SGX:Q5T

Stock Analysis Report

Far East Hospitality Trust

Executive Summary

Far East H-Trust is a Singapore-Focused Hotel and Serviced Residence Hospitality Trust listed on the Main Board of The Singapore Exchange Securities Trading Limited (“SGX-ST”).

Snowflake

Fundamentals

Average dividend payer with questionable track record.

Share Price & News

How has Far East Hospitality Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

0.7%

SGX:Q5T

-0.5%

SG REITs

1.7%

SG Market


1 Year Return

8.7%

SGX:Q5T

12.8%

SG REITs

-0.008%

SG Market

Q5T underperformed the REITs industry which returned 12.8% over the past year.

Q5T outperformed the Market in Singapore which returned -0% over the past year.


Share holder returns

Q5TIndustryMarket
7 Day0.7%-0.5%1.7%
30 Day7.0%2.0%2.2%
90 Day4.5%2.1%-0.8%
1 Year15.3%8.7%20.2%12.8%4.1%-0.008%
3 Year40.7%16.9%42.3%17.6%18.4%5.7%
5 Year16.2%-15.3%61.0%15.8%10.1%-8.1%

Price Volatility Vs. Market

How volatile is Far East Hospitality Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Far East Hospitality Trust undervalued based on future cash flows and its price relative to the stock market?

16%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Far East Hospitality Trust's share price is below the future cash flow value, but not at a moderate discount (< 20%).

Far East Hospitality Trust's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

Far East Hospitality Trust is overvalued based on earnings compared to the SG REITs industry average.

Far East Hospitality Trust is overvalued based on earnings compared to the Singapore market.


Price Based on Expected Growth

Far East Hospitality Trust is poor value based on expected growth next year.


Price Based on Value of Assets

Far East Hospitality Trust is good value based on assets compared to the SG REITs industry average.


Next Steps

Future Growth

How is Far East Hospitality Trust expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

9.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Far East Hospitality Trust's revenue is expected to grow by 3.2% yearly, however this is not considered high growth (20% yearly).

Far East Hospitality Trust's earnings are expected to grow by 9.8% yearly, however this is not considered high growth (20% yearly).

Far East Hospitality Trust's revenue growth is positive but not above the Singapore market average.

Far East Hospitality Trust's earnings growth is expected to exceed the Singapore market average.

Far East Hospitality Trust's earnings growth is expected to exceed the low risk savings rate of 2.3%.


Earnings per Share Growth Estimates


Future Return on Equity

Far East Hospitality Trust is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Far East Hospitality Trust performed over the past 5 years?

-15.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Far East Hospitality Trust's year on year earnings growth rate was negative over the past 5 years, however the most recent earnings are above average.

Far East Hospitality Trust's 1-year earnings growth exceeds its 5-year average (238.9% vs -15.2%)

Far East Hospitality Trust's earnings growth has exceeded the SG REITs industry average in the past year (238.9% vs -1.8%).


Return on Equity

Far East Hospitality Trust has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Far East Hospitality Trust used its assets less efficiently than the SG REITs industry average last year based on Return on Assets.


Return on Capital Employed

Far East Hospitality Trust's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is Far East Hospitality Trust's financial position?


Financial Position Analysis

Far East Hospitality Trust's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Far East Hospitality Trust's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Far East Hospitality Trust's level of debt (60.8%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (45.1% vs 60.8% today).

Debt is not well covered by operating cash flow (10.1%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 2.5x annual interest expense, ideally 3x coverage).


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 Far East Hospitality Trust's current dividend yield, its reliability and sustainability?

6.04%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Far East Hospitality Trust's pays a higher dividend yield than the bottom 25% of dividend payers in Singapore (2.53%).

Far East Hospitality Trust's dividend is above the markets top 25% of dividend payers in Singapore (5.64%).

Whilst dividend payments have been stable, Far East Hospitality Trust has been paying a dividend for less than 10 years.

Dividend payments have increased, but Far East Hospitality Trust only paid a dividend in the past 7 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.9x coverage).


Future Payout to Shareholders

Dividends after 3 years are expected to be thoroughly covered by earnings (1666.7x coverage).


Next Steps

Management

What is the CEO of Far East Hospitality Trust's salary, the management and board of directors tenure and is there insider trading?

3.9yrs

Average board tenure


CEO

Gerald Lee (53yo)

0yrs

Tenure

S$614,203

Compensation

Mr. Hwee Keong Lee, also known as Gerald, serves as the Chief Executive Officer of FEO Hospitality Asset Management Pte Ltd., REII Manager of Far East Hospitality Trust. Mr. Lee serves as the Chief Executi ...


CEO Compensation Analysis

Gerald's remuneration is about average for companies of similar size in Singapore.

Gerald's compensation has been consistent with company performance over the past year, both up more than 20%.


Board Age and Tenure

3.9yrs

Average Tenure

66yo

Average Age

The tenure for the Far East Hospitality Trust board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellS$3,337,49908 Apr 19
FEO Hospitality Asset Management Pte Ltd.
EntityCompany
Shares5,000,000
Max PriceS$0.67
SellS$387,24014 Mar 19
FEO Hospitality Asset Management Pte Ltd.
EntityCompany
Shares600,000
Max PriceS$0.65
BuyS$362,88018 Dec 18
Far East Organization Centre Pte. Ltd.
EntityCompany
Shares600,000
Max PriceS$0.60
SellS$362,88014 Dec 18
FEO Hospitality Asset Management Pte Ltd.
EntityCompany
Shares600,000
Max PriceS$0.60
SellS$390,90021 Sep 18
FEO Hospitality Asset Management Pte Ltd.
EntityCompany
Shares600,000
Max PriceS$0.65

Ownership Breakdown


Management Team

  • Gerald Lee (53yo)

    Chief Executive Officer of FEO Hospitality Asset Management Pte Ltd

    • Tenure: 0yrs
    • Compensation: S$614.20k
  • Regina Yap (46yo)

    Chief Financial Officer of FEO Hospitality Asset Management Pte Ltd

    • Tenure: 2.3yrs
  • Moi Lin

    Joint Company Secretary of FEO Hospitality Asset Management Pte Ltd

    • Tenure: 0yrs
  • Mei Low

    Joint Company Secretary of FEO Hospitality Asset Management Pte Ltd

    • Tenure: 0yrs
  • Irfan Tayabali

    Vice President of Asset Management & Investment for FEO Hospitality Asset Management Pte Ltd

    • Tenure: 0yrs

Board Members

  • Cheng Huang (71yo)

    Independent Director of FEO Hospitality Asset Management Pte Ltd

    • Tenure: 7.2yrs
    • Compensation: S$100.00k
  • Kheng Wee (64yo)

    Non-Independent & Non-Executive Chairman of FEO Hospitality Asset Management Pte Ltd

    • Tenure: 1.2yrs
    • Compensation: S$107.50k
  • Willie Cheng (65yo)

    Lead Independent Director of FEO Hospitality Asset Management Pte Ltd

    • Tenure: 6.6yrs
    • Compensation: S$112.50k
  • Kyle Lee (67yo)

    Independent Director of FEO Hospitality Asset Management Pte Ltd

    • Tenure: 7.2yrs
    • Compensation: S$105.00k
  • Vivienne Lim

    Independent Director of FEO Hospitality Asset Management Pte Ltd

    • Tenure: 1.2yrs
    • Compensation: S$27.50k
  • Catherine Lee

    Independent Director of FEO Hospitality Asset Management Pte Ltd

    • Tenure: 0.2yrs

Company Information

Far East Hospitality Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Far East Hospitality Trust
  • Ticker: Q5T
  • Exchange: SGX
  • Founded: 2012
  • Industry: Hotel and Resort REITs
  • Sector: Real Estate
  • Market Cap: S$1.326b
  • Shares outstanding: 1.92b
  • Website: https://www.fareasthospitalitytrust.com

Number of Employees


Location

  • Far East Hospitality Trust
  • 1 Tanglin Road
  • No. 05-01 Orchard Rendezvous Hotel
  • Singapore
  • 247905
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
Q5TSGX (Singapore Exchange)YesStapled SecuritiesSGSGDAug 2012

Biography

Far East H-Trust is a Singapore-Focused Hotel and Serviced Residence Hospitality Trust listed on the Main Board of The Singapore Exchange Securities Trading Limited (“SGX-ST”). Comprising Far East Hospital ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/15 12:54
End of Day Share Price2019/09/13 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.