SEHK:778

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Fortune Real Estate Investment Trust

Executive Summary

Established in 2003, Fortune REIT is a real estate investment trust constituted by a trust deed (as amended, supplemented or otherwise modified from time to time). More Details


Snowflake Analysis

Established dividend payer with moderate growth potential.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: 778 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.1%

778

-4.0%

HK REITs

-2.8%

HK Market


1 Year Return

-30.2%

778

-32.8%

HK REITs

-1.7%

HK Market

Return vs Industry: 778 exceeded the Hong Kong REITs industry which returned -32.8% over the past year.

Return vs Market: 778 underperformed the Hong Kong Market which returned -1.7% over the past year.


Shareholder returns

778IndustryMarket
7 Day-2.1%-4.0%-2.8%
30 Day-0.5%-4.0%2.7%
90 Day-4.3%-3.6%-0.4%
1 Year-25.7%-30.2%-29.5%-32.8%2.3%-1.7%
3 Year-19.7%-32.1%-10.6%-22.2%-8.7%-18.6%
5 Year7.2%-18.7%28.8%0.6%13.7%-5.4%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

33.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: 778 (HK$6.46) is trading below our estimate of fair value (HK$9.76)

Significantly Below Fair Value: 778 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: 778 is unprofitable, so we can't compare its PE Ratio to the XA REITs industry average.

PE vs Market: 778 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 778's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 778's PB Ratio (0.4x) is in line with the HK REITs industry average.


Next Steps

Future Growth

How is Fortune Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

39.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 778 is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.6%).

Earnings vs Market: 778 is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: 778's is expected to become profitable in the next 3 years.

Revenue vs Market: 778's revenue (1.7% per year) is forecast to grow slower than the Hong Kong market (13.3% per year).

High Growth Revenue: 778's revenue (1.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 778's Return on Equity is forecast to be low in 3 years time (2.9%).


Next Steps

Past Performance

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

-6.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 778 is currently unprofitable.

Growing Profit Margin: 778 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 778 is unprofitable, and losses have increased over the past 5 years at a rate of 6.9% per year.

Accelerating Growth: Unable to compare 778's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 778 is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (1.3%).


Return on Equity

High ROE: 778 has a negative Return on Equity (-6.05%), as it is currently unprofitable.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: 778's short term assets (HK$317.7M) do not cover its short term liabilities (HK$5.0B).

Long Term Liabilities: 778's short term assets (HK$317.7M) do not cover its long term liabilities (HK$5.6B).


Debt to Equity History and Analysis

Debt Level: 778's debt to equity ratio (29.8%) is considered satisfactory.

Reducing Debt: 778's debt to equity ratio has reduced from 46.9% to 29.8% over the past 5 years.

Debt Coverage: 778's debt is not well covered by operating cash flow (12.7%).

Interest Coverage: 778 is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet


Next Steps

Dividend

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

7.94%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: 778's dividend (7.94%) is higher than the bottom 25% of dividend payers in the Hong Kong market (2.31%).

High Dividend: 778's dividend (7.94%) is in the top 25% of dividend payers in the Hong Kong market (7.02%)


Stability and Growth of Payments

Stable Dividend: 778's dividends per share have been stable in the past 10 years.

Growing Dividend: 778's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (87.8%), 778's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: 778's dividends in 3 years are not forecast to be well covered by earnings (121.2% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

5.3yrs

Average board tenure


CEO

Justina Chiu (39 yo)

5.58yrs

Tenure

Ms. Yu Chiu, also known as Justina, CFA, has been the Chief Executive Officer at ARA Asset Management Limited, a manager of Fortune Real Estate Investment Trust since February 3, 2015. Ms. Chiu serves as a ...


Board Members

NamePositionTenureCompensationOwnership
Yu Chiu
CEO & Executive Director of ARA Asset Management (Fortune) Limited5.58yrsno datano data
Eirene Yeung
Non-Executive Director of ARA Asset Management (Fortune) Limited17.75yrsno datano data
Kwok Hung Chiu
Non-Executive Director of ARA Asset Management (Fortune) Limited17.75yrsno datano data
Hwee Chiang Lim
Non-Executive Director of ARA Asset Management (Fortune) Limited17.42yrsno data0.16%
HK$ 20.0m
Lai Chee Ma
Non-Executive Director of ARA Asset Management (Fortune) Limited5.25yrsno datano data
Sing Loi Chui
Independent Non Executive Chairman of ARA Asset Management (Fortune) Limited3.75yrsno datano data
Ai Phing Cheng
Independent Non-Executive Director of ARA Asset Management Limited3.75yrsno datano data
May Ann Yeo
Independent Non-Executive Director of ARA Asset Management (Fortune) Limited3.58yrsno datano data
Poh Wah Koh
Independent Non-Executive Director of ARA Asset Management (Fortune) Limited3.17yrsno datano data

5.3yrs

Average Tenure

63yo

Average Age

Experienced Board: 778's board of directors are considered experienced (5.3 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.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

Company Information

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


Key Information

  • Name: Fortune Real Estate Investment Trust
  • Ticker: 778
  • Exchange: SEHK
  • Founded: 2003
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: HK$12.628b
  • Shares outstanding: 1.95b
  • Website: https://www.fortunereit.com/html/index.php

Location

  • Fortune Real Estate Investment Trust
  • 5 Temasek Boulevard
  • No. 12-01 Suntec Tower Five
  • Singapore
  • 38985
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRIV.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDAug 2003
778SEHK (The Stock Exchange of Hong Kong Ltd.)YesUnitsHKHKDAug 2003

Biography

Established in 2003, Fortune REIT is a real estate investment trust constituted by a trust deed (as amended, supplemented or otherwise modified from time to time). It is the first REIT to hold assets in Ho ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/31 12:33
End of Day Share Price2020/10/30 00:00
Earnings2020/06/30
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.