Cash flow quality appears inconsistent, with FCF margins fluctuating between 48.1% and 79.7% over the last ten quarters, warranting caution regarding the sustainability of dividend payouts.
| Metric | TTM | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 |
|---|
| Cash from Operations | 374.94M | 338.61M | 313.18M | 277.5M | 262.26M | 244.32M | 183.43M | 157.89M | 158.68M | 159.99M | 159.84M | 92.86M | 127.89M | 116.65M | 116.35M | 88.82M | 109.93M | 104.14M | 75.73M | 61.89M | 82.8M | 82.12M | 113.23M | 43.98M | 123.73M |
| Operating CF Growth % | 32.62% | 8.12% | 12.86% | 5.81% | 7.34% | 33.2% | 16.18% | -0.5% | -0.82% | 0.09% | 72.13% | -27.39% | 9.64% | 0.26% | 31% | -19.2% | 5.55% | 37.52% | 22.36% | -25.25% | 0.82% | -27.47% | 157.44% | -64.45% | - |
| Operating CF / Revenue % | 61.98% | 59.49% | 60.08% | 60.91% | 66.65% | 71.82% | 67.23% | 63.8% | 71.27% | 71.62% | 73.9% | 44.77% | 62.93% | 64.4% | 62.29% | 24.78% | 28.58% | 11.05% | 9.62% | 6.13% | 9.1% | 8% | 10.73% | 4.46% | 14.1% |
| Net Income | 290.62M | 361.88M | 138.5M | 155.82M | 1.31B | 429.93M | 382.27M | 465.36M | 357.75M | 280.69M | 195.54M | 63.66M | 145.27M | 71.34M | 60.44M | -52.02M | -52.17M | 22.74M | 39.23M | 69.78M | 9.1M | -10.22M | -41.94M | 16.61M | 52.87M |
| Depreciation & Amortization | 943K | 1.29M | 1.27M | 1.6M | 1.32M | 1.15M | 906K | 300K | 335K | 707K | 720K | 621K | 454K | 42.77M | 44.06M | 50.45M | 50.61M | 107.64M | 82.38M | 97.55M | 89.32M | 87.11M | 82.97M | 53.57M | 58.48M |
| Stock-Based Compensation | 2.47M | 5.36M | 10.21M | -167K | 12.44M | 8.12M | 7.48M | 3.94M | 4.91M | 3.68M | -89K | 3.7M | 2.1M | 1.62M | 2.06M | 3.4M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Non-Cash Items | 61.31M | -53.06M | 177.35M | 184.01M | -1.3B | -280.61M | -246.96M | -368.14M | -210.14M | -172.67M | -73.15M | 22.55M | 11.11M | 3.08M | 21.8M | 45.84M | 107.97M | -18.27M | -82.61M | -95.96M | 4.46M | -23.61M | 1.01K | -26.2M | 12.39M |
| Working Capital Changes | 549K | -7.74M | -4.66M | -102K | -1.42M | 16.64M | -2.94M | 3.78M | -7.6M | -41K | 665K | -6.16M | 293K | 2.97M | -8.46M | 30.14M | 3.52M | -7.96M | 36.74M | -9.49M | 9.55M | 28.84M | 25.93M | 0 | 0 |
| Cash from Investing | -92.25M | -65.46M | -128.13M | -766.56M | -1.03B | -1.07B | -876.09M | 95.86M | -237.85M | 11.78M | -20.79M | 20.13M | -253.59M | -25.8M | -101.21M | -10.9M | -101.26M | -44.11M | -98.18M | 141.13M | -218.39M | -244M | -281.94M | -631.97M | -87.22M |
| Acquisitions (Net) | 0 | 0 | 0 | 0 | 454K | -7.01M | 892.76M | -33.09M | -153.98M | -8.8M | 0 | -75.15M | -233.36M | 0 | 0 | 0 | 483.76K | 0 | 0 | 189.33M | 0 | 0 | 0 | -230.33M | -38.13M |
| Purchase of Investments | 0 | 0 | 0 | 0 | -1.03B | -1.12B | -978.3M | -615.38M | -237.12M | -19.28M | -5.99M | 0 | -34.08M | 0 | 0 | -13.81M | -56.62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale of Investments | 0 | 0 | 0 | 0 | 44.22M | 51.13M | 85.54M | 711.32M | 0 | 39.59M | 0 | 0 | 7.87M | 4.97M | 0 | 83.5M | 11.13M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -92.12M | -65.33M | -127.84M | -765.75M | -44.44M | 70.6M | -845.62M | 162.24M | -175K | 31.29M | 11.94M | 139.44M | 35.51M | -28.93M | -49.81M | -65.3M | -33.19M | 38.17M | 9M | 99.23M | 35.47M | 26.83M | -2.23M | 19.09M | 89.47M |
| Cash from Financing | -291.21M | -267.5M | -203.11M | 214.56M | 333.48M | 1.36B | 343.52M | 324.18M | -105.24M | -39.96M | -143.96M | -90.71M | 162.13M | -95.97M | -45.81M | -126.65M | -34.79M | -38.88M | -81.04M | -99.18M | -10.39M | 348.86M | 200.97M | 670.56M | -34.81M |
| Dividends Paid | -208.41M | -207.85M | -203.91M | -202.28M | -191.08M | -163.06M | -150.61M | -125.13M | -122.64M | -113.09M | -108.33M | -103.2M | -90.33M | -93.82M | -38.33M | -23.36M | -29.34M | -34.11M | -28.55M | -33.78M | -30.27M | -20.84M | 0 | 0 | 0 |
| Common Dividends | -208.41M | -207.85M | -203.91M | -202.28M | -191.08M | -163.06M | -150.61M | -125.13M | -122.64M | -113.09M | -108.33M | -103.2M | -90.33M | -93.82M | -37.72M | -24M | -31.96M | -34.11M | -28.55M | -33.78M | -30.27M | -20.84M | 0 | 0 | 0 |
| Debt Issuance (Net) | 0 | -1000K | 1000K | 1000K | 1000K | 1000K | -598K | 1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 0 | -1000K | 1000K | -1000K | 1000K | -1000K | -1000K | 1000K | 1000K | 1000K | 1000K | 254.72K |
| Share Repurchases | -146.18M | -45.81M | -26.99M | -155.53M | 0 | -25.02M | -71K | -63.53M | -12.05M | -1K | -3K | 0 | 0 | -2.69M | 0 | 0 | 0 | -12.17K | -51.57M | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Financing | 15.09M | 15.14M | -19.45M | -6.6M | -21.86M | -200K | -7.2M | -3.34M | -1.51M | -15.72M | -122K | -1.92M | -1.06M | -410K | 2.16M | -119.84M | 964.74K | -15.33M | -99.03K | -40.03M | -102.87K | 2.18M | 72.02M | 600.75M | -35.06M |
| Net Change in Cash | -5.56M | 10.04M | -18.95M | -267.43M | -428.77M | 532.6M | -359.57M | 589.23M | -177.2M | 127.06M | 2.92M | 20.71M | 44.45M | -5.83M | -30.07M | -49.76M | -20.64M | 1.25M | -94.47M | 108.16M | -152.84M | 192.1M | 45.39M | 79.84M | 5.07M |
| Exchange Rate Effect | 2.96M | 4.39M | -891K | 7.07M | 918K | -3.09M | -10.43M | 11.29M | 7.21M | -4.75M | 7.82M | -1.56M | 8.01M | -710K | 596.26K | -1.03M | 5.48M | -19.91M | 9.01M | 4.32M | -6.85M | 5.11M | 13.14M | -2.73M | 3.36M |
| Cash at Beginning | 86.42M | 116.13M | 135.08M | 402.51M | 831.28M | 298.68M | 658.25M | 69.02M | 246.22M | 119.16M | 116.23M | 95.52M | 51.07M | 56.91M | 87.2M | 135.18M | 162.17M | 188.46M | 247.84M | 183.54M | 335.71M | 156.15M | 123.05M | 69.55M | 65.26M |
| Cash at End | 127.93M | 126.17M | 116.13M | 135.08M | 402.51M | 831.28M | 298.68M | 658.25M | 69.02M | 246.22M | 119.16M | 116.23M | 95.52M | 51.07M | 57.13M | 85.42M | 141.53M | 189.71M | 153.37M | 291.7M | 182.88M | 348.25M | 168.44M | 149.39M | 70.33M |
| Free Cash Flow | 374.81M | 338.48M | 312.9M | 276.69M | 261.68M | 179.03M | 152.96M | 124.6M | 74.98M | 140.48M | 133.11M | 48.7M | 98.37M | 114.81M | 64.95M | 73.52M | 86.86M | 21.86M | -31.44M | -85.54M | -171.06M | -188.7M | -166.48M | -376.75M | -14.83M |
| FCF Growth % | 9.22% | 8.18% | 13.09% | 5.74% | 46.16% | 17.05% | 22.76% | 66.17% | -46.62% | 5.54% | 173.3% | -50.49% | -14.32% | 76.76% | -11.66% | -15.35% | 297.28% | 169.54% | 63.25% | 49.99% | 9.35% | -13.35% | 55.81% | -2440.86% | - |
| FCF / Revenue % | 61.95% | 59.47% | 60.03% | 60.73% | 66.5% | 52.63% | 56.07% | 50.35% | 33.68% | 62.88% | 61.54% | 23.48% | 48.4% | 63.39% | 34.77% | 20.51% | 22.58% | 2.32% | -4% | -8.47% | -18.8% | -18.38% | -15.77% | -38.2% | -1.69% |
Automotive sector concentration risk
As reported in the REIT's quarterly filings, the dividend payout ratio relative to AFFO has fluctuated significantly, reaching a high of 1.61x in 2023Q4 and a low of 0.46x in 2024Q3, suggesting that investors should monitor the sustainability of distributions amidst inconsistent quarterly cash generation.
The wide variance in the dividend-to-AFFO ratio indicates that Granite's distributable cash flow is not yet stabilized, likely due to the timing of development completions and asset recycling. While the REIT maintains a fortress balance sheet, the periodic inability of AFFO to comfortably cover the dividend suggests that management may be relying on capital recycling or balance sheet liquidity to support payouts during periods of lower operational cash flow.
Based on the provided financial data, the FFO-to-Net Income ratio has shown extreme volatility, ranging from 0.77 in 2025Q2 to 2.57 in 2023Q3, which implies that GAAP net income is a poor proxy for the REIT's actual cash-generating capacity due to significant non-cash fair value adjustments.
The disconnect between FFO and GAAP net income highlights the impact of IFRS fair value accounting on the REIT's reported earnings. Investors should prioritize FFO as the primary metric for performance, though the erratic nature of this conversion suggests that non-recurring items or currency fluctuations may be distorting the underlying cash flow trend.
According to the historical cash flow statements, maintenance capital expenditures have remained remarkably low, often near zero, which warrants further investigation into whether the REIT is under-investing in its aging legacy portfolio or if these costs are being capitalized elsewhere.
The minimal reported maintenance capex is atypical for a portfolio of this scale and age, suggesting that the REIT's triple-net lease structure may be successfully shifting the burden of capital improvements to tenants. However, if these costs are being deferred or capitalized into development projects, it could mask the true long-term maintenance requirements of the specialized manufacturing assets.
Analysis of the cash flow statement reveals that the REIT's FCF margin has fluctuated between 48.1% and 79.7% over the last ten quarters, suggesting that the underlying cash flow is sensitive to external factors not fully captured by standard FFO metrics.
The volatility in FCF margins may indicate that the REIT is susceptible to timing differences in rent collections or the impact of foreign exchange volatility across its Canadian, U.S., and European segments. Investors should monitor whether the shift toward speculative development projects introduces hidden cash obligations that could further pressure the REIT's free cash flow profile in future periods.
Quick answers to the most common questions about buying GRP-UN stock.
Granite Real Estate Investment Trust (GRP-UN) generated $338.6M in net cash from operating activities in 2024. This reflects the cash generated directly from core business operations.
Granite Real Estate Investment Trust (GRP-UN) generated $338.5M in free cash flow in 2024. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Granite Real Estate Investment Trust (GRP-UN) spent $0.1M on capital expenditures in 2024. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2024, Granite Real Estate Investment Trust (GRP-UN) returned $207.9M to shareholders via cash dividends and spent $45.8M on share repurchases. This shows the company's commitment to returning capital to its equity investors.