SGX:J91U

Stock Analysis Report

Executive Summary

ESR-REIT has been listed on the Singapore Exchange Securities Trading Limited since 25 July 2006.

Snowflake

Fundamentals

Average dividend payer with moderate growth potential.


Similar Companies

Share Price & News

How has ESR-REIT's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.9%

J91U

0.7%

SG REITs

0.9%

SG Market


1 Year Return

10.1%

J91U

18.0%

SG REITs

0.7%

SG Market

Return vs Industry: J91U underperformed the SG REITs industry which returned 18% over the past year.

Return vs Market: J91U exceeded the SG Market which returned 0.7% over the past year.


Shareholder returns

J91UIndustryMarket
7 Day1.9%0.7%0.9%
30 Day3.8%2.0%-1.7%
90 Day1.9%0.9%-7.1%
1 Year18.6%10.1%25.2%18.0%4.7%0.7%
3 Year23.1%-2.7%44.2%19.0%14.9%2.6%
5 Year11.5%-24.3%60.9%15.8%10.0%-8.2%

Price Volatility Vs. Market

How volatile is ESR-REIT's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is ESR-REIT undervalued compared to its fair value and its price relative to the market?

31.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: J91U (SGD0.55) is trading below our estimate of fair value (SGD0.79)

Significantly Undervalued: J91U is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: J91U is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: J91U is unprofitable, so we can't compare its PE Ratio to the SG market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate J91U's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: J91U is overvalued based on its PB Ratio (1.1x) compared to the SG REITs industry average (1x).


Next Steps

Future Growth

How is ESR-REIT forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

33.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: J91U is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.3%).

Earnings vs Market: J91U is forecast to become profitable over the next 3 year, which is considered above average market growth.

High Growth Earnings: J91U's loss is forecast to worsen by 0% next year.

Revenue vs Market: J91U's revenue (4.7% per year) is forecast to grow slower than the SG market (5.4% per year).

High Growth Revenue: J91U's revenue (4.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: J91U's Return on Equity is forecast to be low in 3 years time (8.3%).


Next Steps

Past Performance

How has ESR-REIT performed over the past 5 years?

-80.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: J91U is unprofitable, and losses have increased over the past 5 years at a rate of -80.1% per year.

Accelerating Growth: Unable to compare J91U's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: J91U is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (0.3%).


Return on Equity

High ROE: J91U has a negative Return on Equity (-12%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: J91U is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: J91U is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is ESR-REIT'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: J91U has a high level of physical assets or inventory.

Debt Coverage by Assets: J91U's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: J91U's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if J91U has a sufficient allowance for bad loans.

Low Risk Liabilities: J91U reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if J91U has an acceptable proportion of non-loan assets held.

Low Risk Deposits: J91U has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if J91U has an appropriate level of bad loans.


Next Steps

Dividend

What is ESR-REIT's current dividend yield, its reliability and sustainability?

7.08%

Current Dividend Yield


Dividend Yield vs Market

company7.1%marketbottom25%2.5%markettop25%5.7%industryaverage5.2%forecastin3Years7.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: J91U's dividend (7.08%) is higher than the bottom 25% of dividend payers in the SG market (2.51%).

High Dividend: J91U's dividend (7.08%) is in the top 25% of dividend payers in the SG market (5.65%)

Stable Dividend: J91U's dividend payments have been volatile in the past 10 years.

Growing Dividend: J91U's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (79.7%), J91U's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: J91U's dividends in 3 years are forecast to be thoroughly covered by earnings (0.03% payout ratio).


Next Steps

Management

What is the CEO of ESR-REIT's salary, the management and board of directors tenure and is there insider trading?

1.2yrs

Average management tenure


CEO

Adrian Chui (43yo)

2.6yrs

Tenure

0

Mr. Wai Yin Chui, also known as Adrian, serves as CEO & Executive Director of ESR FUNDS MANAGEMENT (S) LIMITED at ESR Cayman Ltd. He has been Chief Executive Officer and Executive Director of ESR Funds Ma ...


Management Age and Tenure

1.2yrs

Average Tenure

44yo

Average Age

Experienced Management: J91U's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Age and Tenure

1.6yrs

Average Tenure

54yo

Average Age

Experienced Board: J91U's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: J91U insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellS$1,328,99927 Sep 19
ESR Funds Management (S) Limited
EntityCompany
Shares2,500,000
Max PriceS$0.53
SellS$1,227,00326 Sep 19
ESR Funds Management (S) Limited
EntityCompany
Shares2,300,000
Max PriceS$0.53
BuyS$24,69326 Sep 19
Stefanie Yuen Thio
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director of ESR Funds Management (S) Limited
Shares46,156
Max PriceS$0.53
BuyS$53,50026 Sep 19
Stefanie Yuen Thio
EntityIndividual
Role
Member of the Board of Directors
Independent Non-Executive Director of ESR Funds Management (S) Limited
Shares100,000
Max PriceS$0.53
SellS$902,00325 Sep 19
ESR Funds Management (S) Limited
EntityCompany
Shares1,700,000
Max PriceS$0.53

Ownership Breakdown


Management Team

  • Lawrence Chan (44yo)

    Chief Financial Officer

    • Tenure: 0.9yrs
  • Nancy Tan (55yo)

    Head of Real Estate & COO

    • Tenure: 1.1yrs
  • York Ying Loy

    Head of Compliance & Risk Management

    • Tenure: 5.3yrs
  • Angeline Chiang

    Company Secretary of Cambridge Industrial Trust Management Limited

    • Tenure: 0yrs
  • Adrian Chui (43yo)

    CEO & Executive Director of ESR Funds Management (S) Limited

    • Tenure: 2.6yrs
  • Charlene-Jayne Chang

    Head of Capital Markets & Investor Relations

    • Tenure: 1.2yrs
  • Irene Phua

    Head of Human Resources & Corporate Services of ESR Funds Management (S) Limited

    • Tenure: 0yrs
  • Steven Leow

    Head of Property Services - of ESR Funds Management (S) Limited

    • Tenure: 0yrs

Board Members

  • Horn Kee Leong (67yo)

    Independent Non-Executive Director of ESR Funds Management (S) Limited

    • Tenure: 0.8yrs
  • Jeffrey David Perlman (35yo)

    Non-Executive Director of ESR Funds Management (S) Limited

    • Tenure: 2.8yrs
  • Wilson Ang (54yo)

    Non-Executive Director of ESR Funds Management (S) Limited

    • Tenure: 0.8yrs
  • Phil Pearce (52yo)

    Non-Executive Director of ESR Funds Management (S) Limited

    • Tenure: 2.5yrs
    • Compensation: S$47.83k
  • Eng-Peng Ooi (62yo)

    Independent Chairman of ESR Funds Management (S) Limited

    • Tenure: 2.8yrs
    • Compensation: S$144.00k
  • Ronald Lim (72yo)

    Independent Non-Executive Director of ESR Funds Management (S) Limited

    • Tenure: 0.8yrs
  • Bruce Kendle Berry (65yo)

    Independent Non-Executive Director of ESR Funds Management (S) Limited

    • Tenure: 3.1yrs
    • Compensation: S$103.00k
  • Adrian Chui (43yo)

    CEO & Executive Director of ESR Funds Management (S) Limited

    • Tenure: 2.6yrs
  • Tong Jinquan

    Non-Executive Director of ESR Funds Management (S) Limited

    • Tenure: 0.8yrs
  • Stefanie Yuen Thio (49yo)

    Independent Non-Executive Director of ESR Funds Management (S) Limited

    • Tenure: 0.6yrs

Company Information

ESR-REIT's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: ESR-REIT
  • Ticker: J91U
  • Exchange: SGX
  • Founded: 2006
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Market Cap: S$1.897b
  • Shares outstanding: 3.48b
  • Website: https://www.esr-reit.com.sg

Location

  • ESR-REIT
  • 138 Market Street
  • No 26-03/04 CapitaGreen
  • Singapore
  • 48946
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
J91USGX (Singapore Exchange)YesUNITSSGSGDJul 2006
CGIU.FOTCPK (Pink Sheets LLC)YesUNITSUSUSDJul 2006

Biography

ESR-REIT has been listed on the Singapore Exchange Securities Trading Limited since 25 July 2006. ESR-REIT invests in quality income-producing industrial properties and as at 30 June 2019 has a diversified ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 12:41
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
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.