TSX:CHP.UN

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Choice Properties Real Estate Investment Trust

Executive Summary

Choice Properties, Canada's preeminent diversified real estate investment trust, is the owner, manager and developer of a high-quality portfolio comprising 724 properties totaling 65.6million square feet of gross leasable area. More Details


Snowflake Analysis

Average dividend payer and fair value.

Share Price & News

How has Choice Properties Real Estate Investment Trust's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CHP.UN has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.7%

CHP.UN

-0.2%

CA REITs

-1.2%

CA Market


1 Year Return

-9.9%

CHP.UN

-25.2%

CA REITs

-5.5%

CA Market

Return vs Industry: CHP.UN exceeded the Canadian REITs industry which returned -25.2% over the past year.

Return vs Market: CHP.UN underperformed the Canadian Market which returned -5.5% over the past year.


Shareholder returns

CHP.UNIndustryMarket
7 Day-1.7%-0.2%-1.2%
30 Day0.7%-0.1%0.4%
90 Day-3.3%-3.4%-0.3%
1 Year-4.7%-9.9%-21.0%-25.2%-2.1%-5.5%
3 Year7.8%-8.9%1.4%-13.8%3.9%-6.2%
5 Year37.2%4.4%23.0%-7.1%32.3%12.0%

Price Volatility Vs. Market

How volatile is Choice Properties Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Choice Properties Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

37.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CHP.UN (CA$12.36) is trading below our estimate of fair value (CA$19.69)

Significantly Below Fair Value: CHP.UN is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CHP.UN is poor value based on its PE Ratio (12x) compared to the CA REITs industry average (7.5x).

PE vs Market: CHP.UN is good value based on its PE Ratio (12x) compared to the Canadian market (16x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CHP.UN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CHP.UN is overvalued based on its PB Ratio (1.2x) compared to the CA REITs industry average (0.7x).


Next Steps

Future Growth

How is Choice Properties Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

0.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CHP.UN's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if CHP.UN's earnings are forecast to grow faster than the Canadian market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CHP.UN's revenue (0.8% per year) is forecast to grow slower than the Canadian market (5.8% per year).

High Growth Revenue: CHP.UN's revenue (0.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CHP.UN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Choice Properties Real Estate Investment Trust performed over the past 5 years?

8.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CHP.UN has a large one-off loss of CA$405.6M impacting its June 30 2020 financial results.

Growing Profit Margin: CHP.UN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CHP.UN's earnings have grown by 8.4% per year over the past 5 years.

Accelerating Growth: CHP.UN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: CHP.UN has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (15.1%).


Return on Equity

High ROE: CHP.UN's Return on Equity (9.9%) is considered low.


Next Steps

Financial Health

How is Choice Properties Real Estate Investment Trust's financial position?


Financial Position Analysis

Short Term Liabilities: CHP.UN's short term assets (CA$211.8M) do not cover its short term liabilities (CA$346.8M).

Long Term Liabilities: CHP.UN's short term assets (CA$211.8M) do not cover its long term liabilities (CA$11.6B).


Debt to Equity History and Analysis

Debt Level: CHP.UN's debt to equity ratio (358.2%) is considered high.

Reducing Debt: CHP.UN's debt to equity ratio has reduced from 724.6% to 358.2% over the past 5 years.

Debt Coverage: CHP.UN's debt is not well covered by operating cash flow (5.6%).

Interest Coverage: CHP.UN's interest payments on its debt are not well covered by EBIT (1.6x coverage).


Balance Sheet


Next Steps

Dividend

What is Choice Properties Real Estate Investment Trust current dividend yield, its reliability and sustainability?

5.99%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: CHP.UN's dividend (5.99%) is higher than the bottom 25% of dividend payers in the Canadian market (1.7%).

High Dividend: CHP.UN's dividend (5.99%) is in the top 25% of dividend payers in the Canadian market (5.93%)


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CHP.UN has been paying a dividend for less than 10 years.

Growing Dividend: CHP.UN's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (35.2%), CHP.UN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CHP.UN's dividends in 3 years are forecast to be covered by earnings (74.8% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.2yrs

Average management tenure


CEO

Rael Diamond (43 yo)

1.42yrs

Tenure

CA$2,763,693

Compensation

Mr. Rael Lee Diamond, CA, has been President and Chief Executive Officer at Choice Properties Real Estate Investment Trust since May 1, 2019 and had been its Chief Operating Officer since May 4, 2018 until ...


CEO Compensation Analysis

Compensation vs Market: Rael's total compensation ($USD2.09M) is below average for companies of similar size in the Canadian market ($USD3.97M).

Compensation vs Earnings: Rael's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Rael Diamond
President & CEO1.42yrsCA$2.76m0.19%
CA$ 16.8m
Mario Barrafato
Chief Financial Officer2.42yrsCA$1.29m0.074%
CA$ 6.5m
Ana Radic
Executive Vice President of Leasing & Operations1yrCA$1.22m0.00071%
CA$ 62.2k
Andrew Reial
Senior Vice President of Office & Industrial1yrCA$544.70kno data
Doris Baughan
Senior VPno datano datano data
Kristine Hill
Vice President of Human Resourcesno datano datano data

1.2yrs

Average Tenure

45.5yo

Average Age

Experienced Management: CHP.UN's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Graeme Eadie
Independent Lead Trustee2.25yrsCA$138.00k0.0032%
CA$ 282.1k
R. Michael Latimer
Independent Trustee2.42yrsCA$120.00k0.0013%
CA$ 109.5k
Karen Kinsley
Independent Trustee2.42yrsCA$121.00k0.0051%
CA$ 443.4k
Dale Ponder
Independent Trustee1.42yrsCA$80.16k0.00075%
CA$ 65.7k
Christie James Clark
Independent Trustee7.75yrsCA$120.66k0.0092%
CA$ 801.7k
Galen Weston
Chairman1.42yrsCA$91.43kno data
Nancy H. Lockhart
Independent Trustee1.42yrsCA$79.50k0.0080%
CA$ 705.3k
Kerry Adams
Independent Trustee7.75yrsCA$124.39k0.0080%
CA$ 705.3k

2.3yrs

Average Tenure

65yo

Average Age

Experienced Board: CHP.UN's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CHP.UN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Choice Properties Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Choice Properties Real Estate Investment Trust
  • Ticker: CHP.UN
  • Exchange: TSX
  • Founded:
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: CA$8.762b
  • Market Cap: CA$3.884b
  • Shares outstanding: 700.40m
  • Website: https://www.choicereit.ca

Number of Employees


Location

  • Choice Properties Real Estate Investment Trust
  • 22 St. Clair Avenue East
  • Suite 500
  • Toronto
  • Ontario
  • M4T 2S5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHP.UNTSX (The Toronto Stock Exchange)YesUnitsCACADJul 2013
PPRQ.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDJul 2013

Biography

Choice Properties, Canada's preeminent diversified real estate investment trust, is the owner, manager and developer of a high-quality portfolio comprising 724 properties totaling 65.6million square feet o ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/27 00:14
End of Day Share Price2020/10/26 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.