SGX:J91U

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Moderate growth potential second-rate dividend payer.


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

Stable Share Price: J91U has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

J91U

2.3%

SG REITs

0.7%

SG Market


1 Year Return

-26.2%

J91U

-7.9%

SG REITs

-21.6%

SG Market

Return vs Industry: J91U underperformed the SG REITs industry which returned -7.2% over the past year.

Return vs Market: J91U underperformed the SG Market which returned -21.5% over the past year.


Shareholder returns

J91UIndustryMarket
7 Day1.3%2.3%0.7%
30 Day1.3%3.7%-2.2%
90 Day-2.5%3.3%-4.5%
1 Year-20.9%-26.2%-3.4%-7.9%-17.4%-21.6%
3 Year-11.0%-28.2%26.1%6.0%-17.2%-27.2%
5 Year-6.8%-35.2%62.5%19.5%-0.3%-18.6%

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?

32.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: J91U (SGD0.4) is trading below our estimate of fair value (SGD0.58)

Significantly Below Fair Value: J91U is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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's PB Ratio (0.9x) is in line with the SG REITs industry average.


Next Steps

Future Growth

How is ESR-REIT forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

48.0%

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 (2.2%).

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

High Growth Earnings: J91U's is expected to become profitable in the next 3 years.

Revenue vs Market: J91U's revenue (5.2% per year) is forecast to grow slower than the SG market (6.3% per year).

High Growth Revenue: J91U's revenue (5.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: J91U's Return on Equity is forecast to be low in 3 years time (8%).


Next Steps

Past Performance

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

-68.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: J91U is currently unprofitable.

Growing Profit Margin: J91U is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: J91U is unprofitable, and losses have increased over the past 5 years at a rate of 68.3% 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 (-6.7%).


Return on Equity

High ROE: J91U has a negative Return on Equity (-4.38%), as it is currently unprofitable.


Next Steps

Financial Health

How is ESR-REIT's financial position?


Financial Position Analysis

Short Term Liabilities: J91U's short term assets (SGD38.2M) do not cover its short term liabilities (SGD212.7M).

Long Term Liabilities: J91U's short term assets (SGD38.2M) do not cover its long term liabilities (SGD1.4B).


Debt to Equity History and Analysis

Debt Level: J91U's debt to equity ratio (76.9%) is considered high.

Reducing Debt: J91U's debt to equity ratio has increased from 60.8% to 76.9% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable J91U has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: J91U is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 18% per year.


Next Steps

Dividend

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

10.15%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: J91U's dividend (10.15%) is higher than the bottom 25% of dividend payers in the SG market (2.55%).

High Dividend: J91U's dividend (10.15%) is in the top 25% of dividend payers in the SG market (5.53%)


Stability and Growth of Payments

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: With its reasonable payout ratio (64.9%), J91U's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: J91U's dividends in 3 years are not forecast to be well covered by earnings (108.6% payout ratio).


Next Steps

Management

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

2.6yrs

Average management tenure


CEO

Adrian Chui (44 yo)

3.5yrs

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Wai Yin Chui
CEO & Executive Director of ESR Funds Management (S) Limited & ESR-REIT3.5yrsno datano data
Wee Kiat Chan
Chief Financial Officer1.83yrsno datano data
Nancy Tan
Head of Real Estate & COO2yrsno datano data
Charlene-Jayne Chang
Head of Capital Markets & Investor Relations2.08yrsno datano data
York Ying Loy
Head of Compliance & Risk Management6.25yrsno datano data
Gloria Low
Corporate Communications Manager of ESR Funds Management (S) Limitedno datano datano data
Irene Phua
Head of Human Resources & Corporate Services of ESR Funds Management (S) Limited3.17yrsno datano data
Steven Leow
Head of Property Services of ESR Funds Management (S) Limitedno datano datano data
Wai Ming Chiang
Company Secretary of Cambridge Industrial Trust Management Limitedno datano datano data

2.6yrs

Average Tenure

45yo

Average Age

Experienced Management: J91U's management team is considered experienced (2.6 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Wai Yin Chui
CEO & Executive Director of ESR Funds Management (S) Limited & ESR-REIT3.5yrsno datano data
Horn Kee Leong
Independent Non-Executive Director of ESR Funds Management (S) Limited1.67yrsS$88.27k0.0029%
SGD 40.6k
Jeffrey David Perlman
Non-Executive Director of ESR Funds Management (S) Limited3.67yrsno datano data
Poh Seong Ang
Non-Executive Director of ESR Funds Management (S) Limited1.67yrsS$202.50k0.11%
SGD 1.5m
Philip Pearce
Non-Executive Director of ESR Funds Management (S) Limited3.42yrsS$47.83kno data
Eng-Peng Ooi
Independent Chairman of ESR Funds Management (S) Limited3.67yrsS$166.28kno data
Jinquan Tong
Non-Executive Director of ESR Funds Management (S) Limited1.67yrsno data22.85%
SGD 319.7m
Cheng Aun Lim
Independent Non-Executive Director of ESR Funds Management (S) Limited1.67yrsS$100.04k0.0044%
SGD 61.4k
Stefanie Yuen Thio
Independent Non-Executive Director of ESR Funds Management (S) Limited1.5yrsS$68.55k0.0042%
SGD 58.8k
Khor Un-Hun
Independent Non-Executive Director0.25yrno datano data

1.7yrs

Average Tenure

55yo

Average Age

Experienced Board: J91U's board of directors are not considered experienced ( 1.7 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 4.7%.


Top Shareholders

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$1.400b
  • Shares outstanding: 3.54b
  • 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 2020 holds interest in ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 19:19
End of Day Share Price2020/09/18 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.