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CT Real Estate Investment (TSE:CRT.UN)
TSX:CRT.UN
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CT Real Estate Investment
(TSX:CRT.UN)
Rating:82Outperform
Price Target:
C$18.00
▲( 16.96% Upside)
Positive Factors
Occupancy Rate
CRT's high occupancy rate of 99.4% remains stable, with 700ksf of renewals completed, including significant renewals with Canadian Tire and third-party tenants.
Operating Performance
CRT's operating performance was as expected, with Cash NOI increasing by 3.6% year over year, reflecting contractual rent increases and contributions from capital deployment.
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)
Market Cap
C$3.67B
Dividend Yield5.99%
Average Volume (3M)143.77K
Price to Earnings (P/E)8.3
Beta (1Y)0.75
Revenue Growth4.54%
EPS Growth68.32%
CountryCA
Employees71
SectorReal Estate
Sector Strength62
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.36
Shares Outstanding109,158,775
10 Day Avg. Volume148,291
30 Day Avg. Volume143,769
Financial Highlights & Ratios
PEG Ratio11.51
Price to Book (P/B)1.98
Price to Sales (P/S)0.00
P/FCF Ratio9.09
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$16.08Price Target Upside4.48% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
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 leasing its retail properties. The company earns rental income from long-term lease agreements with tenants, of which Canadian Tire Corporation is the most significant. This stable, long-term lease arrangement with a well-established tenant like Canadian Tire provides a steady and predictable income stream. Additionally, CRT.UN may increase its revenue through property developments and enhancements that can lead to higher rental rates or attract new tenants. The trust may also engage in strategic partnerships or joint ventures to expand its property portfolio, further contributing to its earnings.
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
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.82
Very Positive
| Breakdown | |||||
| TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 584.86M | 578.69M | 552.77M | 532.79M | 514.54M | 502.35M | Gross Profit |
| 457.46M | 453.00M | 437.25M | 421.66M | 407.25M | 391.58M | EBIT |
| 424.04M | 436.88M | 422.01M | 379.34M | 392.67M | 378.71M | EBITDA |
| 484.78M | 557.48M | 422.01M | 435.29M | 562.58M | 378.71M | Net Income Common Stockholders |
| 258.79M | 434.22M | 105.29M | 324.61M | 351.14M | 75.26M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 11.25M | 3.06M | 20.77M | 2.61M | 3.56M | 4.53M | Total Assets |
| 6.86B | 7.25B | 6.97B | 6.84B | 6.50B | 6.18B | Total Debt |
| 1.44B | 1.63B | 1.53B | 1.44B | 1.30B | 1.27B | Net Debt |
| 1.43B | 1.63B | 1.51B | 1.44B | 1.30B | 1.26B | Total Liabilities |
| 3.01B | 3.15B | 3.12B | 3.02B | 2.82B | 2.80B | Stockholders Equity |
| 1.71B | 1.83B | 1.71B | 1.70B | 1.62B | 1.48B |
| Cash Flow | Free Cash Flow | ||||
| 404.46M | 399.62M | 393.31M | 369.13M | 371.34M | 353.21M | Operating Cash Flow |
| 438.16M | 436.04M | 425.06M | 399.27M | 407.20M | 370.77M | 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
Positive
15.39
Price Trends
14.68
Positive
14.44
Positive
14.57
Positive
Market Momentum
0.22
Negative
62.48
Neutral
60.65
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 15.39 is above the 20-day moving average (MA) of 15.10, above the 50-day MA of 14.68, and above the 200-day MA of 14.57, indicating a bullish trend. The MACD of 0.22 indicates Negative momentum. The RSI at 62.48 is Neutral, neither overbought nor oversold. The STOCH value of 60.65 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 (60)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | C$3.67B | 8.28 | 11.23% | 5.99% | 4.54% | 68.32% | |
60 Neutral | $2.75B | 10.29 | 0.33% | 8508.22% | 5.95% | -17.48% | |
| $3.67B | 19.41 | 3.61% | 6.55% | ― | ― | ||
78 Outperform | C$4.31B | 18.32 | 4.75% | 7.29% | 10.06% | -19.26% | |
76 Outperform | C$3.64B | 16.96 | 5.40% | 5.09% | 3.11% | ― | |
75 Outperform | C$421.83M | 17.08 | 4.57% | 7.41% | 6.36% | 13.91% | |
74 Outperform | C$1.50B | 26.10 | 2.99% | 5.66% | 22.60% | -48.92% |
* Real Estate Sector Average
Performance Comparison
TSE:CRT.UN
CT Real Estate Investment
15.39
2.65
20.80%
RIOCF
RioCan Real Estate Investment
12.35
0.28
2.32%
TSE:FCR.UN
First Capital Realty
17.14
2.62
18.04%
TSE:PLZ.UN
Plaza Retail REIT
3.82
0.48
14.37%
TSE:SRU.UN
SmartCentres Real Estate Investment Trust
25.31
4.30
20.47%
TSE:PMZ.UN
Primaris Real Estate Investment Trust
15.08
2.52
20.06%
CT Real Estate Investment Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q1-2025)
| % Change Since: 3.57%|
Next Earnings Date:Aug 12, 2025
Earnings Call Sentiment Positive
CT REIT reported strong occupancy rates, NOI growth, AFFO growth, and a robust development pipeline. The REIT also announced a distribution increase, reflecting financial strength. However, higher interest expenses due to refinancing are expected. Overall, positive performance outweighs the negative aspects.Q1-2025 Updates
Positive Updates
Strong Occupancy and NOI Growth
CT REIT maintained a stable occupancy rate of 99.4% and reported a same-store NOI growth of 1.5% and overall NOI growth of 4.6%, driven by recent acquisitions, developments, and a development fee.
Distribution Increase
CT REIT's Board approved a 2.5% increase in distributions payable in July 2025, marking the 12th increase since the IPO in 2013, with a cumulative increase of 45.9% in distributions.
Record AFFO Growth
AFFO per unit grew by 3.9% in Q1, demonstrating strong financial performance and allowing for a reduction in the AFFO payout ratio to 72.2%.
Strong Development Pipeline
CT REIT has a robust development pipeline with 20 projects, representing a committed investment of $331 million and expected to add 891,000 square feet to the portfolio.
Negative Updates
Higher Interest Expenses Anticipated
CT REIT expects to refinance certain maturing debt at higher interest rates, increasing net interest expenses in 2025.
Company Guidance
In the CT REIT's Q1 2025 earnings call, the company reported a steady occupancy rate of 99.4% and a 4.6% increase in net operating income (NOI), driven by growth in same-property NOI of 3.1% and acquisitions. Same-store NOI grew by 1.5%, while adjusted funds from operations (AFFO) per unit increased by 3.9%. The Board of Trustees approved a 2.5% increase in distributions, marking the 12th increase since the initial public offering, resulting in a cumulative distribution increase of 45.9% and a compound annual growth rate of 3.3%. The quarter also saw a development fee from Canadian Tire for zoning work, and CT REIT's development pipeline included 20 projects with a total committed investment of $331 million, poised to add 891,000 square feet to its portfolio. Financial metrics remained strong, with an interest coverage ratio of 3.55 times and an indebtedness ratio of 40.3%.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.