Education
About Us
Working with TipRanks
Follow Us
Choice Properties Reit (OTC) (TSE:CHP.UN)
OTHER OTC:CHP.UN
Top Page
Choice Properties Real Estate Investment
(OTC:CHP.UN)
Select Model
Select Model
Rating:57Neutral
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 (CHP.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$10.97B
Dividend Yield5.21%
Average Volume (3M)415.84K
Price to Earnings (P/E)14.2
Beta (1Y)0.39
Revenue Growth1.93%
EPS GrowthN/A
CountryCA
Employees285
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.34
Shares Outstanding328,024,260
10 Day Avg. Volume309,368
30 Day Avg. Volume415,838
Financial Highlights & Ratios
PEG Ratio-6.77
Price to Book (P/B)1.97
Price to Sales (P/S)7.06
P/FCF Ratio13.33
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$15.49Price Target Upside3.17% Upside
Rating ConsensusHold
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
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 rental income from its extensive portfolio of properties. The company leases space to a variety of tenants, including national retailers, which contributes to a steady stream of cash flow. In addition to rental income, Choice Properties may also benefit from property management fees and development profits when undertaking new projects or redevelopments. The company often enters into significant partnerships, particularly with Loblaw Companies Limited, which provides a reliable tenant base and enhances the stability of its revenue. This relationship, along with the strategic acquisition and management of properties in prime locations, plays a crucial role in driving the company's financial performance.
Choice Properties Real Estate Investment Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 18, 2026
Earnings Call Sentiment Positive
Choice Properties delivered strong leasing and occupancy results, with notable growth in FFO per unit and a strategic expansion in retail and industrial assets. Despite some macroeconomic uncertainties and pressures in the residential market, the company's financial position remains solid, and they continue to execute on growth initiatives.Q3-2025 Updates
Positive Updates
Strong Tenant Demand and Near Full Occupancy
Choice Properties maintained near full occupancy of 98%, up 20 basis points from last quarter, driven by strong tenant demand in their national grocery-anchored retail portfolio and industrial assets.
Robust Leasing Activity
The company achieved healthy overall rent spreads of 10.8% during the quarter, with an average rent spread of 23% excluding Loblaw renewals.
FFO Per Unit Growth
FFO per unit growth was 7.8% this quarter, supported by lease surrender revenue from the Loblaw rightsizing initiative. Excluding nonrecurring items, FFO per unit growth was 3.5%.
New Retail and Industrial Developments
Seven new retail intensification projects were delivered at attractive yields. The company also completed a $9 million acquisition of a 50% interest in a greenfield site in Ottawa.
Strong Financial Position
Choice Properties ended the quarter with approximately $1.5 billion of available liquidity and $13.7 billion of unencumbered properties.
Negative Updates
Macroeconomic Uncertainty
The company's performance comes amidst ongoing macroeconomic uncertainty driven by trade-related risks in Canada and abroad.
Pressure in Residential Portfolio
The residential side of the mixed-use and residential portfolio continues to experience pressure from new supply.
Higher Net Interest Expense
FFO growth was partially offset by higher net interest expense due to recent financings.
Company Guidance
During the Choice Properties Real Estate Investment Trust's third quarter 2025 earnings call, several key financial metrics and strategic updates were discussed. The company reported a near full occupancy rate of 98%, marking a 20 basis point improvement from the previous quarter. Rent spreads were robust, with overall rents increasing by 10.8%, significantly bolstered by Loblaw renewals. Excluding these renewals, average rent spreads rose by approximately 23%. The quarter also saw a 7.8% growth in funds from operations (FFO) per unit, partly driven by lease surrender revenue from Loblaw's rightsizing initiative. Excluding nonrecurring items, FFO per unit grew by 3.5%. The company completed $118 million in real estate transactions, including a $9 million acquisition for a greenfield site in Ottawa and $109 million in noncore asset dispositions. Additionally, Choice Properties announced a $500 million dual tranche unsecured debenture offering, contributing to a strong debt profile with a 16-year average term. As a result of these activities, the company has increased its 2025 FFO per unit guidance to $1.06 to $1.07, indicating a 3% to 4% year-over-year growth.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 | 1.41B | 1.37B | 1.43B | 1.26B | 1.29B | 1.27B |
| Gross Profit | 1.01B | 978.57M | 1.04B | 900.64M | 912.01M | 886.60M |
| EBITDA | 1.34B | 1.37B | 1.14B | 1.28B | 956.90M | 981.61M |
| Net Income | 784.09M | 784.44M | 796.69M | 744.25M | 23.01M | 450.69M |
Balance Sheet | ||||||
| Total Assets | 17.96B | 17.56B | 17.31B | 16.82B | 16.17B | 15.65B |
| Cash, Cash Equivalents and Short-Term Investments | 35.01M | 63.39M | 252.42M | 64.74M | 84.30M | 207.22M |
| Total Debt | 6.86B | 6.68B | 6.70B | 6.55B | 6.23B | 6.49B |
| Total Liabilities | 7.45B | 12.66B | 12.94B | 13.00B | 12.86B | 12.12B |
| Stockholders Equity | 4.70B | 4.90B | 4.37B | 3.82B | 3.31B | 3.51B |
Cash Flow | ||||||
| Free Cash Flow | 688.40M | 724.73M | 641.97M | 1.01B | 773.41M | 507.76M |
| Operating Cash Flow | 688.40M | 724.73M | 641.97M | 633.15M | 669.43M | 621.18M |
| Investing Cash Flow | -672.69M | -584.21M | -361.35M | -616.73M | -64.12M | 155.19M |
| Financing Cash Flow | -54.63M | -329.56M | -92.94M | -35.99M | -728.22M | -611.15M |
Choice Properties Real Estate Investment Technical Analysis
Positive
15.01
Price Trends
14.82
Positive
14.71
Positive
14.43
Positive
Market Momentum
0.06
Negative
65.77
Neutral
77.08
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 14.80, above the 50-day MA of 14.82, and above the 200-day MA of 14.43, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 65.77 is Neutral, neither overbought nor oversold. The STOCH value of 77.08 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$1.98B | 14.02 | 6.52% | 5.52% | 26.88% | 77.26% | |
70 Outperform | C$2.93B | 1,057.33 | 0.14% | 5.82% | 6.32% | ― | |
68 Neutral | C$4.56B | 18.25 | 5.03% | 7.22% | 0.48% | 96.32% | |
68 Neutral | C$4.07B | 16.71 | 6.18% | 4.71% | -0.83% | -28.93% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | C$5.72B | 89.42 | 0.92% | 6.21% | 22.22% | -71.38% | |
57 Neutral | C$10.97B | 14.22 | 17.45% | 5.21% | 1.93% | ― |
* Real Estate Sector Average
TSE:CHP.UN
Choice Properties Real Estate Investment
15.15
2.67
21.38%
TSE:REI.UN
RioCan Real Estate Investment
19.42
2.05
11.81%
TSE:CRR.UN
Crombie Real Estate ate
15.68
3.23
25.94%
TSE:FCR.UN
First Capital Realty
19.14
3.10
19.33%
TSE:SRU.UN
SmartCentres Real Estate Investment Trust
26.50
3.65
15.97%
TSE:PMZ.UN
Primaris Real Estate Investment Trust
16.71
2.67
19.02%
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.