PRO Real Estate Investment (PRV.UN) AI Stock Analysis

• Market Cap: C$303.17M
• Dividend Yield: 9%
• Average Volume (3M): 63.51K
• Price to Earnings (P/E): 127.6
• Beta (1Y): 0.93
• Revenue Growth: -0.68%
• EPS Growth: -90.87%
• Country: CA
• Employees: 83
• Sector: Real Estate
• Sector Strength: 75
• Industry: REIT - Diversified
• EPS (TTM): 0.04
• Shares Outstanding: 59,437,134
• 10 Day Avg. Volume: 36,093
• 30 Day Avg. Volume: 63,508
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• 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$5.75
• Price Target Upside: 15.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

PRO Real Estate Investment's overall score reflects a strong cash flow position and positive corporate events that bolster financial stability. However, high leverage, inconsistent revenue growth, and a high P/E ratio are significant concerns. Technical indicators suggest caution due to potential overvaluation and limited momentum.

Positive Factors

Distribution Yield

The REIT offers an attractive distribution yield of 9.1%, with expectations for improvement in the payout ratio over time.

Lease Renewals

The REIT expects to generate 5%+ SP NOI growth in both 2025 and 2026, with strong progress in lease renewals providing some insulation from potential tariff uncertainty.

Portfolio Growth

PROREIT is viewed as a well-managed REIT offering investors exposure to a growing portfolio of light-industrial properties and a strong concentration in Atlantic Canada.

Negative Factors

Cost of Capital

Cost of capital constraints in the current environment and caution on industrial more broadly due to tariff and trade uncertainty drive a neutral rating.

FFO Performance

FFO per unit down 10% in Q4/24, with the pace of organic growth having slowed, and results slightly below expectations.

Valuation Discount

PRO currently trades at an implied cap rate of 8.1%, or a 33.6% discount to our NAV estimate, compared to the weighted-average discount of 24.6% for its Canadian industrial REIT peers.

PRO Real Estate Investment Business Overview & Revenue Model

Company Description

PROREIT is an unincorporated open-ended real estate investment trust owning a diversified portfolio of 92 commercial properties across Canada representing over 4.5 million square feet of GLA. Established in March 2013, PROREIT is mainly focused on strong primary and secondary markets in Québec, Atlantic Canada and Ontario, with selective exposure in Western Canada.

How the Company Makes Money

PRO Real Estate Investment makes money primarily through the acquisition and management of real estate properties that generate rental income. The company's revenue streams include leasing commercial spaces to businesses, renting residential units to tenants, and potentially earning through the appreciation of property values. Additionally, the company may engage in property development projects to create new income-generating assets. Strategic partnerships with property management firms and real estate developers can enhance operational efficiency and expand its portfolio, contributing to its overall earnings.

PRO Real Estate Investment Financial Statement Overview

Summary

PRO Real Estate Investment shows a mixed financial profile with strong cash flow metrics providing stability despite challenges in revenue consistency and high leverage. The balance sheet's high debt-to-equity ratio poses risks, but a solid equity ratio and robust cash flow generation offset some concerns.

Income Statement

The company shows a stable gross profit margin, indicating efficient cost management, but a low net profit margin highlights challenges in controlling additional expenses. Revenue growth has been inconsistent, with recent declines posing a risk to future profitability. The EBIT margin is unavailable, affecting the ability to gauge core operational efficiency, but the EBITDA margin remains healthy, reflecting good cash generation capability.

Balance Sheet

The debt-to-equity ratio is high, suggesting significant leverage, which could pose risks in adverse economic conditions. However, the company maintains a solid equity ratio, indicating a strong asset base relative to liabilities. Return on equity shows potential for shareholder value creation, although it has been inconsistent over the years.

Cash Flow

The company demonstrates strong free cash flow generation, with a positive growth trend, reinforcing financial flexibility. Operating cash flow to net income ratio indicates efficient conversion of earnings into cash, while the free cash flow to net income ratio suggests good cash retention, despite occasional fluctuations in net income.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
99.21M	99.89M	97.21M	77.67M	69.81M
	Gross Profit
58.52M	57.94M	57.74M	46.28M	40.53M
	EBIT
0.00	51.19M	51.20M	35.82M	39.77M
	EBITDA
24.95M	47.93M	51.99M	36.55M	40.45M
	Net Income Common Stockholders
2.38M	25.91M	136.75M	81.84M	1.86M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
9.07M	13.26M	7.53M	5.94M	6.26M
	Total Assets
997.76M	1.03B	1.04B	989.96M	634.48M
	Total Debt
498.57M	515.26M	514.33M	522.78M	364.73M
	Net Debt
489.50M	502.00M	506.79M	516.84M	358.48M
	Total Liabilities
533.12M	546.56M	548.24M	560.27M	391.28M
	Stockholders Equity
464.65M	488.03M	487.69M	429.69M	243.20M
Cash Flow		Free Cash Flow
29.87M	30.84M	27.80M	29.00M	23.08M
	Operating Cash Flow
31.10M	31.70M	28.23M	29.28M	23.41M
	Investing Cash Flow
9.89M	4.34M	11.93M	-281.61M	-5.64M
	Financing Cash Flow
-45.17M	-30.32M	-38.58M	252.01M	-16.81M

PRO Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.00
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PRV.UN, the sentiment is Positive. The current price of 5 is above the 20-day moving average (MA) of 4.84, above the 50-day MA of 4.95, and below the 200-day MA of 5.15, indicating a neutral trend. The MACD of 0.03 indicates Negative momentum. The RSI at 55.72 is Neutral, neither overbought nor oversold. The STOCH value of 72.03 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PRV.UN.

PRO Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SRU.UN	76 Outperform	C$4.34B	19.17	4.50%	7.26%	9.46%	-42.77%
CAR.UN	68 Neutral	C$7.04B	25.05	3.20%	3.43%	4.45%	―
Sector *	60 Neutral	$2.79B	11.32	0.33%	8508.24%	6.24%	-14.03%
PRV.UN	59 Neutral	C$303.17M	127.55	0.50%	9.00%	-0.68%	-90.87%
HR.UN	56 Neutral	C$2.62B	―	-2.29%	6.02%	-6.92%	-296.31%

PRO Real Estate Investment Corporate Events

PROREIT Schedules Q1 2025 Financial Results Release and Conference Call

PRO Real Estate Investment Trust (PROREIT) has announced the release date for its first quarter 2025 financial results, which will be available on May 14, 2025, after market close. The following day, a conference call will be held to discuss the results, inviting financial analysts to participate actively, while media and other interested parties can join via a live audio webcast. This announcement reflects PROREIT’s commitment to transparency and engagement with stakeholders, potentially impacting investor confidence and market positioning.

Spark’s Take on TSE:PRV.UN Stock

According to Spark, TipRanks’ AI Analyst, TSE:PRV.UN is a Neutral.

PRO Real Estate Investment’s strong cash flow and strategic initiatives are key strengths. However, challenges such as inconsistent revenue growth, high leverage, and a high P/E ratio pose significant risks. While corporate events and a high dividend yield provide some positive offset, technical indicators suggest caution with potential bearish trends.

To see Spark’s full report on TSE:PRV.UN stock, click here.

PROREIT Announces April 2025 Cash Distribution

PRO Real Estate Investment Trust announced a cash distribution of $0.0375 per trust unit for April 2025, payable on May 15, 2025, to unitholders of record as of April 30, 2025. This announcement reflects PROREIT’s ongoing commitment to providing returns to its investors and may enhance its attractiveness to stakeholders by demonstrating stable financial performance.

Spark’s Take on TSE:PRV.UN Stock

According to Spark, TipRanks’ AI Analyst, TSE:PRV.UN is a Neutral.

PRO Real Estate Investment shows resilience in cash flow and strategic growth, which are key strengths. However, challenges in revenue consistency, high leverage, and a high P/E ratio pose risks. The attractive dividend yield and positive corporate events offer some mitigation, but technical indicators suggest caution with potential bearish trends.

To see Spark’s full report on TSE:PRV.UN stock, click here.

PROREIT Announces March 2025 Cash Distribution

PRO Real Estate Investment Trust announced a cash distribution of $0.0375 per trust unit for March 2025, payable on April 15, 2025, to unitholders of record as of March 31, 2025. This announcement reflects PROREIT’s ongoing commitment to providing returns to its investors and may enhance its attractiveness to stakeholders in the competitive real estate investment market.

PROREIT Reports Stable Income and Strategic Growth in Fiscal 2024

PROREIT reported stable net operating income for the fourth quarter and fiscal year 2024, despite owning fewer properties. The company achieved a 7.7% year-over-year growth in Same Property NOI, driven by strong leasing performance and rent escalations. PROREIT’s strategic property sales and acquisitions, along with effective debt management, highlight its ability to navigate a high-interest-rate environment, maintaining a high occupancy rate of 97.8% and reducing total debt by $16.7 million.

PROREIT Declares February 2025 Distribution to Unitholders

PRO Real Estate Investment Trust announced a cash distribution of $0.0375 per trust unit for February 2025, equating to an annualized rate of $0.45 per unit. This move underscores PROREIT’s ongoing commitment to providing consistent returns to its unitholders and reinforces its stable financial position in the Canadian real estate sector.

PROREIT Sets Release Date for 2024 Financial Results and Conference Call

PROREIT has announced the release date for its 2024 fiscal year and fourth-quarter financial results, which will be available on March 12, 2025, after markets close. The following day, the management team will host a conference call to discuss the results with financial analysts, with media and interested individuals invited to listen via a live audio webcast. This release is significant as it provides stakeholders with insights into PROREIT’s financial health and operational performance, potentially impacting investment decisions and market positioning.