H&R Real Estate ate Staple (HR.UN) AI Stock Analysis

• Market Cap: C$2.91B
• Dividend Yield: 7.16%
• Average Volume (3M): 635.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -0.83%
• EPS Growth: -56.21%
• Country: CA
• Employees: 777
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): -1.23
• Shares Outstanding: 262,565,580
• 10 Day Avg. Volume: 540,189
• 30 Day Avg. Volume: 635,797
• PEG Ratio: 0.07
• Price to Book (P/B): 0.46
• Price to Sales (P/S): 2.98
• P/FCF Ratio: 10.37
• 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$12.00
• Price Target Upside: 16.28% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: C$11.50 ▲(11.43% Upside)

The overall stock score is primarily influenced by financial performance challenges, including declining revenues and profitability. Technical indicators suggest bearish momentum, while valuation is mixed with a high dividend yield but negative earnings. The earnings call provided some positive strategic insights, but uncertainty in asset sales and segment challenges weigh on the outlook.

Positive Factors

Technological Innovation

The adoption of an AI-driven leasing platform enhances operational efficiency and reduces bad debt, supporting long-term profitability and competitiveness in the residential segment.

Healthy Financial Ratios

Maintaining healthy FFO and AFFO payout ratios indicates strong cash flow management, ensuring sustainable distributions and financial stability.

Office and Retail Segment Performance

Strong performance in office and retail segments demonstrates resilience and growth potential, offsetting challenges in other areas and supporting overall revenue stability.

Negative Factors

Residential Segment Challenges

Declining NOI in the residential segment due to reduced rental income and higher expenses poses risks to revenue growth and profitability.

Industrial Segment Decline

The decline in industrial segment performance and occupancy rates may impact future cash flows and necessitate strategic adjustments.

Asset Sales Uncertainty

Uncertainty around asset sales could lead to volatility in portfolio composition, affecting long-term strategic planning and financial outcomes.

H&R Real Estate ate Staple Business Overview & Revenue Model

Company Description

H&R REIT is one of Canada's largest real estate investment trusts with total assets of approximately $13.3 billion at September 30, 2020. H&R REIT has ownership interests in a North American portfolio of high quality office, retail, industrial and residential properties comprising over 40 million square feet.

How the Company Makes Money

H&R Real Estate generates revenue primarily through rental income from its diverse portfolio of properties, including retail, office, industrial, and residential assets. The company leases space to various tenants, receiving consistent rental payments that contribute to its cash flow. Additionally, H&R may engage in property development, which can create further income through leasing newly developed spaces or selling properties at a profit. The trust also benefits from long-term leases with tenants, providing stability in its revenue streams. Partnerships with property management firms and real estate brokers enhance its market reach and operational efficiency, contributing to its overall earnings.

H&R Real Estate ate Staple Financial Statement Overview

Summary

The company faces challenges with declining revenues and profitability, as reflected in negative net income and revenue growth. While the balance sheet shows manageable leverage, the negative return on equity indicates profitability issues. Cash flow generation is a concern, with declining free cash flow growth, but cash conversion remains efficient. The company needs to address revenue growth and profitability to improve its financial health.

Income Statement

The income statement shows declining revenue with a negative revenue growth rate of -9.4% TTM. The company has a negative net profit margin of -11.97% TTM, indicating losses. However, the gross profit margin remains relatively healthy at 60.02% TTM, suggesting efficient cost management. The EBIT margin is positive at 10.80% TTM, but the EBITDA margin is low at 4.33% TTM, reflecting potential challenges in operational efficiency.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 0.73 TTM, indicating manageable leverage. However, the return on equity is negative at -1.93% TTM, reflecting poor profitability. The equity ratio is stable, suggesting a balanced capital structure, but the negative ROE highlights the need for improved earnings.

Cash Flow

Cash flow analysis shows a decline in free cash flow growth at -9.48% TTM, indicating potential liquidity concerns. The operating cash flow to net income ratio is 0.12 TTM, suggesting limited cash generation relative to net losses. However, the free cash flow to net income ratio is strong at 82.16% TTM, indicating efficient cash conversion despite net losses.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	812.34M	816.99M	903.63M	834.64M	1.07B	1.10B
Gross Profit	487.58M	499.34M	603.09M	534.95M	661.58M	663.67M
EBITDA	35.17M	-35.07M	627.04M	506.68M	820.29M	651.82M
Net Income	-97.23M	-119.71M	61.69M	844.82M	597.91M	-624.56M
Balance Sheet
Total Assets	9.89B	10.62B	10.78B	11.41B	10.50B	13.36B
Cash, Cash Equivalents and Short-Term Investments	60.09M	100.35M	64.11M	76.89M	124.14M	62.86M
Total Debt	3.45B	3.54B	3.72B	3.95B	3.92B	6.40B
Total Liabilities	5.17B	5.34B	5.59B	5.93B	5.73B	7.28B
Stockholders Equity	4.72B	5.28B	5.19B	5.49B	4.77B	6.07B
Cash Flow
Free Cash Flow	195.26M	234.48M	253.46M	219.47M	405.02M	373.95M
Operating Cash Flow	237.66M	274.07M	294.63M	255.05M	452.11M	426.93M
Investing Cash Flow	20.20M	173.15M	112.86M	225.95M	1.50B	-183.24M
Financing Cash Flow	-272.28M	-410.98M	-420.26M	-528.26M	-1.89B	-229.47M

H&R Real Estate ate Staple Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.32
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HR.UN, the sentiment is Negative. The current price of 10.32 is below the 20-day moving average (MA) of 10.64, below the 50-day MA of 11.19, and below the 200-day MA of 10.67, indicating a bearish trend. The MACD of -0.31 indicates Negative momentum. The RSI at 39.61 is Neutral, neither overbought nor oversold. The STOCH value of 65.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:HR.UN.

H&R Real Estate ate Staple Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PRV.UN	81 Outperform	C$399.16M	14.17	7.24%	7.17%	2.81%	9677.19%
BTB.UN	75 Outperform	C$332.77M	7.94	8.60%	7.79%	0.92%	92.93%
CRR.UN	67 Neutral	C$2.75B	-714.49	0.14%	5.80%	6.32%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
HR.UN	52 Neutral	C$2.91B	-30.02	-8.74%	7.16%	-0.83%	-56.21%
AX.UN	52 Neutral	$632.42M	―	-4.93%	9.04%	-20.06%	19.27%
MRT.UN	51 Neutral	C$383.68M	-8.51	-4.91%	4.14%	-5.37%	13.86%

H&R Real Estate ate Staple Corporate Events

H&R REIT Updates Strategic Review and Reports Q3 2025 Financial Results

H&R REIT announced an update on its strategic review process and third-quarter 2025 financial results. The strategic review, initiated in response to acquisition interest, led to negotiations for asset sales worth approximately $2.6 billion, although no en bloc offers were received. The Special Committee overseeing the review has been dissolved, with the Board now managing potential transactions. Financially, the REIT reported a net loss for the quarter, with decreased net operating income and fair value adjustments on real estate assets impacting results.

The most recent analyst rating on ($TSE:HR.UN) stock is a Hold with a C$11.50 price target. To see the full list of analyst forecasts on H&R Real Estate ate Staple stock, see the TSE:HR.UN Stock Forecast page.

H&R Real Estate Investment Trust Sets Date for Q3 2025 Earnings Release and Declares October Distribution

H&R Real Estate Investment Trust announced the release date for its third-quarter 2025 financial results, scheduled for November 13, 2025, with a subsequent conference call on November 14, 2025. The company also declared a monthly distribution for October 2025, reflecting its ongoing commitment to delivering value to its stakeholders. This announcement underscores H&R’s strategic focus on residential and industrial properties, aligning with its broader goal of simplifying its business model to enhance long-term growth and sustainability.

The most recent analyst rating on ($TSE:HR.UN) stock is a Hold with a C$11.00 price target. To see the full list of analyst forecasts on H&R Real Estate ate Staple stock, see the TSE:HR.UN Stock Forecast page.

H&R REIT Declares September 2025 Distribution Amid Strategic Focus Shift

H&R Real Estate Investment Trust announced a monthly distribution of $0.05 per unit for September 2025, with an annualized rate of $0.60. This distribution reflects H&R’s ongoing commitment to providing value to its unitholders. The company’s strategic focus on residential and industrial properties is expected to drive sustainable long-term growth, as it plans to divest office and retail properties when market conditions are favorable.

The most recent analyst rating on ($TSE:HR.UN) stock is a Hold with a C$12.00 price target. To see the full list of analyst forecasts on H&R Real Estate ate Staple stock, see the TSE:HR.UN Stock Forecast page.

H&R Real Estate Staple’s Mixed Earnings Call Insights

H&R Real Estate Staple’s recent earnings call painted a mixed picture for investors. While there were notable growth areas, such as the office and retail segments, and recognition for Lantower Residential, these positives were tempered by challenges in the industrial segment, significant transaction costs, and substantial asset write-downs.