BMO Capital analyst Michael Markidis maintained a Hold rating on CT Real Estate Investment yesterday and set a price target of C$16.50.
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Michael Markidis has given his Hold rating due to a combination of factors related to CT Real Estate Investment’s current performance and future outlook. The company’s Q3/25 results met expectations, with a stable business model that benefits from its strategic relationship with Canadian Tire Corporation. This relationship provides consistent returns, but the REIT’s growth potential is somewhat limited by its reliance on a single tenant and a relatively small market float.
While the REIT’s financial health is solid, with a high occupancy rate and a manageable debt profile, the projected growth in funds from operations (FFO) is modest at 2-3% annually through 2027. The recent increase in the target price reflects a slight upward revision to the net asset value (NAV), but the overall growth prospects remain moderate. Consequently, the Hold rating suggests that while the investment is stable, it may not offer significant upside potential in the near term.
In another report released yesterday, Scotiabank also downgraded the stock to a Hold with a C$17.00 price target.