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 and slightly overvalued.

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

1.4%

Q5T

1.5%

SG REITs

0.9%

SG Market


1 Year Return

15.7%

Q5T

19.4%

SG REITs

1.4%

SG Market

Return vs Industry: Q5T underperformed the SG REITs industry which returned 19.4% over the past year.

Return vs Market: Q5T exceeded the SG Market which returned 1.4% over the past year.


Shareholder returns

Q5TIndustryMarket
7 Day1.4%1.5%0.9%
30 Day1.4%1.8%-2.3%
90 Day2.9%0.8%-6.7%
1 Year22.8%15.7%26.7%19.4%5.4%1.4%
3 Year40.4%16.7%45.3%20.0%15.8%3.4%
5 Year17.9%-14.1%63.4%17.6%11.3%-7.0%

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 compared to its fair value and its price relative to the market?

15.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: Q5T (SGD0.7) is trading below our estimate of fair value (SGD0.83)

Significantly Undervalued: Q5T is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: Q5T is poor value based on its PE Ratio (16.4x) compared to the REITs industry average (15.7x).

PE vs Market: Q5T is poor value based on its PE Ratio (16.4x) compared to the SG market (13.4x).


Price to Earnings Growth Ratio

Low PEG Ratio: Q5T is poor value based on its PEG Ratio (1.7x)


Price to Book Ratio

PB vs Industry: Q5T is good value based on its PB Ratio (0.8x) compared to the SG REITs industry average (1x).


Next Steps

Future Growth

How is Far East Hospitality Trust forecast 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 Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Q5T's forecast earnings growth (9.8% per year) is above the savings rate (2.3%).

Earnings vs Market: Q5T's earnings (9.8% per year) are forecast to grow faster than the SG market (5.7% per year).

High Growth Earnings: Q5T's earnings are forecast to grow, but not significantly.

Revenue vs Market: Q5T's revenue (3.1% per year) is forecast to grow slower than the SG market (5.4% per year).

High Growth Revenue: Q5T's revenue (3.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Q5T's Return on Equity is forecast to be low in 3 years time (4.1%).


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

Earnings Trend: Q5T's earnings have declined by -15.2% per year over the past 5 years.

Accelerating Growth: Q5T's earnings growth over the past year (238.9%) exceeds its 5-year average (-15.2% per year).

Earnings vs Industry: Q5T earnings growth over the past year (238.9%) exceeded the REITs industry 0.3%.


Return on Equity

High ROE: Q5T's Return on Equity (4.8%) is considered low.


Return on Assets

ROA vs Industry: Q5T's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: Q5T's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Far East Hospitality 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: Q5T has a high level of physical assets or inventory.

Debt Coverage by Assets: Q5T's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: Q5T's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if Q5T has a sufficient allowance for bad loans.

Low Risk Liabilities: Q5T reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if Q5T has an acceptable proportion of non-loan assets held.

Low Risk Deposits: Q5T has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if Q5T has an appropriate level of bad loans.


Next Steps

Dividend

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

5.71%

Current Dividend Yield


Dividend Yield vs Market

company5.7%marketbottom25%2.5%markettop25%5.6%industryaverage5.2%forecastin3Years5.9%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Q5T's dividend (5.71%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: Q5T's dividend (5.71%) is in the top 25% of dividend payers in the SG market (5.59%)

Stable Dividend: Whilst dividend payments have been stable, Q5T has been paying a dividend for less than 10 years.

Growing Dividend: Q5T's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (51.3%), Q5T's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Q5T's dividends in 3 years are forecast to be thoroughly covered by earnings (0.06% payout ratio).


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?

4.0yrs

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

Compensation vs. Market: Gerald's total compensation ($USD448.62K) is about average for companies of similar size in the SG market ($USD441.60K).

Compensation vs Earnings: Gerald's compensation has been consistent with company performance over the past year.


Board Age and Tenure

4.0yrs

Average Tenure

66yo

Average Age

Experienced Board: Q5T's board of directors are considered experienced (4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


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

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: 7.3yrs
    • Compensation: S$100.00k
  • Kheng Wee (64yo)

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

    • Tenure: 1.3yrs
    • Compensation: S$107.50k
  • Willie Cheng (65yo)

    Lead Independent Director of FEO Hospitality Asset Management Pte Ltd

    • Tenure: 6.7yrs
    • Compensation: S$112.50k
  • Kyle Lee (67yo)

    Independent Director of FEO Hospitality Asset Management Pte Ltd

    • Tenure: 7.3yrs
    • Compensation: S$105.00k
  • Vivienne Lim

    Independent Director of FEO Hospitality Asset Management Pte Ltd

    • Tenure: 1.3yrs
    • Compensation: S$27.50k
  • Catherine Lee

    Independent Director of FEO Hospitality Asset Management Pte Ltd

    • Tenure: 0.3yrs

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$1.346b
  • 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 Analysis2019/10/15 12:50
End of Day Share Price2019/10/15 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.