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INTERRENT REAL ESTATE INVEST (IIP-UN.CA) Stock Fundamental Analysis

TSX:IIP-UN - Toronto Stock Exchange - CA46071W2058 - REIT - Currency: CAD

9.82  -0.19 (-1.9%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to IIP-UN. IIP-UN was compared to 16 industry peers in the Residential REITs industry. Both the profitability and the financial health of IIP-UN get a neutral evaluation. Nothing too spectacular is happening here. While showing a medium growth rate, IIP-UN is valued expensive at the moment.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

In the past year IIP-UN was profitable.
IIP-UN had a positive operating cash flow in the past year.
Each year in the past 5 years IIP-UN has been profitable.
IIP-UN had a positive operating cash flow in each of the past 5 years.
IIP-UN.CA Yearly Net Income VS EBIT VS OCF VS FCFIIP-UN.CA Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

1.2 Ratios

IIP-UN has a Return On Assets of -0.50%. This is comparable to the rest of the industry: IIP-UN outperforms 50.00% of its industry peers.
IIP-UN has a Return On Equity (-0.84%) which is comparable to the rest of the industry.
IIP-UN has a Return On Invested Capital of 2.49%. This is in the lower half of the industry: IIP-UN underperforms 68.75% of its industry peers.
IIP-UN had an Average Return On Invested Capital over the past 3 years of 2.09%. This is in line with the industry average of 2.94%.
The last Return On Invested Capital (2.49%) for IIP-UN is above the 3 year average (2.09%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA -0.5%
ROE -0.84%
ROIC 2.49%
ROA(3y)4.49%
ROA(5y)6.39%
ROE(3y)7.67%
ROE(5y)10.53%
ROIC(3y)2.09%
ROIC(5y)2.11%
IIP-UN.CA Yearly ROA, ROE, ROICIIP-UN.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 5 10 15 20

1.3 Margins

IIP-UN's Profit Margin has declined in the last couple of years.
IIP-UN has a better Operating Margin (59.59%) than 75.00% of its industry peers.
In the last couple of years the Operating Margin of IIP-UN has remained more or less at the same level.
Looking at the Gross Margin, with a value of 77.27%, IIP-UN belongs to the top of the industry, outperforming 93.75% of the companies in the same industry.
IIP-UN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 59.59%
PM (TTM) N/A
GM 77.27%
OM growth 3Y1.09%
OM growth 5Y0.87%
PM growth 3Y-25.51%
PM growth 5Y-21.71%
GM growth 3Y0.18%
GM growth 5Y-0.22%
IIP-UN.CA Yearly Profit, Operating, Gross MarginsIIP-UN.CA Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 50 100 150 200 250

4

2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so IIP-UN is destroying value.
Compared to 1 year ago, IIP-UN has more shares outstanding
The number of shares outstanding for IIP-UN has been increased compared to 5 years ago.
Compared to 1 year ago, IIP-UN has an improved debt to assets ratio.
IIP-UN.CA Yearly Shares OutstandingIIP-UN.CA Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M
IIP-UN.CA Yearly Total Debt VS Total AssetsIIP-UN.CA Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B 4B

2.2 Solvency

Based on the Altman-Z score of 1.12, we must say that IIP-UN is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.12, IIP-UN belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
IIP-UN has a debt to FCF ratio of 23.88. This is a negative value and a sign of low solvency as IIP-UN would need 23.88 years to pay back of all of its debts.
The Debt to FCF ratio of IIP-UN (23.88) is worse than 81.25% of its industry peers.
IIP-UN has a Debt/Equity ratio of 0.66. This is a neutral value indicating IIP-UN is somewhat dependend on debt financing.
IIP-UN has a Debt to Equity ratio of 0.66. This is amongst the best in the industry. IIP-UN outperforms 87.50% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF 23.88
Altman-Z 1.12
ROIC/WACC0.61
WACC4.06%
IIP-UN.CA Yearly LT Debt VS Equity VS FCFIIP-UN.CA Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B 2B 2.5B

2.3 Liquidity

A Current Ratio of 1.21 indicates that IIP-UN should not have too much problems paying its short term obligations.
IIP-UN's Current ratio of 1.21 is amongst the best of the industry. IIP-UN outperforms 81.25% of its industry peers.
IIP-UN has a Quick Ratio of 1.21. This is a normal value and indicates that IIP-UN is financially healthy and should not expect problems in meeting its short term obligations.
IIP-UN has a better Quick ratio (1.21) than 81.25% of its industry peers.
Industry RankSector Rank
Current Ratio 1.21
Quick Ratio 1.21
IIP-UN.CA Yearly Current Assets VS Current LiabilitesIIP-UN.CA Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M

5

3. Growth

3.1 Past

IIP-UN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 42.64%, which is quite impressive.
Measured over the past years, IIP-UN shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -17.69% on average per year.
Looking at the last year, IIP-UN shows a small growth in Revenue. The Revenue has grown by 5.62% in the last year.
The Revenue has been growing by 13.25% on average over the past years. This is quite good.
EPS 1Y (TTM)42.64%
EPS 3Y-17.41%
EPS 5Y-17.69%
EPS Q2Q%9.26%
Revenue 1Y (TTM)5.62%
Revenue growth 3Y14.01%
Revenue growth 5Y13.25%
Sales Q2Q%1.09%

3.2 Future

The Earnings Per Share is expected to grow by 4.33% on average over the next years.
Based on estimates for the next years, IIP-UN will show a small growth in Revenue. The Revenue will grow by 4.95% on average per year.
EPS Next Y-128.81%
EPS Next 2Y4.15%
EPS Next 3Y4.33%
EPS Next 5YN/A
Revenue Next Year4.27%
Revenue Next 2Y4.41%
Revenue Next 3Y4.95%
Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
IIP-UN.CA Yearly Revenue VS EstimatesIIP-UN.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 50M 100M 150M 200M 250M
IIP-UN.CA Yearly EPS VS EstimatesIIP-UN.CA Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 1 1.5 2

3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 15.84, which indicates a correct valuation of IIP-UN.
Compared to the rest of the industry, the Price/Earnings ratio of IIP-UN indicates a somewhat cheap valuation: IIP-UN is cheaper than 68.75% of the companies listed in the same industry.
IIP-UN's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 30.19.
A Price/Forward Earnings ratio of 15.19 indicates a correct valuation of IIP-UN.
62.50% of the companies in the same industry are cheaper than IIP-UN, based on the Price/Forward Earnings ratio.
IIP-UN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 23.58.
Industry RankSector Rank
PE 15.84
Fwd PE 15.19
IIP-UN.CA Price Earnings VS Forward Price EarningsIIP-UN.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

IIP-UN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. IIP-UN is cheaper than 68.75% of the companies in the same industry.
75.00% of the companies in the same industry are cheaper than IIP-UN, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 20.95
EV/EBITDA 20.93
IIP-UN.CA Per share dataIIP-UN.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y4.15%
EPS Next 3Y4.33%

3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 2.66%, IIP-UN has a reasonable but not impressive dividend return.
Compared to an average industry Dividend Yield of 5.04, IIP-UN's dividend is way lower than its industry peers. On top of this 87.50% of the companies listed in the same industry pay a better dividend than IIP-UN!
IIP-UN's Dividend Yield is comparable with the S&P500 average which is at 2.30.
Industry RankSector Rank
Dividend Yield 2.66%

5.2 History

The dividend of IIP-UN decreases each year by -0.20%.
IIP-UN has been paying a dividend for at least 10 years, so it has a reliable track record.
IIP-UN has not decreased their dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)-0.2%
Div Incr Years12
Div Non Decr Years14
IIP-UN.CA Yearly Dividends per shareIIP-UN.CA Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0.1 0.2 0.3

5.3 Sustainability

The earnings of IIP-UN are negative and hence is the payout ratio. IIP-UN will probably not be able to sustain this dividend level.
DP-166.51%
EPS Next 2Y4.15%
EPS Next 3Y4.33%
IIP-UN.CA Yearly Income VS Free CF VS DividendIIP-UN.CA Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 2022 2023 100M 200M 300M

INTERRENT REAL ESTATE INVEST

TSX:IIP-UN (2/14/2025, 7:00:00 PM)

9.82

-0.19 (-1.9%)

Chartmill FA Rating
GICS SectorReal Estate
GICS IndustryGroupEquity Real Estate Investment Trusts (REITs)
GICS IndustryResidential REITs
Earnings (Last)11-04 2024-11-04/amc
Earnings (Next)02-24 2025-02-24/amc
Inst Owners35.45%
Inst Owner ChangeN/A
Ins Owners4.05%
Ins Owner ChangeN/A
Market Cap1.45B
Analysts81.33
Price Target13.56 (38.09%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 2.66%
Yearly Dividend0.21
Dividend Growth(5Y)-0.2%
DP-166.51%
Div Incr Years12
Div Non Decr Years14
Ex-Date01-31 2025-01-31 (0.033075)
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)-2.5%
PT rev (3m)-11.23%
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)-133.33%
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.38%
Valuation
Industry RankSector Rank
PE 15.84
Fwd PE 15.19
P/S 5.9
P/FCF 20.95
P/OCF 20.95
P/B 0.58
P/tB 0.58
EV/EBITDA 20.93
EPS(TTM)0.62
EY6.31%
EPS(NY)0.65
Fwd EY6.58%
FCF(TTM)0.47
FCFY4.77%
OCF(TTM)0.47
OCFY4.77%
SpS1.66
BVpS17.08
TBVpS17.08
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -0.5%
ROE -0.84%
ROCE 3.46%
ROIC 2.49%
ROICexc 2.5%
ROICexgc 2.5%
OM 59.59%
PM (TTM) N/A
GM 77.27%
FCFM 28.16%
ROA(3y)4.49%
ROA(5y)6.39%
ROE(3y)7.67%
ROE(5y)10.53%
ROIC(3y)2.09%
ROIC(5y)2.11%
ROICexc(3y)2.09%
ROICexc(5y)2.12%
ROICexgc(3y)2.09%
ROICexgc(5y)2.12%
ROCE(3y)2.91%
ROCE(5y)2.93%
ROICexcg growth 3Y2.99%
ROICexcg growth 5Y-1.56%
ROICexc growth 3Y2.99%
ROICexc growth 5Y-1.56%
OM growth 3Y1.09%
OM growth 5Y0.87%
PM growth 3Y-25.51%
PM growth 5Y-21.71%
GM growth 3Y0.18%
GM growth 5Y-0.22%
F-Score7
Asset Turnover0.06
Health
Industry RankSector Rank
Debt/Equity 0.66
Debt/FCF 23.88
Debt/EBITDA 11.23
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage 276.05
Cash Conversion 47.02%
Profit Quality N/A
Current Ratio 1.21
Quick Ratio 1.21
Altman-Z 1.12
F-Score7
WACC4.06%
ROIC/WACC0.61
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)70.28%
Profit Quality(5y)54.17%
High Growth Momentum
Growth
EPS 1Y (TTM)42.64%
EPS 3Y-17.41%
EPS 5Y-17.69%
EPS Q2Q%9.26%
EPS Next Y-128.81%
EPS Next 2Y4.15%
EPS Next 3Y4.33%
EPS Next 5YN/A
Revenue 1Y (TTM)5.62%
Revenue growth 3Y14.01%
Revenue growth 5Y13.25%
Sales Q2Q%1.09%
Revenue Next Year4.27%
Revenue Next 2Y4.41%
Revenue Next 3Y4.95%
Revenue Next 5YN/A
EBIT growth 1Y7.37%
EBIT growth 3Y15.25%
EBIT growth 5Y14.23%
EBIT Next Year8.53%
EBIT Next 3Y6.79%
EBIT Next 5YN/A
FCF growth 1Y-34.82%
FCF growth 3Y13.1%
FCF growth 5Y17.43%
OCF growth 1Y-34.82%
OCF growth 3Y13.1%
OCF growth 5Y17.43%