AIMS APAC REIT (SGX:O5RU) - Share price, News & Analysis

O5RU fundamental analysis
Snowflake Score
Valuation	5/6
Future Growth	0/6
Past Performance	4/6
Financial Health	1/6
Dividends	5/6

O5RU Stock Overview

Rewards

Trading at 58.8% below our estimate of its fair value

Earnings have grown 25.4% per year over the past 5 years

Pays a high and reliable dividend of 6.91%

Risk Analysis

Debt is not well covered by operating cash flow

AIMS APAC REIT Competitors

Price History & Performance

Summary of all time highs, changes and price drops for AIMS APAC REIT
Historical stock prices
Current Share Price	S$1.37
52 Week High	S$1.60
52 Week Low	S$1.33
Beta	0.64
1 Month Change	1.48%
3 Month Change	-2.84%
1 Year Change	-6.16%
3 Year Change	-5.52%
5 Year Change	-7.43%
Change since IPO	-76.38%

Shareholder Returns

	O5RU	SG REITs	SG Market
7D	1.5%	1.1%	0.2%
1Y	-6.2%	-4.7%	-3.4%

Return vs Industry: O5RU underperformed the SG REITs industry which returned -4.7% over the past year.

Return vs Market: O5RU underperformed the SG Market which returned -3.4% over the past year.

Price Volatility

Is O5RU's price volatile compared to industry and market?
O5RU volatility
O5RU Average Weekly Movement	2.1%
REITs Industry Average Movement	2.8%
Market Average Movement	4.8%
10% most volatile stocks in SG Market	11.3%
10% least volatile stocks in SG Market	2.2%

Stable Share Price: O5RU is less volatile than 75% of SG stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: O5RU's weekly volatility (2%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
2006	22	Russell Ng	https://www.aimsapacreit.com

Managed by the Manager, AA REIT was established with the principal investment objective of owning and investing in a diversified portfolio of income-producing industrial, logistics and business park real estate, located throughout the Asia Pacific region. The real estate assets are utilised for a variety of purposes, including but not limited to warehousing and distribution activities, business park activities and manufacturing activities. AA REIT’s existing portfolio consists of 28 properties, of which 26 properties are located throughout Singapore, a property located in Gold Coast, Queensland, Australia and a 49.0% interest in one business park property, Optus Centre, which is located in Macquarie Park, New South Wales, Australia.

AIMS APAC REIT Fundamentals Summary

How do AIMS APAC REIT's earnings and revenue compare to its market cap?
O5RU fundamental statistics
Market Cap	S$981.72m
Earnings (TTM)	S$89.24m
Revenue (TTM)	S$142.39m

11.0x

P/E Ratio

6.9x

P/S Ratio

Is O5RU overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
O5RU income statement (TTM)
Revenue	S$142.39m
Cost of Revenue	S$53.84m
Gross Profit	S$88.55m
Other Expenses	-S$687.00k
Earnings	S$89.24m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.12
Gross Margin	62.19%
Net Profit Margin	62.67%
Debt/Equity Ratio	62.2%

How did O5RU perform over the long term?

See historical performance and comparison

Dividends

6.9%

Current Dividend Yield

87%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is O5RU undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

5/6

Valuation Score 5/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for O5RU?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for O5RU. This is calculated by dividing O5RU's market cap by their current preferred multiple.
What is O5RU's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	S$981.72m

O5RU key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	16x
Enterprise Value/EBITDA	n/a
PEG Ratio	6.3x

Price to Earnings Ratio vs Peers

How does O5RU's PE Ratio compare to its peers?

O5RU PE Ratio vs Peers

The above table shows the PE ratio for O5RU vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	20.2x

Forward PE

Price-To-Earnings vs Peers: O5RU is good value based on its Price-To-Earnings Ratio (11x) compared to the peer average (20.2x).

Price to Earnings Ratio vs Industry

How does O5RU's PE Ratio compare vs other companies in the Singaporean REITs Industry?

Price-To-Earnings vs Industry: O5RU is good value based on its Price-To-Earnings Ratio (11x) compared to the SG REITs industry average (14.1x)

Price to Earnings Ratio vs Fair Ratio

What is O5RU's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

O5RU PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	11x
Fair PE Ratio	13.5x

Price-To-Earnings vs Fair Ratio: O5RU is good value based on its Price-To-Earnings Ratio (11x) compared to the estimated Fair Price-To-Earnings Ratio (13.5x).

Share Price vs Fair Value

What is the Fair Price of O5RU when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: O5RU (SGD1.37) is trading below our estimate of fair value (SGD3.32)

Significantly Below Fair Value: O5RU is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: O5RU is poor value based on its PEG Ratio (6.3x)

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Future Growth

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

Future Growth Score

0/6

Future Growth Score 0/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

1.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: O5RU's forecast earnings growth (1.7% per year) is below the savings rate (1.8%).

Earnings vs Market: O5RU's earnings (1.7% per year) are forecast to grow slower than the SG market (12.6% per year).

High Growth Earnings: O5RU's earnings are forecast to grow, but not significantly.

Revenue vs Market: O5RU's revenue (6.8% per year) is forecast to grow slower than the SG market (7.8% per year).

High Growth Revenue: O5RU's revenue (6.8% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: O5RU's Return on Equity is forecast to be low in 3 years time (7.3%).

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Past Performance

How has AIMS APAC REIT performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

25.4%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: O5RU has high quality earnings.

Growing Profit Margin: O5RU's current net profit margins (62.7%) are higher than last year (38.8%).

Past Earnings Growth Analysis

Earnings Trend: O5RU's earnings have grown significantly by 25.4% per year over the past 5 years.

Accelerating Growth: O5RU's earnings growth over the past year (87.6%) exceeds its 5-year average (25.4% per year).

Earnings vs Industry: O5RU earnings growth over the past year (87.6%) underperformed the REITs industry 87.6%.

Return on Equity

High ROE: O5RU's Return on Equity (7.6%) is considered low.

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Financial Health

How is AIMS APAC REIT's financial position?

Financial Health Score

1/6

Financial Health Score 1/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: O5RU's short term assets (SGD30.2M) do not cover its short term liabilities (SGD80.9M).

Long Term Liabilities: O5RU's short term assets (SGD30.2M) do not cover its long term liabilities (SGD949.0M).

Debt to Equity History and Analysis

Debt Level: O5RU's net debt to equity ratio (60.6%) is considered high.

Reducing Debt: O5RU's debt to equity ratio has increased from 59.7% to 62.2% over the past 5 years.

Debt Coverage: O5RU's debt is not well covered by operating cash flow (11.4%).

Interest Coverage: O5RU's interest payments on its debt are well covered by EBIT (3.8x coverage).

Balance Sheet

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Dividend

What is AIMS APAC REIT current dividend yield, its reliability and sustainability?

Dividend Score

5/6

Dividend Score 5/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

6.91%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: O5RU's dividend (6.91%) is higher than the bottom 25% of dividend payers in the SG market (2.34%).

High Dividend: O5RU's dividend (6.91%) is in the top 25% of dividend payers in the SG market (6.16%)

Stability and Growth of Payments

Stable Dividend: O5RU's dividends per share have been stable in the past 10 years.

Growing Dividend: O5RU's dividend payments have fallen over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: At its current payout ratio (87.3%), O5RU's payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (69.9%), O5RU's dividend payments are covered by cash flows.

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Management

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

0.7yrs

Average management tenure

CEO

Russell Ng (40 yo)

0.58

Tenure

Mr. Keh Yang Ng also known as Russell, serves as Chief Executive Officer of AIMS APAC REIT since November 2021 and served as its Head of Investor Relations, Investments & Partnerships at AIMS APAC REIT Man...

Leadership Team

Experienced Management: O5RU's management team is not considered experienced ( 0.7 years average tenure), which suggests a new team.

Board Members

Experienced Board: O5RU's board of directors are considered experienced (4.5 years average tenure).

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 not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2022/03/31