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Spring REIT (1426) Fair Value & Analysis

Real Estate · HK · Market cap HK$2.2B

SR Spring REIT 1426 · HK
PriceHK$1.19
Fair ValueHK$1.40
Upside+17.7%
Quality50/100
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Mixed Growth
Loss-making · -29.0% net margin
Moderate debt · generates free cash flow
6.31% dividend yield
Trails peers (5/13)
Narrow moat 6/100
Evidence: Medium Range HK$0.3100 – HK$2.49 Share as image

Fair value as of: Aug 13, 2026

From 10 valuation models · updated 3 days ago

Share price −0.8% over the past month.

A solid business, screening 18% undervalued on our models.

What matters now

  • The model range is unusually wide (HK$0.3100 to HK$2.49). The outcome hinges heavily on assumptions, so read the point estimate with caution.
  • 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$1.99 HK$1.16 Fair Value HK$1.40 Jan 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$1.16 – HK$1.99 · fair‑value band HK$0.3100 – HK$2.49 · the HK$1.19 price screens below the HK$1.40 fair value. Dashed = 300-day average. As of Aug 13, 2026.

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Analysis

Spring REIT (1426) currently trades at HK$1.19, while our model-based Fair Value estimate is HK$1.40, implying the stock looks roughly 17.7% undervalued today. The Quality Score stands at 50/100 (solid 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: medium), always confirm before acting.

Over the trailing twelve months, Spring REIT generated revenue of HK$621M at a net margin of -29.0%. Revenue declined 12.5% year over year. It earns a return on equity of -2.1%. Net debt stands at HK$4.4B. Fundamentals as of Aug 13, 2026

Our scenario range runs from HK$0.3100 (bear case) to HK$2.49 (bull case); at HK$1.19, 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 4% above its 52-week low, currently below its 200-day average. For context, the median of 10 Real Estate peers we cover trades at -23% fair-value upside, at 18%, 1426 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$0.5200 80
Rev-Margin DCF HK$0.5300 74
Gordon GGM HK$1.43 HK$2.39 HK$3.51 70
All 10 models by family
DCF Models
FCF DCF HK$0.6400 38
5Y Revenue Exit HK$0.6100 39
10Y Revenue Exit HK$0.4100 36
Dividend Discount
Gordon GGM HK$1.43 HK$2.39 HK$3.51 70
DDM Multi-Stage HK$1.43 HK$2.08 HK$2.77 61
Multiples
EV/EBIT HK$0.2000 HK$1.14 HK$2.08 53
EV/Revenue HK$0.2700 43
Asset-Based
NCAV (Graham) HK$2.08 HK$2.79 HK$4.16 50
Growth DCF
Growth DCF HK$0.5200 80
Rev-Margin DCF HK$0.5300 74

Widest divergence: Asset-Based (HK$2.79) versus Multiples (HK$1.14). Highest evidence: Growth DCF (80).

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Key figures & financial health

Revenue (TTM) HK$621M
Revenue growth (YoY) -12.5%
Net margin -29.0%
Return on equity -2.1%
Free cash flow HK$240M FY2025
Operating margin -7.0%
More key figures
EPS (TTM) HK$-0.0200
Dividend yield 6.3%
EPS growth (YoY) -91.8%
Net debt HK$4.4B FY2025

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

Quality Score breakdown

Overall quality 50/100

Of which business quality 54 · Market factors (momentum, volatility) 30

Profitability 6
Margins and returns on capital today
Quality Growth 19
Are margins and returns improving?
Cashflow 100
Earnings quality: real cash, not paper profit
Fin. Strength 38
Balance sheet, leverage, solvency risk
Investment 99
Disciplined investing over empire-building
Low Volatility 72
Calm price path (market factor)
Momentum 15
Price trend over the last 3–12 months (market factor)
52W Momentum 7
Distance to the 52-week high (market factor)
Net Issuance 77
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

Spring Real Estate Investment Trust (Spring REIT) is a real estate investment trust. It is constituted by a trust deed as amended and supplemented by the first supplemental deed dated 22 May 2015, the First Amending and Restating Deed dated 28 May 2021 and the Second Amending and Restating Deed dated 20 September 2024 (collectively, the Trust Deed) between …

Full company description

Spring Real Estate Investment Trust (Spring REIT) is a real estate investment trust. It is constituted by a trust deed as amended and supplemented by the first supplemental deed dated 22 May 2015, the First Amending and Restating Deed dated 28 May 2021 and the Second Amending and Restating Deed dated 20 September 2024 (collectively, the Trust Deed) between Spring Asset Management Limited and DB Trustees (Hong Kong) Limited, as trustee of Spring REIT (the Trustee). Units of Spring REIT (the Units) were first listed on The Stock Exchange of Hong Kong Limited (the Stock Exchange) on 5 December 2013. Spring REIT offers investors direct exposure to two premium office buildings strategically located in Beijing Central Business District (Beijing CBD) through its ownership in China Central Place Office Tower 1 and 2 (and the relevant portion of the car park) (the CCP Property) and to a landmark shopping mall Huamao Place in Huizhou, located in Greater Bay Area, which comprises seven-storey shopping mall and 750 carpark spaces (the Huamao Place). Spring Real Estate Investment Trust was established on November 14, 2013 and incorporated in Hong Kong.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Spring REIT reported revenue of HK$691M in FY2025 versus HK$601M in FY2021, a compound +3.6%/yr. Reported net income was −HK$195M in FY2025.

Growth Quality 35/100
Revenue is growing, but margins or cash flow do not fully confirm the trend.
Latest Revenue (FY 2025)
HK$691M
Latest YoY
−7.5%
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.
+6.2%
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.
+3.2%
Avg. growth/yr (15Y) 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.
+10.5%
Revenue +3.6%/yr
FY21 HK$601M
FY22 HK$578M
FY23 HK$732M
FY24 HK$747M
FY25 HK$691M
Net income
FY21 HK$510M
FY22 HK$33.0M
FY23 −HK$77.5M
FY24 −HK$49.6M
FY25 −HK$195M

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Cite: Fair Value Calculator (2026). "Spring REIT Fair Value". https://www.fairvalue-calculator.com/stock/1426

Peer Group

REIT - Diversified · 169 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 51 · Below median
Fair Value upside +18% · Above median
Return on assets 1% · Below median
Net margin (TTM) -29% · Bottom 25%
Operating margin (TTM) -7% · Bottom 25%
Revenue growth -13% · Bottom 25%
Dividend yield (TTM) 6.3% · Above median
Debt / equity 0.75× · Higher than median

Valuation Multiples vs REIT - Diversified median · lower = cheaper

P/B 0.05× · Cheaper than 75% of peers
P/S (TTM) 0.46× · Cheaper than 75% of peers
P/FCF 1.2× · Cheaper than median
EV/EBITDA 27.8× · Pricier 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 57 · sector 5
FUTURE 0 · sector 13
PAST 0 · sector 18
HEALTH 62 · sector 73
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 - Diversified stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Goodman Group GMG A$30.05 A$7.37 -75%
VICI Properties Inc VICI $26.07 $41.74 +60%
W. P. Carey Inc WPC $70.69 $34.80 -51%
Charter Hall Group CHC A$23.56 A$10.99 -53%
Stockland SGP A$4.27 A$3.70 -13%
Fibra Uno FUNO11 31.10 MXN 54.87 MXN +76%
The GPT Group GPT A$5.19 A$3.49 -33%
Mirvac Group MGR A$1.77 A$0.5700 -68%
KLCC Property Holdings 5235SS 8.70 MYR 6.66 MYR -23%
Fibra Danhos DANHOS13 28.26 MXN 49.89 MXN +77%

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Frequently asked questions

Is Spring REIT (1426) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$1.40 versus a price of HK$1.19, about +18% (undervalued).
What is the fair value of 1426?
Our model-based fair value for Spring REIT is HK$1.40 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$1.19.
What is the quality score of 1426?
Spring REIT has a Quality Score of 50/100. 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 Spring REIT (1426)?
Spring REIT reported trailing-twelve-month revenue of about HK$621M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1426?
The net profit margin of Spring REIT is about -29.0%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Spring REIT pay a dividend?
Spring REIT currently shows a dividend yield of about 6.31% 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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