TSX:CHP.UN

Stock Analysis Report

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 756 properties totaling 68.0 million square feet of gross leasable area.

Snowflake

Fundamentals

Second-rate dividend payer and overvalued.

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


Market Performance


7 Day Return

-1.8%

CHP.UN

-1.1%

CA REITs

-0.3%

CA Market


1 Year Return

21.0%

CHP.UN

18.4%

CA REITs

0.9%

CA Market

Return vs Industry: CHP.UN exceeded the Canadian REITs industry which returned 18.4% over the past year.

Return vs Market: CHP.UN exceeded the Canadian Market which returned 0.9% over the past year.


Share holder returns

CHP.UNIndustryMarket
7 Day-1.8%-1.1%-0.3%
30 Day2.1%4.2%-2.1%
90 Day5.1%6.4%-1.5%
1 Year28.0%21.0%24.9%18.4%4.4%0.9%
3 Year21.9%2.9%40.7%18.5%15.7%5.4%
5 Year80.5%36.4%68.8%25.7%26.1%7.9%

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 based on future cash flows and its price relative to the stock market?

16%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: CHP.UN (CA$14.35) is trading below our estimate of fair value (CA$17.06)

Significantly Undervalued: CHP.UN is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: CHP.UN is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: CHP.UN is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: CHP.UN is overvalued based on its PB Ratio (1.4x) compared to the CA REITs industry average (1x).


Next Steps

Future Growth

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

12.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: CHP.UN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CHP.UN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CHP.UN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CHP.UN's revenue (3.5% per year) is forecast to grow slower than the Canadian market (5.7% per year).

High Growth Revenue: CHP.UN's revenue (3.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High 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?

13.5%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CHP.UN is unprofitable, but has reduced losses over the past 5 years at a rate of 13.5% per year.

Accelerating Growth: Unable to compare CHP.UN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CHP.UN is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (6%).


Return on Equity

High ROE: CHP.UN has a negative Return on Equity (-10.26%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CHP.UN is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CHP.UN is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Choice Properties Real Estate Investment Trust's financial position? (This company is analysed differently as a bank or financial institution)


Financial Position Analysis


Debt to Equity History and Analysis


Balance Sheet

Inventory Level: CHP.UN has a high level of physical assets or inventory.

Debt Coverage by Assets: CHP.UN's debt is not covered by short term assets (assets are 0x debt).


Financial Institutions Analysis

Asset Level: CHP.UN's level of assets compared to its equity is low.

Allowance for Bad Loans: Insufficient data to determine if CHP.UN has a sufficient allowance for bad loans.

Low Risk Liabilities: CHP.UN reports no customer deposits, loans are made up entirely of externally borrowed funds.

Loan Level: Insufficient data to determine if CHP.UN has an acceptable proportion of non-loan assets held.

Low Risk Deposits: CHP.UN has advanced significantly more loans than the customer deposits it holds.

Level of Bad Loans: Insufficient data to determine if CHP.UN has an appropriate level of bad loans.


Next Steps

Dividend

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

5.16%

Expected Dividend Yield


Dividend Yield vs Market

company5.2%marketbottom25%2.0%markettop25%6.0%industryaverage5.5%forecastin3Years5.2%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: CHP.UN's dividend (5.16%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: CHP.UN's dividend (5.16%) is low compared to the top 25% of dividend payers in the Canadian market (5.98%).

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 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (30.5%), 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 thoroughly covered by earnings (0.1% payout ratio).


Next Steps

Management

What is the CEO of Choice Properties Real Estate Investment Trust's salary, the management and board of directors tenure and is there insider trading?

1.4yrs

Average board tenure


CEO

Rael Diamond (42yo)

0.4yrs

Tenure

CA$2,402,807

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the Canadian market.

Compensation vs Earnings: Rael's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

1.4yrs

Average Tenure

64yo

Average Age

Experienced Board: CHP.UN's board of directors are not considered experienced ( 1.4 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyCA$57,60023 Sep 19
Karen Kinsley
EntityIndividual
Role
Member of the Board of Directors
Shares4,000
Max PriceCA$14.40
BuyCA$40,21029 May 19
Rashid Wasti
EntityIndividual
Shares3,000
Max PriceCA$14.35
BuyCA$20,36423 May 19
Rashid Wasti
EntityIndividual
Shares1,500
Max PriceCA$13.58
BuyCA$50,035,74910 May 19
Wittington Investments Limited
EntityCompany
Shares3,805,000
Max PriceCA$13.15
SellCA$28,50029 Mar 19
Dallas Wingerak
EntityIndividual
Shares2,000
Max PriceCA$14.25
BuyCA$20,56519 Mar 19
Rashid Wasti
EntityIndividual
Shares1,500
Max PriceCA$13.71
BuyCA$1,194,90710 Mar 19
Rael Diamond
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares88,120
Max PriceCA$13.56
BuyCA$1,194,90710 Mar 19
Rael Diamond
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares88,120
Max PriceCA$13.56
SellCA$1,194,90710 Mar 19
Rael Diamond
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares88,120
Max PriceCA$13.56
BuyCA$13,55027 Feb 19
Rashid Wasti
EntityIndividual
Shares1,000
Max PriceCA$13.55
BuyCA$5,735,56908 Jan 19
Stephen Johnson
EntityIndividual
Shares456,673
Max PriceCA$12.99
BuyCA$11,48701 Jan 19
Rashid Wasti
EntityIndividual
Shares1,000
Max PriceCA$11.49
BuyCA$11,79521 Dec 18
Rashid Wasti
EntityIndividual
Shares1,000
Max PriceCA$11.80
BuyCA$99,93512 Dec 18
Sknaber Limited
EntityCompany
Shares8,200
Max PriceCA$12.19
BuyCA$24,16205 Dec 18
Karen Kinsley
EntityIndividual
Role
Member of the Board of Directors
Shares2,000
Max PriceCA$12.08
BuyCA$15,92019 Nov 18
Rashid Wasti
EntityIndividual
Shares1,300
Max PriceCA$12.43

Ownership Breakdown


Management Team

  • Mario Barrafato (54yo)

    Chief Financial Officer

    • Tenure: 1.4yrs
    • Compensation: CA$1.62m
  • Rael Diamond (42yo)

    President & CEO

    • Tenure: 0.4yrs
    • Compensation: CA$2.40m
  • Adam Walsh (45yo)

    VP, General Counsel & Secretary

    • Tenure: 0yrs
  • Kristine Hill

    Vice President of Human Resources

    • Tenure: 0yrs

Board Members

  • Graeme Eadie (67yo)

    Lead Trustee

    • Tenure: 1.3yrs
    • Compensation: CA$128.74k
  • Tony Graham (62yo)

    • Tenure: 2.5yrs
    • Compensation: CA$138.00k
  • R. Michael Latimer

    • Tenure: 1.4yrs
    • Compensation: CA$76.74k
  • Karen Kinsley (62yo)

    • Tenure: 1.4yrs
    • Compensation: CA$77.20k
  • Dale Ponder (62yo)

    • Tenure: 0.4yrs
  • Chris Clark (65yo)

    • Tenure: 6.8yrs
    • Compensation: CA$120.00k
  • Galen Weston (46yo)

    Chairman

    • Tenure: 0.8yrs
    • Compensation: CA$43.47k
  • Nancy H. Lockhart (64yo)

    • Tenure: 0.4yrs
  • Kerry Adams (66yo)

    • Tenure: 6.8yrs
    • Compensation: CA$133.00k
  • Paul Weiss (71yo)

    • Tenure: 6.8yrs
    • Compensation: CA$128.00k

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$10.039b
  • Market Cap: CA$4.443b
  • Shares outstanding: 699.57m
  • 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 756 properties totaling 68.0 million square feet  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:46
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.

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