Fortune Real Estate Investment Trust's Dividend Analysis
Exploring the Dividend Sustainability of Fortune Real Estate Investment Trust (FRIVF)
Fortune Real Estate Investment Trust (FRIVF) recently announced a dividend of $0.18 per share, payable on 2024-04-19, with the ex-dividend date set for 2024-03-25. As investors look forward to this upcoming payment, the spotlight also shines on the company's dividend history, yield, and growth rates. Using the data from GuruFocus, let's look into Fortune Real Estate Investment Trust's dividend performance and assess its sustainability.
What Does Fortune Real Estate Investment Trust Do?
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Fortune Real Estate Investment Trust is a real estate company that invests in retail shopping malls located in Hong Kong and Singapore with the primary objective of producing stable distributions for unitholders and achieving long-term growth in the net asset value per unit. The trust generates the majority of its revenue from rents and leases, with the remaining revenue from utility charges, management fees, car park revenue, license fees, and other sources. Fortune REIT's tenants include supermarkets, banking, and real estate services companies, restaurants, convenience stores, and general retailers.
A Glimpse at Fortune Real Estate Investment Trust's Dividend History
Fortune Real Estate Investment Trust has maintained a consistent dividend payment record since 2015. Dividends are currently distributed on a bi-annually basis. Below is a chart showing annual Dividends Per Share for tracking historical trends.
Breaking Down Fortune Real Estate Investment Trust's Dividend Yield and Growth
As of today, Fortune Real Estate Investment Trust currently has a 12-month trailing dividend yield of 9.91% and a 12-month forward dividend yield of 9.22%. This suggests an expectation of decreased dividend payments over the next 12 months.
Over the past three years, Fortune Real Estate Investment Trust's annual dividend growth rate was -5.70%. Extended to a five-year horizon, this rate increased to -2.70% per year. And over the past decade, Fortune Real Estate Investment Trust's annual dividends per share growth rate stands at 4.00%.
Based on Fortune Real Estate Investment Trust's dividend yield and five-year growth rate, the 5-year yield on cost of Fortune Real Estate Investment Trust stock as of today is approximately 8.64%.
The Sustainability Question: Payout Ratio and Profitability
To assess the sustainability of the dividend, one needs to evaluate the company's payout ratio. The dividend payout ratio provides insights into the portion of earnings the company distributes as dividends. A lower ratio suggests that the company retains a significant part of its earnings, thereby ensuring the availability of funds for future growth and unexpected downturns. As of 2023-12-31, Fortune Real Estate Investment Trust's dividend payout ratio is 0.00.
Fortune Real Estate Investment Trust's profitability rank, offers an understanding of the company's earnings prowess relative to its peers. GuruFocus ranks Fortune Real Estate Investment Trust's profitability 6 out of 10 as of 2023-12-31, suggesting fair profitability. The company has reported net profit in 9 years out of the past 10 years.
Growth Metrics: The Future Outlook
To ensure the sustainability of dividends, a company must have robust growth metrics. Fortune Real Estate Investment Trust's growth rank of 6 out of 10 suggests that the company has a fair growth outlook.
Revenue is the lifeblood of any company, and Fortune Real Estate Investment Trust's revenue per share, combined with the 3-year revenue growth rate, indicates a strong revenue model. Fortune Real Estate Investment Trust's revenue has increased by approximately -4.30% per year on average, a rate that underperforms than approximately 80.21% of global competitors.
The company's 3-year EPS growth rate showcases its capability to grow its earnings, a critical component for sustaining dividends in the long run. During the past three years, Fortune Real Estate Investment Trust's earnings increased by approximately -54.00% per year on average, a rate that underperforms than approximately 97.19% of global competitors.
Next Steps
In conclusion, while Fortune Real Estate Investment Trust offers a high dividend yield, the negative growth rates in both dividends and earnings per share raise concerns about the sustainability of future dividends. The payout ratio, currently at 0.00, is not indicative of the company's ability to maintain its dividend payouts. However, the profitability rank points to a fair level of earnings efficiency, which could support dividend payments if the trust manages to reverse the negative growth trends. Investors should closely monitor the trust's revenue and earnings growth, as these will be pivotal in determining the viability of the dividends in the long term. For those seeking high-dividend yield investments, GuruFocus Premium users can screen for high-dividend yield stocks using the High Dividend Yield Screener.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
This article first appeared on GuruFocus.
