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CT Real Estate Investment (TSE:CRT.UN)
TSX:CRT.UN
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CT Real Estate Investment (CRT.UN) AI Stock Analysis

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TSE:CRT.UN

CT Real Estate Investment

(TSX:CRT.UN)

Rating:81Outperform
Price Target:
C$18.50
▲(13.01% Upside)
CT Real Estate Investment's strong financial performance and attractive valuation are the primary drivers of its high score. The company's robust revenue growth and profitability, along with a low P/E ratio and high dividend yield, make it an appealing investment. Technical indicators suggest a bullish trend, although caution is advised due to overbought conditions. The positive earnings call further supports the stock's outlook, despite some concerns over increased expenses and project delays.
Positive Factors
Financial Performance
CRT's operating performance showed a positive trend with Cash NOI increasing by 3.6% year over year.
Investment Strategy
Portfolio expansion included significant development and acquisitions, adding 322ksf to income properties, showcasing a strong investment strategy.
Negative Factors
Investor Base
CRT's ability to broaden its investor base is somewhat hindered by its single-tenant concentration.

CT Real Estate Investment (CRT.UN) vs. iShares MSCI Canada ETF (EWC)

CT Real Estate Investment Business Overview & Revenue Model

Company DescriptionCT Real Estate Investment Trust (TSX:CRT.UN) is an unincorporated, closed-end real estate investment trust formed to own income-producing commercial properties primarily located in Canada. Its portfolio is comprised of over 350 properties totaling approximately 29 million square feet of GLA, consisting primarily of net leased single-tenant retail properties located across Canada. Canadian Tire Corporation, Limited is CT REIT's most significant tenant.
How the Company Makes MoneyCT Real Estate Investment Trust generates revenue primarily through rental income from its portfolio of retail properties. The majority of its properties are leased to Canadian Tire Corporation, Limited, under long-term, triple-net lease agreements that provide a stable and predictable cash flow. This arrangement places the responsibility for property taxes, insurance, and maintenance on the tenant, reducing CRT.UN's operational costs and risks. Additionally, CRT.UN may engage in property development and redevelopment projects to enhance its portfolio value and increase rental income potential. Strategic acquisitions and property enhancements further contribute to its revenue growth. The trust's close relationship with Canadian Tire Corporation ensures consistent occupancy rates and supports its financial performance.

CT Real Estate Investment Earnings Call Summary

Earnings Call Date:Aug 05, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Nov 10, 2025
Earnings Call Sentiment Positive
The earnings call highlighted CT REIT's strong financial performance, successful lease agreements, and strategic investments, contributing to positive momentum. However, increased G&A expenses and project delays slightly tempered the outlook.
Q2-2025 Updates
Positive Updates
Canada Square Property Development
CT REIT announced a new 20-year lease with Canadian Tire Corporation for approximately 550,000 square feet of refurbished space at the Canada Square property. The project includes a $200 million investment for improvements and aims for LEED certification.
Successful Refinancing Activities
CT REIT refinanced its Series B unsecured debentures with a new issuance of $200 million in Series J unsecured debentures at a rate of 4.29%, achieving the tightest REIT 5-year spread in four years.
Strong Financial Performance
Occupancy was steady at 99.5%, with same-store NOI growth of 1.6% and overall NOI growth of 3.4%. AFFO per unit grew by 1.6% in Q2.
Development and Acquisition Strategies
CT REIT announced two new investments totaling $66 million, adding approximately 252,000 square feet to its portfolio, with an expected yield of 7.55%.
Low Indebtedness Ratio
CT REIT's indebtedness ratio dropped below 40%, providing significant financial flexibility for future investments.
Negative Updates
Increased G&A Expenses
G&A expenses as a percentage of property revenue increased to 3.4% from 2.8% due to a deferred income tax provision.
Delayed Development Projects
The completion dates for five development projects were pushed from Q4 2026 to Q2 2027 due to typical development delays.
Company Guidance
During CT REIT's Q2 2025 earnings call, management provided guidance highlighting several key metrics and strategic initiatives. The company announced a new 20-year lease agreement with Canadian Tire Corporation (CTC) for approximately 550,000 square feet of refurbished space at the Canada Square property, with a total investment of over $200 million. The project aims to enhance transit connections and achieve LEED certification. Financially, CT REIT reported strong performance with occupancy rising to 99.5% and net operating income (NOI) growth of 3.4%. Same-store NOI increased by 1.6%, contributing to a same-property NOI growth of 2.2%, while the adjusted funds from operations (AFFO) per unit grew by 1.6%. The REIT maintained a solid balance sheet with an indebtedness ratio dropping below 40%, providing financial flexibility for future investments. Additionally, the refinancing of Series B unsecured debentures with a new issuance at a rate of 4.29% was noted as a significant financing activity. The company also emphasized its ongoing commitment to ESG initiatives, as highlighted in their fourth annual ESG report.

CT Real Estate Investment Financial Statement Overview

Summary
CT Real Estate Investment demonstrates strong financial health with solid profitability and cash flow metrics. The income statement reflects efficient operations and cost management, while the balance sheet suggests a stable financial position with potential for increased equity. The cash flow statement highlights effective cash management, ensuring liquidity and growth potential.
Income Statement
85
Very Positive
The company exhibits a strong income statement with a consistent revenue growth rate, reaching a 9.9% increase in 2024 compared to 2023. The gross profit margin remains robust at approximately 78.2% TTM, indicating efficient cost management. The net profit margin improved to 44.2% TTM, reflecting enhanced profitability. The EBIT margin is also solid at 72.5% TTM, and the EBITDA margin is 82.9% TTM, showcasing strong operational performance.
Balance Sheet
78
Positive
The balance sheet shows a moderate debt-to-equity ratio of 0.87 TTM, indicating a balanced use of debt. The return on equity is impressive at 13.9% TTM, highlighting effective use of shareholder funds. The equity ratio stands at 25.4% TTM, suggesting a stable capital structure but with room for improvement in equity levels.
Cash Flow
82
Very Positive
The cash flow statement is strong, with a notable free cash flow growth rate of 1.2% TTM, reflecting healthy cash generation. The operating cash flow to net income ratio is 1.69 TTM, indicating efficient conversion of income to cash. The free cash flow to net income ratio is 1.56 TTM, suggesting robust cash flow relative to earnings.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue584.86M578.69M552.77M532.79M514.54M502.35M
Gross Profit457.46M453.00M437.25M421.66M407.25M391.58M
EBITDA484.78M436.88M422.01M435.29M562.58M378.71M
Net Income258.79M434.22M105.29M324.61M351.14M75.26M
Balance Sheet
Total Assets7.32B7.25B6.97B6.84B6.50B6.18B
Cash, Cash Equivalents and Short-Term Investments3.17M3.06M20.77M2.61M3.56M4.53M
Total Debt1.62B1.63B1.53B1.44B1.30B1.27B
Total Liabilities3.16B3.15B3.12B3.02B2.82B2.80B
Stockholders Equity1.86B1.83B1.71B1.70B1.62B1.48B
Cash Flow
Free Cash Flow404.46M399.62M393.31M369.13M371.34M353.21M
Operating Cash Flow438.16M436.04M425.06M399.27M407.20M370.77M
Investing Cash Flow-216.74M-217.84M-186.53M-219.62M-146.77M-162.68M
Financing Cash Flow-261.47M-235.91M-220.37M-180.60M-261.41M-213.29M

CT Real Estate Investment Technical Analysis

Technical Analysis Sentiment
Positive
Last Price16.37
Price Trends
50DMA
15.76
Positive
100DMA
15.43
Positive
200DMA
14.73
Positive
Market Momentum
MACD
0.15
Negative
RSI
63.90
Neutral
STOCH
50.33
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CRT.UN, the sentiment is Positive. The current price of 16.37 is above the 20-day moving average (MA) of 16.03, above the 50-day MA of 15.76, and above the 200-day MA of 14.73, indicating a bullish trend. The MACD of 0.15 indicates Negative momentum. The RSI at 63.90 is Neutral, neither overbought nor oversold. The STOCH value of 50.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CRT.UN.

CT Real Estate Investment Peers Comparison

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
81
Outperform
C$3.91B8.7511.08%5.82%4.26%72.02%
63
Neutral
$7.02B13.41-0.50%6.86%4.08%-25.24%
$3.94B19.143.81%6.10%
77
Outperform
C$460.50M13.306.45%6.71%5.14%209.83%
75
Outperform
C$1.60B25.693.26%5.65%23.01%-50.29%
73
Outperform
C$4.09B15.576.58%4.67%2.53%
72
Outperform
C$4.53B20.584.42%6.91%7.01%-15.80%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:CRT.UN
CT Real Estate Investment
16.50
1.97
13.56%
RIOCF
RioCan Real Estate Investment
13.48
0.18
1.35%
TSE:FCR.UN
First Capital Realty
19.44
2.49
14.69%
TSE:PLZ.UN
Plaza Retail REIT
4.17
0.67
19.14%
TSE:SRU.UN
SmartCentres Real Estate Investment Trust
27.03
3.07
12.81%
TSE:PMZ.UN
Primaris Real Estate Investment Trust
14.95
0.69
4.84%
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: Aug 20, 2025