Definitive Analysis
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Definitive Analysis

Financial Statements

Ticker

Industry

Sector

Granite Real Estate Investment Trust (GRP-UN)

Company Dividend Discount ModelIndustry: REIT - IndustrialSector: Real Estate

Valuation Snapshot

Stable Growth$236.12 - $931.82$647.07
Multi-Stage$117.29 - $128.12$122.60
Blended Fair Value$384.84
Current Price$77.59
Upside395.99%
DecisionBuy

Dividend History & Growth Metrics (10Y)

Metric5Y CAGR10Y CAGR2024202320222021202020192018201720162015
DPS6.66%7.25%3.353.293.263.082.632.432.021.981.821.75
YoY Growth--1.93%0.80%5.86%17.18%8.27%20.36%2.03%8.44%4.40%4.96%
Dividend Yield--4.97%4.33%3.89%3.19%3.44%4.18%3.16%3.88%3.91%4.68%

Stable Growth Model (Adjusted)

(USD in Millions except Per Share Data)
Net Income To Common (M)290.62
(-) Cash Dividends Paid (M)208.41
(=) Cash Retained (M)82.21
MetricLOWBASEHIGH
Required Retention Ratio20.0%12.5%7.5%
(=) Cash Required (M)58.1236.3321.80
Cash Retained (M)82.2182.2182.21
(-) Cash Required (M)-58.12-36.33-21.80
(=) Excess Retained (M)24.0945.8860.41
(/) Shares Outstanding (M)62.0362.0362.03
(=) Excess Retained per Share0.390.740.97
LTM Dividend per Share3.363.363.36
(+) Excess Retained per Share0.390.740.97
(=) Adjusted Dividend3.754.104.33
WACC / Discount Rate7.17%7.17%7.17%
Growth Rate5.50%6.50%7.50%
Fair Value$236.12$647.07$931.82
Upside / Downside204.32%733.96%1,100.96%

Multi-Stage Model: Projections

(USD in Millions)
MetricTTMDec-27Dec-28Dec-29Dec-30Dec-31Terminal
Net Income (M)290.62309.51329.62351.05373.87398.17410.11
Payout Ratio71.71%75.37%79.03%82.68%86.34%90.00%92.50%
Projected Dividends (M)208.41233.27260.49290.26322.81358.35379.36

Multi-Stage Valuation

MetricLOWBASEHIGH
WACC / Discount Rate7.17%7.17%7.17%
Growth Rate5.50%6.50%7.50%
Year 1 PV (M)215.61217.66219.70
Year 2 PV (M)222.54226.78231.06
Year 3 PV (M)229.21235.78242.49
Year 4 PV (M)235.60244.66253.98
Year 5 PV (M)241.75253.42265.55
PV of Terminal Value (M)6,130.076,426.156,733.57
Equity Value (M)7,274.787,604.467,946.35
Shares Outstanding (M)62.0362.0362.03
Fair Value$117.29$122.60$128.12
Upside / Downside51.16%58.01%65.12%

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