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Hotel Property Investments

ASX:HPI
Snowflake Description

Proven track record and fair value.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
HPI
ASX
A$515M
Market Cap
  1. Home
  2. AU
  3. Real Estate
Company description

HPI owns a Portfolio of freehold pubs and associated specialty tenancies located throughout Queensland and South Australia. The last earnings update was 125 days ago. More info.


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HPI Share Price and Events
7 Day Returns
8.3%
ASX:HPI
2.9%
AU REITs
2.1%
AU Market
1 Year Returns
9.9%
ASX:HPI
19.2%
AU REITs
5.6%
AU Market
HPI Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Hotel Property Investments (HPI) 8.3% 3.1% 11.3% 9.9% 17% 80.7%
AU REITs 2.9% 3.7% 6.1% 19.2% 20.1% 67.5%
AU Market 2.1% 3.3% 8.4% 5.6% 27.8% 15.1%
1 Year Return vs Industry and Market
  • HPI underperformed the REITs industry which returned 19.2% over the past year.
  • HPI outperformed the Market in Australia which returned 5.6% over the past year.
Price Volatility
HPI
Industry
5yr Volatility vs Market

Value

 Is Hotel Property Investments 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 Hotel Property Investments 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 Hotel Property Investments.

ASX:HPI 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 5 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:HPI
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 0.49
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.494 (1 + (1- 30%) (51.32%))
0.779
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:HPI using 2 Stage Free Cash Flow to Equity using Adjusted Funds From Operations Model

The calculations below outline how an intrinsic value for Hotel Property Investments is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Hotel Property Investments is a Real Estate Investment Trust (REIT), we use funds from operations (FFO) or adjusted funds from operations (AFFO) instead of levered free cash flow for REITs. This excludes depreciation and borrowing. Ideally analysts estimates of AFFO are used, where these aren't available we use FFO.

ASX:HPI DCF 1st Stage: Next 10 year cash flow forecast
Adjusted Funds From Operations (AFFO) (AUD, Millions) Source Present Value
Discounted (@ 7.08%)
2019 29.00 Analyst x1 27.08
2020 31.00 Analyst x1 27.04
2021 32.00 Analyst x1 26.06
2022 34.00 Analyst x1 25.86
2023 35.44 Est @ 4.25% 25.18
2024 36.74 Est @ 3.67% 24.37
2025 37.94 Est @ 3.26% 23.51
2026 39.07 Est @ 2.98% 22.60
2027 40.16 Est @ 2.78% 21.70
2028 41.22 Est @ 2.64% 20.80
Present value of next 10 years cash flows A$244.20
ASX:HPI DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= A$41.22 × (1 + 2.31%) ÷ (7.08% – 2.31%)
A$884.42
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= A$884.42 ÷ (1 + 7.08%)10
A$446.25
ASX:HPI Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= A$244.20 + A$446.25
A$690.44
Equity Value per Share
(AUD)
= Total value / Shares Outstanding
= A$690.44 / 145.94
A$4.73
ASX:HPI Discount to Share Price
Calculation Result
Value per share (AUD) From above. A$4.73
Current discount Discount to share price of A$3.65
= -1 x (A$3.65 - A$4.73) / A$4.73
22.8%

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

Current Discount
Amount off the current price Hotel Property Investments is available for.
Intrinsic value
23%
Share price is A$3.65 vs Future cash flow value of A$4.73
Current Discount Checks
For Hotel Property Investments to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Hotel Property Investments's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Hotel Property Investments's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 Hotel Property Investments's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Hotel Property Investments's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
ASX:HPI PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-12-31) in AUD A$0.36
ASX:HPI Share Price ** ASX (2019-06-25) in AUD A$3.65
Australia REITs Industry PE Ratio Median Figure of 38 Publicly-Listed REITs Companies 12.28x
Australia Market PE Ratio Median Figure of 546 Publicly-Listed Companies 16.07x

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

** Primary Listing of Hotel Property Investments.

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

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

= 3.65 ÷ 0.36

10.23x

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

  • Hotel Property Investments is good value based on earnings compared to the AU REITs industry average.
  • Hotel Property Investments is good value based on earnings compared to the Australia market.
Price based on expected Growth
Does Hotel Property Investments's expected growth come at a high price?
Raw Data
ASX:HPI PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 10.23x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts
-8.6%per year
Australia REITs Industry PEG Ratio Median Figure of 32 Publicly-Listed REITs Companies 1.08x
Australia Market PEG Ratio Median Figure of 360 Publicly-Listed Companies 1.38x

*Line of best fit is calculated by linear regression .

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

= PE Ratio ÷ Net Income Annual Growth Rate

= 10.23x ÷ -8.6%

-1.19x

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

  • Hotel Property Investments earnings are not expected to grow next year, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Hotel Property Investments's assets?
Raw Data
ASX:HPI PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-12-31) in AUD A$2.83
ASX:HPI Share Price * ASX (2019-06-25) in AUD A$3.65
Australia REITs Industry PB Ratio Median Figure of 42 Publicly-Listed REITs Companies 1.15x
Australia Market PB Ratio Median Figure of 1,689 Publicly-Listed Companies 1.64x
ASX:HPI PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 3.65 ÷ 2.83

1.29x

* Primary Listing of Hotel Property Investments.

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

  • Hotel Property Investments is overvalued based on assets compared to the AU REITs industry average.
X
Value checks
We assess Hotel Property Investments'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. Hotel Property Investments has a total score of 3/6, 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 Hotel Property Investments expected to perform in the next 1 to 3 years based on estimates from 5 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
-8.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Hotel Property Investments expected to grow at an attractive rate?
  • Hotel Property Investments's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 2.3%.
Growth vs Market Checks
  • Hotel Property Investments's earnings are expected to decrease over the next 1-3 years, this is below the Australia market average.
  • Hotel Property Investments's revenue growth is expected to exceed the Australia market average.
Annual Growth Rates Comparison
Raw Data
ASX:HPI Future Growth Rates Data Sources
Data Point Source Value (per year)
ASX:HPI Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 5 Analysts -8.6%
ASX:HPI Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 5 Analysts 3.7%
Australia REITs Industry Earnings Growth Rate Market Cap Weighted Average -3.6%
Australia REITs Industry Revenue Growth Rate Market Cap Weighted Average 0.2%
Australia Market Earnings Growth Rate Market Cap Weighted Average 6.9%
Australia Market Revenue Growth Rate Market Cap Weighted Average 3.4%

*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:HPI Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below
All numbers in AUD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
ASX:HPI Future Estimates Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 55 34 33 1
2021-06-30 51 32 31 4
2020-06-30 50 31 30 5
2019-06-30 47 29 32 5
ASX:HPI Past Financials Data
Date (Data in AUD Millions) Revenue Cash Flow Net Income *
2018-12-31 50 39 52
2018-09-30 50 41 50
2018-06-30 50 42 48
2018-03-31 50 41 47
2017-12-31 49 39 45
2017-09-30 49 39 72
2017-06-30 49 39 99
2017-03-31 49 41 100
2016-12-31 48 43 101
2016-09-30 48 40 81
2016-06-30 48 37 60
2016-03-31 47 32 59

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Hotel Property Investments's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.
  • Hotel Property Investments's revenue is expected to grow by 3.7% 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:HPI Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (5 months ago) See Below
Future Estimates Average of up to 5 Analyst Estimates (S&P Global) See Below

All data from Hotel Property Investments Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:HPI Future Estimates Data
Date (Data in AUD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30 0.23 0.23 0.23 1.00
2021-06-30 0.21 0.22 0.21 2.00
2020-06-30 0.21 0.21 0.20 3.00
2019-06-30 0.22 0.24 0.20 2.00
ASX:HPI Past Financials Data
Date (Data in AUD Millions) EPS *
2018-12-31 0.36
2018-09-30 0.34
2018-06-30 0.33
2018-03-31 0.32
2017-12-31 0.31
2017-09-30 0.49
2017-06-30 0.68
2017-03-31 0.68
2016-12-31 0.69
2016-09-30 0.55
2016-06-30 0.41
2016-03-31 0.41

*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.
  • Hotel Property Investments is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Hotel Property Investments'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.
Hotel Property Investments 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 Hotel Property Investments 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 Hotel Property Investments'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.
  • Hotel Property Investments's year on year earnings growth rate has been positive over the past 5 years, however the most recent earnings are below average.
  • Hotel Property Investments's 1-year earnings growth exceeds its 5-year average (15.3% vs 5.8%)
  • Hotel Property Investments's earnings growth has exceeded the AU REITs industry average in the past year (15.3% vs -11.2%).
Earnings and Revenue History
Hotel Property Investments'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 Hotel Property Investments Company Filings, last reported 5 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

ASX:HPI Past Revenue, Cash Flow and Net Income Data
Date (Data in AUD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-12-31 49.78 52.05
2018-09-30 50.01 50.22
2018-06-30 50.25 48.39
2018-03-31 49.83 46.77
2017-12-31 49.40 45.16
2017-09-30 49.06 72.03
2017-06-30 48.73 98.90
2017-03-31 48.57 100.01
2016-12-31 48.42 101.13
2016-09-30 48.15 80.63
2016-06-30 47.87 60.13
2016-03-31 47.41 59.24
2015-12-31 46.95 58.35
2015-09-30 45.91 46.89
2015-06-30 44.88 35.44
2015-03-31 43.79 31.75
2014-12-31 42.70 28.07
2014-09-30 49.24 43.68
2014-06-30 55.79 59.30
2014-03-31 63.99 57.51
2013-12-31 72.19 55.72
2013-09-30 72.72 47.49
2013-06-30 73.25 39.26

*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.
  • Hotel Property Investments has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Hotel Property Investments used its assets more efficiently than the AU REITs industry average last year based on Return on Assets.
  • Hotel Property Investments's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Hotel Property Investments'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.
Hotel Property Investments has a total score of 4/6, 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 Hotel Property Investments'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 Hotel Property Investments's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Hotel Property Investments's short term (1 year) commitments are greater than its holdings of cash and other short term assets.
  • Hotel Property Investments's long term commitments exceed its cash and other short term assets.
Balance sheet
This treemap shows a more detailed breakdown of Hotel Property Investments'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 0x 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 Hotel Property Investments Company Filings, last reported 5 months ago.

ASX:HPI Past Debt and Equity Data
Date (Data in AUD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-12-31 413.51 264.37 1.29
2018-09-30 413.51 264.37 1.29
2018-06-30 406.73 275.64 1.24
2018-03-31 406.73 275.64 1.24
2017-12-31 390.09 255.89 1.13
2017-09-30 390.09 255.89 1.13
2017-06-30 387.20 255.97 1.14
2017-03-31 387.20 255.97 1.14
2016-12-31 373.45 243.27 6.25
2016-09-30 373.45 243.27 6.25
2016-06-30 333.41 249.95 2.27
2016-03-31 333.41 249.95 2.27
2015-12-31 318.46 249.48 2.04
2015-09-30 318.46 249.48 2.04
2015-06-30 301.96 253.25 4.56
2015-03-31 301.96 253.25 4.56
2014-12-31 286.08 236.00 2.65
2014-09-30 286.08 236.00 2.65
2014-06-30 260.96 226.34 3.34
2014-03-31 260.96 226.34 3.34
2013-12-31 252.85 231.07 3.14
2013-09-30 252.85 231.07 3.14
2013-06-30 388.09 413.51 15.75
  • Hotel Property Investments's level of debt (63.9%) 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 (91.3% vs 63.9% today).
  • Debt is not well covered by operating cash flow (14.9%, less than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.1x coverage).
X
Financial health checks
We assess Hotel Property Investments'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. Hotel Property Investments 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 Hotel Property Investments'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
5.53%
Current annual income from Hotel Property Investments dividends. Estimated to be 5.6% next year.
If you bought A$2,000 of Hotel Property Investments shares you are expected to receive A$111 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?
  • Hotel Property Investments's pays a higher dividend yield than the bottom 25% of dividend payers in Australia (2.61%).
  • Hotel Property Investments's dividend is below the markets top 25% of dividend payers in Australia (5.83%).
Upcoming dividend payment

Purchase Hotel Property Investments before the 'Buy Limit' to receive their next dividend payment.

Dividends are usually paid every 3 or 6 months, you can time your share purchase to take advantage of upcoming dividend payments.
Dividend payment calendar
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:HPI 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 5 Analyst Estimates (S&P Global) See Below
Australia REITs Industry Average Dividend Yield Market Cap Weighted Average of 40 Stocks 4.3%
Australia Market Average Dividend Yield Market Cap Weighted Average of 416 Stocks 4%
Australia Minimum Threshold Dividend Yield 10th Percentile 1.6%
Australia Bottom 25% Dividend Yield 25th Percentile 2.6%
Australia Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

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

ASX:HPI Future Dividends Estimate Data
Date (Data in A$) Dividend per Share (annual) Avg. No. Analysts
2022-06-30 0.22 1.00
2021-06-30 0.21 4.00
2020-06-30 0.20 5.00
2019-06-30 0.20 5.00
ASX:HPI Past Annualized Dividends Data
Date (Data in A$) Dividend per share (annual) Avg. Yield (%)
2019-06-19 0.202 5.836
2018-12-19 0.196 5.997
2018-06-20 0.196 6.213
2018-02-21 0.196 6.278
2017-12-19 0.197 6.188
2017-08-23 0.198 6.241
2016-12-22 0.194 6.637
2016-06-15 0.186 6.306
2016-02-24 0.180 6.516
2015-06-25 0.168 6.501
2014-12-22 0.158 5.978
2014-09-05 0.088 3.688
2014-02-26 0.000 0.000

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

  • Whilst dividend payments have been stable, Hotel Property Investments has been paying a dividend for less than 10 years.
  • Dividend payments have increased, but Hotel Property Investments only paid a dividend in the past 5 years.
Current Payout to shareholders
What portion of Hotel Property Investments's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.4x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be covered by earnings (1x coverage).
X
Income/ dividend checks
We assess Hotel Property Investments'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 Hotel Property Investments afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Hotel Property Investments has a total score of 3/6, 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 Hotel Property Investments'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
Don Smith
TENURE AS CEO 0.7 years
CEO Bio

Mr. Donald Smith, also known as Don, has been Managing Director & Chief Executive Officer at Hotel Property Investments since October 1, 2018. Mr. Smith has been a Director at Hotel Property Investments since November 21, 2018. He has more than 20 years’ property and funds management experience with listed and unlisted companies. Most recently, Mr. Smith has been a member of the management team at OSK Property and prior to that held a range of roles at Vicinity Centres and Colonial First State. Mr. Smith is also a Board Member and Chairman of Melbourne Athenaeum Incorporated, a not for profit cultural institution. He holds a Bachelor of Applied Science – Planning and a Graduate Diploma - Banking and Finance. He has also completed the Australian Institute of Company Directors Chairman’s Course.

CEO Compensation
  • Insufficient data for Don to compare compensation growth.
  • Insufficient data for Don to establish whether their remuneration is reasonable compared to companies of similar size in Australia.
Management Team

Blair Strik

TITLE
Company Secretary & CFO
COMPENSATION
A$289K
TENURE
2.2 yrs

Don Smith

TITLE
CEO, MD & Director
TENURE
0.7 yrs
Board of Directors Tenure

Average tenure and age of the Hotel Property Investments board of directors in years:

5.6
Average Tenure
61
Average Age
  • The tenure for the Hotel Property Investments board of directors is about average.
Board of Directors

Mike Tilley

TITLE
Independent Non-Executive Chairman
AGE
64
TENURE
5.6 yrs

Don Smith

TITLE
CEO, MD & Director
TENURE
0.6 yrs

Ray Gunston

TITLE
Independent Non-Executive Director
COMPENSATION
A$104K
AGE
61
TENURE
5.6 yrs

John Russell

TITLE
Independent Non-Executive Director
COMPENSATION
A$81K
TENURE
6.1 yrs

Lachlan Edwards

TITLE
Independent Non-Executive Director
COMPENSATION
A$93K
AGE
51
TENURE
5.6 yrs

Giselle Collins

TITLE
Independent Non-Executive Director
COMPENSATION
A$93K
TENURE
2.2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (A$) Value (A$)
20. Mar 19 Sell Investors Mutual Limited Company 01. Sep 17 18. Mar 19 -1,884,958 A$3.03 A$-5,717,948
07. Mar 19 Buy Realindex Investments Pty Limited Company 08. Nov 18 28. Nov 18 118,239 A$3.05 A$360,578
07. Mar 19 Buy Colonial First State Asset Management (Australia) Limited Company 15. Nov 18 06. Mar 19 1,094,208 A$3.16 A$3,434,369
17. Oct 18 Buy Donald Smith Individual 17. Oct 18 17. Oct 18 10,000 A$3.07 A$30,727
29. Jun 18 Sell Yarra Funds Management Limited Company 14. Jan 17 27. Jun 18 -1,414,645 A$3.17 A$-4,478,427
29. Jun 18 Buy Yarra Funds Management Limited Company 14. Jan 17 27. Jun 18 570,840 A$3.28 A$1,873,853
X
Management checks
We assess Hotel Property Investments'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. Hotel Property Investments 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

Should Hotel Property Investments (ASX:HPI) Be Disappointed With Their 71% Profit?

For example, the Hotel Property Investments (ASX:HPI) share price is up 71% in the last 5 years, clearly besting than the market return of around 13% (ignoring dividends). … Hotel Property Investments's earnings per share are down 3.3% per year, despite strong share price performance over five years. … In the case of Hotel Property Investments, it has a TSR of 148% for the last 5 years.

Simply Wall St -

A Note On Hotel Property Investments's (ASX:HPI) ROE and Debt To Equity

Our data shows Hotel Property Investments has a return on equity of 13% for the last year. … The formula for return on equity is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Hotel Property Investments: 13% = AU$52m ÷ AU$414m (Based on the trailing twelve months to December 2018.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Hotel Property Investments's Debt And Its 13% ROE Hotel Property Investments has a debt to equity ratio of 0.64, which is far from excessive.

Simply Wall St -

Should You Buy Hotel Property Investments (ASX:HPI) For Its Dividend?

Is Hotel Property Investments (ASX:HPI) a good dividend stock? … With a goodly-sized dividend yield despite a relatively short payment history, investors might be wondering if Hotel Property Investments is a new dividend aristocrat in the making. … There are a few simple ways to reduce the risks of buying Hotel Property Investments for its dividend, and we'll go through these below.

Simply Wall St -

You May Have Been Looking At Hotel Property Investments (ASX:HPI) All Wrong

Hotel Property Investments is a AU$492m. … REIT shares give you ownership of the company than owns and manages various income-producing property, whether it be commercial, industrial or residential. … 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 -

A Spotlight On Hotel Property Investments's (ASX:HPI) Fundamentals

As an investor, I look for investments which does not compromise one fundamental factor for another. … By this I mean, I look at stocks holistically, from their financial health to their future outlook. … In the case of Hotel Property Investments (ASX:HPI), it

Simply Wall St -

The Hotel Property Investments Share Price Is Up 58% And Shareholders Are Holding On

For example, long term Hotel Property Investments (ASX:HPI) shareholders have enjoyed a 58% share price rise over the last half decade, well in excess of the market return of around 35%. … By comparing earnings per share (EPS) and and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … Over half a decade, Hotel Property Investments managed to grow its earnings per share at 3.8% a year.

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Is Hotel Property Investments's (ASX:HPI) 12% Better Than Average?

With that in mind, this article will work through how we can use Return On Equity (ROE) to better understand a business. … To keep the lesson grounded in practicality, we'll use ROE to better understand Hotel Property Investments (ASX:HPI). … That means that for every A$1 worth of shareholders' equity, it generated A$0.12 in profit.

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Why You Shouldn't Look At Hotel Property Investments's (ASX:HPI) Bottom Line

Hotel Property Investments is a AU$450m. … REITs own and operate income-generating property and adhere to a different set of regulations. … 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

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How Many Insiders Bought Hotel Property Investments (ASX:HPI) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Hotel Property Investments (ASX:HPI). … Hotel Property Investments Insider Transactions Over The Last Year. … In the last twelve months there was more buying than selling by Hotel Property Investments insiders

Simply Wall St -

What Kind Of Investor Owns Most Of Hotel Property Investments (ASX:HPI)?

If you want to know who really controls Hotel Property Investments (ASX:HPI), then you'll have to look at the makeup of its share registry. … Hotel Property Investments is not a large company by global standards. … institutions are noticeable on the share registry.

Simply Wall St -

Company Info

Description

HPI owns a Portfolio of freehold pubs and associated specialty tenancies located throughout Queensland and South Australia. The pubs are leased to the Coles group ("Coles") and to Australian Leisure & Hospitality ("ALH"), a joint venture 75% owned by the Woolworths group. HPI’s objective is to maximise the long term income and capital returns from its investments for the benefit of its Securityholders. Approximately 95% of the income is earned from the hotel leases to Coles and ALH. The majority of the Leases to Coles are on similar terms. Coles provide approximately 95% of HPI’s rental income. The remaining rental income is derived from Speciality Tenants leasing the On-site Specialty Stores. Specialty Tenants include a mix of franchisors and franchisees including 7-Eleven, Nightowl, Nando’s, Subway, Noodle Box and The Good Guys. The Responsible Entity of the Trust is Hotel Property Investments Limited.

Details
Name: Hotel Property Investments
HPI
Exchange: ASX
Founded:
A$515,179,058
145,943,076
Website: http://www.hpitrust.com.au
Address: Hotel Property Investments
IBM Centre,
Suite 2, Level 17,
Melbourne,
Victoria, 3006,
Australia
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
ASX HPI Stapled Securities Australian Securities Exchange AU AUD 10. Dec 2013
Number of employees
Current staff
Staff numbers
0
Hotel Property Investments employees.
Industry
Specialized REITs
Real Estate
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/25 10:38
End of day share price update: 2019/06/25 00:00
Last estimates confirmation: 2019/06/24
Last earnings filing: 2019/02/20
Last earnings reported: 2018/12/31
Last annual earnings reported: 2018/06/30


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.