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.

Rewards

Trading at 20.7% below its fair value

Earnings grew by 27.1% over the past year

Pays a reliable dividend of 7.61%

Risk Analysis

Earnings are forecast to decline by an average of -17.5% per year for the next 3 years

Dividend of 7.61% is not well covered by earnings

Highly volatile share price over past 3 months

Large one-off items impacting financial results

+ 1 more risk


Snowflake Analysis

Undervalued average dividend payer.


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

Stable Share Price: T82U's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.8%

T82U

8.5%

SG REITs

5.3%

SG Market


1 Year Return

-36.9%

T82U

-16.4%

SG REITs

-25.9%

SG Market

Return vs Industry: T82U underperformed the SG REITs industry which returned -18.2% over the past year.

Return vs Market: T82U underperformed the SG Market which returned -27.3% over the past year.


Shareholder returns

T82UIndustryMarket
7 Day6.8%8.5%5.3%
30 Day-26.5%-19.5%-18.7%
90 Day-32.1%-22.9%-24.5%
1 Year-33.5%-36.9%-11.4%-16.4%-22.7%-25.9%
3 Year-18.6%-30.4%12.5%-6.5%-18.4%-27.1%
5 Year-11.8%-33.0%20.8%-12.8%-17.0%-31.2%

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?

20.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: T82U (SGD1.25) is trading below our estimate of fair value (SGD1.58)

Significantly Below Fair Value: T82U is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: T82U is good value based on its PE Ratio (8.8x) compared to the REITs industry average (10.2x).

PE vs Market: T82U is good value based on its PE Ratio (8.8x) compared to the SG market (10.2x).


Price to Earnings Growth Ratio

PEG Ratio: T82U's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: T82U is good value based on its PB Ratio (0.6x) compared to the SG REITs industry average (0.6x).


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?

-17.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: T82U's earnings are forecast to decline over the next 3 years (-17.5% per year).

Earnings vs Market: T82U's earnings are forecast to decline over the next 3 years (-17.5% per year).

High Growth Earnings: T82U's earnings are forecast to decline over the next 3 years.

Revenue vs Market: T82U's revenue is expected to decline over the next 3 years (-5.6% per year).

High Growth Revenue: T82U's revenue is forecast to decline over the next 3 years (-5.6% 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 (3.8%).


Next Steps

Past Performance

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

-3.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: T82U has a large one-off gain of SGD154.4M impacting its December 31 2019 financial results.

Growing Profit Margin: T82U's current net profit margins (74.5%) are higher than last year (65.1%).


Past Earnings Growth Analysis

Earnings Trend: T82U's earnings have declined by -3.3% per year over the past 5 years.

Accelerating Growth: T82U's earnings growth over the past year (27.1%) exceeds its 5-year average (-3.3% per year).

Earnings vs Industry: T82U earnings growth over the past year (27.1%) exceeded the REITs industry 4.4%.


Return on Equity

High ROE: T82U's Return on Equity (6.5%) is considered low.


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?

7.61%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: T82U's dividend (7.61%) is higher than the bottom 25% of dividend payers in the SG market (3.27%).

High Dividend: T82U's dividend (7.61%) is in the top 25% of dividend payers in the SG market (7.07%)


Stability and Growth of Payments

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 (115.9%), 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

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

3.0yrs

Average management tenure


CEO

Kee Hiong Chong

1.17s

Tenure

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 ...


Leadership Team

NamePositionTenureCompensationOwnership
Kee Hiong Chong
CEO & Executive Director of ARA Trust Management (Suntec) Limited1.17yrsno datano data
Ee Ng
Finance Director of ARA Trust Management (Suntec) Limited3yrsno datano data
Dawn Lai
Chief Operating Officer of ARA Trust Management (Suntec) Limited1.42yrsno data0.00014% SGD4.9k
Melissa Chow
Manager of Investor Relations - ARA Trust Management (Suntec) Limited9.17yrsno datano data
Kok Lum
Chief Executive officer of Suntec City Development Pte Ltdno datano datano data
Kar Choo Yeoh
Company Secretary of ARA Trust Management (Suntec) Limitedno datano datano data
Wai Chiang
Company Secretary of ARA Trust Management (Suntec) Limitedno datano datano data
Kar Tung Quek
Director of Business Development of the ARA Group14.67yrsno datano data
Soon Siew Chiam
Secretary & Director of Legal & Corporate Affairs - Suntec City Development Pte Ltdno datano datano data
Keng Tay
Acting Financial Controller of Suntec City Development Pte Ltdno datano datano data

3.0yrs

Average Tenure

Experienced Management: T82U's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Kee Hiong Chong
CEO & Executive Director of ARA Trust Management (Suntec) Limited1.17yrsno datano data
Pee Chan
Independent Non-Executive Director ARA Trust Management (Suntec) Limited3.17yrsS$80.00kno data
Wai-Wai Chow
Non-Executive Director of ARA Trust Management (Suntec) Limited12.67yrsS$60.00k0.071% SGD2.5m
Gek Khim Chew
Non-Executive Chairman of ARA Trust Management (Suntec) Limited5.83yrsS$120.00kno data
Hwee Chiang Lim
Non-Executive Director of ARA Trust Management (Suntec) Limited15.58yrsS$60.00k0.14% SGD5.0m
Wai Han Lock
Independent Non-Executive Director of ARA Trust Management (Suntec) Limited1.58yrsS$33.53kno data
Yee Yu-Foo
Independent Non-Executive Director of ARA Trust Management (Suntec) Limited3.17yrsS$80.00kno data
Chee Meng Yap
Lead Independent Non-Executive Director of ARA Trust Management (Suntec) Limited0.83yrno datano data

3.2yrs

Average Tenure

62yo

Average Age

Experienced Board: T82U's board of directors are considered experienced (3.2 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: T82U insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.5%.


Top Shareholders

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$3.486b
  • Shares outstanding: 2.81b
  • 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 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. Suntec REIT holds a 100% interest in a commercial building located at 177 Pacific Highway, Sydney, a 50.0% interest in Southgate Complex, Melbourne, a 50.0% interest in a commercial building under development which is located at Olderfleet 477 Collins Street, Melbourne and a 100% interest in a commercial building located at 55 Currie Street, Adelaide, Australia. Its aim is to invest in income-producing real estate which is primarily used for office and/or retail purposes. Suntec REIT is managed by an external manager, ARA Trust Management (Suntec) Limited. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 12:33
End of Day Share Price2020/03/31 00:00
Earnings2019/12/31
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.