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%

TSX:PRV.UN

-0.9%

CA REITs

1.3%

CA Market


1 Year Return

-0.7%

TSX:PRV.UN

6.4%

CA REITs

-0.3%

CA Market

PRV.UN underperformed the REITs industry which returned 6.7% over the past year.

PRV.UN matched the Canada Market (-0.1%) over the past year.


Share holder returns

PRV.UNIndustryMarket
7 Day0%-0.9%1.3%
30 Day1.2%-0.004%3.4%
90 Day-2.6%0.8%1.1%
1 Year9.0%-0.7%12.2%6.4%3.2%-0.3%
3 Year32.3%-0.3%36.3%14.6%19.1%8.4%
5 Year65.9%1.4%64.4%22.2%19.5%2.3%

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?

50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Pro Real Estate Investment Trust's share price is below the future cash flow value, and at a moderate discount (> 20%).

Pro Real Estate Investment Trust's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Pro Real Estate Investment Trust is good value based on earnings compared to the CA REITs industry average.

Pro Real Estate Investment Trust is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Pro Real Estate Investment Trust, we can't assess if its growth is good value.


Price Based on Value of Assets

Pro Real Estate Investment Trust is overvalued based on assets compared to the CA REITs industry average.


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

Pro Real Estate Investment Trust's revenue is expected to grow significantly at over 20% yearly.

Pro Real Estate Investment Trust's earnings are expected to decrease over the next 1-3 years, this is not considered high growth.

Pro Real Estate Investment Trust's revenue growth is expected to exceed the Canada market average.

Pro Real Estate Investment Trust's earnings are expected to decrease over the next 1-3 years, this is below the Canada market average.

Pro Real Estate Investment Trust's earnings are expected to decrease over the next 1-3 years, this is below the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if Pro Real Estate Investment Trust will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

Pro Real Estate Investment Trust has delivered over 20% year on year earnings growth in the past 5 years.

Pro Real Estate Investment Trust's 1-year earnings growth exceeds its 5-year average (137% vs 30.4%)

Pro Real Estate Investment Trust's earnings growth has exceeded the CA REITs industry average in the past year (137% vs 6%).


Return on Equity

Pro Real Estate Investment Trust has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

Pro Real Estate Investment Trust used its assets more efficiently than the CA REITs industry average last year based on Return on Assets.


Return on Capital Employed

Pro Real Estate Investment Trust's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

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


Financial Position Analysis

Pro Real Estate Investment Trust's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

Pro Real Estate Investment Trust's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

Pro Real Estate Investment Trust's level of debt (164.3%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (211.3% vs 164.3% today).

Debt is not well covered by operating cash flow (4.2%, less than 20% of total debt).

Interest payments on debt are not well covered by earnings (EBIT is 1.8x annual interest expense, ideally 3x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0x debt.


Next Steps

Dividend

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

9.00%

Expected Dividend Yield


Dividend Yield and Payments Analysis

Pro Real Estate Investment Trust's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (1.99%).

Pro Real Estate Investment Trust's dividend is above the markets top 25% of dividend payers in Canada (5.85%).

Whilst dividend payments have been stable, Pro Real Estate Investment Trust has been paying a dividend for less than 10 years.

Pro Real Estate Investment Trust has only been paying a dividend for 6 years, and since then there has been no growth.


Current Payout to Shareholders

Dividends paid are not well covered by earnings (0.9x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

6.5yrs

Average management tenure


CEO

Jim Beckerleg (72yo)

6.5yrs

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

6.5yrs

Average Tenure

The average tenure for the Pro Real Estate Investment Trust management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

5.8yrs

Average Tenure

63yo

Average Age

The tenure for the Pro Real Estate Investment Trust board of directors is about average.


Insider Trading

More shares have been bought than sold by Pro Real Estate Investment Trust individual insiders in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

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
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
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$40,33818 Dec 18
Ware Hill Investments Inc.
EntityCompany
Shares6,666.67
Max PriceCA$6.13
BuyCA$9,85018 Dec 18
Gordon Lawlor
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares1,666.67
Max PriceCA$5.91
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
BuyCA$58,00028 Sep 18
Gordon Lawlor
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares8,333.33
Max PriceCA$6.96

Ownership Breakdown


Management Team

  • Jim Beckerleg (72yo)

    President

    • Tenure: 6.5yrs
    • Compensation: CA$618.88k
  • Gordon Lawlor (51yo)

    Executive VP

    • Tenure: 6.5yrs
    • Compensation: CA$468.21k
  • Mark O'Brien

    MD Operations & Director of Acquisitions

    • Tenure: 3.7yrs

Board Members

  • Jim Beckerleg (72yo)

    President

    • Tenure: 6.5yrs
    • Compensation: CA$618.88k
  • Ron Smith (69yo)

    Independent Trustee

    • Tenure: 6.5yrs
    • Compensation: CA$72.17k
  • John Levitt (70yo)

    Chairman of the Board of Trustees

    • Tenure: 6.5yrs
    • Compensation: CA$88.90k
  • Gérard Limoges (79yo)

    Independent Trustee

    • Tenure: 6.5yrs
    • Compensation: CA$87.90k
  • Martin Coté (44yo)

    Independent Trustee

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

    • Tenure: 5yrs
    • 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$278.386m
  • Market Cap: CA$260.288m
  • 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 Analysis2019/09/16 00:17
End of Day Share Price2019/09/13 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.