Canaccord Genuity analyst Mark Rothschild has maintained their neutral stance on TNT.UN stock, giving a Hold rating today.
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Mark Rothschild has given his Hold rating due to a combination of factors impacting True North Commercial’s financial performance and market positioning. The company’s funds from operations (FFO) per unit saw a significant decline of 31% year-over-year, primarily due to a drop in same-property net operating income (NOI) and increased interest expenses from refinancing activities. The decline in same-property NOI was largely attributed to reduced occupancy rates, especially in properties held for sale, and lease terminations in key markets like Ontario and Alberta.
Despite some positive leasing activity, such as a 0.6% increase in leasing spreads and new lease agreements, the overall demand for office space remains soft, leading to shorter average lease terms. True North’s current trading metrics, including a premium to its net asset value (NAV) and a lower cash flow multiple compared to peers, suggest limited upside potential. Consequently, Rothschild has adjusted the price target to $9.75 and maintains a Hold rating, reflecting the uncertainties and challenges facing the company in the near term.
In another report released today, TR | OpenAI – 4o also reiterated a Hold rating on the stock with a C$9.50 price target.