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Heriot REITJSE:HET 69 Return-on-Tangible-Equity is 15.81% as of Dec. 2025, which is 14% above its 10-year median of 13.81. GuruFocus rates JSE:HET with a GF Score™ of 69/100 and a GF Value™ of R23.62 (Fairly Valued). The stock has 13 warning signs investors should review. Among 926 REITs companies, Heriot REIT ranks better than 91.9% on this metric.
Return-on-Tangible-Equity is calculated as Net Income divided by its average total shareholder tangible equity. Total shareholder tangible equity equals to Total Stockholders Equity minus Intangible Assets. Heriot REIT's annualized net income for the quarter that ended in Dec. 2025 was R1,116 Mil. Heriot REIT's average shareholder tangible equity for the quarter that ended in Dec. 2025 was R7,056 Mil. Therefore, Heriot REIT's annualized Return-on-Tangible-Equity for the quarter that ended in Dec. 2025 was 15.81%.
The historical rank and industry rank for Heriot REIT's Return-on-Tangible-Equity or its related term are showing as below:
JSE:HET'
s Return-on-Tangible-Equity Range Over the Past 10 Years
Min: 2.86 Med: 13.81 Max: 26.66
Current: 19.38
During the past 8 years, Heriot REIT's highest Return-on-Tangible-Equity was 26.66%. The lowest was 2.86%. And the median was 13.81%.
JSE:HET's Return-on-Tangible-Equity is ranked better than 91.9% of 926
companies
in the REITs industry
Industry Median: 6.27
vs JSE:HET: 19.38
Return-on-Tangible-Equity measures the rate of return on the ownership interest (shareholder's tangible equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' tangible equity (shareholders equity minus intangibles). Return-on-Tangible-Equity shows how well a company uses investment funds to generate earnings growth. Return-on-Tangible-Equitys between 15% and 20% are considered desirable.
Be Aware
Net Income is used.
Because a company can increase its Return-on-Tangible-Equity by having more financial leverage, it is important to watch the leverage ratio when investing in high Return-on-Tangible-Equity companies. Like Return-on-Tangible-Asset, Return-on-Tangible-Equity is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
Asset light businesses require very few assets to generate very high earnings. Their Return-on-Tangible-Equitys can be extremely high.
Heriot REIT Return-on-Tangible-Equity Related Terms
Heriot REIT Return-on-Tangible-Equity Historical Data
* Premium members only.
The historical data trend for Heriot REIT's Return-on-Tangible-Equity 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.
JSE:HET vs VICI, WPC: Return-on-Tangible-Equity Comparison
For the REIT - Diversified subindustry, Heriot REIT's Return-on-Tangible-Equity, along with its competitors' market caps and Return-on-Tangible-Equity 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.
Heriot REIT Return-on-Tangible-Equity vs REITs Industry
For the REITs industry and Real Estate sector, Heriot REIT's Return-on-Tangible-Equity distribution charts can be found below:
* The bar in red indicates where Heriot REIT's Return-on-Tangible-Equity falls into.
* 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.
In the calculation of annual Return-on-Tangible-Equity, the net income of the last fiscal year and the average total shareholder tangible equity over the fiscal year are used. In calculating the quarterly data,
the net income data used here is two times the semi-annual (Dec. 2025) net income data.
Return-on-Tangible-Equity is displayed in the 10-year financial page.
What does a Return-on-Tangible-Equity of 15.81% mean?
Heriot REIT (JSE:HET) has a Return-on-Tangible-Equity of 15.81% as of Dec. 2025. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Heriot REIT and its competitors. This is 14% above median its historical median of 13.81. Over the past decade, Heriot REIT's Return-on-Tangible-Equity has ranged from 2.86 to 26.66. According to the industry distribution chart, Heriot REIT ranks #75 out of 926 companies in the REITs industry, placing it in the top 8.1%.
Is Heriot REIT's Return-on-Tangible-Equity too high?
Heriot REIT's current Return-on-Tangible-Equity of 15.81% is 14% above median its 10-year median of 13.81. Over the past 10 years, this metric has ranged from a low of 2.86 to a high of 26.66. The REITs industry median Return-on-Tangible-Equity is 6.27. Heriot REIT's value of 15.81% is 152.2% above this industry median. Based on the distribution chart, Heriot REIT ranks #75 out of 926 companies in the REITs industry, which is in the top quartile — a strong position relative to peers. Overall, Heriot REIT has a GF Score™ of 69/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does Heriot REIT's Return-on-Tangible-Equity compare to VICI and WPC?
According to the REITs industry distribution chart, Heriot REIT ranks #75 out of 926 companies for Return-on-Tangible-Equity. This places Heriot REIT in the top 8% of its industry — outperforming the majority of peers. The industry median Return-on-Tangible-Equity is 6.27. Heriot REIT's value of 15.81% is 152.2% above this benchmark. Historically, Heriot REIT's own Return-on-Tangible-Equity has ranged from 2.86 to 26.66 over the past decade. While the company's 10-year median is 13.81 vs. the industry median of 6.27, Heriot REIT has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Return-on-Tangible-Equity for a REITs company?
The median Return-on-Tangible-Equity among REITs companies is 6.27, based on 926 companies in the industry. Companies in the top quartile (top 25%) have a Return-on-Tangible-Equity significantly above this median, while those in the bottom quartile fall well below. However, Return-on-Tangible-Equity should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Heriot REIT's current Return-on-Tangible-Equity of 15.81% is 152.2% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Return-on-Tangible-Equity mean?
A high Return-on-Tangible-Equity can signal that a stock is expensive relative to its fundamentals. Return on tangible equity is the ratio of current-period net income to average two-period tangible equity. View historical data on Heriot REIT and its competitors. For the REITs industry, the median Return-on-Tangible-Equity is 6.27 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Heriot REIT's current Return-on-Tangible-Equity is 15.81%, which is 14% above median its own 10-year median of 13.81. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Heriot REIT stock overvalued right now?
Based on GuruFocus' analysis, Heriot REIT (JSE:HET) is currently considered Fairly Valued. The stock's GF Value™ is R23.62, compared to a current price of R26.00 — trading 10.1% above its estimated fair value. The current Return-on-Tangible-Equity is 15.81%, which is 14% above median its 10-year median of 13.81 and 152.2% above the REITs industry median of 6.27. Heriot REIT's overall GF Score™ is 69/100 with 13 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Return-on-Tangible-Equity calculated?
Return-on-Tangible-Equity is calculated from a company's financial statements. For Heriot REIT (JSE:HET), the current Return-on-Tangible-Equity is 15.81% as of Dec. 2025. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Heriot REIT (JSE:HET) Overvalued in 2026?
Based on GuruFocus' analysis, Heriot REIT stock appears to be overvalued.
The current stock price of R26.00 is trading 10.1% above its estimated GF Value™ of R23.62.
GuruFocus considers Heriot REIT to be Fairly Valued.
Key valuation signals for JSE:HET:
Return-on-Tangible-Equity: 15.81% (14% above median its 10-year median of 13.81)
GF Value™: R23.62 vs. price of R26.00 (10.1% above fair value)
Industry Position: 152.2% above the REITs median (#75 of 926)
No single metric tells the full story. See the JSE:HET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Heriot REIT Ltd is a South African real estate investment trust. The company's primary segments include retail, industrial, office, specialized, residential, and others. While the majority of the revenue is earned from the Retail segment. The primary objective of the company is to develop or acquire yield-enhancing assets within Southern Africa to create a stable and diverse portfolio for the purposes of generating capital growth and securing escalating net rental income streams. Geographically, the company operates in Gauteng, Western Cape, KwaZulu-Natal, North West, Mpumalanga, Limpopo, Free State, and Namibia.
69GF Score
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