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Suntec Real Estate Investment Trust's (SGX:T82U) Largest Shareholders Are Retail Investors With 41% Ownership, Insiders Own 30%

Simply Wall St ·  May 8, 2023 21:28

Key Insights

  • Suntec Real Estate Investment Trust's significant retail investors ownership suggests that the key decisions are influenced by shareholders from the larger public
  • The top 9 shareholders own 50% of the company
  • Insiders own 30% of Suntec Real Estate Investment Trust

A look at the shareholders of Suntec Real Estate Investment Trust (SGX:T82U) can tell us which group is most powerful. The group holding the most number of shares in the company, around 41% to be precise, is retail investors. That is, the group stands to benefit the most if the stock rises (or lose the most if there is a downturn).

And individual insiders on the other hand have a 30% ownership in the company. Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones.

Let's take a closer look to see what the different types of shareholders can tell us about Suntec Real Estate Investment Trust.

Check out our latest analysis for Suntec Real Estate Investment Trust

ownership-breakdown
SGX:T82U Ownership Breakdown May 9th 2023

What Does The Institutional Ownership Tell Us About Suntec Real Estate Investment Trust?

Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it's included in a major index. We would expect most companies to have some institutions on the register, especially if they are growing.

Suntec Real Estate Investment Trust already has institutions on the share registry. Indeed, they own a respectable stake in the company. This implies the analysts working for those institutions have looked at the stock and they like it. But just like anyone else, they could be wrong. If multiple institutions change their view on a stock at the same time, you could see the share price drop fast. It's therefore worth looking at Suntec Real Estate Investment Trust's earnings history below. Of course, the future is what really matters.

earnings-and-revenue-growth
SGX:T82U Earnings and Revenue Growth May 9th 2023

We note that hedge funds don't have a meaningful investment in Suntec Real Estate Investment Trust. Looking at our data, we can see that the largest shareholder is Yigang Tang with 15% of shares outstanding. ARA Asset Management Limited is the second largest shareholder owning 9.6% of common stock, and Chen Huaidan holds about 8.0% of the company stock.

We did some more digging and found that 9 of the top shareholders account for roughly 50% of the register, implying that along with larger shareholders, there are a few smaller shareholders, thereby balancing out each others interests somewhat.

While it makes sense to study institutional ownership data for a company, it also makes sense to study analyst sentiments to know which way the wind is blowing. There are a reasonable number of analysts covering the stock, so it might be useful to find out their aggregate view on the future.

Insider Ownership Of Suntec Real Estate Investment Trust

While the precise definition of an insider can be subjective, almost everyone considers board members to be insiders. The company management answer to the board and the latter should represent the interests of shareholders. Notably, sometimes top-level managers are on the board themselves.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

Our most recent data indicates that insiders own a reasonable proportion of Suntec Real Estate Investment Trust. It has a market capitalization of just S$4.0b, and insiders have S$1.2b worth of shares in their own names. That's quite significant. It is good to see this level of investment. You can check here to see if those insiders have been buying recently.

General Public Ownership

The general public-- including retail investors -- own 41% stake in the company, and hence can't easily be ignored. While this group can't necessarily call the shots, it can certainly have a real influence on how the company is run.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. To that end, you should learn about the 4 warning signs we've spotted with Suntec Real Estate Investment Trust (including 2 which are concerning) .

If you would prefer discover what analysts are predicting in terms of future growth, do not miss this free report on analyst forecasts.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) simplywallst.com.
This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.

Disclaimer: This content is for informational and educational purposes only and does not constitute a recommendation or endorsement of any specific investment or investment strategy. Read more
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