Key Highlights

  • On December 3, 2019, CIBT announced an agreement to sell one of its properties for $70 million. CIBT will enter into a master lease agreement with the purchaser to continue operating the property under the GEC brand. The project name was undisclosed.
  • In FY2019, revenues decreased 5% YOY, to $70.99 million, but beat our $70.57 million estimate. Revenues declined due to a 66% YoY drop in development fees; the company continued to report growth in the other two key segments (Educational and Rental).
  • EBITDA was $6 million in FY2019 (our estimate was $5 million), versus $13 million in FY2018. EBITDA, excluding development fees, was up 211% YoY to $1.65 million. Note that the company’s reported figures are slightly different from our calculations.
  • At the end of FY2019, the company had $15 million in cash. Debt to capital was at 43%.
  • We believe the Vancouver residential market is showing signs of stabilization, which will likely further tighten the city’s rental market, boosting our outlook on CIBT’s student housing projects.

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