Firm Capital Property (FCD.UN) AI Stock Analysis

• Market Cap: C$221.56M
• Dividend Yield: 8.69%
• Average Volume (3M): 22.02K
• Price to Earnings (P/E): 7.8
• Beta (1Y): 0.22
• Revenue Growth: 5.06%
• EPS Growth: 43.11%
• Country: CA
• Employees: 1
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): N/A
• Shares Outstanding: 36,926,000
• 10 Day Avg. Volume: 21,112
• 30 Day Avg. Volume: 22,025
• PEG Ratio: -0.48
• Price to Book (P/B): 0.72
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 8.73
• 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$6.50
• Price Target Upside: 8.70% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 80 Outperform
• Price Target: C$7.00 ▲(17.06%Upside)

Firm Capital Property's strong financial performance, attractive valuation metrics, and positive corporate events underpin its high overall score. The company's strategic moves and robust profitability are significant strengths, though careful monitoring of leverage and external economic factors is advised.

Firm Capital Property Business Overview & Revenue Model

Company Description

Firm Capital Property Trust is focused on creating long-term value for Unitholders, through capital preservation and disciplined investing to achieve stable distributable income. In partnership with management and industry leaders, The Trust's plan is to own as well as to co-own a diversified property portfolio of multi-residential, flex industrial, net lease convenience retail, and core service provider professional space. In addition to stand alone accretive acquisitions, the Trust will make joint acquisitions with strong financial partners and acquisitions of partial interests from existing ownership groups, in a manner that provides liquidity to those selling owners and professional management for those remaining as partners. Firm Capital Realty Partners Inc., through a structure focused on an alignment of interests with the Trust sources, syndicates and property and asset manages investments on behalf of the Trust.

How the Company Makes Money

Firm Capital Property Trust generates revenue primarily through the rental income from its portfolio of diversified real estate assets. The company leases out its properties to various tenants and collects regular rental payments, which form the core of its revenue stream. Additionally, the trust may engage in property development and enhancement projects that can lead to increased property values and higher rental rates over time. Strategic partnerships and joint ventures with other real estate firms can also contribute to its earnings by providing access to larger, more lucrative projects and expanding its investment opportunities.

Firm Capital Property Financial Statement Overview

Summary

Firm Capital Property demonstrates robust financial health with strong profitability, efficient operations, and solid cash flow generation. The company maintains a balanced capital structure, though its moderate leverage requires careful monitoring.

Income Statement

Firm Capital Property exhibited strong profitability with a gross profit margin of 58.1% and an impressive net profit margin of 55.9% in the latest annual report. The revenue growth rate was 4.3%, indicating steady growth in total revenue. The EBIT and EBITDA margins were high at 53.8% and 78.7% respectively, showcasing operational efficiency. However, the previous year's gross profit was higher, suggesting some margin compression.

Balance Sheet

The company maintains a healthy balance sheet with a debt-to-equity ratio of 1.09, indicating moderate leverage. The return on equity (ROE) stands at 11.1%, suggesting a reasonable return for shareholders. The equity ratio is 47.0%, demonstrating a balanced approach between debt and equity financing. Despite these strengths, the company’s leverage could pose risks if interest rates rise.

Cash Flow

Firm Capital Property has shown strong cash flow generation with a free cash flow growth rate of 31.0%. The operating cash flow to net income ratio is 1.02, indicating excellent cash conversion. The free cash flow to net income ratio is 0.88, reflecting sound cash management. The company’s ability to generate cash flow is a key strength, supporting its operations and financial obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	61.33M	60.58M	58.09M	54.02M	46.43M	44.54M
Gross Profit	37.24M	35.19M	37.30M	35.46M	30.22M	28.54M
EBITDA	38.11M	47.67M	29.28M	30.66M	66.76M	24.73M
Net Income	28.41M	33.89M	15.37M	-22.00M	58.39M	7.50M
Balance Sheet
Total Assets	646.29M	651.95M	637.38M	633.90M	576.36M	480.52M
Cash, Cash Equivalents and Short-Term Investments	2.02M	9.18M	8.33M	4.99M	5.90M	5.69M
Total Debt	328.62M	332.67M	335.29M	325.73M	264.97M	248.35M
Total Liabilities	340.30M	345.57M	345.69M	337.38M	280.44M	257.07M
Stockholders Equity	305.99M	306.38M	291.69M	296.51M	295.92M	223.45M
Cash Flow
Free Cash Flow	25.33M	29.70M	22.66M	-55.31M	-47.05M	11.73M
Operating Cash Flow	30.45M	34.42M	28.92M	29.97M	26.60M	22.32M
Investing Cash Flow	-546.03K	1.96M	-561.66K	-80.71M	-47.83M	-10.55M
Financing Cash Flow	-35.03M	-35.53M	-25.01M	49.83M	21.44M	-18.84M

Firm Capital Property Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.98
• 50DMA: Positive
• 100DMA: Positive
• 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:FCD.UN, the sentiment is Positive. The current price of 5.98 is above the 20-day moving average (MA) of 5.97, above the 50-day MA of 5.96, and above the 200-day MA of 5.67, indicating a bullish trend. The MACD of 0.02 indicates Negative momentum. The RSI at 51.31 is Neutral, neither overbought nor oversold. The STOCH value of 66.67 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:FCD.UN.

Firm Capital Property Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCD.UN	80 Outperform	C$221.56M	7.80	9.43%	8.69%	5.06%	43.11%
PRV.UN	80 Outperform	C$366.44M	12.87	5.68%	7.89%	-1.07%	684.07%
BTB.UN	78 Outperform	C$322.17M	8.26	8.03%	8.20%	3.34%	10.20%
NET.UN	78 Outperform	C$113.90M	7.10	11.99%	6.24%	-0.90%	9.33%
Sector *	64 Neutral	$6.97B	18.66	-1.93%	6.82%	4.65%	-25.39%
MRT.UN	59 Neutral	C$375.19M	―	-3.77%	4.17%	0.18%	68.25%
MR.UN	56 Neutral	$71.17M	―	-16.65%	0.73%	-2.12%	-287.56%

Firm Capital Property Corporate Events

Firm Capital Property Trust Reports Successful Annual Meeting Outcomes

Firm Capital Property Trust announced the successful outcomes of its Annual and Special Meeting of Unitholders, where all proposed matters were approved by a majority vote. This included the election of trustee nominees and the approval of MNP LLP as auditors, as well as the authorization of unallocated options and entitlements under the Trust’s incentive arrangements for three years. The meeting saw participation representing approximately 25.3% of total issued and outstanding Units, reflecting strong stakeholder engagement.

Firm Capital Property Trust Completes Sale of Montreal Industrial Asset

Firm Capital Property Trust has completed the sale of its 50% interest in a 159,470 square foot industrial building in Montreal for $27.9 million. The sale, part of the Montreal Industrial Portfolio Joint Venture, allows the Trust to reduce its exposure to large tenants and reinvest in smaller bay multi-tenant industrial units, grocery-anchored retail, and multi-residential rentals. This transaction is expected to increase the capital gains portion of its 2025 distribution, reflecting a strategic shift towards more diversified and less tariff-sensitive sectors.

Firm Capital Property Trust Reports Q1 2025 Financial Results

Firm Capital Property Trust reported its Q1 2025 financial results, highlighting a 1.5% increase in Net Operating Income and a 1.1% rise in Same Property NOI. Despite a decrease in net income and Adjusted Funds From Operations compared to the previous year, the trust maintained a conservative leverage profile and successfully managed its mortgage maturities. The portfolio’s tenant diversification and geographical spread contribute to its defensive market positioning.