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Ravelin Properties REIT (TSX:RPR.UN) Financial Strength : 2 (As of Mar. 2025)


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What is Ravelin Properties REIT Financial Strength?

Ravelin Properties REIT has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Ravelin Properties REIT displays poor financial strength. Usually, this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is rated on a scale of 1 to 10 and 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.
4. Other debt related ratios.

A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Ravelin Properties REIT's Interest Coverage for the quarter that ended in Mar. 2025 was 0.40. Ravelin Properties REIT's debt to revenue ratio for the quarter that ended in Mar. 2025 was 5.87. As of today, Ravelin Properties REIT's Altman Z-Score is -2.36.


Competitive Comparison of Ravelin Properties REIT's Financial Strength

For the REIT - Office subindustry, Ravelin Properties REIT'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.


Ravelin Properties REIT's Financial Strength Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Ravelin Properties REIT's Financial Strength distribution charts can be found below:

* The bar in red indicates where Ravelin Properties REIT's Financial Strength falls into.


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Ravelin Properties REIT 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:

Ravelin Properties REIT's Interest Expense for the months ended in Mar. 2025 was C$-16.6 Mil. Its Operating Income for the months ended in Mar. 2025 was C$6.7 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Mar. 2025 was C$174.2 Mil.

Ravelin Properties REIT's Interest Coverage for the quarter that ended in Mar. 2025 is

Interest Coverage=-1*Operating Income (Q: Mar. 2025 )/Interest Expense (Q: Mar. 2025 )
=-1*6.7/-16.599
=0.40

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Ravelin Properties REIT interest coverage is 1.06, which is low.

2. Debt to revenue ratio. The lower, the better.

Ravelin Properties REIT's Debt to Revenue Ratio for the quarter that ended in Mar. 2025 is

Debt to Revenue Ratio=Total Debt (Q: Mar. 2025 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(923.358 + 174.216) / 187.072
=5.87

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.

Ravelin Properties REIT has a Z-score of -2.36, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of -2.36 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.


Ravelin Properties REIT  (TSX:RPR.UN) Financial Strength Explanation

The rank is rated on a scale of 1 to 10. A higher score indicates a stronger financial position, with companies rated 7 or above considered financially stable and unlikely to face distress. Conversely, a score of 3 or below suggests potential financial difficulties, indicating a higher risk of distress.

Ravelin Properties REIT has the Financial Strength Rank of 2. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Ravelin Properties REIT Financial Strength Related Terms

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Ravelin Properties REIT Business Description

Traded in Other Exchanges
Address
130 Adelaide Street West, Suite 3401, Toronto, ON, CAN, M5H 3P5
Ravelin Properties REIT is an unincorporated, open-ended real estate investment trust. It invests in a diversified portfolio of income-producing real property investments, following its investment policies and investment guidelines. The REIT's properties include buildings and complexes located in Canada, Ireland, and the U.S., providing facilities for a mix of commercial office tenants. Its portfolio comprises a mix of office buildings, data centres, industrial, retail, residential rental, surface parking lots, and a hotel. Geographically, the trust derives maximum revenue from its investment properties in Canada, followed by the United States and Ireland.

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