Sunlight Real Estate Investment Trust reports 273 pp EBITDA Margin decline from 206% to -66.5% in 2020 in 2020 and almost no change in Revenue of 855
08/09/2020 • About Sunlight Real Estate Investment Trust (
$435) • By InTwits
Sunlight Real Estate Investment Trust reported FY2020 financial results today. Overall the company's long term financial model is characterised by the following facts:
- EBITDA Margin is quite volatile: -66.5% in FY2020, 206.5% in FY2019, 193.9% in FY2018, 115.1% in FY2017, 131.7% in FY2016
- Sunlight Real Estate Investment Trust has low CAPEX intensity: 5 year average CAPEX/Revenue was 3.5%. At the same time it's in pair with industry average of 4.4%
- CAPEX is quite volatile: 53 HKDm in FY2020, 18 HKDm in FY2019, 21 HKDm in FY2018, 34 HKDm in FY2017, 19 HKDm in FY2016
- The company has unprofitable business model: ROIC is -2.9%
- It operates with high leverage: Net Debt/EBITDA is 16.2x while industry average is 6.7x
Below you can find a comprehensive analysis of the key data driving the company's performance and the stock price.
Revenue and profitability
Sunlight Real Estate Investment Trust's Revenue showed almost no change in FY2020. During the last 5 years Revenue growth topped in FY2019 at 4.1%. Having declining revenue the company managed to increase EBITDA margin. EBITDA Margin increased on 8.8 pp from -7.9% to 0.88% in FY2020.
SG&A as a % of Revenue decreased slightly on 1.0 pp from 14.5% to 13.5% in FY2020.
Net Income margin dropped on 275 pp from 187% to -87.9% in FY2020.
Investments (CAPEX, working capital and M&A)
In FY2020 the company had CAPEX/Revenue of 6.2%. Sunlight Real Estate Investment Trust showed small growth in CAPEX/Revenue of 1.9 pp from 4.3% in FY2017 to 6.2% in FY2020. For the last three years the average CAPEX/Revenue was 3.6%.
Return on investment
The company operates at negative ROIC (-2.9%) and ROE (-4.9%). ROIC dropped on 11.7 pp from 8.8% to -2.9% in FY2020. ROE dropped on 15.2 pp from 10.3% to -4.9% in FY2020.
Leverage (Debt)
Debt level is 16.2x Net Debt / EBITDA and Debt / EBITDA. Net Debt / EBITDA dropped on 2.1x from 2.1x to in FY2020. Debt showed almost no change in FY2020 while cash decreased on 9.2%.
Sunlight Real Estate Investment Trust has short term refinancing risk: cash is only 30.4% of short term debt.
Average interest expence charged on company's debt was 2.5% in FY2020.
The company paid 452 HKD despite negative Net Income of -751 HKD in FY2020.
Management team
The company has 0.19% shares owned by insiders. Insider ownership didn't change in 2020.
Financial and operational results
FY ended 30/06/2020
Sunlight Real Estate Investment Trust ($435) key annual financial indicators| mln. HKD | 2016 | 2017 | 2018 | 2019 | 2020 | 2020/2019 |
|---|
P&L
|
|---|
| Revenue | 770.5 | 788.8 | 818.2 | 851.7 | 854.6 | 0.3% |
| SG&A | 104.3 | 105.5 | 117.9 | 123.8 | 115.5 | -6.7% |
| EBITDA | 1,014.5 | 908.1 | 1,586.9 | 1,758.8 | -567.9 | -132.3% |
| EBIT | | 908.1 | 1,586.8 | 1,758.8 | -568.0 | -132.3% |
| Interest expence | | 84.3 | 74.0 | 95.7 | 107.7 | 12.6% |
| Tax | | 68.4 | 79.9 | 81.3 | 80.1 | -1.5% |
| Net Income | 825.3 | 743.5 | 1,442.3 | 1,591.1 | -751.4 | -147.2% |
Balance Sheet
|
|---|
| Cash | 485.8 | 1,085.9 | 641.9 | 550.0 | 499.4 | -9.2% |
| Short Term Debt | 0.0 | 0.0 | 20.0 | 599.3 | 1,642.6 | 174.1% |
| Long Term Debt | 3,895.9 | 3,901.9 | 4,231.5 | 3,638.0 | 2,596.9 | -28.6% |
Cash flow
|
|---|
| Capex | 19.4 | 33.6 | 20.6 | 18.3 | 52.7 | 187.4% |
| Dividends | | 401.0 | 548.0 | 446.0 | 452.0 | 1.3% |
Ratios
|
|---|
| Revenue growth | 2.1% | 2.4% | 3.7% | 4.1% | 0.3% | |
| EBITDA growth | -51.1% | -10.5% | 74.7% | 10.8% | -132.3% | |
|
|---|
| EBITDA Margin | 131.7% | 115.1% | 193.9% | 206.5% | -66.5% | -273.0% |
| EBIT Margin | | 115.1% | 193.9% | 206.5% | -66.5% | -273.0% |
| SG&A, % of revenue | 13.5% | 13.4% | 14.4% | 14.5% | 13.5% | -1.0% |
| Net Income Margin | 107.1% | 94.3% | 176.3% | 186.8% | -87.9% | -274.7% |
| CAPEX, % of revenue | 2.5% | 4.3% | 2.5% | 2.2% | 6.2% | 4.0% |
|
|---|
| ROIC | 5.8% | 5.1% | 8.5% | 8.8% | -2.9% | -11.7% |
| ROE | 6.2% | 5.4% | 10.0% | 10.3% | -4.9% | -15.2% |
| Net Debt/EBITDA | 3.4x | 3.1x | 2.3x | 2.1x | |
| Interest expence / Average debt | | 2.2% | 1.8% | 2.3% | 2.5% | 0.3% |
People
|
|---|
| Insider ownership | | 0.2% | 0.2% | 0.2% | 0.2% | 0.0% |
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.
