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Crombie Real Estate ate (TSE:CRR.UN)
TSX:CRR.UN
Canadian Market
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Crombie Real Estate ate (CRR.UN) AI Stock Analysis

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TSE:CRR.UN

Crombie Real Estate ate

(TSX:CRR.UN)

Rating:70Neutral
Price Target:
C$16.00
▲(8.92%Upside)
Crombie Real Estate's strong financial performance and positive earnings call outlook are the primary strengths, contributing to a favorable stock evaluation. The technical analysis presents a neutral picture, while the valuation is challenged by a negative P/E ratio, offset somewhat by a high dividend yield. Overall, the stock is positioned well in its industry but faces some valuation concerns.
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.
Operating Performance
Solid operating performance with in-place occupancy of 96.5% and new leases totaling 20ksf signed at an average year-1 ABR of $23.66.
Strategic Partnerships
The recent formation of two strategic partnerships with Montez and Wesgroup should accelerate the entitlement processes for three medium- and three long-term projects in CRR's major development pipeline in a more capital efficient manner.
Negative Factors
FFO Performance
FFO per unit was flat year-over-year and slightly below analyst estimate and consensus.
G&A Costs
G&A costs jumped due to higher salaries and benefits from new hires, increased employee transition costs, and greater unit-based compensation.
Office Portfolio Performance
The office portfolio saw a significant drop, with same-property NOI down 23.8% as occupancy decreased.

Crombie Real Estate ate (CRR.UN) vs. iShares MSCI Canada ETF (EWC)

Crombie Real Estate ate Business Overview & Revenue Model

Company DescriptionCrombie Real Estate Investment Trust (CRR.UN) is a Canadian real estate investment trust with a focus on owning, operating, and developing a portfolio of retail and commercial properties across Canada. The company's core assets include grocery-anchored shopping centers, freestanding stores, and mixed-use developments. Crombie REIT aims to provide stable and growing cash distributions to its unitholders through its diversified and high-quality real estate portfolio.
How the Company Makes MoneyCrombie Real Estate Investment Trust makes money primarily through rental income generated from its portfolio of retail and commercial properties. The company leases space to a variety of tenants, with a significant portion of its revenue coming from long-term leases with grocery chains and other retailers. Crombie's revenue model is supported by strategic partnerships with major Canadian retail brands, which provide steady and predictable cash flow. In addition to rental income, Crombie may also generate revenue through property development and redevelopment activities, enhancing the value of its assets and creating opportunities for increased rental income. The trust strategically manages its portfolio to maximize occupancy rates and rental yields, while focusing on properties that offer growth potential and resilience against market fluctuations.

Crombie Real Estate ate Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: -1.74%|
Next Earnings Date:Aug 06, 2025
Earnings Call Sentiment Positive
Crombie REIT demonstrated strong operational performance with historic occupancy rates and growth in AFFO per unit. Strategic partnerships and consistent leasing activities further supported a positive outlook. However, increased expenses and flat FFO per unit were noted as areas for improvement.
Q1-2025 Updates
Positive Updates
Historic High Occupancy
Crombie REIT's necessity-based retail portfolio reached a committed occupancy of 97.1%, a historic high for the company.
Strong Financial Metrics
AFFO per unit grew by 3.8% year-over-year, while the AFFO payout ratio stands at 84%.
Successful Partnership Initiatives
New strategic partnerships were announced in Halifax and Vancouver, including a 50% sale in the Marlstone to Montez and collaboration with Wesgroup Properties.
Robust Leasing Activity
167,000 square feet of renewals were completed at a 10% increase over expiring rental rates, with growth of 12.2% over the entire renewal term.
Recognition and Awards
Crombie was named one of Nova Scotia's top employers, Atlantic Canada's Top Employers, Canada's top small and medium employers, and Canada's greenest employer.
Negative Updates
Increased G&A Expenses
General and administrative expenses rose to 5.7% of property revenue, up from 4% in Q1 2024, due to higher salaries, benefits, and employee transition costs.
Higher Interest Expense
Interest expenses increased by $1.8 million due to Series L and Series M senior unsecured notes issued in 2024.
Flat FFO Per Unit
FFO per unit for Q1 2025 was $0.30, unchanged from Q1 2024.
Office Segment Challenges
The office segment faced challenges with an occupancy rate of 86%, with some difficulties in leasing up certain assets.
Company Guidance
During Crombie REIT's first-quarter 2025 conference call, the company reported key metrics demonstrating strong financial and operational performance. Crombie achieved a historic high in committed occupancy at 97.1%, and the necessity-based retail portfolio showed resilience with a same-asset property cash NOI growth of 3.2%. Rental rate growth on renewals was 10% over expiring rates, contributing to an AFFO per unit growth of 3.8% year-over-year. The AFFO payout ratio stood at 84%, with a debt-to-EBITDA ratio of 7.95 times. The company's strategic focus on grocery-anchored retail was underscored by the sale of Loch Lomond Place, generating $3.3 million, and new partnerships in Vancouver and Halifax. Crombie reported available liquidity of $696 million and a debt-to-gross fair value of 43.6%, maintaining a weighted average interest rate of 4.1% on its debt. The company expects yield on cost for the Marlstone development to be between 4.5% and 5.5%. Overall, Crombie emphasized its commitment to strategic growth and financial discipline.

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
75
Positive
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.
Balance Sheet
70
Positive
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.
Cash Flow
80
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue476.36M444.37M419.59M408.89M388.73M
Gross Profit307.02M290.84M281.82M283.03M258.86M
EBITDA332.85M264.47M260.81M270.68M238.64M
Net Income158.26M98.82M167.80M155.40M67.61M
Balance Sheet
Total Assets4.43B4.15B4.08B4.02B4.11B
Cash, Cash Equivalents and Short-Term Investments10.02M2.22M6.12M3.92M63.29M
Total Debt2.42B2.19B2.08B2.25B2.48B
Total Liabilities2.57B2.32B2.23B2.43B2.63B
Stockholders Equity1.86B1.82B1.85B1.60B1.48B
Cash Flow
Free Cash Flow264.12M239.71M233.29M224.65M-75.30M
Operating Cash Flow264.96M239.91M233.54M224.84M-73.90M
Investing Cash Flow-100.73M-143.89M-47.28M18.49M-124.28M
Financing Cash Flow-154.22M-102.14M-185.29M-302.71M261.47M

Crombie Real Estate ate Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price14.69
Price Trends
50DMA
14.68
Positive
100DMA
14.39
Positive
200DMA
14.01
Positive
Market Momentum
MACD
0.02
Positive
RSI
46.37
Neutral
STOCH
26.39
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CRR.UN, the sentiment is Neutral. The current price of 14.69 is below the 20-day moving average (MA) of 14.81, above the 50-day MA of 14.68, and above the 200-day MA of 14.01, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 46.37 is Neutral, neither overbought nor oversold. The STOCH value of 26.39 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for TSE:CRR.UN.

Crombie Real Estate ate Peers Comparison

Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
80
Outperform
C$369.65M13.055.68%7.83%-1.07%684.07%
78
Outperform
C$326.57M8.358.03%8.34%3.34%10.20%
70
Neutral
C$2.72B-0.49%6.06%6.96%85.15%
64
Neutral
$6.87B17.44-1.93%6.95%4.65%-24.33%
59
Neutral
C$3.08B-3.89%6.33%-6.43%-35204.55%
57
Neutral
$747.06M-1.80%7.80%-13.42%86.55%
54
Neutral
C$363.47M-3.77%5.27%0.18%68.25%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CRR.UN
Crombie Real Estate ate
14.69
1.66
12.74%
TSE:AX.UN
Artis Real Estate Investment
7.69
1.43
22.90%
TSE:BTB.UN
BTB REIT
3.71
0.69
22.85%
TSE:MRT.UN
Morguard Real Estate ate
5.69
0.55
10.70%
TSE:HR.UN
H&R Real Estate ate Staple
11.73
2.66
29.33%
TSE:PRV.UN
PRO Real Estate Investment
5.75
1.02
21.56%

Crombie Real Estate ate Corporate Events

Dividends
Crombie REIT Declares July 2025 Distribution
Positive
Jul 16, 2025

Crombie Real Estate Investment Trust announced a monthly distribution of $0.07417 per unit for July 2025, payable on August 15, 2025, to unitholders of record as of July 31, 2025. This announcement reflects Crombie’s ongoing commitment to providing 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 and developments.

The most recent analyst rating on ($TSE:CRR.UN) stock is a Hold with a C$16.00 price target. To see the full list of analyst forecasts on Crombie Real Estate ate stock, see the TSE:CRR.UN Stock Forecast page.

Dividends
Crombie REIT Declares June 2025 Distribution
Positive
Jun 16, 2025

Crombie Real Estate Investment Trust announced a distribution of $0.07417 per unit for June 2025, payable on July 15, 2025, to unitholders of record as of June 30, 2025. This announcement reflects Crombie’s ongoing commitment to providing value to its stakeholders and maintaining its position as a leading real estate investment trust in Canada.

The most recent analyst rating on ($TSE:CRR.UN) stock is a Hold with a C$16.00 price target. To see the full list of analyst forecasts on Crombie Real Estate ate stock, see the TSE:CRR.UN Stock Forecast page.

Dividends
Crombie REIT Announces May 2025 Distribution
Positive
May 16, 2025

Crombie Real Estate Investment Trust announced a monthly distribution of $0.07417 per unit for May 2025, payable on June 13, 2025, to unitholders of record as of May 31, 2025. This announcement reflects Crombie’s ongoing commitment to providing value to its stakeholders and maintaining its position as a leading real estate investment trust in Canada.

The most recent analyst rating on ($TSE:CRR.UN) stock is a Buy with a C$14.75 price target. To see the full list of analyst forecasts on Crombie Real Estate ate stock, see the TSE:CRR.UN Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Crombie REIT Announces Successful Trustee Elections and Resolution Approvals
Positive
May 15, 2025

Crombie Real Estate Investment Trust announced the successful election of its proposed trustees at the recent Annual General Meeting of Unitholders, with over 99% of votes represented by proxy. The resolutions, including the appointment of auditors and executive compensation, were overwhelmingly approved, reflecting strong support from stakeholders. This outcome reinforces Crombie’s stable governance and strategic direction, potentially enhancing its market position and stakeholder confidence.

The most recent analyst rating on ($TSE:CRR.UN) stock is a Buy with a C$14.75 price target. To see the full list of analyst forecasts on Crombie Real Estate ate stock, see the TSE:CRR.UN Stock Forecast page.

Business Operations and StrategyFinancial Disclosures
Crombie REIT Reports Strong Q1 2025 Results with Strategic Growth
Positive
May 7, 2025

Crombie Real Estate Investment Trust reported its first-quarter 2025 results, highlighting significant growth in cash flow driven by a strong necessity-based portfolio and strategic partnerships. The company achieved historic occupancy levels and saw increases in same-asset property cash NOI and AFFO per Unit, reflecting operational resilience. Crombie’s strategic focus and financial discipline position it well for continued performance, with recent partnerships in Halifax and Vancouver designed to unlock value and generate stable fee income.

Business Operations and StrategyFinancial Disclosures
Crombie REIT Reports Strong Q1 2025 Results with Strategic Growth
Positive
May 7, 2025

Crombie Real Estate Investment Trust announced its first-quarter 2025 results, highlighting a significant growth in cash flow driven by its necessity-based portfolio and strategic partnerships. The company achieved historic occupancy levels and reported growth in same-asset property cash NOI and AFFO per Unit. Crombie’s strategic focus and operational strength position it well for continued performance and value delivery, as evidenced by increased property revenue and successful property renewals.

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.Date of analysis: Jul 17, 2025