OTCPK:CMLE.F

Stock Analysis Report

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Cominar Real Estate Investment Trust

Executive Summary

Cominar is one of the largest diversified real estate investment trusts in Canada and is the largest commercial property owner in the Province of Québec.


Snowflake Analysis

Undervalued average dividend payer.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

3.7%

CMLE.F

5.1%

US REITs

2.0%

US Market


1 Year Return

-37.9%

CMLE.F

-10.6%

US REITs

7.1%

US Market

Return vs Industry: CMLE.F underperformed the US REITs industry which returned -14.8% over the past year.

Return vs Market: CMLE.F underperformed the US Market which returned 4.1% over the past year.


Shareholder returns

CMLE.FIndustryMarket
7 Day3.7%5.1%2.0%
30 Day-4.9%1.2%6.0%
90 Day-49.8%-13.9%-0.05%
1 Year-34.1%-37.9%-6.8%-10.6%9.5%7.1%
3 Year-30.3%-42.7%10.3%-3.3%30.7%22.1%
5 Year-44.1%-62.0%37.0%8.8%55.6%38.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CMLE.F ($5.54) is trading below our estimate of fair value ($12.32)

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


Price To Earnings Ratio

PE vs Industry: CMLE.F is good value based on its PE Ratio (3x) compared to the REITs industry average (25.8x).

PE vs Market: CMLE.F is good value based on its PE Ratio (3x) compared to the US market (15.1x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CMLE.F is good value based on its PB Ratio (0.4x) compared to the US REITs industry average (1.3x).


Next Steps

Future Growth

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

-0.07%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if CMLE.F's forecast earnings growth is above the savings rate (2.2%).

Earnings vs Market: Insufficient data to determine if CMLE.F's earnings are forecast to grow faster than the US market

High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CMLE.F's revenue is expected to decline over the next 3 years (-0.07% per year).

High Growth Revenue: CMLE.F's revenue is forecast to decline over the next 3 years (-0.07% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

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

-25.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMLE.F has a large one-off gain of CA$272.0M impacting its March 31 2020 financial results.

Growing Profit Margin: CMLE.F became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: CMLE.F's earnings have declined by -25.7% per year over the past 5 years.

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

Earnings vs Industry: CMLE.F has become profitable in the last year, making it difficult to compare its past year earnings growth to the REITs industry (5.3%).


Return on Equity

High ROE: CMLE.F's Return on Equity (14.6%) is considered low.


Next Steps

Financial Health

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


Financial Position Analysis

Short Term Liabilities: CMLE.F's short term assets (CA$233.8M) do not cover its short term liabilities (CA$547.4M).

Long Term Liabilities: CMLE.F's short term assets (CA$233.8M) do not cover its long term liabilities (CA$3.2B).


Debt to Equity History and Analysis

Debt Level: CMLE.F's debt to equity ratio (114.2%) is considered high.

Reducing Debt: CMLE.F's debt to equity ratio has reduced from 124% to 114.2% over the past 5 years.

Debt Coverage: CMLE.F's debt is not well covered by operating cash flow (5.1%).

Interest Coverage: CMLE.F's interest payments on its debt are not well covered by EBIT (2.3x coverage).


Balance Sheet


Next Steps

Dividend

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

9.22%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CMLE.F's dividend (9.33%) is higher than the bottom 25% of dividend payers in the US market (1.75%).

High Dividend: CMLE.F's dividend (9.33%) is in the top 25% of dividend payers in the US market (4.73%)


Stability and Growth of Payments

Stable Dividend: CMLE.F's dividends per share have been stable in the past 10 years.

Growing Dividend: CMLE.F's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (67.8%), CMLE.F'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?

1.7yrs

Average management tenure


CEO

Sylvain Cossette (61yo)

2.33yrs

Tenure

CA$2,712,667

Compensation

Mr. Sylvain Cossette, B.C.L., L.L.M., has been the Chief Executive Officer and a Non-Independent Trustee at Cominar Real Estate Investment Trust since January 1, 2018 and has been its President since March ...


CEO Compensation Analysis

Compensation vs Market: Sylvain's total compensation ($USD1.94M) is below average for companies of similar size in the US market ($USD3.23M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Sylvain Cossette
President2.33yrsCA$2.71m0.019% CA$192.1k
Marie-Andrée Boutin
Executive VP of Retail & Chief Development Officer1.67yrsCA$703.87k0.0057% CA$58.8k
Antoine Tronquoy
VP of Capital Markets & Interim CFOno datano data0.0059% CA$61.1k
Carl Pepin
Vice President of Finances & Accountingno datano data0.011% CA$112.9k
Mélanie Vallée
Vice President of Data & Technology1.33yrsno datano data
Brigitte Dufour
VP of Legal Affairs & Corporate Secretary1.33yrsno data0.00019% CA$2.0k
Wally Commisso
Executive Vice President of Operations & Property Management2.33yrsno datano data
Michael Racine
Executive Vice President of Leasing - Office & Industrialno datano data0.012% CA$123.0k
Jean Laramée
Executive Vice President of Developmentno dataCA$525.72k0.014% CA$143.0k
Bernard Poliquin
Executive VP of Office & Industrial and Chief Real Estate Operations Officerno datano datano data

1.7yrs

Average Tenure

Experienced Management: CMLE.F's management team is not considered experienced ( 1.7 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Sylvain Cossette
President2.33yrsCA$2.71m0.019% CA$192.1k
René Tremblay
Independent Chairman of the Board1yrCA$127.99k0.025% CA$254.6k
Paul Campbell
Independent Corporate Trustee2.17yrsCA$94.53k0.012% CA$122.2k
Christine Beaubien
Independent Corporate Trustee1yrCA$55.75k0.0017% CA$17.5k
Zachary George
Independent Trustee1.33yrsCA$84.92k1.01% CA$10.5m
Johanne Lépine
Independent Corporate Trustee7yrsCA$92.00k0.015% CA$159.8k
Luc Bachand
Independent Corporate Trustee4yrsCA$104.42k0.011% CA$118.5k
Karen Laflamme
Independent Directorno datano datano data
Mitchell Cohen
Independent Corporate Trustee1yrCA$57.25k0.0092% CA$95.1k
Michel Théroux
Independent Corporate Trustee5yrsCA$98.50kno data

2.2yrs

Average Tenure

62yo

Average Age

Experienced Board: CMLE.F's board of directors are not considered experienced ( 2.2 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: CMLE.F 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

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


Key Information

  • Name: Cominar Real Estate Investment Trust
  • Ticker: CMLE.F
  • Exchange: OTCPK
  • Founded: 1997
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: CA$1.425b
  • Listing Market Cap: CA$1.032b
  • Shares outstanding: 182.44m
  • Website: https://www.cominar.com

Number of Employees


Location

  • Cominar Real Estate Investment Trust
  • Complexe Jules-Dallaire - T3
  • Suite 850
  • Quebec City
  • Quebec
  • G1V 0C1
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CUF.UNTSX (The Toronto Stock Exchange)YesTrust UnitsCACADMay 1999
CMLE.FOTCPK (Pink Sheets LLC)YesTrust UnitsUSUSDMay 1999

Biography

Cominar is one of the largest diversified real estate investment trusts in Canada and is the largest commercial property owner in the Province of Québec. Our portfolio consists of 315 high quality office, retail and industrial properties, totalling 35.9 million square feet located in the Montreal, Québec City and Ottawa areas. Cominar's primary objective is to maximize total return to unitholders by way of tax-efficient distributions and maximizing the unit value through the proactive management of our portfolio. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/05/27 13:56
End of Day Share Price2020/05/21 00:00
Earnings2020/03/31
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.