Regal Real Estate Investment Trust (HKSE:01881) Interest Coverage : 0.76 (As of Dec. 2023)

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What is Regal 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. Regal Real Estate Investment Trust's Operating Income for the six months ended in Dec. 2023 was HK$247.3 Mil. Regal Real Estate Investment Trust's Interest Expense for the six months ended in Dec. 2023 was HK$-326.0 Mil. Regal Real Estate Investment Trust's interest coverage for the quarter that ended in Dec. 2023 was 0.76. The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Regal Real Estate Investment Trusts earnings cannot cover its interest expense. If the situation continues, the company may have to issue more debt.

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

HKSE:01881' s Interest Coverage Range Over the Past 10 Years
Min: 0.84 Med: 3.78 Max: 4.4
Current: 0.84

HKSE:01881's Interest Coverage is ranked worse than
90.65% of 674 companies
in the REITs industry
Industry Median: 2.98 vs HKSE:01881: 0.84

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

Regal Real Estate Investment Trust Interest Coverage Historical Data

The historical data trend for Regal 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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Regal Real Estate Investment Trust Interest Coverage Chart

Regal Real Estate Investment Trust Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Interest Coverage

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2.83

3.81

3.74

1.89

0.84

Regal Real Estate Investment Trust Semi-Annual Data
	Jun14	Dec14	Jun15	Dec15	Jun16	Dec16	Jun17	Dec17	Jun18	Dec18	Jun19	Dec19	Jun20	Dec20	Jun21	Dec21	Jun22	Dec22	Jun23	Dec23
Interest Coverage	Get a 7-Day Free Trial															4.12	3.21	1.20	0.93	0.76

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

For the REIT - Hotel & Motel subindustry, Regal 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.

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

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

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

Regal 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.

Regal 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, Regal Real Estate Investment Trust's Interest Expense was HK$-586.3 Mil. Its Operating Income was HK$489.7 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$9,422.1 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Dec. 2023 )	/	Interest Expense (A: Dec. 2023 )
	=	-1	*	489.712	/	-586.338
	=	0.84

Regal Real Estate Investment Trust's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the six months ended in Dec. 2023, Regal Real Estate Investment Trust's Interest Expense was HK$-326.0 Mil. Its Operating Income was HK$247.3 Mil. And its Long-Term Debt & Capital Lease Obligation was HK$9,422.1 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	247.254	/	-325.977
	=	0.76

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

Regal Real Estate Investment Trust (HKSE:01881) 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 .

Regal Real Estate Investment Trust Interest Coverage Related Terms

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

Regal Real Estate Investment Trust (HKSE:01881) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Regal Real Estate Investment Trust (HKSE:01881) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

N/A

Address

68 Yee Wo Street, Unit No. 2001, 20th Floor, Causeway Bay, Hong Kong, HKG

Website

https://www.regalreit.com

Regal Real Estate Investment Trust is a Hong Kong-based REIT that invests in hotel properties, serviced apartments, and commercial properties. The company owns and invests in income-producing hotels, serviced apartments, or commercial properties (including office premises) with the objectives of producing stable and growing distributions to the unitholders of Regal REIT and achieving long-term growth in the net asset value per Unit. the company has two operating segments; the hotel properties segment which invested in the Initial Hotels, iclub Sheung Wan Hotel, iclub Fortress Hill Hotel, and iclub To Kwa Wan Hotel, and the mixed-use property segment which invested in the iclub Wan Chai Hotel. Regal generates the majority of its revenue from the hotel properties segment.

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