European Residential Real Estate ate Investment Trust (TSE:ERE.UN)
TSX:ERE.UN
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European Residential Real Estate ate Investment Trust
(TSX:ERE.UN)
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Rating:51Neutral
Price Target:
C$1.00
▼(-14.53% Downside)
Action:ReiteratedDate:02/18/26
Overall score reflects pressured operating performance (sharp revenue decline, persistent net losses, and a steep 2025 cash-flow drop) partially offset by meaningful balance-sheet de-risking and execution on asset dispositions highlighted on the earnings call. Technicals are mixed/soft and valuation metrics are skewed by losses and an unusually high reported yield, adding uncertainty.
Positive Factors
Balance-sheet deleveraging
Material deleveraging over recent years meaningfully reduces refinancing and liquidity risk. A lower debt-to-equity ratio increases covenant headroom and financial flexibility, making the REIT better able to withstand operating volatility and fund liabilities or opportunistic investments over the next several quarters.
Negative Factors
Sharp revenue decline
A near-30% drop in revenue represents a material erosion of the top line that can persistently pressure margins and distributable cash. If driven by asset sales and lost rents, recovery depends on redeploying proceeds into yield-accretive assets or stabilizing occupancy, which can take multiple quarters to execute.
Read all positive and negative factors
Positive Factors
Negative Factors
Balance-sheet deleveraging
Material deleveraging over recent years meaningfully reduces refinancing and liquidity risk. A lower debt-to-equity ratio increases covenant headroom and financial flexibility, making the REIT better able to withstand operating volatility and fund liabilities or opportunistic investments over the next several quarters.
Read all positive factors
European Residential Real Estate ate Investment Trust (ERE.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$273.48M
Dividend Yield269.2%
Average Volume (3M)387.98K
Price to Earnings (P/E)―
Beta (1Y)0.33
Revenue Growth-33.76%
EPS Growth-125.67%
CountryCA
EmployeesN/A
SectorReal Estate
Sector Strength53
IndustryREIT - Residential
Share Statistics
EPS (TTM)-0.07
Shares Outstanding93,106,230
10 Day Avg. Volume228,725
30 Day Avg. Volume387,982
Financial Highlights & Ratios
PEG Ratio-0.33
Price to Book (P/B)1.63
Price to Sales (P/S)4.44
P/FCF Ratio14.77
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$1.17Price Target Upside0.00%
Rating ConsensusHold
Number of Analyst Covering4
EPS Forecast (FY)0.02
Revenue Forecast (FY)C$17.18M
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-q...
How the Company Makes Money
ERE.UN generates its revenue primarily through the leasing of residential properties to tenants, which provides a steady stream of rental income. The company typically leases its units on long-term contracts, ensuring consistent cash flow. Additio...
European Residential Real Estate ate Investment Trust Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:May 06, 2026
Earnings Call Sentiment Neutral
ERES demonstrated strong execution on its disposition strategy, successfully generating significant proceeds and reducing debt. However, this strategy also resulted in decreased occupancy and NOI margin, along with uncertainty around the completion timeline for remaining transactions. Despite these challenges, financial flexibility and commitment to returning capital to unitholders were emphasized.Positive Updates
Successful Disposition Program
ERES completed key transactions including the sale of commercial properties in Belgium and Germany, and the disposition of a portfolio containing 1,446 residential suites in the Netherlands, generating EUR 397 million in gross consideration.
Negative Updates
Decreased Residential Occupancy
Residential occupancy was down to 90.8% as of September 30, 2025, due to elevated vacancies associated with the disposition strategy.
Read all updates
Q3-2025 Updates
Positive
Negative
Successful Disposition Program
ERES completed key transactions including the sale of commercial properties in Belgium and Germany, and the disposition of a portfolio containing 1,446 residential suites in the Netherlands, generating EUR 397 million in gross consideration.
Read all positive updates
Company Guidance
During the European Residential REIT Third Quarter 2025 Results Conference Call, key guidance was provided regarding the company's financial and operational performance. The REIT completed several significant property sales, generating EUR 397 million in gross consideration, contributing to a 2025 disposition total of EUR 489 million. Part of these proceeds was used to repay EUR 238 million in debt, reducing the adjusted debt to market value ratio to 34% from 53% in the prior period. A special cash distribution of EUR 0.90 per unit was declared and paid. Despite a robust rent growth with same-property occupied AMR increasing by 4.7% to EUR 1,349, residential occupancy declined to 90.8% due to vacancies from the disposition strategy. The NOI margin fell to 67.8% from 76.2%, and diluted FFO per unit was EUR 0.13, down from EUR 0.04 previously, influenced by property sales. The REIT reported financial flexibility with no mortgages maturing in 2025 and 2026, signaling continued strategic dispositions and a focus on maximizing unitholder value.European Residential Real Estate ate Investment Trust Financial Statement Overview
Summary
Income Statement
28
Negative
Balance Sheet
52
Neutral
Cash Flow
40
Negative
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 38.42M | 92.97M | 95.68M | 89.25M | 76.87M |
| Gross Profit | 27.17M | 72.87M | 75.13M | 68.98M | 59.52M |
| EBITDA | 80.93M | 141.51M | -128.84M | 142.19M | 49.93M |
| Net Income | -68.95M | -64.29M | -114.23M | 116.42M | 96.14M |
Balance Sheet | |||||
| Total Assets | 329.10M | 865.37M | 1.72B | 1.94B | 1.89B |
| Cash, Cash Equivalents and Short-Term Investments | 16.71M | 7.77M | 6.89M | 10.89M | 10.35M |
| Total Debt | 100.28M | 343.89M | 992.49M | 964.87M | 885.33M |
| Total Liabilities | 224.87M | 604.35M | 1.30B | 1.39B | 1.45B |
| Stockholders Equity | 104.22M | 261.02M | 427.25M | 550.15M | 441.76M |
Cash Flow | |||||
| Free Cash Flow | 11.54M | 44.09M | 35.23M | 34.82M | 34.70M |
| Operating Cash Flow | 15.24M | 54.88M | 55.21M | 58.81M | 54.12M |
| Investing Cash Flow | 468.72M | 881.24M | -14.79M | -113.01M | -191.22M |
| Financing Cash Flow | -475.02M | -935.24M | -44.42M | 54.74M | 136.72M |
European Residential Real Estate ate Investment Trust Technical Analysis
Positive
1.17
Price Trends
1.16
Positive
1.15
Positive
1.08
Positive
Market Momentum
<0.01
Negative
55.82
Neutral
50.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:ERE.UN, the sentiment is Positive. The current price of 1.17 is above the 20-day moving average (MA) of 1.17, above the 50-day MA of 1.16, and above the 200-day MA of 1.08, indicating a bullish trend. The MACD of <0.01 indicates Negative momentum. The RSI at 55.82 is Neutral, neither overbought nor oversold. The STOCH value of 50.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:ERE.UN.
European Residential Real Estate ate Investment Trust Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
70 Outperform | C$904.53M | 8.80 | 5.16% | 4.41% | 3.83% | 63.32% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
61 Neutral | C$2.01B | 69.28 | 0.93% | 4.42% | 6.19% | 79.98% | |
60 Neutral | C$1.87B | 27.54 | 0.81% | 3.01% | 1.55% | -401.05% | |
57 Neutral | C$648.77M | -3.53 | 7.26% | 3.87% | -1.21% | ― | |
51 Neutral | C$273.48M | -2.47 | -40.17% | 269.20% | -33.76% | -125.67% | |
49 Neutral | C$620.32M | -6.29 | -3.64% | 4.57% | -6.91% | 82.31% |
* Real Estate Sector Average
TSE:ERE.UN
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1.17
0.22
23.42%
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European Residential Real Estate ate Investment Trust Corporate Events
Business Operations and StrategyDividendsFinancial DisclosuresM&A TransactionsRegulatory Filings and Compliance
European Residential REIT Advances Portfolio Sell-Off as Earnings Decline
Negative
Feb 12, 2026
European Residential REIT has accelerated its strategic wind-down, selling 1,980 Dutch residential suites and its Belgian and German commercial properties in 2025 for €489.7 million, and agreeing to sell a further 410 suites for about €...
Business Operations and StrategyM&A Transactions
ERES Sells 88-Suite Dutch Property for €20.6 Million as It Advances Portfolio Sell-Down Strategy
Positive
Dec 24, 2025
European Residential Real Estate Investment Trust has agreed to sell an unencumbered 88-suite residential property in Schiedam, the Netherlands, for approximately €20.6 million, with closing targeted for March 2026 and proceeds earmarked for...
Business Operations and StrategyM&A Transactions
ERES to Sell Three Dutch Properties for €68 Million
Positive
Nov 28, 2025
ERES announced agreements to sell three properties in the Netherlands for approximately €67.8 million, with the sales expected to complete between January and April 2026. The proceeds from these sales will be used for general trust purposes ...
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.