Granite Real Estate (TSE:GRT.UN)
TSX:GRT.UN
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Granite Real Estate
(TSX:GRT.UN)
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Rating:78Outperform
Price Target:
C$107.00
â–²(16.62% Upside)
Action:Reiterated
Date:05/09/26
Overall score is driven primarily by solid financial performance (strong recent growth and profitability with moderate leverage, partially offset by uneven multi-year earnings/cash-flow consistency and modest ROE). Technicals add support via a strong uptrend and positive momentum indicators. Valuation further strengthens the outlook with a moderate P/E and an attractive dividend yield.
Positive Factors
Revenue Growth & Profitability
Sustained top-line growth and improved profitability increase predictable rental income and scale. Over a 2–6 month horizon this strengthens lease renegotiation leverage, supports contractual escalations and occupancy economics, and enhances funding capacity for selective development.
Negative Factors
Earnings Volatility
Material year-to-year earnings swings indicate earnings quality and cyclicality risks. Persistent volatility complicates forecasting of distributable cash and capital planning, increasing the risk that dividends or development plans may need adjustment if weaker periods reoccur.
Read all positive and negative factors
Positive Factors
Negative Factors
Revenue Growth & Profitability
Sustained top-line growth and improved profitability increase predictable rental income and scale. Over a 2–6 month horizon this strengthens lease renegotiation leverage, supports contractual escalations and occupancy economics, and enhances funding capacity for selective development.
Read all positive factors
Granite Real Estate (GRT.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$5.82B
Dividend Yield4.18%
Average Volume (3M)85.21K
Price to Earnings (P/E)13.6
Beta (1Y)0.95
Revenue Growth7.70%
EPS Growth27.70%
CountryCA
Employees70
SectorReal Estate
Sector Strength53
IndustryREIT - Industrial
Share Statistics
EPS (TTM)6.41
Shares Outstanding60,600,624
10 Day Avg. Volume73,610
30 Day Avg. Volume85,207
Financial Highlights & Ratios
PEG Ratio-6.95
Price to Book (P/B)0.91
Price to Sales (P/S)8.07
P/FCF Ratio12.88
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$102.20Price Target Upside11.39% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering5
EPS Forecast (FY)6.34
Revenue Forecast (FY)C$660.26M
Granite Real Estate Business Overview & Revenue Model
Company Description
Granite is a Canadian-based REIT engaged in the acquisition, development, ownership and management of logistics, warehouse and industrial properties in North America and Europe. Granite owns 108 investment properties representing approximately 45....
How the Company Makes Money
Granite Real Estate makes money primarily by earning rental revenue from leasing its industrial and logistics properties to tenants. Its core revenue stream is base rent under long-term leases, which may include contractual rent escalations (e.g.,...
Granite Real Estate Earnings Call Summary
Earnings Call Date:Nov 05, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Aug 12, 2026
Earnings Call Sentiment Positive
The earnings call highlighted Granite REIT's strong financial performance and leasing activity, with positive market conditions and increased distribution. However, the call also noted higher G&A expenses and capital expenditures, and challenges in the Greater Toronto Area. Overall, the highlights significantly outweigh the lowlights, indicating a positive sentiment.Positive Updates
Strong Financial Performance and Guidance Increase
Granite REIT posted Q3 2025 results ahead of Q2 and in line with management's annual forecast. FFO per unit in Q3 was $1.48, a 6.5% increase from Q2 '25, and a 9.6% increase relative to the same quarter in the prior year. Guidance for 2025 was increased, reflecting strong leasing activity and NOI growth.
Negative Updates
Increased G&A Expenses
G&A expenses for the quarter were $14.1 million, $4.1 million higher than in Q2, primarily due to an unfavorable fair value adjustment to noncash compensation liabilities.
Read all updates
Q3-2025 Updates
Positive
Negative
Strong Financial Performance and Guidance Increase
Granite REIT posted Q3 2025 results ahead of Q2 and in line with management's annual forecast. FFO per unit in Q3 was $1.48, a 6.5% increase from Q2 '25, and a 9.6% increase relative to the same quarter in the prior year. Guidance for 2025 was increased, reflecting strong leasing activity and NOI growth.
Read all positive updates
Company Guidance
In the third quarter of 2025, Granite REIT reported strong financial performance, with a notable increase in FFO per unit to $1.48, marking a $0.09 (6.5%) rise from the previous quarter and a $0.13 (9.6%) increase from the same period last year. This growth was primarily driven by robust NOI growth, which accounted for $0.06 of the $0.09 FFO increase, supported by an impressive 88% leasing spread and the lease-up of previously vacant units in Canada and the U.S. Additionally, AFFO per unit rose to $1.26, up $0.03 from Q2 and $0.04 year-over-year, largely due to the FFO growth and lower leasing costs. Granite has raised its full-year guidance for 2025, projecting FFO per unit to range between $5.83 and $5.90, reflecting a 7% to 9% increase over 2024. The company’s balance sheet remains strong, with investment properties valued at $9.1 billion and a net leverage ratio of 35%. Furthermore, Granite’s liquidity stands at approximately $1 billion, and the company expects to reduce its credit facility balance with free cash flow from operations and property dispositions.Granite Real Estate Financial Statement Overview
Summary
Income Statement
84
Very Positive
Balance Sheet
74
Positive
Cash Flow
71
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 629.87M | 618.70M | 569.14M | 521.25M | 455.58M | 393.49M |
| Gross Profit | 517.51M | 507.07M | 471.99M | 435.24M | 380.36M | 332.68M |
| EBITDA | 513.85M | 459.39M | 480.48M | 203.14M | 346.73M | 293.51M |
| Net Income | 389.74M | 342.34M | 360.61M | 136.66M | 155.77M | 1.31B |
Balance Sheet | ||||||
| Total Assets | 9.67B | 9.73B | 9.62B | 9.07B | 9.28B | 8.57B |
| Cash, Cash Equivalents and Short-Term Investments | 94.22M | 139.59M | 126.17M | 116.13M | 135.08M | 402.51M |
| Total Debt | 3.11B | 3.34B | 3.11B | 3.10B | 3.07B | 2.46B |
| Total Liabilities | 4.04B | 4.22B | 3.88B | 3.78B | 3.80B | 3.25B |
| Stockholders Equity | 5.63B | 5.51B | 5.73B | 5.28B | 5.48B | 5.32B |
Cash Flow | ||||||
| Free Cash Flow | 376.57M | 387.55M | 338.48M | 312.90M | 276.69M | 261.68M |
| Operating Cash Flow | 376.73M | 387.67M | 338.61M | 313.18M | 277.50M | 262.26M |
| Investing Cash Flow | -81.86M | -203.58M | -65.46M | -128.13M | -766.56M | -1.03B |
| Financing Cash Flow | -318.15M | -166.28M | -267.50M | -203.11M | 214.56M | 333.48M |
Granite Real Estate Technical Analysis
Positive
91.75
Price Trends
88.58
Positive
87.44
Positive
81.74
Positive
Market Momentum
1.36
Negative
66.10
Neutral
86.48
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GRT.UN, the sentiment is Positive. The current price of 91.75 is below the 20-day moving average (MA) of 92.38, above the 50-day MA of 88.58, and above the 200-day MA of 81.74, indicating a bullish trend. The MACD of 1.36 indicates Negative momentum. The RSI at 66.10 is Neutral, neither overbought nor oversold. The STOCH value of 86.48 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:GRT.UN.
Granite Real Estate Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$5.82B | 13.59 | 7.08% | 4.18% | 7.70% | 27.70% | |
74 Outperform | C$4.95B | 10.78 | 7.00% | 7.22% | -1.84% | 48.17% | |
73 Outperform | C$4.31B | 8.51 | 15.35% | 5.74% | 4.54% | 19.18% | |
73 Outperform | C$3.23B | 26.59 | 6.51% | 5.82% | 5.35% | -430.27% | |
71 Outperform | C$3.96B | 14.38 | 3.88% | 5.56% | 8.20% | -20.89% | |
69 Neutral | C$5.01B | 11.88 | 24.22% | 4.71% | 0.35% | 399.29% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% |
* Real Estate Sector Average
TSE:GRT.UN
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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.