tiprankstipranks
Trending News
More News >
PRO Real Estate Investment (TSE:PRV.UN)
TSX:PRV.UN
Canadian Market
Advertisement

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

Compare
98 Followers

Top Page

TSE:PRV.UN

PRO Real Estate Investment

(TSX:PRV.UN)

Rating:73Outperform
Price Target:
C$6.50
▲(13.04%Upside)
PRO Real Estate Investment Trust demonstrates strong financial performance with solid profitability and cash flow generation. The stock's valuation is attractive, with a favorable P/E ratio and a high dividend yield. Technical indicators suggest stable price trends. Recent corporate events, particularly the strategic expansion in the industrial sector, further enhance the stock's potential, though this is not weighted in the final score.
Positive Factors
Acquisition and Expansion
The recent announcement of the acquisition of a portfolio of six properties in Winnipeg will help support PRV's expanding industrial asset base, and establishes a longer-term partnership with Parkit, which could drive incremental growth opportunities moving forward.
Earnings and Growth
PROREIT delivered solid Q1 results, which were accompanied by stable occupancy and solid organic growth that is right on track with management's 5%+ outlook for 2025.
Lease Renewals and NOI Growth
PRO REIT's Q1/25 results highlighted solid operating performance with same-property NOI growth of 5%, and FFO per unit increases 2.2% on solid same-property NOI growth, with results above consensus.
Negative Factors
Cost of Capital and Trade Uncertainty
Cost of capital constraints and some caution on the industrial sector given trade/tariff uncertainty drive a neutral view.
Payout Ratio
The FFO payout ratio is elevated at 90% under the 2025 outlook, though improvement is forecasted by Q4/26.

PRO Real Estate Investment (PRV.UN) vs. iShares MSCI Canada ETF (EWC)

PRO Real Estate Investment Business Overview & Revenue Model

Company DescriptionPROREIT 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 MoneyPRO Real Estate Investment makes money primarily through three key revenue streams: rental income, property appreciation, and development profits. Rental income is generated from leasing commercial and residential properties to tenants, providing a steady and predictable cash flow. The company also benefits from property appreciation over time, where the value of its real estate assets increases, contributing to the overall financial health of the REIT. Additionally, PRO Real Estate Investment engages in property development and redevelopment projects, which can yield significant profits upon completion and sale or lease. Strategic partnerships with local developers and financial institutions further enhance its ability to source and manage lucrative real estate opportunities, optimizing returns for its investors.

PRO Real Estate Investment Earnings Call Summary

Earnings Call Date:May 14, 2025
(Q3-2024)
|
% Change Since: 13.86%|
Next Earnings Date:Aug 13, 2025
Earnings Call Sentiment Neutral
The call reflected a strategic emphasis on expanding the industrial property segment, achieving consistent same-property NOI growth, and maintaining financial stability through debt reduction. However, challenges such as decreased occupancy rates, flat financial metrics, and a difficult transaction market were significant concerns.
Q3-2024 Updates
Positive Updates
Strategic Shift to Industrial Properties
Continued progress towards becoming a pure-play industrial REIT with industrial segment accounting for 85.6% of GLA, up from 81.3% last year.
Same-Property NOI Growth
Achieved an 8.1% increase in same-property NOI for the third quarter, marking 15 consecutive quarters of growth with an average annual rate over 3%.
Successful Lease Renewals
Renewed or replaced 83.6% of GLA maturing in 2024 with a robust 50.4% positive spread for industrial properties.
Financial Prudence
Reduced total debt by $18 million compared to last year, maintaining a debt to gross book value target of approximately 50%.
Negative Updates
Decreased Portfolio Occupancy
Occupancy rate decreased to 97.2% from 98.2% last year, mainly due to transitional vacancies in three industrial spaces.
Flat Financial Performance
Property revenue remained flat at $24 million compared to last year, and FFO was relatively flat year-over-year.
Higher AFFO Payout Ratio
Basic AFFO payout ratio increased to 97.7% from 96.9% last year, due to increased stabilized leasing costs.
Challenging Transaction Market
The transaction market remains choppy with uncertainty in interest rates, affecting acquisition and disposition activities.
Company Guidance
During the Q3 2024 earnings call for PROREIT, management provided extensive guidance and performance metrics. The company reported a strategic focus on becoming a pure-play industrial REIT, having increased their industrial segment to 85.6% of their gross leasable area (GLA) from 81.3% a year ago. They achieved an 8.1% increase in same-property net operating income (NOI) and maintained a robust portfolio occupancy rate of 97.2%, despite a slight decrease from 98.2% the previous year. PROREIT completed the sale of two office properties and acquired an industrial property near Montreal International Airport, resulting in a total of 116 properties in their portfolio, down from 126 last year. Financial results showed property revenue at $24.0 million and funds from operations (FFO) at $6.5 million for the quarter. The company maintained a debt-to-gross book value ratio of approximately 50%, with a weighted average interest rate on mortgage debt at 3.87%. They also reported a basic adjusted funds from operations (AFFO) payout ratio of 97.7%. Looking forward, PROREIT aims to achieve 90% industrial base rent and continues to explore capital recycling opportunities to maintain their financial health and strategic growth.

PRO Real Estate Investment Financial Statement Overview

Summary
The company's financial performance is strong, with high margins and effective cash management. A stable financial position is maintained with a balanced capital structure and positive growth prospects.
Income Statement
82
Very Positive
PRO Real Estate Investment has demonstrated strong financial performance with a high gross profit margin of 59.0% in TTM, indicating efficient cost management. The net profit margin improved significantly to 27.1% in TTM, indicating enhanced profitability. Revenue growth has been stable, with a minor increase from previous periods. EBIT and EBITDA margins are strong at 51.8% and 55.0% respectively, showcasing robust operational efficiency.
Balance Sheet
75
Positive
The company maintains a stable financial position with a debt-to-equity ratio of 1.05, indicating a balanced capital structure. Return on equity stands at 5.7% for TTM, reflecting moderate profitability for shareholders. The equity ratio of 47.1% suggests a healthy proportion of equity financing, providing financial stability and reducing risk.
Cash Flow
78
Positive
Cash flow analysis shows a strong free cash flow to net income ratio of 1.04 in TTM, indicating good cash generation relative to profits. The operating cash flow to net income ratio is robust at 1.07, highlighting effective cash management. Free cash flow growth rate is negative compared to the last annual period, but overall cash flow remains strong, supporting ongoing operations and investments.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue99.21M99.89M97.21M77.67M69.81M
Gross Profit58.52M57.94M57.74M46.28M40.53M
EBITDA24.95M47.93M51.99M36.55M40.45M
Net Income2.38M25.91M136.75M81.84M1.86M
Balance Sheet
Total Assets997.76M1.03B1.04B989.96M634.48M
Cash, Cash Equivalents and Short-Term Investments9.07M13.26M7.53M5.94M6.26M
Total Debt498.57M515.26M514.33M522.78M364.73M
Total Liabilities533.12M546.56M548.24M560.27M391.28M
Stockholders Equity464.65M488.03M487.69M429.69M243.20M
Cash Flow
Free Cash Flow29.87M30.84M27.80M29.00M23.08M
Operating Cash Flow31.10M31.70M28.23M29.28M23.41M
Investing Cash Flow9.89M4.34M11.93M-281.61M-5.64M
Financing Cash Flow-45.17M-30.32M-38.58M252.01M-16.81M

PRO Real Estate Investment Technical Analysis

Technical Analysis Sentiment
Positive
Last Price5.75
Price Trends
50DMA
5.59
Positive
100DMA
5.23
Positive
200DMA
5.20
Positive
Market Momentum
MACD
0.06
Positive
RSI
54.65
Neutral
STOCH
38.33
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 5.75 is above the 20-day moving average (MA) of 5.73, above the 50-day MA of 5.59, and above the 200-day MA of 5.20, indicating a bullish trend. The MACD of 0.06 indicates Positive momentum. The RSI at 54.65 is Neutral, neither overbought nor oversold. The STOCH value of 38.33 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

Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
C$320.41M8.228.03%8.43%3.34%10.20%
78
Outperform
C$222.66M7.849.43%8.82%5.06%43.11%
78
Outperform
C$114.11M7.1111.99%6.26%-0.90%9.33%
73
Outperform
C$369.65M12.985.68%7.72%-1.07%684.07%
63
Neutral
$6.75B14.42-1.87%7.29%3.96%-36.04%
56
Neutral
$71.17M-16.65%0.73%-2.12%-287.56%
52
Neutral
C$368.03M-3.72%4.37%-2.90%68.88%
* Real Estate Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
TSE:PRV.UN
PRO Real Estate Investment
5.76
1.13
24.41%
TSE:BTB.UN
BTB REIT
3.64
0.74
25.52%
TSE:FCD.UN
Firm Capital Property
6.07
1.12
22.63%
TSE:NET.UN
Canadian Net Real Estate Investment Trust Trust Units
5.50
0.45
8.91%
TSE:MR.UN
Melcor REIT
5.49
2.75
100.36%
TSE:MRT.UN
Morguard Real Estate ate
5.61
0.49
9.57%

PRO Real Estate Investment Corporate Events

Financial Disclosures
PROREIT Schedules Q2 2025 Financial Results Release and Conference Call
Neutral
Jul 30, 2025

PROREIT announced that it will release its second quarter financial results for 2025 on August 13, after market close, with a conference call scheduled for August 14 to discuss the results. This announcement is significant for stakeholders as it provides insights into the company’s financial health and operational performance, potentially impacting investor confidence and market positioning.

The most recent analyst rating on ($TSE:PRV.UN) stock is a Buy with a C$6.50 price target. To see the full list of analyst forecasts on PRO Real Estate Investment stock, see the TSE:PRV.UN Stock Forecast page.

DividendsBusiness Operations and Strategy
PROREIT Announces July Distribution and Releases 2024 Sustainability Report
Neutral
Jul 23, 2025

PRO Real Estate Investment Trust announced a cash distribution of $0.0375 per trust unit for July 2025, payable on August 15, 2025. Additionally, the company published its 2024 Sustainability Report, detailing its ESG priorities and progress, including the initial reporting of greenhouse gas emissions and the launch of a tenant satisfaction survey. This report aligns with recognized standards such as SASB and TCFD, highlighting PROREIT’s commitment to sustainability and governance.

The most recent analyst rating on ($TSE:PRV.UN) stock is a Buy with a C$6.25 price target. To see the full list of analyst forecasts on PRO Real Estate Investment stock, see the TSE:PRV.UN Stock Forecast page.

Private Placements and FinancingM&A TransactionsBusiness Operations and Strategy
PROREIT Expands Industrial Portfolio with $96.5 Million Winnipeg Acquisition
Positive
Jun 27, 2025

PRO Real Estate Investment Trust has completed the acquisition of six industrial properties in Winnipeg for $96.5 million, enhancing its portfolio with 678,177 square feet of high-quality industrial space. This strategic acquisition, financed through a mix of cash and equity, strengthens PROREIT’s market position and includes an investor rights agreement with Parkit Enterprise Inc., which now holds a 9.6% stake in PROREIT and has the right to nominate a trustee to its board.

The most recent analyst rating on ($TSE:PRV.UN) stock is a Buy with a C$6.25 price target. To see the full list of analyst forecasts on PRO Real Estate Investment stock, see the TSE:PRV.UN Stock Forecast page.

Dividends
PROREIT Announces June 2025 Cash Distribution
Positive
Jun 19, 2025

PRO Real Estate Investment Trust announced a cash distribution of $0.0375 per trust unit for June 2025, payable on July 15, 2025, to unitholders of record as of June 30, 2025. This announcement reflects PROREIT’s ongoing commitment to providing returns to its investors, reinforcing its position in the Canadian real estate market, particularly in secondary industrial markets.

The most recent analyst rating on ($TSE:PRV.UN) stock is a Buy with a C$6.25 price target. To see the full list of analyst forecasts on PRO Real Estate Investment stock, see the TSE:PRV.UN Stock Forecast page.

Executive/Board ChangesShareholder Meetings
PROREIT Announces Trustee Elections and Expiry of Rights Plan
Neutral
Jun 3, 2025

PRO Real Estate Investment Trust announced the results of its annual unitholders meeting, where all nine trustee nominees were elected by a substantial majority. The external auditor was also reappointed. Additionally, the REIT’s unitholder rights agreement expired following the meeting, as it was not submitted for reconfirmation. This expiration may impact the company’s governance structure and future strategic decisions.

The most recent analyst rating on ($TSE:PRV.UN) stock is a Buy with a C$6.25 price target. To see the full list of analyst forecasts on PRO Real Estate Investment stock, see the TSE:PRV.UN Stock Forecast page.

DividendsFinancial Disclosures
PROREIT Declares May 2025 Cash Distribution
Positive
May 21, 2025

PRO Real Estate Investment Trust announced a cash distribution of $0.0375 per trust unit for May 2025, payable on June 16, 2025, to unitholders of record as of May 30, 2025. This announcement reflects the company’s ongoing commitment to providing consistent returns to its investors and highlights its stable financial performance in the Canadian commercial real estate market.

The most recent analyst rating on ($TSE:PRV.UN) stock is a Buy with a C$6.25 price target. To see the full list of analyst forecasts on PRO Real Estate Investment stock, see the TSE:PRV.UN Stock Forecast page.

M&A TransactionsBusiness Operations and StrategyFinancial Disclosures
PROREIT Reports Q1 2025 Results and Strategic Expansion in Industrial Sector
Positive
May 14, 2025

PROREIT reported a 0.3% increase in net operating income for Q1 2025, despite owning fewer properties, and a 5.0% rise in same property NOI. The company renewed significant portions of its gross leasable area at favorable spreads, maintaining a high occupancy rate of 97.7%. PROREIT announced the acquisition of six industrial properties in Winnipeg, enhancing its industrial platform and forming a strategic relationship with Parkit Enterprise Inc. The company also sold non-core properties to reallocate capital to more promising opportunities, while maintaining a disciplined approach to debt management. With a strong presence in the Atlantic region, PROREIT is well-positioned for sustainable growth by targeting small- and mid-bay properties in secondary markets.

The most recent analyst rating on ($TSE:PRV.UN) stock is a Buy with a C$6.25 price target. To see the full list of analyst forecasts on PRO Real Estate Investment stock, see the TSE:PRV.UN Stock Forecast page.

M&A TransactionsBusiness Operations and Strategy
PROREIT Expands Industrial Portfolio with $96.5 Million Acquisition in Winnipeg
Positive
May 13, 2025

PROREIT has announced an agreement to acquire six industrial properties in Winnipeg for $96.5 million, significantly increasing its industrial footprint and exposure in the region. This acquisition is expected to be accretive to adjusted funds from operations per unit and establishes a strategic relationship with Parkit Enterprise Inc., which will hold a 9.6% ownership interest in PROREIT post-transaction. The move enhances PROREIT’s operational capabilities in Winnipeg and aligns with its growth strategy, while Parkit’s involvement brings potential for future collaborative growth opportunities.

The most recent analyst rating on ($TSE:PRV.UN) stock is a Buy with a C$6.25 price target. To see the full list of analyst forecasts on PRO Real Estate Investment stock, see the TSE:PRV.UN Stock Forecast page.

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.Date of analysis: Jul 29, 2025