SmartCentres Real Estate Investment Trust
TSX:SRU.UN
Intrinsic Value
SmartCentres Real Estate Investment Trust is a fully integrated commercial and residential REITs, with its strategically located properties in communities across the country. [ Read More ]
The intrinsic value of one SRU.UN stock under the Base Case scenario is 32.92 CAD. Compared to the current market price of 23.12 CAD, SmartCentres Real Estate Investment Trust is Undervalued by 30%.
Valuation Backtest
SmartCentres Real Estate Investment Trust
Run backtest to discover the historical profit from buying and selling SRU.UN stocks based on their intrinsic value.
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Fundamental Analysis
Stable Results with Strategic Dispositions Planned
2023-Q4 Earnings Call
In Q4 2023, the company reported a modest 4% rise in FFO per unit to $0.59, buoyed by rental income and condominium profits, yet affected by higher interest costs. Adjusted FFO was $0.51 per unit after excluding gains. Net operating income (NOI) remained stable with a slight decline, but same-property NOI grew by 1.7%. Occupancy rates were strong at 98.5%, and the AFFO payout ratio improved y-o-y to 89.4%. The unencumbered asset pool grew slightly to $9.2 billion, with stable unsecured debt levels. A fair value loss was recognized due to cap rate adjustments in investment properties. The company has ample liquidity over $523 million and maintains a conservative debt structure, with 80% at fixed rates. Management is open to strategic dispositions, given favorable market conditions. Credit losses normalized post-COVID at $1.2 million for the quarter and miscellaneous revenues increased, mainly from premium outlet percentage rents and parking.
Balance Sheet Decomposition
SmartCentres Real Estate Investment Trust
Current Assets | 304.9m |
Cash & Short-Term Investments | 34.7m |
Receivables | 203.4m |
Other Current Assets | 66.8m |
Non-Current Assets | 11.6B |
Long-Term Investments | 11.3B |
PP&E | 4.2m |
Intangibles | 42.5m |
Other Non-Current Assets | 232.7m |
Current Liabilities | 859m |
Accounts Payable | 95.4m |
Accrued Liabilities | 17.4m |
Other Current Liabilities | 746.2m |
Non-Current Liabilities | 5.8B |
Long-Term Debt | 4.4B |
Other Non-Current Liabilities | 1.4B |
Earnings Waterfall
SmartCentres Real Estate Investment Trust
Revenue
|
834.6m
CAD
|
Cost of Revenue
|
-321m
CAD
|
Gross Profit
|
513.6m
CAD
|
Operating Expenses
|
-54.4m
CAD
|
Operating Income
|
459.2m
CAD
|
Other Expenses
|
-45.5m
CAD
|
Net Income
|
413.7m
CAD
|
Free Cash Flow Analysis
SmartCentres Real Estate Investment Trust
What is Free Cash Flow?
SRU.UN Profitability Score
Profitability Due Diligence
SmartCentres Real Estate Investment Trust's profitability score is 63/100. The higher the profitability score, the more profitable the company is.
Score
SmartCentres Real Estate Investment Trust's profitability score is 63/100. The higher the profitability score, the more profitable the company is.
SRU.UN Solvency Score
Solvency Due Diligence
SmartCentres Real Estate Investment Trust's solvency score is 25/100. The higher the solvency score, the more solvent the company is.
Score
SmartCentres Real Estate Investment Trust's solvency score is 25/100. The higher the solvency score, the more solvent the company is.
Wall St
Price Targets
SRU.UN Price Targets Summary
SmartCentres Real Estate Investment Trust
According to Wall Street analysts, the average 1-year price target for SRU.UN is 26.68 CAD with a low forecast of 24.75 CAD and a high forecast of 31.5 CAD.
Shareholder Return
SRU.UN Price
SmartCentres Real Estate Investment Trust
Average Annual Return | 2.79% |
Standard Deviation of Annual Returns | 30.3% |
Max Drawdown | -55% |
Market Capitalization | 3.3B CAD |
Shares Outstanding | 144 630 000 |
Percentage of Shares Shorted | 1.62% |
Company Profile
Country
Industry
Market Cap
Dividend Yield
Description
SmartCentres Real Estate Investment Trust is a fully integrated commercial and residential REITs, with its strategically located properties in communities across the country. The company is headquartered in Vaughan, Ontario. The Trust develops, leases, constructs, owns and manages shopping centers, office buildings, high-rise and low-rise condominium and rental residences, seniors’ housing, town house units, and self-storage rental facilities in Canada. Its portfolio featuring approximately168 located properties. The firm's subsidiaries include Smart Limited Partnership, Smart Limited Partnership II, Smart Limited Partnership III, Smart Limited Partnership IV, Smart Oshawa South Limited Partnership, Smart Oshawa Taunton Limited Partnership, Smart Boxgrove Limited Partnership, ONR Limited Partnership and ONR Limited Partnership I. The firm's Project 512 program consists of rental apartments, condos, seniors’ residences and hotels, to be developed under the SmartLiving banner; and retail, office, and storage facilities, to be developed under the SmartCentres banner.
Contact
IPO
Employees
Officers
The intrinsic value of one SRU.UN stock under the Base Case scenario is 32.92 CAD.
Compared to the current market price of 23.12 CAD, SmartCentres Real Estate Investment Trust is Undervalued by 30%.