OTCPK:SHTR.F

Stock Analysis Report

Sunlight Real Estate Investment Trust

Executive Summary

Sunlight REIT is a Hong Kong collective investment scheme constituted as a unit trust by the Trust Deed and is authorized under section 104 of the Securities and Futures Ordinance.

Rewards

PE ratio (10.7x) is below the US market (18.3x)

Risk Analysis

Earnings are forecast to decline by an average of -16.1% per year for the next 3 years

Unstable dividend track record

Large one-off items impacting financial results

Profit margins (88.4%) are lower than last year



Snowflake Analysis

Established dividend payer and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

0%

SHTR.F

1.5%

US REITs

0.06%

US Market


1 Year Return

n/a

SHTR.F

16.6%

US REITs

19.4%

US Market

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

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


Shareholder returns

SHTR.FIndustryMarket
7 Day0%1.5%0.06%
30 Day0%4.4%1.1%
90 Dayn/a7.5%8.9%
1 Yearn/a21.4%16.6%21.9%19.4%
3 Yearn/a39.0%21.6%48.9%39.3%
5 Yearn/a59.5%26.7%71.9%53.1%

Price Volatility Vs. Market

How volatile is Sunlight 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 Sunlight Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

10.67x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: SHTR.F ($0.67) is trading above our estimate of fair value ($0.59)

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


Price To Earnings Ratio

PE vs Industry: SHTR.F is good value based on its PE Ratio (10.7x) compared to the REITs industry average (36.6x).

PE vs Market: SHTR.F is good value based on its PE Ratio (10.7x) compared to the US market (18.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: SHTR.F is good value based on its PB Ratio (0.5x) compared to the US REITs industry average (2.1x).


Next Steps

Future Growth

How is Sunlight Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

-16.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: SHTR.F's earnings are forecast to decline over the next 3 years (-16.1% per year).

Earnings vs Market: SHTR.F's earnings are forecast to decline over the next 3 years (-16.1% per year).

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

Revenue vs Market: SHTR.F's revenue (2.8% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: SHTR.F's revenue (2.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: SHTR.F's Return on Equity is forecast to be low in 3 years time (2.7%).


Next Steps

Past Performance

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

-4.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: SHTR.F has a large one-off gain of HK$369.8M impacting its December 31 2019 financial results.

Growing Profit Margin: SHTR.F's current net profit margins (88.4%) are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: SHTR.F's earnings have declined by -4.4% per year over the past 5 years.

Accelerating Growth: SHTR.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: SHTR.F had negative earnings growth (-44.2%) over the past year, making it difficult to compare to the REITs industry average (8.2%).


Return on Equity

High ROE: SHTR.F's Return on Equity (4.8%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Sunlight 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: SHTR.F has a high level of physical assets or inventory.

Debt Coverage by Assets: SHTR.F's debt is not covered by short term assets (assets are 0.2x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

5.54%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.5%forecastin3Years5.6%

Current dividend yield vs market & industry

Notable Dividend: SHTR.F's dividend (5.54%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: SHTR.F's dividend (5.54%) is in the top 25% of dividend payers in the US market (3.7%)


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (80.8%), SHTR.F's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: SHTR.F's dividends in 3 years are forecast to be thoroughly covered by earnings (0.07% payout ratio).


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Keith Wu (55yo)

0

Mr. Shiu Kee Wu, also known as Keith, BS, MS, FHKIoD, serves as the Chief Executive Officer and Responsible Officer of Henderson Sunlight Asset Management Limited, Manager of Sunlight REIT. Mr. Shiu has ex ...


Leadership Team

NamePositionTenureCompensationOwnership
Shiu Kee Wu
CEO & Executive Director of Henderson Sunlight Property Management Limited0yrsno data0.042% HK$444.3k
Yuk Fong Lo
Chief Financial Officer of Henderson Sunlight Asset Management Limited8.1yrsno datano data
Yick Hah
Senior Manager of Operations & Administration - Henderson Sunlight Asset Management Limited2yrsno datano data
May Ling Yip
General Manager of Investment & Investor Relations - Henderson Sunlight Asset Management Limited0yrsno datano data
Hoi Yu
Compliance Manager of Henderson Sunlight Asset Management Limited1.1yrsno datano data
Siu Wah Chung
Company Secretary of Henderson Sunlight Asset Management Limited8.3yrsno datano data

5.0yrs

Average Tenure

Experienced Management: SHTR.F's management team is seasoned and experienced (5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Shiu Kee Wu
CEO & Executive Director of Henderson Sunlight Property Management Limited0yrsno data0.042% HK$444.3k
Kai Cheong Kwan
Independent Non-Executive Director of Henderson Sunlight Asset Management Limited14.1yrsno datano data
Ping Ho Kwok
Non-Executive Director of Henderson Sunlight Asset Management Limited0yrsno datano data
Siu Kee Au
Non-Executive Chairman of the Board of Henderson Sunlight Asset Management Limited9.7yrsno data0.092% HK$971.1k
Kwok Sang Tse
Independent Non-Executive Director of Henderson Sunlight Asset Management Limited14.1yrsno datano data
Tun Ho Kwok
Independent Non-Executive Director of Henderson Sunlight Asset Management Limited4.1yrsno data0.00072% HK$7.6k

11.9yrs

Average Tenure

64yo

Average Age

Experienced Board: SHTR.F's board of directors are seasoned and experienced ( 11.9 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

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


Key Information

  • Name: Sunlight Real Estate Investment Trust
  • Ticker: SHTR.F
  • Exchange: OTCPK
  • Founded: 2006
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: HK$8.166b
  • Listing Market Cap: HK$1.051b
  • Shares outstanding: 1.66b
  • Website: https://www.sunlightreit.com

Location

  • Sunlight Real Estate Investment Trust
  • Sunlight Tower
  • 30th Floor
  • Wan Chai
  • Hong Kong

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
435SEHK (The Stock Exchange of Hong Kong Ltd.)YesUnitsHKHKDDec 2006
Q9RDB (Deutsche Boerse AG)YesUnitsDEEURDec 2006
SHTR.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDDec 2006

Biography

Sunlight REIT is a Hong Kong collective investment scheme constituted as a unit trust by the Trust Deed and is authorized under section 104 of the Securities and Futures Ordinance. Sunlight REIT is listed on the Main Board of The Stock Exchange of Hong Kong Limited. The principal activity of Sunlight REIT and its subsidiaries (collectively referred to as the “Group”) is to own and invest in income-producing office and retail properties in Hong Kong with the objective of providing unitholders with regular and stable cash distributions with the potential for sustainable long term growth of such distributions and enhancement in value of the property portfolio. It has its principal place of business at 30th Floor, Sunlight Tower, 248 Queen’s Road East, Wan Chai, Hong Kong. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/19 01:43
End of Day Share Price2019/12/26 00:00
Earnings2019/12/31
Annual Earnings2019/06/30


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.