TSX:CRR.UN

Stock Analysis Report

Crombie Real Estate Investment Trust

Executive Summary

Crombie Real Estate Investment Trust ("Crombie") is an unincorporated, open-ended real estate investment trust established under, and governed by, the laws of the Province of Ontario.

Rewards

Trading at 40.3% below its fair value

Earnings grew by 20.5% over the past year

Pays a high and reliable dividend of 5.67%

Risk Analysis

Large one-off items impacting financial results



Snowflake Analysis

6 star dividend payer with proven track record.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-1.8%

CRR.UN

-1.6%

CA REITs

0.4%

CA Market


1 Year Return

21.1%

CRR.UN

14.5%

CA REITs

10.6%

CA Market

Return vs Industry: CRR.UN exceeded the Canadian REITs industry which returned 14.5% over the past year.

Return vs Market: CRR.UN exceeded the Canadian Market which returned 10.6% over the past year.


Shareholder returns

CRR.UNIndustryMarket
7 Day-1.8%-1.6%0.4%
30 Day0.4%0.8%0.01%
90 Day0.4%2.7%0.7%
1 Year28.6%21.1%20.5%14.5%14.3%10.6%
3 Year42.5%17.4%43.9%21.5%15.9%5.4%
5 Year70.4%23.1%69.2%26.6%35.2%15.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

40.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CRR.UN (CA$15.69) is trading below our estimate of fair value (CA$26.29)

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


Price To Earnings Ratio

PE vs Industry: CRR.UN is poor value based on its PE Ratio (17.2x) compared to the REITs industry average (10.7x).

PE vs Market: CRR.UN is poor value based on its PE Ratio (17.2x) compared to the Canadian market (15.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CRR.UN is overvalued based on its PB Ratio (1.6x) compared to the CA REITs industry average (1.1x).


Next Steps

Future Growth

How is Crombie Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

-0.3%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CRR.UN's forecast earnings growth is above the savings rate (1.4%).

Earnings vs Market: Insufficient data to determine if CRR.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: CRR.UN's revenue is expected to decline over the next 3 years (-0.3% per year).

High Growth Revenue: CRR.UN's revenue is forecast to decline over the next 3 years (-0.3% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

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

15.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRR.UN has a large one-off gain of CA$31.8M impacting its September 30 2019 financial results.

Growing Profit Margin: CRR.UN's current net profit margins (33.9%) are higher than last year (27.5%).


Past Earnings Growth Analysis

Earnings Trend: CRR.UN's earnings have grown by 15.1% per year over the past 5 years.

Accelerating Growth: CRR.UN's earnings growth over the past year (20.5%) exceeds its 5-year average (15.1% per year).

Earnings vs Industry: CRR.UN earnings growth over the past year (20.5%) exceeded the REITs industry 7%.


Return on Equity

High ROE: CRR.UN's Return on Equity (9.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Crombie 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: CRR.UN has a high level of physical assets or inventory.

Debt Coverage by Assets: CRR.UN's debt is not covered by short term assets (assets are 0.1x debt).


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

5.67%

Current Dividend Yield


Dividend Yield vs Market

company5.7%marketbottom25%2.0%markettop25%5.6%industryaverage4.7%forecastin3Years5.7%

Current dividend yield vs market & industry

Notable Dividend: CRR.UN's dividend (5.67%) is higher than the bottom 25% of dividend payers in the Canadian market (2%).

High Dividend: CRR.UN's dividend (5.67%) is in the top 25% of dividend payers in the Canadian market (5.65%)


Stability and Growth of Payments

Stable Dividend: CRR.UN's dividends per share have been stable in the past 10 years.

Growing Dividend: CRR.UN's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: At its current payout ratio (97.6%), CRR.UN's payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CRR.UN's dividends in 3 years are forecast to be thoroughly covered by earnings (0.5% payout ratio).


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

Don Clow (57yo)

10.3yrs

Tenure

CA$2,763,996

Compensation

Mr. Donald E. Clow, also known as Don, FCPA, FCA, has been the President and the Chief Executive Officer of Crombie Real Estate Investment Trust since August 6, 2009. Mr. Clow served as the President at EC ...


CEO Compensation Analysis

Compensation vs Market: Don's total compensation ($USD2.09M) is about average for companies of similar size in the Canadian market ($USD2.21M).

Compensation vs Earnings: Don's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.3yrs

Average Tenure

56yo

Average Age

Experienced Management: CRR.UN's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

4.4yrs

Average Tenure

61.5yo

Average Age

Experienced Board: CRR.UN's board of directors are considered experienced (4.4 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$155,70029 Aug 19
Jason Shannon
EntityIndividual
Role
Member of the Board of Directors
Independent Trustee
Shares10,000
Max PriceCA$15.57
BuyCA$306,27028 Jun 19
Jason Shannon
EntityIndividual
Role
Member of the Board of Directors
Independent Trustee
Shares20,000
Max PriceCA$15.43

Ownership Breakdown

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


Management Team

  • Glenn Hynes (56yo)

    COO & Executive VP

    • Tenure: 1.1yrs
    • Compensation: CA$1.17m
  • Clinton Keay

    CFO & Secretary

    • Tenure: 0.6yrs
  • Don Clow (57yo)

    President

    • Tenure: 10.3yrs
    • Compensation: CA$2.76m
  • Cheryl Fraser (61yo)

    Chief Talent Officer & VP of Communications

    • Tenure: 3.3yrs
    • Compensation: CA$363.27k
  • Trevor Lee (51yo)

    Senior VP of Development & Construction

    • Tenure: 3.3yrs
    • Compensation: CA$566.74k
  • Fred Santini

    General Counsel

    • Tenure: 3.3yrs
  • John Barnoski (46yo)

    Senior Vice President of Corporate Development

    • Tenure: 3.3yrs
    • Compensation: CA$595.03k
  • Arie Bitton

    Senior Vice President of Leasing & Operations

    • Tenure: 0.9yrs
  • Kara Dort

    Vice President of Accounting & Financial Reporting

    • Tenure: 0yrs
  • Jayme Kruger

    Vice President of Investments

    • Tenure: 0yrs

Board Members

  • John Eby (67yo)

    Lead Independent Trustee

    • Tenure: 8.6yrs
    • Compensation: CA$113.50k
  • Paul Sobey (62yo)

    • Tenure: 13.8yrs
    • Compensation: CA$90.00k
  • Paul Beesley (61yo)

    Independent Trustee

    • Tenure: 0.8yrs
    • Compensation: CA$62.00k
  • Mike Knowlton (68yo)

    Independent Chairman of the Board

    • Tenure: 0.6yrs
    • Compensation: CA$110.50k
  • Jim Dickson (61yo)

    Independent Trustee

    • Tenure: 2.5yrs
    • Compensation: CA$87.50k
  • Elisabeth Stroback (67yo)

    Independent Trustee

    • Tenure: 13.8yrs
    • Compensation: CA$96.00k
  • Barb Palk (67yo)

    Independent Trustee

    • Tenure: 5.6yrs
    • Compensation: CA$104.50k
  • Don Clow (57yo)

    President

    • Tenure: 10.3yrs
    • Compensation: CA$2.76m
  • Jason Shannon (47yo)

    Independent Trustee

    • Tenure: 3.2yrs
    • Compensation: CA$99.00k
  • Jana Sobey (43yo)

    Independent Trustee

    • Tenure: 0.6yrs

Company Information

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


Key Information

  • Name: Crombie Real Estate Investment Trust
  • Ticker: CRR.UN
  • Exchange: TSX
  • Founded: 2006
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: CA$2.380b
  • Shares outstanding: 151.71m
  • Website: https://www.crombiereit.com

Number of Employees


Location

  • Crombie Real Estate Investment Trust
  • 610 East River Road
  • Suite 200
  • New Glasgow
  • Nova Scotia
  • B2H 3S2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CRR.UNTSX (The Toronto Stock Exchange)YesOrdinary UnitsCACADMar 2006
CROM.FOTCPK (Pink Sheets LLC)YesOrdinary UnitsUSUSDMar 2006

Biography

Crombie Real Estate Investment Trust ("Crombie") is an unincorporated, open-ended real estate investment trust established under, and governed by, the laws of the Province of Ontario. Crombie is one of the ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/12 00:02
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
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.