OTCPK:PPRQ.F

Stock Analysis Report

Choice Properties Real Estate Investment Trust

Executive Summary

Choice Properties, Canada's preeminent diversified real estate investment trust, is the owner, manager and developer of a high quality portfolio comprising 726 properties totaling 65.5 million square feet of gross leasable area.

Rewards

Trading at 37.4% below its fair value

Risk Analysis

Unstable dividend track record

Shareholders have been diluted in the past year



Snowflake Analysis

Average dividend payer and fair value.

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-0.04%

PPRQ.F

-3.1%

US REITs

0.8%

US Market


1 Year Return

13.5%

PPRQ.F

13.0%

US REITs

22.0%

US Market

Return vs Industry: PPRQ.F exceeded the US REITs industry which returned 13% over the past year.

Return vs Market: PPRQ.F underperformed the US Market which returned 22% over the past year.


Shareholder returns

PPRQ.FIndustryMarket
7 Day-0.04%-3.1%0.8%
30 Day2.4%-3.0%1.7%
90 Day-4.4%-3.2%5.2%
1 Year20.0%13.5%17.7%13.0%24.7%22.0%
3 Year21.8%2.8%31.3%14.8%46.9%37.3%
5 Year50.4%13.6%48.4%17.6%65.5%47.3%

Price Volatility Vs. Market

How volatile is Choice Properties 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 Choice Properties Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

37.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PPRQ.F ($10.23) is trading below our estimate of fair value ($16.35)

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


Price To Earnings Ratio

PE vs Industry: PPRQ.F is unprofitable, so we can't compare its PE Ratio to the REITs industry average.

PE vs Market: PPRQ.F is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PPRQ.F is good value based on its PB Ratio (1.5x) compared to the US REITs industry average (1.9x).


Next Steps

Future Growth

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

0.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

Earnings vs Market: Insufficient data to determine if PPRQ.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: PPRQ.F's revenue (0.8% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: PPRQ.F's revenue (0.8% 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 PPRQ.F's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

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

2.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PPRQ.F is currently unprofitable.

Growing Profit Margin: PPRQ.F is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PPRQ.F is unprofitable, but has reduced losses over the past 5 years at a rate of 2.7% per year.

Accelerating Growth: Unable to compare PPRQ.F's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PPRQ.F is unprofitable, making it difficult to compare its past year earnings growth to the REITs industry (8.3%).


Return on Equity

High ROE: PPRQ.F has a negative Return on Equity (-20.73%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Choice Properties 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: PPRQ.F has a high level of physical assets or inventory.

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


Financial Institutions Analysis

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

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

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

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

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

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


Next Steps

Dividend

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

5.49%

Current Dividend Yield


Dividend Yield vs Market

company5.5%marketbottom25%1.4%markettop25%3.7%industryaverage3.8%forecastin3Years5.5%

Current dividend yield vs market & industry

Notable Dividend: PPRQ.F's dividend (5.49%) is higher than the bottom 25% of dividend payers in the US market (1.43%).

High Dividend: PPRQ.F's dividend (5.49%) is in the top 25% of dividend payers in the US market (3.71%)


Stability and Growth of Payments

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

Growing Dividend: PPRQ.F's dividend payments have increased, but the company has only paid a dividend for 6 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (31.1%), PPRQ.F's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: PPRQ.F's dividends in 3 years are forecast to be thoroughly covered by earnings (0.1% payout ratio).


Next Steps

Management

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

1.6yrs

Average board tenure


CEO

Rael Diamond (42yo)

0.6yrs

Tenure

CA$2,402,807

Compensation

Mr. Rael Lee Diamond, CA, has been President and Chief Executive Officer at Choice Properties Real Estate Investment Trust since May 1, 2019 and had been its Chief Operating Officer since May 4, 2018 until ...


CEO Compensation Analysis

Compensation vs Market: Rael's total compensation ($USD1.82M) is below average for companies of similar size in the US market ($USD6.64M).

Compensation vs Earnings: Rael's compensation has increased whilst the company is unprofitable.


Board Age and Tenure

1.6yrs

Average Tenure

64yo

Average Age

Experienced Board: PPRQ.F's board of directors are not considered experienced ( 1.6 years average tenure), which suggests a new board.


Insider Trading

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


Recent Insider Transactions

BuyUS$20,51013 Dec 19
Rashid Wasti
EntityIndividual
Shares2,000
Max PriceUS$10.35
BuyUS$30,72604 Dec 19
Rashid Wasti
EntityIndividual
Shares3,000
Max PriceUS$10.24
BuyUS$30,62828 Nov 19
Rashid Wasti
EntityIndividual
Shares3,000
Max PriceUS$10.21
BuyUS$51,37015 Nov 19
Gordon Andrew Currie
EntityIndividual
Shares5,000
Max PriceUS$10.27
BuyUS$30,57611 Nov 19
Rashid Wasti
EntityIndividual
Shares3,000
Max PriceUS$10.25
BuyUS$43,40023 Sep 19
Karen Kinsley
EntityIndividual
Role
Member of the Board of Directors
Shares4,000
Max PriceUS$10.85
BuyUS$29,83929 May 19
Rashid Wasti
EntityIndividual
Shares3,000
Max PriceUS$10.65
BuyUS$15,17423 May 19
Rashid Wasti
EntityIndividual
Shares1,500
Max PriceUS$10.12
BuyUS$37,070,93210 May 19
Wittington Investments Limited
EntityCompany
Shares3,805,000
Max PriceUS$9.74
SellUS$21,23229 Mar 19
Dallas Wingerak
EntityIndividual
Shares2,000
Max PriceUS$10.62
BuyUS$15,41119 Mar 19
Rashid Wasti
EntityIndividual
Shares1,500
Max PriceUS$10.27
SellUS$895,41010 Mar 19
Rael Diamond
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares88,120
Max PriceUS$10.16
BuyUS$895,41010 Mar 19
Rael Diamond
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares88,120
Max PriceUS$10.16
BuyUS$895,41010 Mar 19
Rael Diamond
EntityIndividual
Role
Chief Executive Officer
President & CEO
Shares88,120
Max PriceUS$10.16
BuyUS$10,30427 Feb 19
Rashid Wasti
EntityIndividual
Shares1,000
Max PriceUS$10.30
BuyUS$4,221,02408 Jan 19
Stephen Johnson
EntityIndividual
Shares456,673
Max PriceUS$9.56
BuyUS$8,41701 Jan 19
Rashid Wasti
EntityIndividual
Shares1,000
Max PriceUS$8.42
BuyUS$8,72521 Dec 18
Rashid Wasti
EntityIndividual
Shares1,000
Max PriceUS$8.73

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 11.7%.


Management Team

  • Mario Barrafato (54yo)

    Chief Financial Officer

    • Tenure: 1.6yrs
    • Compensation: CA$1.62m
  • Rael Diamond (42yo)

    President & CEO

    • Tenure: 0.6yrs
    • Compensation: CA$2.40m
  • Adam Walsh (45yo)

    VP, General Counsel & Secretary

    • Tenure: 0yrs
  • Kristine Hill

    Vice President of Human Resources

    • Tenure: 0yrs

Board Members

  • Graeme Eadie (67yo)

    Lead Trustee

    • Tenure: 1.4yrs
    • Compensation: CA$128.74k
  • Tony Graham (62yo)

    • Tenure: 2.7yrs
    • Compensation: CA$138.00k
  • R. Michael Latimer

    • Tenure: 1.6yrs
    • Compensation: CA$76.74k
  • Karen Kinsley (62yo)

    • Tenure: 1.6yrs
    • Compensation: CA$77.20k
  • Dale Ponder (62yo)

    • Tenure: 0.6yrs
  • Chris Clark (65yo)

    • Tenure: 6.9yrs
    • Compensation: CA$120.00k
  • Galen Weston (46yo)

    Chairman

    • Tenure: 0.9yrs
    • Compensation: CA$43.47k
  • Nancy H. Lockhart (64yo)

    • Tenure: 0.6yrs
  • Kerry Adams (66yo)

    • Tenure: 6.9yrs
    • Compensation: CA$133.00k
  • Paul Weiss (71yo)

    • Tenure: 6.9yrs
    • Compensation: CA$128.00k

Company Information

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


Key Information

  • Name: Choice Properties Real Estate Investment Trust
  • Ticker: PPRQ.F
  • Exchange: OTCPK
  • Founded:
  • Industry: Retail REITs
  • Sector: Real Estate
  • Implied Market Cap: CA$9.439b
  • Market Cap: CA$3.168b
  • Listing Market Cap: CA$7.150b
  • Shares outstanding: 700.25m
  • Website: https://www.choicereit.ca

Number of Employees


Location

  • Choice Properties Real Estate Investment Trust
  • 22 St. Clair Avenue East
  • Suite 500
  • Toronto
  • Ontario
  • M4T 2S5
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CHP.UNTSX (The Toronto Stock Exchange)YesUnitsCACADJul 2013
PPRQ.FOTCPK (Pink Sheets LLC)YesUnitsUSUSDJul 2013

Biography

Choice Properties, Canada's preeminent diversified real estate investment trust, is the owner, manager and developer of a high quality portfolio comprising 726 properties totaling 65.5 million square feet  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/16 00:46
End of Day Share Price2019/12/13 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.