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

• Market Cap: C$3.86B
• Dividend Yield: 5.95%
• Average Volume (3M): 178.34K
• Price to Earnings (P/E): 8.7
• Beta (1Y): 0.75
• Revenue Growth: 4.26%
• EPS Growth: 72.02%
• Country: CA
• Employees: 71
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): 0.36
• Shares Outstanding: 109,575,775
• 10 Day Avg. Volume: 281,000
• 30 Day Avg. Volume: 178,345
• PEG Ratio: 0.03
• Price to Book (P/B): 1.84
• Price to Sales (P/S): 5.82
• P/FCF Ratio: 8.42
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$16.61
• Price Target Upside: 2.78% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 81 Outperform
• Price Target: C$18.50 ▲(14.48% 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

Stable Revenue Stream

The long-term, triple-net lease agreements with Canadian Tire ensure a stable and predictable cash flow, reducing operational risks and providing a reliable income stream.

Strong Cash Generation

The significant growth in free cash flow highlights the company's strong cash generation capabilities, supporting its operations and growth initiatives effectively.

High Occupancy Rates

Maintaining high occupancy rates at 99.5% indicates strong demand for the company's properties, ensuring consistent rental income and financial stability.

Negative Factors

Decreased Return on Equity

The decline in return on equity suggests reduced profitability relative to equity, which may impact investor returns and indicate efficiency challenges.

Increased G&A Expenses

Rising general and administrative expenses can pressure profit margins, potentially reducing net income and affecting overall financial performance.

Delayed Development Projects

Delays in development projects can postpone revenue realization and increase costs, impacting long-term growth and financial projections.

CT Real Estate Investment Business Overview & Revenue Model

Company Description

CT Real Estate Investment Trust (CRT.UN) is a Canadian real estate investment trust primarily engaged in owning, managing, and developing high-quality retail properties across Canada. The company's portfolio mainly consists of properties leased to Canadian Tire Corporation, Limited, its primary tenant, ensuring a stable and reliable income stream. CRT.UN focuses on maintaining and expanding its portfolio of retail-focused real estate assets to provide sustainable returns to its investors.

How the Company Makes Money

CT 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 Financial Statement Overview

Summary

CT Real Estate Investment exhibits strong financial health with impressive revenue growth and profitability margins. The balance sheet is stable, though there is a slight decline in return on equity. Cash flow generation is robust, supporting the company's operations and growth initiatives. While the company is well-positioned in the REIT - Retail industry, attention should be paid to maintaining net profit margins and improving return on equity.

Income Statement

CT Real Estate Investment has demonstrated strong revenue growth with a TTM increase of 91.4%, indicating robust expansion. The company maintains high profitability with a gross profit margin of 78.2% and a net profit margin of 44.2% in the TTM, reflecting efficient cost management. EBIT and EBITDA margins are also impressive at 86.9% and 82.9%, respectively. However, the net profit margin has decreased from the previous year, suggesting some pressure on net earnings.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.87, indicating a balanced approach to leveraging. The return on equity has decreased to 14.3% in the TTM from 23.8% in the previous year, which may suggest a decline in profitability relative to equity. The equity ratio stands at 25.3%, showing a solid equity base relative to total assets. Overall, the balance sheet reflects stability but with a slight decline in return efficiency.

Cash Flow

The cash flow statement highlights a significant free cash flow growth rate of 88.3% in the TTM, showcasing strong cash generation capabilities. The operating cash flow to net income ratio is 0.71, indicating good cash conversion from earnings. The free cash flow to net income ratio is high at 92.3%, suggesting effective cash management. Despite these strengths, the operating cash flow coverage ratio has slightly decreased, which could indicate potential future cash flow constraints.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	590.21M	578.69M	552.77M	532.79M	514.54M	502.35M
Gross Profit	461.10M	453.00M	437.25M	421.66M	407.25M	391.58M
EBITDA	491.35M	436.88M	422.01M	435.29M	562.58M	378.71M
Net Income	314.31M	434.22M	105.29M	324.61M	351.14M	75.26M
Balance Sheet
Total Assets	7.43B	7.25B	6.97B	6.84B	6.50B	6.18B
Cash, Cash Equivalents and Short-Term Investments	8.37M	3.06M	20.77M	2.61M	3.56M	4.53M
Total Debt	1.63B	1.63B	1.53B	1.44B	1.30B	1.27B
Total Liabilities	3.22B	3.15B	3.12B	3.02B	2.82B	2.80B
Stockholders Equity	1.88B	1.83B	1.71B	1.70B	1.62B	1.48B
Cash Flow
Free Cash Flow	408.03M	399.62M	393.31M	369.13M	371.34M	353.21M
Operating Cash Flow	441.96M	436.04M	425.06M	399.27M	407.20M	370.77M
Investing Cash Flow	-206.32M	-217.84M	-186.53M	-219.62M	-146.77M	-162.68M
Financing Cash Flow	-251.13M	-235.91M	-220.37M	-180.60M	-261.41M	-213.29M

CT Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.16
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 16.16 is below the 20-day moving average (MA) of 16.28, above the 50-day MA of 15.97, and above the 200-day MA of 14.88, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 49.26 is Neutral, neither overbought nor oversold. The STOCH value of 15.14 is Positive, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRT.UN	81 Outperform	C$3.86B	8.71	11.08%	5.95%	4.26%	72.02%
PLZ.UN	77 Outperform	C$462.72M	13.30	4.63%	6.68%	5.14%	209.83%
REI.UN	75 Outperform	C$5.55B	19.84	3.87%	6.06%	17.42%	377.43%
PMZ.UN	75 Outperform	C$1.63B	26.20	3.12%	5.62%	23.01%	-50.29%
FCR.UN	73 Outperform	C$4.15B	15.90	6.53%	4.66%	2.53%	―
SRU.UN	72 Outperform	C$4.52B	20.54	4.43%	6.98%	7.01%	-15.80%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%