SGX:UD1U

Stock Analysis Report

Executive Summary

IREIT Global (SGX-UD1U) which was listed on 13 August 2014, is the first Singapore-listed real estate investment trust with the investment strategy of principally investing, directly or indirectly, in a portfolio of income-producing real estate in Europe which is used primarily for office, retail and industrial (including logistics) purposes, as well as real estate-related assets.

Rewards

Trading at 62% below its fair value

Earnings grew by 20% over the past year

Risk Analysis

Unstable dividend track record

Large one-off items impacting financial results



Snowflake Analysis

Good value with acceptable track record.

Share Price & News

How has IREIT Global's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: UD1U has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.6%

UD1U

2.0%

SG REITs

0.8%

SG Market


1 Year Return

10.1%

UD1U

17.4%

SG REITs

2.2%

SG Market

Return vs Industry: UD1U underperformed the SG REITs industry which returned 16.1% over the past year.

Return vs Market: UD1U exceeded the SG Market which returned 2.1% over the past year.


Shareholder returns

UD1UIndustryMarket
7 Day0.6%2.0%0.8%
30 Day3.1%5.1%2.5%
90 Day5.1%2.0%5.3%
1 Year18.8%10.1%24.6%17.4%6.4%2.2%
3 Year41.4%12.3%53.2%26.3%17.4%4.8%
5 Year57.3%-6.8%57.3%13.6%12.9%-6.1%

Price Volatility Vs. Market

How volatile is IREIT Global's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is IREIT Global undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: UD1U (SGD0.81) is trading below our estimate of fair value (SGD2.13)

Significantly Below Fair Value: UD1U is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: UD1U is good value based on its PE Ratio (7x) compared to the REITs industry average (15.3x).

PE vs Market: UD1U is good value based on its PE Ratio (7x) compared to the SG market (13.5x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate UD1U's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: UD1U is overvalued based on its PB Ratio (1.1x) compared to the SG REITs industry average (1x).


Next Steps

Future Growth

How is IREIT Global forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

0.5%

Forecasted Real Estate industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as IREIT Global has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has IREIT Global performed over the past 5 years?

34.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: UD1U has a large one-off gain of €47.7M impacting its September 30 2019 financial results.

Growing Profit Margin: UD1U's current net profit margins are higher than last year .


Past Earnings Growth Analysis

Earnings Trend: UD1U's earnings have grown significantly by 34.9% per year over the past 5 years.

Accelerating Growth: UD1U's earnings growth over the past year (20%) is below its 5-year average (34.9% per year).

Earnings vs Industry: UD1U earnings growth over the past year (20%) exceeded the REITs industry 7.1%.


Return on Equity

High ROE: UD1U's Return on Equity (15.7%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is IREIT Global'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: UD1U has a high level of physical assets or inventory.

Debt Coverage by Assets: UD1U's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

Asset Level: UD1U's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if UD1U has a sufficient allowance for bad loans.

Low Risk Liabilities: UD1U reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if UD1U has an acceptable proportion of non-loan assets held.

Low Risk Deposits: UD1U has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if UD1U has an appropriate level of bad loans.


Next Steps

Dividend

What is IREIT Global's current dividend yield, its reliability and sustainability?

6.45%

Current Dividend Yield


Dividend Yield vs Market

company6.5%marketbottom25%2.4%markettop25%5.4%industryaverage5.1%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: UD1U's dividend (6.55%) is higher than the bottom 25% of dividend payers in the SG market (2.5%).

High Dividend: UD1U's dividend (6.55%) is in the top 25% of dividend payers in the SG market (5.41%)


Stability and Growth of Payments

Stable Dividend: UD1U has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: UD1U's dividend payments have increased, but the company has only paid a dividend for 5 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.9%), UD1U's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of IREIT Global's salary, the management and board of directors tenure and is there insider trading?

5.5yrs

Average board tenure


CEO

Aymeric Thibord (44yo)

3.1yrs

Tenure

0

Mr. Aymeric Thibord is the Chief Executive Officer of IREIT Global Group Pte Ltd., Manager of IREIT Global. Most recently, he served as a Senior Director at US financial institution TIAA-CREF. He joined it ...


Board Age and Tenure

5.5yrs

Average Tenure

60yo

Average Age

Experienced Board: UD1U's board of directors are considered experienced (5.5 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

BuyS$2,279,99809 May 19
City Strategic Equity Pte. Ltd.
EntityCompany
Shares3,000,000
Max PriceS$0.76
BuyS$38,052,00206 May 19
Tikehau Capital
EntityCompany
Shares50,400,000
Max PriceS$0.76
SellS$174,63602 May 19
Chap Huat Lim
EntityIndividual
Shares230,000
Max PriceS$0.76
SellS$2,277,86402 May 19
Chap Huat Lim
EntityIndividual
Shares3,000,000
Max PriceS$0.76

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Boon Poh Choo (48yo)

    Chief Financial Officer of IREIT Global Group Pte Ltd

    • Wei Lee

      Secretary of IREIT Global Group Pte Ltd

      • Adeline Wang

        Secretary of IREIT Global Group Pte Ltd

        • Aymeric Thibord (44yo)

          Chief Executive Officer of IREIT Global Group Pte Ltd

          • Tenure: 3.1yrs
        • KEVIN TAN

          Head of Investor Relations


          Board Members

          • John Lim (79yo)

            Chairman of the Board of IREIT Global Group Pte Ltd

            • Compensation: €95.00k
          • Kelvin Tan (54yo)

            Independent Non-Executive Director of IREIT Global Group Pte Ltd

            • Tenure: 5.5yrs
            • Compensation: €80.00k
          • Jinquan Tong (64yo)

            Non-Executive Director of IREIT Global Group Pte Ltd

            • Tenure: 5.5yrs
            • Compensation: €50.00k
          • De Geis De Guyon Bruno Alfred Mari de Pampelonne (60yo)

            Non-Executive Director of IREIT Global Group Pte Ltd

            • Tenure: 3.2yrs
          • Nir Ellenbogen (58yo)

            Independent Non-Executive Director of IREIT Global Group Pte Ltd

            • Tenure: 6.1yrs
            • Compensation: €65.00k
          • Frank Khoo

            Non-Executive Director of IREIT Global Group Pte Ltd

            • Tenure: 1yrs

          Company Information

          IREIT Global's company bio, employee growth, exchange listings and data sources


          Key Information

          • Name: IREIT Global
          • Ticker: UD1U
          • Exchange: SGX
          • Founded:
          • Industry: Office REITs
          • Sector: Real Estate
          • Market Cap: S$522.523m
          • Shares outstanding: 637.22m
          • Website: https://www.ireitglobal.com

          Location

          • IREIT Global
          • 8 Marina View
          • #15-07A Asia Square Tower 1
          • Singapore
          • 18960
          • Singapore

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          UD1USGX (Singapore Exchange)YesUnitsSGSGDAug 2014

          Biography

          IREIT Global (SGX-UD1U) which was listed on 13 August 2014, is the first Singapore-listed real estate investment trust with the investment strategy of principally investing, directly or indirectly, in a portfolio of income-producing real estate in Europe which is used primarily for office, retail and industrial (including logistics) purposes, as well as real estate-related assets. IREIT Global’s current portfolio comprises five freehold properties strategically located in the German cities of Berlin, Bonn, Darmstadt, Münster and Munich with a total net lettable area of approximately 200,900 sqm and 3,400 car park spaces. IREIT Global is managed by IREIT Global Group Pte. Ltd. (the Manager), which is jointly owned by Tikehau Capital and City Developments Limited (CDL). Tikehau Capital is an asset management and investment group listed in France, while CDL is a leading real estate operating company listed in Singapore. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/18 12:52
          End of Day Share Price2020/01/17 00:00
          Earnings2019/09/30
          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.