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SmartCentres Real Estate Investment Trust
(TSX:SRU.UN)
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Rating:66Neutral
Price Target:
C$31.00
â–²(11.07% Upside)
Action:Reiterated
Date:08/10/26
The score is driven primarily by solid underlying financial performance (stable revenues and strong free cash flow) and a generally constructive earnings-call outlook on occupancy, NOI growth, and leasing. These positives are tempered by meaningful leverage and weaker profitability/returns, while technical signals remain soft despite oversold readings. Valuation is mixed: a strong yield is offset by a high P/E.
Positive Factors
High Occupancy and Leasing
Very high occupancy and sustained leasing activity support recurring rental income and reduce vacancy risk. Re-leasing former anchor space to stronger retail and service tenants can preserve traffic and improve portfolio resilience over time.
Negative Factors
Elevated Leverage
High leverage reduces financial flexibility and makes cash flow more sensitive to interest costs, property values and operating setbacks. It may constrain acquisitions or development spending and increase dependence on disciplined refinancing and asset management.
Read all positive and negative factors
Positive Factors
Negative Factors
High Occupancy and Leasing
Very high occupancy and sustained leasing activity support recurring rental income and reduce vacancy risk. Re-leasing former anchor space to stronger retail and service tenants can preserve traffic and improve portfolio resilience over time.
Read all positive factors
SmartCentres Real Estate Investment Trust (SRU.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$4.52B
Dividend Yield6.98%
Average Volume (3M)304.94K
Price to Earnings (P/E)28.5
Beta (1Y)0.56
Revenue Growth-1.11%
EPS Growth-31.75%
CountryCA
Employees342
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.93
Shares Outstanding144,708,790
10 Day Avg. Volume275,228
30 Day Avg. Volume304,942
Financial Highlights & Ratios
PEG Ratio3.04
Price to Book (P/B)0.88
Price to Sales (P/S)4.95
P/FCF Ratio12.23
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$31.44Price Target Upside12.64% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering4
EPS Forecast (FY)2.14
Revenue Forecast (FY)C$950.97M
SmartCentres Real Estate Investment Trust Business Overview & Revenue Model
Company Description
SmartCentres Real Estate Investment Trust (SRU-UN.TO) holds a prominent position as a fully integrated real estate investment trust in Canada. Its distinguished portfolio encompasses 166 strategically located properties throughout the country. The...
How the Company Makes Money
SmartCentres makes money primarily by leasing space in its properties and collecting rent and related recoveries from tenants. The core revenue stream is contractual base rent under long-term commercial leases, which is supplemented by percentage ...
SmartCentres Real Estate Investment Trust Earnings Call Summary
Earnings Call Date:Aug 06, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 06, 2026
Earnings Call Sentiment Positive
The call presented a broadly positive operational picture—strong occupancy (98.1%), solid same-property NOI growth (2.6% / 4.4% ex-anchors), meaningful leasing activity (~250k sq ft signed), high cash collections (~99%), and an active, accretive development pipeline with substantial liquidity and interest-rate protection (88% fixed). Offsetting these positives was a material fair value loss of $196.2 million tied to deferred development/density expectations, a small decline in adjusted FFO to $0.54, rising tenant receivables (seasonal but up), and a relatively high adjusted debt/EBITDA of 9.8x. On balance the operational momentum and balance-sheet liquidity were emphasized as outweighing the near-term valuation adjustments and development timing risks.Positive Updates
Same-Property NOI Growth
Same-property NOI increased 2.6% for the quarter and 4.4% excluding anchor tenants, indicating ongoing rent and operating strength across the stabilized portfolio.
Negative Updates
Significant Fair Value Loss on Investment Properties
The REIT recorded a fair value loss of $196.2 million on its investment properties portfolio, primarily attributable to deferral of development activities on several properties and modest discount rate changes—reflecting delayed density/development timelines.
Read all updates
Q2-2026 Updates
Positive
Negative
Same-Property NOI Growth
Same-property NOI increased 2.6% for the quarter and 4.4% excluding anchor tenants, indicating ongoing rent and operating strength across the stabilized portfolio.
Read all positive updates
Company Guidance
Management guided to a continuation of Q2 momentum into H2 while pursuing measured retail expansion around major anchors, noting that Toronto Premium Outlets expansion will start construction in Q4 (~100,000 sq ft, average rents in the triple digits) and the 200,000 sq ft Canadian Tire in Leaside/Rosedale is near completion with turnover expected in the next few months; development exposure is ~12–12.5% of asset value with a target cadence of ~3 shopping‑center deliveries/under construction annually by 2027. Key financial and operating metrics cited as part of that guidance: same‑property NOI +2.6% for the quarter (+4.4% ex‑anchors), occupancy ~98.1% (in‑place and committed), ~0.25 million sq ft of leases signed in Q2, 86% of 2026 lease maturities executed, rental lift +6.6% all‑in (≈12% ex‑anchors), cash collection ~99%, FFO $0.58/unit (FFO with adjustments $0.54/unit vs $0.55 prior), distributions maintained at $1.85/unit annualized with a 90.5% AFFO payout ratio (rolling 12 months), adjusted debt/adjusted EBITDA 9.8x, weighted average debt term 2.9 years, 88% of debt fixed, liquidity ~$715M (or ~$965M including accordion), a $196.2M fair‑value loss on investment properties this quarter, and 9 projects under construction.SmartCentres Real Estate Investment Trust Financial Statement Overview
Summary
Income Statement
72
Positive
Balance Sheet
66
Positive
Cash Flow
74
Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 934.74M | 927.28M | 918.36M | 929.40M | 804.60M | 780.76M |
| Gross Profit | 562.17M | 563.04M | 547.51M | 608.38M | 521.16M | 501.24M |
| EBITDA | 371.71M | 486.19M | 478.63M | 681.02M | 498.73M | 686.84M |
| Net Income | 157.15M | 251.81M | 236.75M | 413.70M | 811.11M | 475.28M |
Balance Sheet | ||||||
| Total Assets | 12.06B | 12.14B | 11.94B | 11.91B | 11.70B | 11.29B |
| Cash, Cash Equivalents and Short-Term Investments | 44.89M | 51.55M | 37.69M | 34.74M | 35.26M | 62.23M |
| Total Debt | 5.26B | 5.21B | 5.05B | 5.00B | 4.98B | 4.85B |
| Total Liabilities | 5.89B | 5.79B | 5.60B | 5.55B | 5.54B | 5.45B |
| Stockholders Equity | 5.08B | 5.23B | 5.24B | 5.27B | 5.13B | 4.88B |
Cash Flow | ||||||
| Free Cash Flow | 390.11M | 375.48M | 373.66M | 328.95M | 369.17M | 371.27M |
| Operating Cash Flow | 392.10M | 377.44M | 374.21M | 330.85M | 370.76M | 371.62M |
| Investing Cash Flow | -226.45M | -186.20M | -155.53M | 1.52M | -121.39M | -413.17M |
| Financing Cash Flow | -154.58M | -177.38M | -215.73M | -332.89M | -276.35M | -690.81M |
SmartCentres Real Estate Investment Trust Technical Analysis
Negative
27.91
Price Trends
27.61
Negative
28.32
Negative
27.22
Negative
Market Momentum
-0.29
Negative
38.55
Neutral
44.59
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:SRU.UN, the sentiment is Negative. The current price of 27.91 is above the 20-day moving average (MA) of 26.69, above the 50-day MA of 27.61, and above the 200-day MA of 27.22, indicating a bearish trend. The MACD of -0.29 indicates Negative momentum. The RSI at 38.55 is Neutral, neither overbought nor oversold. The STOCH value of 44.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:SRU.UN.
SmartCentres Real Estate Investment Trust Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | C$582.17M | 9.42 | 11.07% | 5.31% | 2.84% | 78.07% | |
73 Outperform | C$4.13B | 7.43 | 12.79% | 5.59% | 4.77% | 24.61% | |
72 Outperform | C$2.87B | 21.70 | 5.23% | 3.96% | 23.06% | 66.86% | |
70 Outperform | C$4.85B | 4.71 | 22.27% | 3.97% | 0.07% | 295.34% | |
66 Neutral | C$4.52B | 28.49 | 3.03% | 6.98% | -1.11% | -31.75% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
60 Neutral | C$6.03B | 24.09 | 3.53% | 5.59% | -2.62% | -8.84% |
* Real Estate Sector Average
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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.