True NthCommercial (TNT.UN) AI Stock Analysis

• Market Cap: C$131.12M
• Dividend Yield: 7.36%
• Average Volume (3M): 11.48K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.64
• Revenue Growth: -4.04%
• EPS Growth: 33.21%
• Country: CA
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 55
• Industry: REIT - Office
• EPS (TTM): 0.04
• Shares Outstanding: 13,979,205
• 10 Day Avg. Volume: 12,232
• 30 Day Avg. Volume: 11,476
• PEG Ratio: 0.27
• Price to Book (P/B): 0.31
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.85
• 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$9.88
• Price Target Upside: 5.33% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2

• Rating: 65 Neutral
• Price Target: C$10.00 ▲(6.61%Upside)

True NthCommercial's overall stock score reflects a combination of financial challenges and stable cash flows. The slightly positive technical indicators and high dividend yield offer some optimism, but the high leverage and negative profitability weigh down the score.

Positive Factors

Distribution Yield

Distribution reinstated at an annual rate of $0.69 per unit, equating to a yield of 6.8%.

Financial Performance

Successful progress on refinancing debt maturities, with recent financings completed at rates under 5.0%, reducing the anticipated impact of debt refinancing.

Leasing Activity

Government tenants remain a key focus, with successful lease renewals and new leases signed, including significant agreements with federal government tenants.

Negative Factors

Interest Expense

Office property fundamentals remain challenging and refinancing debt at higher interest rates will likely lead to greater interest expense.

Market Valuation

True North currently trades at a 13.2% premium to NAV estimate, compared to its Canadian office REIT peers, which trade at a 13.3% discount to NAV.

Occupancy Challenges

Same-property NOI dropped 9.6% in Alberta due to a significant decrease in occupancy from a tenant downsizing space.

True NthCommercial Business Overview & Revenue Model

Company Description

True NthCommercial (TNT.UN) is a Canadian real estate investment trust (REIT) that focuses on investment in commercial properties. The company primarily operates within the commercial real estate sector, targeting assets such as office buildings, industrial properties, and retail spaces. True NthCommercial is dedicated to acquiring, managing, and developing a diverse portfolio of commercial properties to generate stable and growing income for its investors.

How the Company Makes Money

True NthCommercial makes money through the acquisition, leasing, and management of commercial real estate properties. The company's primary revenue stream comes from rental income generated by leasing office spaces, industrial facilities, and retail locations to various tenants. Additionally, True NthCommercial may engage in strategic property sales when market conditions are favorable, which can provide capital gains. The company might also benefit from partnerships or joint ventures with other real estate investors and developers, enhancing its ability to acquire high-quality assets and optimize property management. Furthermore, True NthCommercial may increase its earnings through property development and redevelopment projects, which can lead to higher rental rates and property values.

True NthCommercial Financial Statement Overview

Summary

True NthCommercial faces financial challenges characterized by declining revenue, profitability issues, and high leverage. While cash flows remain relatively stable, the company needs to address its debt levels and improve operational efficiency to enhance financial health and stability.

Income Statement

The income statement shows a declining revenue trend with a significant drop from 2022 to 2024. Gross profit margin is deteriorating, and the net profit margin is negative, indicating losses over the recent periods. The EBIT and EBITDA margins have also been volatile with negative figures recently, reflecting operational challenges.

Balance Sheet

The balance sheet reveals a high debt-to-equity ratio, indicating significant leverage which poses a financial risk. However, the equity ratio remains stable, suggesting some level of balance in asset financing. Return on equity is negative due to net losses, highlighting a lack of profitability.

Cash Flow

Cash flow analysis shows stable operating cash flow, but free cash flow growth has been inconsistent. The operating cash flow to net income ratio is high due to negative net income, suggesting cash generation is better than reported earnings. However, the free cash flow to net income ratio also indicates reliance on cash flow rather than profitability.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	125.53M	126.91M	132.20M	143.57M	138.52M	139.43M
Gross Profit	63.90M	65.82M	72.55M	86.48M	82.63M	83.74M
EBITDA	6.09M	10.86M	-7.80M	81.87M	78.35M	78.30M
Net Income	-25.53M	-20.95M	-40.62M	-18.51M	29.14M	10.55M
Balance Sheet
Total Assets	1.24B	1.24B	1.32B	1.45B	1.42B	1.40B
Cash, Cash Equivalents and Short-Term Investments	10.18M	12.33M	8.95M	9.50M	5.48M	24.58M
Total Debt	764.21M	767.74M	820.99M	861.09M	820.40M	812.49M
Total Liabilities	821.79M	824.23M	870.87M	928.18M	881.11M	879.67M
Stockholders Equity	414.78M	416.00M	452.80M	522.14M	540.07M	525.21M
Cash Flow
Free Cash Flow	69.77M	75.67M	73.94M	103.27M	86.69M	91.38M
Operating Cash Flow	69.77M	75.67M	73.94M	103.27M	77.31M	91.38M
Investing Cash Flow	28.06M	29.57M	32.45M	-72.80M	-31.74M	-19.39M
Financing Cash Flow	-95.85M	-101.85M	-106.94M	-26.45M	-64.68M	-53.08M

True NthCommercial Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 9.38
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TNT.UN, the sentiment is Positive. The current price of 9.38 is above the 20-day moving average (MA) of 9.33, above the 50-day MA of 9.17, and below the 200-day MA of 9.91, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 54.87 is Neutral, neither overbought nor oversold. The STOCH value of 35.04 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:TNT.UN.

True NthCommercial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AP.UN	67 Neutral	$2.45B	―	-7.48%	10.15%	5.28%	-0.79%
TNT.UN	65 Neutral	C$131.12M	―	-5.89%	7.36%	-4.04%	33.21%
Sector *	59 Neutral	C$1.24B	-0.03	-8.19%	5.00%	10.83%	-22.67%
D.UN	58 Neutral	C$305.75M	―	-13.41%	6.21%	3.69%	-168.76%
RPR.UN	53 Neutral	C$30.05M	―	-162.05%	1.79%	0.66%	-178.71%
INO.UN	50 Neutral	C$30.24M	―	-25.21%	7.55%	-22.78%	-19.14%