SF Real Estate Investment Trust (2191) AI Stock Analysis

• Market Cap: €2.41B
• Dividend Yield: 11.11%
• Average Volume (3M): 759.13K
• Price to Earnings (P/E): 30.9
• Beta (1Y): 0.36
• Revenue Growth: 4.55%
• EPS Growth: -231.53%
• Country: HK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 69
• Industry: REIT - Industrial
• EPS (TTM): -0.36
• Shares Outstanding: 820,355,700
• 10 Day Avg. Volume: 914,286
• 30 Day Avg. Volume: 759,133
• PEG Ratio: 0.04
• Price to Book (P/B): 0.55
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 14.42
• 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: €3.72
• Price Target Upside: 26.40% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: HK$3.00 ▲(2.04%Upside)

SF Real Estate Investment Trust's overall stock score reflects significant financial performance challenges, particularly with declining profitability and cash flow issues. While the balance sheet is relatively stable, the absence of revenue growth and negative net income are substantial concerns. Technical analysis presents a mixed outlook, and valuation suggests caution due to negative earnings, despite a high dividend yield. Investors should be cautious and consider potential risks before investing.

Positive Factors

Dividend Yield

SF REIT offers an attractive yield of approximately 8%, maintaining a BUY recommendation at this stage with a Dividend Discount Model-based target price of HKD3.70.

Parental Support

Strong parental support with over 80% of the gross lettable area leased to SFH Group tenants, providing stability with guaranteed leases by its parent company, S.F. Holding.

Negative Factors

Financial Leverage

Gearing rose to 35.9% amid lower portfolio valuation, indicating increased financial leverage.

Lease Renewal

Progress on lease renewal with SFH Group is crucial, as leases accounting for over 80% of the portfolio's gross lettable area are scheduled for renewal in 2026, affecting the REIT’s earnings prospects.

Logistics Demand

Any further deterioration in logistics demand in Hong Kong and China should weigh on the sentiment towards the stock.

SF Real Estate Investment Trust Business Overview & Revenue Model

Company Description

SF Real Estate Investment Trust (2191) is a real estate investment trust focused on acquiring, owning, and managing income-generating properties. The company primarily invests in a diversified portfolio of commercial properties, including retail, office, and industrial sectors. SF Real Estate Investment Trust aims to provide stable and growing dividends to its investors by leveraging its expertise in property management and strategic acquisitions.

How the Company Makes Money

SF Real Estate Investment Trust generates revenue primarily through the leasing of its owned properties. The company earns rental income from tenants occupying its retail, office, and industrial spaces. Additionally, SF Real Estate Investment Trust may engage in strategic property sales, resulting in capital gains that contribute to its earnings. The trust's revenue model is bolstered by long-term lease agreements, which provide a steady cash flow. Partnerships with property management firms and real estate developers are significant factors that support the trust's operational efficiency and expansion strategy.

SF Real Estate Investment Trust Financial Statement Overview

Summary

SF Real Estate Investment Trust is facing significant financial challenges, particularly with declining profitability and cash flow issues. While the balance sheet remains relatively stable, the absence of revenue growth and negative net income are substantial concerns. The company needs to address these operational inefficiencies to improve financial health and investor confidence.

Income Statement

The income statement shows a decline in revenue growth with a negative net income in the most recent year, indicating potential operational challenges. Margins have significantly deteriorated, with the EBIT margin turning negative in 2024, which is a concern for profitability.

Balance Sheet

The balance sheet reflects a stable equity position with a moderate debt-to-equity ratio. However, the equity ratio indicates a reliance on liabilities, and the recent increase in total debt could pose future financial risks if not managed properly.

Cash Flow

The cash flow statement indicates a concerning trend with zero operating and free cash flows reported in 2024, implying potential liquidity issues. The absence of positive cash flows could impact the company's ability to sustain operations without external financing.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
445.99M	444.92M	421.47M	244.27M	279.00M
	Gross Profit
343.25M	357.65M	343.56M	194.89M	216.24M
	EBIT
-255.47M	378.00M	613.69M	243.47M	160.61M
	EBITDA
-248.04M	388.61M	314.71M	174.93M	218.72M
	Net Income Common Stockholders
-294.53M	219.47M	439.67M	174.27M	26.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
93.50M	190.25M	274.14M	397.45M	24.75M
	Total Assets
6.98B	7.69B	7.82B	7.01B	6.16B
	Total Debt
2.50B	2.56B	2.65B	2.14B	2.93B
	Net Debt
2.41B	2.37B	2.38B	1.74B	2.91B
	Total Liabilities
3.30B	3.46B	3.56B	2.92B	3.95B
	Stockholders Equity
3.68B	4.23B	4.26B	4.09B	2.21B
Cash Flow		Free Cash Flow
247.73M	241.27M	161.42M	108.59M	209.42M
	Operating Cash Flow
249.30M	245.87M	163.77M	108.77M	213.84M
	Investing Cash Flow
36.77M	93.46M	-187.09M	-1.40B	-117.36M
	Financing Cash Flow
-382.38M	-422.84M	-98.87M	1.69B	-78.79M

SF Real Estate Investment Trust Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 2.94
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:2191, the sentiment is Positive. The current price of 2.94 is above the 20-day moving average (MA) of 2.87, above the 50-day MA of 2.77, and above the 200-day MA of 2.85, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 65.74 is Neutral, neither overbought nor oversold. The STOCH value of 78.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:2191.

SF Real Estate Investment Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
2270	64 Neutral	HK$942.79M	22.88	12.90%	―	31.21%	-3.72%
Sector *	61 Neutral	$2.83B	10.72	0.40%	6.10%	5.80%	-21.26%
0808	59 Neutral	HK$2.07B	―	-1.09%	8.48%	-5.60%	-1261.11%
1881	54 Neutral	$1.40B	9.38	-1.57%	―	13.96%	-176.96%
1426	54 Neutral	HK$2.46B	43.06	-0.78%	9.10%	-5.67%	40.95%
2191	53 Neutral	€2.41B	30.90	-7.37%	11.11%	4.55%	-231.53%
1503	49 Neutral	€1.38B	―	-5.63%	9.18%	3.93%	-5.97%