Sunlight Real Estate Investment Trust EBITDA Margin jumped on 71.6 pp from 203% to 275% in 2015 and Revenue increased on 9.5%
10/09/2015 • About Sunlight Real Estate Investment Trust (
$435) • By InTwits
Sunlight Real Estate Investment Trust reported FY2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Sunlight Real Estate Investment Trust has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.3%. At the same time it's a lot of higher than industry average of 13.8%.
- CAPEX is quite volatile: 23.4 in FY2015, 35.3 in FY2014, 4.6 in FY2013, 8.3 in FY2012, 6.4 in FY2011
- The company has highly profitable business model: ROIC is at 12.6%
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Sunlight Real Estate Investment Trust ($435) key annual financial indicators
| mln. HKD | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 532.5 | 581.7 | 630.2 | 688.9 | 754.5 | 9.5% |
| SG&A | 79.8 | 89.7 | 91.9 | 105.1 | 120.0 | 14.2% |
| EBITDA | 1,830.2 | 1,177.1 | 1,850.5 | 1,401.3 | 2,074.6 | 48.0% |
| Net Income | 1,655.1 | 1,027.3 | 1,674.6 | 1,230.1 | 1,902.7 | 54.7% |
Balance Sheet
|
|---|
| Cash | 0.2 | 1.3 | 3.1 | 35.1 | 29.1 | -17.1% |
| Short Term Debt | 3,948.1 | 0.0 | 0.0 | 0.0 | 10.0 | |
| Long Term Debt | 0.0 | 3,915.9 | 3,874.8 | 3,872.3 | 3,884.1 | 0.3% |
Cash flow
|
|---|
| Capex | 6.4 | 8.3 | 4.6 | 35.3 | 23.4 | -33.7% |
Ratios
|
|---|
| Revenue growth | 9.0% | 9.2% | 8.3% | 9.3% | 9.5% | |
| EBITDA growth | 10.9% | -35.7% | 57.2% | -24.3% | 48.0% | |
| EBITDA Margin | 343.7% | 202.4% | 293.6% | 203.4% | 275.0% | 71.6% |
| Net Income Margin | 310.8% | 176.6% | 265.7% | 178.6% | 252.2% | 73.6% |
| SG&A, % of revenue | 15.0% | 15.4% | 14.6% | 15.3% | 15.9% | 0.7% |
| CAPEX, % of revenue | 1.2% | 1.4% | 0.7% | 5.1% | 3.1% | -2.0% |
| ROIC | 15.7% | 9.2% | 13.3% | 9.2% | 12.6% | 3.3% |
| ROE | 22.1% | 11.9% | 17.1% | 11.2% | 15.5% | 4.3% |
| Net Debt/EBITDA | 2.2x | 3.3x | 2.1x | 2.7x | 1.9x | -0.9x |
Revenue and profitability
Sunlight Real Estate Investment Trust's Revenue increased on 9.5% in FY2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 5.1 pp from 51.1% to 56.2% in 2015.
SG&A as a % of Revenue increased slightly on 0.65 pp from 15.3% to 15.9% in FY2015.
Net Income marign jumped on 73.6 pp from 179% to 252% in FY2015.
Capital expenditures (CAPEX) and working capital investments
Sunlight Real Estate Investment Trust's CAPEX/Revenue was 3.1% in FY2015. The company's CAPEX/Revenue increased slightly on 1.7 pp from 1.4% in FY2012 to 3.1% in FY2015. For the last three years the average CAPEX/Revenue was 3.0%.
Return on investment
The company operates at good ROIC (12.56%) and ROE (15.47%). ROIC increased on 3.3 pp from 9.2% to 12.6% in FY2015. ROE increased on 4.3 pp from 11.2% to 15.5% in FY2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 1.9x and Debt / EBITDA is 1.9x. Net Debt / EBITDA dropped on 0.9x from 2.7x to 1.9x in FY2015. Debt increased slightly on 0.56% in FY2015 while cash dropped on 17.1% in FY2015.
Appendix 1: Peers in REITS
Below we provide Sunlight Real Estate Investment Trust benchmarking against other companies in REITS industry for the last 5 years. We show data for the top-5 companies by key financial metric together with the median value for all the companies in the industry.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Prosperity REIT ($808) | 3.1% | 10.8% | 10.8% | 18.0% | |
| Fortune Real Estate Investment Trust ($778) | 9.0% | 22.1% | 28.6% | 15.6% | |
| Spring Real Estate Investment Trust ($1426) | 25.2% | 13.8% | 33.1% | 15.4% | |
| Yuexiu Real Estate Investment Trust ($405) | 7.8% | 36.4% | 92.5% | 14.6% | |
| Regal Real Estate Investment Trust ($1881) | -18.3% | 13.6% | 7.0% | 13.8% | |
| |
|---|
| Median (8 companies) | 7.8% | 12.2% | 10.3% | 14.2% | 7.9% |
|---|
| Sunlight Real Estate Investment Trust ($435) | | 9.2% | 8.3% | 9.3% | 9.5% |
Top companies by EBITDA margin, %
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Link REIT/The ($823) | 304.6% | 179.0% | 340.1% | 257.8% | 362.0% |
| New Century Real Estate Investment Trust ($1275) | 30.9% | 31.3% | 33.2% | 82.5% | |
| Regal Real Estate Investment Trust ($1881) | 437.8% | 447.8% | 73.8% | 56.7% | |
| Yuexiu Real Estate Investment Trust ($405) | 59.2% | 56.0% | 50.4% | 50.7% | |
| |
|---|
| Median (4 companies) | 304.6% | 117.5% | 50.4% | 69.6% | 362.0% |
|---|
| Sunlight Real Estate Investment Trust ($435) | 343.7% | 202.4% | 293.6% | 203.4% | 275.0% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Regal Real Estate Investment Trust ($1881) | 11.5% | 8.3% | 19.8% | 322.0% | |
| Link REIT/The ($823) | 13.5% | 43.9% | 13.4% | 14.0% | 107.2% |
| Fortune Real Estate Investment Trust ($778) | 4.8% | 180.5% | 400.4% | 9.4% | |
| Prosperity REIT ($808) | 4.6% | 4.3% | 4.5% | 6.4% | |
| New Century Real Estate Investment Trust ($1275) | 0.0% | 0.0% | 3.5% | 5.7% | |
| |
|---|
| Median (8 companies) | 3.5% | 3.0% | 4.5% | 6.1% | 107.2% |
|---|
| Sunlight Real Estate Investment Trust ($435) | 1.2% | 1.4% | 0.7% | 5.1% | 3.1% |
Top companies by ROIC, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Link REIT/The ($823) | 27.2% | 14.8% | 25.5% | 17.7% | 22.3% |
| Fortune Real Estate Investment Trust ($778) | 24.2% | 13.6% | 16.0% | 14.0% | |
| New Century Real Estate Investment Trust ($1275) | 7.9% | 6.5% | 3.0% | 4.4% | |
| Champion REIT ($2778) | 11.5% | 8.9% | 4.0% | 4.0% | |
| Spring Real Estate Investment Trust ($1426) | 3.6% | 3.4% | 3.7% | 3.8% | |
| |
|---|
| Median (9 companies) | 7.9% | 6.5% | 3.0% | 3.8% | 22.3% |
|---|
| Sunlight Real Estate Investment Trust ($435) | 15.7% | 9.2% | 13.3% | 9.2% | 12.6% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Regal Real Estate Investment Trust ($1881) | 1.5x | 1.3x | 10.2x | 13.9x | |
| Yuexiu Real Estate Investment Trust ($405) | 4.7x | 19.0x | 10.4x | 8.9x | |
| New Century Real Estate Investment Trust ($1275) | 5.4x | 4.3x | 6.5x | 6.1x | |
| Link REIT/The ($823) | 0.6x | 1.2x | 0.5x | 0.6x | 0.6x |
| |
|---|
| Median (4 companies) | 1.5x | 2.8x | 8.3x | 7.5x | 0.6x |
|---|
| Sunlight Real Estate Investment Trust ($435) | 2.2x | 3.3x | 2.1x | 2.7x | 1.9x |
