What You Need To Know About AIMS APAC REIT's (SGX:O5RU) Investor Composition

By
Simply Wall St
Published
September 09, 2021
SGX:O5RU
Source: Shutterstock

If you want to know who really controls AIMS APAC REIT (SGX:O5RU), then you'll have to look at the makeup of its share registry. Generally speaking, as a company grows, institutions will increase their ownership. Conversely, insiders often decrease their ownership over time. Companies that have been privatized tend to have low insider ownership.

With a market capitalization of S$1.0b, AIMS APAC REIT is a small cap stock, so it might not be well known by many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about AIMS APAC REIT.

Check out our latest analysis for AIMS APAC REIT

ownership-breakdown
SGX:O5RU Ownership Breakdown September 10th 2021

What Does The Institutional Ownership Tell Us About AIMS APAC REIT?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

As you can see, institutional investors have a fair amount of stake in AIMS APAC REIT. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of AIMS APAC REIT, (below). Of course, keep in mind that there are other factors to consider, too.

earnings-and-revenue-growth
SGX:O5RU Earnings and Revenue Growth September 10th 2021

AIMS APAC REIT is not owned by hedge funds. The company's largest shareholder is ESR Cayman Limited, with ownership of 13%. In comparison, the second and third largest shareholders hold about 9.9% and 8.6% of the stock.

We also observed that the top 7 shareholders account for more than half of the share register, with a few smaller shareholders to balance the interests of the larger ones to a certain extent.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of AIMS APAC REIT

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Shareholders would probably be interested to learn that insiders own shares in AIMS APAC REIT. In their own names, insiders own S$19m worth of stock in the S$1.0b company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

With a 29% ownership, the general public have some degree of sway over AIMS APAC REIT. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Private Company Ownership

Our data indicates that Private Companies hold 19%, of the company's shares. It's hard to draw any conclusions from this fact alone, so its worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.

Public Company Ownership

Public companies currently own 13% of AIMS APAC REIT stock. It's hard to say for sure but this suggests they have entwined business interests. This might be a strategic stake, so it's worth watching this space for changes in ownership.

Next Steps:

It's always worth thinking about the different groups who own shares in a company. But to understand AIMS APAC REIT better, we need to consider many other factors. Like risks, for instance. Every company has them, and we've spotted 3 warning signs for AIMS APAC REIT (of which 1 is significant!) you should know about.

Ultimately the future is most important. You can access this free report on analyst forecasts for the company.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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