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Choice Properties Real Estate Investment
(TSX:CHP.UN)
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Rating:59Neutral
Price Target:
C$16.50
â–²(6.11% Upside)
Action:Reiterated
Date:07/24/26
The score is driven primarily by mixed financial performance: solid revenue and resilient cash flows but recent net losses and meaningful leverage. Earnings-call details were moderately supportive due to strong occupancy/leasing and reiterated guidance, while technicals are neutral-to-soft in the near term and valuation is helped by the dividend but constrained by loss-driven negative P/E.
Positive Factors
High Occupancy and Strong Leasing
Near-full occupancy and strong renewal spreads support recurring rental income, reduce lease-up risk and demonstrate tenant demand. These characteristics can sustain cash NOI growth as leases mature, particularly across the industrial and necessity-retail portfolio.
Negative Factors
Sustained Net Losses
Recent net losses and elevated earnings volatility weaken retained-earnings support and reduce financial flexibility. If profitability does not recover, the divergence between resilient property cash flow and reported earnings could constrain capital allocation and balance-sheet repair.
Read all positive and negative factors
Positive Factors
Negative Factors
High Occupancy and Strong Leasing
Near-full occupancy and strong renewal spreads support recurring rental income, reduce lease-up risk and demonstrate tenant demand. These characteristics can sustain cash NOI growth as leases mature, particularly across the industrial and necessity-retail portfolio.
Read all positive factors
Choice Properties Real Estate Investment (CHP.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$10.73B
Dividend Yield5.23%
Average Volume (3M)913.37K
Price to Earnings (P/E)―
Beta (1Y)0.44
Revenue Growth4.05%
EPS Growth38.93%
CountryCA
Employees285
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)-0.09
Shares Outstanding328,024,260
10 Day Avg. Volume577,231
30 Day Avg. Volume913,367
Financial Highlights & Ratios
PEG Ratio1.63
Price to Book (P/B)2.34
Price to Sales (P/S)7.55
P/FCF Ratio20.07
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$17.13Price Target Upside10.13% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)0.79
Revenue Forecast (FY)C$1.62B
Choice Properties Real Estate Investment Business Overview & Revenue Model
Company Description
Choice Properties stands as Canada's premier diversified real estate investment trust, diligently owning, managing, and developing a high-caliber portfolio. This impressive collection features 725 properties, collectively encompassing 66.1 million...
How the Company Makes Money
Choice Properties primarily makes money through rental revenue generated from leasing its properties to tenants under contractual lease agreements. The core revenue stream is base rent paid by tenants occupying retail, industrial, and other commer...
Choice Properties Real Estate Investment Earnings Call Summary
Earnings Call Date:Jul 22, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call highlighted strong portfolio fundamentals — high occupancy, robust leasing spreads (19% average), healthy same-asset cash NOI growth (2.8%), substantial industrial renewal spreads (40.2%), solid liquidity (~$2B) and NAV improvement (+1.4% QoQ). These positives were tempered by modest FFO growth (+0.8%), a notable AFFO decline (-6.1% YoY), some quarter-specific planned vacancies and timing-related pressures (retention impacted by two Loblaw nonrenewals and a rezoning delay in Laval), limited disposition activity, and ongoing uncertainty around the timing and financing of the First Capital acquisition. On balance the operating performance, liquidity position, and value-creating development activity outweigh the near-term earnings and timing challenges, but investors should monitor the FCR closing and near-term AFFO dynamics.Positive Updates
High Portfolio Occupancy and Stability
Portfolio occupancy remained near full at 97.7% (down 40 bps QoQ due to planned repositioning vacancies). Retail occupancy was 97.4% and industrial occupancy was 98.6%, reflecting overall strong operating fundamentals.
Negative Updates
AFFO Decline and Earnings Pressure
AFFO per unit was $0.217, down 6.1% YoY, largely due to timing of maintenance capital expenditures and tenant improvements. Higher interest expense from refinancing, higher G&A and lower investment income also tempered FFO/AFFO growth.
Read all updates
Q2-2026 Updates
Positive
Negative
High Portfolio Occupancy and Stability
Portfolio occupancy remained near full at 97.7% (down 40 bps QoQ due to planned repositioning vacancies). Retail occupancy was 97.4% and industrial occupancy was 98.6%, reflecting overall strong operating fundamentals.
Read all positive updates
Company Guidance
Management reiterated guidance (excluding the uncertain FCR transaction) calling for stable occupancy, 2–3% same‑asset cash NOI growth and FFO per diluted unit of $1.08–$1.10 for 2026, with 2026 capital spend broadly in line with prior year and a target close of the FCR deal in H2 (Q4) if approvals proceed. Q2 results supporting the outlook included portfolio occupancy of 97.7% (down 40 bps), FFO of $193M or $0.267/unit (up 0.8% YoY; adjusted FFO growth 1.5%), AFFO $0.217/unit (down 6.1%), same‑asset cash NOI +2.8% (+$6.9M) with retail +1.9% (+$3.7M; 2.4% ex bad debt) and industrial +5.0% (+$2.9M; 5.2% ex reversals). Management expects leasing momentum to continue (average leasing spreads ~19%; retail renewals 643k sq ft and 83k sq ft new leasing with retail renewal spread 12.4% overall and ~20% ex fixed‑rate options; industrial renewals 353k sq ft, 80.6% retention, avg renewal spread 40.2%; recent 2027 Loblaw renewals: 15 locations/3.6M sq ft at 8.8% avg spread covering ~67% of 2027 retail maturities). Balance‑sheet metrics cited in guidance include IFRS NAV $14.73/unit (+$145M QoQ), ~ $2.0B available liquidity (including a $500M credit increase), ~$14.1B unencumbered properties and debt‑to‑EBITDA of 7.0x, while YTD capital recycling is ≈$55M and recent development deliveries (66k sq ft) achieved a blended yield on cost of 27.2%.Choice Properties Real Estate Investment Financial Statement Overview
Summary
Income Statement
52
Neutral
Balance Sheet
56
Neutral
Cash Flow
64
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.44B | 1.42B | 1.37B | 1.43B | 1.26B | 1.29B |
| Gross Profit | 1.03B | 1.02B | 978.57M | 1.04B | 900.64M | 912.01M |
| EBITDA | 342.03M | 236.54M | 1.37B | 1.14B | 1.28B | 956.90M |
| Net Income | -74.28M | -61.19M | 784.44M | 796.69M | 744.25M | 23.01M |
Balance Sheet | ||||||
| Total Assets | 17.96B | 17.91B | 17.56B | 17.31B | 16.82B | 16.17B |
| Cash, Cash Equivalents and Short-Term Investments | 45.74M | 71.18M | 63.39M | 252.42M | 64.74M | 84.30M |
| Total Debt | 6.79B | 6.80B | 6.68B | 6.70B | 6.55B | 6.23B |
| Total Liabilities | 7.30B | 7.47B | 12.66B | 12.94B | 13.00B | 12.86B |
| Stockholders Equity | 4.19B | 4.58B | 4.90B | 4.37B | 3.82B | 3.31B |
Cash Flow | ||||||
| Free Cash Flow | 596.16M | 534.16M | 724.73M | 641.97M | 1.01B | 773.41M |
| Operating Cash Flow | 683.28M | 697.71M | 724.73M | 641.97M | 633.15M | 669.43M |
| Investing Cash Flow | -366.67M | -550.46M | -584.21M | -361.35M | -616.73M | -64.12M |
| Financing Cash Flow | -296.23M | -139.45M | -329.56M | -92.94M | -35.99M | -728.22M |
Choice Properties Real Estate Investment Technical Analysis
Negative
15.55
Price Trends
15.32
Negative
15.54
Negative
15.24
Negative
Market Momentum
-0.16
Negative
42.88
Neutral
48.72
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CHP.UN, the sentiment is Negative. The current price of 15.55 is above the 20-day moving average (MA) of 14.95, above the 50-day MA of 15.32, and above the 200-day MA of 15.24, indicating a bearish trend. The MACD of -0.16 indicates Negative momentum. The RSI at 42.88 is Neutral, neither overbought nor oversold. The STOCH value of 48.72 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:CHP.UN.
Choice Properties Real Estate Investment Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
72 Outperform | C$2.85B | 21.75 | 5.23% | 3.95% | 23.06% | 66.86% | |
70 Outperform | C$4.84B | 4.69 | 22.27% | 3.98% | 0.07% | 295.34% | |
66 Neutral | C$4.55B | 28.72 | 3.03% | 6.93% | -1.11% | -31.75% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | C$3.01B | -51.02 | 6.03% | 5.67% | 3.98% | -1411.59% | |
60 Neutral | C$6.04B | 24.10 | 3.53% | 5.59% | -2.62% | -8.84% | |
59 Neutral | C$10.73B | -158.27 | -1.24% | 5.23% | 4.05% | 38.93% |
* Real Estate Sector Average
TSE:CHP.UN
Choice Properties Real Estate Investment
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Choice Properties Real Estate Investment Corporate Events
Business Operations and StrategyDividends
Choice Properties REIT Declares August 2026 Cash Distribution
Positive
Aug 17, 2026
Choice Properties Real Estate Investment Trust has declared a cash distribution of $0.065 per trust unit for August 2026, equivalent to $0.78 on an annualized basis. The distribution will be paid on September 15, 2026 to unitholders of record as o...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.