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

• Market Cap: C$2.91B
• Dividend Yield: 6.61%
• Average Volume (3M): 635.80K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.80
• Revenue Growth: -5.67%
• EPS Growth: 54.92%
• Country: CA
• Employees: 777
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): -0.63
• 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$13.50
• Price Target Upside: 20.21% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: C$11.50 ▲(2.40% Upside)

The overall stock score reflects challenges in financial performance, with declining revenues and profitability. Technical analysis indicates bearish momentum, while valuation is mixed with a high dividend yield but negative P/E ratio. The earnings call provided some positive updates, but concerns remain regarding industrial segment performance and transaction costs.

Positive Factors

Growth in Same-Property NOI

The increase in same-property NOI indicates effective property management and potential for stable cash flow, supporting long-term financial health.

Strong Office Occupancy

High office occupancy with long lease terms ensures steady rental income, enhancing revenue stability and reducing vacancy risks.

Retail Segment Performance

Improved retail segment performance reflects successful leasing strategies and market demand, contributing to diversified revenue streams.

Negative Factors

Industrial Segment Decline

Declining industrial segment performance may impact overall revenue and indicate challenges in maintaining tenant occupancy.

Transaction Costs

High transaction costs can strain financial resources and affect profitability, potentially limiting future investment opportunities.

Office and Land Write-downs

Significant write-downs indicate asset devaluation, which can negatively affect the balance sheet and investor confidence.

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: 11.23
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Positive
• MACD: Positive
• 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 11.23 is below the 20-day moving average (MA) of 11.39, below the 50-day MA of 11.62, and above the 200-day MA of 10.57, indicating a neutral trend. The MACD of -0.11 indicates Positive momentum. The RSI at 42.58 is Neutral, neither overbought nor oversold. The STOCH value of 31.88 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	79 Outperform	C$399.16M	14.17	5.27%	7.44%	-0.28%	206.65%
BTB.UN	75 Outperform	C$332.77M	7.94	8.60%	7.97%	0.92%	92.93%
CRR.UN	67 Neutral	C$2.75B	-714.49	0.14%	5.90%	6.32%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AX.UN	55 Neutral	C$656.03M	―	-3.37%	8.84%	-21.40%	71.00%
HR.UN	52 Neutral	C$2.91B	-30.02	-1.99%	6.61%	-5.67%	54.92%
MRT.UN	51 Neutral	C$383.68M	-8.51	-4.91%	4.30%	-5.37%	13.86%

H&R Real Estate ate Staple Corporate Events

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.