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ALE Property Group

ASX:LEP
Snowflake Description

Imperfect balance sheet with concerning outlook.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
LEP
ASX
A$1B
Market Cap
  1. Home
  2. AU
  3. Real Estate
Company description

ALE Property Group (ASX:LEP) is the owner of Australia's largest portfolio of freehold pub properties. The last earnings update was 67 days ago. More info.


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LEP Share Price and Events
7 Day Returns
0.4%
ASX:LEP
0.1%
AU REITs
1.3%
AU Market
1 Year Returns
0.4%
ASX:LEP
20.5%
AU REITs
9.9%
AU Market
LEP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
ALE Property Group (LEP) 0.4% -0.2% 5.6% 0.4% 19.1% 64.1%
AU REITs 0.1% 0.4% -2.8% 20.5% 23.4% 58.9%
AU Market 1.3% -0.6% -1% 9.9% 17.6% 17.8%
1 Year Return vs Industry and Market
  • LEP underperformed the REITs industry which returned 20.5% over the past year.
  • LEP underperformed the Market in Australia which returned 9.9% over the past year.
Price Volatility
LEP
Industry
5yr Volatility vs Market

Value

 Is ALE Property Group undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of ALE Property Group to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for ALE Property Group.

ASX:LEP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations
Levered Adjusted Funds From Operations Average of 3 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.1%
Perpetual Growth Rate 10-Year AU Government Bond Rate 2.3%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for ASX:LEP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year AU Govt Bond Rate 2.3%
Equity Risk Premium S&P Global 6%
REITs Unlevered Beta Simply Wall St/ S&P Global 0.47
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.47 (1 + (1- 30%) (54.26%))
0.765
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.8
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.31% + (0.8 * 5.96%)
7.08%

Discounted Cash Flow Calculation for ASX:LEP using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

ASX:LEP Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$3.98
Current discount Discount to share price of A$5.30
= -1 x (A$5.30 - A$3.98) / A$3.98
-33.2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of ALE Property Group is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for ALE Property Group's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are ALE Property Group's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:LEP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-06-30) in AUD A$0.14
ASX:LEP Share Price ** ASX (2019-10-11) in AUD A$5.3
Australia REITs Industry PE Ratio Median Figure of 38 Publicly-Listed REITs Companies 15.7x
Australia Market PE Ratio Median Figure of 557 Publicly-Listed Companies 17.93x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of ALE Property Group.

ASX:LEP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= ASX:LEP Share Price ÷ EPS (both in AUD)

= 5.3 ÷ 0.14

38.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ALE Property Group is overvalued based on earnings compared to the AU REITs industry average.
  • ALE Property Group is overvalued based on earnings compared to the Australia market.
Price based on expected Growth
Does ALE Property Group's expected growth come at a high price?
Raw Data
ASX:LEP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 38.98x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts
8.7%per year
Australia REITs Industry PEG Ratio Median Figure of 31 Publicly-Listed REITs Companies 1.2x
Australia Market PEG Ratio Median Figure of 357 Publicly-Listed Companies 1.69x

*Line of best fit is calculated by linear regression .

ASX:LEP PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 38.98x ÷ 8.7%

4.48x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ALE Property Group is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on ALE Property Group's assets?
Raw Data
ASX:LEP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-06-30) in AUD A$3.09
ASX:LEP Share Price * ASX (2019-10-11) in AUD A$5.3
Australia REITs Industry PB Ratio Median Figure of 43 Publicly-Listed REITs Companies 1.11x
Australia Market PB Ratio Median Figure of 1,705 Publicly-Listed Companies 1.8x
ASX:LEP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= ASX:LEP Share Price ÷ Book Value per Share (both in AUD)

= 5.3 ÷ 3.09

1.71x

* Primary Listing of ALE Property Group.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • ALE Property Group is overvalued based on assets compared to the AU REITs industry average.
X
Value checks
We assess ALE Property Group's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the REITs industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the REITs industry average (and greater than 0)? (1 check)
  5. ALE Property Group has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is ALE Property Group expected to perform in the next 1 to 3 years based on estimates from 3 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
8.7%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is ALE Property Group expected to grow at an attractive rate?
  • ALE Property Group's earnings growth is expected to exceed the low risk savings rate of 2.3%.
Growth vs Market Checks
  • ALE Property Group's earnings growth is positive but not above the Australia market average.
  • ALE Property Group's revenue growth is positive but not above the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:LEP Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:LEP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 3 Analysts 8.7%
ASX:LEP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 3 Analysts 3%
Australia REITs Industry Earnings Growth Rate Market Cap Weighted Average 2.5%
Australia REITs Industry Revenue Growth Rate Market Cap Weighted Average -3.7%
Australia Market Earnings Growth Rate Market Cap Weighted Average 10.2%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.6%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
ASX:LEP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:LEP Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 66 37 36 2
2021-06-30 65 36 35 3
2020-06-30 64 39 38 3
2019-10-13
ASX:LEP Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2019-06-30 60 28 27
2019-03-31 60 28 39
2018-12-31 59 28 51
2018-09-30 59 29 63
2018-06-30 58 29 75
2018-03-31 58 29 95
2017-12-31 58 28 114
2017-09-30 57 29 122
2017-06-30 57 30 130
2017-03-31 57 30 102
2016-12-31 57 30 74
2016-09-30 56 30 82

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • ALE Property Group's earnings are expected to grow by 8.7% yearly, however this is not considered high growth (20% yearly).
  • ALE Property Group's revenue is expected to grow by 3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
ASX:LEP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below

All data from ALE Property Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:LEP Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 0.18 0.18 0.18 1.00
2021-06-30 0.18 0.18 0.18 2.00
2020-06-30 0.19 0.20 0.18 2.00
2019-10-13
ASX:LEP Past Financials Data
Date (Data in AUD Millions) EPS *
2019-06-30 0.14
2019-03-31 0.20
2018-12-31 0.26
2018-09-30 0.32
2018-06-30 0.38
2018-03-31 0.48
2017-12-31 0.58
2017-09-30 0.62
2017-06-30 0.66
2017-03-31 0.52
2016-12-31 0.38
2016-09-30 0.42

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • ALE Property Group is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess ALE Property Group's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Australia market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Australia market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
ALE Property Group has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has ALE Property Group performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare ALE Property Group's growth in the last year to its industry (REITs).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • ALE Property Group's year on year earnings growth rate was negative over the past 5 years and the most recent earnings are below average.
  • ALE Property Group's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • ALE Property Group's 1-year earnings growth is negative, it can't be compared to the AU REITs industry average.
Earnings and Revenue History
ALE Property Group's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from ALE Property Group Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:LEP Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-06-30 60.22 26.62 2.46
2019-03-31 59.56 38.78 2.67
2018-12-31 58.91 50.93 2.88
2018-09-30 58.50 63.01 2.88
2018-06-30 58.10 75.09 2.88
2018-03-31 57.80 94.68 2.88
2017-12-31 57.50 114.27 2.87
2017-09-30 57.25 122.15 2.87
2017-06-30 57.01 130.04 2.87
2017-03-31 56.80 101.83 2.75
2016-12-31 56.59 73.62 2.62
2016-09-30 56.38 82.40 2.62
2016-06-30 56.17 91.18 2.62
2016-03-31 55.96 115.89 2.64
2015-12-31 55.75 140.60 2.66
2015-09-30 55.48 119.98 2.66
2015-06-30 55.21 99.36 2.66
2015-03-31 54.94 65.33 1.53
2014-12-31 54.67 31.30 0.39
2014-09-30 54.43 34.25 0.39
2014-06-30 54.19 37.19 0.39
2014-03-31 53.91 41.78 0.34
2013-12-31 53.64 46.37 0.28
2013-09-30 53.37 30.64 0.28
2013-06-30 53.10 14.91 0.28
2013-03-31 52.86 -3.10 0.20
2012-12-31 52.61 -21.11 0.11

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • ALE Property Group has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • ALE Property Group used its assets less efficiently than the AU REITs industry average last year based on Return on Assets.
  • ALE Property Group's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess ALE Property Group's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the REITs industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
ALE Property Group has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is ALE Property Group's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up ALE Property Group's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • ALE Property Group is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • ALE Property Group's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of ALE Property Group's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is not covered by short term assets, assets are 0.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from ALE Property Group Company Filings, last reported 3 months ago.

ASX:LEP Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-06-30 605.57 562.94 33.80
2019-03-31 605.57 562.94 33.80
2018-12-31 605.00 542.74 37.80
2018-09-30 605.00 542.74 37.80
2018-06-30 620.07 534.91 46.01
2018-03-31 620.07 534.91 46.01
2017-12-31 595.07 532.26 52.36
2017-09-30 595.07 532.26 52.36
2017-06-30 585.98 527.65 59.59
2017-03-31 585.98 527.65 59.59
2016-12-31 521.38 489.27 32.10
2016-09-30 521.38 489.27 32.10
2016-06-30 495.94 505.88 37.92
2016-03-31 495.94 505.88 37.92
2015-12-31 487.53 482.73 41.44
2015-09-30 487.53 482.73 41.44
2015-06-30 443.74 478.06 44.81
2015-03-31 443.74 478.06 44.81
2014-12-31 382.65 478.39 45.49
2014-09-30 382.65 478.39 45.49
2014-06-30 377.29 576.43 149.96
2014-03-31 377.29 576.43 149.96
2013-12-31 383.94 477.54 60.47
2013-09-30 383.94 477.54 60.47
2013-06-30 368.36 476.83 54.65
2013-03-31 368.36 476.83 54.65
2012-12-31 363.64 476.61 74.84
  • ALE Property Group's level of debt (93%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (152.5% vs 93% today).
  • Debt is not well covered by operating cash flow (5%, less than 20% of total debt).
  • Interest payments on debt are not well covered by earnings (EBIT is 2.3x annual interest expense, ideally 3x coverage).
X
Financial health checks
We assess ALE Property Group's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. ALE Property Group has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is ALE Property Group's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
3.94%
Current annual income from ALE Property Group dividends. Estimated to be 4.38% next year.
If you bought A$2,000 of ALE Property Group shares you are expected to receive A$79 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • ALE Property Group's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.5%).
  • ALE Property Group's dividend is below the markets top 25% of dividend payers in Australia (5.6%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
ASX:LEP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 3 Analyst Estimates (S&P Global) See Below
Australia REITs Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 4.4%
Australia Market Average Dividend Yield Market Cap Weighted Average of 407 Stocks 4.2%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.5%
Australia Top 25% Dividend Yield 75th Percentile 5.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

ASX:LEP Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.24 2.00
2021-06-30 0.23 3.00
2020-06-30 0.22 3.00
2019-10-13
ASX:LEP Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-06-17 0.209 4.053
2018-12-18 0.209 4.326
2018-06-06 0.209 3.944
2017-12-11 0.207 4.142
2017-06-09 0.205 4.353
2016-12-06 0.203 4.539
2016-06-09 0.202 4.637
2015-12-02 0.198 4.907
2015-06-10 0.169 4.537
2014-12-04 0.168 4.735
2014-06-13 0.165 5.325
2013-12-05 0.164 5.736
2013-06-17 0.160 5.939
2012-12-20 0.160 6.415
2012-07-31 0.160 7.215
2011-12-08 0.160 7.767
2011-08-03 0.195 10.114
2011-02-16 0.200 10.309
2010-08-17 0.240 12.236
2009-12-11 0.240 10.965
2009-08-10 0.300 14.056
2008-12-11 0.319 15.225
2008-10-28 0.337 14.700

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Dividends per share have been volatile in the past 10 years (annual drop of over 20%).
  • Dividends per share have fallen over the past 10 years.
Current Payout to shareholders
What portion of ALE Property Group's earnings are paid to the shareholders as a dividend.
  • Dividends paid are not well covered by earnings (0.7x coverage).
Future Payout to shareholders
  • Dividends after 3 years are not well covered by earnings (0.7x coverage).
X
Income/ dividend checks
We assess ALE Property Group's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.6%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can ALE Property Group afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. ALE Property Group has a total score of 1/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of ALE Property Group's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Andrew F. Wilkinson
COMPENSATION A$591,556
TENURE AS CEO 15.9 years
CEO Bio

Mr. Andrew F. O. Wilkinson, B.Bus, CFTP, MAICD, serves as the Chief Executive Officer of Australian Leisure and Entertainment Property Management Limited and also has been its Managing Director since November 2004 and Australian Leisure and Entertainment Property Management Limited since November 16, 2004. He serves as Chief Executive Officer of Australian Leisure and Entertainment Property Group since November 2003 and serves as its Managing Director & Director since November 2004. Mr. Wilkinson has been Managing Director of ALE Property Group. since November 2004 and also has been its Chief Executive Officer since November 2003 and ALE Property Group since November 16, 2004. He serves as Managing Director of ALE Finance Company Pty Limited. He has 25 years experience in banking and corporate finance. He served as a Partner with PricewaterhouseCoopers and specialized in providing financial and strategic advice on significant property and infrastructure projects. Over his eight year period with PricewaterhouseCoopers he held a number of senior positions and was also one of the founding members of the NSW Government's Infrastructure Council. His career also includes 15 years in finance and investment banking with organisations including ANZ Capel Court and Schroders, where he was involved in leading the financing arrangements for a range of major projects. Mr. Wilkinson studied Bachelor of Business degree from the University of Technology, Sydney.

CEO Compensation
  • Andrew F.'s compensation has been consistent with company performance over the past year, both up more than 20%.
  • Andrew F.'s remuneration is lower than average for companies of similar size in Australia.
Management Team Tenure

Average tenure of the ALE Property Group management team in years:

9.1
Average Tenure
  • The average tenure for the ALE Property Group management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Andrew F. Wilkinson

TITLE
MD, CEO & Director
COMPENSATION
A$592K
TENURE
15.9 yrs

Michael Clarke

TITLE
Finance Manager & Company Secretary
COMPENSATION
A$354K

Don Shipway

TITLE
Asset Manager
COMPENSATION
A$229K
TENURE
9.1 yrs

Andrew Slade

TITLE
Capital Manager
COMPENSATION
A$208K

Margaret Sullivan

TITLE
Compliance Manager
TENURE
3.3 yrs
Board of Directors Tenure

Average tenure and age of the ALE Property Group board of directors in years:

4.9
Average Tenure
58
Average Age
  • The tenure for the ALE Property Group board of directors is about average.
Board of Directors

Rob Mactier

TITLE
Independent Chairman of the Board
COMPENSATION
A$195K
AGE
55
TENURE
2.4 yrs

Andrew F. Wilkinson

TITLE
MD, CEO & Director
COMPENSATION
A$592K
TENURE
14.9 yrs

Pippa Downes

TITLE
Independent Non-Executive Director
COMPENSATION
A$115K
TENURE
5.9 yrs

Paul Say

TITLE
Independent Non-Executive Director
COMPENSATION
A$120K
AGE
58
TENURE
5.1 yrs

Nancy Milne

TITLE
Independent Non-Executive Director
COMPENSATION
A$110K
AGE
66
TENURE
4.7 yrs

Michael Triguboff

TITLE
Non-Executive Director
COMPENSATION
A$95K
TENURE
1.7 yrs

Bernard Stanton

TITLE
Director
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
15. Jul 19 Sell Andrew F. Wilkinson Individual 11. Jul 19 11. Jul 19 -33,365 A$5.03 A$-167,826
15. Jul 19 Buy Andrew F. Wilkinson Individual 11. Jul 19 11. Jul 19 33,365 A$5.03 A$167,826
11. Jul 19 Sell UBS Asset Management Company 09. Jul 19 09. Jul 19 -8,864 A$5.05 A$-44,778
11. Jul 19 Buy UBS Asset Management Company 11. Mar 19 09. Jul 19 2,631,365 A$4.85 A$12,675,575
01. Nov 18 Sell Orbis Investment Management Limited Company 31. May 18 30. Oct 18 -882,034 A$5.72 A$-4,834,656
01. Nov 18 Buy Orbis Investment Management Limited Company 19. Feb 18 24. Oct 18 30,313 A$5.49 A$152,214
01. Nov 18 Sell UBS Asset Management Company 04. Sep 18 30. Oct 18 -878,001 A$5.29 A$-4,644,338
01. Nov 18 Buy UBS Asset Management Company 04. Sep 18 30. Oct 18 1,417,200 A$5.24 A$7,429,686
X
Management checks
We assess ALE Property Group's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. ALE Property Group has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

A Closer Look At ALE Property Group's (ASX:LEP) Uninspiring ROE

Our data shows ALE Property Group has a return on equity of 4.4% for the last year. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for ALE Property Group: 4.4% = AU$27m ÷ AU$606m (Based on the trailing twelve months to June 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … The Importance Of Debt To Return On Equity Most companies need money -- from somewhere -- to grow their profits.

Simply Wall St -

ALE Property Group (ASX:LEP) Shareholders Booked A 65% Gain In The Last Five Years

To wit, the ALE Property Group share price has climbed 65% in five years, easily topping the market return of 8.3% (ignoring dividends). … ALE Property Group's earnings per share are down 6.5% per year, despite strong share price performance over five years. … As it happens, ALE Property Group's TSR for the last 5 years was 107%, which exceeds the share price return mentioned earlier.

Simply Wall St -

What Kind Of Shareholder Appears On The ALE Property Group's (ASX:LEP) Shareholder Register?

Check out our latest analysis for ALE Property Group ASX:LEP Ownership Summary, July 25th 2019 What Does The Institutional Ownership Tell Us About ALE Property Group? … Insider Ownership Of ALE Property Group The definition of company insiders can be subjective, and does vary between jurisdictions. … Our most recent data indicates that insiders own some shares in ALE Property Group.

Simply Wall St -

Is ALE Property Group's (ASX:LEP) CEO Being Overpaid?

Wilkinson is paid less than the average total compensation paid by similar sized companies. … It appears that ALE Property Group remunerates its CEO below most similar sized companies. … If you want to buy a stock that is better than ALE Property Group, this free list of high return, low debt companies is a great place to look.

Simply Wall St -

Is ALE Property Group (ASX:LEP) A Healthy REIT?

ALE Property Group is a AU$942m small-cap, real estate investment trust (REIT) based in Sydney, Australia. … View our latest analysis for ALE Property Group REIT investors should be familiar with the term Fund from Operations (FFO) – a REIT’s main source of cash flow from its day-to-day business activities. … Take a look at our free research report of analyst consensus for LEP’s outlook.

Simply Wall St -

If You Had Bought ALE Property Group (ASX:LEP) Stock Five Years Ago, You Could Pocket A 68% Gain Today

For example, long term ALE Property Group (ASX:LEP) shareholders have enjoyed a 68% share price rise over the last half decade, well in excess of the market return of around 8.4% (not including dividends). … Over half a decade, ALE Property Group managed to grow its earnings per share at 1.8% a year. … This EPS growth is slower than the share price growth of 11% per year, over the same period.

Simply Wall St -

Do Institutions Own ALE Property Group (ASX:LEP) Shares?

If you want to know who really controls ALE Property Group (ASX:LEP), then you'll have to look at the makeup of its share registry. … With a market capitalization of AU$973m, ALE Property Group is a small cap stock, so it might not be well known by many institutional investors. … View our latest analysis for ALE Property Group

Simply Wall St -

Is ALE Property Group's (ASX:LEP) CEO Being Overpaid?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … At the time of writing our data says that ALE Property Group has a market cap of AU$987m, and is paying total annual CEO compensation of AU$774k. … We looked at a group of companies with market capitalizations from AU$565m to AU$2.3b, and the median CEO total compensation was AU$1.5m.

Simply Wall St -

Why You Shouldn't Look At ALE Property Group's (ASX:LEP) Bottom Line

real estate investment trust (REIT) based in Sydney, Australia. … REITs are basically a portfolio of income-producing real estate investments, which are owned and operated by management of that trust company. … A common financial term REIT investors should know is Funds from Operations, or FFO for short, which is a REIT's main source of income from its portfolio of property, such as rent

Simply Wall St -

ALE Property Group (ASX:LEP) Has A ROE Of 12%

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … Our data shows ALE Property Group has a return on equity of 12% for the last year. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Company Info

Description

ALE Property Group (ASX:LEP) is the owner of Australia's largest portfolio of freehold pub properties. Established in November 2003, ALE owns a portfolio of around 86 pub properties across the five mainland states of Australia. All of the properties are leased to Australian Leisure and Hospitality Group Limited (ALH) for an average initial term of around a further 13 years. ALH is owned by a joint venture (ALH Group); 75% is controlled by Woolworths Limited, Australia's leading retailer and the remaining 25% by one of Australia's leading hoteliers, the Bruce Mathieson Group (BMG). ALH Group, through its ownership of MGW, BMG and Taverner is Australia's leading pub operator. Woolworths is Australia's leading liquor retailer. Its operations include Dan Murphys and BWS.

Details
Name: ALE Property Group
LEP
Exchange: ASX
Founded: 2003
A$1,037,576,124
195,769,080
Website: http://www.alegroup.com.au
Address: ALE Property Group
Norwich House,
Level 10,
Sydney,
New South Wales, 2000,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX LEP Stapled Securities Australian Securities Exchange AU AUD 13. Nov 2003
CHIA LEP Stapled Securities Chi-X Australia AU AUD 13. Nov 2003
Number of employees
Current staff
Staff numbers
0
ALE Property Group employees.
Industry
Specialized REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/10/13 10:34
End of day share price update: 2019/10/11 00:00
Last estimates confirmation: 2019/08/12
Last earnings filing: 2019/08/07
Last earnings reported: 2019/06/30
Last annual earnings reported: 2019/06/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.