Earlier today, PRO Real Estate Investment (TSE:PRV.UN), a Canadian REIT (also known as PROREIT), reported resilient financial results for Q4 2022 and Fiscal 2022. Interestingly, though, there were no analyst estimates to determine if the report was a beat or miss, but let’s dive in, nonetheless.
PROREIT’s Q4-2022 Results
PRV’s total assets came in at $1.04 billion, up 4.6% compared to the previous year. Additionally, its property revenue grew by 9.3% year-over-year for Q4 to C$25.07 million. Notably, PRV’s debt to gross book value improved on a year-over-year basis, falling from 53.1% in 2021 to 49.7% by year-end 2022.
Next, its net operating income (NOI) increased by 9.1% to C$14.58 million, and adjusted funds from operations per share (AFFO/share, a cash-flow metric used by REITs) rose by 3.4% to about C$0.125. Meanwhile, industrial same property NOI grew by 5.0% for Q4, while the industrial segment accounted for 69% of base rent at year-end compared to 64% at the end of the previous year.
The company also achieved a high occupancy rate of 98.5% at the end of the fiscal year, and its diluted AFFO payout ratio was 90.2% for Q4.
Full-Year Results
For the full year, property revenue rose 25.2% to C$97.21 million, and similarly, NOI grew by 24.8% to C$57.74 million. Likewise, AFFO also saw a 24.8% increase to C$31.3 million, but it only grew by 0.7% on a per-share basis, reaching C$0.505/share. Lastly, PRV’s full-year diluted AFFO payout ratio was 89.1%, slightly lower than Q4’s payout ratio.
Does PRV.UN Stock Pay a Dividend?
PROREIT currently pays a 7.7%-yielding dividend — C$0.0375 per share paid every month, adding up to C$0.45 on an annualized basis. However, its yield is near the low end of its historical range, as shown below.
Is PRV.UN Stock a Buy, According to Analysts?
According to just one analyst covering the stock, PRV.UN is a Hold, and the stock has a price target of C$6.75, implying 17.8% upside potential.
