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HR.U

H&R Real Estate Investment Trust TSX:HR.UN Stock Report

Last Price

CA$13.51

Market Cap

CA$3.9b

7D

14.8%

1Y

-14.1%

Updated

17 May, 2022

Data

Company Financials +
HR.UN fundamental analysis
Snowflake Score
Valuation5/6
Future Growth0/6
Past Performance3/6
Financial Health2/6
Dividends2/6

HR.UN Stock Overview

H&R REIT is one of Canada's largest real estate investment trusts with total assets of approximately $13.3 billion at September 30, 2020.

H&R Real Estate Investment Trust Competitors

 

 

 

 

 

 

 

 

 

 

 

 

Price History & Performance

Summary of all time highs, changes and price drops for H&R Real Estate Investment Trust
Historical stock prices
Current Share PriceCA$13.51
52 Week HighCA$17.27
52 Week LowCA$11.68
Beta1.87
1 Month Change3.29%
3 Month Change4.81%
1 Year Change-14.06%
3 Year Change-42.07%
5 Year Change-38.87%
Change since IPO21.71%

Recent News & Updates

Shareholder Returns

HR.UNCA REITsCA Market
7D14.8%5.1%2.8%
1Y-14.1%0.08%5.9%

Return vs Industry: HR.UN underperformed the Canadian REITs industry which returned -0.4% over the past year.

Return vs Market: HR.UN underperformed the Canadian Market which returned 4.3% over the past year.

Price Volatility

Is HR.UN's price volatile compared to industry and market?
HR.UN volatility
HR.UN Average Weekly Movement3.8%
REITs Industry Average Movement3.5%
Market Average Movement9.8%
10% most volatile stocks in CA Market16.7%
10% least volatile stocks in CA Market4.2%

Stable Share Price: HR.UN is less volatile than 75% of Canadian stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: HR.UN's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
1996n/aTom Hofstedterhttps://www.hr-reit.com

H&R REIT is one of Canada's largest real estate investment trusts with total assets of approximately $13.3 billion at September 30, 2020. H&R REIT has ownership interests in a North American portfolio of high quality office, retail, industrial and residential properties comprising over 40 million square feet.

H&R Real Estate Investment Trust Fundamentals Summary

How do H&R Real Estate Investment Trust's earnings and revenue compare to its market cap?
HR.UN fundamental statistics
Market CapCA$3.86b
Earnings (TTM)CA$1.41b
Revenue (TTM)CA$984.59m

2.8x

P/E Ratio

4.0x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
HR.UN income statement (TTM)
RevenueCA$984.59m
Cost of RevenueCA$380.29m
Gross ProfitCA$604.31m
Other Expenses-CA$804.05m
EarningsCA$1.41b

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)4.81
Gross Margin61.38%
Net Profit Margin143.04%
Debt/Equity Ratio74.8%

How did HR.UN perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

-621%

Payout Ratio

Valuation

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

Valuation Score

5/6

Valuation Score 5/6

  • Below Fair Value

  • Significantly Below Fair Value

  • PE vs Industry

  • PE vs Market

  • PEG Ratio

  • PB vs Industry


>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: HR.UN (CA$13.51) is trading below our estimate of fair value (CA$29.47)

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


Price To Earnings Ratio

PE vs Industry: HR.UN is good value based on its PE Ratio (2.8x) compared to the Canadian REITs industry average (6.4x).

PE vs Market: HR.UN is good value based on its PE Ratio (2.8x) compared to the Canadian market (11.4x).


Price to Earnings Growth Ratio

PEG Ratio: HR.UN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: HR.UN is good value based on its PB Ratio (0.7x) compared to the CA REITs industry average (0.9x).


Future Growth

How is H&R Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

Future Growth Score

0/6

Future Growth Score 0/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


-61.7%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: HR.UN's earnings are forecast to decline over the next 3 years (-61.7% per year).

Earnings vs Market: HR.UN's earnings are forecast to decline over the next 3 years (-61.7% per year).

High Growth Earnings: HR.UN's earnings are forecast to decline over the next 3 years.

Revenue vs Market: HR.UN's revenue is expected to decline over the next 3 years (-3.6% per year).

High Growth Revenue: HR.UN's revenue is forecast to decline over the next 3 years (-3.6% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Past Performance

How has H&R Real Estate Investment Trust performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


-5.9%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: HR.UN has a large one-off gain of CA$1.2B impacting its March 31 2022 financial results.

Growing Profit Margin: HR.UN's current net profit margins are higher than last year (49.5%).


Past Earnings Growth Analysis

Earnings Trend: HR.UN's earnings have declined by 5.9% per year over the past 5 years.

Accelerating Growth: HR.UN's earnings growth over the past year (153.8%) exceeds its 5-year average (-5.9% per year).

Earnings vs Industry: HR.UN earnings growth over the past year (153.8%) underperformed the REITs industry 160.8%.


Return on Equity

High ROE: HR.UN's Return on Equity (25.4%) is considered high.


Financial Health

How is H&R Real Estate Investment Trust's financial position?

Financial Health Score

2/6

Financial Health Score 2/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Debt Coverage

  • Interest Coverage

Financial Position Analysis

Short Term Liabilities: HR.UN's short term assets (CA$197.2M) do not cover its short term liabilities (CA$272.2M).

Long Term Liabilities: HR.UN's short term assets (CA$197.2M) do not cover its long term liabilities (CA$5.5B).


Debt to Equity History and Analysis

Debt Level: HR.UN's net debt to equity ratio (72.6%) is considered high.

Reducing Debt: HR.UN's debt to equity ratio has reduced from 93.2% to 74.8% over the past 5 years.

Debt Coverage: HR.UN's debt is not well covered by operating cash flow (9.7%).

Interest Coverage: HR.UN's interest payments on its debt are well covered by EBIT (3.1x coverage).


Balance Sheet


Dividend

What is H&R Real Estate Investment Trust current dividend yield, its reliability and sustainability?

Dividend Score

1/6

Dividend Score 1/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage


3.85%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: HR.UN's dividend (3.85%) is higher than the bottom 25% of dividend payers in the Canadian market (1.88%).

High Dividend: HR.UN's dividend (3.85%) is low compared to the top 25% of dividend payers in the Canadian market (4.99%).


Stability and Growth of Payments

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

Growing Dividend: HR.UN's dividend payments have fallen over the past 10 years.


Earnings Payout to Shareholders

Earnings Coverage: HR.UN is paying a dividend but the company is unprofitable.


Cash Payout to Shareholders

Cash Flow Coverage: With its reasonably low cash payout ratio (37.8%), HR.UN's dividend payments are well covered by cash flows.


Next Steps

Management

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

1.2yrs

Average management tenure


CEO

Tom Hofstedter (67 yo)

25.42yrs

Tenure

CA$3,600,000

Compensation

Mr. Thomas J. Hofstedter, also known as Tom, served as the President of H&R Real Estate Investment Trust since December 1996 and serves as its Chief Executive Officer since December 1996 and serves as its...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD2.80M) is about average for companies of similar size in the Canadian market ($USD3.41M).

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


Leadership Team

Experienced Management: HR.UN's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

Experienced Board: HR.UN's board of directors are not considered experienced ( 1.9 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: HR.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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

H&R Real Estate Investment Trust's employee growth, exchange listings and data sources


Key Information

  • Name: H&R Real Estate Investment Trust
  • Ticker: HR.UN
  • Exchange: TSX
  • Founded: 1996
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Implied Market Cap: CA$3.859b
  • Market Cap: CA$3.618b
  • Shares outstanding: 293.02m
  • Website: https://www.hr-reit.com

Number of Employees


Location

  • H&R Real Estate Investment Trust
  • 3625 Dufferin Street
  • Suite 500
  • Toronto
  • Ontario
  • M3K 1N4
  • Canada

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/05/17 00:00
End of Day Share Price2022/05/17 00:00
Earnings2022/03/31
Annual Earnings2021/12/31


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.