SGX:ACV

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Frasers Hospitality Trust

Executive Summary

FHT is the first global hotel and serviced residence trust listed in Singapore on 14 July 2014, comprising FH-REIT and FH-BT. More Details


Snowflake Analysis

Reasonable growth potential and slightly overvalued.

Share Price & News

How has Frasers Hospitality Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: ACV is less volatile than 75% of SG stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: ACV's weekly volatility (3%) has been stable over the past year.


Market Performance


7 Day Return

-2.0%

ACV

0.5%

SG REITs

1.1%

SG Market


1 Year Return

-24.8%

ACV

-12.3%

SG REITs

-4.0%

SG Market

Return vs Industry: ACV underperformed the SG REITs industry which returned -12.3% over the past year.

Return vs Market: ACV underperformed the SG Market which returned -4% over the past year.


Shareholder returns

ACVIndustryMarket
7 Day-2.0%0.5%1.1%
30 Day1.0%-3.3%1.9%
90 Day-7.4%1.3%6.1%
1 Year-22.3%-24.8%-7.8%-12.3%1.0%-4.0%
3 Year-24.8%-35.9%18.4%-1.3%-7.1%-18.5%
5 Year-8.8%-35.9%46.5%8.2%17.0%-4.4%

Long-Term Price Volatility Vs. Market

How volatile is Frasers Hospitality Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Frasers Hospitality Trust undervalued compared to its fair value and its price relative to the market?

19.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACV (SGD0.5) is trading below our estimate of fair value (SGD0.62)

Significantly Below Fair Value: ACV is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

PE vs Market: ACV is unprofitable, so we can't compare its PE Ratio to the SG market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ACV is good value based on its PB Ratio (0.7x) compared to the SG REITs industry average (0.9x).


Next Steps

Future Growth

How is Frasers Hospitality Trust forecast to perform in the next 1 to 3 years based on estimates from 3 analysts?

92.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACV is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

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

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

Revenue vs Market: ACV's revenue (13.4% per year) is forecast to grow faster than the SG market (9.1% per year).

High Growth Revenue: ACV's revenue (13.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: ACV's Return on Equity is forecast to be low in 3 years time (3.8%).


Next Steps

Past Performance

How has Frasers Hospitality Trust performed over the past 5 years?

-34.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACV is currently unprofitable.

Growing Profit Margin: ACV is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ACV is unprofitable, and losses have increased over the past 5 years at a rate of 34.1% per year.

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

Earnings vs Industry: ACV is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (-29.3%).


Return on Equity

High ROE: ACV has a negative Return on Equity (-8.38%), as it is currently unprofitable.


Next Steps

Financial Health

How is Frasers Hospitality Trust's financial position?


Financial Position Analysis

Short Term Liabilities: ACV's short term assets (SGD98.1M) exceed its short term liabilities (SGD70.7M).

Long Term Liabilities: ACV's short term assets (SGD98.1M) do not cover its long term liabilities (SGD937.5M).


Debt to Equity History and Analysis

Debt Level: ACV's debt to equity ratio (67.1%) is considered high.

Reducing Debt: ACV's debt to equity ratio has increased from 67% to 67.1% over the past 5 years.

Debt Coverage: ACV's debt is not well covered by operating cash flow (6.6%).

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


Balance Sheet


Next Steps

Dividend

What is Frasers Hospitality Trust current dividend yield, its reliability and sustainability?

2.80%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: ACV's dividend (2.8%) is higher than the bottom 25% of dividend payers in the SG market (1.98%).

High Dividend: ACV's dividend (2.8%) is low compared to the top 25% of dividend payers in the SG market (4.79%).


Stability and Growth of Payments

Stable Dividend: ACV has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: ACV has only been paying a dividend for 5 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (86.7%), ACV's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: ACV's dividends in 3 years are not forecast to be well covered by earnings (103.4% payout ratio).


Next Steps

Management

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

2.5yrs

Average management tenure


CEO

Colin Low (42 yo)

1.67yrs

Tenure

Mr. Hsien Yang Low, also known as Colin, has been the Chief Executive Officer of Frasers Hospitality Trust since July 1, 2019. Mr. Low was the Head of Investment and Senior Director of Frasers Hospitality ...


Leadership Team

NamePositionTenureCompensationOwnership
Hsien Yang Low
Chief Executive Officer1.67yrsno data0.0033%
SGD 32.2k
Chee Teik Gan
Chief Financial Officer2.17yrsno datano data
Say Boon Leong
Senior VP & Head of Investment2.75yrsno datano data
Sandy Leng
VP & Head of Investor Relationsno datano datano data
Christine Chua
VP & Deputy Head of Investmentno datano datano data
Catherine Yeo
Company Secretary of Frasers Hospitality Asset Management Pte Ltd4.42yrsno datano data

2.5yrs

Average Tenure

Experienced Management: ACV's management team is considered experienced (2.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Phuay Hee Chua
Non-Executive & Independent Director6.75yrsS$49.63kno data
Panote Sirivadhanabhakdi
Non-Executive & Non-Independent Director6.75yrsS$53.38k36.72%
SGD 353.7m
Teck Chuan Koh
Non-Executive & Non-Independent Director1.83yrsS$48.13kno data
See Hong Wong
Non-Executive & Independent Director6.75yrsS$103.21kno data
Song Keng Law
Non-Executive & Independent Chairman6.75yrsS$135.92k0.029%
SGD 274.9k
Choon Wei Liew
Non-Executive & Independent Director6.75yrsS$81.04kno data

6.8yrs

Average Tenure

66.5yo

Average Age

Experienced Board: ACV's board of directors are considered experienced (6.8 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

Frasers Hospitality Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Frasers Hospitality Trust
  • Ticker: ACV
  • Exchange: SGX
  • Founded: NaN
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Market Cap: S$963.037m
  • Shares outstanding: 1.93b
  • Website: https://www.frasersproperty.com/reits/fht

Location

  • Frasers Hospitality Trust
  • 438 Alexandra Road
  • No. 21-00 Alexandra Point
  • Singapore
  • 119958
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ACVSGX (Singapore Exchange)YesStapled SecuritiesSGSGDJul 2014

Biography

FHT is the first global hotel and serviced residence trust listed in Singapore on 14 July 2014, comprising FH-REIT and FH-BT. It is established with the principal strategy of investing globally, on a long-...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/03/04 11:05
End of Day Share Price2021/03/04 00:00
Earnings2020/09/30
Annual Earnings2020/09/30


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.