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Crombie Real Estate ate (CRR.UN) AI Stock Analysis

TSE:CRR.UN

Crombie Real Estate ate

(TSX:CRR.UN)

Select Model
Rating:62Neutral
Price Target:CAD 17.50â–²(8.76% Upside)
Action:reiterated
Date:08/10/26

The score is driven primarily by stable underlying fundamentals and a constructive earnings update (strong leasing/occupancy, same-asset NOI growth, solid liquidity and financing execution). These positives are offset by leverage and softer recent cash-flow/earnings momentum, while technical signals remain bearish despite oversold readings. The dividend yield supports valuation, but the negative P/E limits confidence in earnings-based valuation.

Positive Factors
High occupancy & strong leasingSustained ~97.5% committed occupancy and consecutive quarters of double‑digit renewal spreads indicate durable tenant demand and pricing power. This supports stable rent rolls, predictable NOI and distributable cash flow over the next several quarters, reducing vacancy risk.
Negative Factors
Elevated leverage and rising debtMaterial leverage metrics and an upward trend in debt reduce financial flexibility and increase sensitivity to cash‑flow shocks. High debt/EBITDA and sizable secured exposure constrain balance‑sheet room for large development or acquisition activity without higher funding costs or dilution.

Crombie Real Estate ate (CRR.UN) vs. iShares MSCI Canada ETF (EWC)

-5%0%5%10%15%20%25%30%TSE:CRR.UN+13.95%EWC+21.27%Dec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
Market Cap
CAD 3.00B
Dividend Yield
5.68%
Average Volume (3M)
216.26K
Price to Earnings (P/E)
-51.0
Beta (1Y)
0.47
Revenue Growth
3.98%
EPS Growth
-1411.59%
Country
Canada
Employees
281
Sector
Real Estate
Sector Strength
65
Industry
REIT - Diversified

Crombie Real Estate ate Business Overview & Revenue Model

Company Description

Crombie Real Estate Investment Trust ("Crombie") operates as an unincorporated, open-ended real estate investment trust, constituted and governed by the laws of Ontario. The entity is recognized as a premier retail property landlord throughout Canada...

How the Company Makes Money

Crombie makes money primarily by earning rental revenue from tenants occupying its properties. Its core revenue stream is contractual base rent under lease agreements (typically for retail and other commercial space), supplemented by recoveries and r...

Crombie Real Estate ate Earnings Call Summary

Earnings Call Date:Aug 04, 2026(Q2-2026)|% Change Since:-4.39%|Next Earnings Date:Nov 03, 2026
Earnings Call SentimentPositive

The call emphasizes disciplined, repeatable execution: strong leasing (121k sq ft renewals with double-digit spreads), solid same-asset cash NOI growth (3.2%), high occupancy (~97.5%), accretive acquisitions, active nonmajor modernization/development with targeted yields (6%–8%), and a strengthened balance sheet with $478.7M liquidity and successful post-quarter financing at a record tight spread. Headline reported per-unit metrics were pressured by reduced lease termination income, DRIP issuance and higher short-term interest costs, and management is deliberately cautious on new major developments (Marlstone lease-up still underway, modest cost increase and a 4.5%–5.5% yield-on-cost). Overall the positives (operating stability, growth in underlying metrics, strong liquidity and credit execution) meaningfully outweigh the challenges (reported per-unit softness, higher finance costs, and near-term lease-up drag), resulting in a constructive outlook.

Positive Updates

Strong Leasing Results and High Occupancy
Completed 121,000 sq ft of renewals at a first-year growth rate of 11.3% over expiring rents (seventh consecutive quarter of double-digit renewal spreads); secured a 12.7% increase when comparing expiring rates to the weighted average rental rate over the renewal term. Committed occupancy near all-time highs at 97.5% and economic occupancy at 96.6%.

Negative Updates

Reported FFO per Unit Decline and AFFO Flat
On a reported basis FFO per unit was down 2.9% year-over-year and AFFO per unit was essentially unchanged, primarily due to additional units issued under the DRIP, reduced lease termination income, and higher interest expense.

Company Guidance

Crombie guided that it expects continued steady cash‑flow and NOI growth, highlighting Q2 commercial same‑asset property cash NOI of 3.2% and reiterating its long‑term same‑property target of 2–3% (expecting to reach or exceed it in 2026); leasing was strong with 121,000 sq ft of renewals (1st‑year +11.3% vs expiring; +12.7% vs weighted average over the renewal term), 33,000 sq ft of new commercial leases, 160,000 sq ft committed at $28.45/sf (63,000 sq ft of new leases averaged $26.26/sf), committed occupancy ~97.5% and economic occupancy 96.6%; portfolio metrics include annual minimum rent compounding ~4% over three years, weighted average anchor lease term ~10 years, nearly 90% of non‑grocery units ≤15,000 sq ft, and target yield‑on‑costs of 6–8% for non‑major projects; Marlstone remains on track to stabilize in H2 2027 with Crombie’s share of cost ~$72M and expected yield on cost 4.5–5.5% (≈25–30% leased end‑June, >30% end‑July); Q2 financials: property revenue $126.2M (+1.9%), net property income $81.8M (+0.6%), FFO $62.4M ($0.33/unit) and AFFO $55.4M ($0.30/unit) (adjusted FFO/AFFO per unit +3.1%/+3.6% ex lease termination income); balance sheet/liquidity: available liquidity ~$478.7M, unencumbered asset pool ~$4.2B, debt/gross fair value 42.6%, debt/TTM adjusted EBITDA 8.01x, interest coverage 3.4x, ~90% fixed‑rate debt, weighted avg term on unsecured notes 3.3 years, Morningstar DBRS BBB ratings; payout ratios this quarter were 68.2% of FFO and 76.9% of AFFO, DRIP contributes ~$40M/year, and subsequent financing included $300M Series N at 4.518% (spread 124 bps) with $200M Series F redeemed.

Crombie Real Estate ate Financial Statement Overview

Summary

Operating performance is solid with strong profitability and a sharp TTM revenue rebound (~46.8%), but the overall profile is held back by elevated and rising leverage (debt-to-equity ~1.37) and moderating recent profitability (TTM net margin ~23.7% below prior peaks). Cash generation remains decent (FCF ~net income), yet TTM free cash flow fell (~-11.3%) and cash conversion versus EBITDA weakened (OCF/EBITDA ~0.50x).

Income Statement

74Positive

Balance Sheet

58Neutral

Cash Flow

62Positive
Financial statement breakdown
BreakdownTTMDec 2025Dec 2024Dec 2023Dec 2022Dec 2021
Income Statement
Total Revenue508.93M500.07M476.36M444.37M419.59M408.89M
Gross Profit270.56M328.15M307.02M290.84M281.82M283.03M
EBITDA318.20M303.28M332.85M264.47M331.22M324.67M
Net Income110.92M116.48M158.26M98.82M167.80M155.40M
Balance Sheet
Total Assets4.55B4.38B4.43B4.15B4.08B4.02B
Cash, Cash Equivalents and Short-Term Investments01.66M10.02M2.22M6.12M3.92M
Total Debt2.56B2.39B2.42B2.19B2.08B2.25B
Total Liabilities2.72B2.54B2.57B2.32B2.23B2.43B
Stockholders Equity1.83B1.84B1.86B1.82B1.85B1.60B
Cash Flow
Free Cash Flow202.71M269.77M264.12M239.71M233.29M224.65M
Operating Cash Flow203.03M270.14M264.96M239.91M233.54M224.84M
Investing Cash Flow-192.66M-61.24M-100.73M-143.89M-47.28M18.49M
Financing Cash Flow-13.03M-217.26M-154.22M-102.14M-185.29M-302.71M

Crombie Real Estate ate Technical Analysis

Technical Analysis SentimentPositive
Last Price16.09

Price Trends

50DMA15.79Positive
100DMA16.40Negative
200DMA16.10Negative

Market Momentum

MACD0.06Negative
RSI52.36Neutral
STOCH11.65Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CRR.UN, the sentiment is Positive. The current price of 16.09 is above the 20-day moving average (MA) of 15.83, above the 50-day MA of 15.79, and below the 200-day MA of 16.10, indicating a neutral trend. The MACD of 0.06 indicates Negative momentum. The RSI at 52.36 is Neutral, neither overbought nor oversold. The STOCH value of 11.65 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CRR.UN.

Crombie Real Estate ate Peers Comparison

Overall Rating

UnderperformOutperform
Sector (65)

Financial Indicators

TSE:CRR.UN against its peers
NameOverall RatingMarket CapP/E RatioROEDividend YieldRevenue GrowthEPS Growth
TSE:CRT.UNTSE:CRT.UN81OutperformCAD 4.18B7.5312.79%5.53%4.77%24.61%
TSE:FCR.UNTSE:FCR.UN71OutperformCAD 4.88B4.7322.27%3.96%0.07%295.34%
Sector *65Neutral$2.17B12.193.79%4.94%3.15%1.96%
TSE:CRR.UNTSE:CRR.UN62NeutralCAD 3.00B-50.966.03%5.68%3.98%-1411.59%
TSE:BEI.UNTSE:BEI.UN60NeutralCAD 3.05B-92.28-0.66%2.81%4.56%-110.12%
TSE:DIR.UNTSE:DIR.UN57NeutralCAD 3.55B21.843.53%5.56%7.63%-22.77%
TSE:HR.UNTSE:HR.UN53NeutralCAD 2.48B-4.32-13.51%6.40%-6.50%-488.63%

* Real Estate Sector Average

Performance Comparison

-10%0%10%20%30%TSE:CRR.UNTSE:CRT.UNTSE:DIR.UNTSE:FCR.UNTSE:HR.UNTSE:BEI.UNDec '25Jan '26Feb '26Mar '26Apr '26May '26Jun '26Jul '26Aug '26Sep '26Oct '26
TSE:CRR.UN and its peers over the selected period
Show on chartTickerCompany NamePriceChange% Change
TSE:CRR.UNCrombie Real Estate15.941.9113.65%
TSE:CRT.UNCt Real Estate Investment17.392.1113.82%
TSE:DIR.UNDream Industrl Reit12.671.2010.44%
TSE:FCR.UNFirst Capital Realty22.965.1228.67%
TSE:HR.UNH&R Real Estate Staple9.37-1.35-12.59%
TSE:BEI.UNBoardwalk Real Estate Investment Trust61.831.031.70%

Crombie Real Estate ate Corporate Events

Business Operations and StrategyFinancial Disclosures

Crombie REIT Posts Strong Occupancy as It Expands Essential Real Estate Portfolio

Positive
Aug 5, 2026

Crombie REIT reported second-quarter 2026 results that underscore strong operating performance in its necessity-based, grocery-anchored portfolio, with committed occupancy near all-time highs at 97.5% and commercial same-asset property cash NOI up 3....

Business Operations and StrategyDividends

Methanex Declares Quarterly Dividend, Reinforcing Shareholder Return Strategy

Positive
Jul 16, 2026

Methanex’s board of directors has declared a quarterly dividend of US$0.185 per share, payable on September 30, 2026, to common shareholders of record as of September 16, 2026. The announcement underscores the company’s ongoing commitment...

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.

Date of analysis: Aug 10, 2026