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Automotive Properties (TSE:APR.UN)
TSX:APR.UN
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Automotive Properties
(TSX:APR.UN)
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Rating:66Neutral
Price Target:
C$12.00
▲(8.01% Upside)
Automotive Properties' overall stock score reflects its strong financial performance and attractive dividend yield, which are offset by current bearish technical indicators. The absence of EBIT data and lack of recent earnings call insights slightly dampen the outlook. However, the company's robust cash flow and stable balance sheet provide a solid foundation for future growth.
Positive Factors
Stable Revenue Model
The triple-net lease agreements ensure stable and predictable cash flows, as tenants cover property expenses, reducing operational risks.
Strong Cash Flow Generation
Robust cash flow generation supports financial flexibility and potential for reinvestment or distribution to shareholders, enhancing long-term stability.
Healthy Balance Sheet
A manageable debt level and strong ROE indicate prudent financial management, allowing for sustainable growth and resilience against economic fluctuations.
Negative Factors
Absence of EBIT Data
Lack of EBIT data raises transparency issues regarding operational profitability, potentially obscuring true business performance and hindering investor confidence.
Moderate Risk Exposure
A moderate equity ratio suggests potential vulnerability to market fluctuations, which could impact financial stability and limit growth opportunities.
Declining EPS Growth
Significant decline in EPS growth indicates challenges in profitability, which could affect future earnings potential and shareholder returns.
Automotive Properties (APR.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$541.76M
Dividend Yield8.09%
Average Volume (3M)41.22K
Price to Earnings (P/E)15.7
Beta (1Y)0.70
Revenue Growth1.98%
EPS Growth-51.66%
CountryCA
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Specialty
Share Statistics
EPS (TTM)0.27
Shares Outstanding49,117,110
10 Day Avg. Volume92,408
30 Day Avg. Volume41,215
Financial Highlights & Ratios
PEG Ratio0.18
Price to Book (P/B)0.81
Price to Sales (P/S)5.69
P/FCF Ratio7.04
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$12.75Price Target Upside14.76% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
Automotive Properties Business Overview & Revenue Model
Company DescriptionAutomotive Properties REIT (APR.UN) is a real estate investment trust focused on acquiring, owning, and managing income-producing automotive retail properties across Canada. The company primarily invests in dealership properties, including new and used vehicle dealerships, as well as service and repair facilities. By targeting properties leased to high-quality automotive brands, APR.UN aims to create a diversified portfolio that generates stable cash flows and provides value to its investors.
How the Company Makes MoneyAutomotive Properties generates revenue primarily through long-term lease agreements with automotive dealerships. The company earns rental income from these leases, which are typically structured as net leases where tenants are responsible for property-related expenses. This model provides predictable and stable cash flow. Key revenue streams include base rent and additional income from property management services. Significant partnerships with leading automotive brands enhance the company's portfolio quality and tenant stability, contributing to its earnings. Additionally, the REIT may benefit from property appreciation and strategic acquisitions that expand its asset base and revenue potential.
Automotive Properties Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Nov 13, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted strategic growth through acquisitions and an increase in AFFO, indicating positive operational performance. However, it was offset by a significant decline in net income and increased interest expenses, suggesting financial challenges.Q3-2024 Updates
Positive Updates
Property Rental Revenue Growth
Property rental revenue increased by 0.7% from Q3 a year ago, reflecting growth from property acquired in Q2 last year and contractual annual rent increases.
Successful Kennedy Lands Sale
Closed the sale of Kennedy Lands for $54 million, representing a 79% premium above IFRS value, demonstrating the ability to unlock urban land value.
Strategic Acquisitions
Entered agreements to acquire heavy construction equipment dealership properties in Greater Montreal and a Rivian-tenanted property in Tampa, marking entry into new markets and increasing portfolio diversification.
AFFO Increase
AFFO increased by 1.7% compared to Q3 a year ago, reflecting the impact of property acquisition and contractual rent increases.
Debt Management
Amended and extended a credit facility from January 2025 to January 2028, with increased capacity, maintaining a low debt to GBV ratio of 43.7%.
Negative Updates
Significant Net Income Decline
Net income decreased to $1.8 million from $28.3 million in Q3 a year ago, primarily due to noncash fair value adjustments.
Increased Interest Expense
Interest expense and other financing charges increased to $6.5 million, up by $0.2 million from Q3 a year ago, due to additional debt and higher interest rates.
FFO Decrease
FFO decreased by 0.4% compared to Q3 last year due to higher interest expense and reduction in straight-line rent adjustment.
Company Guidance
During the Q3 2024 earnings call for Automotive Properties REIT, the executives provided detailed guidance, highlighting several key metrics. Property rental revenue saw a 0.07% increase year-over-year, reaching $23.5 million, while cash NOI rose by 2.4% to $19.9 million. The REIT's AFFO per unit on a diluted basis increased by $0.233 from $0.23. Following the sale of Kennedy Lands for $54 million, representing a 79% premium above IFRS value and a capitalization rate of approximately 3.36%, the company plans to redeploy proceeds to drive AFFO growth per unit in 2025. The REIT also announced acquisitions in Montreal and Tampa for approximately CAD 25.4 million and USD 13.5 million, respectively, with expected closures by December 2024 and Q1 2025. Furthermore, the company maintains a strong financial position with an effective weighted average interest rate of 4.31% and a debt-to-GBV ratio of 43.7% as of September 30, 2024. Looking ahead, the REIT anticipates declaring a special distribution to unitholders due to increased taxable income from property sales and is poised for growth with a diverse portfolio and strategic acquisitions.Automotive Properties Financial Statement Overview
Summary
Automotive Properties has shown remarkable revenue growth and high profitability, with strong gross and net profit margins. The balance sheet reflects a healthy equity base, manageable debt levels, and a strong ROE, while cash flow performance is robust. However, the absence of EBIT data is a concern.Income Statement
Automotive Properties has shown remarkable revenue growth, with a year-over-year increase to $93.88M in 2024 from $92.48M in 2023. The gross profit margin remains strong at 84.5%. Despite a lack of EBIT figures for 2024, the EBITDA margin is impressive at 103.1%, indicating robust operational efficiency. However, the absence of EBIT data raises concerns about operating profit transparency. Net profit margin is high at 76.7%, signifying excellent profitability.76
Positive
Balance Sheet
The balance sheet of Automotive Properties reflects a healthy equity base with stockholders' equity at $663.40M, an increase from $539.99M in the previous year. The debt-to-equity ratio is manageable at 0.76, showcasing prudent leverage use. However, the equity ratio is 55.7%, indicating moderate risk exposure. ROE is notably strong at 10.9%, suggesting effective utilization of equity to generate profits.68
Positive
Cash Flow
Cash flow performance is robust, with a free cash flow of $75.91M and a significant operating cash flow to net income ratio of 1.05. This indicates strong cash generation capabilities relative to earnings. Moreover, the free cash flow to net income ratio remains equally strong at 1.05, reflecting efficient cash conversion from profits. The stability of cash flows is supported by consistent free cash flow growth.82
Very Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 95.45M | 93.88M | 92.48M | 82.86M | 78.22M | 75.12M |
| Gross Profit | 80.73M | 79.33M | 78.41M | 70.58M | 67.08M | 64.02M |
| EBITDA | 53.91M | 96.78M | 75.47M | 77.61M | 101.00M | 66.21M |
| Net Income | 34.51M | 72.00M | 50.99M | 119.67M | 122.38M | 4.82M |
Balance Sheet | ||||||
| Total Assets | 1.23B | 1.19B | 1.19B | 1.09B | 1.05B | 936.35M |
| Cash, Cash Equivalents and Short-Term Investments | 621.00K | 336.00K | 298.00K | 396.00K | 474.00K | 308.00K |
| Total Debt | 544.52M | 502.24M | 535.08M | 434.89M | 420.58M | 403.02M |
| Total Liabilities | 569.03M | 527.33M | 653.91M | 572.87M | 591.28M | 545.10M |
| Stockholders Equity | 662.82M | 663.40M | 539.99M | 520.94M | 460.37M | 391.25M |
Cash Flow | ||||||
| Free Cash Flow | 76.00M | 75.91M | 74.27M | 64.55M | 62.21M | 57.17M |
| Operating Cash Flow | 76.00M | 75.91M | 74.27M | 64.55M | 62.21M | 57.17M |
| Investing Cash Flow | -22.95M | 21.38M | -110.42M | -24.74M | -24.87M | -45.78M |
| Financing Cash Flow | -52.67M | -97.26M | 36.06M | -39.88M | -37.18M | -56.35M |
Automotive Properties Technical Analysis
Neutral
11.11
Price Trends
11.36
Negative
11.24
Negative
10.60
Positive
Market Momentum
-0.09
Negative
46.99
Neutral
73.14
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:APR.UN, the sentiment is Neutral. The current price of 11.11 is below the 20-day moving average (MA) of 11.14, below the 50-day MA of 11.36, and above the 200-day MA of 10.60, indicating a neutral trend. The MACD of -0.09 indicates Negative momentum. The RSI at 46.99 is Neutral, neither overbought nor oversold. The STOCH value of 73.14 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:APR.UN.
Automotive Properties Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | C$453.89M | 12.98 | 6.45% | 6.81% | 5.14% | 209.83% | |
| ― | C$945.30M | 10.10 | 4.86% | 4.19% | 3.93% | -29.40% | |
| ― | C$511.76M | 7.40 | 5.89% | 3.71% | -0.69% | ― | |
| ― | $780.03M | 25.94 | 2.47% | 7.93% | 4.66% | -82.85% | |
| ― | C$541.76M | 15.69 | 5.17% | 8.09% | 1.98% | -51.66% | |
| ― | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
| ― | $596.13M | ― | -3.37% | 9.72% | -21.40% | 71.00% |
* Real Estate Sector Average
TSE:APR.UN
Automotive Properties
11.11
-0.23
-2.03%
TSE:MRG.UN
Morguard NA REIT UN
18.16
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1.62%
TSE:PLZ.UN
Plaza Retail REIT
4.11
0.55
15.45%
TSE:AX.UN
Artis Real Estate Investment
6.24
-1.16
-15.70%
TSE:MI.UN
Minto Apartment Real Estate Investment Trust
13.87
-0.29
-2.05%
TSE:NXR.UN
Nexus Real Estate Investment
8.07
0.31
3.98%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.