OTCPK:HRUF.F

Stock Analysis Report

H&R Real Estate Investment Trust

Executive Summary

H&R REIT is one of Canada's largest real estate investment trusts with total assets of approximately $14.3 billion at September 30, 2019.

Rewards

Trading at 46.1% below its fair value

Risk Analysis

Earnings have declined by -0.16% per year over past 5 years

Unstable dividend track record

Profit margins (21.6%) are lower than last year (52.5%)



Snowflake Analysis

Established dividend payer and good value.

Share Price & News

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


Latest Share Price and Events

Stable Share Price: HRUF.F has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.3%

HRUF.F

-0.06%

US REITs

1.1%

US Market


1 Year Return

2.9%

HRUF.F

13.2%

US REITs

17.8%

US Market

Return vs Industry: HRUF.F underperformed the US REITs industry which returned 13.2% over the past year.

Return vs Market: HRUF.F underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

HRUF.FIndustryMarket
7 Day1.3%-0.06%1.1%
30 Day-0.3%0.9%1.4%
90 Day-3.7%-0.2%3.9%
1 Year9.3%2.9%17.9%13.2%20.3%17.8%
3 Year22.2%1.6%34.4%17.7%44.8%35.4%
5 Year22.8%-9.8%56.5%24.2%71.3%52.4%

Price Volatility Vs. Market

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

46.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: HRUF.F ($16.48) is trading below our estimate of fair value ($30.58)

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


Price To Earnings Ratio

PE vs Industry: HRUF.F is good value based on its PE Ratio (26.2x) compared to the REITs industry average (38.6x).

PE vs Market: HRUF.F is poor value based on its PE Ratio (26.2x) compared to the US market (18.4x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: HRUF.F is good value based on its PB Ratio (0.9x) compared to the US REITs industry average (2x).


Next Steps

Future Growth

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

5.9%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if HRUF.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: HRUF.F's revenue (5.9% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: HRUF.F's revenue (5.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

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

-0.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: HRUF.F has high quality earnings.

Growing Profit Margin: HRUF.F's current net profit margins (21.6%) are lower than last year (52.5%).


Past Earnings Growth Analysis

Earnings Trend: HRUF.F's earnings have declined by -0.2% per year over the past 5 years.

Accelerating Growth: HRUF.F's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: HRUF.F had negative earnings growth (-60.5%) over the past year, making it difficult to compare to the REITs industry average (8.3%).


Return on Equity

High ROE: HRUF.F's Return on Equity (3.4%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is H&R 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: HRUF.F has a high level of physical assets or inventory.

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


Financial Institutions Analysis

Asset Level: HRUF.F's level of assets compared to its equity is low.

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

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

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

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

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


Next Steps

Dividend

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

6.32%

Current Dividend Yield


Dividend Yield vs Market

company6.3%marketbottom25%1.4%markettop25%3.7%industryaverage3.7%forecastin3Years6.3%

Current dividend yield vs market & industry

Notable Dividend: HRUF.F's dividend (6.32%) is higher than the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: HRUF.F's dividend (6.32%) is in the top 25% of dividend payers in the US market (3.67%)


Stability and Growth of Payments

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

Growing Dividend: HRUF.F's dividend payments have increased over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonable payout ratio (74.9%), HRUF.F's dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: HRUF.F's dividends in 3 years are forecast to be thoroughly covered by earnings (0.2% payout ratio).


Next Steps

Management

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

8.9yrs

Average management tenure


CEO

Tom Hofstedter (65yo)

23yrs

Tenure

CA$4,141,000

Compensation

Mr. Thomas J. Hofstedter, also known as Tom, has been the President and Chief Executive Officer of H&R Real Estate Investment Trust since December 1996 and H&R Finance Trust since October 2008. Mr. Hofsted ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD3.13M) is below average for companies of similar size in the US market ($USD5.10M).

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


Management Age and Tenure

8.9yrs

Average Tenure

Experienced Management: HRUF.F's management team is seasoned and experienced (8.9 years average tenure).


Board Age and Tenure

19.9yrs

Average Tenure

65.5yo

Average Age

Experienced Board: HRUF.F's board of directors are seasoned and experienced ( 19.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellCA$112,80707 Jun 19
The Clyr Charitable Foundation., Endowment Arm
EntityCompany
Shares6,600
Max PriceCA$17.09
SellCA$69,27925 Mar 19
Patrick Sullivan
EntityIndividual
Role
Operations Professional
Chief Operating Officer of Primaris Management Inc.
Shares4,000
Max PriceCA$17.32
SellCA$65,16622 Mar 19
Cheryl Fried
EntityIndividual
Role
Senior Key Executive
Executive Vice President of Finance
Shares3,755
Max PriceCA$17.35
BuyCA$68,90619 Mar 19
Alexander Avery
EntityIndividual
Role
Member of the Board of Directors
Shares4,000
Max PriceCA$17.23
SellCA$103,63308 Mar 19
Larry Froom
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares6,000
Max PriceCA$17.29
SellCA$51,57808 Mar 19
The FF Charitable Trust, Endowment Arm
EntityCompany
Shares3,000
Max PriceCA$17.19
SellCA$174,07205 Mar 19
Edward Gilbert
EntityIndividual
Role
Member of the Board of Directors
Shares10,000
Max PriceCA$17.41
SellCA$50,67805 Mar 19
Aryah and Faige Lebovic Charitable Trust, Endowment Arm
EntityCompany
Shares2,948
Max PriceCA$17.19
SellCA$171,23420 Feb 19
Edward Gilbert
EntityIndividual
Role
Member of the Board of Directors
Shares10,000
Max PriceCA$17.12
SellCA$77,87020 Dec 18
Aryah and Faige Lebovic Charitable Trust, Endowment Arm
EntityCompany
Shares5,000
Max PriceCA$15.57

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Nathan Uhr

    Chief Operating Officer

    • Tenure: 8.9yrs
    • Compensation: CA$596.68k
  • Tom Hofstedter (65yo)

    President

    • Tenure: 23yrs
    • Compensation: CA$4.14m
  • Larry Froom

    Chief Financial Officer

    • Tenure: 13.2yrs
    • Compensation: CA$1.96m
  • Cheryl Fried

    Executive Vice President of Finance

    • Tenure: 5.9yrs
    • Compensation: CA$521.00k
  • Pat Sullivan (48yo)

    Chief Operating Officer of Primaris Management Inc.

    • Tenure: 0yrs
    • Compensation: CA$858.50k
  • Philippe Lapointe

    Chief Operating Officer of Lantower Residential

    • Tenure: 0yrs
    • Compensation: CA$1.02m
  • Robyn Kestenberg

    Executive Vice President of Corporate Development

    • Tenure: 2.5yrs
    • Compensation: CA$1.25m

Board Members

  • Rob Dickson (61yo)

    • Tenure: 19.9yrs
    • Compensation: CA$175.00k
  • Edward Gilbert (73yo)

    • Tenure: 23.9yrs
    • Compensation: CA$170.00k
  • Laurence Lebovic (73yo)

    • Tenure: 23.9yrs
    • Compensation: CA$175.00k
  • Sandor Hofstedter

    Honorary Chairman

    • Tenure: 0yrs
  • Ronald Rutman (66yo)

    Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CA$215.00k
  • Tom Hofstedter (65yo)

    President

    • Tenure: 23yrs
    • Compensation: CA$4.14m
  • Juli Morrow (66yo)

    • Tenure: 2.5yrs
    • Compensation: CA$120.00k
  • Alex Avery (41yo)

    • Tenure: 2.5yrs
    • Compensation: CA$580.00k
  • Stephen Sender (60yo)

    • Tenure: 3.5yrs
    • Compensation: CA$170.00k

Company Information

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


Key Information

  • Name: H&R Real Estate Investment Trust
  • Ticker: HRUF.F
  • Exchange: OTCPK
  • Founded: 1996
  • Industry: Diversified REITs
  • Sector: Real Estate
  • Market Cap: CA$6.250b
  • Listing Market Cap: CA$4.725b
  • Shares outstanding: 286.05m
  • 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

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
HRUF.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDDec 1997
HR.UNTSX (The Toronto Stock Exchange)YesUnitsCACADDec 1997

Biography

H&R REIT is one of Canada's largest real estate investment trusts with total assets of approximately $14.3 billion at September 30, 2019. H&R REIT has ownership interests in a North American portfolio of h ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 01:06
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
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.