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

2.9%

J91U

0.9%

SG REITs

-1.2%

SG Market


1 Year Return

8.1%

J91U

14.6%

SG REITs

-2.4%

SG Market

J91U underperformed the REITs industry which returned 14.6% over the past year.

J91U outperformed the Market in Singapore which returned -2.4% over the past year.


Share holder returns

J91UIndustryMarket
7 Day2.9%0.9%-1.2%
30 Day2.9%2.1%0.5%
90 Day0.9%1.9%-4.5%
1 Year16.8%8.1%22.1%14.6%1.5%-2.4%
3 Year21.7%-1.8%42.7%17.9%16.1%3.6%
5 Year9.6%-24.1%62.4%16.9%9.2%-8.9%

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 based on future cash flows and its price relative to the stock market?

34%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

ESR-REIT's share price is below the future cash flow value, and at a moderate discount (> 20%).

ESR-REIT's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

ESR-REIT is loss making, we can't compare its value to the SG REITs industry average.

ESR-REIT is loss making, we can't compare the value of its earnings to the Singapore market.


Price Based on Expected Growth

Unable to calculate PEG ratio for ESR-REIT, we can't assess if its growth is good value.


Price Based on Value of Assets

ESR-REIT is overvalued based on assets compared to the SG REITs industry average.


Next Steps

Future Growth

How is ESR-REIT expected 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 Estimates


Future Annual Growth Analysis

ESR-REIT's revenue is expected to grow by 4.7% yearly, however this is not considered high growth (20% yearly).

ESR-REIT's earnings are expected to grow significantly at over 20% yearly.

ESR-REIT's revenue growth is positive but not above the Singapore market average.

ESR-REIT's earnings growth is expected to exceed the Singapore market average.

ESR-REIT's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

ESR-REIT is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

ESR-REIT does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare ESR-REIT's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare ESR-REIT's 1-year growth to the SG REITs industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if ESR-REIT has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if ESR-REIT has efficiently used its assets last year compared to the SG REITs industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if ESR-REIT improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is ESR-REIT's financial position?


Financial Position Analysis

ESR-REIT's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

ESR-REIT's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

ESR-REIT's level of debt (70.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (48.3% vs 70.9% today).

Debt is not well covered by operating cash flow (9.9%, less than 20% of total debt).

ESR-REIT is making a loss, therefore interest payments are not well covered by earnings.


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0x debt.


Next Steps

Dividend

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

7.40%

Expected Dividend Yield


Upcoming Dividend Payment

Purchase ESR-REIT before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield and Payments Analysis

ESR-REIT's pays a higher dividend yield than the bottom 25% of dividend payers in Singapore (2.52%).

ESR-REIT's dividend is above the markets top 25% of dividend payers in Singapore (5.66%).

Dividends per share have been volatile in the past 10 years (annual drop of over 20%).

Dividends per share have fallen over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (3333.3x coverage).


Next Steps

Management

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

1.1yrs

Average management tenure


CEO

Adrian Chui (43yo)

2.5yrs

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

1.1yrs

Average Tenure

44yo

Average Age

The average tenure for the ESR-REIT management team is less than 2 years, this suggests a new team.


Board Age and Tenure

1.5yrs

Average Tenure

54yo

Average Age

The average tenure for the ESR-REIT board of directors is less than 3 years, this suggests a new board.


Insider Trading

No 3 month open market individual insider trading information.


Ownership Breakdown


Management Team

  • Lawrence Chan (44yo)

    Chief Financial Officer

    • Tenure: 0.8yrs
  • Nancy Tan (55yo)

    Head of Real Estate & COO

    • Tenure: 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: 2.5yrs
  • Charlene-Jayne Chang

    Head of Capital Markets & Investor Relations

    • Tenure: 1.1yrs
  • 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: 0.7yrs
  • Jeffrey David Perlman (35yo)

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

    • Tenure: 2.7yrs
  • Wilson Ang (54yo)

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

    • Tenure: 0.7yrs
  • Phil Pearce (52yo)

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

    • Tenure: 2.4yrs
    • Compensation: S$47.83k
  • Eng-Peng Ooi (62yo)

    Independent Chairman of ESR Funds Management (S) Limited

    • Tenure: 2.7yrs
    • Compensation: S$144.00k
  • Ronald Lim (72yo)

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

    • Tenure: 0.7yrs
  • Bruce Kendle Berry (65yo)

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

    • Tenure: 3yrs
    • Compensation: S$103.00k
  • Adrian Chui (43yo)

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

    • Tenure: 2.5yrs
  • Tong Jinquan

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

    • Tenure: 0.7yrs
  • Stefanie Yuen Thio (49yo)

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

    • Tenure: 0.5yrs

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$1.810b
  • Shares outstanding: 3.38b
  • 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 Analysis2019/09/22 12:46
End of Day Share Price2019/09/20 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.