Starhill Global Real Estate Investment Trust’s (SGX:P40U) largest shareholders are individual investors who were rewarded as market cap surged S$67m last week
To get a sense of who is truly in control of Starhill Global Real Estate Investment Trust (SGX:P40U), it is important to understand the ownership structure of the business. With 46% stake, individual investors possess the maximum shares in the company. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).
As a result, individual investors collectively scored the highest last week as the company hit S$1.3b market cap following a 5.4% gain in the stock.
Let’s take a closer look to see what the different types of shareholders can tell us about Starhill Global Real Estate Investment Trust.
See our latest analysis for Starhill Global Real Estate Investment Trust
SGX:P40U Ownership Breakdown January 27th 2023
What Does The Institutional Ownership Tell Us About Starhill Global Real Estate Investment Trust?
Institutional investors commonly compare their own returns to the returns of a commonly followed index. So they generally do consider buying larger companies that are included in the relevant benchmark index.
Starhill Global Real Estate Investment Trust already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. When multiple institutions own a stock, there’s always a risk that they are in a ‘crowded trade’. When such a trade goes wrong, multiple parties may compete to sell stock fast. This risk is higher in a company without a history of growth. You can see Starhill Global Real Estate Investment Trust’s historic earnings and revenue below, but keep in mind there’s always more to the story.
Starhill Global Real Estate Investment Trust is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is Yeoh Tiong Lay & Sons Family Holdings Limited with 35% of shares outstanding. For context, the second largest shareholder holds about 5.0% of the shares outstanding, followed by an ownership of 2.4% by the third-largest shareholder.
We did some more digging and found that 8 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.
While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.
Insider Ownership Of Starhill Global Real Estate Investment Trust
The definition of an insider may differ slightly between different countries, but members of the board of directors always count. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.
Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
Our most recent data indicates that insiders own less than 1% of Starhill Global Real Estate Investment Trust. But they may have an indirect interest through a corporate structure that we haven’t picked up on. It is a pretty big company, so it would be possible for board members to own a meaningful interest in the company, without owning much of a proportional interest. In this case, they own around S$88k worth of shares (at current prices). It is always good to see at least some insider ownership, but it might be worth checking if those insiders have been selling.
General Public Ownership
With a 46% ownership, the general public, mostly comprising of individual investors, have some degree of sway over Starhill Global Real Estate Investment Trust. While this group can’t necessarily call the shots, it can certainly have a real influence on how the company is run.
Private company ownership
It seems that Private Companies own 36%, of the Starhill Global Real Estate Investment Trust stock. It’s hard to draw any conclusions from this fact alone, so it’s worth looking into who owns those private companies. Sometimes insiders or other related parties have an interest in shares in a public company through a separate private company.
next steps:
I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example – Starhill Global Real Estate Investment Trust has 2 warning signs (and 1 which shouldn’t be ignored) we think you should know about.
But ultimately it is the future, not the past, that will determine how well the owners of this business will do. Therefore we think it advisable to take a look at this free report showing whether analysts are predicting a brighter future.
NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.
Valuation is complex, but we’re helping make it simple.
Find out whether Starhill Global Real Estate Investment Trust is potentially over or undervalued by checking out our comprehensive analysis, which includes fair value estimates, risks and warnings, dividends, insider transactions and financial health.
View the Free Analysis
Have feedback on this article? Concerned about the content? get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.