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

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CT Real Estate Investment

(TSX:CRT.UN)

Rating:81Outperform

Price Target:

C$18.00

▲(11.94% Upside)

CT Real Estate Investment's strong financial performance and positive earnings call are the most significant factors driving the score. The company's solid profitability, strategic investments, and financial flexibility are key strengths. The valuation is attractive with a low P/E ratio and high dividend yield. Technical analysis indicates a neutral trend, which slightly tempers the overall score.

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)

Market Cap

C$3.77B

Dividend Yield6.02%

Average Volume (3M)148.73K

Price to Earnings (P/E)8.5

Beta (1Y)0.73

Revenue Growth4.26%

EPS Growth72.02%

CountryCA

Employees71

SectorReal Estate

Sector Strength48

IndustryREIT - Retail

Share Statistics

EPS (TTM)0.36

Shares Outstanding109,575,775

10 Day Avg. Volume144,488

30 Day Avg. Volume148,734

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)0.00

Price to Sales (P/S)0.00

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

C$16.89

Price Target Upside5.04% Upside

Rating ConsensusHold

Number of Analyst Covering5

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: 3.21%|

Next Earnings Date:Nov 10, 2025

Earnings Call Sentiment Positive

The earnings call was overall positive, highlighting strong financial performance, strategic investments, and successful refinancing. However, there are challenges related to increased expenses and a slower real estate market. Nonetheless, the positives significantly outweigh the negatives.

Q2-2025 Updates

Positive Updates

Canada Square Property Development

CT REIT has secured a new 20-year lease with Canadian Tire Corporation (CTC) for approximately 550,000 square feet of refurbished space, with the project costing over $200 million. This redevelopment aims to create a AAA complex at a strategic Toronto location.

Successful Refinancing

CT REIT refinanced its Series B unsecured debentures with a new $200 million Series J issuance at a 4.29% rate, achieving its tightest ever spread of 135 basis points over the reference rate.

Strong Occupancy and NOI Growth

Occupancy increased slightly to 99.5%, with same-store NOI growth at 1.6% and overall NOI growth at 3.4%. Excluding a previous lease surrender payment, NOI growth would have been 4.4%.

New Strategic Investments

CT REIT announced two new investments in Calgary, Alberta, and Saskatoon, Saskatchewan, requiring $66 million and expected to yield 7.55% collectively.

Balance Sheet and Financial Flexibility

The indebtedness ratio dropped below 40%, providing CT REIT with significant financial flexibility for future investments.

ESG Initiatives

CT REIT released its fourth annual ESG report, highlighting improvements in data systems, community support, and diversity recognition.

Negative Updates

Increased G&A Expenses

G&A expenses as a percentage of property revenue increased to 3.4% from 2.8% due to deferred income tax provision timing.

Challenging Real Estate Market

The real estate market has slowed in terms of transaction volumes, presenting challenges in finding attractive investment opportunities.

Company Guidance

During CT REIT's Q2 2025 earnings call, the company reported several key metrics and achievements. CT REIT's occupancy rate increased slightly to 99.5%, and the growth in same-store net operating income (NOI) was 1.6% for the quarter. This, combined with intensification activities, resulted in a same-property NOI growth of 2.2%. Overall, the net operating income increased by 3.4%, and adjusted funds from operations (AFFO) per unit grew by 1.6% in Q2. The company refinanced $200 million in Series J unsecured debentures with a 5-year term at a rate of 4.29%, achieving the tightest 5-year spread in the REIT sector in recent years. CT REIT's indebtedness ratio dropped below 40%, providing significant financial flexibility for future investments. The company also highlighted its $433 million investment in a retrofit project at Canada Square, expected to be completed by 2028, and announced new acquisitions and development projects totaling $66 million, with an anticipated yield of 7.55%.

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

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

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

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.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	578.69M	552.77M	532.79M	514.54M	502.35M
Gross Profit	453.00M	437.25M	421.66M	407.25M	391.58M
EBITDA	557.48M	422.01M	435.29M	562.58M	378.71M
Net Income	434.22M	105.29M	324.61M	351.14M	75.26M
Balance Sheet
Total Assets	7.25B	6.97B	6.84B	6.50B	6.18B
Cash, Cash Equivalents and Short-Term Investments	3.06M	20.77M	2.61M	3.56M	4.53M
Total Debt	1.63B	1.53B	1.44B	1.30B	1.27B
Total Liabilities	3.15B	3.12B	3.02B	2.82B	2.80B
Stockholders Equity	1.83B	1.71B	1.70B	1.62B	1.48B
Cash Flow
Free Cash Flow	399.62M	393.31M	369.13M	371.34M	353.21M
Operating Cash Flow	436.04M	425.06M	399.27M	407.20M	370.77M
Investing Cash Flow	-217.84M	-186.53M	-219.62M	-146.77M	-162.68M
Financing Cash Flow	-235.91M	-220.37M	-180.60M	-261.41M	-213.29M

CT Real Estate Investment Technical Analysis

Technical Analysis Sentiment

Positive

Last Price16.08

Price Trends

50DMA

15.75

Positive

100DMA

15.21

Positive

200DMA

14.69

Positive

Market Momentum

MACD

0.06

Negative

RSI

63.61

Neutral

STOCH

90.75

Negative

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 16.08 is above the 20-day moving average (MA) of 15.67, above the 50-day MA of 15.75, and above the 200-day MA of 14.69, indicating a bullish trend. The MACD of 0.06 indicates Negative momentum. The RSI at 63.61 is Neutral, neither overbought nor oversold. The STOCH value of 90.75 is Negative, 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
CRT.UN	81 Outperform	C$3.77B	8.51	11.08%	6.02%	4.26%	72.02%
Sector *	63 Neutral	$6.82B	13.32	-1.02%	7.20%	3.67%	-27.43%
RIOCF	―	$3.80B	18.54	3.81%	6.26%	―	―
SRU.UN	78 Outperform	C$4.43B	20.11	4.42%	6.95%	7.01%	-15.80%
FCR.UN	73 Outperform	C$4.00B	15.32	6.58%	4.75%	2.53%	―
PLZ.UN	72 Outperform	C$460.50M	13.23	6.45%	6.67%	5.14%	209.83%
PMZ.UN	69 Neutral	C$1.60B	25.55	3.26%	5.70%	23.01%	-50.29%

* Real Estate Sector Average

Performance Comparison

TSE:CRT.UN

CT Real Estate Investment

16.08

2.38

17.37%

RIOCF

RioCan Real Estate Investment

12.94

0.82

6.77%

TSE:FCR.UN

First Capital Realty

19.09

3.37

21.44%

TSE:PLZ.UN

Plaza Retail REIT

4.20

0.82

24.26%

TSE:SRU.UN

SmartCentres Real Estate Investment Trust

26.62

4.13

18.36%

TSE:PMZ.UN

Primaris Real Estate Investment Trust

14.99

1.86

14.17%

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 07, 2025