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Granite Real Estate Investment Trust

Market Cap

CA$4.8b

Last Updated

2021/04/11 00:06 UTC

Data Sources

Company Financials +

Executive Summary

Granite is a Canadian-based REIT engaged in the acquisition, development, ownership and management of logistics, warehouse and industrial properties in North America and Europe. More Details


Snowflake Analysis

Average dividend payer and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: GRT.UN is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 2% a week.

Volatility Over Time: GRT.UN's weekly volatility (2%) has been stable over the past year.


Market Performance


7 Day Return

2.2%

GRT.UN

2.7%

CA REITs

1.0%

CA Market


1 Year Return

24.2%

GRT.UN

17.4%

CA REITs

39.2%

CA Market

Return vs Industry: GRT.UN exceeded the Canadian REITs industry which returned 17.4% over the past year.

Return vs Market: GRT.UN underperformed the Canadian Market which returned 39.2% over the past year.


Shareholder returns

GRT.UNIndustryMarket
7 Day2.2%2.7%1.0%
30 Day3.0%3.7%1.4%
90 Day0.2%10.2%7.5%
1 Year29.3%24.2%24.0%17.4%44.0%39.2%
3 Year79.7%56.3%26.8%7.8%32.2%19.6%
5 Year176.3%114.9%42.6%7.8%59.4%35.3%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

28.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: GRT.UN (CA$78.28) is trading below our estimate of fair value (CA$109.85)

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


Price To Earnings Ratio

PE vs Industry: GRT.UN is poor value based on its PE Ratio (11.2x) compared to the CA REITs industry average (11x).

PE vs Market: GRT.UN is good value based on its PE Ratio (11.2x) compared to the Canadian market (17.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: GRT.UN is overvalued based on its PB Ratio (1.2x) compared to the CA REITs industry average (0.9x).


Future Growth

How is Granite Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

10.4%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if GRT.UN's forecast earnings growth is above the savings rate (1.5%).

Earnings vs Market: Insufficient data to determine if GRT.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: GRT.UN's revenue (10.4% per year) is forecast to grow faster than the Canadian market (7.2% per year).

High Growth Revenue: GRT.UN's revenue (10.4% 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 GRT.UN's Return on Equity is forecast to be high in 3 years time


Past Performance

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

13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: GRT.UN has a large one-off gain of CA$272.3M impacting its December 31 2020 financial results.

Growing Profit Margin: GRT.UN's current net profit margins are lower than last year .


Past Earnings Growth Analysis

Earnings Trend: GRT.UN's earnings have grown by 13.4% per year over the past 5 years.

Accelerating Growth: GRT.UN's earnings growth over the past year (12.5%) is below its 5-year average (13.4% per year).

Earnings vs Industry: GRT.UN earnings growth over the past year (12.5%) exceeded the REITs industry -17.1%.


Return on Equity

High ROE: GRT.UN's Return on Equity (11%) is considered low.


Financial Health

How is Granite Real Estate Investment Trust's financial position?


Financial Position Analysis

Short Term Liabilities: GRT.UN's short term assets (CA$845.8M) exceed its short term liabilities (CA$373.9M).

Long Term Liabilities: GRT.UN's short term assets (CA$845.8M) do not cover its long term liabilities (CA$2.5B).


Debt to Equity History and Analysis

Debt Level: GRT.UN's debt to equity ratio (58.4%) is considered high.

Reducing Debt: GRT.UN's debt to equity ratio has increased from 31.7% to 58.4% over the past 5 years.

Debt Coverage: GRT.UN's debt is not well covered by operating cash flow (10.7%).

Interest Coverage: GRT.UN's interest payments on its debt are well covered by EBIT (7.8x coverage).


Balance Sheet


Dividend

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

3.83%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: GRT.UN's dividend (3.83%) is higher than the bottom 25% of dividend payers in the Canadian market (1.49%).

High Dividend: GRT.UN's dividend (3.83%) is low compared to the top 25% of dividend payers in the Canadian market (4.81%).


Stability and Growth of Payments

Stable Dividend: GRT.UN's dividend payments have been volatile in the past 10 years.

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


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (72.3%), GRT.UN's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: GRT.UN's dividends in 3 years are forecast to be covered by earnings (68.2% payout ratio).


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Kevan Gorrie (51 yo)

2.67yrs

Tenure

CA$2,877,840

Compensation

Mr. Kevan S. Gorrie, P. Eng, ICD.D, has been President, Chief Executive Officer and Trustee/Director at Granite Real Estate Investment Trust and Granite REIT Inc. since August 01, 2018. He was the Presiden...


CEO Compensation Analysis

Compensation vs Market: Kevan's total compensation ($USD2.29M) is about average for companies of similar size in the Canadian market ($USD3.00M).

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


Leadership Team

Experienced Management: GRT.UN's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: GRT.UN's board of directors are considered experienced (3.8 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: GRT.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 14.2%.


Top Shareholders

Company Information

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


Key Information

  • Name: Granite Real Estate Investment Trust
  • Ticker: GRT.UN
  • Exchange: TSX
  • Founded: 1998
  • Industry: Industrial REITs
  • Sector: Real Estate
  • Market Cap: CA$4.830b
  • Shares outstanding: 61.71m
  • Website: https://www.granitereit.com

Number of Employees


Location

  • Granite Real Estate Investment Trust
  • Toronto-Dominion Centre
  • Suite 4010
  • Toronto
  • Ontario
  • M5K 1H1
  • Canada

Listings


Biography

Granite is a Canadian-based REIT engaged in the acquisition, development, ownership and management of logistics, warehouse and industrial properties in North America and Europe. Granite owns 108 investment...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/11 00:06
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.