SF Real Estate Investment Trust (2191) AI Stock Analysis

• Market Cap: €2.49B
• Dividend Yield: 8.38%
• Average Volume (3M): 892.51K
• Price to Earnings (P/E): 30.9
• Beta (1Y): 0.35
• Revenue Growth: 4.55%
• EPS Growth: -231.53%
• Country: HK
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 52
• Industry: REIT - Industrial
• EPS (TTM): -0.36
• Shares Outstanding: 820,355,700
• 10 Day Avg. Volume: 957,346
• 30 Day Avg. Volume: 892,515
• 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: 22.25% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0

• Rating: 53 Neutral
• Price Target: HK$3.00 ▼(-1.32%Downside)

The overall stock score is primarily impacted by significant financial challenges, including declining profitability and liquidity issues. While the technical analysis shows bullish momentum, the overbought conditions could lead to a correction. The valuation is mixed with a high dividend yield but a negative P/E ratio, indicating potential financial distress.

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 Uncertainty

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 invests in income-generating real estate that focuses on logistics properties. The company is headquartered in Hong Kong.

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
EBITDA	-248.04M	388.61M	314.71M	174.93M	218.72M
Net Income	-294.53M	219.47M	439.67M	174.27M	26.88M
Balance Sheet
Total Assets	6.98B	7.69B	7.82B	7.01B	6.16B
Cash, Cash Equivalents and Short-Term Investments	93.50M	190.25M	274.14M	397.45M	24.75M
Total Debt	2.50B	2.56B	2.65B	2.14B	2.93B
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: 3.04
• 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 HK:2191, the sentiment is Positive. The current price of 3.04 is above the 20-day moving average (MA) of 2.99, above the 50-day MA of 2.87, and above the 200-day MA of 2.88, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 59.86 is Neutral, neither overbought nor oversold. The STOCH value of 55.94 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
Sector *	65 Neutral	£989.01M	11.77	-0.08%	5.05%	10.32%	31.28%
2191	53 Neutral	€2.49B	30.90	-7.37%	8.38%	4.55%	-231.53%
PREUF		$283.37M	―	-1.09%	8.14%	―	―
RREIF		$186.74M	34.55	-1.57%	―	―	―
SGRRF			―	-0.78%	―	―	―
5C3		€145.15M	―	-5.63%	10.37%	―	―
2270	64 Neutral	HK$980.01M	22.38	12.90%	―	31.21%	1.00%