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)
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Rating:71Outperform
Price Target:
C$7.00
▲(18.04% Upside)
Action:UpgradedDate:03/20/26
The score is driven by attractive valuation (low P/E and strong dividend yield) and supportive technicals (price above major moving averages with positive momentum). These positives are moderated by financial-performance risks, especially consistently high leverage and uneven earnings-to-cash-flow conversion with volatile free cash flow.
Positive Factors
Long-term revenue growth
Sustained revenue expansion across 2020–2025 indicates durable demand for properties and effective leasing/management. Persistent top‑line growth supports rent-roll stability, underpins debt service capacity and strengthens the business case for future acquisitions or reinvestment.
Negative Factors
Elevated leverage
Debt consistently exceeding equity (D/E ~1.1–1.5) increases refinancing and interest-rate risk. High leverage amplifies downside in property-value or cash-flow stress, tightens covenant exposure and limits strategic flexibility for acquisitions or distribution smoothing over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Long-term revenue growth
Sustained revenue expansion across 2020–2025 indicates durable demand for properties and effective leasing/management. Persistent top‑line growth supports rent-roll stability, underpins debt service capacity and strengthens the business case for future acquisitions or reinvestment.
Read all positive factors
Canadian Net Real Estate Investment Trust Trust Units (NET.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$134.09M
Dividend Yield6.15%
Average Volume (3M)16.27K
Price to Earnings (P/E)7.0
Beta (1Y)0.14
Revenue Growth7.11%
EPS Growth134.43%
CountryCA
Employees4
SectorReal Estate
Sector Strength53
IndustryREIT - Diversified
Share Statistics
EPS (TTM)0.24
Shares Outstanding20,597,637
10 Day Avg. Volume16,190
30 Day Avg. Volume16,268
Financial Highlights & Ratios
PEG Ratio0.05
Price to Book (P/B)0.84
Price to Sales (P/S)4.16
P/FCF Ratio8.41
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$6.75Price Target Upside13.83% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)C$32.20M
Canadian Net Real Estate Investment Trust Trust Units Business Overview & Revenue Model
Company Description
Canadian Net Real Estate Investment Trust is an open-ended trust that acquires and owns high quality triple net and management-free commercial real estate properties....
How the Company Makes Money
null...
Canadian Net Real Estate Investment Trust Trust Units Earnings Call Summary
Earnings Call Date:Aug 19, 2025
(Q2-2025)
| % Change Since: |
Next Earnings Date:May 27, 2026
Earnings Call Sentiment Positive
The earnings call reflects a strong financial performance with significant FFO growth, full occupancy, and successful lease renewals. However, the slow transaction market and flat rent increases for some leases present challenges. Overall, the sentiment is positive due to the outweighing highlights.Positive Updates
Strong FFO Growth
FFO per unit increased by 8% year-over-year, reaching $0.33 for the 6-month period ended June 30, 2025. Total FFO increased to $6.8 million, up from $6.3 million for the same period last year.
Negative Updates
Limited Acquisition Activity
The transaction market is slow due to high interest rates, making it challenging to find accretive deals. The market slowdown may impact future growth opportunities.
Read all updates
Q2-2025 Updates
Positive
Negative
Strong FFO Growth
FFO per unit increased by 8% year-over-year, reaching $0.33 for the 6-month period ended June 30, 2025. Total FFO increased to $6.8 million, up from $6.3 million for the same period last year.
Read all positive updates
Company Guidance
During Canadian Net REIT's 2025 Second Quarter Earnings Conference Call, management highlighted several key metrics reflecting the company's robust financial performance and strategic direction. The REIT reported an 8% growth in FFO per unit for the year-to-date, driven by capital recycling and accretive reinvestments. The portfolio maintained a 100% occupancy rate, with a conservative payout ratio of 52%. Leasing activity was strong, with 97% of 2025 expiring leases renewed at an average rental spread of 6.8%, and early renewals for 2026 showing an 11.5% increase. The REIT completed a development at Sainte-Sophie with a 7% yield on cost, generating approximately $70,000 in annual NOI. The company maintained a debt-to-gross asset ratio of 54% excluding convertible debentures, and NOI increased by 4% to $10 million for the six-month period ending June 30, 2025. Despite a slower transactional market, the REIT remains focused on sourcing accretive opportunities, with expectations for potential rate cuts to stimulate future acquisitions.Canadian Net Real Estate Investment Trust Trust Units Financial Statement Overview
Summary
Income Statement
74
Positive
Balance Sheet
62
Positive
Cash Flow
56
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 27.98M | 26.12M | 26.55M | 24.73M | 18.95M |
| Gross Profit | 20.22M | 18.92M | 19.43M | 18.37M | 14.32M |
| EBITDA | 24.56M | 14.33M | 18.08M | 16.75M | 29.91M |
| Net Income | 16.67M | 7.10M | 18.22M | -6.49M | 25.09M |
Balance Sheet | |||||
| Total Assets | 318.72M | 301.32M | 308.35M | 303.06M | 278.17M |
| Cash, Cash Equivalents and Short-Term Investments | 955.11K | 1.57M | 987.72K | 2.20M | 1.78M |
| Total Debt | 173.72M | 167.51M | 174.71M | 180.10M | 144.71M |
| Total Liabilities | 179.55M | 171.88M | 178.86M | 184.37M | 148.35M |
| Stockholders Equity | 139.17M | 129.44M | 129.49M | 118.69M | 129.81M |
Cash Flow | |||||
| Free Cash Flow | 13.82M | 10.65M | 11.25M | 56.02M | 9.26M |
| Operating Cash Flow | 13.82M | 10.65M | 11.25M | 11.33M | 9.26M |
| Investing Cash Flow | -12.80M | 3.72M | 2.71M | -41.56M | -55.79M |
| Financing Cash Flow | -949.01K | -14.48M | -13.18M | 29.83M | 42.68M |
Canadian Net Real Estate Investment Trust Trust Units Technical Analysis
Positive
5.93
Price Trends
6.12
Positive
5.89
Positive
5.59
Positive
Market Momentum
0.10
Negative
64.81
Neutral
81.78
Negative
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 5.93 is below the 20-day moving average (MA) of 6.21, below the 50-day MA of 6.12, and above the 200-day MA of 5.59, indicating a bullish trend. The MACD of 0.10 indicates Negative momentum. The RSI at 64.81 is Neutral, neither overbought nor oversold. The STOCH value of 81.78 is Negative, 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
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | C$134.09M | 6.98 | 12.17% | 6.15% | 7.11% | 134.43% | |
70 Outperform | C$344.25M | 16.24 | 4.52% | 7.37% | 0.08% | -42.69% | |
69 Neutral | C$154.74M | 13.14 | 9.09% | ― | 70.08% | -20.96% | |
66 Neutral | C$241.86M | 8.72 | 8.37% | 8.65% | 0.74% | -24.11% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
51 Neutral | C$275.81M | -2.47 | -42.65% | 269.20% | -56.79% | -12.61% | |
48 Neutral | C$117.74M | -3.92 | -8.23% | 5.79% | 2.53% | -57.68% |
* Real Estate Sector Average
TSE:NET.UN
Canadian Net Real Estate Investment Trust Trust Units
6.51
1.63
33.40%
TSE:BTB.UN
BTB REIT
3.90
0.78
25.12%
TSE:ERE.UN
European Residential Real Estate ate Investment Trust
1.18
0.19
18.71%
TSE:FCD.UN
Firm Capital Property
6.55
1.04
18.92%
TSE:HMT
Halmont Properties
1.00
0.01
1.01%
TSE:TNT.UN
True NthCommercial
8.37
-0.45
-5.06%
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.