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The PRS REIT (LSE:PRSR) ROE % : 9.05% (As of Dec. 2023)


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What is The PRS REIT ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. The PRS REIT's annualized net income for the quarter that ended in Dec. 2023 was £60.56 Mil. The PRS REIT's average Total Stockholders Equity over the quarter that ended in Dec. 2023 was £669.37 Mil. Therefore, The PRS REIT's annualized ROE % for the quarter that ended in Dec. 2023 was 9.05%.

The historical rank and industry rank for The PRS REIT's ROE % or its related term are showing as below:

LSE:PRSR' s ROE % Range Over the Past 10 Years
Min: 0.67   Med: 5.01   Max: 20.52
Current: 8.78

During the past 6 years, The PRS REIT's highest ROE % was 20.52%. The lowest was 0.67%. And the median was 5.01%.

LSE:PRSR's ROE % is ranked better than
74.27% of 793 companies
in the REITs industry
Industry Median: 4.41 vs LSE:PRSR: 8.78

The PRS REIT ROE % Historical Data

The historical data trend for The PRS REIT's ROE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

The PRS REIT ROE % Chart

The PRS REIT Annual Data
Trend Jun18 Jun19 Jun20 Jun21 Jun22 Jun23
ROE %
Get a 7-Day Free Trial 3.03 3.47 9.18 20.52 6.54

The PRS REIT Semi-Annual Data
Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only 14.50 25.52 4.59 8.52 9.05

Competitive Comparison of The PRS REIT's ROE %

For the REIT - Residential subindustry, The PRS REIT's ROE %, along with its competitors' market caps and ROE % data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


The PRS REIT's ROE % Distribution in the REITs Industry

For the REITs industry and Real Estate sector, The PRS REIT's ROE % distribution charts can be found below:

* The bar in red indicates where The PRS REIT's ROE % falls into.



The PRS REIT ROE % Calculation

The PRS REIT's annualized ROE % for the fiscal year that ended in Jun. 2023 is calculated as

ROE %=Net Income (A: Jun. 2023 )/( (Total Stockholders Equity (A: Jun. 2022 )+Total Stockholders Equity (A: Jun. 2023 ))/ count )
=42.452/( (639.238+659.72)/ 2 )
=42.452/649.479
=6.54 %

The PRS REIT's annualized ROE % for the quarter that ended in Dec. 2023 is calculated as

ROE %=Net Income (Q: Dec. 2023 )/( (Total Stockholders Equity (Q: Jun. 2023 )+Total Stockholders Equity (Q: Dec. 2023 ))/ count )
=60.556/( (659.72+679.014)/ 2 )
=60.556/669.367
=9.05 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is two times the semi-annual (Dec. 2023) net income data. ROE % is displayed in the 30-year financial page.


The PRS REIT  (LSE:PRSR) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=60.556/669.367
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(60.556 / 63.374)*(63.374 / 1079.486)*(1079.486 / 669.367)
=Net Margin %*Asset Turnover*Equity Multiplier
=95.55 %*0.0587*1.6127
=ROA %*Equity Multiplier
=5.61 %*1.6127
=9.05 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Dec. 2023 )
=Net Income/Total Stockholders Equity
=60.556/669.367
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (60.556 / 60.556) * (60.556 / 63.374) * (63.374 / 1079.486) * (1079.486 / 669.367)
= Tax Burden * Pretax Margin % * Asset Turnover * Equity Multiplier
= 1 * 95.55 % * 0.0587 * 1.6127
=9.05 %

Note: The net income data used here is two times the semi-annual (Dec. 2023) net income data. The Revenue data used here is two times the semi-annual (Dec. 2023) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


The PRS REIT ROE % Related Terms

Thank you for viewing the detailed overview of The PRS REIT's ROE % provided by GuruFocus.com. Please click on the following links to see related term pages.


The PRS REIT (LSE:PRSR) Business Description

Traded in Other Exchanges
Address
1 St. Ann Street, Floor 3, Manchester, GBR, M2 7LR
The PRS REIT PLC operates as a real estate investment trust to focus on the Private Rented Sector. The company aims to provide investors with an attractive level of income together with the prospect of income and capital growth through investment in a portfolio of newly constructed private rented properties comprising mainly family homes. The company has only one operating segment named property, and the company only operates within the UK.