Spring Real Estate Investment Trust
Market Cap
HK$3.7b
Last Updated
2020/06/06 13:46 UTC
Data Sources
Company Financials
Executive Summary
Spring Real Estate Investment Trust (“Spring REIT”, stock code: 1426) is a real estate investment trust which invests in high quality income-producing real estate.
Snowflake Analysis
Acceptable track record second-rate dividend payer.
Share Price & News
How has Spring Real Estate Investment Trust's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: 1426 has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
2.0%
1426
11.2%
HK REITs
5.8%
HK Market
1 Year Return
-25.3%
1426
-33.9%
HK REITs
-4.0%
HK Market
Return vs Industry: 1426 exceeded the Hong Kong REITs industry which returned -33.9% over the past year.
Return vs Market: 1426 underperformed the Hong Kong Market which returned -4% over the past year.
Shareholder returns
| 1426 | Industry | Market | |
|---|---|---|---|
| 7 Day | 2.0% | 11.2% | 5.8% |
| 30 Day | -1.2% | -4.4% | 4.0% |
| 90 Day | -12.2% | -14.7% | -2.6% |
| 1 Year | -20.1%-25.3% | -30.9%-33.9% | -0.6%-4.0% |
| 3 Year | -11.3%-26.4% | 2.8%-10.4% | 1.3%-9.2% |
| 5 Year | 2.0%-27.2% | 40.0%9.2% | -9.2%-23.5% |
Price Volatility Vs. Market
How volatile is Spring Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 year ago | Simply Wall St
Who Are The Major Shareholders In Spring Real Estate Investment Trust (HKG:1426)?2 years ago | Simply Wall St
HKC (Holdings) And Other Top Discounted Real Estate Stocks2 years ago | Simply Wall St
HKC (Holdings) And Other Top Discounted Real Estate StocksValuation
Is Spring Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?
46.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: 1426 (HK$2.51) is trading below our estimate of fair value (HK$4.71)
Significantly Below Fair Value: 1426 is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: 1426 is poor value based on its PE Ratio (13.2x) compared to the REITs industry average (11.4x).
PE vs Market: 1426 is poor value based on its PE Ratio (13.2x) compared to the Hong Kong market (9.5x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate 1426's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: 1426 is overvalued based on its PB Ratio (0.5x) compared to the HK REITs industry average (0.4x).
Next Steps
Future Growth
How is Spring Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?
61.1%
Forecasted Real Estate industry annual growth in earnings
In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as Spring Real Estate Investment Trust has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.
This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.
Next Steps
- Take a look at our analysis of 1426’s management and see if the CEO’s compensation is within a reasonable range, who is on the board and if insiders have been trading lately.
- Spring Real Estate Investment Trust competitive advantages and company strategy can generally be found in its financial reports archived here.
- Explore growth companies in the Real Estate industry.
Past Performance
How has Spring Real Estate Investment Trust performed over the past 5 years?
-24.4%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: 1426 has a large one-off gain of CN¥70.9M impacting its December 31 2019 financial results.
Growing Profit Margin: 1426's current net profit margins (40.8%) are higher than last year (5.4%).
Past Earnings Growth Analysis
Earnings Trend: 1426's earnings have declined by -24.4% per year over the past 5 years.
Accelerating Growth: 1426's earnings growth over the past year (643.8%) exceeds its 5-year average (-24.4% per year).
Earnings vs Industry: 1426 earnings growth over the past year (643.8%) exceeded the REITs industry -44.2%.
Return on Equity
High ROE: 1426's Return on Equity (3.5%) is considered low.
Next Steps
Financial Health
How is Spring Real Estate Investment Trust's financial position?
Financial Position Analysis
Short Term Liabilities: 1426's short term assets (CN¥539.8M) exceed its short term liabilities (CN¥140.4M).
Long Term Liabilities: 1426's short term assets (CN¥539.8M) do not cover its long term liabilities (CN¥3.8B).
Debt to Equity History and Analysis
Debt Level: 1426's debt to equity ratio (57.5%) is considered high.
Reducing Debt: 1426's debt to equity ratio has increased from 51.5% to 57.5% over the past 5 years.
Debt Coverage: 1426's debt is not well covered by operating cash flow (10.1%).
Interest Coverage: 1426's interest payments on its debt are not well covered by EBIT (2.3x coverage).
Balance Sheet
Next Steps
Dividend
What is Spring Real Estate Investment Trust's current dividend yield, its reliability and sustainability?
7.50%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: 1426's dividend (7.5%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.43%).
High Dividend: 1426's dividend (7.5%) is in the top 25% of dividend payers in the Hong Kong market (7.03%)
Stability and Growth of Payments
Stable Dividend: Whilst dividend payments have been stable, 1426 has been paying a dividend for less than 10 years.
Growing Dividend: 1426's dividend payments have increased, but the company has only paid a dividend for 6 years.
Current Payout to Shareholders
Dividend Coverage: With its reasonable payout ratio (51.9%), 1426's dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
6.6yrs
Average board tenure
CEO
Spring Real Estate Investment Trust has no CEO, or we have no data on them.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Head of Finance & Accounting and Executive Director of Spring Asset Management Limited | 3.25yrs | no data | 0.052% CN¥1.9m | |
| Executive Director & Head of Asset Management - Spring Asset Management Limited | 7.17yrs | no data | 0.027% CN¥1.0m | |
| Independent Non-Executive Director - Spring Asset Management Limited | 6.58yrs | CN¥414.00k | 0.042% CN¥1.5m | |
| Independent Non-Executive Director - Spring Asset Management Limited | 6.58yrs | CN¥414.00k | 0.042% CN¥1.5m | |
| Chairman of the Board - Spring Asset Management Limited | 7.42yrs | no data | 0.076% CN¥2.8m | |
| Non-Executive Director of Spring Asset Management Limited | 7.17yrs | no data | 0.0069% CN¥250.9k | |
| Independent Non-Executive Director - Spring Asset Management Limited | 5.42yrs | CN¥450.00k | 0.042% CN¥1.5m |
6.6yrs
Average Tenure
57yo
Average Age
Experienced Board: 1426's board of directors are considered experienced (6.6 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: 1426 insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.8%.
Top Shareholders
Company Information
Spring Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources
Key Information
- Name: Spring Real Estate Investment Trust
- Ticker: 1426
- Exchange: SEHK
- Founded:
- Industry: Office REITs
- Sector: Real Estate
- Market Cap: HK$3.652b
- Shares outstanding: 1.45b
- Website: https://www.springreit.com
Location
- Spring Real Estate Investment Trust
- Man Yee Building
- 28th Floor
- Central
- Hong Kong
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| 1426 | SEHK (The Stock Exchange of Hong Kong Ltd.) | Yes | Units | HK | HKD | Dec 2013 |
Biography
Spring Real Estate Investment Trust (“Spring REIT”, stock code: 1426) is a real estate investment trust which invests in high quality income-producing real estate. Listed on 5 December 2013 on the Hong Kong Stock Exchange, Spring REIT offers direct exposure to two Premium Grade office buildings strategically located in the Central Business District of Beijing and 84 separate commercial properties in the United Kingdom. Spring REIT seeks to offer to Unitholders stable distributions and the potential for sustainable long-term growth through investing in a diversified portfolio of income-producing real estate around the world.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/06/06 13:46 |
| End of Day Share Price | 2020/06/05 00:00 |
| Earnings | 2019/12/31 |
| Annual Earnings | 2019/12/31 |
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.