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

• Market Cap: C$421.54M
• Dividend Yield: 3.9%
• Average Volume (3M): 9.76K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.35
• 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: 66,071,335
• 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: -5.96% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 55 Neutral
• Price Target: C$6.00 ▼(-5.96% Downside)

Morguard Real Estate's overall stock score reflects significant financial challenges, with negative profitability and high leverage being major concerns. Technical analysis shows positive momentum, which provides some optimism. Valuation is hindered by a negative P/E ratio, though the dividend yield offers a positive aspect. The earnings call indicates mixed results with some positive developments but also highlights ongoing challenges.

Positive Factors

Increased Liquidity

Increased liquidity enhances Morguard's financial flexibility, allowing it to manage debt and invest in growth opportunities, supporting long-term stability.

Retail Leasing Success

High occupancy and rental growth in retail leasing indicate strong demand and effective property management, contributing to stable revenue streams.

Interest Expense Decline

Reduced interest expenses improve cash flow and profitability, allowing Morguard to allocate resources towards strategic initiatives and debt reduction.

Negative Factors

Net Operating Income Decline

Declining net operating income reflects challenges in maintaining profitability, potentially impacting Morguard's ability to generate consistent cash flow.

High Leverage

High leverage limits financial flexibility and increases risk during economic downturns, potentially affecting Morguard's long-term financial health.

Occupancy Rate Decrease

Decreased occupancy rates can lead to reduced rental income, impacting revenue stability and necessitating strategic efforts to attract and retain tenants.

Morguard Real Estate ate Business Overview & Revenue Model

Company Description

Morguard Real Estate Investment Trust (MRT.UN) is a Canadian real estate investment trust that focuses on acquiring, owning, and managing a diversified portfolio of income-producing properties. The Trust primarily operates in the retail, office, and industrial sectors, providing quality spaces for tenants across Canada. Morguard aims to deliver sustainable returns to its unitholders through strategic property management and the optimization of its real estate assets.

How the Company Makes Money

Morguard generates revenue primarily through leasing its properties to tenants, which includes retail spaces, office buildings, and industrial facilities. The company earns rental income from long-term leases, which typically provide stable cash flow. In addition to rental income, Morguard may also generate revenue through property management fees and ancillary services related to its real estate operations. The Trust's revenue model is bolstered by its diversified portfolio, which helps mitigate risks associated with fluctuations in specific sectors or geographic markets. Key partnerships with tenants and a focus on maintaining high occupancy rates further contribute to its earnings. Additionally, the company's ability to strategically acquire and develop properties enhances its revenue-generating potential.

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	243.77M	259.17M	255.08M	242.63M	241.44M	253.76M
Gross Profit	115.98M	128.23M	125.97M	121.99M	122.13M	123.78M
EBITDA	28.07M	6.09M	-13.22M	-34.05M	117.27M	-302.67M
Net Income	-44.09M	-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	7.43M	7.90M	7.28M	9.71M	11.27M	8.65M
Total Debt	1.24B	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	871.52M	884.23M	961.18M	1.05B	1.15B	1.16B
Cash Flow
Free Cash Flow	17.41M	12.12M	27.28M	41.55M	63.14M	15.10M
Operating Cash Flow	45.78M	54.46M	66.32M	73.97M	80.19M	46.92M
Investing Cash Flow	-40.68M	-5.28M	-39.04M	-32.42M	-2.95M	-25.02M
Financing Cash Flow	-5.21M	-48.55M	-29.71M	-43.11M	-74.62M	-19.04M

Morguard Real Estate ate Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 6.38 is above the 20-day moving average (MA) of 5.98, above the 50-day MA of 5.88, and above the 200-day MA of 5.65, indicating a bullish trend. The MACD of 0.13 indicates Negative momentum. The RSI at 71.58 is Negative, neither overbought nor oversold. The STOCH value of 90.87 is Negative, 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	78 Outperform	C$429.35M	11.48	7.24%	7.09%	2.81%	9677.19%
MRG.UN	76 Outperform	C$911.04M	7.51	6.37%	4.36%	3.83%	63.32%
BTB.UN	75 Outperform	C$355.72M	8.49	8.60%	7.41%	0.92%	92.93%
MI.UN	69 Neutral	C$488.69M	6.53	7.26%	3.91%	-1.21%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AX.UN	63 Neutral	C$767.73M	-8.98	-4.93%	7.50%	-20.06%	19.27%
MRT.UN	55 Neutral	C$421.54M	-9.22	-4.91%	3.90%	-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.