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GRP.U (Granite Real Estate Investment Trust) Interest Coverage : 4.98 (As of Sep. 2024)


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What is Granite Real Estate Investment Trust Interest Coverage?

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Granite Real Estate Investment Trust's Operating Income for the three months ended in Sep. 2024 was $78.8 Mil. Granite Real Estate Investment Trust's Interest Expense for the three months ended in Sep. 2024 was $-15.8 Mil. Granite Real Estate Investment Trust's interest coverage for the quarter that ended in Sep. 2024 was 4.98. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Granite Real Estate Investment Trust's Interest Coverage or its related term are showing as below:

GRP.U' s Interest Coverage Range Over the Past 10 Years
Min: 4.93   Med: 7.73   Max: 10.4
Current: 4.93


GRP.U's Interest Coverage is ranked better than
66.57% of 712 companies
in the REITs industry
Industry Median: 2.87 vs GRP.U: 4.93

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.


Granite Real Estate Investment Trust Interest Coverage Historical Data

The historical data trend for Granite Real Estate Investment Trust's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Granite Real Estate Investment Trust Interest Coverage Chart

Granite Real Estate Investment Trust Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Interest Coverage
Get a 7-Day Free Trial Premium Member Only Premium Member Only 7.42 7.73 7.44 7.73 5.39

Granite Real Estate Investment Trust Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
Interest Coverage Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 5.83 4.54 5.05 5.15 4.98

Competitive Comparison of Granite Real Estate Investment Trust's Interest Coverage

For the REIT - Industrial subindustry, Granite Real Estate Investment Trust's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Granite Real Estate Investment Trust's Interest Coverage Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Granite Real Estate Investment Trust's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Granite Real Estate Investment Trust's Interest Coverage falls into.



Granite Real Estate Investment Trust Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage=-1* Operating Income /Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt (1).


Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Granite Real Estate Investment Trust's Interest Coverage for the fiscal year that ended in Dec. 2023 is calculated as

Here, for the fiscal year that ended in Dec. 2023, Granite Real Estate Investment Trust's Interest Expense was $-54.3 Mil. Its Operating Income was $292.6 Mil. And its Long-Term Debt & Capital Lease Obligation was $2,127.5 Mil.

Interest Coverage=-1* Operating Income (A: Dec. 2023 )/Interest Expense (A: Dec. 2023 )
=-1*292.581/-54.311
=5.39

Granite Real Estate Investment Trust's Interest Coverage for the quarter that ended in Sep. 2024 is calculated as

Here, for the three months ended in Sep. 2024, Granite Real Estate Investment Trust's Interest Expense was $-15.8 Mil. Its Operating Income was $78.8 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,721.7 Mil.

Interest Coverage=-1* Operating Income (Q: Sep. 2024 )/Interest Expense (Q: Sep. 2024 )
=-1*78.786/-15.822
=4.98

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

The higher the ratio, the stronger the company's Financial Strength is.


Granite Real Estate Investment Trust  (NYSE:GRP.U) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .


Granite Real Estate Investment Trust Interest Coverage Related Terms

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Granite Real Estate Investment Trust Business Description

Traded in Other Exchanges
Address
77 King Street West, Suite 4010, P.O. Box 159, Toronto-Dominion Centre, Toronto, ON, CAN, M5K 1H1
Granite Real Estate Investment Trust, or Granite, is a real estate investment trust engaged in the acquisition, development, ownership and management of of logistics, warehouse and industrial properties in North America and Europe. Granite's portfolio comprises various manufacturing, corporate office, warehouse and logistics, and product engineering facilities. The vast majority of the company's assets are logistics and distribution warehouses and multipurpose buildings split fairly evenly amongst Canadian, Austrian, and U.S. locations. Granite derives nearly all of its revenue in the form of rental income from its properties. The company's tenant is Magna International, an automotive parts and systems manufacturer, which accounts for the majority of Granite's lease income.