OTCPK:FRIV.F

Stock Analysis Report

Fortune Real Estate Investment Trust

Executive Summary

Fortune REIT is a real estate investment trust constituted by a trust deed entered into on 4 July 2003 (as amended) made between ARA Asset Management (Fortune) Limited, as the manager of Fortune REIT, and HSBC Institutional Trust Services (Asia) Limited, as the trustee of Fortune REIT.


Snowflake Analysis

Established dividend payer and good value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

FRIV.F

-4.7%

US REITs

-7.6%

US Market


1 Year Return

n/a

FRIV.F

11.6%

US REITs

10.2%

US Market

Return vs Industry: Insufficient data to determine how FRIV.F performed against the US REITs industry.

Return vs Market: Insufficient data to determine how FRIV.F performed against the US Market.


Shareholder returns

FRIV.FIndustryMarket
7 Day0%-4.7%-7.6%
30 Day-17.4%-1.5%-4.5%
90 Day-3.5%0.9%-0.6%
1 Yearn/a16.1%11.6%12.5%10.2%
3 Year-3.5%-3.5%31.7%15.3%37.1%28.3%
5 Year6.9%6.9%52.7%21.3%60.8%43.2%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

16.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FRIV.F ($1.09) is trading below our estimate of fair value ($1.29)

Significantly Below Fair Value: FRIV.F is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: FRIV.F is good value based on its PE Ratio (11.2x) compared to the REITs industry average (36.3x).

PE vs Market: FRIV.F is good value based on its PE Ratio (11.2x) compared to the US market (17.2x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FRIV.F is good value based on its PB Ratio (0.5x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

How is Fortune Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 10 analysts?

-12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FRIV.F's earnings are forecast to decline over the next 3 years (-16.4% per year).

Earnings vs Market: FRIV.F's earnings are forecast to decline over the next 3 years (-16.4% per year).

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

Revenue vs Market: FRIV.F's revenue (2.4% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: FRIV.F's revenue (2.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FRIV.F's Return on Equity is forecast to be low in 3 years time (2.9%).


Next Steps

Past Performance

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

4.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FRIV.F has a large one-off gain of HK$662.6M impacting its December 31 2019 financial results.

Growing Profit Margin: FRIV.F's current net profit margins (75.4%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: FRIV.F's earnings have grown by 4.2% per year over the past 5 years.

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

Earnings vs Industry: FRIV.F had negative earnings growth (-75.3%) over the past year, making it difficult to compare to the REITs industry average (5.9%).


Return on Equity

High ROE: FRIV.F's Return on Equity (4.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Fortune 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: FRIV.F has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

6.00%

Current Dividend Yield


Dividend Yield vs Market

company6.0%marketbottom25%1.5%markettop25%4.0%industryaverage3.7%forecastin3Years6.2%

Current dividend yield vs market & industry

Notable Dividend: FRIV.F's dividend (5.98%) is higher than the bottom 25% of dividend payers in the US market (1.52%).

High Dividend: FRIV.F's dividend (5.98%) is in the top 25% of dividend payers in the US market (3.9%)


Stability and Growth of Payments

Stable Dividend: FRIV.F's dividend payments have been volatile in the past 10 years.

Growing Dividend: FRIV.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (77.9%), FRIV.F's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: FRIV.F'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?

4.7yrs

Average board tenure


CEO

Justina Chiu (38yo)

5yrs

Tenure

0

Ms. Yu Chiu, also known as Justina, CFA, has been the Chief Executive Officer at ARA Asset Management Limited, a manager of Fortune Real Estate Investment Trust since February 3, 2015. Ms. Chiu serves as a ...


Board Members

NamePositionTenureCompensationOwnership
Yu Chiu
CEO & Executive Director of ARA Asset Management (Fortune) Limited5yrsno datano data
Eirene Yeung
Non-Executive Director of ARA Asset Management (Fortune) Limited17.1yrsno datano data
Kwok Hung Chiu
Non-Executive Director of ARA Asset Management (Fortune) Limited17.1yrsno datano data
Hwee Chiang Lim
Non-Executive Director of ARA Asset Management (Fortune) Limited16.8yrsno data0.16% HK$3.4m
Lai Chee Ma
Non-Executive Director of ARA Asset Management (Fortune) Limited4.7yrsno datano data
Sing Loi Chui
Independent Non Executive Chairman of ARA Asset Management (Fortune) Limited3.1yrsno datano data
Ai Phing Cheng
Independent Non-Executive Director of ARA Asset Management Limited3.1yrsno datano data
May Ann Yeo
Independent Non-Executive Director of ARA Asset Management (Fortune) Limited3yrsno datano data
Poh Wah Koh
Independent Non-Executive Director of ARA Asset Management (Fortune) Limited2.5yrsno datano data

4.7yrs

Average Tenure

62yo

Average Age

Experienced Board: FRIV.F's board of directors are considered experienced (4.7 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

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


Key Information

  • Name: Fortune Real Estate Investment Trust
  • Ticker: FRIV.F
  • Exchange: OTCPK
  • Founded: 2003
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: HK$16.597b
  • Listing Market Cap: HK$2.129b
  • Shares outstanding: 1.94b
  • Website: https://www.fortunereit.com/html/index.php

Location

  • Fortune Real Estate Investment Trust
  • 5 Temasek Boulevard
  • No. 12-01 Suntec Tower Five
  • Singapore
  • 38985
  • Singapore

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRIV.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDAug 2003
778SEHK (The Stock Exchange of Hong Kong Ltd.)YesUnitsHKHKDAug 2003

Biography

Fortune REIT is a real estate investment trust constituted by a trust deed entered into on 4 July 2003 (as amended) made between ARA Asset Management (Fortune) Limited, as the manager of Fortune REIT, and HSBC Institutional Trust Services (Asia) Limited, as the trustee of Fortune REIT. Fortune REIT is listed on The Stock Exchange of Hong Kong Limited and is the first REIT to hold assets in Hong Kong. Fortune REIT currently holds a portfolio of 16 private housing estate retail properties in Hong Kong comprising of 3 million square feet of retail space and 2,713 car parking spaces. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/27 01:17
End of Day Share Price2020/02/04 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.