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Yuexiu Real Estate Investment Trust and its subsidiaries (together, the Group (0405) Fair Value & Analysis

Real Estate · HK · Market cap HK$3.4B

YR Yuexiu Real Estate Investment Trust and its subsidiaries (together, the Group 0405 · HK
PriceHK$0.6550
Fair ValueHK$1.37
Upside+109.2%
Quality47/100
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Weak Growth
Loss-making · -38.0% net margin
Moderate debt · generates free cash flow
8.00% dividend yield
Mixed vs. peers (7/12)
Narrow moat 34/100
Evidence: High Range HK$0.3300 – HK$2.57 Share as image

Fair value as of: Aug 13, 2026

From 13 valuation models · updated 2 days ago

Share price −0.8% over the past month.

Below-average quality, screening 109% undervalued on our models.

What matters now

  • The model range is unusually wide (HK$0.3300 to HK$2.57). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • Solid quality (47/100) at a price below fair value, the discount is the argument here, not the business quality.
  • As a real-estate business, asset- and dividend-based methods carry more weight here than a standard DCF.
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Price vs Fair Value (5 years)

HK$2.91 HK$0.6500 Fair Value HK$1.37 Mar 2021 Aug 2026

White line = price, green steps = our fair value per fiscal year, dashed = 300-day average. As of Aug 13, 2026.

How to read this chart

60‑month range HK$0.6500 – HK$2.91 · fair‑value band HK$0.3300 – HK$2.57 · the HK$0.6550 price screens below the HK$1.37 fair value. Green steps = our fair value per fiscal year (point-in-time, no hindsight). Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Yuexiu Real Estate Investment Trust and its subsidiaries (together, the Group (0405) currently trades at HK$0.6550, while our model-based Fair Value estimate is HK$1.37, implying the stock looks roughly 109.2% undervalued today. The Quality Score stands at 47/100 (below-average quality), in the Real Estate sector. Bull case: trading below our estimate, it may offer upside if the fundamentals hold. Bear case: a low price can be a value trap when quality is weak or the data is thin (evidence: high), always confirm before acting.

Over the trailing twelve months, Yuexiu Real Estate Investment Trust and its subsidiaries (together, the Group generated revenue of HK$1.8B at a net margin of -38.0%. Revenue declined 13.5% year over year. It earns a return on equity of -4.4%. Net debt stands at HK$18.2B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.3300 (bear case) to HK$2.57 (bull case); at HK$0.6550, the current price sits within that range. Bear and bull are the same models run on conservative and optimistic assumptions (margins, growth, valuation multiples), so a plausible valuation range, not a price target. The share trades about 31% below its 52-week high and 2% above its 52-week low, currently below its 200-day average. For context, the median of 10 Real Estate peers we cover trades at -22% fair-value upside, at 109%, 0405 screens cheaper than that median.

Fair Value models

Each model estimates fair value its own way; the Fair Value above is the evidence-weighted blend. Evidence (0–100) measures how completely this model’s inputs are available: well-fed models carry more weight in the blend. The spread across models is intentional, each one stresses a different value driver; dividend models, for instance, come out structurally low when payout is small.

Model Bear Bear = the cautious scenario: the same model computed with conservative anchors (lower growth, margins and valuation multiples). Together with Bull it frames a plausible valuation range, not a price target.BaseBull Bull = the optimistic scenario: the same model computed with favourable anchors (higher growth, margins and valuation multiples). Together with Bear it frames a plausible valuation range, not a price target. Evidence
Highest evidence
Growth DCF HK$0.2200 HK$0.7000 80
Rev-Margin DCF HK$0.3600 HK$1.26 HK$2.26 74
Gordon GGM HK$0.5000 HK$1.00 HK$1.52 70
All 13 models by family
DCF Models
FCF DCF HK$0.2500 HK$0.8300 38
5Y Revenue Exit HK$0.3600 HK$1.27 HK$2.42 39
5Y EBITDA Exit HK$1.09 HK$2.60 HK$4.38 41
10Y Revenue Exit HK$0.1100 HK$0.8800 HK$1.90 36
10Y EBITDA Exit HK$0.6100 HK$1.78 HK$3.34 37
Dividend Discount
Gordon GGM HK$0.5000 HK$1.00 HK$1.52 70
DDM Multi-Stage HK$0.5000 HK$0.8000 HK$1.06 61
Multiples
EV/EBIT HK$2.62 HK$3.81 HK$5.00 53
EV/EBITDA HK$2.15 HK$3.19 HK$4.23 54
EV/Revenue HK$0.7500 HK$1.48 HK$2.21 43
Asset-Based
NCAV (Graham) HK$1.34 HK$1.80 HK$2.68 50
Growth DCF
Growth DCF HK$0.2200 HK$0.7000 80
Rev-Margin DCF HK$0.3600 HK$1.26 HK$2.26 74

Widest divergence: Multiples (HK$3.19) versus Growth DCF (HK$0.2200). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$1.8B
Revenue growth (YoY) -13.5%
Net margin -38.0%
Return on equity -4.4%
Free cash flow HK$398M FY2025
Operating margin 46.5%
More key figures
EPS (TTM) HK$-0.0600
Dividend yield 8.0%
EPS growth (YoY) -98.9%
Net debt HK$18.2B FY2025

Figures from reported company fundamentals · as of Aug 13, 2026. TTM = trailing twelve months.

Quality Score breakdown

Overall quality 47/100

Of which business quality 46 · Market factors (momentum, volatility) 28

Profitability 4
Margins and returns on capital today
Quality Growth 34
Are margins and returns improving?
Cashflow 89
Earnings quality: real cash, not paper profit
Fin. Strength 24
Balance sheet, leverage, solvency risk
Investment 100
Disciplined investing over empire-building
Low Volatility 65
Calm price path (market factor)
Momentum 17
Price trend over the last 3–12 months (market factor)
52W Momentum 6
Distance to the 52-week high (market factor)
Net Issuance 47
Buybacks instead of dilution

Non-valuation factor families (profitability, growth, cashflow, financial strength, momentum …), each academically grounded. Valuation itself sits in the Fair Value and is deliberately excluded here to avoid double-counting.

About the company

Yuexiu Real Estate Investment Trust and its subsidiaries (together, the Group) are mainly engaged in the leasing of commercial properties in China.

Full company description

Yuexiu Real Estate Investment Trust and its subsidiaries (together, the Group) are mainly engaged in the leasing of commercial properties in China. Yuexiu REIT is a Hong Kong collective investment scheme constituted as a unit trust by the Trust Deed entered into between the Manager and HSBC Institutional Trust Services (Asia) Limited, as the Trustee of Yuexiu REIT (the Trustee) on 7 December 2005 (as amended by First Supplemental Deed dated 25 March 2008, Second Supplemental Deed dated 23 July 2010, Third Supplemental Deed dated 25 July 2012, Fourth Supplemental Deed dated 3 April 2020 and Fifth Supplemental Deed dated 28 May 2021) and authorized under section 104 of the Securities and Futures Ordinance subject to the applicable conditions imposed by Securities and Futures Commission from time to time. The address of its registered office is 17B, Yue Xiu Building, 160 Lockhart Road, Wanchai, Hong Kong. Yuexiu REIT was listed on The Stock Exchange of Hong Kong Limited on 21 December 2005. This interim condensed consolidated financial information is presented in Renminbi, unless otherwise stated. This interim condensed consolidated financial information was approved for issue by the Board of Directors of the Manager on 14 August 2005. Yuexiu Real Estate Investment Trust was incorporated in 1997 in Hong Kong.

Company description, as reported by the company or data provider.

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Yuexiu Real Estate Investment Trust and its subsidiaries (together, the Group reported revenue of HK$1.8B in FY2025 versus HK$1.8B in FY2021, a compound +0.4%/yr. Reported net income was −HK$694M in FY2025.

Growth Quality 22/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$1.8B
Latest YoY
−10.0%
Avg. growth/yr (3Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
−0.8%
Avg. growth/yr (5Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+0.8%
Avg. growth/yr (22Y) Measures the company's TOTAL revenue from reported annual statements: compound average growth per year (CAGR) from the fiscal year 3, 5 or N years back to the most recent comparable fiscal year. Not per share: buybacks do not change this number, and a merger can appear as a growth jump.
+7.3%
Revenue +0.4%/yr
FY21 HK$1.8B
FY22 HK$1.9B
FY23 HK$2.1B
FY24 HK$2.0B
FY25 HK$1.8B
Net income
FY21 HK$645M
FY22 −HK$529M
FY23 HK$4.6M
FY24 −HK$321M
FY25 −HK$694M

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Cite: Fair Value Calculator (2026). "Yuexiu Real Estate Investment Trust and its subsidiaries (together, the Group Fair Value". https://www.fairvalue-calculator.com/stock/0405

Peer Group

REIT - Office · 71 stocks

How this stock ranks against its industry: the green marker is this stock, the band is the typical 25–75% peer range, and the tick is the median.

Quality Score 48 · Below median
Fair Value upside +109% · Top 25%
Return on assets 1% · Below median
Net margin (TTM) -38% · Bottom 25%
Operating margin (TTM) 47% · Above median
Revenue growth -14% · Bottom 25%
Dividend yield (TTM) 8.0% · Top 25%
Debt / equity 0.52× · Lower than median

Valuation Multiples vs REIT - Office median · lower = cheaper

P/S (TTM) 0.24× · Cheaper than 75% of peers
P/FCF 1.1× · Cheaper than 75% of peers
EV/EBITDA 5.3× · Cheaper than 75% of peers

Snowflake

Five quick dimensions, each 0 to 100: VALUE (fair-value potential), FUTURE (revenue growth), PAST (return on equity), HEALTH (low debt), DIVIDEND (yield). Green = this stock, grey = typical sector peer.

VALUE 100 · sector 23
FUTURE 0 · sector 0
PAST 0 · sector 6
HEALTH 74 · sector 66
DIVIDEND 100 · sector 100

Values & ESG

Does this company touch areas you may want to avoid? The classification is inferred from sector and industry.

None of the checked exposures detected

ESG scores are not available for this stock yet. Values and ESG data are contextual and can differ between providers.

Similar stocks

10 more REIT - Office stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
MERLIN Properties SOCIMI, S.A MRL €15.23 €5.66 -63%
BXP, Inc BXP $67.95 $53.27 -22%
Vornado Realty Trust VNORP $51.00 $40.45 -21%
Alexandria Real Estate Equities, Inc ARE $48.06 $58.69 +22%
Hudson Pacific Properties, Inc HPP $14.31 $4.28 -70%
Mapletree Pan Asia Commercial Trust N2IU 1.27 SGD 1.14 SGD -10%
Cousins Properties Incorporated CUZ $29.49 $17.46 -41%
Kilroy Realty Corporation KRC $36.24 $40.37 +11%
Keppel DC REIT AJBU 2.21 SGD 1.68 SGD -24%
DEXUS DXS A$5.96 A$4.49 -25%

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Frequently asked questions

Is Yuexiu Real Estate Investment Trust and its subsidiaries (together, the Group (0405) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$1.37 versus a price of HK$0.6550, about +109% (undervalued).
What is the fair value of 0405?
Our model-based fair value for Yuexiu Real Estate Investment Trust and its subsidiaries (together, the Group is HK$1.37 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.6550.
What is the quality score of 0405?
Yuexiu Real Estate Investment Trust and its subsidiaries (together, the Group has a Quality Score of 47/100. It measures business quality (profitability, growth, cash flow, balance-sheet strength, investment discipline, share issuance). Market factors such as price momentum and volatility do not enter the number; they are shown separately in the detail view.
What is the revenue of Yuexiu Real Estate Investment Trust and its subsidiaries (together, the Group (0405)?
Yuexiu Real Estate Investment Trust and its subsidiaries (together, the Group reported trailing-twelve-month revenue of about HK$1.8B (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 0405?
The net profit margin of Yuexiu Real Estate Investment Trust and its subsidiaries (together, the Group is about -38.0%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Yuexiu Real Estate Investment Trust and its subsidiaries (together, the Group pay a dividend?
Yuexiu Real Estate Investment Trust and its subsidiaries (together, the Group currently shows a dividend yield of about 8.00% relative to its recent price (as of Aug 13, 2026).

How we calculate Fair Value

Each company is valued through a stack of independent intrinsic-value models (DCF variants, residual-income, multiples and more), blended into one family-balanced consensus and weighted by how much trustworthy data backs it. A separate quality layer scores the fundamentals. Every input is real reported data, nothing guessed.

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