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Fortune Real Estate Investment Trust (HKSE:00778) Interest Coverage : 2.07 (As of Jun. 2024)


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What is Fortune Real Estate Investment Trust Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Fortune Real Estate Investment Trust's Operating Income for the six months ended in Jun. 2024 was HK$571 Mil. Fortune Real Estate Investment Trust's Interest Expense for the six months ended in Jun. 2024 was HK$-276 Mil. Fortune Real Estate Investment Trust's interest coverage for the quarter that ended in Jun. 2024 was 2.07. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Fortune Real Estate Investment Trust's Interest Coverage or its related term are showing as below:

HKSE:00778' s Interest Coverage Range Over the Past 10 Years
Min: 2.09   Med: 6.74   Max: 11.28
Current: 2.09

HKSE:00778's Interest Coverage is ranked worse than
64.54% of 722 companies
in the REITs industry
Industry Median: 2.81 vs HKSE:00778: 2.09

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Fortune Real Estate Investment Trust Interest Coverage Historical Data

The historical data trend for Fortune Real Estate Investment Trust's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

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Fortune Real Estate Investment Trust Interest Coverage Chart

Fortune Real Estate Investment Trust Annual Data
Trend Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 6.44 11.28 5.26 2.30 2.09

Fortune Real Estate Investment Trust Semi-Annual Data
Jun15 Dec15 Jun16 Dec16 Jun17 Dec17 Jun18 Dec18 Jun19 Dec19 Jun20 Dec20 Jun21 Dec21 Jun22 Dec22 Jun23 Dec23 Jun24 Dec24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 3.63 2.78 1.93 2.07 2.11

Competitive Comparison of Fortune Real Estate Investment Trust's Interest Coverage

For the REIT - Retail subindustry, Fortune Real Estate Investment Trust's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Fortune Real Estate Investment Trust's Interest Coverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Fortune Real Estate Investment Trust's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Fortune Real Estate Investment Trust's Interest Coverage falls into.


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Fortune Real Estate Investment Trust Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Fortune Real Estate Investment Trust's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Fortune Real Estate Investment Trust's Interest Expense was HK$-511 Mil. Its Operating Income was HK$1,173 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$8,998 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*1173.005/-510.84
=2.30

Fortune Real Estate Investment Trust's Interest Coverage for the quarter that ended in Jun. 2024 is calculated as

Here, for the six months ended in Jun. 2024, Fortune Real Estate Investment Trust's Interest Expense was HK$-276 Mil. Its Operating Income was HK$571 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$9,003 Mil.

Interest Coverage=-1* Operating Income (Q: Jun. 2024 )/Interest Expense (Q: Jun. 2024 )
=-1*571.215/-276.227
=2.07

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.

Fortune Real Estate Investment Trust  (HKSE:00778) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Fortune Real Estate Investment Trust Interest Coverage Related Terms

Thank you for viewing the detailed overview of Fortune Real Estate Investment Trust's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Fortune Real Estate Investment Trust Business Description

Industry
GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Fortune Real Estate Investment Trust (HKSE:00778) » Definitions » Interest Coverage
Comparable Companies
HKSE:02778 SPG O KIM REG XPAR:URW ASX:SCG HKSE:00823 SGX:C38U XPAR:LI FRT BRX ADC NNN TSX:CHP.UN ASX:VCX EPRT MAC KRG TSE:8953
Traded in Other Exchanges
FRIVF:USA
Address
5 Temasek Boulevard, No. 12-01, Suntec Tower 5, Singapore, SGP, 038985
Website
https://www.fortunereit.com
Fortune Real Estate Investment Trust is a real estate company that invests in retail shopping malls located in Hong Kong and Singapore with the primary objective of producing stable distributions for unitholders and achieving long-term growth in the net asset value per unit. The trust generates the majority of its revenue from rents and leases, with the remaining revenue from utility charges, management fees, car park revenue, license fees, and other sources. Fortune REIT's tenants include supermarkets, banking, and real estate services companies, restaurants, convenience stores, and general retailers.
Executives
Ck Asset Holdings Limited
Li Ka-shing

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