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Crombie Real Estate ate (TSE:CRR.UN)
TSX:CRR.UN
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Crombie Real Estate ate
(TSX:CRR.UN)
69Neutral
Positive Factors
Credit Rating
The balance sheet is in great shape and efforts to improve the REIT's financial profile could soon be rewarded with a one-notch credit rating upgrade.
Financial Performance
Funds from operations per unit increased by 6.7% in the recent quarter, driven by better-than-expected leasing activity.
Portfolio Performance
The grocery-anchored and necessity-based portfolio benefits from strong retail fundamentals and should continue to perform well through 2025.
Negative Factors
G&A Costs
G&A costs rose 25% due to greater unit-based compensation expense as the unit price has risen 14.5% over the past year.
Interest Expense
Interest expense increased as Crombie REIT refinanced maturing debt at higher interest rates.
Office Portfolio
Within the office portfolio, same-property net operating income dropped 8.2% in the recent quarter as occupancy decreased.
Crombie Real Estate ate (CRR.UN) vs. S&P 500 (SPY)
Market Cap
C$2.60B
Dividend Yield6.3%
Average Volume (3M)185.98K
Price to Earnings (P/E)―
Beta (1Y)1.01
Revenue Growth8.82%
EPS Growth92.79%
CountryCA
Employees303
SectorReal Estate
Sector Strength69
IndustryREIT - Diversified
Share Statistics
EPS (TTM)-0.02
Shares Outstanding108,892,550
10 Day Avg. Volume180,905
30 Day Avg. Volume185,977
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)5.45
Price to Cash Flow (P/CF)6.90
P/FCF Ratio9.10
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$15.90Price Target Upside12.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
Crombie Real Estate ate Business Overview & Revenue Model
Company DescriptionCrombie Real Estate Investment Trust (CRR.UN) is a Canadian real estate investment trust that focuses on owning, operating, and developing a portfolio of primarily grocery-anchored retail properties across Canada. The company's portfolio includes retail plazas, shopping centers, and other commercial real estate assets, aiming to provide stable and growing cash distributions to its unitholders.
How the Company Makes MoneyCrombie Real Estate Investment Trust generates revenue primarily through the leasing of its retail and commercial properties. The company earns rental income from tenants, which include national and regional retailers, especially those in grocery and pharmacy sectors, as well as other commercial tenants. Crombie's revenue model is bolstered by long-term lease agreements, stable occupancy rates, and strategic property acquisitions and developments. Additionally, Crombie enhances its earnings through property management and development services, leveraging its expertise in the real estate sector. Key partnerships with major Canadian retailers and investment in high-traffic locations also significantly contribute to its revenue.
Crombie Real Estate ate Financial Statement Overview
Summary
Crombie Real Estate's financial performance in 2024 is impressive, with strong revenue and profit growth, efficient cash flow management, and a stable balance sheet. The company benefits from robust margins and cash generation, although high leverage remains a concern typical for its industry. Overall, the financial health is strong, positioning the company well for future opportunities.Income Statement
The company exhibits strong revenue growth with a 7.2% increase from 2023 to 2024. The gross profit margin remains healthy at approximately 64.4% for 2024. Net profit margin improved significantly from 22.2% in 2023 to 33.2% in 2024, indicating enhanced profitability. The EBITDA margin is robust at 69.9%, reflecting efficient operations. However, the absence of EBIT margin data for 2024 suggests some operational challenges.75
Positive
Balance Sheet
Crombie Real Estate demonstrates a stable financial position with a debt-to-equity ratio of 1.3 in 2024, showing a moderate level of leverage typical for REITs. The equity ratio is 41.9%, indicating a solid equity base. Return on equity improved from 5.4% in 2023 to 8.5% in 2024, showcasing better shareholder returns. The balance sheet stability is strong, but high liabilities relative to assets pose potential risks.70
Positive
Cash Flow
The company shows excellent cash flow management with a substantial increase in free cash flow from 2023 to 2024, growing by 10.2%. The operating cash flow to net income ratio is 1.7, reflecting strong cash generation capability. Free cash flow to net income ratio is 1.7, indicating efficient capital expenditure management. These metrics highlight significant positive cash flow performance.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 476.36M | 444.37M | 419.59M | 408.89M | 388.73M | Gross Profit |
| 307.02M | 290.84M | 281.82M | 283.03M | 258.86M | EBIT |
| 0.00 | 184.36M | 180.98M | 194.92M | 163.07M | EBITDA |
| 332.85M | 264.47M | 260.81M | 270.68M | 238.64M | Net Income Common Stockholders |
| 158.26M | 98.82M | 167.80M | 155.40M | 67.61M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 10.02M | 2.22M | 6.12M | 3.92M | 63.29M | Total Assets |
| 4.43B | 4.15B | 4.08B | 4.02B | 4.11B | Total Debt |
| 2.42B | 2.19B | 2.08B | 2.25B | 2.48B | Net Debt |
| 2.41B | 2.19B | 2.07B | 2.25B | 2.42B | Total Liabilities |
| 2.57B | 2.32B | 2.23B | 2.43B | 2.63B | Stockholders Equity |
| 1.86B | 1.82B | 1.85B | 1.60B | 1.48B |
| Cash Flow | Free Cash Flow | |||
| 264.12M | 239.71M | 233.29M | 224.65M | -75.30M | Operating Cash Flow |
| 264.96M | 239.91M | 233.54M | 224.84M | -73.90M | Investing Cash Flow |
| -100.73M | -143.89M | -47.28M | 18.49M | -124.28M | Financing Cash Flow |
| -154.22M | -102.14M | -185.29M | -302.71M | 261.47M |
Crombie Real Estate ate Technical Analysis
Positive
14.12
Price Trends
13.85
Positive
13.79
Positive
13.81
Positive
Market Momentum
0.06
Positive
51.79
Neutral
42.20
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CRR.UN, the sentiment is Positive. The current price of 14.12 is below the 20-day moving average (MA) of 14.19, above the 50-day MA of 13.85, and above the 200-day MA of 13.81, indicating a neutral trend. The MACD of 0.06 indicates Positive momentum. The RSI at 51.79 is Neutral, neither overbought nor oversold. The STOCH value of 42.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CRR.UN.
Crombie Real Estate ate Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | C$4.30B | 19.01 | 4.50% | 7.32% | 9.46% | -42.77% | |
73 Outperform | C$414.62M | 16.72 | 4.61% | 7.46% | 5.99% | 20.38% | |
69 Neutral | C$2.60B | ― | -0.22% | 6.30% | 8.82% | 92.79% | |
68 Neutral | C$5.11B | 10.92 | 6.34% | 6.75% | 11.62% | 1120.60% | |
67 Neutral | $763.61M | ― | -2.86% | 8.16% | -10.56% | 81.41% | |
66 Neutral | $8.53B | 9.35 | 15.17% | 4.92% | -1.79% | 318.70% | |
61 Neutral | $4.71B | 17.93 | -2.95% | 11.44% | 6.38% | -21.59% |
* Real Estate Sector Average
Performance Comparison
TSE:CRR.UN
Crombie Real Estate ate
14.12
1.24
9.63%
TSE:REI.UN
RioCan Real Estate Investment
17.20
-0.25
-1.43%
TSE:AX.UN
Artis Real Estate Investment
7.67
1.77
30.02%
TSE:CTC.A
Canadian Tire
149.27
20.82
16.21%
TSE:SRU.UN
SmartCentres Real Estate Investment Trust
25.26
3.81
17.76%
TSE:PLZ.UN
Plaza Retail REIT
3.76
0.41
12.24%
Crombie Real Estate ate Earnings Call Summary
Earnings Call Date: Feb 19, 2025 | % Change Since: 0.71% | Next Earnings Date: May 7, 2025
Earnings Call Sentiment Positive
The earnings call highlighted Crombie's robust performance across various metrics, successful acquisitions, and strategic asset management. Despite some challenges with non-core assets and higher interest expenses, the overall sentiment is positive due to strong growth in AFFO, effective portfolio optimization, and a solid financial position.Highlights
Strong Operating Performance
Crombie delivered exceptional performance in 2024 with committed occupancy of 96.8%, same-asset property cash NOI growth of 2.9%, and an average annual minimum rent per square foot growth of 3.9%.
Significant AFFO Growth
AFFO per unit increased by 6.9% from 2023, with a payout ratio now at 82.4%. The AFFO and FFO payout ratios in the fourth quarter were among the lowest in Crombie's history, at 79.7% and 70.3% respectively.
Successful Portfolio Optimization
Crombie added 225,000 square feet of new leases and achieved renewal spreads of 9.8%. The company sold non-core assets with structural vacancies, increasing occupancy by approximately 30 basis points.
Strategic Acquisitions
Crombie completed acquisitions including a 48,000 square foot FreshCo site, a 14,000 square foot IGA store, and the remaining 50% of Zephyr, a mixed-use asset in Vancouver.
Strong Financial Position
Crombie ended 2024 with available liquidity of $682 million and an unencumbered asset pool increased by 40% to $3.7 billion. The company issued $300 million of senior unsecured notes at an interest rate of 4.73%.
Lowlights
Higher Interest Expense
Despite the overall strong financial performance, higher interest expenses partially offset the growth in property revenue from robust leasing activity and acquisitions.
Challenges with Non-Core Assets
Crombie disposed of non-core assets that exhibited structural vacancies and higher-than-average maintenance CapEx, indicating challenges in optimizing these assets.
Company Guidance
During Crombie REIT's Fourth Quarter Conference Call for fiscal year 2024, a comprehensive update on the company's performance and strategy was provided. Crombie achieved a committed occupancy rate of 96.8%, same-asset property cash NOI growth of 2.9%, and an average annual minimum rent per square foot growth of 3.9%. The company added 225,000 square feet of new leases and renewal spreads of 9.8%, resulting in an AFFO per unit of $1.08, a 6.9% increase from 2023, with an AFFO payout ratio of 82.4%. The debt-to-EBITDA ratio ended at 7.96 times. For capital allocation, Crombie spent approximately $121 million, with 50% allocated to nonmajor initiatives, 35% to major developments, and 15% on grocery-anchored acquisitions. The anticipated yield on cost for their current nonmajor development project pool is between 6.9% and 8%. Crombie's financial strength is also highlighted by a debt-to-gross fair value of 43.6% and available liquidity of $682 million. The strategic focus on necessity-based, grocery-anchored retail properties, supported by a strong partnership with Empire, positions Crombie to navigate economic shifts confidently.Crombie Real Estate ate Corporate Events
Dividends
Crombie REIT Announces March 2025 Distribution
Positive
Mar 17, 2025
Crombie Real Estate Investment Trust announced a monthly distribution of $0.07417 per unit for March 2025, payable on April 15, 2025, to unitholders of record as of March 31, 2025. This announcement reflects Crombie’s ongoing commitment to delivering value to its stakeholders and maintaining its position as a leading real estate investment trust in Canada, with a focus on enriching communities through strategic investments.
Private Placements and FinancingM&A TransactionsBusiness Operations and StrategyFinancial Disclosures
Crombie REIT Reports Robust Year-End 2024 Results, Boosts Financial Flexibility
Positive
Feb 19, 2025
Crombie Real Estate Investment Trust reported strong financial performance for the fourth quarter and year-end 2024, with significant growth in occupancy levels, same-asset property cash NOI, and AFFO per unit. The company strategically acquired assets, including the remaining 50% of Zephyr residential in Vancouver, and completed significant financial transactions such as issuing $300 million in senior unsecured notes. These actions enhance Crombie’s financial flexibility and position it for sustained growth, benefiting stakeholders and reinforcing its market standing.
Dividends
Crombie REIT Announces February 2025 Distribution
Positive
Feb 14, 2025
Crombie Real Estate Investment Trust announced its monthly distribution of $0.07417 per unit for February 2025, payable to unitholders on March 14, 2025. This distribution reflects Crombie’s ongoing commitment to providing value to its stakeholders, leveraging its robust portfolio and development pipeline to sustain its position in the real estate industry.
Crombie REIT Declares January 2025 Distribution
Jan 16, 2025
Crombie Real Estate Investment Trust announced its January 2025 monthly distribution of $0.07417 per unit, payable to unitholders on February 14, 2025. This announcement reflects Crombie’s ongoing commitment to providing returns to its investors and highlights its stable financial performance and growth potential within the real estate sector.
Crombie REIT to Discuss Q4 2024 Financial Results
Jan 7, 2025
Crombie Real Estate Investment Trust has announced a conference call scheduled for February 20, 2025, to discuss its financial and operational results for the fourth quarter and the full year of 2024. This announcement highlights Crombie’s commitment to transparency and provides stakeholders with insights into their performance and strategic direction. The results will be published the day before the call, offering stakeholders timely access to financial data and analysis.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.