Canadian Net Real Estate Investment Trust Trust Units AI Stock Analysis
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Canadian Net Real Estate Investment Trust Trust Units (NET.UN) AI Stock Analysis
Canadian Net Real Estate Investment Trust Trust Units
(TSXV:NET.UN)
The score is driven primarily by improving financial momentum and strong margins, balanced against elevated leverage and only moderate debt coverage from operating cash flow. Technicals are supportive with an uptrend across moving averages and positive MACD, and valuation is aided by a reasonable P/E and a solid dividend yield.
Canadian Net Real Estate Investment Trust Trust Units (NET.UN) vs. iShares MSCI Canada ETF (EWC)
- Market Cap
- CAD 126.45M
- Dividend Yield
- 5.80%
- Average Volume (3M)
- 7,630
- Price to Earnings (P/E)
- 9.1
- Beta (1Y)
- 0.18
- Revenue Growth
- 5.86%
- EPS Growth
- -41.72%
- Country
- Canada
- Employees
- 4
- Sector
- General
- Sector Strength
- 55
- Industry
- REIT - Diversified
Canadian Net Real Estate Investment Trust Trust Units Business Overview & Revenue Model
Company Description
Functioning as an open-ended trust, its primary objective is to procure and retain top-tier commercial real estate. These holdings are characterized by triple net leasing arrangements and an absence of management responsibilities.
How the Company Makes Money
Canadian Net Real Estate Investment Trust makes money primarily by earning rental revenue from tenants occupying its properties. Under a net-lease structure, lease agreements commonly require tenants to pay base rent and, in many cases, reimburse pro...
Canadian Net Real Estate Investment Trust Trust Units Earnings Call Summary
The earnings call reflects a strong financial performance with significant FFO growth, full occupancy, and successful lease renewals. However, the slow transaction market and flat rent increases for some leases present challenges. Overall, the sentiment is positive due to the outweighing highlights.
Q2-2025 Updates
Positive Updates
Negative Updates
Company Guidance
During Canadian Net REIT's 2025 Second Quarter Earnings Conference Call, management highlighted several key metrics reflecting the company's robust financial performance and strategic direction. The REIT reported an 8% growth in FFO per unit for the year-to-date, driven by capital recycling and accretive reinvestments. The portfolio maintained a 100% occupancy rate, with a conservative payout ratio of 52%. Leasing activity was strong, with 97% of 2025 expiring leases renewed at an average rental spread of 6.8%, and early renewals for 2026 showing an 11.5% increase. The REIT completed a development at Sainte-Sophie with a 7% yield on cost, generating approximately $70,000 in annual NOI. The company maintained a debt-to-gross asset ratio of 54% excluding convertible debentures, and NOI increased by 4% to $10 million for the six-month period ending June 30, 2025. Despite a slower transactional market, the REIT remains focused on sourcing accretive opportunities, with expectations for potential rate cuts to stimulate future acquisitions.
Canadian Net Real Estate Investment Trust Trust Units Financial Statement Overview
Summary
Operating performance is improving into TTM with resilient revenue (TTM +80%) and strong sector margins (TTM gross ~72%, net ~32%). However, results have been volatile (including a net loss in 2022), leverage remains elevated (debt-to-equity ~1.23 TTM), and cash flow coverage of debt is only modest (OCF ~31% of total debt), which limits flexibility.
Income Statement
72PositiveBalance Sheet
58NeutralCash Flow
63Positive| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 28.29M | 27.98M | 26.12M | 26.55M | 24.73M | 18.95M |
| Gross Profit | 20.33M | 20.22M | 18.92M | 19.43M | 18.37M | 14.32M |
| EBITDA | 18.09M | 24.56M | 14.33M | 25.87M | 2.80M | 14.96M |
| Net Income | 13.78M | 16.67M | 7.10M | 18.22M | -6.49M | 25.09M |
Balance Sheet | ||||||
| Total Assets | 323.80M | 318.72M | 301.32M | 308.35M | 303.06M | 278.17M |
| Cash, Cash Equivalents and Short-Term Investments | 951.18K | 1.91M | 1.57M | 987.72K | 2.20M | 1.78M |
| Total Debt | 175.38M | 173.72M | 167.51M | 174.71M | 180.10M | 144.71M |
| Total Liabilities | 182.12M | 179.55M | 171.88M | 178.86M | 184.37M | 148.35M |
| Stockholders Equity | 141.68M | 139.17M | 129.44M | 129.49M | 118.69M | 129.81M |
Cash Flow | ||||||
| Free Cash Flow | 13.40M | 13.82M | 10.65M | 11.25M | 56.02M | 9.26M |
| Operating Cash Flow | 13.40M | 13.82M | 10.65M | 11.25M | 11.33M | 9.26M |
| Investing Cash Flow | -4.89M | -12.80M | 3.72M | 2.71M | -41.56M | -55.79M |
| Financing Cash Flow | -8.73M | -949.01K | -14.48M | -13.18M | 29.83M | 42.68M |
Canadian Net Real Estate Investment Trust Trust Units Technical Analysis
Price Trends
Market Momentum
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:NET.UN, the sentiment is Positive. The current price of 6.09 is above the 20-day moving average (MA) of 6.01, below the 50-day MA of 6.21, and below the 200-day MA of 6.26, indicating a neutral trend. The MACD of -0.04 indicates Negative momentum. The RSI at 50.99 is Neutral, neither overbought nor oversold. The STOCH value of 17.25 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:NET.UN.
Canadian Net Real Estate Investment Trust Trust Units Peers Comparison
Overall Rating
TSE:HMT78Outperform
TSE:FCD.UN71Outperform- TSE:NET.UN69Neutral
TSE:BTB.UN49Neutral
TSE:TNT.UN41Neutral
Financial Indicators
| Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| TSE:HMT | 78Outperform | CAD 131.53M | 10.09 | 8.26% | ― | 19.14% | -17.91% |
| TSE:FCD.UN | 71Outperform | CAD 254.42M | 8.15 | 10.01% | 7.50% | 5.99% | 66.17% |
| TSE:NET.UN | 69Neutral | CAD 123.77M | 9.15 | 9.90% | 5.80% | 5.86% | -41.72% |
| Sector * | 55Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% |
| TSE:BTB.UN | 49Neutral | CAD 307.83M | 11.76 | 5.44% | 8.45% | -2.15% | -36.29% |
| TSE:TNT.UN | 41Neutral | CAD 108.31M | -6.00 | -4.37% | 8.96% | 5.10% | 48.52% |
* General Sector Average
Performance Comparison
| Show on chart | Ticker | Company Name | Price | Change | % Change |
|---|---|---|---|---|---|
| TSE:NET.UN | Canadian Net Real Estate Investment Trust Trust Units | 6.09 | 0.98 | 19.11% | |
| TSE:BTB.UN | BTB REIT | 3.55 | -0.10 | -2.66% | |
| TSE:FCD.UN | Firm Capital Property | 6.93 | 1.40 | 25.29% | |
| TSE:HMT | Halmont Properties | 1.05 | 0.00 | 0.00% | |
| TSE:TNT.UN | True Nthcommercial | 7.70 | -0.57 | -6.91% |
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 20, 2026