Granite Real Estate (GRT.UN) AI Stock Analysis

• Market Cap: C$4.66B
• Dividend Yield: 4.39%
• Average Volume (3M): 85.21K
• Price to Earnings (P/E): 14.3
• Beta (1Y): 0.95
• Revenue Growth: 9.81%
• EPS Growth: -3.42%
• Country: CA
• Employees: 70
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Industrial
• EPS (TTM): 1.12
• Shares Outstanding: 60,591,515
• 10 Day Avg. Volume: 73,610
• 30 Day Avg. Volume: 85,207
• PEG Ratio: 0.07
• Price to Book (P/B): 0.76
• Price to Sales (P/S): 7.69
• P/FCF Ratio: 12.93
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: C$88.75
• Price Target Upside: 14.92% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: C$89.00 ▲(15.24% Upside)

Granite Real Estate's overall stock score reflects its strong financial performance, positive technical indicators, and attractive valuation. The positive sentiment from the recent earnings call further supports the stock's outlook, despite some challenges in specific markets and increased expenses.

Positive Factors

Revenue Growth

Consistent revenue growth reflects Granite's ability to capitalize on the demand in the logistics sector, ensuring stable cash flows and supporting long-term expansion.

Strong Balance Sheet

A strong balance sheet with significant asset value and liquidity provides financial stability, enabling strategic investments and resilience against market fluctuations.

Robust Leasing Activity

High leasing activity indicates strong demand for Granite's properties, supporting occupancy rates and rental income, which are crucial for sustained growth.

Negative Factors

Increased G&A Expenses

Rising G&A expenses can pressure profitability, potentially impacting cash flow and limiting funds available for reinvestment or distribution.

Higher Capital Expenditures

Increased capital expenditures may strain cash flow and reduce free cash available for other strategic initiatives, affecting financial flexibility.

Challenges in Greater Toronto Area

Declining rents in a key market like the Greater Toronto Area could signal weakening demand, potentially impacting revenue and growth prospects.

Granite Real Estate Business Overview & Revenue Model

Company Description

Granite Real Estate Investment Trust (GRT.UN) is a Canadian-based real estate investment trust focused on owning, managing, and developing industrial properties primarily in North America and Europe. The company specializes in warehouse and distribution facilities, with a portfolio that includes both single-tenant and multi-tenant properties. Granite aims to provide stable cash distributions to its unitholders through strategic acquisitions and developments in the growing logistics sector.

How the Company Makes Money

Granite Real Estate generates revenue primarily through leasing its industrial properties to tenants under long-term lease agreements. The company's revenue model is centered around rental income, which is derived from both fixed and variable lease components. Key revenue streams include base rent, as well as additional income from property management services and recoveries of property operating expenses. Granite benefits from strong demand in the logistics and e-commerce sectors, which drives occupancy rates and rental growth. The company may also engage in strategic partnerships with logistics firms and developers to enhance its property portfolio and increase its market presence. Overall, Granite's earnings are bolstered by its diversified tenant base and long-term lease agreements, providing stability and predictability in cash flows.

Granite Real Estate Financial Statement Overview

Summary

Granite Real Estate exhibits strong financial performance with consistent revenue growth and robust profitability margins. The balance sheet is stable with a moderate debt-to-equity ratio, though there is room for improvement in return metrics. Cash flow generation remains efficient despite a recent decline in free cash flow growth.

Income Statement

Granite Real Estate has demonstrated consistent revenue growth with a TTM growth rate of 1.54%, indicating a stable upward trajectory. The company maintains strong profitability margins, with a gross profit margin of 82.47% and a net profit margin of 56.27% in the TTM period. However, the net profit margin has decreased from the previous year, suggesting some pressure on net income. Overall, the income statement reflects a robust financial performance with room for improvement in net profitability.

Balance Sheet

The balance sheet shows a moderate debt-to-equity ratio of 0.60, indicating a balanced leverage position. The return on equity (ROE) is relatively low at 6.01% in the TTM period, suggesting limited efficiency in generating profits from equity. The equity ratio stands at 56.95%, reflecting a strong equity base relative to total assets. While the company maintains a stable financial structure, there is potential to enhance profitability and return metrics.

Cash Flow

Granite Real Estate's cash flow statement reveals a slight decline in free cash flow growth by -1.09% in the TTM period, indicating some challenges in cash generation. The operating cash flow to net income ratio is strong at 2.41, suggesting efficient cash conversion. The free cash flow to net income ratio is nearly 1, reflecting effective cash management. Despite the decline in free cash flow growth, the company maintains solid cash flow metrics overall.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	593.87M	569.14M	521.25M	455.58M	393.49M	340.20M
Gross Profit	489.75M	471.99M	435.24M	380.36M	332.68M	293.04M
EBITDA	456.33M	480.48M	203.14M	346.73M	293.51M	260.98M
Net Income	334.19M	360.61M	136.66M	155.77M	1.31B	429.80M
Balance Sheet
Total Assets	9.47B	9.62B	9.07B	9.28B	8.57B	6.75B
Cash, Cash Equivalents and Short-Term Investments	86.42M	126.17M	116.13M	135.08M	402.51M	831.28M
Total Debt	3.21B	3.11B	3.10B	3.07B	2.46B	2.21B
Total Liabilities	4.07B	3.88B	3.78B	3.80B	3.25B	2.83B
Stockholders Equity	5.39B	5.73B	5.28B	5.48B	5.32B	3.92B
Cash Flow
Free Cash Flow	359.52M	338.48M	312.90M	276.69M	261.68M	179.03M
Operating Cash Flow	359.64M	338.61M	313.18M	277.50M	262.26M	244.32M
Investing Cash Flow	-97.25M	-65.46M	-128.13M	-766.56M	-1.03B	-1.07B
Financing Cash Flow	-278.45M	-267.50M	-203.11M	214.56M	333.48M	1.36B

Granite Real Estate Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 77.23
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:GRT.UN, the sentiment is Negative. The current price of 77.23 is below the 20-day moving average (MA) of 78.33, below the 50-day MA of 77.59, and above the 200-day MA of 69.99, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 46.69 is Neutral, neither overbought nor oversold. The STOCH value of 32.74 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:GRT.UN.

Granite Real Estate Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GRT.UN	76 Outperform	C$4.66B	14.30	5.31%	4.39%	9.81%	-3.42%
CRT.UN	75 Outperform	C$3.78B	8.12	11.49%	6.00%	4.11%	35.99%
SRU.UN	72 Outperform	C$4.46B	20.28	4.42%	6.96%	7.01%	-15.80%
DIR.UN	71 Outperform	C$3.42B	16.00	5.27%	5.64%	7.31%	74.70%
CRR.UN	67 Neutral	C$2.75B	-714.49	0.14%	5.87%	6.32%	―
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
FCR.UN	65 Neutral	C$3.93B	15.07	6.18%	4.78%	-0.83%	-28.93%

Granite Real Estate Corporate Events

Granite Real Estate Reports Q3 2025 Results and Announces Distribution Increase

On November 5, 2025, Granite Real Estate Investment Trust announced its third-quarter results for 2025, reporting a revenue increase to $153 million compared to $141.9 million in the same period last year. The company also declared a 4.4% increase in distributions commencing in December 2025, reflecting its strong financial performance and commitment to delivering value to its stakeholders.

The most recent analyst rating on ($TSE:GRT.UN) stock is a Buy with a C$89.00 price target. To see the full list of analyst forecasts on Granite Real Estate stock, see the TSE:GRT.UN Stock Forecast page.

Granite REIT Declares October 2025 Distribution

On October 17, 2025, Granite Real Estate Investment Trust announced a distribution of CDN $0.2833 per unit for October 2025, to be paid on November 14, 2025, to unitholders of record as of October 31, 2025. This announcement reflects Granite’s ongoing commitment to providing returns to its investors and indicates stable financial operations, with no portion of the distribution being subject to U.S. federal tax as effectively connected income.

The most recent analyst rating on ($TSE:GRT.UN) stock is a Buy with a C$89.00 price target. To see the full list of analyst forecasts on Granite Real Estate stock, see the TSE:GRT.UN Stock Forecast page.

Granite REIT Declares September 2025 Distribution

On September 16, 2025, Granite Real Estate Investment Trust announced a distribution of CDN $0.2833 per unit for September 2025, to be paid on October 15, 2025, to unitholders recorded by September 29, 2025. The distribution is confirmed to have no portion constituting effectively connected income for U.S. federal tax purposes, and a qualified notice detailing the distribution’s sources will be issued following the record date. This announcement reflects Granite’s ongoing commitment to providing returns to its investors and maintaining transparency in its financial operations.

The most recent analyst rating on ($TSE:GRT.UN) stock is a Buy with a C$89.00 price target. To see the full list of analyst forecasts on Granite Real Estate stock, see the TSE:GRT.UN Stock Forecast page.

Granite REIT Announces August 2025 Distribution

On August 18, 2025, Granite Real Estate Investment Trust announced a distribution of CDN $0.2833 per unit for August 2025, to be paid on September 15, 2025, to unitholders of record as of August 29, 2025. This declaration reflects Granite’s ongoing commitment to providing returns to its investors and reinforces its stable financial position within the real estate investment sector.

The most recent analyst rating on ($TSE:GRT.UN) stock is a Buy with a C$88.00 price target. To see the full list of analyst forecasts on Granite Real Estate stock, see the TSE:GRT.UN Stock Forecast page.