Do Directors Own Sasseur Real Estate Investment Trust (SGX:CRPU) Shares?

The big shareholder groups in Sasseur Real Estate Investment Trust (SGX:CRPU) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. Companies that used to be publicly owned tend to have lower insider ownership.

Sasseur Real Estate Investment Trust is not a large company by global standards. It has a market capitalization of S$1.1b, which means it wouldn’t have the attention of many institutional investors. In the chart below, we can see that institutions own shares in the company. Let’s take a closer look to see what the different types of shareholder can tell us about Sasseur Real Estate Investment Trust.

See our latest analysis for Sasseur Real Estate Investment Trust

SGX:CRPU Ownership Summary, January 5th 2020
SGX:CRPU Ownership Summary, January 5th 2020

What Does The Institutional Ownership Tell Us About Sasseur Real Estate Investment Trust?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

Sasseur Real Estate Investment Trust already has institutions on the share registry. Indeed, they own 15% of the company. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It’s therefore worth looking at Sasseur Real Estate Investment Trust’s earnings history, below. Of course, the future is what really matters.

SGX:CRPU Income Statement, January 5th 2020
SGX:CRPU Income Statement, January 5th 2020

Sasseur Real Estate Investment Trust is not owned by hedge funds. Sasseur Cayman Holding Ltd. is currently the largest shareholder, with 58% of shares outstanding. With such a huge stake in the ownership, we infer that they have significant control of the future of the company. The second largest shareholder with 6.5%, is Meritz Securities Co., Ltd., Asset Management Arm, followed by Meritz Fire & Marine Insurance Co., Ltd., Asset Management Arm, with an ownership of 4.4%.

While studying institutional ownership for a company can add value to your research, it is also a good practice to research analyst recommendations to get a deeper understand of a stock’s expected performance. There are plenty of analysts covering the stock, so it might be worth seeing what they are forecasting, too.

Insider Ownership Of Sasseur Real Estate Investment Trust

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board; and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board, themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own less than 1% of Sasseur Real Estate Investment Trust. But they may have an indirect interest through a corporate structure that we haven’t picked up on. It appears that the board holds about S$4.2m worth of stock. This compares to a market capitalization of S$1.1b. Ownership is clearly an important issue when it comes to investment selection. But ultimately, many risks exist within the business itself, rather than its shareholders. For example, we’ve discovered 3 warning signs for Sasseur Real Estate Investment Trust (of which 1 is major) which any shareholder or potential investor should be aware of.

General Public Ownership

With a 25% ownership, the general public have some degree of sway over CRPU. This size of ownership, while considerable, may not be enough to change company policy if the decision is not in sync with other large shareholders.

Private Company Ownership

It seems that Private Companies own 60%, of the CRPU stock. It might be worth looking deeper into this. If related parties, such as insiders, have an interest in one of these private companies, that should be disclosed in the annual report. Private companies may also have a strategic interest in the company.

Next Steps:

While it is well worth considering the different groups that own a company, there are other factors that are even more important.

I always like to check for a history of revenue growth. You can too, by accessing this free chart of historic revenue and earnings in this detailed graph.

But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.