SGX:Q5T

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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”). More Details


Snowflake Analysis

Reasonable growth potential and fair value.

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

Stable Share Price: Q5T has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-6.7%

Q5T

-0.3%

SG REITs

-0.9%

SG Market


1 Year Return

-19.6%

Q5T

-9.2%

SG REITs

-21.4%

SG Market

Return vs Industry: Q5T underperformed the SG REITs industry which returned -9.2% over the past year.

Return vs Market: Q5T exceeded the SG Market which returned -21.4% over the past year.


Shareholder returns

Q5TIndustryMarket
7 Day-6.7%-0.3%-0.9%
30 Day6.7%2.7%-2.1%
90 Day8.8%3.9%-3.6%
1 Year-15.5%-19.6%-4.8%-9.2%-17.2%-21.4%
3 Year-1.4%-16.5%24.0%4.7%-17.9%-27.8%
5 Year16.6%-14.0%60.5%18.0%0.03%-18.3%

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?

13.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: Q5T (SGD0.56) is trading below our estimate of fair value (SGD0.64)

Significantly Below Fair Value: 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 (23.2x) compared to the SG REITs industry average (16.9x).

PE vs Market: Q5T is poor value based on its PE Ratio (23.2x) compared to the SG market (12.9x).


Price to Earnings Growth Ratio

PEG Ratio: Q5T is good value based on its PEG Ratio (0.8x)


Price to Book Ratio

PB vs Industry: Q5T is good value based on its PB Ratio (0.6x) compared to the SG REITs industry average (0.8x).


Next Steps

Future Growth

How is Far East Hospitality Trust forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

29.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Q5T's forecast earnings growth (29.7% per year) is above the savings rate (2.2%).

Earnings vs Market: Q5T's earnings (29.7% per year) are forecast to grow faster than the SG market (20.8% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: Q5T's revenue (10.1% per year) is forecast to grow faster than the SG market (6.4% per year).

High Growth Revenue: Q5T's revenue (10.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Q5T's Return on Equity is forecast to be low in 3 years time (3.4%).


Next Steps

Past Performance

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

13.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: Q5T has a large one-off gain of SGD8.8M impacting its June 30 2020 financial results.

Growing Profit Margin: Q5T's current net profit margins (46.7%) are lower than last year (73.7%).


Past Earnings Growth Analysis

Earnings Trend: Q5T's earnings have grown by 13.1% per year over the past 5 years.

Accelerating Growth: Q5T's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: Q5T had negative earnings growth (-42.3%) over the past year, making it difficult to compare to the REITs industry average (-6.7%).


Return on Equity

High ROE: Q5T's Return on Equity (2.8%) is considered low.


Next Steps

Financial Health

How is Far East Hospitality Trust's financial position?


Financial Position Analysis

Short Term Liabilities: Q5T's short term assets (SGD46.9M) do not cover its short term liabilities (SGD153.0M).

Long Term Liabilities: Q5T's short term assets (SGD46.9M) do not cover its long term liabilities (SGD870.0M).


Debt to Equity History and Analysis

Debt Level: Q5T's debt to equity ratio (59.9%) is considered high.

Reducing Debt: Q5T's debt to equity ratio has increased from 46.2% to 59.9% over the past 5 years.

Debt Coverage: Q5T's debt is not well covered by operating cash flow (8.9%).

Interest Coverage: Q5T's interest payments on its debt are not well covered by EBIT (2x coverage).


Balance Sheet


Next Steps

Dividend

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

3.71%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: Q5T's dividend (3.71%) is higher than the bottom 25% of dividend payers in the SG market (2.55%).

High Dividend: Q5T's dividend (3.71%) is low compared to the top 25% of dividend payers in the SG market (5.67%).


Stability and Growth of Payments

Stable Dividend: Q5T has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: Q5T has only been paying a dividend for 8 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (47.7%), Q5T's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Q5T's dividends in 3 years are not forecast to be well covered by earnings (135.1% payout ratio).


Next Steps

Management

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

4.9yrs

Average board tenure


CEO

Gerald Lee (54 yo)

no data

Tenure

S$994,418

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 ($USD729.14K) is about average for companies of similar size in the SG market ($USD763.46K).

Compensation vs Earnings: Gerald's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Board Members

NamePositionTenureCompensationOwnership
Cheng Eng Huang
Independent Director of FEO Hospitality Asset Management Pte Ltd8.17yrsS$100.00k0.052%
SGD 569.6k
Kheng Jin Wee
Non-Independent & Non-Executive Chairman of FEO Hospitality Asset Management Pte Ltd2.17yrsS$135.00k0.033%
SGD 358.7k
Jue Hiang Cheng
Lead Independent Director of FEO Hospitality Asset Management Pte Ltd7.58yrsS$112.50k0.033%
SGD 353.2k
Khai Fatt Lee
Independent Director of FEO Hospitality Asset Management Pte Ltd8.17yrsS$105.00k0.032%
SGD 345.5k
Hui Bian Lim
Independent Director of FEO Hospitality Asset Management Pte Ltd2.17yrsS$62.50k0.0020%
SGD 22.0k
Khia Yee Lee
Independent Director of FEO Hospitality Asset Management Pte Ltd1.17yrsS$27.50k0.00070%
SGD 7.6k

4.9yrs

Average Tenure

67yo

Average Age

Experienced Board: Q5T's board of directors are considered experienced (4.9 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.


Top Shareholders

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$1.087b
  • Shares outstanding: 1.96b
  • 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 Analysis2020/09/24 19:14
End of Day Share Price2020/09/24 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.