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Prosperity Real Estate Investment Trust (PREUF)
OTHER OTC:PREUF

Prosperity Real Estate Investment (PREUF) AI Stock Analysis

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Positive Factors
Dividend Yield
Prosperity REIT offers a stable dividend yield of approximately 10%, which is attractive for investors.
Government Policy
Any policy stimulus announced by the Chinese government could boost economic growth in Hong Kong and positively impact office leasing demand.
Lease Renewals
Prosperity REIT has concluded renewals for more than 70% of leases expiring in 1H25, pointing to low vacancy risk in the near term.
Negative Factors
Interest Rates
A prolonged high interest rate environment could adversely impact its distribution income and valuation.
Leasing Demand
Any further deterioration in leasing demand for decentralised office space could drag its earnings outlook and unit price performance.
Market Conditions
Portfolio rental reversion turned more negative at 6.4%, indicating challenging market conditions.

Prosperity Real Estate Investment (PREUF) vs. SPDR S&P 500 ETF (SPY)

Prosperity Real Estate Investment Business Overview & Revenue Model

Company DescriptionProsperity REIT [SEHK: 808] is a Hong Kong collective investment scheme authorized under section 104 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong). Prosperity REIT owns a diverse portfolio of seven high-quality properties in the decentralized business districts of Hong Kong, comprising all, or a portion of, three Grade A office buildings, one commercial building, two industrial/office buildings and one industrial building, with a total gross rentable area of about 1.28 million sq. ft.
How the Company Makes Money

Prosperity Real Estate Investment Financial Statement Overview

Summary
Prosperity Real Estate Investment's financial health presents a mixed picture. While the company demonstrates strong EBITDA margins and a stable balance sheet with manageable leverage, the recent decline in revenue and negative net income raise concerns. The lack of recent cash flow data exacerbates the uncertainty about the company's current liquidity position. Thus, while there are strengths in operational efficiency and capital structure, profitability and cash generation require attention.
Income Statement
55
Neutral
Prosperity Real Estate Investment has experienced declining revenue over the past years, with a 2.73% decrease from 2023 to 2024. The Gross Profit Margin for 2024 stood at 64.7%, a slight decrease from previous years. The company has faced negative Net Income in recent years, indicating challenges in profitability. EBITDA margin remains strong at 87.06% in 2024, although net losses highlight underlying issues in operations.
Balance Sheet
70
Positive
The company's balance sheet shows a strong Equity Ratio of 69.33% in 2024, indicating a solid capital structure. The Debt-to-Equity ratio is manageable at 0.36, suggesting reasonable leverage. Return on Equity has been negative due to recent net losses, reflecting profitability challenges. Overall, the balance sheet remains stable with good equity levels.
Cash Flow
40
Negative
The cash flow situation is concerning with no operating or free cash flow reported for 2024, indicating potential liquidity issues. Previous years demonstrated positive free cash flow, but the lack of recent data questions the company's ability to generate cash from operations. Cash flow metrics need to be improved to support financial stability.
Breakdown
Dec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
425.37M437.31M428.81M423.06M457.47M
Gross Profit
275.16M299.31M280.04M276.57M306.10M
EBIT
268.03M280.10M369.10M317.58M208.27M
EBITDA
370.38M278.36M369.10M23.89M208.27M
Net Income Common Stockholders
-74.64M-5.67M74.89M57.02M-874.50M
Balance SheetCash, Cash Equivalents and Short-Term Investments
47.32M61.01M100.37M205.96M351.79M
Total Assets
9.63B9.81B9.98B10.19B10.51B
Total Debt
2.40B2.35B2.31B2.32B2.33B
Net Debt
2.36B2.28B2.21B2.12B1.98B
Total Liabilities
2.95B2.92B2.88B2.92B2.97B
Stockholders Equity
6.68B6.89B7.10B7.26B7.54B
Cash FlowFree Cash Flow
247.65M283.91M222.63M260.51M236.10M
Operating Cash Flow
269.51M306.86M243.14M267.03M239.95M
Investing Cash Flow
-21.57M-21.75M-20.50M-6.52M-3.86M
Financing Cash Flow
-261.63M-324.47M-328.23M-406.34M-271.39M

Prosperity Real Estate Investment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
$269.60M-1.09%8.95%
61
Neutral
$2.83B10.920.41%8438.90%5.75%-21.03%
-0.78%
$469.62M31.671.17%6.09%
$491.57M-2.11%6.80%
DE5C3
€150.03M-5.63%10.29%
55
Neutral
¥3.16B-3.39%0.84%-3.16%-28.30%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
PREUF
Prosperity Real Estate Investment
0.17
-0.03
-15.00%
SGRRF
Spring Real Estate Investment
SHTRF
Sunlight Real Estate Investment
0.38
0.02
5.56%
YUXXF
Yuexiu Real Estate Investment
0.13
-0.06
-31.58%
DE:5C3
China Merchants Commercial Real Estate Investment Trust
0.13
0.01
8.33%
HK:87001
Hui Xian Real Estate Investment Trust
0.48
-0.20
-29.41%
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.