SEHK:1881

Stock Analysis Report

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Regal Real Estate Investment Trust

Executive Summary

Regal REIT is a Hong Kong collective investment scheme authorised under section 104 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and its Units were listed on The Stock Exchange of Hong Kong Limited on 30th March, 2007.


Snowflake Analysis

Second-rate dividend payer with moderate growth potential.

Share Price & News

How has Regal Real Estate Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 1881's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

1881

2.9%

HK REITs

2.0%

HK Market


1 Year Return

-47.7%

1881

-33.9%

HK REITs

6.0%

HK Market

Return vs Industry: 1881 underperformed the Hong Kong REITs industry which returned -33.3% over the past year.

Return vs Market: 1881 underperformed the Hong Kong Market which returned 3.1% over the past year.


Shareholder returns

1881IndustryMarket
7 Day0%2.9%2.0%
30 Day-11.1%-6.1%1.0%
90 Day-20.6%-10.5%9.4%
1 Year-43.6%-47.7%-30.6%-33.9%10.4%6.0%
3 Year-44.2%-54.3%-7.1%-19.4%0.8%-10.1%
5 Year-27.0%-48.4%33.3%4.0%10.8%-7.8%

Price Volatility Vs. Market

How volatile is Regal Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Regal Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

0.25x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate 1881's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate 1881's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: 1881 is unprofitable, so we can't compare its PE Ratio to the HK REITs industry average.

PE vs Market: 1881 is unprofitable, so we can't compare its PE Ratio to the Hong Kong market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 1881's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 1881 is good value based on its PB Ratio (0.2x) compared to the HK REITs industry average (0.4x).


Next Steps

Future Growth

How is Regal Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

129.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 1881 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: 1881 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 1881's is expected to become profitable in the next 3 years.

Revenue vs Market: 1881's revenue is expected to decline over the next 3 years (-12.8% per year).

High Growth Revenue: 1881's revenue is forecast to decline over the next 3 years (-12.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 1881's Return on Equity is forecast to be low in 3 years time (2%).


Next Steps

  • Explore growth companies in the Real Estate industry.

Past Performance

How has Regal Real Estate Investment Trust performed over the past 5 years?

26.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 1881 is currently unprofitable.

Growing Profit Margin: 1881 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 1881 is unprofitable, but has reduced losses over the past 5 years at a rate of 26.8% per year.

Accelerating Growth: Unable to compare 1881's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 1881 is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (-29.9%).


Return on Equity

High ROE: 1881 has a negative Return on Equity (-14.33%), as it is currently unprofitable.


Next Steps

Financial Health

How is Regal Real Estate Investment Trust's financial position?


Financial Position Analysis

Short Term Liabilities: 1881's short term assets (HK$217.5M) do not cover its short term liabilities (HK$883.9M).

Long Term Liabilities: 1881's short term assets (HK$217.5M) do not cover its long term liabilities (HK$9.8B).


Debt to Equity History and Analysis

Debt Level: 1881's debt to equity ratio (67.7%) is considered high.

Reducing Debt: 1881's debt to equity ratio has increased from 52.7% to 67.7% over the past 5 years.

Debt Coverage: 1881's debt is not well covered by operating cash flow (5.3%).

Interest Coverage: 1881 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

What is Regal Real Estate Investment Trust current dividend yield, its reliability and sustainability?

11.07%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 1881's dividend (11.07%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.28%).

High Dividend: 1881's dividend (11.07%) is in the top 25% of dividend payers in the Hong Kong market (6.92%)


Stability and Growth of Payments

Stable Dividend: 1881's dividend payments have been volatile in the past 10 years.

Growing Dividend: 1881's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (89.4%), 1881's 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?

10.4yrs

Average board tenure


CEO

Regal Real Estate Investment Trust has no CEO, or we have no data on them.


Board Members

NamePositionTenureCompensationOwnership
Man Lim Lam
Director of Finance9.33yrsno datano data
Sing Hung Chen
Director of Asset Management & Executive Director - Regal Portfolio Management Limited6yrsno datano data
Lai Him Shek
Independent Non-Executive Director of Regal Portfolio Management Limited14.58yrsno datano data
Chun To Lo
Non-Executive Director of Regal Portfolio Management Limited14.58yrsno datano data
Yuk Sui Lo
Chairman of Regal Portfolio Management Limited14.58yrsno data0.086%
HK$ 3.1m
Kwai Kai Ng
Non-Executive Director of Regal Portfolio Management Limited7.92yrsno datano data
Kai Ole Ringenson
Independent Non-Executive Director of Regal Portfolio Management Limited10.42yrsno datano data
Tung Fan
Non-Executive Director of Regal Portfolio Management Limited14.58yrsno datano data
John William Crawford
Independent Non-Executive Director of Regal Portfolio Management Limited14.58yrsno datano data
Po Man Lo
Vice Chairman of Regal Portfolio Management Limited6.67yrsno datano data
Po Wing Leung
Independent Non-Executive Director of Regal Portfolio Management Limited3.83yrsno datano data

10.4yrs

Average Tenure

66yo

Average Age

Experienced Board: 1881's board of directors are seasoned and experienced ( 10.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Regal Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Regal Real Estate Investment Trust
  • Ticker: 1881
  • Exchange: SEHK
  • Founded: 2006
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Market Cap: HK$3.648b
  • Shares outstanding: 3.26b
  • Website: https://www.regalreit.com

Location

  • Regal Real Estate Investment Trust
  • Unit No. 2001
  • 20th Floor
  • Causeway Bay
  • New Territories
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
1881SEHK (The Stock Exchange of Hong Kong Ltd.)YesUnitsHKHKDMar 2007
RREI.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDMar 2007

Biography

Regal REIT is a Hong Kong collective investment scheme authorised under section 104 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and its Units were listed on The Stock Exc ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/04 12:38
End of Day Share Price2020/08/04 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.