The Regal Real Estate Investment Trust (HKG:1881) Share Price Is Up 21% And Shareholders Are Holding On
Low-cost index funds make it easy to achieve average market returns. But in any diversified portfolio of stocks, you’ll see some that fall short of the average. That’s what has happened with the Regal Real Estate Investment Trust (HKG:1881) share price. It’s up 21% over three years, but that is below the market return. Unfortunately, the share price has fallen 2.0% over twelve months.
View our latest analysis for Regal Real Estate Investment Trust
There is no denying that markets are sometimes efficient, but prices do not always reflect underlying business performance. One way to examine how market sentiment has changed over time is to look at the interaction between a company’s share price and its earnings per share (EPS).
During three years of share price growth, Regal Real Estate Investment Trust moved from a loss to profitability. So we would expect a higher share price over the period.
The image below shows how EPS has tracked over time (if you click on the image you can see greater detail).
We know that Regal Real Estate Investment Trust has improved its bottom line over the last three years, but what does the future have in store? This free interactive report on Regal Real Estate Investment Trust’s balance sheet strength is a great place to start, if you want to investigate the stock further.
What About Dividends?
When looking at investment returns, it is important to consider the difference between total shareholder return (TSR) and share price return. Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising. So for companies that pay a generous dividend, the TSR is often a lot higher than the share price return. We note that for Regal Real Estate Investment Trust the TSR over the last 3 years was 48%, which is better than the share price return mentioned above. This is largely a result of its dividend payments!
A Different Perspective
It’s nice to see that Regal Real Estate Investment Trust shareholders have received a total shareholder return of 4.2% over the last year. That’s including the dividend. However, that falls short of the 11% TSR per annum it has made for shareholders, each year, over five years. Potential buyers might understandably feel they’ve missed the opportunity, but it’s always possible business is still firing on all cylinders. Before forming an opinion on Regal Real Estate Investment Trust you might want to consider the cold hard cash it pays as a dividend. This free chart tracks its dividend over time.
We will like Regal Real Estate Investment Trust better if we see some big insider buys. While we wait, check out this free list of growing companies with considerable, recent, insider buying.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on HK exchanges.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.
