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

• Market Cap: C$2.47B
• Dividend Yield: 6.37%
• Average Volume (3M): 580.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.79
• Revenue Growth: -6.92%
• EPS Growth: -296.31%
• Country: CA
• Employees: 777
• Sector: Real Estate
• Sector Strength: 71
• Industry: REIT - Diversified
• EPS (TTM): -0.46
• Shares Outstanding: 262,565,580
• 10 Day Avg. Volume: 682,076
• 30 Day Avg. Volume: 580,150
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 3.39
• Price to Cash Flow (P/CF): 8.40
• P/FCF Ratio: 0.00
• 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: 22.08% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

H&R Real Estate Staple faces significant financial challenges, with declining income and increasing leverage. However, positive technical indicators and strategic repositioning towards growth-oriented assets offer some optimism. The valuation is mixed, with a high dividend yield counterbalancing profitability concerns. The earnings call and corporate events suggest a strategic shift that could benefit future performance.

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 extensive portfolio of properties. This includes leasing space in its office, retail, industrial, and residential properties to a variety of tenants. The company benefits from long-term lease agreements, which provide a stable and predictable cash flow. Additionally, H&R engages in property development and redevelopment projects, which contribute to its earnings through increased property values and potential sales. Partnerships and joint ventures with other real estate companies and investors also play a role in enhancing its revenue streams.

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. While the company maintains stable cash flow generation, the negative trends in income and balance sheet metrics underscore potential risks and the need for strategic adjustments to improve financial health.

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
0.00	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: Negative
• Last Price: 9.42
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• 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 Negative. The current price of 9.42 is below the 20-day moving average (MA) of 9.79, below the 50-day MA of 9.85, and below the 200-day MA of 9.70, indicating a bearish trend. The MACD of -0.15 indicates Positive momentum. The RSI at 45.33 is Neutral, neither overbought nor oversold. The STOCH value of 31.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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
GRT.UN	79 Outperform	C$3.78B	10.60	6.55%	5.47%	9.19%	166.98%
SRU.UN	76 Outperform	C$4.18B	18.45	4.50%	7.54%	9.46%	-42.77%
CAR.UN	72 Outperform	C$6.38B	22.68	3.20%	3.79%	4.45%	―
HR.UN	63 Neutral	C$2.47B	―	-2.29%	6.37%	-6.92%	-296.31%
Sector *	60 Neutral	$3.00B	12.40	0.61%	9872.56%	7.62%	-2.59%

H&R Real Estate ate Staple Corporate Events

H&R REIT Announces March 2025 Distribution Amid Strategic Shift

H&R Real Estate Investment Trust has declared a monthly distribution of $0.05 per unit for March 2025, with an annualized distribution of $0.60. The distribution is scheduled for April 15, 2025, with a record date of March 31, 2025. This announcement aligns with H&R’s strategic focus on residential and industrial properties, as the company continues to streamline its operations by selling off office and retail properties. This move is part of H&R’s broader strategy to enhance its market position and create long-term value for its stakeholders.

H&R REIT Reports Successful Strategic Repositioning

H&R REIT announced its financial results for the fourth quarter of 2024, highlighting its successful strategic repositioning towards residential and industrial properties. The company completed the spin-off of its enclosed shopping centers and sold stakes in numerous properties, increasing the residential and industrial segments of its portfolio from 35% to 67%, and boosting its U.S. real estate assets from 44% to 70%. This repositioning underscores H&R’s commitment to simplifying its structure and focusing on growth and income-oriented investments.

H&R REIT Declares January 2025 Distribution Amid Strategic Shift

H&R Real Estate Investment Trust has declared a monthly distribution for January 2025, with a distribution of $0.05 per unit, annualized at $0.60, payable on February 14, 2025 to unitholders on record as of January 31, 2025. This announcement aligns with H&R’s strategy to enhance value for its stakeholders through a focused approach on residential and industrial properties, reflecting its ongoing efforts to streamline operations and optimize its property portfolio.