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Regal Real Estate Investment Trust (1881) Fair Value & Analysis

Real Estate · HK · Market cap HK$1.0B

RR Regal Real Estate Investment Trust 1881 · HK
PriceHK$0.3900
Fair ValueHK$0.6700
Upside+71.8%
Quality49/100
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Weak Growth
Loss-making · -24.2% net margin
Low debt · generates free cash flow
2.81% dividend yield
Mixed vs. peers (7/12)
Narrow moat 37/100
Evidence: Medium Range HK$0.6700 – HK$0.6700 Share as image

Fair value as of: Aug 13, 2026

From 7 valuation models · updated 3 days ago

Share price +23.8% over the past month.

Below-average quality, screening 72% undervalued on our models.

What matters now

  • The price is below even our cautious bear case (HK$0.6700). The market is more pessimistic than our downside scenario.
  • Solid quality (49/100) 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$1.50 HK$0.3100 Fair Value HK$0.6700 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$0.3100 – HK$1.50 · the HK$0.3900 price screens below the HK$0.6700 fair value. Dashed = 300-day average. As of Aug 13, 2026.

Full chart & analysis →

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Analysis

Regal Real Estate Investment Trust (1881) currently trades at HK$0.3900, while our model-based Fair Value estimate is HK$0.6700, implying the stock looks roughly 71.8% undervalued today. The Quality Score stands at 49/100 (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: medium), always confirm before acting.

Over the trailing twelve months, Regal Real Estate Investment Trust generated revenue of HK$710M at a net margin of -24.2%. Revenue grew 1.5% year over year. It earns a return on equity of -1.3%. Net debt stands at HK$10.2B. Fundamentals as of Aug 13, 2026

The share trades about 19% below its 52-week high and 28% above its 52-week low, currently above its 200-day average. For context, the median of 10 Real Estate peers we cover trades at -25% fair-value upside, at 72%, 1881 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
EV/EBITDA HK$0.7000 HK$1.45 HK$2.20 54
EV/EBIT HK$1.31 HK$2.27 HK$3.22 53
NCAV (Graham) HK$1.95 HK$2.61 HK$3.90 50
All 7 models by family
DCF Models
5Y Revenue Exit HK$0.0800 39
5Y EBITDA Exit HK$0.3900 HK$1.44 41
10Y EBITDA Exit HK$0.1300 37
Multiples
EV/EBIT HK$1.31 HK$2.27 HK$3.22 53
EV/EBITDA HK$0.7000 HK$1.45 HK$2.20 54
EV/Revenue HK$0.4500 43
Asset-Based
NCAV (Graham) HK$1.95 HK$2.61 HK$3.90 50

Widest divergence: Asset-Based (HK$2.61) versus DCF Models (HK$0.3900). Highest evidence: EV/EBITDA (54).

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Key figures & financial health

Revenue (TTM) HK$710M
Revenue growth (YoY) +1.5%
Net margin -24.2%
Return on equity -1.3%
Free cash flow HK$64.7M FY2025
Operating margin 81.0%
More key figures
EPS (TTM) HK$-0.1600
Dividend yield 2.8%
EPS growth (YoY) -49.3%
Net debt HK$10.2B FY2025

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

Quality Score breakdown

Overall quality 49/100

Of which business quality 47 · Market factors (momentum, volatility) 47

Profitability 7
Margins and returns on capital today
Quality Growth 27
Are margins and returns improving?
Cashflow 62
Earnings quality: real cash, not paper profit
Fin. Strength 37
Balance sheet, leverage, solvency risk
Investment 99
Disciplined investing over empire-building
Low Volatility 79
Calm price path (market factor)
Momentum 34
Price trend over the last 3–12 months (market factor)
52W Momentum 34
Distance to the 52-week high (market factor)
Net Issuance 82
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

Regal Real Estate Investment Trust is a Hong Kong collective investment scheme authorized under section 104 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and its units (the Units) were listed on The Stock Exchange of Hong Kong Limited on 30th March 2007.

Full company description

Regal Real Estate Investment Trust is a Hong Kong collective investment scheme authorized under section 104 of the Securities and Futures Ordinance (Chapter 571 of the Laws of Hong Kong) and its units (the Units) were listed on The Stock Exchange of Hong Kong Limited on 30th March 2007. Regal REIT is governed by a trust deed dated 11th December 2006 (as amended and restated by the first amending and restating deed dated 23rd March 2021 and the second amending and restating deed dated 31st January 2024) constituting Regal REIT (the Trust Deed) and the REIT Code. The principal activity of Regal REIT and its subsidiaries (collectively, the Group) is to own and invest in income-producing hotels, serviced apartments or commercial properties (including office premises) with the objectives of producing stable and growing distributions to Unitholders and to achieve long-term growth in the net asset value per Unit attributable to Unitholders. Regal Real Estate Investment Trust was incorporated in 2006 in Hong Kong.

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

Revenue & earnings trend

FY2021 – FY2025 · reported fiscal years

Regal Real Estate Investment Trust reported revenue of HK$714M in FY2025 versus HK$594M in FY2021, a compound +4.7%/yr. Reported net income was −HK$172M in FY2025.

Growth Quality 29/100
Revenue growth is weak, negative or inconsistent.
Latest Revenue (FY 2025)
HK$714M
Latest YoY
+1.9%
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.
+5.0%
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.
−3.9%
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.
−2.9%
Revenue +4.7%/yr
FY21 HK$594M
FY22 HK$616M
FY23 HK$618M
FY24 HK$701M
FY25 HK$714M
Net income
FY21 HK$577M
FY22 HK$930M
FY23 HK$266M
FY24 −HK$204M
FY25 −HK$172M

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Cite: Fair Value Calculator (2026). "Regal Real Estate Investment Trust Fair Value". https://www.fairvalue-calculator.com/stock/1881

Peer Group

REIT - Hotel & Motel · 35 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 +72% · Top 25%
Return on assets 1% · Below median
Net margin (TTM) -24% · Bottom 25%
Operating margin (TTM) 81% · Top 25%
Revenue growth 2% · Above median
Dividend yield (TTM) 2.8% · Bottom 25%
Debt / equity 0.42× · Lower than median

Valuation Multiples vs REIT - Hotel & Motel median · lower = cheaper

P/S (TTM) 0.18× · Cheaper than 75% of peers
P/FCF 2.0× · Cheaper than median
EV/EBITDA 8.9× · Cheaper than median

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 7
FUTURE 8 · sector 2
PAST 0 · sector 6
HEALTH 79 · sector 75
DIVIDEND 56 · 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 - Hotel & Motel stocks, each showing price versus our Fair Value estimate (as of Aug 13, 2026).

Stock Price Fair Value vs Fair Value
Host Hotels & Resorts, Inc HST $22.80 $15.78 -31%
Ryman Hospitality Properties, Inc RHP $123.99 $47.68 -62%
COVH COVH €23.00 €21.42 -7%
Apple Hospitality REIT, Inc APLE $15.57 $12.63 -19%
Park Hotels & Resorts inc. PK $14.85 $19.87 +34%
DiamondRock Hospitality Company DRH $12.01 $8.43 -30%
Sunstone Hotel Investors, Inc SHO $10.80 $2.31 -79%
Pebblebrook Hotel Trust PEB $18.08 $25.37 +40%
Xenia Hotels & Resorts, Inc XHR $19.05 $11.54 -39%
RLJ Lodging Trust (RLJ) RLJ $10.90 $8.20 -25%

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Frequently asked questions

Is Regal Real Estate Investment Trust (1881) overvalued or undervalued?
As of Aug 13, 2026, our model estimates a fair value of HK$0.6700 versus a price of HK$0.3900, about +72% (undervalued).
What is the fair value of 1881?
Our model-based fair value for Regal Real Estate Investment Trust is HK$0.6700 (as of Aug 13, 2026), built from audited fundamentals. The current price is HK$0.3900.
What is the quality score of 1881?
Regal Real Estate Investment Trust has a Quality Score of 49/100. 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 Regal Real Estate Investment Trust (1881)?
Regal Real Estate Investment Trust reported trailing-twelve-month revenue of about HK$710M (latest available figure, as of Aug 13, 2026).
What is the net profit margin of 1881?
The net profit margin of Regal Real Estate Investment Trust is about -24.2%, meaning it is currently running at a net loss. Based on the latest reported figures.
Does Regal Real Estate Investment Trust pay a dividend?
Regal Real Estate Investment Trust currently shows a dividend yield of about 2.81% 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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