TSXV:FRO.UN

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Fronsac Real Estate Investment Trust

Executive Summary

Fronsac Real Estate Investment Trust is an open-ended trust that acquires and owns high quality triple net and management-free commercial real estate properties. More Details


Snowflake Analysis

Fair value with limited growth.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: FRO.UN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

FRO.UN

-1.9%

CA REITs

-1.2%

CA Market


1 Year Return

1.4%

FRO.UN

-26.0%

CA REITs

-4.5%

CA Market

Return vs Industry: FRO.UN exceeded the Canadian REITs industry which returned -25.5% over the past year.

Return vs Market: FRO.UN exceeded the Canadian Market which returned -3.8% over the past year.


Shareholder returns

FRO.UNIndustryMarket
7 Day0%-1.9%-1.2%
30 Day14.8%-2.4%-0.03%
90 Day34.6%-2.7%0.9%
1 Year5.8%1.4%-21.8%-26.0%-1.0%-4.5%
3 Year48.5%32.1%1.9%-13.7%6.4%-4.0%
5 Year124.4%86.7%22.8%-7.5%34.5%13.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

31.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FRO.UN (CA$0.7) is trading below our estimate of fair value (CA$1.02)

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


Price To Earnings Ratio

PE vs Industry: FRO.UN is poor value based on its PE Ratio (8.6x) compared to the CA REITs industry average (7.6x).

PE vs Market: FRO.UN is good value based on its PE Ratio (8.6x) compared to the Canadian market (16.3x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FRO.UN is overvalued based on its PB Ratio (1.4x) compared to the CA REITs industry average (0.8x).


Next Steps

Future Growth

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

21.7%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if FRO.UN's forecast earnings growth is above the savings rate (1.7%).

Earnings vs Market: Insufficient data to determine if FRO.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: FRO.UN's revenue (21.7% per year) is forecast to grow faster than the Canadian market (5.8% per year).

High Growth Revenue: FRO.UN's revenue (21.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

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

13.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FRO.UN has a large one-off gain of CA$5.5M impacting its June 30 2020 financial results.

Growing Profit Margin: FRO.UN became profitable in the past.


Past Earnings Growth Analysis

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

Accelerating Growth: FRO.UN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: FRO.UN has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (15.1%).


Return on Equity

High ROE: FRO.UN's Return on Equity (14.4%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: FRO.UN's short term assets (CA$2.3M) do not cover its short term liabilities (CA$15.4M).

Long Term Liabilities: FRO.UN's short term assets (CA$2.3M) do not cover its long term liabilities (CA$69.5M).


Debt to Equity History and Analysis

Debt Level: FRO.UN's debt to equity ratio (111.5%) is considered high.

Reducing Debt: FRO.UN's debt to equity ratio has reduced from 119% to 111.5% over the past 5 years.

Debt Coverage: FRO.UN's debt is not well covered by operating cash flow (5.3%).

Interest Coverage: FRO.UN's interest payments on its debt are not well covered by EBIT (2.9x coverage).


Balance Sheet


Next Steps

Dividend

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

3.65%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: FRO.UN's dividend (3.65%) is higher than the bottom 25% of dividend payers in the Canadian market (1.69%).

High Dividend: FRO.UN's dividend (3.65%) is low compared to the top 25% of dividend payers in the Canadian market (5.85%).


Stability and Growth of Payments

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

Growing Dividend: FRO.UN's dividend payments have increased, but the company has only paid a dividend for 8 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (53.8%), FRO.UN's dividend payments are 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

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

4.5yrs

Average board tenure


CEO

Jason Parravano

3.58yrs

Tenure

CA$153,750

Compensation

Mr. Jason Parravano CA, CPA has been Chief Executive Officer and President of Fronsac Real Estate Investment Trust since March 15, 2017 and serves as its Trustee since May 24, 2019. Mr. Parravano has an ex ...


CEO Compensation Analysis

Compensation vs Market: Jason's total compensation ($USD116.84K) is below average for companies of similar size in the Canadian market ($USD170.66K).

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


Board Members

NamePositionTenureCompensationOwnership
Jason Parravano
President3.58yrsCA$153.75k0.51%
CA$ 530.5k
Michael Zakuta
Independent Trustee8.42yrsno data6.9%
CA$ 7.2m
Michel Trudeau
Independent Chairman0.42yrno data2.79%
CA$ 2.9m
Katia Marquier
Independent Trustee3.08yrsno data0.095%
CA$ 98.7k
Guy Dancosse
Independent Trustee4.5yrsCA$5.00kno data
Guy Laframboise
Independent Trustee6.08yrsno data4.48%
CA$ 4.7m
Francois-Olivier Laplante
Independent Trustee4.5yrsno data1.82%
CA$ 1.9m

4.5yrs

Average Tenure

60yo

Average Age

Experienced Board: FRO.UN's board of directors are considered experienced (4.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 25.9%.


Top Shareholders

Company Information

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


Key Information

  • Name: Fronsac Real Estate Investment Trust
  • Ticker: FRO.UN
  • Exchange: TSXV
  • Founded:
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: CA$104.408m
  • Shares outstanding: 147.05m
  • Website: https://www.en.fronsacreit.com

Location

  • Fronsac Real Estate Investment Trust
  • 106 Gun Avenue
  • Pointe-Claire
  • Quebec City
  • Quebec
  • H9R 3X3
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FRO.UNTSXV (TSX Venture Exchange)YesTrust UnitsCACADAug 2008

Biography

Fronsac Real Estate Investment Trust is an open-ended trust that acquires and owns high quality triple net and management-free commercial real estate properties.


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/20 00:14
End of Day Share Price2020/10/19 00:00
Earnings2020/06/30
Annual Earnings2019/12/31


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.