Hospitality Property Fund (JSE:TSP) ROE %: -4.37% (As of Sep. 2020)


What is Hospitality Property Fund ROE %?

Hospitality Property Fund JSE:TSP 11 ROE % is -4.37% as of Sep. 2020. GuruFocus rates JSE:TSP with a GF Score™ of 11/100. The stock has 8 warning signs investors should review.

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Hospitality Property Fund's annualized net income for the quarter that ended in Sep. 2020 was R-331.75 Mil. Hospitality Property Fund's average Total Stockholders Equity over the quarter that ended in Sep. 2020 was R7,590.83 Mil. Therefore, Hospitality Property Fund's annualized ROE % for the quarter that ended in Sep. 2020 was -4.37%.

The historical rank and industry rank for Hospitality Property Fund's ROE % or its related term are showing as below:

JSE:TSP' s ROE % Range Over the Past 10 Years
Min: -47.47   Med: -0.15   Max: 44.42
Current: -27.98

During the past 11 years, Hospitality Property Fund's highest ROE % was 44.42%. The lowest was -47.47%. And the median was -0.15%.

JSE:TSP's ROE % is not ranked
in the REITs industry.
Industry Median: 6.15 vs JSE:TSP: -27.98

Hospitality Property Fund  (JSE:TSP) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2020 )
=Net Income/Total Stockholders Equity
=-331.75/7590.8305
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(-331.75 / 171.076)*(171.076 / 10295.1335)*(10295.1335 / 7590.8305)
=Net Margin %*Asset Turnover*Equity Multiplier
=-193.92 %*0.0166*1.3563
=ROA %*Equity Multiplier
=-3.22 %*1.3563
=-4.37 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2020 )
=Net Income/Total Stockholders Equity
=-331.75/7590.8305
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (-331.75 / -266.848) * (-266.848 / 57.97) * (57.97 / 171.076) * (171.076 / 10295.1335) * (10295.1335 / 7590.8305)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.2432 * -4.6032 * 33.89 % * 0.0166 * 1.3563
=-4.37 %

Note: The net income data used here is two times the semi-annual (Sep. 2020) net income data. The Revenue data used here is two times the semi-annual (Sep. 2020) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % 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 ROE %s can be extremely high.


Hospitality Property Fund ROE % Related Terms


Hospitality Property Fund ROE % Historical Data

* Premium members only.

The historical data trend for Hospitality Property Fund's ROE % 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.

Hospitality Property Fund ROE % Chart

Hospitality Property Fund Annual Data
Trend Jun10 Jun11 Jun12 Jun13 Jun14 Jun15 Jun16 Mar18 Mar19 Mar20
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 15.15 21.31 1.53 -1.82 -22.22

Hospitality Property Fund Semi-Annual Data
Dec10 Jun11 Dec11 Jun12 Dec12 Jun13 Dec13 Jun14 Dec14 Jun15 Dec15 Jun16 Dec16 Sep17 Mar18 Sep18 Mar19 Sep19 Mar20 Sep20
ROE % 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 -3.16 -0.45 3.95 -49.35 -4.37

JSE:TSP vs HST, PK, APLE: ROE % Comparison

For the REIT - Hotel & Motel subindustry, Hospitality Property Fund's ROE %, along with its competitors' market caps and ROE % 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.


Hospitality Property Fund ROE % vs REITs Industry

For the REITs industry and Real Estate sector, Hospitality Property Fund's ROE % distribution charts can be found below:

* The bar in red indicates where Hospitality Property Fund's ROE % falls into.



Hospitality Property Fund ROE % Calculation

Hospitality Property Fund's annualized ROE % for the fiscal year that ended in Mar. 2020 is calculated as

ROE %=Net Income (A: Mar. 2020 )/( (Total Stockholders Equity (A: Mar. 2019 )+Total Stockholders Equity (A: Mar. 2020 ))/ count )
=-1988.171/( (10222.055+7673.768)/ 2 )
=-1988.171/8947.9115
=-22.22 %

Hospitality Property Fund's annualized ROE % for the quarter that ended in Sep. 2020 is calculated as

ROE %=Net Income (Q: Sep. 2020 )/( (Total Stockholders Equity (Q: Mar. 2020 )+Total Stockholders Equity (Q: Sep. 2020 ))/ count )
=-331.75/( (7673.768+7507.893)/ 2 )
=-331.75/7590.8305
=-4.37 %

* 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 ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is two times the semi-annual (Sep. 2020) net income data. ROE % is displayed in the 30-year financial page.

Frequently Asked Questions Learn more about ROE % →
What does a ROE % of -4.37% mean?
Hospitality Property Fund (JSE:TSP) has a ROE % of -4.37% as of Sep. 2020. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Hospitality Property Fund and its competitors.
Is Hospitality Property Fund's ROE % too high?
Hospitality Property Fund's current ROE % is -4.37%. Overall, Hospitality Property Fund has a GF Score™ of 11/100, reflecting its overall financial health beyond just this single metric.
How does Hospitality Property Fund's ROE % compare to HST and PK?
Hospitality Property Fund's ROE % of -4.37% can be compared against companies in the REITs industry. The industry median ROE % is 6.15. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good ROE % for a REITs company?
The median ROE % among REITs companies is 6.15, based on 933 companies in the industry. Companies in the top quartile (top 25%) have a ROE % significantly above this median, while those in the bottom quartile fall well below. However, ROE % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high ROE % mean?
A high ROE % can signal that a stock is expensive relative to its fundamentals. Return on equity is the ratio of current-period net income to average two-period total equity. View historical data on Hospitality Property Fund and its competitors. For the REITs industry, the median ROE % is 6.15 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Hospitality Property Fund's current ROE % is -4.37%. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Hospitality Property Fund stock overvalued right now?
Hospitality Property Fund (JSE:TSP) has a current ROE % of -4.37%. The current ROE % is -4.37%. Hospitality Property Fund's overall GF Score™ is 11/100 with 8 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is ROE % calculated?
ROE % is calculated from a company's financial statements. For Hospitality Property Fund (JSE:TSP), the current ROE % is -4.37% as of Sep. 2020. 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.

Hospitality Property Fund Business Description

Industry Real EstateREITs
Address Montecasino Boulevard, Palazzo Towers West, Fourways, Johannesburg, ZAF, 2055
Hospitality Property Fund Ltd is a specialised real estate investment trust investing in the hotel and leisure sector, providing investors with exposure to both the property and hospitality industries. The company's portfolio caters to a wide-ranging domestic and international market and accommodates various segments including corporate, government, leisure, group conferencing and event business. The properties are well diversified in terms of geographic location and class of hotel, thus mitigating the inherent risks associated within the cyclical nature of the hospitality industry.