What is Granite Real Estate Investment Trust Financial Strength?
Granite Real Estate Investment Trust has the Financial Strength Rank of 4.
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:
1. The debt burden that the company has as measured by its
Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3.
Altman Z-Score.
Granite Real Estate Investment Trust's Interest Coverage for the quarter that ended in Dec. 2023 was 4.55.
Granite Real Estate Investment Trust's debt to revenue ratio for the quarter that ended in Dec. 2023 was 5.97.
As of today, Granite Real Estate Investment Trust's Altman Z-Score is 1.05.
Competitive Comparison of Granite Real Estate Investment Trust's Financial Strength
For the REIT - Industrial subindustry, Granite Real Estate Investment Trust's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution in the REITs Industry
For the REITs industry and Real Estate sector, Granite Real Estate Investment Trust's Financial Strength distribution charts can be found below:
* The bar in red indicates where Granite Real Estate Investment Trust's Financial Strength falls into.
Granite Real Estate Investment Trust Financial Strength Calculation
GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors
A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.
1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.
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:
Granite Real Estate Investment Trust's Interest Expense for the
months ended in Dec. 2023 was C$-22.0 Mil. Its Operating Income for the
months ended in Dec. 2023 was C$100.3 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was C$2,854.3 Mil.
Granite Real Estate Investment Trust's Interest Coverage for the quarter that ended in Dec. 2023 is
The higher the ratio, the stronger the company's financial strength is.
2. Debt to revenue ratio. The lower, the better.
Granite Real Estate Investment Trust's Debt to Revenue Ratio for the quarter that ended in Dec. 2023 is
3. Altman Z-Score.
Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.
The zones of discrimination were as such:
When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.
Granite Real Estate Investment Trust has a Z-score of 1.05, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.
Warning Sign:
Altman Z-score of 1.05 is in distress zone. This implies bankruptcy possibility in the next two years.
* 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.
Granite Real Estate Investment Trust (TSX:GRT.UN) 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.
Granite Real Estate Investment Trust (TSX:GRT.UN) Headlines
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