Choice Properties Real Estate Investment Trust (TSX:CHP.UN) Beneish M-Score : -2.47 (As of Apr. 26, 2024)

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What is Choice Properties Real Estate Investment Trust Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.47 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for Choice Properties Real Estate Investment Trust's Beneish M-Score or its related term are showing as below:

TSX:CHP.UN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.34 Med: -2.16 Max: 21.23
Current: -2.47

During the past 11 years, the highest Beneish M-Score of Choice Properties Real Estate Investment Trust was 21.23. The lowest was -3.34. And the median was -2.16.

Choice Properties Real Estate Investment Trust Beneish M-Score Historical Data

The historical data trend for Choice Properties Real Estate Investment Trust's Beneish M-Score 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.

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Choice Properties Real Estate Investment Trust Beneish M-Score Chart

Choice Properties Real Estate Investment Trust Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.87

-2.76

7.76

-1.87

-2.32

Choice Properties Real Estate Investment Trust Quarterly Data
	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24
Beneish M-Score	Get a 7-Day Free Trial															21.16	20.48	21.23	-2.32	-2.47

Competitive Comparison of Choice Properties Real Estate Investment Trust's Beneish M-Score

For the REIT - Retail subindustry, Choice Properties Real Estate Investment Trust's Beneish M-Score, along with its competitors' market caps and Beneish M-Score 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.

Choice Properties Real Estate Investment Trust's Beneish M-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Choice Properties Real Estate Investment Trust's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Choice Properties Real Estate Investment Trust's Beneish M-Score falls into.

Choice Properties Real Estate Investment Trust Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Choice Properties Real Estate Investment Trust for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 1.0344

0.528 * 1.0151

0.404 * 1.0015

0.892 * 1.0778

0.115 * 0.9992

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 1.1623

4.679 * -0.016917

0.327 * 0.9745

-2.47

This Year (Mar24) TTM:

Last Year (Mar23) TTM:

Total Receivables was C$511 Mil.
Revenue was 349.226 + 354.743 + 325.077 + 330.327 = C$1,359 Mil.
Gross Profit was 241.887 + 239.349 + 237.848 + 238.152 = C$957 Mil.
Total Current Assets was C$523 Mil.
Total Assets was C$16,875 Mil.
Property, Plant and Equipment(Net PPE) was C$195 Mil.
Depreciation, Depletion and Amortization(DDA) was C$1 Mil.
Selling, General, & Admin. Expense(SGA) was C$63 Mil.
Total Current Liabilities was C$1,505 Mil.
Long-Term Debt & Capital Lease Obligation was C$5,446 Mil.
Net Income was 142.279 + -445.684 + 435.903 + 535.668 = C$668 Mil.
Non Operating Income was 47.793 + -531.782 + 345.87 + 441.219 = C$303 Mil.
Cash Flow from Operations was 141.592 + 207.667 + 149.246 + 152.032 = C$651 Mil.

Total Receivables was C$459 Mil.
Revenue was 324.657 + 314.382 + 309.082 + 313.081 = C$1,261 Mil.
Gross Profit was 229.387 + 227.202 + 223.163 + 221.778 = C$902 Mil.
Total Current Assets was C$552 Mil.
Total Assets was C$16,970 Mil.
Property, Plant and Equipment(Net PPE) was C$195 Mil.
Depreciation, Depletion and Amortization(DDA) was C$1 Mil.
Selling, General, & Admin. Expense(SGA) was C$50 Mil.
Total Current Liabilities was C$1,002 Mil.
Long-Term Debt & Capital Lease Obligation was C$6,171 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(511.291 / 1359.373)	/	(458.584 / 1261.202)
	=	0.376123	/	0.363609
	=	1.0344

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(901.53 / 1261.202)	/	(957.236 / 1359.373)
	=	0.714818	/	0.704175
	=	1.0151

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (522.984 + 195.168) / 16874.996)	/	(1 - (551.768 + 195.31) / 16969.907)
	=	0.957443	/	0.955976
	=	1.0015

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	1359.373	/	1261.202
	=	1.0778

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(1 / (1 + 195.31))	/	(1 / (1 + 195.168))
	=	0.005094	/	0.005098
	=	0.9992

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(63.032 / 1359.373)	/	(50.313 / 1261.202)
	=	0.046368	/	0.039893
	=	1.1623

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((5446.094 + 1505.367) / 16874.996)	/	((6171.479 + 1002.189) / 16969.907)
	=	0.411939	/	0.422729
	=	0.9745

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(668.166 - 303.1	-	650.537)	/	16874.996
	=	-0.016917

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Choice Properties Real Estate Investment Trust has a M-score of -2.47 suggests that the company is unlikely to be a manipulator.

Choice Properties Real Estate Investment Trust Beneish M-Score Related Terms

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Choice Properties Real Estate Investment Trust (TSX:CHP.UN) Business Description

Industry

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PPRQF:USA 6HC:Germany

Address

22 St. Clair Avenue East, Suite 700, Toronto, ON, CAN, M4T 2S5

Website

https://www.choicereit.ca

Choice Properties Real Estate Investment Trust invests in commercial retail, industrial, mixed-use and residential properties across Canada. The company's portfolio primarily consists of shopping centers anchored by supermarkets and stand-alone supermarkets. The properties are mostly located in Ontario and Quebec, followed by Alberta, Nova Scotia, British Columbia, and New Brunswick. Choice Properties generate the majority of revenue from leasing properties to its tenants. The company's principal tenant, the large-format retailer Loblaw Companies, contributes the vast majority of the total rent.

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