Artis Real Estate Investment (RFA) AI Stock Analysis

• Market Cap: C$1.39B
• Dividend Yield: 7.28%
• Average Volume (3M): 405.43K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: -20.06%
• EPS Growth: 19.27%
• Country: CA
• Employees: 143
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Diversified
• EPS (TTM): -0.38
• Shares Outstanding: 95,966,480
• 10 Day Avg. Volume: 290,415
• 30 Day Avg. Volume: 405,433
• PEG Ratio: 0.20
• Price to Book (P/B): 0.49
• Price to Sales (P/S): 2.57
• P/FCF Ratio: 9.70
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 63 Neutral
• Price Target: C$9.50 ▲(27.86% Upside)

The overall stock score of 63 reflects a mixed outlook. The most significant factor is the strong technical analysis, indicating bullish momentum. However, financial performance is challenged by declining revenue and profitability, partially offset by strong cash flow generation. The valuation is moderate, with a negative P/E ratio but a high dividend yield.

Positive Factors

Diversified commercial portfolio

A diversified mix across retail, office and industrial and operations in Canada and the U.S. reduces exposure to a single market cycle. That geographic and sector spread supports more stable rental cash flows, lowers portfolio volatility, and enables cross-market capital allocation and redevelopment opportunities over the medium term.

Strong free cash flow growth

Robust 38% TTM free cash flow growth indicates the business is generating increasing cash from operations and capex discipline. Sustained FCF growth provides durable capacity to fund distributions, deleverage, pursue accretive development, and absorb cyclical earnings weakness without immediate capital markets reliance.

Manageable leverage

A debt-to-equity around 0.74 suggests balanced leverage for a diversified REIT, preserving access to financing while limiting refinancing strain. This structural leverage level gives capacity to finance selective acquisitions or redevelopments and reduces likelihood of covenant stress under modest cyclical pressures.

Negative Factors

Declining revenue trend

Sustained negative revenue growth erodes the landlord income base that drives NOI and distributions. Over months this trend pressures leasing economics, forces more aggressive tenant retention or repricing, and can limit the cash available for maintenance, redevelopment, or deleveraging unless leasing demand and rent resets improve.

Negative profitability metrics

A deeply negative net margin and negative ROE signal the business is not currently converting revenue into sustainable profits. Persisting losses constrain retained earnings, weaken reinvestment capacity, and increase reliance on asset sales or external capital to support distributions and growth initiatives over the medium term.

Weak operating cash conversion ratio

An OCF-to-net-income ratio of 0.16 suggests reported earnings are poorly matched to cash generation, pointing to non-cash charges or timing mismatches. Low earnings quality increases forecasting risk, makes dividend sustainability harder to assess, and can complicate capital allocation decisions over the coming quarters.

Artis Real Estate Investment Business Overview & Revenue Model

Company Description

Artis is a diversified Canadian real estate investment trust investing in industrial and office properties in Canada and the United States. Since 2004, Artis has executed an aggressive but disciplined growth strategy, building a portfolio of commercial properties in select markets in Canada and the United States. As of September 30, 2020, Artis' commercial property comprises approximately 23.8 million square feet of leasable area.

How the Company Makes Money

Artis Real Estate Investment generates revenue primarily through the leasing of its commercial properties, which provides a steady stream of rental income. The company earns money from long-term leases with tenants in its retail, office, and industrial properties, typically structured to include base rent and additional recoverable expenses. Additionally, Artis may engage in property development and redevelopment projects, creating value through the enhancement of its property portfolio. The company also benefits from potential capital appreciation of its real estate holdings. Strategic partnerships with various stakeholders in the real estate sector, including property management firms and financial institutions, further support its revenue generation efforts. Overall, Artis Real Estate Investment Trust's revenue model is centered around a diversified portfolio of income-producing assets and strategic property management.

Artis Real Estate Investment Financial Statement Overview

Summary

Artis Real Estate Investment faces challenges with declining revenue and profitability, as evidenced by negative net profit margins and return on equity. However, the company maintains a stable balance sheet with manageable leverage and demonstrates strong cash flow generation, which could support future financial stability.

Income Statement

The income statement shows declining revenue with a negative growth rate of -2.67% TTM. Gross profit margin remains moderate at 52.10%, but the net profit margin is negative at -20.70%, indicating profitability challenges. EBIT and EBITDA margins are relatively low, suggesting operational inefficiencies.

Balance Sheet

The balance sheet reflects a moderate debt-to-equity ratio of 0.74, indicating manageable leverage. However, the return on equity is negative at -3.42%, highlighting profitability issues. The equity ratio is stable, suggesting a balanced asset structure.

Cash Flow

Cash flow analysis shows a strong free cash flow growth rate of 38.00% TTM, indicating improved cash generation. The operating cash flow to net income ratio is 0.16, suggesting efficient cash conversion despite negative net income. Free cash flow to net income ratio is high at 1.0, reflecting strong cash flow relative to earnings.

Breakdown
Income Statement
Total Revenue
Gross Profit
EBITDA
Net Income
Balance Sheet
Total Assets
Cash, Cash Equivalents and Short-Term Investments
Total Debt
Total Liabilities
Stockholders Equity
Cash Flow
Free Cash Flow
Operating Cash Flow
Investing Cash Flow
Financing Cash Flow

Artis Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.43
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:RFA, the sentiment is Positive. The current price of 7.43 is below the 20-day moving average (MA) of 9.32, below the 50-day MA of 7.75, and above the 200-day MA of 6.54, indicating a bullish trend. The MACD of 2.14 indicates Negative momentum. The RSI at 95.81 is Negative, neither overbought nor oversold. The STOCH value of 41.76 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:RFA.

Artis Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRT.UN	82 Outperform	C$4.02B	8.46	11.49%	5.74%	4.11%	35.99%
MRG.UN	76 Outperform	C$955.51M	7.81	6.37%	4.41%	3.83%	63.32%
FCR.UN	68 Neutral	C$4.30B	17.09	6.18%	4.71%	-0.83%	-28.93%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
RFA	63 Neutral	C$1.39B	-33.47	-4.93%	7.28%	-20.06%	19.27%
NXR.UN	62 Neutral	C$766.47M	9.39	7.32%	8.07%	0.41%	78.32%
D.UN	53 Neutral	$356.55M	-2.35	-14.98%	5.65%	-1.06%	-20.07%