Choice Properties Real Estate Investment Trust (TSE:CHP.UN)
TSX:CHP.UN
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Choice Properties Real Estate Investment
(TSX:CHP.UN)
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Rating:59Neutral
Price Target:
C$16.00
▲(0.06% Upside)
Action:ReiteratedDate:03/26/26
The score is anchored by steady cash flow and a stable operating base, supported by constructive 2026 guidance and strong occupancy/leasing trends from the earnings call. These positives are tempered by volatile profitability and elevated leverage, and near-term technical indicators that point to weak momentum. Valuation is mixed: a solid yield is offset by a negative P/E driven by losses.
Positive Factors
High occupancy & leasing
Sustained portfolio occupancy (~98.2%) with high retention and significant recent leasing (1.6M sq ft) reduces vacancy-driven revenue volatility. Durable occupancy across retail and industrial supports predictable rental cash flows and underpins medium-term FFO and distribution stability.
Negative Factors
Elevated leverage
The REIT operates with a structurally elevated leverage profile (debt typically exceeding equity and debt-to-EBITDA near 7x). This increases sensitivity to rising rates and refinancing cycles, limiting financial flexibility and raising the stakes on execution and cash generation over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
High occupancy & leasing
Sustained portfolio occupancy (~98.2%) with high retention and significant recent leasing (1.6M sq ft) reduces vacancy-driven revenue volatility. Durable occupancy across retail and industrial supports predictable rental cash flows and underpins medium-term FFO and distribution stability.
Read all positive factors
Choice Properties Real Estate Investment (CHP.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$11.57B
Dividend Yield5.21%
Average Volume (3M)415.84K
Price to Earnings (P/E)―
Beta (1Y)0.47
Revenue Growth1.93%
EPS GrowthN/A
CountryCA
Employees285
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)-0.07
Shares Outstanding328,024,260
10 Day Avg. Volume309,368
30 Day Avg. Volume415,838
Financial Highlights & Ratios
PEG Ratio1.62
Price to Book (P/B)2.34
Price to Sales (P/S)7.55
P/FCF Ratio20.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$16.65Price Target Upside4.13% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
EPS Forecast (FY)1.07
Revenue Forecast (FY)C$1.57B
Choice Properties Real Estate Investment Business Overview & Revenue Model
Company Description
Choice 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 ...
How the Company Makes Money
Choice Properties makes money primarily by generating recurring rental income from leasing its properties to tenants under commercial lease agreements. Its key revenue streams typically include: (1) Base rent from long-term leases across its retai...
Choice Properties Real Estate Investment Earnings Call Summary
Earnings Call Date:Feb 18, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:Apr 29, 2026
Earnings Call Sentiment Positive
The call emphasized multiple operational and financial strengths: high and improving occupancy, solid same-asset NOI and FFO growth, strong industrial performance with substantial mark-to-market upside, active and accretive development pipeline, robust capital recycling, and a healthy balance sheet with ample liquidity. Lowlights were focused and limited: a quarter-over-quarter NAV dip driven by mark-to-market losses (notably Allied), modest pressures in select residential assets, some short-term finance and timing offsets to quarterly results, and sensitivity of 2026 guidance to leasing execution. Overall, the positives (broad portfolio resilience, development value creation, liquidity and strong industrial leasing) materially outweigh the contained negatives.Positive Updates
Strong Occupancy and Leasing Momentum
Portfolio occupancy rose 20 basis points to 98.2% in Q4 2025; retail occupancy up 20 bps to 98.0% and industrial occupancy up 50 bps to 98.8%. Quarterly leasing retention rates were high (portfolio 92.4%; industrial 93.8%) with 1.6 million sq ft of leases completed in the quarter and 233,000 sq ft of new leasing.
Negative Updates
Quarterly NAV Decline Driven by Allied and Property Valuations
IFRS NAV per unit declined to $14.43 in the quarter, a $72 million (≈0.7%) decrease versus Q3 2025, driven primarily by an $87 million fair value loss on the investment in Allied Properties units and a $29 million net fair value loss on investment properties.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Occupancy and Leasing Momentum
Portfolio occupancy rose 20 basis points to 98.2% in Q4 2025; retail occupancy up 20 bps to 98.0% and industrial occupancy up 50 bps to 98.8%. Quarterly leasing retention rates were high (portfolio 92.4%; industrial 93.8%) with 1.6 million sq ft of leases completed in the quarter and 233,000 sq ft of new leasing.
Read all positive updates
Company Guidance
Choice guided that for 2026 it expects to maintain stable occupancy and deliver 2%–3% year‑over‑year same‑asset cash NOI growth (with industrial closer to 3%–4% and retail ~2%–3%), driving FFO per unit (diluted) of $1.08–$1.10; the plan is supported by continued contributions from transactions and development but partially offset by Allied’s distribution cut. The REIT will keep leverage conservative, targeting debt‑to‑EBITDA below its long‑term 7.5x threshold (it finished 2025 at ~7.0x / debt‑to‑EBITDA ~7x), and cited $1.6 billion of available liquidity and $13.8 billion of unencumbered properties; next material maturity is a $350 million debenture in November. Management also announced a distribution increase to $0.78 per unit effective March 2026 (+1.3%), noted a 2025 AFFO payout ratio of 88%, and highlighted upside levers such as stronger leasing, shorter downtime, and lease termination income that could push results toward the high end of guidance.Choice Properties Real Estate Investment Financial Statement Overview
Summary
Income Statement
54
Neutral
Balance Sheet
60
Neutral
Cash Flow
64
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.42B | 1.37B | 1.43B | 1.26B | 1.29B |
| Gross Profit | 1.02B | 978.57M | 1.04B | 900.64M | 912.01M |
| EBITDA | 236.54M | 1.37B | 1.14B | 1.28B | 956.90M |
| Net Income | -61.19M | 784.44M | 796.69M | 744.25M | 23.01M |
Balance Sheet | |||||
| Total Assets | 17.91B | 17.56B | 17.31B | 16.82B | 16.17B |
| Cash, Cash Equivalents and Short-Term Investments | 71.18M | 63.39M | 252.42M | 64.74M | 84.30M |
| Total Debt | 6.80B | 6.68B | 6.70B | 6.55B | 6.23B |
| Total Liabilities | 7.47B | 12.66B | 12.94B | 13.00B | 12.86B |
| Stockholders Equity | 4.58B | 4.90B | 4.37B | 3.82B | 3.31B |
Cash Flow | |||||
| Free Cash Flow | 534.16M | 724.73M | 641.97M | 1.01B | 773.41M |
| Operating Cash Flow | 697.71M | 724.73M | 641.97M | 633.15M | 669.43M |
| Investing Cash Flow | -550.46M | -584.21M | -361.35M | -616.73M | -64.12M |
| Financing Cash Flow | -139.45M | -329.56M | -92.94M | -35.99M | -728.22M |
Choice Properties Real Estate Investment Technical Analysis
Positive
15.99
Price Trends
15.53
Positive
15.16
Positive
14.71
Positive
Market Momentum
0.11
Negative
62.93
Neutral
85.52
Negative
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 15.99 is above the 20-day moving average (MA) of 15.52, above the 50-day MA of 15.53, and above the 200-day MA of 14.71, indicating a bullish trend. The MACD of 0.11 indicates Negative momentum. The RSI at 62.93 is Neutral, neither overbought nor oversold. The STOCH value of 85.52 is Negative, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | C$2.17B | 10.72 | 6.52% | 5.52% | 26.88% | 77.26% | |
74 Outperform | C$3.08B | 24.31 | 6.29% | 5.82% | 6.32% | ― | |
73 Outperform | C$4.57B | 3.77 | 25.30% | 4.71% | -0.83% | -28.93% | |
71 Outperform | C$4.71B | 18.23 | 4.85% | 7.22% | 0.48% | 96.32% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | C$5.86B | 79.85 | 0.92% | 6.21% | 22.22% | -71.38% | |
59 Neutral | C$11.57B | -175.19 | -1.32% | 5.21% | 1.93% | ― |
* Real Estate Sector Average
TSE:CHP.UN
Choice Properties Real Estate Investment
15.99
2.41
17.77%
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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.