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

Crombie Real Estate ate (CRR.UN) AI Stock Analysis

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Crombie Real Estate ate

(TSX:CRR.UN)

Rating:69Neutral
Price Target:
C$15.50
▲( 7.12% Upside)
Crombie REIT demonstrates strong financial and operational performance, underpinned by high occupancy rates and strategic growth initiatives. While the dividend yield is attractive, valuation concerns due to a negative P/E ratio and high leverage typical for REITs are notable risks. Technical indicators suggest caution, but the overall outlook remains positive due to effective management and strategic focus.
Positive Factors
Occupancy and Leasing
Committed occupancy rose by 30 basis points to 97.1%, reflecting strong lease renewal activity.
Portfolio and Credit Rating
The balance sheet is in great shape and efforts to enhance the REIT's financial profile could lead to a credit rating upgrade.
Strategic Partnerships
The recent formation of strategic partnerships with Montez and Wesgroup is expected to accelerate the entitlement processes for CRR's major development projects in a more capital-efficient manner.
Negative Factors
General and Administrative Costs
General and administrative costs increased due to higher salaries, benefits from new hires, and increased employee transition costs.
Office Portfolio Performance
The office portfolio experienced a significant decline, with same-property net operating income 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 ("Crombie") is an unincorporated, open-ended real estate investment trust established under, and governed by, the laws of the Province of Ontario. Crombie is one of the country's leading national retail property landlords with a strategy to own, operate and develop a portfolio of high-quality grocery- and pharmacy-anchored shopping centres, freestanding stores and mixed-use developments primarily in Canada's top urban and suburban markets.
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 Financial Statement Overview

Summary
Crombie Real Estate's financial performance in 2024 is impressive, marked by strong revenue and profit growth, efficient cash flow management, and a stable balance sheet. Strong margins and cash generation bolster its position, although high leverage typical for REITs remains a concern.
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.
Breakdown
TTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income StatementTotal Revenue
480.81M476.36M444.37M419.59M408.89M388.73M
Gross Profit
283.79M307.02M290.84M281.82M283.03M258.86M
EBIT
203.35M204.52M184.36M180.98M194.92M163.07M
EBITDA
341.71M332.85M264.47M260.81M270.68M238.64M
Net Income Common Stockholders
156.05M158.26M98.82M167.80M155.40M67.61M
Balance SheetCash, Cash Equivalents and Short-Term Investments
23.52M10.02M2.22M6.12M3.92M63.29M
Total Assets
4.42B4.43B4.15B4.08B4.02B4.11B
Total Debt
2.42B2.42B2.19B2.08B2.25B2.48B
Net Debt
2.40B2.41B2.19B2.07B2.25B2.42B
Total Liabilities
2.58B2.57B2.32B2.23B2.43B2.63B
Stockholders Equity
1.85B1.86B1.82B1.85B1.60B1.48B
Cash FlowFree Cash Flow
246.53M264.12M239.71M233.29M224.65M-75.30M
Operating Cash Flow
247.30M264.96M239.91M233.54M224.84M-73.90M
Investing Cash Flow
-97.38M-100.73M-143.89M-47.28M18.49M-124.28M
Financing Cash Flow
-138.29M-154.22M-102.14M-185.29M-302.71M261.47M

Crombie Real Estate ate Technical Analysis

Technical Analysis Sentiment
Positive
Last Price14.47
Price Trends
50DMA
14.28
Positive
100DMA
13.88
Positive
200DMA
14.04
Positive
Market Momentum
MACD
0.04
Positive
RSI
50.60
Neutral
STOCH
42.94
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 14.47 is below the 20-day moving average (MA) of 14.57, above the 50-day MA of 14.28, and above the 200-day MA of 14.04, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 50.60 is Neutral, neither overbought nor oversold. The STOCH value of 42.94 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 (60)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
C$310.73M7.978.03%8.50%3.34%10.20%
72
Outperform
C$323.79M12.055.68%8.43%-1.07%684.07%
69
Neutral
C$2.68B-0.49%6.15%6.96%85.15%
60
Neutral
$2.76B10.330.49%8507.90%5.95%-17.56%
59
Neutral
C$384.17M-3.77%4.05%0.18%68.25%
58
Neutral
C$2.58B-3.89%6.10%-6.43%-35204.55%
$506.56M-1.80%8.34%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CRR.UN
Crombie Real Estate ate
14.47
2.43
20.18%
TSE:BTB.UN
BTB REIT
3.53
0.55
18.46%
TSE:HR.UN
H&R Real Estate ate Staple
9.84
1.17
13.49%
TSE:MRT.UN
Morguard Real Estate ate
5.93
0.82
16.05%
TSE:PRV.UN
PRO Real Estate Investment
5.34
0.62
13.14%
ARESF
Artis Real Estate Investment
5.17
0.85
19.68%

Crombie Real Estate ate Earnings Call Summary

Earnings Call Date:May 07, 2025
(Q1-2025)
|
% Change Since: -4.17%|
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 Corporate Events

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.

Dividends
Crombie REIT Announces April 2025 Distribution
Positive
Apr 16, 2025

Crombie Real Estate Investment Trust announced a distribution of $0.07417 per unit for April 2025, payable on May 15, 2025, to unitholders of record as of April 30, 2025. This announcement reflects Crombie’s ongoing commitment to providing value to its investors and maintaining its position as a leading real estate investment trust in Canada, with a focus on enriching communities through strategic real estate investments.

Business Operations and Strategy
Crombie REIT Forms Strategic Joint Ventures to Boost Halifax Developments
Positive
Apr 11, 2025

Crombie Real Estate Investment Trust has entered into joint venture partnerships with Montez Corporation to enhance value creation in Halifax, Nova Scotia. These partnerships involve Montez acquiring a 50% interest in The Marlstone project and collaborating on Barrington Street and Brunswick Place developments. This strategic move provides Crombie with immediate cash flow through management fees, enhances its balance sheet flexibility, and allows continued investment in its core retail portfolio, thus supporting long-term growth and value for unitholders.

Shareholder MeetingsFinancial Disclosures
Crombie REIT Announces AGM and Q1 2025 Conference Call
Neutral
Apr 4, 2025

Crombie Real Estate Investment Trust has announced its Fiscal 2024 Annual General Meeting (AGM) and Q1 Fiscal 2025 Conference Call, both scheduled for May 8, 2025. The AGM will be held in New Glasgow, Nova Scotia, and will be accessible via live audio webcast, while the conference call will discuss Crombie’s financial and operational results for the first quarter of 2025. This announcement highlights Crombie’s commitment to transparency and engagement with its stakeholders, providing insights into its financial health and strategic direction.

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.

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.