Canaccord Genuity analyst Mark Rothschild maintained a Hold rating on Crombie Real Estate ate today and set a price target of C$15.00.
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Mark Rothschild has given his Hold rating due to a combination of factors that reflect both positive and cautious elements in Crombie Real Estate’s performance. The company’s recent financial results show a solid increase in funds from operations (FFO) per unit, which rose by 6.3% year-over-year, surpassing expectations. This growth was primarily driven by non-recurring lease termination income and steady same-property net operating income (NOI) growth.
However, despite these positive aspects, there are some concerns that justify a Hold rating. Crombie’s valuation, based on an implied cap rate of 7.0%, trades at a discount compared to its large Canadian retail peers. Furthermore, while the company’s leasing spreads and occupancy rates remain strong, the office portfolio experienced a significant decline in same-property NOI. These mixed signals in Crombie’s financial health and market positioning contribute to the decision to maintain a Hold rating.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a C$15.50 price target.