H&R Real Estate ate Staple (HR.UN) AI Stock Analysis

• Market Cap: C$2.84B
• Dividend Yield: 5.54%
• Average Volume (3M): 533.74K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.84
• Revenue Growth: -6.43%
• EPS Growth: -35204.55%
• Country: CA
• Employees: 777
• Sector: Real Estate
• Sector Strength: 70
• Industry: REIT - Diversified
• EPS (TTM): -0.20
• Shares Outstanding: 262,565,580
• 10 Day Avg. Volume: 504,531
• 30 Day Avg. Volume: 533,735
• PEG Ratio: 0.08
• Price to Book (P/B): 0.60
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.05
• 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$11.50
• Price Target Upside: 6.28% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 58 Neutral
• Price Target: C$10.50 ▼(-2.96%Downside)

H&R Real Estate Staple's overall score reflects significant financial challenges, including declining income and high leverage. Despite stable cash flow and strategic repositioning towards growth-oriented assets, the company faces operational inefficiencies and mixed valuation metrics. Technical indicators show neutral to slightly positive momentum, and the earnings call highlights both strengths in liquidity and growth areas, alongside challenges in the residential segment and geopolitical uncertainties.

Positive Factors

Asset Dispositions

Potential execution of chunkier asset dispositions could serve as catalysts for the units.

U.S. Sunbelt Fundamentals

Improving U.S. sunbelt multifamily fundamentals are expected to boost growth prospects.

Valuation

An undemanding valuation with an implied cap rate of 8.4% drives a risk/reward that skews positive.

Negative Factors

Lease Spreads

Sunbelt blended lease spreads of -2.1% in Q1 improved 380bps sequentially, though Q2 spreads are just into positive territory.

H&R Real Estate ate Staple Business Overview & Revenue Model

Company Description

H&R REIT is one of Canada's largest real estate investment trusts with total assets of approximately $13.3 billion at September 30, 2020. H&R REIT has ownership interests in a North American portfolio of high quality office, retail, industrial and residential properties comprising over 40 million square feet.

How the Company Makes Money

H&R Real Estate Investment Trust generates revenue primarily through rental income from its diversified portfolio of properties. The company leases space to various tenants across different sectors, including residential, industrial, office, and retail. These leases provide a stable source of cash flow, which is further enhanced by strategic property management and development activities. Additionally, H&R REIT engages in property development and redevelopment projects, which can lead to capital appreciation and increased rental income. The trust may also leverage partnerships with other real estate entities to optimize its portfolio and maximize returns. Overall, H&R REIT's earnings are driven by its ability to maintain high occupancy rates, manage operating costs effectively, and strategically expand its asset base.

H&R Real Estate ate Staple Financial Statement Overview

Summary

H&R Real Estate Staple is facing significant financial challenges with declining revenues and profitability, increasing leverage, and operational inefficiencies. The income statement shows decreasing revenue and net income, with gross and net profit margins declining. The balance sheet reveals high reliance on debt, despite a slight improvement in leverage. Cash flow generation is stable but with potential liquidity issues due to volatile free cash flow.

Income Statement

The income statement shows a concerning trend with decreasing revenue and net income over the years. Gross profit margin has declined from 61.9% in 2019 to 61.1% in 2024, indicating reduced operational efficiency. There is a significant drop in net profit margin, from 29.6% in 2019 to -14.6% in 2024, reflecting increasing losses. The absence of EBIT and negative EBITDA in 2024 highlight ongoing operational challenges.

Balance Sheet

The balance sheet reveals a declining equity base and increasing leverage. The debt-to-equity ratio has worsened from 0.91 in 2019 to 0.67 in 2024, reflecting a cautious improvement in leverage but still indicating high reliance on debt. Return on equity has turned negative, signifying inefficiencies in generating returns for shareholders. The equity ratio has also decreased, suggesting a declining proportion of assets financed by equity.

Cash Flow

The cash flow statement presents a mixed picture. Operating cash flow has been relatively stable, but free cash flow has shown volatility. The free cash flow growth rate was negative from 2023 to 2024, highlighting potential liquidity issues. The operating cash flow to net income ratio indicates the company is generating cash despite net losses, but the free cash flow to net income ratio shows challenges in converting revenue into free cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
816.99M	903.63M	834.64M	1.07B	1.10B
	Gross Profit
499.34M	603.09M	534.95M	661.58M	663.67M
	EBIT
471.23M	578.71M	-78.93M	414.00M	453.90M
	EBITDA
-35.07M	627.04M	506.68M	820.29M	651.82M
	Net Income Common Stockholders
-119.71M	61.69M	844.82M	597.91M	-624.56M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
100.35M	64.11M	76.89M	124.14M	62.86M
	Total Assets
10.62B	10.78B	11.41B	10.50B	13.36B
	Total Debt
3.54B	3.72B	3.95B	3.92B	6.40B
	Net Debt
3.44B	3.65B	3.88B	3.80B	6.34B
	Total Liabilities
5.34B	5.59B	5.93B	5.73B	7.28B
	Stockholders Equity
5.28B	5.19B	5.49B	4.77B	6.07B
Cash Flow		Free Cash Flow
234.48M	253.46M	219.47M	405.02M	373.95M
	Operating Cash Flow
274.07M	294.63M	255.05M	452.11M	426.93M
	Investing Cash Flow
173.15M	112.86M	225.95M	1.50B	-183.24M
	Financing Cash Flow
-410.98M	-420.26M	-528.26M	-1.89B	-229.47M

H&R Real Estate ate Staple Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 10.82
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:HR.UN, the sentiment is Positive. The current price of 10.82 is above the 20-day moving average (MA) of 10.50, above the 50-day MA of 10.00, and above the 200-day MA of 9.85, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 69.67 is Neutral, neither overbought nor oversold. The STOCH value of 71.06 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:HR.UN.

H&R Real Estate ate Staple Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BTB.UN	78 Outperform	C$322.17M	8.26	8.03%	8.24%	3.34%	10.20%
PRV.UN	72 Outperform	C$339.56M	12.64	5.68%	8.04%	-1.07%	684.07%
CRR.UN	69 Neutral	C$2.73B	―	-0.49%	6.06%	6.96%	85.15%
Sector *	61 Neutral	$2.83B	10.89	0.41%	9.34%	5.96%	-21.31%
MRT.UN	59 Neutral	C$373.51M	―	-3.77%	4.17%	0.18%	68.25%
HR.UN	58 Neutral	C$2.84B	―	-3.89%	5.54%	-6.43%	-35204.55%
AX.UN	57 Neutral	$737.06M	―	-1.80%	7.99%	-13.42%	86.55%

H&R Real Estate ate Staple Corporate Events

H&R REIT Reports Strong Q1 2025 Results Amid Strategic Asset Repositioning

H&R REIT reported its financial results for the first quarter of 2025, highlighting a successful quarter with a 4.4% growth in same-property net operating income and an occupancy rate of 95.6%. Despite a decrease in total assets and net income compared to the previous year, the company maintained stable funds from operations and a consistent payout ratio, reflecting a robust operational performance amid ongoing strategic asset sales.

The most recent analyst rating on ($TSE:HR.UN) stock is a Hold with a C$11.25 price target. To see the full list of analyst forecasts on H&R Real Estate ate Staple stock, see the TSE:HR.UN Stock Forecast page.

H&R REIT Schedules Q1 2025 Earnings Release and Declares April Distribution

H&R Real Estate Investment Trust announced the release of its first quarter 2025 financial results scheduled for May 14, 2025, followed by a conference call on May 15, 2025. The company also declared a distribution for April 2025, reflecting its ongoing commitment to providing value to unitholders. This announcement underscores H&R’s strategic focus on residential and industrial properties, as it continues to streamline operations and divest from office and retail assets to enhance its market positioning.