True NthCommercial (TNT.UN) AI Stock Analysis

• Market Cap: C$123.01M
• Dividend Yield: 5.79%
• Average Volume (3M): 18.27K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.17
• Revenue Growth: -5.17%
• EPS Growth: -187.42%
• Country: CA
• Employees: N/A
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Office
• EPS (TTM): -0.36
• Shares Outstanding: 14,058,256
• 10 Day Avg. Volume: 23,064
• 30 Day Avg. Volume: 18,270
• PEG Ratio: 0.18
• Price to Book (P/B): 0.36
• Price to Sales (P/S): 1.18
• P/FCF Ratio: 1.98
• 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$10.65
• Price Target Upside: 21.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: C$9.00 ▲(2.86% Upside)

The score is held back primarily by recurring net losses and a leveraged balance sheet, despite steady positive operating cash flow. Technicals are neutral with limited momentum, while valuation is modestly supported by a ~5.76% dividend yield but offset by the negative P/E driven by losses.

Positive Factors

Consistent Operating Cash Flow

Sustained positive operating cash flow indicates the core rental business generates real cash, supporting ongoing operations, maintenance and distributions without relying solely on capital markets. Over months, this underpins liquidity and reduces immediate refinancing pressure despite accounting losses.

TTM Revenue Rebound

A ~12% TTM revenue rebound signals improving leasing or rent realizations, which can drive higher property-level EBITDA and margin recovery. If sustained, revenue growth strengthens cash generation and supports deleveraging, asset reinvestment and long-term earnings normalization.

Portfolio Diversification

Diversification across office, retail and industrial reduces reliance on a single sector and smooths cash flows across cycles. Structurally, exposure to industrial and retail can capture secular demand while office holdings can be managed or repositioned, enhancing long-term resilience of rent streams.

Negative Factors

Recurring Net Losses

Persistent net losses since 2022 mean accounting performance consistently fails to cover non-operating costs, eroding retained earnings and limiting reinvestment. Over months this impairs ability to build reserves, maintain dividend reliability without external funding, and weakens investor confidence.

Meaningful Leverage

Leverage near 1.5–1.9x equity makes the REIT sensitive to interest rates and refinancing cycles. Structurally higher debt raises interest expense, constrains capital allocation for acquisitions or capex and increases solvency risk if cash flows weaken, limiting strategic flexibility over months.

Volatile Free Cash Flow & Weak Coverage

Volatile FCF and sub-1.0 coverage ratios indicate operating cash generation may be insufficient for consistent debt service and reinvestment. Over a 2–6 month horizon this constrains the company's buffer against shocks, raising the likelihood of asset sales, additional leverage or dilutive financing.

True NthCommercial Business Overview & Revenue Model

Company Description

The REIT is an unincorporated, open-ended real estate investment trust established under the laws of the Province of Ontario. The REIT currently owns and operates a portfolio of 48 commercial properties consisting of approximately 4.8 million square feet in urban and select strategic secondary markets across Canada focusing on long term leases with government and credit rated tenants. The REIT is focused on growing its portfolio principally through acquisitions across Canada and such other jurisdictions where opportunities exist.

How the Company Makes Money

True Nth Commercial generates revenue primarily through leasing income derived from its portfolio of properties. The company enters into long-term leases with tenants, which provide a consistent cash flow. Additionally, TNT.UN may earn revenue through property management fees, maintenance services, and potential profit-sharing agreements with tenants. Strategic partnerships with local and national firms enhance its market reach and operational efficiency, contributing to its overall earnings. The company also benefits from capital appreciation of its properties, which can lead to increased asset value and, consequently, higher returns for its investors.

True NthCommercial Financial Statement Overview

Summary

Positive operating cash flow and positive free cash flow support operations, and TTM revenue rebounded (~+12%). However, profitability is the main drag: recurring net losses since 2022 with negative net margins, alongside meaningful leverage (debt ~1.5–1.9x equity; ROE negative since 2022).

Income Statement

Revenue has been choppy: down in 2022–2024, then up in TTM (Trailing-Twelve-Months) (~+12%). Profitability is the bigger issue—net results swung from profits in 2020–2021 to recurring losses from 2022 through TTM, with net margins staying negative. Gross margins remain solid for an office REIT, but the continued net losses suggest elevated costs, charges, or financing/other headwinds that are overwhelming property-level profitability.

Balance Sheet

Leverage is meaningful for the sector, with debt running around ~1.5–1.9x equity across the period (TTM near the high end). Equity remains substantial, but returns on equity have been negative since 2022, reflecting that the current capital structure is not translating into bottom-line profitability. Debt has trended slightly down from 2022 to TTM, which is a mild positive, but balance-sheet risk remains tied to high leverage in a rate-sensitive office REIT backdrop.

Cash Flow

Operating cash flow has been consistently positive each year, including TTM (Trailing-Twelve-Months), which supports ongoing operations despite net losses. Free cash flow is also positive, but growth is volatile—strong in 2020 and 2022, weaker in 2023–2024, and sharply down in TTM. Cash flow coverage versus earnings/debt service appears mixed (coverage ratios generally below 1.0 after 2020), indicating cash generation is real but not particularly abundant relative to obligations.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	121.47M	126.91M	132.20M	143.57M	138.52M	139.43M
Gross Profit	59.29M	65.82M	72.55M	86.48M	82.63M	83.74M
EBITDA	1.10M	10.86M	-7.80M	81.87M	78.35M	78.30M
Net Income	-31.74M	-20.95M	-40.62M	-18.51M	29.14M	10.55M
Balance Sheet
Total Assets	1.20B	1.24B	1.32B	1.45B	1.42B	1.40B
Cash, Cash Equivalents and Short-Term Investments	9.07M	12.33M	8.95M	9.50M	5.48M	24.58M
Total Debt	746.79M	767.74M	820.99M	861.09M	820.40M	812.49M
Total Liabilities	809.62M	824.23M	870.87M	928.18M	881.11M	879.67M
Stockholders Equity	392.82M	416.00M	452.80M	522.14M	540.07M	525.21M
Cash Flow
Free Cash Flow	78.18M	75.67M	73.94M	103.27M	86.69M	91.38M
Operating Cash Flow	78.18M	75.67M	73.94M	103.27M	77.31M	91.38M
Investing Cash Flow	-15.84M	29.57M	32.45M	-72.80M	-31.74M	-19.39M
Financing Cash Flow	-62.94M	-101.85M	-106.94M	-26.45M	-64.68M	-53.08M

True NthCommercial Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 8.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:TNT.UN, the sentiment is Negative. The current price of 8.75 is below the 20-day moving average (MA) of 8.89, below the 50-day MA of 8.86, and below the 200-day MA of 8.87, indicating a bearish trend. The MACD of -0.02 indicates Positive momentum. The RSI at 37.31 is Neutral, neither overbought nor oversold. The STOCH value of -5.10 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:TNT.UN.

True NthCommercial Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FCR.UN	68 Neutral	C$4.20B	17.05	6.18%	4.71%	-0.83%	-28.93%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
AP.UN	55 Neutral	C$1.96B	-3.42	-10.26%	13.67%	1.86%	1.84%
TNT.UN	53 Neutral	C$123.01M	-4.00	-7.68%	5.79%	-5.17%	-187.42%
RPR.UN	53 Neutral	C$18.46M	-0.13	-141.77%	―	-6.21%	65.52%
D.UN	53 Neutral	C$356.93M	-2.35	-14.98%	5.65%	-1.06%	-20.07%
HR.UN	52 Neutral	C$2.84B	-6.88	-8.74%	7.05%	-0.83%	-56.21%