SGX:T82U

Stock Analysis Report

Suntec Real Estate Investment Trust

Executive Summary

Listed on 9 December 2004, Suntec REIT holds properties in Suntec City, Singapore’s largest integrated commercial development (including one of Singapore’s largest shopping Mall), a 60.8% interest in Suntec Singapore Convention & Exhibition Centre, a one-third interest in One Raffles Quay, a one-third interest in Marina Bay Financial Centre Towers 1 and 2 and the Marina Bay Link Mall, and a 30.0% interest in 9 Penang Road which is under construction.

Snowflake

Fundamentals

Second-rate dividend payer with questionable track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

-1.1%

T82U

0.07%

SG REITs

1.1%

SG Market


1 Year Return

3.3%

T82U

18.2%

SG REITs

2.6%

SG Market

Return vs Industry: T82U underperformed the SG REITs industry which returned 18% over the past year.

Return vs Market: T82U exceeded the SG Market which returned 0.9% over the past year.


Shareholder returns

T82UIndustryMarket
7 Day-1.1%0.07%1.1%
30 Day-3.1%0.2%-0.3%
90 Day-4.1%1.1%-5.9%
1 Year9.0%3.3%25.2%18.2%6.7%2.6%
3 Year26.6%7.8%43.4%18.6%15.5%3.2%
5 Year38.1%6.3%60.3%15.9%12.0%-6.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

17.33x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: T82U (SGD1.87) is trading above our estimate of fair value (SGD1.5)

Significantly Below Fair Value: T82U is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: T82U is poor value based on its PE Ratio (17.3x) compared to the REITs industry average (15.5x).

PE vs Market: T82U is poor value based on its PE Ratio (17.3x) compared to the SG market (13.4x).


Price to Earnings Growth Ratio

PEG Ratio: T82U is poor value based on its PEG Ratio (80.3x)


Price to Book Ratio

PB vs Industry: T82U is good value based on its PB Ratio (0.9x) compared to the SG REITs industry average (1x).


Next Steps

Future Growth

How is Suntec Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: T82U's forecast earnings growth (0.2% per year) is below the savings rate (2.3%).

Earnings vs Market: T82U's earnings (0.2% per year) are forecast to grow slower than the SG market (5.6% per year).

High Growth Earnings: T82U's earnings are forecast to grow, but not significantly.

Revenue vs Market: T82U's revenue (4.2% per year) is forecast to grow slower than the SG market (5.5% per year).

High Growth Revenue: T82U's revenue (4.2% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: T82U's Return on Equity is forecast to be low in 3 years time (7.1%).


Next Steps

Past Performance

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

-6.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: T82U's earnings have declined by -6.8% per year over the past 5 years.

Accelerating Growth: T82U's earnings growth over the past year (12.6%) exceeds its 5-year average (-6.8% per year).

Earnings vs Industry: T82U earnings growth over the past year (12.6%) exceeded the REITs industry 1.8%.


Return on Equity

High ROE: T82U's Return on Equity (5%) is considered low.


Return on Assets

ROA vs Industry: T82U's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: T82U's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Suntec 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: T82U has a high level of physical assets or inventory.

Debt Coverage by Assets: T82U's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: T82U's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if T82U has a sufficient allowance for bad loans.

Low Risk Liabilities: T82U reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if T82U has an acceptable proportion of non-loan assets held.

Low Risk Deposits: T82U has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if T82U has an appropriate level of bad loans.


Next Steps

Dividend

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

5.34%

Current Dividend Yield


Dividend Yield vs Market

company5.3%marketbottom25%2.5%markettop25%5.7%industryaverage5.2%forecastin3Years5.2%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: T82U's dividend (5.34%) is higher than the bottom 25% of dividend payers in the SG market (2.54%).

High Dividend: T82U's dividend (5.34%) is low compared to the top 25% of dividend payers in the SG market (5.7%).

Stable Dividend: T82U's dividends per share have been stable in the past 10 years.

Growing Dividend: T82U's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (142.3%), T82U's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: T82U's dividends in 3 years are forecast to be thoroughly covered by earnings (0.05% payout ratio).


Next Steps

Management

What is the CEO of Suntec Real Estate Investment Trust's salary, the management and board of directors tenure and is there insider trading?

2.6yrs

Average management tenure


CEO

Kee Hiong Chong 0

0.8yrs

Tenure

0

Mr. Chong Kee Hiong is the Chief Executive Officer and Executive Director of ARA Trust Management (Suntec) Limited (as manager of Suntec Real Estate Investment Trust) since December 31, 2018.Mr Chong Kee H ...


Management Age and Tenure

2.6yrs

Average Tenure

Experienced Management: T82U's management team is considered experienced (2.6 years average tenure).


Board Age and Tenure

2.8yrs

Average Tenure

62yo

Average Age

Experienced Board: T82U's board of directors are not considered experienced ( 2.8 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: T82U insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellS$1,170,13305 Sep 19
ARA Asset Management Limited
EntityCompany
Shares600,068
Max PriceS$1.95
SellS$421,28306 Aug 19
Wai-Wai Chow
EntityIndividual
Role
Member of the Board of Directors
Non-Executive Director of ARA Trust Management (Suntec) Limited
Shares221,728
Max PriceS$1.90
SellS$2,908,50131 Jul 19
ARA Asset Management Limited
EntityCompany
Shares1,500,000
Max PriceS$1.94
SellS$348,17029 Apr 19
BlackRock, Inc.
EntityCompany
Shares188,200
Max PriceS$1.85
BuyS$5,870,81024 Apr 19
ARA Asset Management Limited
EntityCompany
Shares3,004,969
Max PriceS$1.95
BuyS$2,966,72608 Feb 19
ARA Asset Management Limited
EntityCompany
Shares1,554,677
Max PriceS$1.91
SellS$4,716,50031 Jan 19
ARA Asset Management Limited
EntityCompany
Shares2,500,000
Max PriceS$1.89
BuyS$36,11231 Jan 19
BlackRock, Inc.
EntityCompany
Shares18,600
Max PriceS$1.94
BuyS$46,728,28520 Dec 18
Senz Holdings Limited
EntityCompany
Shares25,674,900
Max PriceS$1.82
BuyS$2,000,00019 Nov 18
Yigang Tang
EntityIndividual
Shares1,114,516
Max PriceS$1.79
SellS$139,43007 Nov 18
BlackRock, Inc.
EntityCompany
Shares80,100
Max PriceS$1.74
SellS$5,909,89724 Oct 18
ARA Asset Management Limited
EntityCompany
Shares3,151,946
Max PriceS$1.87

Ownership Breakdown


Management Team

  • Kar Tung Quek

    Director of Business Development of the ARA Group

    • Tenure: 14.3yrs
  • Patrick Lum

    Chief Executive officer of Suntec City Development Pte Ltd

    • Tenure: 0yrs
  • Stella Chiam

    Secretary & Director of Legal & Corporate Affairs - Suntec City Development Pte Ltd

    • Tenure: 0yrs
  • Sharon Yeoh (60yo)

    Company Secretary of ARA Trust Management (Suntec) Limited

    • Tenure: 0yrs
  • Keng Tay

    Acting Financial Controller of Suntec City Development Pte Ltd

    • Tenure: 0yrs
  • Melissa Chow

    Manager of Investor Relations - ARA Trust Management (Suntec) Limited

    • Tenure: 8.8yrs
  • Wai Chiang

    Company Secretary of ARA Trust Management (Suntec) Limited

    • Tenure: 0yrs
  • Dawn Lai

    Chief Operating Officer of ARA Trust Management (Suntec) Limited

    • Tenure: 1yrs
  • Ee Ng (43yo)

    Finance Director of ARA Trust Management (Suntec) Limited

    • Tenure: 2.6yrs
  • Kee Hiong Chong

    CEO & Executive Director of ARA Trust Management (Suntec) Limited

    • Tenure: 0.8yrs

Board Members

  • Peter Chan (59yo)

    Independent Non-Executive Director ARA Trust Management (Suntec) Limited

    • Tenure: 2.8yrs
    • Compensation: S$80.00k
  • John Chow (70yo)

    Non-Executive Director of ARA Trust Management (Suntec) Limited

    • Tenure: 12.3yrs
    • Compensation: S$60.00k
  • Gek Khim Chew (57yo)

    Non-Executive Chairman of ARA Trust Management (Suntec) Limited

    • Tenure: 5.5yrs
    • Compensation: S$120.00k
  • John Lim (62yo)

    Non-Executive Director of ARA Trust Management (Suntec) Limited

    • Tenure: 15.2yrs
    • Compensation: S$60.00k
  • Wai Han Lock (51yo)

    Independent Non-Executive Director of ARA Trust Management (Suntec) Limited

    • Tenure: 1.2yrs
    • Compensation: S$33.53k
  • Yee Yu-Foo (68yo)

    Independent Non-Executive Director of ARA Trust Management (Suntec) Limited

    • Tenure: 2.8yrs
    • Compensation: S$80.00k
  • Chee Meng Yap (64yo)

    Lead Independent Non-Executive Director

    • Tenure: 0.5yrs
  • Kee Hiong Chong

    CEO & Executive Director of ARA Trust Management (Suntec) Limited

    • Tenure: 0.8yrs

Company Information

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


Key Information

  • Name: Suntec Real Estate Investment Trust
  • Ticker: T82U
  • Exchange: SGX
  • Founded: 2004
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: S$5.232b
  • Shares outstanding: 2.80b
  • Website: https://www.suntecreit.com

Location

  • Suntec Real Estate Investment Trust
  • 5 Temasek Boulevard
  • #12-01
  • Singapore
  • 38985
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
T82USGX (Singapore Exchange)YesUNITSSGSGDDec 2004
P3GDB (Deutsche Boerse AG)YesUNITSDEEURDec 2004
SURV.FOTCPK (Pink Sheets LLC)YesUNITSUSUSDDec 2004

Biography

Listed on 9 December 2004, Suntec REIT holds properties in Suntec City, Singapore’s largest integrated commercial development (including one of Singapore’s largest shopping Mall), a 60.8% interest in Sunte ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/22 12:32
End of Day Share Price2019/10/22 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.