New Century Real Estate Investment Trust Net Debt / EBITDA surged on 1.8x from 6.1x to 8.0x in 2015 and EBITDA increased on 9.9%
29/03/2016 • About New Century Real Estate Investment Trust (
$1275) • By InTwits
New Century Real Estate Investment Trust reported 2015 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: 77.8% in 2015, 82.5% in 2014, 33.2% in 2013, 31.3% in 2012, 30.9% in 2011
- New Century Real Estate Investment Trust has low CAPEX intensity: 5 year average CAPEX/Revenue was 2.1%. At the same time it's in pair with industry average of 15.3%.
- CAPEX is quite volatile: 3.4 in 2015, 15.7 in 2014, 16.3 in 2013, 0 in 2012, 0 in 2011
- The company has potentially unprofitable business model: ROIC is at 4.8%
- It operates with high leverage: Net Debt/EBITDA is 8.0x while industry average is 5.8x
Below you can find a comprehensive analysis of the key data driving the company's performance and stock price.
New Century Real Estate Investment Trust ($1275) key annual financial indicators
| mln. CNY | 2011 | 2012 | 2013 | 2014 | 2015 | 2015/2014 |
|---|
P&L
|
|---|
| Revenue | 794.2 | 804.0 | 468.7 | 273.3 | 318.3 | 16.5% |
| EBITDA | 245.5 | 251.8 | 155.7 | 225.4 | 247.7 | 9.9% |
| Net Income | 74.2 | 76.4 | -130.9 | -43.1 | -45.6 | 5.7% |
Balance Sheet
|
|---|
| Cash | 100.9 | 409.6 | 145.7 | 187.3 | 63.2 | -66.3% |
| Short Term Debt | | | | | 1,496.4 | |
| Long Term Debt | 1,418.5 | 1,504.5 | 1,159.5 | 1,571.9 | 538.5 | -65.7% |
Cash flow
|
|---|
| Capex | 0.0 | 0.0 | 16.3 | 15.7 | 3.4 | -78.5% |
Ratios
|
|---|
| Revenue growth | 12.5% | 1.2% | -41.7% | -41.7% | 16.5% | |
| EBITDA growth | 16.3% | 2.6% | -38.2% | 44.8% | 9.9% | |
| EBITDA Margin | 30.9% | 31.3% | 33.2% | 82.5% | 77.8% | -4.6% |
| Net Income Margin | 9.3% | 9.5% | -27.9% | -15.8% | -14.3% | 1.5% |
| CAPEX, % of revenue | 0.0% | 0.0% | 3.5% | 5.7% | 1.1% | -4.7% |
| ROIC | 7.9% | 6.5% | 3.0% | 4.4% | 4.8% | 0.4% |
| ROE | 9.8% | 7.9% | -7.5% | -1.7% | -1.8% | -0.1% |
| Net Debt/EBITDA | 5.4x | 4.3x | 6.5x | 6.1x | 8.0x | 1.8x |
Revenue and profitability
The company's Revenue jumped on 16.5% in 2015. Revenue decline was accompanies by EBITDA margin decline. EBITDA Margin decreased slightly on 1.8 pp from -7.1% to -8.9% in FY2015.
Net Income marign increased slightly on 1.5 pp from -15.8% to -14.3% in 2015.
Capital expenditures (CAPEX) and working capital investments
New Century Real Estate Investment Trust's CAPEX/Revenue was 1.1% in 2015. New Century Real Estate Investment Trust's CAPEX/Revenue increased slightly1.1 pp from 0% in 2012 to 1.1% in 2015. It's average level of CAPEX/Revenue for the last three years was 3.4%.
Return on investment
The company operates at low but positive ROIC (4.78%) and negative ROE (-1.83%). ROIC showed almost no change in 2015. ROE showed almost no change in 2015.
Leverage (Debt)
Debt level is 8.0x Net Debt / EBITDA and 8.2x Debt / EBITDA. Net Debt / EBITDA surged on 1.8x from 6.1x to 8.0x in 2015. Debt jumped on 29.5% in 2015 while cash dropped on 66.3% in 2015.
Appendix 1: Peers in REITS
Below you can find New Century Real Estate Investment Trust benchmarking vs. other companies in REITS industry. It's shown for the period of 5 years for the key financial metrics. Each table has median value for all the companies in the industry together with individual financial data of the top-5 companies in the industry by particular financial metric.
Top companies by Revenue growth, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Fortune Real Estate Investment Trust ($778) | | 22.1% | 28.6% | 15.6% | 13.7% |
| Sunlight Real Estate Investment Trust ($435) | | 9.2% | 8.3% | 9.3% | 9.5% |
| Yuexiu Real Estate Investment Trust ($405) | | 36.4% | 92.5% | 14.6% | 8.8% |
| Prosperity REIT ($808) | | 10.8% | 10.8% | 18.0% | 8.8% |
| Link REIT/The ($823) | | 10.8% | 9.7% | 10.0% | 7.9% |
| |
|---|
| Median (8 companies) | | 12.2% | 10.3% | 14.2% | 8.3% |
|---|
| New Century Real Estate Investment Trust ($1275) | | 1.2% | -41.7% | -41.7% | 16.5% |
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% |
| Sunlight Real Estate Investment Trust ($435) | 343.7% | 202.4% | 293.6% | 203.4% | 275.0% |
| Yuexiu Real Estate Investment Trust ($405) | 59.2% | 56.0% | 50.4% | 50.7% | 46.9% |
| Regal Real Estate Investment Trust ($1881) | 437.8% | 447.8% | 73.8% | 56.7% | -118.2% |
| |
|---|
| Median (4 companies) | 343.7% | 190.7% | 73.8% | 130.1% | 161.0% |
|---|
| New Century Real Estate Investment Trust ($1275) | 30.9% | 31.3% | 33.2% | 82.5% | 77.8% |
Top companies by CAPEX/Revenue, %
| Top 5 | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| 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% |
| Regal Real Estate Investment Trust ($1881) | 11.5% | 8.3% | 19.8% | 322.0% | 10.1% |
| Sunlight Real Estate Investment Trust ($435) | 1.2% | 1.4% | 0.7% | 5.1% | 3.1% |
| Prosperity REIT ($808) | 4.6% | 4.3% | 4.5% | 6.4% | 3.0% |
| |
|---|
| Median (8 companies) | 3.5% | 3.0% | 4.5% | 5.8% | 3.1% |
|---|
| New Century Real Estate Investment Trust ($1275) | 0.0% | 0.0% | 3.5% | 5.7% | 1.1% |
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% |
| Sunlight Real Estate Investment Trust ($435) | 15.7% | 9.2% | 13.3% | 9.2% | 12.6% |
| Fortune Real Estate Investment Trust ($778) | 24.2% | 13.6% | 16.0% | 14.0% | 8.6% |
| Champion REIT ($2778) | 11.5% | 8.9% | 4.0% | 4.0% | 6.2% |
| Spring Real Estate Investment Trust ($1426) | 3.6% | 3.4% | 3.7% | 3.8% | 3.9% |
| |
|---|
| Median (9 companies) | 11.5% | 8.9% | 3.7% | 3.8% | 3.9% |
|---|
| New Century Real Estate Investment Trust ($1275) | 7.9% | 6.5% | 3.0% | 4.4% | 4.8% |
Top companies by Net Debt / EBITDA
| Top | FY2011 | FY2012 | FY2013 | FY2014 | FY2015 |
|---|
| Yuexiu Real Estate Investment Trust ($405) | 4.7x | 19.0x | 10.4x | 8.9x | 12.8x |
| 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 (3 companies) | 1.5x | 2.3x | 6.1x | 5.8x | 1.9x |
|---|
| New Century Real Estate Investment Trust ($1275) | 5.4x | 4.3x | 6.5x | 6.1x | 8.0x |
