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Choice Properties Reit (OTC) (TSE:CHP.UN)
:CHP.UN
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Choice Properties Real Estate Investment
(OTC:CHP.UN)
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Select Model
Rating:56Neutral
Price Target:
C$15.00
▼(-0.07% Downside)
The overall stock score of 56 reflects a mixed outlook. The earnings call provided a positive view with strong occupancy and leasing metrics, which is a significant strength. However, financial performance and valuation are concerning due to high leverage, negative profitability, and a negative P/E ratio. Technical indicators suggest a neutral trend with potential oversold conditions.
Positive Factors
Occupancy Rates
High occupancy rates reflect strong demand and effective asset management, ensuring stable rental income and enhancing long-term financial stability.
Leasing Spreads
Exceptional leasing spreads indicate strong market positioning and asset quality, contributing to increased revenue potential and competitive advantage.
Industrial Portfolio Performance
The robust performance of the industrial portfolio underscores effective strategy execution and strengthens the company's diversified asset base.
Negative Factors
High Leverage
High leverage can strain financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.
Declining Revenue Growth
Declining revenue growth and negative margins suggest operational challenges, which could hinder long-term profitability and market competitiveness.
Residential Market Softening
Softening residential markets may lead to decreased demand and rental income, affecting overall portfolio performance and growth prospects.
Choice Properties Real Estate Investment (CHP.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$10.68B
Dividend Yield5.36%
Average Volume (3M)473.94K
Price to Earnings (P/E)―
Beta (1Y)0.68
Revenue Growth1.46%
EPS Growth-118.83%
CountryCA
Employees285
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)-0.21
Shares Outstanding328,024,260
10 Day Avg. Volume441,031
30 Day Avg. Volume473,938
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)N/A
P/FCF RatioN/A
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$15.55Price Target Upside3.61% Upside
Rating ConsensusHold
Number of Analyst Covering1
Choice Properties Real Estate Investment Business Overview & Revenue Model
Company DescriptionChoice Properties, Canada's preeminent diversified real estate investment trust, is the owner, manager and developer of a high-quality portfolio comprising 725 properties totaling 66.1 million square feet of gross leasable area. Choice Properties owns a portfolio comprised of retail properties predominantly leased to necessity-based tenants; industrial, office and residential assets concentrated in attractive markets; and offers an impressive and substantial development pipeline. Choice Properties' strategic alliance with its principal tenant, Loblaw Companies Limited, the country's leading retailer, is a key competitive advantage providing long-term growth opportunities.
How the Company Makes MoneyChoice Properties generates revenue primarily through leasing its retail, industrial, and office spaces to tenants. The company earns rental income from long-term leases, which are typically structured to provide stable cash flows. A significant portion of its revenue is derived from its partnership with Loblaw Companies Limited, as many of its properties are leased to Loblaw stores, ensuring consistent occupancy and rental income. Additionally, the company may engage in property development and redevelopment projects, which can enhance the value of its portfolio and create new revenue streams. Other income can be generated from property management services and ancillary services related to its properties.
Choice Properties Real Estate Investment Earnings Call Summary
Earnings Call Date:Jul 18, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:Nov 05, 2025
Earnings Call Sentiment Positive
The earnings call reflected a strong performance in the second quarter, with significant achievements in occupancy, leasing spreads, and successful capital transactions. Despite some challenges in the residential market and strategic lease terminations, the overall outlook remains positive.Q2-2025 Updates
Positive Updates
Near Full Occupancy
Achieved a near full occupancy rate of 97.8%, indicating strong demand for their assets.
FFO Per Unit Growth
Delivered a 3.9% growth in FFO per unit, showcasing solid financial performance.
Exceptional Leasing Spreads
Achieved exceptional leasing spreads of 24%, highlighting the quality of their assets.
Strong Industrial Portfolio Performance
Industrial portfolio occupancy increased by 30 basis points to 98% with strong leasing spreads.
Capital Recycling Program Success
Completed approximately $427 million in total real estate transactions, enhancing portfolio quality.
Loblaw Lease Renewals
Renewed 39 Loblaw locations totaling 2.5 million square feet at an 8.6% increase over expiring rents.
Negative Updates
Residential Market Softening
Observed some softening in residential markets as new supply comes online.
Strategic Lease Terminations Impacting Retention
Tenant retention impacted by strategic lease terminations, decreasing overall retention rate.
Company Guidance
During the Choice Properties Real Estate Investment Trust's Q2 2025 earnings call, several key metrics were highlighted to illustrate the company's strong performance and strategic direction. The company maintained near full occupancy levels at 97.8%, driven by robust demand for grocery-anchored retail and industrial assets. It achieved a 3.9% growth in funds from operations (FFO) per unit and exceptional leasing spreads of 24%, reflecting the high quality of its assets. The industrial portfolio saw occupancy increase by 30 basis points to 98%, and the company executed approximately $427 million in total real estate transactions, enhancing its portfolio quality. Additionally, the company completed 321,000 square feet of new leasing and achieved strong renewal spreads, with retail lease renewal spreads averaging 13.2% above expiring rents and industrial lease rate renewals averaging 38.9% above expiry. Same-Asset Net Operating Income (NOI) grew by 1.4%, and the company's IFRS Net Asset Value (NAV) increased by 1.5% to $14.38 per unit. These metrics underscore Choice Properties' resilience and strategic execution in a stable yet uncertain macroeconomic environment.Choice Properties Real Estate Investment Financial Statement Overview
Summary
Choice Properties faces challenges with declining revenue and profitability in the TTM period. Strong gross margins and cash flow generation are positive, but high leverage and negative profitability metrics pose significant risks.Income Statement
The income statement shows a concerning trend with declining revenue growth and negative net profit margin in the TTM period. The gross profit margin remains strong, indicating effective cost management. However, the negative EBIT margin in the TTM suggests operational challenges.45
Neutral
Balance Sheet
The balance sheet reflects a high debt-to-equity ratio, indicating significant leverage, which poses a risk. The equity ratio is stable, but the negative return on equity in the TTM highlights profitability issues. Overall, the balance sheet shows moderate stability with potential risks due to high leverage.55
Neutral
Cash Flow
Cash flow analysis reveals a positive free cash flow growth rate in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is healthy, suggesting efficient cash conversion. However, reliance on free cash flow to net income remains high, indicating potential cash flow volatility.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.38B | 1.37B | 1.43B | 1.26B | 1.29B | 1.27B |
| Gross Profit | 991.90M | 978.57M | 1.04B | 900.64M | 912.01M | 886.60M |
| EBITDA | 467.26M | 1.37B | 1.14B | 1.28B | 956.90M | 981.61M |
| Net Income | -121.55M | 784.44M | 796.69M | 744.25M | 23.01M | 450.69M |
Balance Sheet | ||||||
| Total Assets | 17.72B | 17.56B | 17.31B | 16.82B | 16.17B | 15.65B |
| Cash, Cash Equivalents and Short-Term Investments | 25.36M | 63.39M | 252.42M | 64.74M | 84.30M | 207.22M |
| Total Debt | 6.82B | 6.68B | 6.70B | 6.55B | 6.23B | 6.49B |
| Total Liabilities | 13.20B | 12.66B | 12.94B | 13.00B | 12.86B | 12.12B |
| Stockholders Equity | 4.52B | 4.90B | 4.37B | 3.82B | 3.31B | 3.51B |
Cash Flow | ||||||
| Free Cash Flow | 726.49M | 724.73M | 641.97M | 1.01B | 773.41M | 507.76M |
| Operating Cash Flow | 726.49M | 724.73M | 641.97M | 633.15M | 669.43M | 621.18M |
| Investing Cash Flow | -716.84M | -584.21M | -361.35M | -616.73M | -64.12M | 155.19M |
| Financing Cash Flow | -603.88M | -329.56M | -92.94M | -35.99M | -728.22M | -611.15M |
Choice Properties Real Estate Investment Technical Analysis
Neutral
15.01
Price Trends
14.75
Negative
14.57
Positive
14.10
Positive
Market Momentum
0.06
Positive
46.96
Neutral
27.53
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CHP.UN, the sentiment is Neutral. The current price of 15.01 is above the 20-day moving average (MA) of 14.77, above the 50-day MA of 14.75, and above the 200-day MA of 14.10, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 46.96 is Neutral, neither overbought nor oversold. The STOCH value of 27.53 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CHP.UN.
Choice Properties Real Estate Investment Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | C$4.00B | 9.01 | 11.08% | 5.94% | 4.26% | 72.02% | |
| ― | $5.50B | 19.79 | 3.81% | 6.09% | 17.42% | 377.43% | |
| ― | C$4.52B | 20.53 | 4.42% | 6.97% | 7.01% | -15.80% | |
| ― | C$1.77B | 26.00 | 3.26% | 5.42% | 23.01% | -50.29% | |
| ― | C$4.11B | 15.76 | 6.58% | 4.92% | 2.53% | ― | |
| ― | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
| ― | C$10.68B | ― | -2.85% | 5.36% | 1.46% | -118.83% |
* Real Estate Sector Average
TSE:CHP.UN
Choice Properties Real Estate Investment
14.72
1.33
9.97%
TSE:REI.UN
RioCan Real Estate Investment
18.67
0.98
5.53%
TSE:CRT.UN
CT Real Estate Investment
16.21
2.07
14.64%
TSE:FCR.UN
First Capital Realty
18.58
1.79
10.66%
TSE:SRU.UN
SmartCentres Real Estate Investment Trust
26.40
3.40
14.78%
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Primaris Real Estate Investment Trust
15.15
0.23
1.54%
Choice Properties Real Estate Investment Corporate Events
Dividends
Choice Properties Announces October 2025 Cash Distribution
Positive
Oct 16, 2025
Choice Properties Real Estate Investment Trust has announced a cash distribution for October 2025, amounting to $0.064167 per trust unit, which annualizes to $0.77 per unit. This distribution reflects the company’s ongoing commitment to providing value to its unitholders and underscores its stable financial performance in the real estate market.
The most recent analyst rating on ($TSE:CHP.UN) stock is a Hold with a C$15.00 price target. To see the full list of analyst forecasts on Choice Properties Real Estate Investment stock, see the TSE:CHP.UN Stock Forecast page.
Dividends
Choice Properties Announces September 2025 Cash Distribution
Positive
Sep 15, 2025
Choice Properties Real Estate Investment Trust has announced a cash distribution for September 2025, amounting to $0.064167 per trust unit, with an annualized distribution of $0.77 per unit. This decision reflects the company’s ongoing commitment to delivering value to its unitholders and may enhance its reputation as a reliable investment option within the real estate sector.
The most recent analyst rating on ($TSE:CHP.UN) stock is a Hold with a C$15.00 price target. To see the full list of analyst forecasts on Choice Properties Real Estate Investment stock, see the TSE:CHP.UN Stock Forecast page.
Dividends
Choice Properties Announces August 2025 Cash Distribution
Positive
Aug 14, 2025
Choice Properties Real Estate Investment Trust has announced a cash distribution of $0.064167 per trust unit for August 2025, translating to an annualized distribution of $0.77 per unit. This announcement reflects the company’s ongoing commitment to providing value to its unitholders and maintaining its position as a leading real estate investment trust focused on sustainable development.
The most recent analyst rating on ($TSE:CHP.UN) stock is a Hold with a C$15.15 price target. To see the full list of analyst forecasts on Choice Properties Real Estate Investment stock, see the TSE:CHP.UN Stock Forecast page.
Business Operations and StrategyPrivate Placements and Financing
Choice Properties Completes $500 Million Debenture Issuance
Positive
Aug 8, 2025
Choice Properties Real Estate Investment Trust has successfully issued $350 million in Series W and $150 million in Series X senior unsecured debentures. The proceeds will be used to repay existing debt, including the redemption of Series F debentures, and for general business purposes. The debentures have received favorable credit ratings from Morningstar DBRS and S&P Global Ratings, indicating a positive outlook for the company’s financial stability. This strategic financial maneuver is expected to enhance the company’s market positioning and operational flexibility.
The most recent analyst rating on ($TSE:CHP.UN) stock is a Hold with a C$15.00 price target. To see the full list of analyst forecasts on Choice Properties Real Estate Investment stock, see the TSE:CHP.UN Stock Forecast page.
Business Operations and StrategyPrivate Placements and Financing
Choice Properties REIT Issues New Debentures and Redeems Series F
Positive
Aug 7, 2025
Choice Properties Real Estate Investment Trust announced the issuance of $350 million in Series W and $150 million in Series X senior unsecured debentures, while also redeeming $200 million of Series F debentures. The proceeds from the new debentures will be used to repay existing debt and for general business purposes, positioning the company to maintain its financial stability and support its strategic initiatives.
The most recent analyst rating on ($TSE:CHP.UN) stock is a Hold with a C$15.15 price target. To see the full list of analyst forecasts on Choice Properties Real Estate Investment stock, see the TSE:CHP.UN Stock Forecast page.
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.