Morguard Real Estate ate (MRT.UN) AI Stock Analysis

• Market Cap: C$383.68M
• Dividend Yield: 4.3%
• Average Volume (3M): 9.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.32
• Revenue Growth: -5.37%
• EPS Growth: 13.86%
• Country: CA
• Employees: 8
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): 0.07
• Shares Outstanding: 65,698,000
• 10 Day Avg. Volume: 8,931
• 30 Day Avg. Volume: 9,757
• PEG Ratio: 0.29
• Price to Book (P/B): 0.40
• Price to Sales (P/S): 1.37
• P/FCF Ratio: 29.32
• 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$6.00
• Price Target Upside: 2.56% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 51 Neutral
• Price Target: C$6.00 ▲(2.56% Upside)

Morguard Real Estate's overall stock score reflects significant financial challenges, including declining revenues and high leverage, which are the most impactful factors. The technical analysis and valuation present a neutral outlook, while the earnings call provides some optimism for future leasing opportunities. The lack of notable corporate events leaves the focus on addressing financial and operational issues.

Positive Factors

Occupancy Improvement

The increase in occupancy at Penn West Plaza signifies improved asset utilization and potential for higher rental income, enhancing long-term revenue stability.

Interest Expense Decline

Reduced interest expenses improve cash flow and financial flexibility, allowing for reinvestment in growth opportunities and debt reduction.

Retail Leasing Success

High occupancy and rental growth in retail indicate strong demand and pricing power, supporting sustained revenue and profitability.

Negative Factors

Declining Revenue

Declining revenue growth reflects challenges in maintaining tenant demand and rental rates, potentially impacting long-term financial performance.

High Leverage

High leverage increases financial risk and limits flexibility, potentially constraining the ability to invest in growth or weather economic downturns.

Net Operating Income Decline

A decline in net operating income indicates reduced profitability from core operations, challenging the company's ability to generate sustainable returns.

Morguard Real Estate ate Business Overview & Revenue Model

Company Description

Morguard Real Estate Investment Trust (MRT.UN) is a Canada-based real estate investment trust focused on owning, managing, and developing retail, office, and industrial properties across Canada. The company's portfolio includes a diverse range of properties strategically located in prime markets, catering to various tenants and industries. Morguard REIT is committed to providing high-quality spaces that meet the needs of its tenants while delivering stable and sustainable returns to its investors.

How the Company Makes Money

Morguard Real Estate Investment Trust generates revenue primarily through leasing its properties to tenants in the retail, office, and industrial sectors. The company earns rental income, which forms the bulk of its revenue, through long-term lease agreements with tenants. Additionally, MRT.UN enhances its revenue by managing property-related services and maintenance, which may include property management fees. The trust may also realize gains from the strategic sale of properties and reinvest in its portfolio to optimize its asset base. The company's earnings are further supported by its focus on maintaining high occupancy rates and effective cost management strategies.

Morguard Real Estate ate Financial Statement Overview

Summary

Morguard Real Estate faces significant financial challenges, with declining revenues and persistent profitability issues. The high leverage on the balance sheet increases financial risk, while weak cash flow performance limits operational flexibility. The company needs to address these issues to improve its financial health and stability.

Income Statement

The income statement shows a declining revenue trend with a negative revenue growth rate of -2.25% in the TTM period. The company has been struggling with profitability, as indicated by negative net profit margins across all periods, with the TTM net profit margin at -13.31%. While the gross profit margin remains relatively stable, the EBIT and EBITDA margins are low, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio of 1.44 in the TTM period, indicating significant leverage. The return on equity is negative, suggesting that the company is not generating sufficient returns on its equity base. The equity ratio is moderate, showing a balanced asset structure, but the high leverage poses potential risks.

Cash Flow

The cash flow statement indicates a decline in free cash flow growth, with a significant drop of -25.49% in the TTM period. The operating cash flow to net income ratio is low, reflecting challenges in converting income into cash. The free cash flow to net income ratio is moderate, but overall cash flow performance is weak, impacting liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	249.38M	259.17M	255.08M	242.63M	241.44M	253.76M
Gross Profit	116.92M	128.23M	125.97M	121.99M	122.13M	123.78M
EBITDA	29.64M	6.09M	-13.22M	-34.05M	117.27M	-302.67M
Net Income	-33.19M	-58.82M	-74.44M	-138.06M	-47.38M	-410.70M
Balance Sheet
Total Assets	2.18B	2.17B	2.28B	2.38B	2.49B	2.56B
Cash, Cash Equivalents and Short-Term Investments	6.51M	7.90M	7.28M	9.71M	11.27M	8.65M
Total Debt	1.25B	1.23B	1.26B	1.27B	1.30B	1.35B
Total Liabilities	1.31B	1.29B	1.32B	1.33B	1.34B	1.40B
Stockholders Equity	867.71M	884.23M	961.18M	1.05B	1.15B	1.16B
Cash Flow
Free Cash Flow	14.82M	12.12M	27.28M	41.55M	63.14M	15.10M
Operating Cash Flow	43.19M	54.46M	66.32M	73.97M	80.19M	46.92M
Investing Cash Flow	-38.58M	-5.28M	-39.04M	-32.42M	-2.95M	-25.02M
Financing Cash Flow	-5.30M	-48.55M	-29.71M	-43.11M	-74.62M	-19.04M

Morguard Real Estate ate Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.85
• 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:MRT.UN, the sentiment is Positive. The current price of 5.85 is above the 20-day moving average (MA) of 5.79, above the 50-day MA of 5.82, and above the 200-day MA of 5.64, indicating a bullish trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 55.06 is Neutral, neither overbought nor oversold. The STOCH value of 65.20 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:MRT.UN.

Morguard Real Estate ate 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%	7.36%	2.81%	9677.19%
BTB.UN	75 Outperform	C$332.77M	7.94	8.60%	7.83%	0.92%	92.93%
FCD.UN	75 Outperform	C$221.93M	11.72	6.20%	8.88%	2.69%	-45.80%
NET.UN	75 Outperform	C$112.26M	4.75	10.16%	6.31%	3.20%	39.37%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
MRT.UN	51 Neutral	C$383.68M	-8.51	-4.91%	4.30%	-5.37%	13.86%

Morguard Real Estate ate Corporate Events

Morguard Real Estate’s Earnings Call Reveals Mixed Outlook

Morguard Real Estate’s recent earnings call painted a mixed picture for stakeholders, with some positive trends overshadowed by significant challenges. While the company reported strong occupancy rates in certain areas and a reduction in interest expenses, these were counterbalanced by declines in net operating income, increased vacancies, and fair value losses. The positive leasing activities offer a glimmer of hope for future improvements, yet the current financial metrics suggest a challenging outlook.