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

• Market Cap: C$576.39M
• Dividend Yield: 5.32%
• Average Volume (3M): 86.37K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.57
• Revenue Growth: -7.34%
• EPS Growth: -966.70%
• Country: CA
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Residential
• EPS (TTM): -0.24
• Shares Outstanding: 92,373,276
• 10 Day Avg. Volume: 86,609
• 30 Day Avg. Volume: 86,369
• PEG Ratio: 0.22
• Price to Book (P/B): 0.88
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.91
• 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$2.75
• Price Target Upside: 10.89% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 60 Neutral
• Price Target: C$2.50 ▲(0.81%Upside)

The overall stock score of 60 reflects significant financial challenges due to declining profitability and high leverage. However, the company's strategic initiatives and positive corporate events provide a supportive backdrop. Weak technical indicators and valuation concerns are notable risks.

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 (ERE.UN) makes money primarily through rental income generated from its portfolio of residential properties. The company leases these properties to tenants, collecting regular rental payments, which form the core of its revenue stream. ERE.UN also engages in strategic property acquisitions and developments to enhance its portfolio value and increase rental income potential. Additionally, the company may realize capital gains by selling properties at a profit when market conditions are favorable. ERE.UN's earnings are further supported by its focus on maintaining high occupancy rates and optimizing operational efficiencies, which help maximize net operating income. Partnerships with local property management firms and strategic alliances with developers across Europe also contribute to the trust's ability to effectively manage and grow its portfolio.

European Residential Real Estate ate Investment Trust Financial Statement Overview

Summary

The company's financial performance is under pressure due to declining revenues, net losses, and high leverage. While cash flows from operations remain positive, significant debt levels pose a financial risk. Improvement in revenue growth and debt reduction is necessary to stabilize the financial condition.

Income Statement

The company's income statement shows declining revenue and profitability. The TTM (Trailing-Twelve-Months) revenue dropped compared to the previous annual period. Additionally, the net profit margin is negative due to significant net losses, and there is a notable decrease in EBIT and EBITDA margins. However, the gross profit margin remains relatively stable, indicating consistent cost management.

Balance Sheet

The balance sheet reflects high leverage with a debt-to-equity ratio indicating significant reliance on debt financing. The equity ratio has decreased over time, signaling reduced financial stability. Negative return on equity suggests inefficiency in generating profits from shareholders’ equity. There is a concerning downward trend in stockholders' equity.

Cash Flow

The cash flow statement reveals relatively stable operating cash flows, although there is a drop in free cash flow growth. The company maintains positive operating cash flow to net income ratio, suggesting better cash generation than accounting earnings indicate. However, free cash flow to net income ratio is strained due to negative net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	80.35M	92.97M	95.68M	89.25M	76.87M	69.88M
Gross Profit	60.85M	72.87M	75.13M	68.98M	59.52M	53.27M
EBITDA	81.78M	141.51M	-128.84M	142.19M	49.93M	43.51M
Net Income	-124.28M	-64.29M	-114.23M	116.42M	96.14M	118.66M
Balance Sheet
Total Assets	755.40M	865.37M	1.72B	1.94B	1.89B	1.50B
Cash, Cash Equivalents and Short-Term Investments	7.80M	7.77M	6.89M	10.89M	10.35M	10.72M
Total Debt	265.61M	343.89M	992.49M	964.87M	885.33M	710.24M
Total Liabilities	532.86M	604.35M	1.30B	1.39B	1.45B	1.15B
Stockholders Equity	222.53M	261.02M	427.25M	550.15M	441.76M	353.72M
Cash Flow
Free Cash Flow	34.73M	44.09M	35.23M	34.82M	34.70M	30.32M
Operating Cash Flow	43.66M	54.88M	55.21M	58.81M	54.12M	41.26M
Investing Cash Flow	957.76M	881.24M	-14.79M	-113.01M	-191.22M	-78.39M
Financing Cash Flow	-1.00B	-935.24M	-44.42M	54.74M	136.72M	36.54M

European Residential Real Estate ate Investment Trust Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.48
• 50DMA: Negative
• 100DMA: Negative
• 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:ERE.UN, the sentiment is Neutral. The current price of 2.48 is below the 20-day moving average (MA) of 2.51, below the 50-day MA of 2.50, and above the 200-day MA of 2.29, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 46.84 is Neutral, neither overbought nor oversold. The STOCH value of 17.86 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	79 Outperform	C$2.36B	3.68	22.26%	3.69%	5.77%	108.23%
MRG.UN	75 Outperform	C$960.69M	8.65	5.83%	4.14%	3.85%	-31.81%
IIP.UN	72 Outperform	C$1.91B	―	-7.00%	2.93%	2.52%	-573.45%
MI.UN	71 Outperform	C$518.50M	5.82	9.03%	3.72%	-0.29%	―
HOM.UN	66 Neutral	C$968.90M	―	-11.97%	4.29%	4.39%	56.33%
ERE.UN	60 Neutral	C$576.39M	―	-37.33%	5.32%	-7.34%	-966.70%
Sector *	53 Neutral	$1.19B	3.25	-0.13%	7.83%	-1.86%	-126.37%

European Residential Real Estate ate Investment Trust Corporate Events

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.

ERES Secures Strong Support at 2025 Annual Meeting

At the 2025 Annual Meeting, European Residential Real Estate Investment Trust (ERES) announced that all items of business were approved by a significant majority of votes. The election of trustees and the re-appointment of auditors were confirmed, with nominees receiving over 96% of votes in favor. This strong support reflects confidence in ERES’s strategic direction and management, reinforcing its position in the European real estate market.

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 May 2025 Monthly Distribution

European Residential Real Estate Investment Trust (ERES) has announced a May 2025 monthly cash distribution of €0.005 per Unit and Class B LP Unit, equivalent to €0.06 annualized. This distribution will be paid in Canadian dollars unless registered unitholders opt for Euros, with payment scheduled for June 16, 2025. ERES continues to prioritize regular monthly distributions, subject to the Board’s discretion, reinforcing its commitment to providing 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 Q1 2025 Results Amid Strategic Asset Sales

ERES reported its first quarter 2025 results, highlighting significant strategic initiatives, including the disposal of ten residential properties in the Netherlands for €90 million and an agreement to sell additional entities owning 1,446 residential suites for approximately €337.3 million. The proceeds from these transactions are intended to repay debt and distribute a special cash dividend. Despite strong rental growth and increased average monthly rents, the REIT faced a decline in occupancy rates and net operating income margins due to higher vacancies and increased costs. Financial performance showed a decrease in Funds From Operations due to property dispositions, though liquidity remains strong with debt coverage metrics within covenant thresholds.

European Residential REIT Announces Strategic Property Dispositions and Q1 2025 Financial Results

European Residential REIT reported its first-quarter results for 2025, highlighting strategic initiatives and financial performance. The REIT disposed of ten residential properties in the Netherlands for €90 million and entered into an agreement to sell additional entities owning 1,446 residential suites for approximately €337.3 million. These transactions are part of a broader strategy to maximize the value of its portfolio. Despite strong rental growth, the REIT experienced a decrease in occupancy rates and net operating income margin due to intentional vacancies and increased costs. Financially, the REIT saw a significant drop in Funds From Operations due to property dispositions, although liquidity remains robust.

ERES Announces April 2025 Monthly Distribution

European Residential Real Estate Investment Trust (ERES) has declared its April 2025 monthly cash distribution of €0.005 per Unit and Class B LP Unit, equivalent to €0.06 annualized. The distribution will be paid in Canadian dollars, with an option for registered Unitholders to receive it in Euros. ERES plans to continue regular monthly distributions, subject to the discretion of its Board of Trustees.

ERES Announces €362 Million in Strategic Dispositions

European Residential Real Estate Investment Trust (ERES) has announced strategic dispositions amounting to €362 million, involving the sale of residential suites in the Netherlands. The proceeds from these sales will be used to repay mortgage debt and provide a special distribution to unitholders, potentially impacting the company’s financial structure and market positioning. The pending sale, expected to close by mid-September 2025, highlights ERES’s strategic focus on optimizing its portfolio and enhancing shareholder value.