SGX:P40U

Stock Analysis Report

Starhill Global Real Estate Investment Trust

Executive Summary

Starhill Global REIT is a Singapore-based real estate investment trust investing primarily in real estate used for retail and office purposes, both in Singapore and overseas.


Snowflake Analysis

Very undervalued average dividend payer.

Share Price & News

How has Starhill Global Real Estate Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: P40U's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

11.5%

P40U

8.0%

SG REITs

4.9%

SG Market


1 Year Return

-41.2%

P40U

-15.3%

SG REITs

-23.8%

SG Market

Return vs Industry: P40U underperformed the SG REITs industry which returned -15.3% over the past year.

Return vs Market: P40U underperformed the SG Market which returned -23.8% over the past year.


Shareholder returns

P40UIndustryMarket
7 Day11.5%8.0%4.9%
30 Day-35.6%-19.1%-17.7%
90 Day-40.0%-22.5%-23.5%
1 Year-37.6%-41.2%-10.3%-15.3%-20.5%-23.8%
3 Year-31.1%-42.8%13.4%-5.7%-17.1%-25.9%
5 Year-29.5%-48.5%21.6%-12.3%-15.3%-29.8%

Price Volatility Vs. Market

How volatile is Starhill Global Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Starhill Global Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: P40U (SGD0.44) is trading below our estimate of fair value (SGD1.15)

Significantly Below Fair Value: P40U is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: P40U is good value based on its PE Ratio (9.4x) compared to the REITs industry average (10.4x).

PE vs Market: P40U is good value based on its PE Ratio (9.4x) compared to the SG market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: P40U is good value based on its PEG Ratio (0.6x)


Price to Book Ratio

PB vs Industry: P40U is good value based on its PB Ratio (0.5x) compared to the SG REITs industry average (0.7x).


Next Steps

Future Growth

How is Starhill Global Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: P40U's forecast earnings growth (14.9% per year) is above the savings rate (1.8%).

Earnings vs Market: P40U's earnings (14.9% per year) are forecast to grow faster than the SG market (5% per year).

High Growth Earnings: P40U's earnings are forecast to grow, but not significantly.

Revenue vs Market: P40U's revenue (2.2% per year) is forecast to grow slower than the SG market (4.1% per year).

High Growth Revenue: P40U's revenue (2.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: P40U's Return on Equity is forecast to be low in 3 years time (6.6%).


Next Steps

Past Performance

How has Starhill Global Real Estate Investment Trust performed over the past 5 years?

-3.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: P40U has high quality earnings.

Growing Profit Margin: P40U's current net profit margins (50.3%) are higher than last year (49.5%).


Past Earnings Growth Analysis

Earnings Trend: P40U's earnings have declined by -3.4% per year over the past 5 years.

Accelerating Growth: P40U's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: P40U had negative earnings growth (-1.6%) over the past year, making it difficult to compare to the REITs industry average (4.4%).


Return on Equity

High ROE: P40U's Return on Equity (5.2%) is considered low.


Next Steps

Financial Health

How is Starhill Global Real Estate Investment Trust'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: P40U has a high level of physical assets or inventory.

Debt Coverage by Assets: P40U's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: P40U's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if P40U has a sufficient allowance for bad loans.

Low Risk Liabilities: P40U reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if P40U has an acceptable proportion of non-loan assets held.

Low Risk Deposits: P40U has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if P40U has an appropriate level of bad loans.


Next Steps

Dividend

What is Starhill Global Real Estate Investment Trust's current dividend yield, its reliability and sustainability?

10.30%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: P40U's dividend (10.3%) is higher than the bottom 25% of dividend payers in the SG market (3.23%).

High Dividend: P40U's dividend (10.3%) is in the top 25% of dividend payers in the SG market (7.09%)


Stability and Growth of Payments

Stable Dividend: P40U's dividend payments have been volatile in the past 10 years.

Growing Dividend: P40U's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (71.7%), P40U's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: P40U's dividends in 3 years are forecast to be covered by earnings (97.7% payout ratio).


Next Steps

Management

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

9.9yrs

Average management tenure


CEO

Sing Ho (53yo)

9.92s

Tenure

Mr. Ho Sing has been the Chief Executive Officer of YTL Starhill Global REIT Management Limited, the Manager of Starhill Global Real Estate Investment Trust since April 20, 2010. Mr. Ho has over 20 years o ...


Leadership Team

NamePositionTenureCompensationOwnership
Sing Ho
CEO & Executive Director9.92yrsno data0.0093% SGD88.8k
Peng Kwet Yew Cheong
Chief Financial Officer of YTL Starhill Global REIT Management Limited10.92yrsno datano data
Clare Koh
Senior VP & Head of Investments - YTL Starhill Global REIT Management Limitedno datano datano data
Soon Hock Yeo
Senior Vice President of Finance & Accounting - YTL Starhill Global REIT Management Limitedno datano datano data
Sandra Lee
Senior Vice President of Human Resource & Administrationno datano datano data
Jonathan Kuah
Senior VP and Head of Investor Relations & Corporate Planning - YTL Starhill Global REIT Mgmnt. Ltd.no datano datano data
Chee Kin Lam
Senior VP of Legal & Compliance and Joint Company Secretary of YTL Starhill Global REIT Mgmt Ltdno datano datano data
Kian Siong Tay
Senior Vice President of Asset Management - YTL Starhill Global REIT Management Limited1.5yrsno datano data
Abdul Jabbar Bin Karam Din
Joint Company Secretary - YTL Starhill Global REIT Management Limitedno datano datano data

9.9yrs

Average Tenure

Experienced Management: P40U's management team is seasoned and experienced (9.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Sing Ho
CEO & Executive Director9.92yrsno data0.0093% SGD88.8k
Seok Yeoh
Non-Executive Director11.25yrsS$63.00kno data
Sock Ping Yeoh
Non-Executive Chairman11.25yrsS$100.00kno data
Woon Hum Tan
Independent Director2.58yrsS$68.00kno data
Yew Ching
Independent Director3.33yrsS$68.00kno data
Bong Lin Tan
Lead Independent Director2.17yrsS$73.00kno data

6.6yrs

Average Tenure

61.5yo

Average Age

Experienced Board: P40U's board of directors are considered experienced (6.6 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.


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Starhill Global Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Starhill Global Real Estate Investment Trust
  • Ticker: P40U
  • Exchange: SGX
  • Founded:
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: S$951.302m
  • Shares outstanding: 2.19b
  • Website: https://www.starhillglobalreit.com

Location

  • Starhill Global Real Estate Investment Trust
  • Tower B
  • 391B Orchard Road
  • Singapore
  • 238874
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
P40USGX (Singapore Exchange)YesUNITSSGSGDSep 2005
SGLM.FOTCPK (Pink Sheets LLC)YesUNITSUSUSDSep 2005

Biography

Starhill Global REIT is a Singapore-based real estate investment trust investing primarily in real estate used for retail and office purposes, both in Singapore and overseas. Since its listing on the Mainboard of the Singapore Exchange Securities Trading Limited (the “SGX-ST”) on 20 September 2005, Starhill Global REIT has grown its initial portfolio from interests in two landmark properties on Orchard Road in Singapore to 10 properties in Singapore, Australia, Malaysia, China, and Japan, valued at about S$3.1 billion. These comprise interests in Wisma Atria and Ngee Ann City on Orchard Road in Singapore, Myer Centre Adelaide, David Jones Building and Plaza Arcade in Adelaide and Perth, Australia, Starhill Gallery and Lot 10 in Kuala Lumpur, Malaysia, a retail property in Chengdu, China, and two properties in Tokyo, Japan. Starhill Global REIT remains focused on sourcing attractive property assets in Singapore and overseas, while driving organic growth from its existing portfolio, through proactive leasing efforts and creative asset enhancements. Starhill Global REIT is managed by an external manager, YTL Starhill Global REIT Management Limited. The Manager is a wholly-owned subsidiary of YTL Starhill Global REIT Management Holdings Pte. Ltd. which is in turn an indirect wholly-owned subsidiary of YTL Corporation Berhad. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/30 13:01
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.