Choice Properties Real Estate Investment (CHP.UN) AI Stock Analysis

• Market Cap: C$10.54B
• Dividend Yield: 5.22%
• Average Volume (3M): 415.84K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.66
• Revenue Growth: 1.93%
• EPS Growth: N/A
• Country: CA
• Employees: 285
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 0.34
• Shares Outstanding: 328,024,260
• 10 Day Avg. Volume: 309,368
• 30 Day Avg. Volume: 415,838
• PEG Ratio: -6.77
• Price to Book (P/B): 1.97
• Price to Sales (P/S): 7.06
• P/FCF Ratio: 13.33
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$15.49
• Price Target Upside: 3.17% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 57 Neutral
• Price Target: C$15.50 ▲(3.26% Upside)

The overall stock score is primarily influenced by the strong earnings call results, which highlight robust leasing activity and financial stability. However, financial performance challenges, particularly high leverage and negative profitability, weigh down the score. Technical indicators suggest moderate positive momentum, while valuation is hindered by a negative P/E ratio despite a strong dividend yield.

Positive Factors

Strong Tenant Demand

High occupancy rates indicate strong tenant demand and stable rental income, which supports long-term revenue stability and growth.

Robust Leasing Activity

Strong leasing activity and rent spreads enhance revenue potential and demonstrate effective property management and market positioning.

FFO Per Unit Growth

Growth in funds from operations per unit reflects improved cash flow and financial health, supporting future investment and distribution capabilities.

Negative Factors

High Leverage

High leverage can increase financial risk and limit flexibility, potentially impacting the company's ability to invest in growth opportunities.

Declining Revenue Growth

Declining revenue growth can signal challenges in maintaining market share and competitiveness, affecting long-term profitability.

Negative Profitability Metrics

Negative profitability metrics indicate operational inefficiencies, which could hinder the company's ability to sustain growth and returns.

Choice Properties Real Estate Investment Business Overview & Revenue Model

Company Description

Choice Properties Real Estate Investment Trust (CHP.UN) is a Canadian real estate investment trust that primarily focuses on the ownership, operation, and development of retail and commercial properties. The company’s portfolio is largely anchored by its strategic partnership with Loblaw Companies Limited, which provides a robust tenant base and long-term leases. Choice Properties operates in the retail, industrial, and office sectors, aiming to deliver sustainable value through a diversified property portfolio across Canada.

How the Company Makes Money

Choice 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 Financial Statement Overview

Summary

Choice Properties faces challenges with declining revenue and profitability in the TTM period. Despite strong gross margins and cash flow generation, high leverage and negative profitability metrics pose risks. Operational inefficiencies and leverage need addressing to improve financial health.

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.

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.

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.

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

• Technical Analysis Sentiment: Positive
• Last Price: 15.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CHP.UN, the sentiment is Positive. The current price of 15.01 is above the 20-day moving average (MA) of 14.89, above the 50-day MA of 14.77, and above the 200-day MA of 14.24, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 58.94 is Neutral, neither overbought nor oversold. The STOCH value of 51.97 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CHP.UN.

Choice Properties Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRT.UN	75 Outperform	C$3.78B	8.12	11.49%	5.90%	4.11%	35.99%
SRU.UN	73 Outperform	C$4.46B	20.28	5.03%	7.06%	0.48%	96.32%
REI.UN	71 Outperform	$5.58B	86.45	0.92%	6.05%	22.22%	-71.38%
PMZ.UN	69 Neutral	C$1.78B	12.56	6.52%	5.72%	26.88%	77.26%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
FCR.UN	65 Neutral	C$3.93B	15.07	6.18%	4.70%	-0.83%	-28.93%
CHP.UN	57 Neutral	C$10.54B	―	17.45%	5.22%	1.93%	―

Choice Properties Real Estate Investment Corporate Events

Choice Properties REIT Reports Strong Q3 2025 Results

Choice Properties Real Estate Investment Trust is a prominent Canadian company specializing in the ownership, operation, and development of high-quality commercial and residential real estate, with a focus on integrating sustainability practices into its operations.

Choice Properties Reports Strong Q3 2025 Financial Results

Choice Properties Real Estate Investment Trust reported strong financial results for the third quarter of 2025, with significant net income growth and increased funds from operations per unit. The company completed several strategic transactions, including retail intensifications and debt management initiatives, which have strengthened its financial position and enhanced its portfolio. The Trust’s occupancy rates and leasing spreads improved, indicating robust tenant demand, and it maintained a strong liquidity position with substantial available credit and unencumbered properties.

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.

Choice Properties Announces October 2025 Cash Distribution

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.

Choice Properties Announces September 2025 Cash Distribution

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.

Choice Properties Announces August 2025 Cash Distribution

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.

Choice Properties Completes $500 Million Debenture Issuance

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.

Choice Properties REIT Issues New Debentures and Redeems Series F

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.