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

• Market Cap: C$571.70M
• Dividend Yield: 65.32%
• Average Volume (3M): 127.73K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.53
• Revenue Growth: -20.65%
• EPS Growth: -629.60%
• Country: CA
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 57
• Industry: REIT - Residential
• EPS (TTM): -0.05
• Shares Outstanding: 92,358,370
• 10 Day Avg. Volume: 152,179
• 30 Day Avg. Volume: 127,730
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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$2.48
• Price Target Upside: 0.81% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: C$2.50 ▲(1.63% Upside)

The overall stock score reflects significant financial challenges, including declining revenues and high debt levels, which are partially offset by positive cash flow from operations. Technical indicators suggest weak momentum, and the negative P/E ratio is a concern. However, the high dividend yield and strategic asset dispositions provide some positive outlook.

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

Company Description

European Residential Real Estate Investment Trust (ERE.UN) is a growth-oriented real estate investment trust focused on acquiring and managing a diversified portfolio of high-quality, multi-residential properties across Europe. With a strong emphasis on urban centers, ERE.UN aims to deliver long-term value to its investors by leveraging its expertise in property management and residential real estate markets.

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 challenged by declining revenues and net losses impacting profitability. High debt levels pose financial risk, although cash flow from operations remains positive, providing some liquidity support.

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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	92.97M	95.68M	89.25M	76.87M	69.88M
Gross Profit	72.87M	75.13M	68.98M	59.52M	53.27M
EBITDA	141.51M	-128.84M	142.19M	49.93M	43.51M
Net Income	-64.29M	-114.23M	116.42M	96.14M	118.66M
Balance Sheet
Total Assets	865.37M	1.72B	1.94B	1.89B	1.50B
Cash, Cash Equivalents and Short-Term Investments	7.77M	6.89M	10.89M	10.35M	10.72M
Total Debt	343.89M	992.49M	964.87M	885.33M	710.24M
Total Liabilities	604.35M	1.30B	1.39B	1.45B	1.15B
Stockholders Equity	261.02M	427.25M	550.15M	441.76M	353.72M
Cash Flow
Free Cash Flow	44.09M	35.23M	34.82M	34.70M	30.32M
Operating Cash Flow	54.88M	55.21M	58.81M	54.12M	41.26M
Investing Cash Flow	881.24M	-14.79M	-113.01M	-191.22M	-78.39M
Financing Cash Flow	-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: 2.46
• 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 Negative. The current price of 2.46 is below the 20-day moving average (MA) of 2.54, below the 50-day MA of 2.52, and above the 200-day MA of 2.38, indicating a neutral trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 39.32 is Neutral, neither overbought nor oversold. The STOCH value of 12.75 is Positive, 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	70 Outperform	C$2.15B	3.84	19.03%	4.07%	5.82%	83.08%
MRG.UN	68 Neutral	C$931.79M	9.94	4.86%	4.20%	3.93%	-29.40%
MI.UN	68 Neutral	C$507.92M	5.72	9.03%	3.83%	-0.29%	―
IIP.UN	67 Neutral	C$1.85B	―	-7.49%	2.97%	1.56%	-9446.15%
Sector *	63 Neutral	$6.82B	13.05	-0.66%	7.37%	3.70%	-24.53%
ERE.UN	58 Neutral	C$571.70M	―	-43.99%	65.32%	-20.65%	-629.60%
HOM.UN	57 Neutral	C$661.81M	―	-10.24%	4.62%	-1.10%	61.83%

European Residential Real Estate ate Investment Trust Corporate Events

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.

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.