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

• Market Cap: C$3.13B
• Dividend Yield: 6.22%
• Average Volume (3M): 614.21K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.89
• 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: 659,059
• 30 Day Avg. Volume: 614,214
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• 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$13.88
• Price Target Upside: 16.35% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 55 Neutral
• Price Target: C$12.00 ▲(0.59% Upside)

The overall stock score reflects a company facing financial challenges, with declining revenues and profitability. However, technical indicators show positive momentum, and the dividend yield offers some appeal. The earnings call highlighted both growth opportunities and significant challenges, particularly in the industrial segment and transaction costs.

Positive Factors

Growth in Same-Property NOI

The growth in same-property NOI indicates improved operational performance and effective property management, enhancing long-term revenue stability.

Strong Office Occupancy

High office occupancy with long lease terms ensures stable rental income and reduces vacancy risks, supporting sustained cash flow.

Retail Segment Performance

Improved retail segment performance reflects successful tenant retention and demand, contributing to diversified income streams.

Negative Factors

Declining Revenue

Declining revenue growth poses a risk to long-term profitability and may hinder the company's ability to invest in future opportunities.

Industrial Segment Decline

The decline in the industrial segment's NOI and occupancy suggests challenges in maintaining tenant demand, impacting future growth potential.

Office and Land Write-downs

Significant write-downs impact asset valuations and highlight potential overvaluation risks, affecting financial health 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 Investment Trust generates revenue primarily through rental income from its extensive portfolio of properties. The company leases office spaces, retail outlets, industrial facilities, and residential units to a variety of tenants, providing a steady stream of rental payments. Additionally, H&R Real Estate may engage in property development and redevelopment projects, which can lead to capital appreciation and increased rental income over time. The company's earnings are also supported by strategic partnerships and joint ventures, allowing it to leverage expertise and resources to enhance its property offerings and market presence. Furthermore, H&R invests in property acquisitions and dispositions to optimize its portfolio and maximize returns, contributing to its overall revenue generation.

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: Positive
• Last Price: 11.93
• 50DMA: Positive
• 100DMA: Positive
• 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 Positive. The current price of 11.93 is below the 20-day moving average (MA) of 12.00, above the 50-day MA of 11.85, and above the 200-day MA of 10.30, indicating a neutral trend. The MACD of 0.01 indicates Positive momentum. The RSI at 50.01 is Neutral, neither overbought nor oversold. The STOCH value of 23.49 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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	391.79M	13.72	5.16%	7.71%	-0.28%	206.65%
BTB.UN	76 Outperform	331.89M	8.70	7.69%	8.23%	1.59%	19.74%
CRR.UN	69 Neutral	2.78B	-723.67	8.53%	5.95%	6.86%	92.60%
HR.UN	55 Neutral	C$3.13B	―	-1.99%	6.22%	-5.67%	54.92%
AX.UN	55 Neutral	585.50M	-9.30	-3.65%	9.90%	-21.40%	71.00%
MRT.UN	48 Neutral	374.07M	-11.07	-3.82%	4.33%	-2.90%	68.88%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%

H&R Real Estate ate Staple Corporate Events

H&R REIT Declares July 2025 Distribution, Reinforces Strategic Focus

H&R Real Estate Investment Trust has declared a distribution of $0.05 per unit for July 2025, with a record date of July 31 and a distribution date of August 15. This announcement aligns with H&R’s strategy to focus on residential and industrial properties, aiming to generate sustainable long-term value for its unitholders. The move is part of H&R’s broader plan to simplify its business model by divesting office and retail properties, enhancing its position as a key player in the real estate sector, particularly in high-growth areas.

The most recent analyst rating on ($TSE:HR.UN) stock is a Buy 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 REIT Explores Strategic Alternatives Amid Market Speculation

H&R Real Estate Investment Trust has confirmed the formation of a special committee to explore strategic alternatives following unsolicited interest in a potential sale of the REIT or its assets. The committee is considering several non-binding offers but has not made any decisions or agreements. The REIT remains committed to its long-term strategy and will only pursue transactions that align with its best interests.

The most recent analyst rating on ($TSE:HR.UN) stock is a Buy 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 REIT Announces Successful Trustee Re-Election and Executive Compensation Approval

H&R Real Estate Investment Trust announced the successful re-election of all trustee nominees at its 2025 annual meeting of unitholders, with approval ratings ranging from 94.18% to 99.85%. Additionally, a non-binding advisory resolution on executive compensation was passed with 93.78% approval. These outcomes reflect strong unitholder support for H&R’s strategic direction and governance, likely reinforcing its market position and stakeholder confidence.

The most recent analyst rating on ($TSE:HR.UN) stock is a Buy 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 REIT Schedules Q2 2025 Earnings Release and Declares June Distribution

H&R Real Estate Investment Trust announced the release date for its second-quarter 2025 financial results, scheduled for August 13, 2025, with a subsequent conference call on August 14, 2025. The company also declared a distribution for June 2025, reflecting its ongoing commitment to providing value to unitholders. This announcement underscores H&R’s strategic focus on growth in the residential and industrial sectors, as it continues to streamline its portfolio by selling off office and retail properties, thereby enhancing its position within the real estate market.

The most recent analyst rating on ($TSE:HR.UN) stock is a Buy 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 REIT Reports Strong Q1 2025 Results Amid Strategic Asset Repositioning

H&R REIT reported its financial results for the first quarter of 2025, highlighting a successful quarter with a 4.4% growth in same-property net operating income and an occupancy rate of 95.6%. Despite a decrease in total assets and net income compared to the previous year, the company maintained stable funds from operations and a consistent payout ratio, reflecting a robust operational performance amid ongoing strategic asset sales.

The most recent analyst rating on ($TSE:HR.UN) stock is a Hold with a C$11.25 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.