ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. SF Real Estate Investment Trust's annualized return on capital (ROC %) for the quarter that ended in Dec. 2025 was 3.20%.
As of today (2026-06-27), SF Real Estate Investment Trust's WACC % is 4.55%. SF Real Estate Investment Trust's ROC % is 4.39% (calculated using TTM income statement data).
SF Real Estate Investment Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.
SF Real Estate Investment Trust (FRA:8ET) ROC % Explanation
ROC % measures how well a company generates cash flow relative to the capital it has invested in its business. It is also called ROIC %. The reason book values of debt and equity are used is because the book values are the capital the company received when issuing the debt or receiving the equity investments.
There are four key components to this definition. The first is the use of operating income or EBIT rather than net income in the numerator. The second is the tax adjustment to this operating income or EBIT, computed as a hypothetical tax based on an effective or marginal tax rate. The third is the use of book values for invested capital, rather than market values. The final is the timing difference; the capital invested is from the end of the prior year whereas the operating income or EBIT is the current year's number.
Why is ROC % important?
Because it costs money to raise capital. A firm that generates higher returns on investment than it costs the company to raise the capital needed for that investment is earning excess returns. A firm that expects to continue generating positive excess returns on new investments in the future will see its value increase as growth increases, whereas a firm that earns returns that do not match up to its cost of capital will destroy value as it grows.
As of today, SF Real Estate Investment Trust's WACC % is 4.55%. SF Real Estate Investment Trust's ROC % is 4.39% (calculated using TTM income statement data).
SF Real Estate Investment Trust earns returns that do not match up to its cost of capital. It will destroy value as it grows.
Be Aware
Like ROE % and ROA %, ROC % is calculated with only 12 months of data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.
SF Real Estate Investment Trust ROC % Related Terms
SF Real Estate Investment Trust ROC % Historical Data
* 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:
The Operating Income data used here is two times the semi-annual (Dec. 2025) data.
The tax rate is limited to between 0% and 100%.
* 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.
SF Real Estate Investment Trust (FRA:8ET) has a ROC % of 3.20% as of Dec. 2025. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on SF Real Estate Investment Trust and its competitors.
Is SF Real Estate Investment Trust's ROC % too high?
SF Real Estate Investment Trust's current ROC % is 3.20%. The REITs industry median ROC % is 3.74. SF Real Estate Investment Trust's value of 3.20% is 14.4% below this industry median. Overall, SF Real Estate Investment Trust has a GF Score™ of 36/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does SF Real Estate Investment Trust's ROC % compare to PLD and PSA?
SF Real Estate Investment Trust's ROC % of 3.20% can be compared against companies in the REITs industry. The industry median ROC % is 3.74. SF Real Estate Investment Trust's value of 3.20% is 14.4% below this benchmark. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROC % for a REITs company?
The median ROC % among REITs companies is 3.74, based on 749 companies in the industry. Companies in the top quartile (top 25%) have a ROC % significantly above this median, while those in the bottom quartile fall well below. However, ROC % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. SF Real Estate Investment Trust's current ROC % of 3.20% is 14.4% below 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 ROC % mean?
A high ROC % can signal that a stock is expensive relative to its fundamentals. Return on capital is the ratio of current-period net income to average two-period capital. View historical data on SF Real Estate Investment Trust and its competitors. For the REITs industry, the median ROC % is 3.74 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. SF Real Estate Investment Trust's current ROC % is 3.20%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is SF Real Estate Investment Trust stock overvalued right now?
Based on GuruFocus' analysis, SF Real Estate Investment Trust (FRA:8ET) is currently considered Fairly Valued. The stock's GF Value™ is €0.24, compared to a current price of €0.23 — trading 2.8% below its estimated fair value. The current ROC % is 3.20% and 14.4% below the REITs industry median of 3.74. SF Real Estate Investment Trust's overall GF Score™ is 36/100 with 5 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROC % calculated?
ROC % is calculated from a company's financial statements. For SF Real Estate Investment Trust (FRA:8ET), the current ROC % is 3.20% 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 SF Real Estate Investment Trust (FRA:8ET) Overvalued in 2026?
Based on GuruFocus' analysis, SF Real Estate Investment Trust stock appears to be undervalued.
The current stock price of €0.23 is trading 2.8% below its estimated GF Value™ of €0.24.
GuruFocus considers SF Real Estate Investment Trust to be Fairly Valued.
Key valuation signals for FRA:8ET:
ROC %: 3.20%
GF Value™: €0.24 vs. price of €0.23 (2.8% below fair value)
No single metric tells the full story. See the FRA:8ET stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
SF Real Estate Investment Trust Business Description
SF Real Estate Investment Trust is an investment holding company. It is engaged in property investments in Hong Kong, and in Foshan, Wuhu, and Changsha of the People's Republic of China. The Group holds one property company in Hong Kong and three property companies in Mainland China. It has two reportable segments of its business, Hong Kong and Mainland China. Key revenue is generated from Hong Kong.
36GF Score
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