Choice Properties Real Estate Investment Trust
Market Cap
CA$9.2b
Last Updated
2021/01/16 00:38 UTC
Data Sources
Company Financials +
Executive Summary
Choice Properties, Canada's preeminent diversified real estate investment trust, is the owner, manager and developer of a high-quality portfolio comprising 725 properties totaling 66.1 million square feet of gross leasable area. More Details
Rewards
Risk Analysis
Snowflake Analysis
Good value average dividend payer.
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 is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.
Volatility Over Time: CHP.UN's weekly volatility (2%) has been stable over the past year.
Market Performance
7 Day Return
-3.0%
CHP.UN
-0.2%
CA REITs
-0.5%
CA Market
1 Year Return
-13.8%
CHP.UN
-20.1%
CA REITs
1.7%
CA Market
Return vs Industry: CHP.UN exceeded the Canadian REITs industry which returned -20.3% over the past year.
Return vs Market: CHP.UN underperformed the Canadian Market which returned 2.6% over the past year.
Shareholder returns
| CHP.UN | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.0% | -0.2% | -0.5% |
| 30 Day | -7.0% | -3.3% | 3.4% |
| 90 Day | 0.9% | 10.7% | 12.3% |
| 1 Year | -8.7%-13.8% | -15.4%-20.1% | 5.3%1.7% |
| 3 Year | 14.4%-3.8% | 10.0%-6.7% | 13.0%2.3% |
| 5 Year | 43.2%8.4% | 42.6%7.6% | 66.2%40.7% |
Long-Term 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
2 weeks ago | Simply Wall St
Did You Participate In Any Of Choice Properties Real Estate Investment Trust's (TSE:CHP.UN) Respectable 49% Return?1 month ago | Simply Wall St
Should You Be Impressed By Choice Properties Real Estate Investment Trust's (TSE:CHP.UN) ROE?2 months ago | Simply Wall St
Is Choice Properties Real Estate Investment Trust (TSE:CHP.UN) Popular Amongst Institutions?Valuation
Is Choice Properties Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?
39.8%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CHP.UN (CA$12.73) is trading below our estimate of fair value (CA$21.14)
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 good value based on its PE Ratio (6.6x) compared to the CA REITs industry average (8.8x).
PE vs Market: CHP.UN is good value based on its PE Ratio (6.6x) compared to the Canadian market (16.9x).
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 (0.8x).
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?
2.1%
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 (1.5%).
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 (2.1% per year) is forecast to grow slower than the Canadian market (7.8% per year).
High Growth Revenue: CHP.UN's revenue (2.1% 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?
15.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CHP.UN has a large one-off loss of CA$335.2M impacting its September 30 2020 financial results.
Growing Profit Margin: CHP.UN became profitable in the past.
Past Earnings Growth Analysis
Earnings Trend: CHP.UN has become profitable over the past 5 years, growing earnings by 15.8% per year.
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 (16.4%).
Return on Equity
High ROE: CHP.UN's Return on Equity (18.1%) 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$473.4M) do not cover its short term liabilities (CA$544.6M).
Long Term Liabilities: CHP.UN's short term assets (CA$473.4M) do not cover its long term liabilities (CA$11.4B).
Debt to Equity History and Analysis
Debt Level: CHP.UN's debt to equity ratio (332.8%) is considered high.
Reducing Debt: CHP.UN's debt to equity ratio has reduced from 915.8% to 332.8% over the past 5 years.
Debt Coverage: CHP.UN's debt is not well covered by operating cash flow (5.2%).
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?
5.81%
Current Dividend Yield
Dividend Yield vs Market
Notable Dividend: CHP.UN's dividend (5.81%) is higher than the bottom 25% of dividend payers in the Canadian market (1.55%).
High Dividend: CHP.UN's dividend (5.81%) is in the top 25% of dividend payers in the Canadian market (5%)
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 (35.9%), 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 (75.3% payout ratio).
Next Steps
Management
How experienced are the management team and are they aligned to shareholders interests?
1.5yrs
Average management tenure
CEO
Rael Diamond (43 yo)
1.67yrs
Tenure
CA$2,763,693
Compensation
Mr. Rael Lee Diamond, CA, has been President and Chief Executive Officer at Choice Properties Real Estate Investment Trust since May 1, 2019 and had been its Chief Operating Officer since May 4, 2018 until...
CEO Compensation Analysis
Compensation vs Market: Rael's total compensation ($USD2.17M) is below average for companies of similar size in the Canadian market ($USD3.45M).
Compensation vs Earnings: Rael's compensation has been consistent with company performance over the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| President & CEO | 1.67yrs | CA$2.76m | 0.18% CA$ 16.7m | |
| Chief Financial Officer | 2.67yrs | CA$1.29m | 0.071% CA$ 6.5m | |
| Executive Vice President of Leasing & Operations | 1.25yrs | CA$1.22m | 0.00067% CA$ 61.4k | |
| Senior Vice President of Office & Industrial | 1.25yrs | CA$544.70k | no data | |
| Senior VP | no data | no data | no data | |
| Vice President of Human Resources | no data | no data | no data |
1.5yrs
Average Tenure
45.5yo
Average Age
Experienced Management: CHP.UN's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Independent Lead Trustee | 2.5yrs | CA$138.00k | 0.0031% CA$ 280.6k | |
| Independent Trustee | 2.67yrs | CA$120.00k | 0.0012% CA$ 108.2k | |
| 1yr | no data | no data | ||
| Independent Trustee | 2.67yrs | CA$121.00k | 0.0048% CA$ 441.1k | |
| Independent Trustee | 1.67yrs | CA$80.16k | 0.00071% CA$ 65.1k | |
| Independent Trustee | 8yrs | CA$120.66k | 0.0087% CA$ 797.0k | |
| Chairman | 1.67yrs | CA$91.43k | 0.015% CA$ 1.4m | |
| Independent Trustee | 1.67yrs | CA$79.50k | 0.0076% CA$ 701.6k | |
| Independent Trustee | 8yrs | CA$124.39k | 0.0076% CA$ 701.6k |
2.5yrs
Average Tenure
65.5yo
Average Age
Experienced Board: CHP.UN's board of directors are not considered experienced ( 2.5 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 been diluted in the past year, with total shares outstanding growing by 3.2%.
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$9.171b
- Market Cap: CA$4.149b
- Shares outstanding: 722.73m
- 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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CHP.UN | TSX (The Toronto Stock Exchange) | Yes | Units | CA | CAD | Jul 2013 |
| PPRQ.F | OTCPK (Pink Sheets LLC) | Yes | Units | US | USD | Jul 2013 |
Biography
Choice Properties, Canada's preeminent diversified real estate investment trust, is the owner, manager and developer of a high-quality portfolio comprising 725 properties totaling 66.1 million square feet ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/01/16 00:38 |
| End of Day Share Price | 2021/01/15 00:00 |
| Earnings | 2020/09/30 |
| Annual Earnings | 2019/12/31 |
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.