European Residential Real Estate ate Investment Trust (ERE.UN) AI Stock Analysis

• Market Cap: C$569.38M
• Dividend Yield: 123.06%
• Average Volume (3M): 115.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.55
• Revenue Growth: -20.65%
• EPS Growth: -629.60%
• Country: CA
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Residential
• EPS (TTM): -0.05
• Shares Outstanding: 92,358,370
• 10 Day Avg. Volume: 108,935
• 30 Day Avg. Volume: 115,729
• PEG Ratio: 0.21
• Price to Book (P/B): 2.29
• Price to Sales (P/S): 6.42
• P/FCF Ratio: 13.54
• 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$2.57
• Price Target Upside: 4.90% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 3

• Rating: 45 Neutral
• Price Target: C$2.50 ▲(2.04% Upside)

The overall stock score is primarily impacted by weak financial performance, characterized by declining revenue, high leverage, and poor cash flow management. Technical analysis shows neutral indicators, and valuation reflects high risk despite a high dividend yield. The absence of earnings call and corporate events data limits further insights.

European Residential Real Estate ate Investment Trust Business Overview & Revenue Model

Company Description

ERES is an unincorporated, open-ended real estate investment trust. ERES's REIT units are listed on the TSX under the symbol ERE.UN. ERES is Canada's only European-focused multi-residential REIT, with a current initial focus on investing in high-quality multi-residential real estate properties in the Netherlands. ERES owns a portfolio of 137 multi-residential properties, comprised of 5,865 suites and ancillary retail space located in the Netherlands, and owns one office property in Germany and one office property in Belgium. ERES's registered and principal business office is located at 11 Church Street, Suite 401, Toronto, Ontario M5E 1W1.

How the Company Makes Money

European Residential Real Estate Investment Trust generates revenue primarily through rental income from its residential property portfolio. The company focuses on acquiring properties in desirable urban locations across Europe, where demand for housing is high, thus securing stable and recurring rental income. ERE.UN also benefits from property appreciation, which can contribute to increased asset values and potential capital gains upon property sales. Additionally, the company may engage in strategic partnerships and joint ventures to optimize its property management operations and expand its portfolio, further enhancing its revenue streams.

European Residential Real Estate ate Investment Trust Financial Statement Overview

Summary

The company's financial performance is weak, with declining revenue and profitability, high leverage, and poor cash flow management. The income statement shows substantial losses, the balance sheet indicates high debt levels, and cash flow generation is under pressure.

Income Statement

The income statement shows a concerning trend with declining revenue and profitability. The TTM data reveals a significant revenue drop of 15.64% and a negative net profit margin of -154.66%, indicating substantial losses. The gross profit margin remains relatively stable at 75.73%, but the EBIT and EBITDA margins are misleadingly high due to negative net income. Overall, the income statement reflects financial instability and declining performance.

Balance Sheet

The balance sheet indicates high leverage with a debt-to-equity ratio of 1.19 in the TTM period, reflecting significant reliance on debt financing. The return on equity is negative at -36.70%, highlighting poor profitability relative to shareholder equity. The equity ratio is not provided, but the overall financial health appears weak due to high debt levels and negative returns.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth by 14.15% in the TTM period, indicating reduced cash generation. The operating cash flow to net income ratio is low at 0.17, suggesting challenges in converting income into cash. However, the free cash flow to net income ratio is relatively better at 0.80, indicating some ability to generate cash despite losses. Overall, cash flow management needs improvement.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	67.79M	92.97M	95.68M	89.25M	76.87M	69.88M
Gross Profit	51.30M	72.87M	75.13M	68.98M	59.52M	53.27M
EBITDA	91.99M	141.51M	-128.84M	142.19M	49.93M	43.51M
Net Income	-149.60M	-64.29M	-114.23M	116.42M	96.14M	118.66M
Balance Sheet
Total Assets	729.73M	865.37M	1.72B	1.94B	1.89B	1.50B
Cash, Cash Equivalents and Short-Term Investments	10.53M	7.77M	6.89M	10.89M	10.35M	10.72M
Total Debt	261.34M	343.89M	992.49M	964.87M	885.33M	710.24M
Total Liabilities	515.33M	604.35M	1.30B	1.39B	1.45B	1.15B
Stockholders Equity	214.40M	261.02M	427.25M	550.15M	441.76M	353.72M
Cash Flow
Free Cash Flow	29.81M	44.09M	35.23M	34.82M	34.70M	30.32M
Operating Cash Flow	36.85M	54.88M	55.21M	58.81M	54.12M	41.26M
Investing Cash Flow	937.82M	881.24M	-14.79M	-113.01M	-191.22M	-78.39M
Financing Cash Flow	-972.58M	-935.24M	-44.42M	54.74M	136.72M	36.54M

European Residential Real Estate ate Investment Trust Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ERE.UN, the sentiment is Negative. The current price of 2.45 is above the 20-day moving average (MA) of 2.45, below the 50-day MA of 2.48, and above the 200-day MA of 2.43, indicating a neutral trend. The MACD of <0.01 indicates Negative momentum. The RSI at 48.55 is Neutral, neither overbought nor oversold. The STOCH value of 50.88 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:ERE.UN.

European Residential Real Estate ate Investment Trust Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KMP.UN	78 Outperform	2.18B	3.87	17.52%	3.99%	5.82%	83.08%
MRG.UN	68 Neutral	962.47M	10.29	5.09%	4.11%	3.93%	-29.40%
MI.UN	68 Neutral	505.90M	7.31	5.67%	3.75%	-0.69%	0.00%
IIP.UN	58 Neutral	1.87B	-10.80	-8.02%	2.94%	1.56%	-9446.15%
HOM.UN	52 Neutral	715.27M	-10.44	-10.72%	4.28%	-1.10%	61.83%
ERE.UN	45 Neutral	C$569.38M	―	-43.99%	123.06%	-20.65%	-629.60%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

European Residential Real Estate ate Investment Trust Corporate Events

ERES Completes Strategic Dispositions and Declares Special Distribution

ERES has completed the sale of residential suites in the Netherlands and commercial properties in Belgium and Germany, resulting in proceeds of approximately €367 million. Following these dispositions, ERES declared a special distribution of €0.90 per unit to its unitholders, payable in Canadian dollars or Euros, with implications for Canadian income tax purposes. The Toronto Stock Exchange will implement due bill trading procedures for this distribution, affecting trading dates and conditions.

The most recent analyst rating on ($TSE:ERE.UN) stock is a Hold with a C$2.50 price target. To see the full list of analyst forecasts on European Residential Real Estate ate Investment Trust stock, see the TSE:ERE.UN Stock Forecast page.

ERES Announces Final Monthly Distribution Amid Strategic Shift

European Residential Real Estate Investment Trust (ERES) has declared its final regular monthly distribution for August 2025, marking a significant shift in its financial strategy. This decision follows the board’s announcement to cease regular distributions pending certain asset dispositions, potentially impacting stakeholders and signaling a strategic pivot in ERES’s operations.

The most recent analyst rating on ($TSE:ERE.UN) stock is a Buy with a C$3.00 price target. To see the full list of analyst forecasts on European Residential Real Estate ate Investment Trust stock, see the TSE:ERE.UN Stock Forecast page.

European Residential REIT Reports Q2 2025 Results Amid Strategic Property Sales

European Residential REIT has reported its second quarter 2025 results, highlighting significant strategic initiatives including the sale of multiple residential and commercial properties in the Netherlands, Belgium, and Germany. These transactions are part of a broader strategy to optimize their portfolio and potentially distribute proceeds to Unitholders. Despite a decrease in occupancy rates and net operating income due to intentional vacancies for value maximization, the REIT has achieved rental growth. However, financial performance has been impacted by a decrease in funds from operations due to property dispositions, although this was partially offset by reduced interest costs.

The most recent analyst rating on ($TSE:ERE.UN) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on European Residential Real Estate ate Investment Trust stock, see the TSE:ERE.UN Stock Forecast page.

European Residential REIT Announces Strategic Property Dispositions and Financial Results for Q2 2025

ERES reported its second quarter 2025 results, highlighting significant strategic initiatives, including the sale of multiple properties in the Netherlands and Belgium, with further sales agreements in place for properties in Germany. These transactions are part of a broader strategy to maximize value through asset disposition, leading to a potential special distribution to unitholders. The REIT’s operational metrics showed a decrease in occupancy rates and net operating income margins due to intentional vacancies and higher repair costs, while financial performance saw a notable decline in funds from operations due to reduced portfolio size.

The most recent analyst rating on ($TSE:ERE.UN) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on European Residential Real Estate ate Investment Trust stock, see the TSE:ERE.UN Stock Forecast page.

ERES Announces Strategic Dispositions and Distribution Update

ERES announced updates on its strategic dispositions, including the sale of residential suites in the Netherlands and commercial properties in Belgium and Germany, totaling approximately €52.8 million. The company plans to cease its regular monthly distributions and intends to declare a special distribution, contingent on the completion of these sales. These moves are part of ERES’s strategy to optimize its portfolio and maximize returns for stakeholders, although there are no assurances on the completion of these transactions.

The most recent analyst rating on ($TSE:ERE.UN) stock is a Hold with a C$3.90 price target. To see the full list of analyst forecasts on European Residential Real Estate ate Investment Trust stock, see the TSE:ERE.UN Stock Forecast page.

ERES Announces July 2025 Monthly Distribution

ERES has declared a July 2025 monthly cash distribution of €0.005 per Unit and Class B LP Unit, equivalent to €0.06 per Unit annualized, payable on August 15, 2025. This distribution, denominated in Euros, will be converted to Canadian dollars for payment, with registered Unitholders having the option to receive it in Euros. ERES continues its commitment to regular monthly distributions, reflecting its stable financial positioning and ongoing strategy to provide consistent returns to its stakeholders.

The most recent analyst rating on ($TSE:ERE.UN) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on European Residential Real Estate ate Investment Trust stock, see the TSE:ERE.UN Stock Forecast page.

ERES Announces June 2025 Cash Distribution

European Residential Real Estate Investment Trust (ERES) has announced a June 2025 monthly cash distribution of €0.005 per Unit and Class B LP Unit, equivalent to €0.06 annualized. This distribution, payable on July 15, 2025, will be in Canadian dollars, with an option for registered Unitholders to elect payment in Euros. This announcement underscores ERES’s commitment to regular monthly distributions, reflecting its stable financial operations and strategic focus on European real estate.

The most recent analyst rating on ($TSE:ERE.UN) stock is a Buy with a C$3.50 price target. To see the full list of analyst forecasts on European Residential Real Estate ate Investment Trust stock, see the TSE:ERE.UN Stock Forecast page.