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Artis Real Estate Investment (TSE:AX.UN)
TSX:AX.UN
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Artis Real Estate Investment
(TSX:AX.UN)
67Neutral
Artis Real Estate Investment (AX.UN) vs. S&P 500 (SPY)
Market Cap
$771.57M
Dividend Yield8%
Average Volume (3M)171.06K
Price to Earnings (P/E)―
Beta (1Y)1.07
Revenue Growth-10.56%
EPS Growth81.41%
CountryCA
Employees143
SectorReal Estate
Sector Strength65
IndustryREIT - Diversified
Share Statistics
EPS (TTM)-0.58
Shares Outstanding99,557,740
10 Day Avg. Volume193,241
30 Day Avg. Volume171,059
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.89
Price to Cash Flow (P/CF)8.00
P/FCF Ratio4.20
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$7.51Price Target Upside-2.02% Downside
Rating ConsensusHold
Number of Analyst Covering0
Artis Real Estate Investment Business Overview & Revenue Model
Company DescriptionArtis Real Estate Investment Trust (AX.UN) is a diversified Canadian real estate investment trust primarily focused on acquiring and managing commercial properties across North America. The company's portfolio encompasses a wide range of property types, including office, retail, and industrial assets. With a strategic emphasis on high-quality properties in major urban centers, Artis aims to deliver robust returns and sustainable growth for its investors.
How the Company Makes MoneyArtis Real Estate Investment Trust generates revenue primarily through the acquisition, management, and leasing of its diversified portfolio of commercial properties. Key revenue streams include rental income from tenants, which is the largest source of income, and property management fees. Additionally, Artis may engage in strategic property sales, generating capital gains that contribute to its earnings. The company also benefits from partnerships with various property management firms and development projects, enhancing its revenue potential through shared ventures and expansion opportunities. Artis's financial performance is influenced by factors such as occupancy rates, lease agreements, property market conditions, and economic trends affecting the real estate sector.
Artis Real Estate Investment Financial Statement Overview
Summary
Artis Real Estate Investment shows a mixed financial performance. Operational efficiencies are evident, but revenue growth and profitability challenges persist. The balance sheet reflects high leverage, which can be risky. However, stable cash flows provide some cushion against financial volatility.Income Statement
The company's revenue has been declining over the years, with a significant drop from 2019 to 2024. The gross profit margin has remained relatively stable, but the net profit margin has been negative in recent years, indicating ongoing profitability challenges. The EBIT margin remained strong in 2024, suggesting operational efficiency despite revenue challenges.55
Neutral
Balance Sheet
The debt-to-equity ratio has been relatively high, indicating significant leveraging. However, the equity ratio has shown some stability, suggesting a fair portion of assets are funded by equity. The negative trend in stockholders' equity over recent years is a concern, impacting overall financial stability.60
Neutral
Cash Flow
Operating cash flow has been fairly stable, which is positive. However, the free cash flow growth has been inconsistent. The operating cash flow to net income ratio is strong, suggesting good cash generation relative to net income. The cash flow statement indicates that despite declines in revenue, the company maintains healthy cash flows, which is a positive sign.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 300.37M | 335.84M | 372.51M | 419.50M | 458.92M |
| Gross Profit | ||||
| 163.23M | 184.02M | 209.98M | 237.78M | 269.27M |
| EBIT | ||||
| 163.23M | 109.83M | 293.64M | 237.78M | 269.27M |
| EBITDA | ||||
| 53.88M | -217.19M | 294.89M | 232.92M | 265.09M |
| Net Income Common Stockholders | ||||
| -47.41M | -332.07M | -5.29M | 389.18M | 21.54M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 32.79M | 28.94M | 29.17M | 221.47M | 34.70M |
| Total Assets | ||||
| 2.80B | 3.74B | 4.55B | 4.58B | 4.86B |
| Total Debt | ||||
| 1.13B | 1.91B | 2.21B | 1.97B | 2.40B |
| Net Debt | ||||
| 1.10B | 1.88B | 2.19B | 1.74B | 2.36B |
| Total Liabilities | ||||
| 1.22B | 2.02B | 2.32B | 2.12B | 2.53B |
| Stockholders Equity | ||||
| 1.58B | 1.72B | 2.23B | 2.46B | 2.33B |
| Cash Flow | Free Cash Flow | |||
| 79.73M | 79.59M | 140.72M | 202.28M | 176.31M |
| Operating Cash Flow | ||||
| 80.14M | 79.96M | 140.74M | 202.29M | 176.33M |
| Investing Cash Flow | ||||
| 652.11M | 298.39M | -288.99M | 607.47M | 165.96M |
| Financing Cash Flow | ||||
| -730.44M | -378.19M | -46.57M | -622.97M | -350.00M |
Artis Real Estate Investment Technical Analysis
Positive
7.66
Price Trends
7.59
Positive
7.44
Positive
7.18
Positive
Market Momentum
0.04
Positive
55.09
Neutral
18.11
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:AX.UN, the sentiment is Positive. The current price of 7.66 is below the 20-day moving average (MA) of 7.66, above the 50-day MA of 7.59, and above the 200-day MA of 7.18, indicating a bullish trend. The MACD of 0.04 indicates Positive momentum. The RSI at 55.09 is Neutral, neither overbought nor oversold. The STOCH value of 18.11 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:AX.UN.
Artis Real Estate Investment Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $3.55B | 5.60 | 13.02% | 2.25% | 10.56% | -15.69% | |
76 Outperform | C$4.34B | 19.19 | 4.50% | 7.26% | 9.46% | -42.77% | |
67 Neutral | $771.57M | ― | -2.86% | 8.00% | -10.56% | 81.41% | |
63 Neutral | C$2.66B | ― | -2.29% | 5.92% | -6.92% | -310.05% | |
61 Neutral | $4.72B | 17.64 | -3.07% | 10.89% | 5.99% | -21.86% | |
58 Neutral | $2.29B | ― | -5.79% | 11.06% | 4.98% | 19.54% | |
53 Neutral | C$336.63M | ― | -9.20% | 5.76% | 4.16% | -57.38% |
* Real Estate Sector Average
Performance Comparison
TSE:AX.UN
Artis Real Estate Investment
7.66
1.87
32.37%
TSE:D.UN
Dream Office Real Estate Investment
17.65
1.52
9.42%
TSE:BEI.UN
Boardwalk REIT
66.51
-4.77
-6.70%
TSE:AP.UN
Allied Properties Real Estate Investment Trust
16.34
1.07
7.01%
TSE:SRU.UN
SmartCentres Real Estate Investment Trust
25.22
4.21
20.04%
TSE:HR.UN
H&R Real Estate ate Staple
10.14
1.66
19.58%
Artis Real Estate Investment Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: 0.66% | Next Earnings Date: May 8, 2025
Earnings Call Sentiment Neutral
The earnings call highlighted significant achievements in debt reduction and asset dispositions, along with securing new credit facilities. However, challenges with the Cominar investment and the potential impact on future income and distributions were significant concerns. The sentiment is mixed, reflecting both strong financial management and ongoing strategic risks.Highlights
Significant Debt Reduction
Artis reduced its total debt to gross book value from 50.9% at the end of 2023 to 40.2% at the end of 2024. This was achieved through a strategic disposition of assets totaling $972.9 million.
Successful Asset Dispositions
In 2024, Artis sold seven office properties, seven retail properties, one industrial property, two parking lots, and a parcel of development land in Canada, as well as 14 industrial properties and three office properties in the United States.
New Credit Facilities Secured
Artis finalized terms on new three-year senior secured credit facilities totaling $520 million, including a $350 million revolving credit facility and a $170 million non-revolving credit facility.
Net Asset Value Enhancement
Artis continues to repurchase units under its NCIB, buying 7,021,296 common units at an average price significantly below the net asset value of $13.75 per unit, thus enhancing unitholder value.
Lowlights
Cominar Investment Challenges
Artis' investment in Cominar has been negatively impacted by the interest rate environment, leading to an ongoing resolution process that may involve a discount settlement for preferred units.
Potential Income Reduction from Cominar
The equity investment in Cominar is written off, and there is no income booked from preferred investments in Q4 2024, which may affect future income and distribution sustainability.
Uncertain Income from Asset Strategy
Management acknowledges that its strategy will result in lumpy income, with the potential for reduced income affecting distribution sustainability.
Company Guidance
In the Artis Real Estate Investment Trust fourth quarter 2024 results conference call, the company highlighted several key financial metrics and strategic moves. Artis sold various properties in 2024 for a total of $972.9 million, significantly reducing its total debt to gross book value from 50.9% at the end of 2023 to 40.2% by the end of 2024. The REIT also secured new senior secured credit facilities totaling $520 million, comprising a $350 million revolving credit facility and a $170 million non-revolving credit facility. Artis renewed its Normal Course Issuer Bid (NCIB) after purchasing over 7 million common units at a substantial discount to its net asset value of $13.75 per unit. Additionally, the company is engaged in discussions to resolve its investment in Cominar, expecting a resolution that may exceed the carrying value of the junior preferred units. The management expressed a commitment to maintaining distributions despite the anticipated lumpy income from its strategic investment approach.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
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.