TSX:PRV.UN

Stock Analysis Report

Pro Real Estate Investment Trust

Executive Summary

PROREIT is an unincorporated open-ended real estate investment trust owning a diversified portfolio of 84 commercial properties across Canada representing over 3.7 million square feet of GLA, which following the completion of the REIT's announced acquisitions will increase to 91 commercial properties representing over 4.4 million square feet of GLA.

Snowflake

Fundamentals

Good value with proven track record.

Share Price & News

How has Pro 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

0%

PRV.UN

-1.1%

CA REITs

-0.3%

CA Market


1 Year Return

5.0%

PRV.UN

18.4%

CA REITs

0.9%

CA Market

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

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


Share holder returns

PRV.UNIndustryMarket
7 Day0%-1.1%-0.3%
30 Day2.6%4.2%-2.1%
90 Day-1.2%6.4%-1.5%
1 Year15.2%5.0%24.9%18.4%4.4%0.9%
3 Year44.9%9.3%40.7%18.5%15.7%5.4%
5 Year93.6%18.5%68.8%25.7%26.1%7.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Pro Real Estate Investment Trust undervalued based on future cash flows and its price relative to the stock market?

48%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: PRV.UN (CA$7.18) is trading below our estimate of fair value (CA$13.92)

Significantly Undervalued: PRV.UN is trading below fair value by more than 20%.


Price Based on Earnings

PE vs Industry: PRV.UN is good value based on its PE Ratio (9x) compared to the REITs industry average (9.6x).

PE vs Market: PRV.UN is good value based on its PE Ratio (9x) compared to the Canadian market (13.7x).


Price Based on Expected Growth

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


Price Based on Value of Assets

PB vs Industry: PRV.UN is overvalued based on its PB Ratio (1.1x) compared to the CA REITs industry average (1x).


Next Steps

Future Growth

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

-0.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: PRV.UN's earnings are forecast to decline over the next 3 years (-0.2% per year).

Earnings vs Market: PRV.UN's earnings are forecast to decline over the next 3 years (-0.2% per year).

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

Revenue vs Market: PRV.UN's revenue (23.4% per year) is forecast to grow faster than the Canadian market (5.7% per year).

High Growth Revenue: PRV.UN's revenue (23.4% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

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


Next Steps

Past Performance

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

30.4%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PRV.UN's earnings have grown significantly by 30.4% per year over the past 5 years.

Accelerating Growth: PRV.UN's earnings growth over the past year (137%) exceeds its 5-year average (30.4% per year).

Earnings vs Industry: PRV.UN earnings growth over the past year (137%) exceeded the REITs industry 6%.


Return on Equity

High ROE: PRV.UN's Return on Equity (12.5%) is considered low.


Return on Assets

ROA vs Industry: PRV.UN has a higher Return on Assets than the REITs industry average last year.


Return on Capital Employed

ROCE Improving: PRV.UN's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is Pro 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: PRV.UN has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

8.77%

Expected Dividend Yield


Dividend Yield vs Market

company8.8%marketbottom25%2.0%markettop25%6.0%industryaverage5.5%forecastin3Years8.8%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

Notable Dividend: PRV.UN's dividend (8.77%) is higher than the bottom 25% of dividend payers in the Canadian market (2.03%).

High Dividend: PRV.UN's dividend (8.77%) is in the top 25% of dividend payers in the Canadian market (5.98%)

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

Growing Dividend: PRV.UN has only been paying a dividend for 6 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (117.4%), PRV.UN's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

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

6.6yrs

Average management tenure


CEO

Jim Beckerleg (72yo)

6.6yrs

Tenure

CA$618,882

Compensation

Mr. James W. Beckerleg, also known as Jim, has serves as President, Chief Executive Officer at Pro Real Estate Investment Trust since March 2013 and serves as Trustee since March 11, 2013. He was the Presi ...


Management Age and Tenure

6.6yrs

Average Tenure

Experienced Management: PRV.UN's management team is seasoned and experienced (6.6 years average tenure).


Board Age and Tenure

5.8yrs

Average Tenure

63yo

Average Age

Experienced Board: PRV.UN's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

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


Recent Insider Transactions

BuyCA$35,60019 Sep 19
Gordon Lawlor
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares5,000
Max PriceCA$7.12
BuyCA$35,00020 Aug 19
Gérard Limoges
EntityIndividual
Role
Member of the Board of Directors
Independent Trustee
Shares5,000
Max PriceCA$7.00
BuyCA$28,21813 Jun 19
Gordon Lawlor
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares4,000
Max PriceCA$7.06
BuyCA$35,16816 May 19
Gordon Lawlor
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares5,000
Max PriceCA$7.04
BuyCA$2,43108 Mar 19
Gordon Lawlor
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares366.67
Max PriceCA$6.63
BuyCA$44,81831 Jan 19
John Levitt
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board of Trustees
Shares6,821.67
Max PriceCA$6.57
SellCA$50,00908 Jan 19
John Levitt
EntityIndividual
Role
Chairman of the Board
Independent Chairman of the Board of Trustees
Shares8,820
Max PriceCA$5.67
BuyCA$18,90020 Dec 18
Ware Hill Investments Inc.
EntityCompany
Shares3,333.33
Max PriceCA$5.67
BuyCA$27,32820 Dec 18
Gordon Lawlor
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares4,666.67
Max PriceCA$5.94
BuyCA$9,85018 Dec 18
Gordon Lawlor
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares1,666.67
Max PriceCA$5.91
BuyCA$40,33818 Dec 18
Ware Hill Investments Inc.
EntityCompany
Shares6,666.67
Max PriceCA$6.13
BuyCA$35,91006 Dec 18
Gordon Lawlor
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares6,000
Max PriceCA$6.00
BuyCA$13,95005 Dec 18
Gordon Lawlor
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares2,333.33
Max PriceCA$6.00
BuyCA$51,81303 Dec 18
Gordon Lawlor
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares8,333.33
Max PriceCA$6.24
BuyCA$43,60022 Nov 18
Gordon Lawlor
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares6,666.67
Max PriceCA$6.54
BuyCA$62,03420 Nov 18
Gordon Lawlor
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares9,300
Max PriceCA$6.69

Ownership Breakdown


Management Team

  • Jim Beckerleg (72yo)

    President

    • Tenure: 6.6yrs
    • Compensation: CA$618.88k
  • Gordon Lawlor (51yo)

    Executive VP

    • Tenure: 6.6yrs
    • Compensation: CA$468.21k
  • Mark O'Brien

    MD Operations & Director of Acquisitions

    • Tenure: 3.8yrs

Board Members

  • Jim Beckerleg (72yo)

    President

    • Tenure: 6.6yrs
    • Compensation: CA$618.88k
  • Ron Smith (69yo)

    Independent Trustee

    • Tenure: 6.6yrs
    • Compensation: CA$72.17k
  • John Levitt (70yo)

    Independent Chairman of the Board of Trustees

    • Tenure: 6.6yrs
    • Compensation: CA$88.90k
  • Gérard Limoges (79yo)

    Independent Trustee

    • Tenure: 6.6yrs
    • Compensation: CA$87.90k
  • Martin Coté (44yo)

    Independent Trustee

    • Tenure: 4.3yrs
    • Compensation: CA$57.45k
  • Shenoor Jadavji (54yo)

    • Tenure: 5.1yrs
    • Compensation: CA$61.74k
  • Vincent Chiara (57yo)

    Independent Trustee

    • Tenure: 4.3yrs
    • Compensation: CA$58.45k
  • Peter Aghar (51yo)

    • Tenure: 4.3yrs
    • Compensation: CA$57.45k

Company Information

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


Key Information

  • Name: Pro Real Estate Investment Trust
  • Ticker: PRV.UN
  • Exchange: TSX
  • Founded: 2010
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Implied Market Cap: CA$285.544m
  • Market Cap: CA$266.981m
  • Shares outstanding: 39.77m
  • Website: https://www.proreit.com

Location

  • Pro Real Estate Investment Trust
  • 2000 Mansfield Street
  • Suite 1000
  • Montreal
  • Quebec
  • H3A 2Z6
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PRV.UNTSX (The Toronto Stock Exchange)YesTrust UnitsCACADMar 2013

Biography

PROREIT is an unincorporated open-ended real estate investment trust owning a diversified portfolio of 84 commercial properties across Canada representing over 3.7 million square feet of GLA, which followi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 02:53
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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