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Canadian Net Real Estate Investment Trust Trust Units (TSE:NET.UN)
:NET.UN
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Canadian Net Real Estate Investment Trust Trust Units
(NET.UN)
Rating:78Outperform
Price Target:
C$6.50
▲(18.40%Upside)
Canadian Net Real Estate Investment Trust Trust Units (NET.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$113.08M
Dividend Yield6.28%
Average Volume (3M)10.97K
Price to Earnings (P/E)7.0
Beta (1Y)0.25
Revenue Growth-0.90%
EPS Growth9.33%
CountryCA
Employees4
SectorReal Estate
Sector Strength69
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.49
Shares Outstanding20,597,637
10 Day Avg. Volume12,458
30 Day Avg. Volume10,969
Financial Highlights & Ratios
PEG Ratio0.16
Price to Book (P/B)1.07
Price to Sales (P/S)0.00
P/FCF Ratio2.27
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
Canadian Net Real Estate Investment Trust Trust Units Business Overview & Revenue Model
Company DescriptionCanadian Net Real Estate Investment Trust (NET.UN) is a real estate investment trust based in Canada, focusing on acquiring, owning, and managing a portfolio of retail, industrial, and mixed-use properties. The trust aims to provide investors with stable and growing cash distributions by leveraging its expertise in property management and strategic acquisitions within the Canadian real estate market.
How the Company Makes MoneyCanadian Net Real Estate Investment Trust makes money primarily through the leasing of its commercial properties to tenants across various sectors, including retail, industrial, and mixed-use spaces. The trust generates rental income from its diversified portfolio, which is carefully selected to ensure high occupancy rates and long-term lease agreements. Additionally, the trust may engage in strategic property acquisitions and disposals to enhance portfolio value and drive revenue growth. Revenue is also bolstered through partnerships with key tenants and property management services that maximize operational efficiency and tenant satisfaction.
Canadian Net Real Estate Investment Trust Trust Units Earnings Call Summary
Earnings Call Date:May 15, 2025
(Q4-2024)
| % Change Since: 2.43%|
Next Earnings Date:Aug 21, 2025
Earnings Call Sentiment Neutral
The earnings call presented a balanced view with strategic portfolio enhancements and resilience in necessity-based retail as notable positives. However, this was offset by declines in key financial metrics and increased administrative expenses, leading to a cautious outlook.Q4-2024 Updates
Positive Updates
Strategic Portfolio Enhancements
Executed key sales and acquisitions, including the sale of 5 gas station properties for $12.8 million and acquisitions of properties in Nova Scotia and Quebec for $21 million in total.
Resilience in Necessity-Based Retail
Continued focus on necessity-based retail tenants, with recent acquisitions reinforcing this strategy and positioning the REIT to benefit from ongoing market resilience.
Successful Lease Renewals
Renewed 3 out of 6 leases set to expire in 2025 with a 4% average rental increase, representing 76% of expiring rents.
Strong Occupancy and Lease Term
Maintained a 100% occupancy rate with a weighted average lease term of 6 years.
Decreased Interest Expenses
Reduced interest expenses on credit facilities and debentures due to ongoing repayments and benefited from declining interest rates.
Negative Updates
Decline in FFO and NOI
FFO decreased by 3.8% and NOI decreased by 3% for the 12-month period ended December 31, 2024, largely due to higher interest charges and property dispositions.
Increased Administrative Expenses
Administrative expenses increased to $1.2 million from $1 million, mainly due to a one-time sales tax expense and higher legal and professional fees.
Decreased Property Rental Income
Property rental income decreased by 2% compared to the previous year, impacted by property dispositions and adjustments.
Company Guidance
In the Canadian Net REIT's 2024 fourth quarter earnings call, the company highlighted several financial metrics and strategic actions taken over the year. The REIT completed the sale of five gas station properties, yielding approximately $12.8 million, and reinvested in a Sobeys property for $9 million, along with a $12 million investment in three single-tenant properties with capitalization rates of 7% and 8% and mortgage rates of 4.5% and 4.8%. The REIT's FFO for the 3-month period ended December 31, 2024, decreased by 2.5% to $3.25 million, while the normalized FFO per unit for the year was $0.611, down 3.8% from 2023. The REIT's debt to gross asset ratio was approximately 56%, and the normalized FFO payout ratio increased slightly to 56%. The call also noted a 100% occupancy rate, a weighted average lease term of six years, and planned focus on refinancing to repay a $6 million convertible debenture.Canadian Net Real Estate Investment Trust Trust Units Financial Statement Overview
Summary
Canadian Net Real Estate Investment Trust demonstrates stable financial health with consistent revenue growth and robust cash flow management. While profitability metrics are improving, increasing debt levels and the absence of EBIT data in the latest period warrant attention. Overall, the financial standing is strong, with opportunities for enhancing operational efficiency.Income Statement
The company has shown consistent revenue growth over the years, albeit with a slight dip in the most recent year. Gross profit margins are healthy, and net profit margins have improved significantly. However, the absence of EBIT data for the latest year raises questions about operational efficiency.75
Positive
Balance Sheet
The balance sheet reflects a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. However, the equity ratio has been declining, suggesting increased reliance on debt over time. Return on equity shows positive trends, but the slight decrease in stockholders' equity warrants attention.70
Positive
Cash Flow
The company demonstrates strong cash flow health with positive free cash flow and operating cash flow metrics. Cash flow from operations consistently covers net income, indicating efficient cash management. Despite fluctuations, free cash flow growth remains robust.80
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 26.12M | 26.55M | 24.73M | 18.95M | 12.99M | Gross Profit |
| 18.92M | 19.43M | 18.37M | 14.32M | 9.87M | EBIT |
| 16.90M | 20.95M | 16.75M | 16.81M | 11.81M | EBITDA |
| 14.33M | 18.08M | 16.75M | 29.91M | 12.88M | Net Income Common Stockholders |
| 7.10M | 18.22M | -6.49M | 25.09M | 9.62M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.57M | 987.72K | 2.20M | 1.78M | 5.54M | Total Assets |
| 301.32M | 308.35M | 303.06M | 278.17M | 209.71M | Total Debt |
| 167.51M | 174.71M | 180.10M | 144.71M | 115.79M | Net Debt |
| 166.63M | 173.72M | 179.90M | 144.10M | 111.33M | Total Liabilities |
| 171.88M | 178.86M | 184.37M | 148.35M | 119.50M | Stockholders Equity |
| 129.44M | 129.49M | 118.69M | 129.81M | 90.21M |
| Cash Flow | Free Cash Flow | |||
| 10.65M | 11.25M | 56.02M | 9.26M | 78.94M | Operating Cash Flow |
| 10.65M | 11.25M | 11.33M | 9.26M | 6.19M | Investing Cash Flow |
| 3.72M | 2.71M | -41.56M | -55.79M | -73.82M | Financing Cash Flow |
| -14.48M | -13.18M | 29.83M | 42.68M | 71.79M |
Canadian Net Real Estate Investment Trust Trust Units Technical Analysis
Positive
5.49
Price Trends
5.26
Positive
5.22
Positive
5.20
Positive
Market Momentum
0.04
Negative
64.80
Neutral
60.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NET.UN, the sentiment is Positive. The current price of 5.49 is above the 20-day moving average (MA) of 5.36, above the 50-day MA of 5.26, and above the 200-day MA of 5.20, indicating a bullish trend. The MACD of 0.04 indicates Negative momentum. The RSI at 64.80 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NET.UN.
Canadian Net Real Estate Investment Trust Trust Units Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | C$113.08M | 7.05 | 11.99% | 6.28% | -0.90% | 9.33% | |
78 Outperform | C$319.53M | 8.20 | 8.03% | 8.26% | 3.34% | 10.20% | |
77 Outperform | C$221.56M | 7.80 | 9.43% | 8.66% | 5.06% | 43.11% | |
72 Outperform | C$341.37M | 12.71 | 5.68% | 7.99% | -1.07% | 684.07% | |
61 Neutral | $2.83B | 10.72 | 0.40% | 6.10% | 5.80% | -21.26% | |
37 Underperform | C$49.89M | ― | -5.93% | 1.95% | -2.06% | 43.41% |
* Real Estate Sector Average
Performance Comparison
TSE:NET.UN
Canadian Net Real Estate Investment Trust Trust Units
5.49
0.94
20.66%
TSE:BTB.UN
BTB REIT
3.63
0.73
25.17%
TSE:MPCT.UN
Dream Impact Trust
2.71
-1.07
-28.31%
TSE:FCD.UN
Firm Capital Property
6.00
1.47
32.45%
TSE:PRV.UN
PRO Real Estate Investment
5.63
1.08
23.74%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.