SGX:ACV

Stock Analysis Report

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.

Snowflake

Fundamentals

Second-rate dividend payer 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 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-0.7%

ACV

-2.6%

SG REITs

-0.7%

SG Market


1 Year Return

-0.7%

ACV

16.2%

SG REITs

4.7%

SG Market

Return vs Industry: ACV underperformed the SG REITs industry which returned 16.2% over the past year.

Return vs Market: ACV underperformed the SG Market which returned 4.7% over the past year.


Shareholder returns

ACVIndustryMarket
7 Day-0.7%-2.6%-0.7%
30 Day-1.4%-3.9%2.9%
90 Day0.7%-0.5%2.6%
1 Year5.5%-0.7%23.5%16.2%8.9%4.7%
3 Year31.8%8.5%48.4%22.5%20.8%8.0%
5 Year21.2%-19.4%54.0%10.8%11.6%-7.0%

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?

30.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ACV (SGD0.71) is trading below our estimate of fair value (SGD1.01)

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 poor value based on its PE Ratio (28.2x) compared to the REITs industry average (14.3x).

PE vs Market: ACV is poor value based on its PE Ratio (28.2x) compared to the SG market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: ACV is poor value based on its PEG Ratio (2.3x)


Price to Book Ratio

PB vs Industry: ACV is good value based on its PB Ratio (0.9x) compared to the SG REITs industry average (1x).


Next Steps

Future Growth

How is Frasers Hospitality Trust forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ACV's forecast earnings growth (12.2% per year) is above the savings rate (2.3%).

Earnings vs Market: ACV's earnings (12.2% per year) are forecast to grow faster than the SG market (5.7% per year).

High Growth Earnings: ACV's earnings are forecast to grow, but not significantly.

Revenue vs Market: ACV's revenue (1.6% per year) is forecast to grow slower than the SG market (5.3% per year).

High Growth Revenue: ACV's revenue (1.6% 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 (4.8%).


Next Steps

Past Performance

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

-7.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ACV has large one-off items impacting its financial results.

Growing Profit Margin: ACV's current net profit margins (31.6%) are lower than last year (39.8%).


Past Earnings Growth Analysis

Earnings Trend: ACV's earnings have declined by -7.2% per year over the past 5 years.

Accelerating Growth: ACV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: ACV had negative earnings growth (-23.8%) over the past year, making it difficult to compare to the REITs industry average (4.6%).


Return on Equity

High ROE: ACV's Return on Equity (3.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Frasers Hospitality Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: ACV has a high level of physical assets or inventory.

Debt Coverage by Assets: ACV's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: ACV's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if ACV has a sufficient allowance for bad loans.

Low Risk Liabilities: ACV reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if ACV has an acceptable proportion of non-loan assets held.

Low Risk Deposits: ACV has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if ACV has an appropriate level of bad loans.


Next Steps

Dividend

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

6.17%

Current Dividend Yield


Dividend Yield vs Market

company6.2%marketbottom25%2.6%markettop25%5.6%industryaverage5.4%forecastin3Years6.5%

Current dividend yield vs market & industry

Notable Dividend: ACV's dividend (6.17%) is higher than the bottom 25% of dividend payers in the SG market (2.56%).

High Dividend: ACV's dividend (6.17%) is in the top 25% of dividend payers in the SG market (5.57%)


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 4 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (84.1%), 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 (111.4% payout ratio).


Next Steps

Management

What is the CEO of Frasers Hospitality Trust's salary, the management and board of directors tenure and is there insider trading?

1.1yrs

Average management tenure


CEO

Colin Low (42yo)

0.3yrs

Tenure

0

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  ...


Management Age and Tenure

1.1yrs

Average Tenure

Experienced Management: ACV's management team is not considered experienced ( 1.1 years average tenure), which suggests a new team.


Board Age and Tenure

5.4yrs

Average Tenure

65.5yo

Average Age

Experienced Board: ACV's board of directors are considered experienced (5.4 years average tenure).


Insider Trading

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.


Management Team

  • Eric Gan (48yo)

    Chief Financial Officer

    • Tenure: 0.8yrs
  • Sandy Leng

    VP & Head of Investor Relations

    • Tenure: 0yrs
  • Colin Low (42yo)

    Chief Executive Officer

    • Tenure: 0.3yrs
  • Jason Leong

    Head of Investment

    • Tenure: 1.4yrs
  • Catherine Yeo

    Company Secretary of Frasers Hospitality Asset Management Pte Ltd

    • Tenure: 3.1yrs
  • Christine Chua

    VP & Deputy Head of Investment

    • Tenure: 0yrs

Board Members

  • Phuay Hee Chua (66yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: S$54.00k
  • Teck Chuan Koh (59yo)

    Non-Executive & Non-Independent Director

    • Tenure: 0.5yrs
  • David Wong (66yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: S$87.50k
  • Song Keng Law (74yo)

    Independent Chairman of the Board

    • Tenure: 5.4yrs
    • Compensation: S$175.00k
  • Choon Wei Liew (65yo)

    Independent Director

    • Tenure: 5.4yrs
    • Compensation: S$87.50k
  • Panote Sirivadhanabhakdi (42yo)

    Non-Executive Director

    • Tenure: 5.4yrs

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:
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Market Cap: S$1.346b
  • Shares outstanding: 1.91b
  • Website: https://www.frasershospitalitytrust.com

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 Analysis2019/11/13 12:59
End of Day Share Price2019/11/13 00:00
Earnings2019/09/30
Annual Earnings2019/09/30


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.