HPI owns a Portfolio of freehold hotels and associated specialty tenancies located throughout Queensland and South Australia.
Undervalued average dividend payer.
Share Price & News
How has Hotel Property Investments's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: HPI's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: HPI matched the Australian REITs industry which returned -34.6% over the past year.
Return vs Market: HPI underperformed the Australian Market which returned -18.8% over the past year.
Price Volatility Vs. Market
How volatile is Hotel Property Investments's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is Hotel Property Investments undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: HPI (A$2.2) is trading below our estimate of fair value (A$5.05)
Significantly Below Fair Value: HPI is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: HPI is good value based on its PE Ratio (6.6x) compared to the REITs industry average (9.1x).
PE vs Market: HPI is good value based on its PE Ratio (6.6x) compared to the Australian market (12.9x).
Price to Earnings Growth Ratio
PEG Ratio: HPI is poor value based on its PEG Ratio (1.5x)
Price to Book Ratio
PB vs Industry: HPI is good value based on its PB Ratio (0.7x) compared to the AU REITs industry average (0.8x).
How is Hotel Property Investments forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: HPI's forecast earnings growth (4.4% per year) is above the savings rate (1.1%).
Earnings vs Market: HPI's earnings (4.4% per year) are forecast to grow slower than the Australian market (9.7% per year).
High Growth Earnings: HPI's earnings are forecast to grow, but not significantly.
Revenue vs Market: HPI's revenue (4.3% per year) is forecast to grow faster than the Australian market (4% per year).
High Growth Revenue: HPI's revenue (4.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: HPI's Return on Equity is forecast to be low in 3 years time (6.3%).
How has Hotel Property Investments performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: HPI has a large one-off gain of A$18.7M impacting its December 31 2019 financial results.
Growing Profit Margin: HPI's current net profit margins (90.7%) are lower than last year .
Past Earnings Growth Analysis
Earnings Trend: HPI's earnings have grown by 1.1% per year over the past 5 years.
Accelerating Growth: HPI's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: HPI had negative earnings growth (-6.9%) over the past year, making it difficult to compare to the REITs industry average (1.7%).
Return on Equity
High ROE: HPI's Return on Equity (11.2%) is considered low.
How is Hotel Property Investments's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Inventory Level: HPI has a high level of physical assets or inventory.
Debt Coverage by Assets: HPI's debt is not covered by short term assets (assets are 0x debt).
Financial Institutions Analysis
Asset Level: HPI's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if HPI has a sufficient allowance for bad loans.
Low Risk Liabilities: HPI reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if HPI has an acceptable proportion of non-loan assets held.
Low Risk Deposits: HPI has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if HPI has an appropriate level of bad loans.
What is Hotel Property Investments's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: HPI's dividend (9.41%) is higher than the bottom 25% of dividend payers in the Australian market (3.22%).
High Dividend: HPI's dividend (9.41%) is in the top 25% of dividend payers in the Australian market (8.38%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, HPI has been paying a dividend for less than 10 years.
Growing Dividend: HPI's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonably low payout ratio (39.6%), HPI's dividend payments are well covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: HPI's dividends in 3 years are forecast to be thoroughly covered by earnings (0.6% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average board tenure
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 si ...
CEO Compensation Analysis
Compensation vs Market: Don's total compensation ($USD266.82K) is below average for companies of similar size in the Australian market ($USD620.94K).
Compensation vs Earnings: Insufficient data to compare Don's compensation with company performance.
|CEO, MD & Director||1.42yrs||AU$433.19k||0.014% A$43.2k|
|Independent Non-Executive Chairman||0.25yr||AU$93.08k||0.036% A$111.8k|
|Independent Non-Executive Director||6.25yrs||AU$104.03k||0.080% A$248.9k|
|Independent Non-Executive Director||6.25yrs||AU$95.81k||0.11% A$341.6k|
|Independent Non-Executive Director||2.83yrs||AU$95.81k||0.015% A$47.5k|
Experienced Board: HPI's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: HPI insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Hotel Property Investments's company bio, employee growth, exchange listings and data sources
- Name: Hotel Property Investments
- Ticker: HPI
- Exchange: CHIA
- Industry: Specialized REITs
- Sector: Real Estate
- Market Cap: AU$310.529m
- Shares outstanding: 156.83m
- Website: https://www.hpitrust.com.au
- Hotel Property Investments
- IBM Centre
- Suite 2, Level 17
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|HPI||ASX (Australian Securities Exchange)||Yes||Stapled Securities||AU||AUD||Dec 2013|
|HPI||CHIA (Chi-X Australia)||Yes||Stapled Securities||AU||AUD||Dec 2013|
|HTPI.F||OTCPK (Pink Sheets LLC)||Yes||Stapled Securities||US||USD||Dec 2013|
HPI owns a Portfolio of freehold hotels and associated specialty tenancies located throughout Queensland and South Australia. The pubs are leased to the Queensland Venue Company (“QVC”), a joint venture between Coles group and Australian Venue Company, 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 93% of the income is earned from the pubs leased to QVC and ALH. 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, The Good Guys and Quest Apartments. The Responsible Entity of the Trust is Hotel Property Investments Limited.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/03/31 10:44|
|End of Day Share Price||2020/03/31 00:00|
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.