ESR-REIT (9A4U) AI Stock Analysis

• Market Cap: S$2.27B
• Dividend Yield: 6.6%
• Average Volume (3M): 1.36M
• Price to Earnings (P/E): ―
• Beta (1Y): 0.81
• Revenue Growth: 10.51%
• EPS Growth: -40.93%
• Country: SG
• Employees: 83
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 0.02
• Shares Outstanding: 803,677,200
• 10 Day Avg. Volume: 663,185
• 30 Day Avg. Volume: 1,358,836
• PEG Ratio: -0.68
• Price to Book (P/B): 4.55
• Price to Sales (P/S): 32.16
• P/FCF Ratio: 48.95
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0

• Rating: 56 Neutral
• Price Target: S$3.00 ▲(6.38% Upside)

The overall stock score is driven by financial stability concerns due to ongoing net losses and high leverage. While strong cash flow generation and bullish technical indicators are positive factors, the negative P/E ratio and overbought technical signals limit upside potential.

Positive Factors

Negative Factors

ESR-REIT Business Overview & Revenue Model

Company Description

ESR-REIT is a leading New Economy and future-ready Asia Pacific S-REIT. Listed on the Singapore Exchange Securities Trading Limited since 25 July 2006, ESR-REIT invests in quality income-producing industrial properties in key gateway markets. As at 31 December 2024, ESR-REIT holds interests in a diversified portfolio of logistics properties, high-specifications industrial properties, business parks and general industrial properties with total assets of approximately S$6.0 billion. Its portfolio comprises 72 properties (excluding 48 Pandan Road held through a joint venture) located across the developed markets of Singapore (52 assets), Australia (18 assets) and Japan (2 assets), with a total gross floor area of approximately 2.5 million sqm, as well as investments in three property funds in Australia. ESR-REIT is also a constituent of the FTSE EPRA Nareit Global Real Estate Index. ESR-REIT is managed by ESR-REIT Management (S) Limited (the “Manager”) and sponsored by ESR Group Limited (“ESR”). The Manager is owned by ESR (99.0%) and Shanghai Summit Pte. Ltd. (1.0%), respectively.

How the Company Makes Money

ESR-REIT generates revenue primarily through rental income from its portfolio of industrial properties. The REIT enters into long-term lease agreements with tenants, which provides a stable and predictable cash flow. Additionally, ESR-REIT may benefit from capital appreciation of its properties over time, enhancing its overall asset value. Key revenue streams include rental income, service charges, and potential income from property management services. The company also engages in strategic partnerships and collaborations with other real estate firms and developers, which can lead to joint ventures and further investment opportunities, thereby contributing to its earnings.

ESR-REIT Financial Statement Overview

Summary

ESR-REIT faces challenges in profitability with net losses and declining revenue. However, strong cash flow generation provides liquidity and investment potential. A solid equity base offers some financial stability, but rising debt is a concern.

Income Statement

The company's gross profit margin remained stable, indicating efficient cost management. However, consistent net losses over recent years highlight profitability challenges. Revenue has shown fluctuations, with a decline in the latest period, affecting overall income stability. The absence of EBIT and low EBITDA margins further underscore profitability concerns.

Balance Sheet

The debt-to-equity ratio has increased, reflecting higher leverage which poses a risk to financial stability. Despite this, the company maintains a solid equity base with a reasonable equity ratio, which offers some balance sheet strength. However, the negative ROE indicates a lack of returns on shareholders' equity, primarily due to recurring net losses.

Cash Flow

The company demonstrates strong operating cash flow relative to net income, indicating good cash generation capabilities despite net losses. Free cash flow is positive and growing, which is a positive sign for liquidity and potential reinvestment opportunities. However, the overall cash flow is impacted by high investing cash outflows.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	415.84M	370.50M	386.35M	348.57M	248.99M	229.92M
Gross Profit	281.48M	261.65M	251.24M	228.38M	173.26M	164.21M
EBITDA	0.00	8.56M	244.89M	217.87M	155.65M	126.26M
Net Income	-86.03M	-127.78M	-67.45M	-278.26M	101.52M	9.69M
Balance Sheet
Total Assets	5.91B	6.01B	5.11B	5.65B	3.33B	3.19B
Cash, Cash Equivalents and Short-Term Investments	67.69M	83.94M	41.98M	45.58M	24.15M	18.10M
Total Debt	2.81B	2.86B	2.15B	2.61B	1.41B	1.45B
Total Liabilities	3.25B	3.33B	2.34B	2.81B	1.58B	1.59B
Stockholders Equity	2.59B	2.62B	2.77B	2.75B	1.75B	1.60B
Cash Flow
Free Cash Flow	315.09M	243.43M	167.27M	95.06M	124.29M	150.50M
Operating Cash Flow	315.09M	269.62M	260.08M	193.63M	152.77M	161.44M
Investing Cash Flow	-486.99M	-436.95M	360.85M	-267.02M	-149.34M	-6.12M
Financing Cash Flow	182.43M	200.41M	-626.33M	93.14M	2.62M	-152.88M

ESR-REIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SG:9A4U, the sentiment is Positive. The current price of 2.82 is above the 20-day moving average (MA) of 2.81, above the 50-day MA of 2.80, and above the 200-day MA of 2.43, indicating a bullish trend. The MACD of <0.01 indicates Positive momentum. The RSI at 58.79 is Neutral, neither overbought nor oversold. The STOCH value of 63.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SG:9A4U.

ESR-REIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
JYEU	73 Outperform	S$1.58B	29.26	2.88%	5.62%	-6.64%	-12.15%
BUOU	70 Outperform	$3.65B	27.03	3.21%	7.56%	11.98%	―
O5RU	68 Neutral	S$1.10B	33.50	3.17%	7.12%	5.21%	-25.46%
M44U	66 Neutral	$6.42B	35.20	2.72%	6.14%	-1.47%	-39.12%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
9A4U	56 Neutral	S$2.27B	―	-4.88%	6.60%	10.51%	-40.93%
TS0U	54 Neutral	S$1.90B	―	-2.15%	6.03%	-11.65%	-137.98%

ESR-REIT Corporate Events

ESR-REIT Enhances 16 Tai Seng Street with Sustainable Upgrades

ESR-REIT has successfully completed an Asset Enhancement Initiative at 16 Tai Seng Street, Singapore, increasing the property’s industrial space and achieving a BCA Green Mark ‘Gold’ certification. The enhancements, including new lifts, upgraded facilities, and sustainable features like solar panels, aim to create a more efficient and future-ready environment for tenants, potentially strengthening ESR-REIT’s market position and appeal to environmentally conscious stakeholders.

The most recent analyst rating on (SG:9A4U) stock is a Buy with a S$3.60 price target. To see the full list of analyst forecasts on ESR-REIT stock, see the SG:9A4U Stock Forecast page.

ESR-REIT Secures Favorable Tax Ruling for S$125 Million Securities

ESR-REIT Management (S) Limited announced that it has obtained a favorable tax ruling from the Inland Revenue Authority of Singapore (IRAS) regarding its S$125 million 5.75% subordinated perpetual securities. The IRAS has classified these securities as ‘debt securities’ for tax purposes, allowing holders to benefit from tax concessions and exemptions under the Income Tax Act. This classification could enhance the attractiveness of the securities to investors, potentially impacting the company’s financial operations and market positioning positively.

The most recent analyst rating on (SG:9A4U) stock is a Buy with a S$3.60 price target. To see the full list of analyst forecasts on ESR-REIT stock, see the SG:9A4U Stock Forecast page.

ESR-REIT Conducts 16th AGM with Key Developments and Paperless Voting

ESR-REIT held its 16th Annual General Meeting at the Suntec Singapore Convention & Exhibition Centre, where key developments and the performance of the Trust for the year 2024 were presented. The meeting included a poll voting process conducted in a paperless manner, with resolutions voted on by unitholders through a wireless handheld device. The Chairperson, Ms. Stefanie Yuen Thio, facilitated the meeting and voting process, ensuring all proxy forms were accounted for and verified by independent scrutineers.

The most recent analyst rating on (SG:9A4U) stock is a Buy with a S$0.36 price target. To see the full list of analyst forecasts on ESR-REIT stock, see the SG:9A4U Stock Forecast page.

ESR-REIT Holds EGM to Approve Proposed Unit Consolidation

ESR-REIT held an Extraordinary General Meeting (EGM) to discuss and vote on a Proposed Unit Consolidation. The meeting was chaired by Ms. Stefanie Yuen Thio and included a presentation by CEO Adrian Chui on the benefits of the proposal. The resolution was put to a poll vote, conducted in a paperless manner, with the Chairperson casting votes as directed by the Unitholders.

The most recent analyst rating on (SG:9A4U) stock is a Buy with a S$0.36 price target. To see the full list of analyst forecasts on ESR-REIT stock, see the SG:9A4U Stock Forecast page.