SEHK:1426

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Spring Real Estate Investment Trust

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

1426IndustryMarket
7 Day2.0%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 Year2.0%-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

Valuation

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

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

NamePositionTenureCompensationOwnership
Kwok Hoe Leung
Head of Finance & Accounting and Executive Director of Spring Asset Management Limited3.25yrsno data0.052% CN¥1.9m
Nobumasa Saeki
Executive Director & Head of Asset Management - Spring Asset Management Limited7.17yrsno data0.027% CN¥1.0m
Simon Murray
Independent Non-Executive Director - Spring Asset Management Limited6.58yrsCN¥414.00k0.042% CN¥1.5m
Liping Qiu
Independent Non-Executive Director - Spring Asset Management Limited6.58yrsCN¥414.00k0.042% CN¥1.5m
Toshihiro Toyoshima
Chairman of the Board - Spring Asset Management Limited7.42yrsno data0.076% CN¥2.8m
Hideya Ishino
Non-Executive Director of Spring Asset Management Limited7.17yrsno data0.0069% CN¥250.9k
Yiu Kin Lam
Independent Non-Executive Director - Spring Asset Management Limited5.42yrsCN¥450.00k0.042% 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1426SEHK (The Stock Exchange of Hong Kong Ltd.)YesUnitsHKHKDDec 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/06/06 13:46
End of Day Share Price2020/06/05 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.