Yuexiu Real Estate Investment Trust Net Debt / EBITDA surged on 3.9x from 8.9x to 12.8x in 2015 and Revenue increased on 8.8%
23/02/2016 • About Yuexiu Real Estate Investment Trust (
$405) • By InTwits
Yuexiu Real Estate Investment Trust reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- Yuexiu Real Estate Investment Trust has low CAPEX intensity: 5 year average CAPEX/Revenue was 1.8%. At the same time it's a lot of higher than industry average of 23.3%.
- CAPEX is quite volatile: 50.1 in 2015, 21.8 in 2014, 8.2 in 2013, 12.5 in 2012, 12.1 in 2011
- The company has potentially unprofitable business model: ROIC is at 2.5%
- It operates with high leverage: Net Debt/EBITDA is 12.8x while industry average is 7.1x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
Yuexiu Real Estate Investment Trust ($405) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 522 | 712 | 1,371 | 1,571 | 1,710 | 8.8% |
| EBITDA | 309 | 399 | 691 | 797 | 803 | 0.7% |
| Net Income | 1,337 | 688 | 524 | 928 | 741 | -20.2% |
Balance Sheet
|
|---|
| Cash | 521 | 774 | 640 | 986 | 683 | -30.8% |
| Short Term Debt | 0 | 300 | 300 | 300 | 2,842 | 847.2% |
| Long Term Debt | 1,978 | 8,058 | 7,542 | 7,809 | 8,136 | 4.2% |
Cash flow
|
|---|
| Capex | 12 | 12 | 8 | 22 | 50 | 129.9% |
Ratios
|
|---|
| Revenue growth | 7.8% | 36.4% | 92.5% | 14.6% | 8.8% | |
| EBITDA growth | 4.6% | 29.0% | 73.2% | 15.3% | 0.7% | |
| EBITDA Margin | 59.2% | 56.0% | 50.4% | 50.7% | 46.9% | -3.8% |
| Net Income Margin | 256.0% | 96.6% | 38.2% | 59.1% | 43.3% | -15.7% |
| CAPEX, % of revenue | 2.3% | 1.8% | 0.6% | 1.4% | 2.9% | 1.5% |
| ROIC | 4.7% | 2.4% | 2.4% | 2.8% | 2.5% | -0.3% |
| ROE | 29.5% | 7.8% | 4.2% | 7.2% | 5.6% | -1.6% |
| Net Debt/EBITDA | 4.7x | 19.0x | 10.4x | 8.9x | 12.8x | 3.9x |
Revenue and profitability
Yuexiu Real Estate Investment Trust's Revenue increased on 8.8% in 2015. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 4.2 pp from 18.0% to 22.2% in 2015.
Net Income marign dropped on 15.7 pp from 59.1% to 43.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
In 2015 Yuexiu Real Estate Investment Trust had CAPEX/Revenue of 2.9%. The company's CAPEX/Revenue increased slightly on 1.2 pp from 1.8% in 2012 to 2.9% in 2015. For the last three years the average CAPEX/Revenue was 1.6%.
Return on investment
The company operates at low ROIC (2.50%) and ROE (5.58%). ROIC showed almost no change in 2015. ROE decreased slightly on 1.6 pp from 7.2% to 5.6% in 2015.
Leverage (Debt)
Company's Net Debt / EBITDA is 12.8x and Debt / EBITDA is 13.7x. Net Debt / EBITDA surged on 3.9x from 8.9x to 12.8x in 2015. Debt jumped on 35.4% in 2015 while cash dropped on 30.8% in 2015.
Appendix 1: Peers in REITS
Below we provide Yuexiu 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) | | 22.1% | 28.6% | 15.6% | 13.7% |
| Spring Real Estate Investment Trust ($1426) | 25.2% | 13.8% | 33.1% | 15.4% | |
| Regal Real Estate Investment Trust ($1881) | -18.3% | 13.6% | 7.0% | 13.8% | |
| Link REIT/The ($823) | | 10.8% | 9.7% | 10.0% | 7.9% |
| |
|---|
| Median (8 companies) | 3.4% | 10.8% | 9.0% | 11.9% | 9.5% |
|---|
| Yuexiu Real Estate Investment Trust ($405) | | 36.4% | 92.5% | 14.6% | 8.8% |
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% |
| Sunlight Real Estate Investment Trust ($435) | 343.7% | 202.4% | 293.6% | 203.4% | 275.0% |
| 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% | |
| |
|---|
| Median (4 companies) | 343.7% | 190.7% | 73.8% | 142.9% | 318.5% |
|---|
| Yuexiu Real Estate Investment Trust ($405) | 59.2% | 56.0% | 50.4% | 50.7% | 46.9% |
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% | 99.9% |
| 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) | 2.9% | 2.9% | 4.5% | 6.1% | 99.9% |
|---|
| Yuexiu Real Estate Investment Trust ($405) | 2.3% | 1.8% | 0.6% | 1.4% | 2.9% |
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% | 8.6% |
| Sunlight Real Estate Investment Trust ($435) | 15.7% | 9.2% | 13.3% | 9.2% | 12.6% |
| 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% | |
| |
|---|
| Median (9 companies) | 11.5% | 8.9% | 3.7% | 4.0% | 12.6% |
|---|
| Yuexiu Real Estate Investment Trust ($405) | 4.7% | 2.4% | 2.4% | 2.8% | 2.5% |
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 | |
| New Century Real Estate Investment Trust ($1275) | 5.4x | 4.3x | 6.5x | 6.1x | |
| Sunlight Real Estate Investment Trust ($435) | 2.2x | 3.3x | 2.1x | 2.7x | 1.9x |
| Link REIT/The ($823) | 0.6x | 1.2x | 0.5x | 0.6x | 0.6x |
| |
|---|
| Median (4 companies) | 1.5x | 2.3x | 4.3x | 4.4x | 1.2x |
|---|
| Yuexiu Real Estate Investment Trust ($405) | 4.7x | 19.0x | 10.4x | 8.9x | 12.8x |
