dividend Safety Score are updated quarterly.
- The analysis (investment thesis, risk potential, dividend growth perspective and DDM calculation) is reviewed every 6 months.
- The PDF format includes only comments (no metrics) and is reviewed every 6 months.