Starhill Global Real Estate Investment Trust’s (SGX:P40U) Stock Price Has Reduced 35% In The Past Three Years
It’s not a great move, but it’s good to see the Starhill Global Real Estate Investment Trust (SGX: P40U) The share price has gained 12% in the last three months. But that doesn’t change the fact that returns over the past three years have been less than encouraging. To be honest, the stock’s price has fallen 35% in three years, and that return, dear reader, is below what you could have made by investing passively with an index fund.
Check out our latest analysis for Starhill Global Real Estate Investment Trust
There’s no denying that markets are efficient at times, but prices don’t always reflect underlying business performance. By comparing earnings per share (EPS) and how the stock price has changed over time, we can get a sense of how investor attitudes towards a company have changed over time.
During the three years that its share price fell, Starhill Global Real Estate Investment Trust’s earnings per share (EPS) fell 11% each year. This change in EPS roughly corresponds to the average annual decline in the share price of 13%. So it seems that sentiment towards the stock hasn’t changed too much over time. In this case, the EPS seems to determine the share price.
Below you can see how EPS has changed over time (find out the exact values by clicking the image).
SGX: P40U earnings per share growth December 24, 2020
Ours might be worth a look free Report on the earnings, sales and cash flow of the Starhill Global Real Estate Investment Trust.
What about dividends?
It’s important to consider total shareholder return as well as the stock price return for a given stock. While the stock price return only reflects the change in the stock price, the TSR includes the value of dividends (if reinvested) and the benefit of discounted capital raising or spin-off. It’s fair to say that the TSR paints a more complete picture for stocks that pay a dividend. We find that the TSR for Starhill Global Real Estate Investment Trust has been -24% over the past 3 years, which is better than the stock price return mentioned above. This is mainly due to the dividend payments!
We regret to announce that Starhill Global Real Estate Investment Trust shareholders are down 29% over the year (even including dividends). Unfortunately, that’s worse than the wider 10% market decline. However, it is inevitable that some stocks will be oversold in a falling market. The key is to keep an eye on the fundamental developments. Unfortunately, last year’s performance may point to unresolved challenges as it was worse than the 2% annualized loss over the past half a decade. We are aware that Baron Rothschild said investors should “buy when there is blood on the streets,” but we caution that investors should first be sure they are buying a good quality company. While it is worth considering the varying effects of market conditions on the stock price, other factors are even more important. To do this, you should learn something about that 3 warning signs We spoke to Starhill Global Real Estate Investment Trust (including 1 which doesn’t suit us very well).
We’ll like the Starhill Global Real Estate Investment Trust better when we see some big inside buying. Check this out while we wait free List of growing companies with significant insider buying recently.
Please note that the market returns reported in this article reflect the market weighted average returns on stocks currently traded on SG exchanges.
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