SGX:AW9U

Stock Analysis Report

First Real Estate Investment Trust

Executive Summary

First Real Estate Investment Trust (“First REIT”) is a real estate investment trust constituted by the Trust Deed entered into on 19 October 2006 between Bowsprit Capital Corporation Limited as the Manager and HSBC Institutional Trust Services (Singapore) Limited as the Trustee.

Rewards

Trading at 35.5% below its fair value

Pays a high and reliable dividend of 8.64%

Risk Analysis

Earnings are forecast to decline by an average of -2.7% per year for the next 3 years

Dividend of 8.64% is not well covered by earnings



Snowflake Analysis

Undervalued established dividend payer.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: AW9U has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.5%

AW9U

-2.5%

SG REITs

0.1%

SG Market


1 Year Return

-1.5%

AW9U

13.9%

SG REITs

3.7%

SG Market

Return vs Industry: AW9U underperformed the SG REITs industry which returned 13.9% over the past year.

Return vs Market: AW9U underperformed the SG Market which returned 3.7% over the past year.


Shareholder returns

AW9UIndustryMarket
7 Day-2.5%-2.5%0.1%
30 Day-1.5%-0.2%-0.2%
90 Day-8.7%-2.1%0.3%
1 Year7.2%-1.5%20.9%13.9%7.9%3.7%
3 Year-3.7%-22.3%48.5%22.5%17.5%4.9%
5 Year13.7%-19.1%57.6%13.6%14.2%-4.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

35.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: AW9U (SGD1) is trading below our estimate of fair value (SGD1.54)

Significantly Below Fair Value: AW9U is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: AW9U is good value based on its PE Ratio (10.9x) compared to the REITs industry average (14.2x).

PE vs Market: AW9U is good value based on its PE Ratio (10.9x) compared to the SG market (13.1x).


Price to Earnings Growth Ratio

PEG Ratio: AW9U's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: AW9U is good value based on its PB Ratio (0.9x) compared to the SG REITs industry average (1x).


Next Steps

Future Growth

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

-2.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: AW9U's earnings are forecast to decline over the next 3 years (-2.7% per year).

Earnings vs Market: AW9U's earnings are forecast to decline over the next 3 years (-2.7% per year).

High Growth Earnings: AW9U's earnings are forecast to decline over the next 3 years.

Revenue vs Market: AW9U's revenue (1.3% per year) is forecast to grow slower than the SG market (5.6% per year).

High Growth Revenue: AW9U's revenue (1.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: AW9U's Return on Equity is forecast to be low in 3 years time (8.1%).


Next Steps

Past Performance

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

-6.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: AW9U has high quality earnings.

Growing Profit Margin: AW9U's current net profit margins (62.2%) are higher than last year (60.3%).


Past Earnings Growth Analysis

Earnings Trend: AW9U's earnings have declined by -6.2% per year over the past 5 years.

Accelerating Growth: AW9U's earnings growth over the past year (3.5%) exceeds its 5-year average (-6.2% per year).

Earnings vs Industry: AW9U earnings growth over the past year (3.5%) underperformed the REITs industry 4.6%.


Return on Equity

High ROE: AW9U's Return on Equity (8.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is First Real Estate Investment 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: AW9U has a high level of physical assets or inventory.

Debt Coverage by Assets: AW9U's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: AW9U's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if AW9U has a sufficient allowance for bad loans.

Low Risk Liabilities: AW9U reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if AW9U has an acceptable proportion of non-loan assets held.

Low Risk Deposits: AW9U has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if AW9U has an appropriate level of bad loans.


Next Steps

Dividend

What is First Real Estate Investment Trust's current dividend yield, its reliability and sustainability?

8.64%

Current Dividend Yield


Dividend Yield vs Market

company8.6%marketbottom25%2.6%markettop25%5.5%industryaverage5.4%forecastin3Years8.7%

Current dividend yield vs market & industry

Notable Dividend: AW9U's dividend (8.64%) is higher than the bottom 25% of dividend payers in the SG market (2.56%).

High Dividend: AW9U's dividend (8.64%) is in the top 25% of dividend payers in the SG market (5.51%)


Stability and Growth of Payments

Stable Dividend: AW9U's dividends per share have been stable in the past 10 years.

Growing Dividend: AW9U's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (68%), AW9U's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: AW9U's dividends in 3 years are not forecast to be well covered by earnings (107.8% payout ratio).


Next Steps

Management

What is the CEO of First Real Estate Investment Trust's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

Victor Tan (52yo)

2.6yrs

Tenure

0

Mr. Tan Kok Mian, also known as Victor, has been the Acting Chief Executive Officer & Executive Director - Bowsprit Capital Corporation Limited since 2017. Mr. Tan is a Chief Executive Officer of FIRST REI ...


Management Age and Tenure

1.8yrs

Average Tenure

Experienced Management: AW9U's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Age and Tenure

1.2yrs

Average Tenure

60yo

Average Age

Experienced Board: AW9U's board of directors are not considered experienced ( 1.2 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

SellS$5,050,00011 Dec 19
Lanius Ltd.
EntityCompany
Shares5,000,000
Max PriceS$1.01
SellS$4,615,20710 Dec 19
Lanius Ltd.
EntityCompany
Shares4,506,600
Max PriceS$1.02
SellS$2,326,11016 Oct 19
Lanius Ltd.
EntityCompany
Shares2,280,500
Max PriceS$1.02
SellS$2,876,83404 Oct 19
Lanius Ltd.
EntityCompany
Shares2,873,100
Max PriceS$1.00
SellS$2,931,60404 Oct 19
Lanius Ltd.
EntityCompany
Shares2,884,300
Max PriceS$1.02
SellS$3,522,14402 Oct 19
Lanius Ltd.
EntityCompany
Shares3,467,700
Max PriceS$1.02
SellS$1,396,89002 Oct 19
Lanius Ltd.
EntityCompany
Shares1,369,500
Max PriceS$1.02
SellS$1,261,95802 Oct 19
Lanius Ltd.
EntityCompany
Shares1,179,400
Max PriceS$1.07
SellS$2,635,98330 Sep 19
Lanius Ltd.
EntityCompany
Shares2,542,300
Max PriceS$1.04
BuyS$29,30118 Apr 19
Kok Mian Tan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director of Bowsprit Capital Corporation Limited
Shares30,000
Max PriceS$0.98
BuyS$19,70017 Apr 19
Kok Mian Tan
EntityIndividual
Role
Chief Executive Officer
CEO & Executive Director of Bowsprit Capital Corporation Limited
Shares20,000
Max PriceS$0.98

Ownership Breakdown

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


Management Team

  • Victor Tan (52yo)

    CEO & Executive Director of Bowsprit Capital Corporation Limited

    • Tenure: 2.6yrs
  • Jacky Chan (50yo)

    Head of Asset & Investment Management of Bowsprit Capital Corporation Limited

    • Tenure: 0yrs
  • Valerie Ng

    Chief Financial Officer of Bowsprit Capital Corporation Limited

    • Tenure: 1.8yrs
  • Lay Hong Tan

    Company Secretary

    • Tenure: 0.3yrs

Board Members

  • Christopher James Williams (60yo)

    Chairman of Bowsprit Capital Corporation Limited

    • Tenure: 1.2yrs
  • Adrian Chan (54yo)

    Lead Independent Director of Bowsprit Capital Corporation Limited

    • Tenure: 1.2yrs
  • Victor Tan (52yo)

    CEO & Executive Director of Bowsprit Capital Corporation Limited

    • Tenure: 2.6yrs
  • Richard Tan (62yo)

    Independent Director of Bowsprit Capital Corporation Limited

    • Tenure: 2.7yrs
    • Compensation: S$75.83k
  • Martin Lechner

    Independent Director of Bowsprit Capital Corporation Limited

    • Tenure: 1.9yrs
  • Charles Bye Ferris (64yo)

    Independent Director of Bowsprit Capital Corporation Limited

    • Tenure: 1.2yrs
  • Minny Riady

    Non-Independent Non-Executive Director of Bowsprit Capital Corporation Limited

    • Tenure: 0.7yrs

Company Information

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


Key Information

  • Name: First Real Estate Investment Trust
  • Ticker: AW9U
  • Exchange: SGX
  • Founded: 2006
  • Industry: Health Care REITs
  • Sector: Real Estate
  • Market Cap: S$793.686m
  • Shares outstanding: 797.67m
  • Website: https://www.first-reit.com

Location

  • First Real Estate Investment Trust
  • 50 Collyer Quay
  • No. 06-01, OUE Bayfront
  • Singapore
  • 49321
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
AW9USGX (Singapore Exchange)YesUnitsSGSGDDec 2006
F1TDB (Deutsche Boerse AG)YesUnitsDEEURDec 2006
FESN.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDDec 2006

Biography

First Real Estate Investment Trust (“First REIT”) is a real estate investment trust constituted by the Trust Deed entered into on 19 October 2006 between Bowsprit Capital Corporation Limited as the Manager ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/14 12:41
End of Day Share Price2019/12/13 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.