TSX:CRT.UN

Stock Analysis Report

CT Real Estate Investment Trust

Executive Summary

CT Real Estate Investment Trust (TSX:CRT.UN) is an unincorporated, closed-end real estate investment trust formed to own income-producing commercial properties primarily located in Canada.


Snowflake Analysis

Second-rate dividend payer and slightly overvalued.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.0%

CRT.UN

2.2%

CA REITs

0.8%

CA Market


1 Year Return

31.8%

CRT.UN

17.1%

CA REITs

10.6%

CA Market

Return vs Industry: CRT.UN exceeded the Canadian REITs industry which returned 13.2% over the past year.

Return vs Market: CRT.UN exceeded the Canadian Market which returned 10.4% over the past year.


Shareholder returns

CRT.UNIndustryMarket
7 Day1.0%2.2%0.8%
30 Day2.5%5.1%2.1%
90 Day9.9%5.0%6.6%
1 Year38.9%31.8%23.0%17.1%14.1%10.6%
3 Year30.2%11.2%45.2%22.9%17.0%6.4%
5 Year65.3%28.5%60.9%21.6%38.5%18.2%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

37.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CRT.UN (CA$15.93) is trading below our estimate of fair value (CA$26.49)

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


Price To Earnings Ratio

PE vs Industry: CRT.UN is poor value based on its PE Ratio (26.2x) compared to the REITs industry average (10.7x).

PE vs Market: CRT.UN is poor value based on its PE Ratio (26.2x) compared to the Canadian market (15.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CRT.UN is overvalued based on its PB Ratio (2.5x) compared to the CA REITs industry average (1.1x).


Next Steps

Future Growth

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

2.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if CRT.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: CRT.UN's revenue (2.9% per year) is forecast to grow slower than the Canadian market (5% per year).

High Growth Revenue: CRT.UN's revenue (2.9% 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 CRT.UN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

3.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRT.UN has high quality earnings.

Growing Profit Margin: CRT.UN's current net profit margins (27.6%) are lower than last year (29.5%).


Past Earnings Growth Analysis

Earnings Trend: CRT.UN's earnings have grown by 3.2% per year over the past 5 years.

Accelerating Growth: CRT.UN's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CRT.UN had negative earnings growth (-2.5%) over the past year, making it difficult to compare to the REITs industry average (4.8%).


Return on Equity

High ROE: CRT.UN's Return on Equity (9.3%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CT 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: CRT.UN has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

4.79%

Current Dividend Yield


Upcoming Dividend Payment

Purchase CT Real Estate Investment Trust before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company4.8%marketbottom25%1.9%markettop25%5.5%industryaverage4.5%forecastin3Years4.9%

Current dividend yield vs market & industry

Notable Dividend: CRT.UN's dividend (4.94%) is higher than the bottom 25% of dividend payers in the Canadian market (1.88%).

High Dividend: CRT.UN's dividend (4.94%) is low compared to the top 25% of dividend payers in the Canadian market (5.48%).


Stability and Growth of Payments

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

Growing Dividend: CRT.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 (25%), CRT.UN's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CRT.UN's dividends in 3 years are forecast to be thoroughly covered by earnings (0.3% payout ratio).


Next Steps

Management

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

6.3yrs

Average board tenure


CEO

Ken Silver (60yo)

6.3yrs

Tenure

CA$1,614,129

Compensation

Mr. Kenneth Silver, also known as Ken, has been the Chief Executive Officer and President of CT Real Estate Investment Trust (REIT) since October 23, 2013. Mr. Silver joined CTC in 1995. He served as the C ...


CEO Compensation Analysis

Compensation vs Market: Ken's total compensation ($USD1.24M) is below average for companies of similar size in the Canadian market ($USD2.87M).

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


Board Age and Tenure

6.3yrs

Average Tenure

60yo

Average Age

Experienced Board: CRT.UN's board of directors are considered experienced (6.3 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$21,37520 Sep 19
James Christie
EntityIndividual
Shares1,500
Max PriceCA$14.25
SellCA$150,052,49519 Sep 19
Canadian Tire Corporation, Limited
EntityCompany
Shares10,530,000
Max PriceCA$14.25

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.7%.


Management Team

  • Ken Silver (60yo)

    President

    • Tenure: 6.3yrs
    • Compensation: CA$1.61m
  • Lesley Gibson (48yo)

    Senior VP & CFO

    • Tenure: 1.3yrs
    • Compensation: CA$1.02m
  • Kevin Salsberg

    Chief Operating Officer

    • Compensation: CA$819.92k
  • Kimberley Graham

    VP, General Counsel & Secretary

    • Andrea Orzech

      Associate Vice-President of Investor Relations

      • Jane Shaw

        Vice-President of Communications

        • Marina Davies

          Associate Vice President


          Board Members

          • Leo Laidley (72yo)

            Independent Non Executive Chairman

            • Tenure: 6.3yrs
            • Compensation: CA$112.00k
          • Ken Silver (60yo)

            President

            • Tenure: 6.3yrs
            • Compensation: CA$1.61m
          • Dean McCann (60yo)

            • Tenure: 6.3yrs
          • John O’Bryan (68yo)

            Independent Trustee

            • Tenure: 6.3yrs
            • Compensation: CA$81.25k
          • Heather Briant (58yo)

            • Tenure: 1.7yrs
            • Compensation: CA$47.90k
          • Anna Martini (56yo)

            Independent Trustee

            • Tenure: 6.3yrs
            • Compensation: CA$87.00k
          • Greg Hicks (48yo)

            • Tenure: 1.7yrs

          Company Information

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


          Key Information

          • Name: CT Real Estate Investment Trust
          • Ticker: CRT.UN
          • Exchange: TSX
          • Founded:
          • Industry: Retail REITs
          • Sector: Real Estate
          • Market Cap: CA$3.738b
          • Shares outstanding: 227.52m
          • Website: https://www.ctreit.com

          Number of Employees


          Location

          • CT Real Estate Investment Trust
          • 2180 Yonge Street
          • P.O. Box 770, Station K
          • Toronto
          • Ontario
          • M4P 2V8
          • Canada

          Listings

          TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
          CRT.UNTSX (The Toronto Stock Exchange)YesUnitsCACADOct 2013
          CTRR.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDOct 2013

          Biography

          CT Real Estate Investment Trust (TSX:CRT.UN) is an unincorporated, closed-end real estate investment trust formed to own income-producing commercial properties primarily located in Canada. Its portfolio is comprised of over 350 properties totalling approximately 27 million square feet of GLA, consisting primarily of retail properties located across Canada. Canadian Tire Corporation, Limited is CT REIT's most significant tenant. 


          Company Analysis and Financial Data Status

          All financial data provided by Standard & Poor's Capital IQ.
          DataLast Updated (UTC time)
          Company Analysis2020/01/23 00:51
          End of Day Share Price2020/01/22 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.