- The real estate sector plays a pivotal role in providing shelter to Canadians.
- A July 2021 survey pointed that the aggregate home price in Canada has soared 25.3 per cent year-over-year (YoY).
- The country’s secondary markets are said to be noticing a substantial boost in the housing market.
The real estate sector plays a pivotal role in providing shelter to Canadians. Along with that, a significant portion of investors also like to foray into in this area for a passive income source.
The Canadian housing market noted a massive rally in the wake of the pandemic, reaching record high prices. While the rally appears to be slowing down, the home prices remain elevated.
A July 2021 survey by Canadian real estate player Royal LePage pointed that the aggregate home price in the country has soared 25.3 per cent year-over-year (YoY) to C$ 727,000 in the second quarter of 2021 amid inventory shortages.
Meanwhile, secondary markets, which consist of smaller cities and big towns, are said to be noticing a substantial boost in the housing market.
On this note, let us explore some real estate stocks that have the added bonus of dividends.
- Colliers International Group Inc. (TSX: CIGI)
Colliers International Group operates in about 60 countries, providing services and solutions to real estate owners and investors. Its stock closed at C$ 152.8 on July 28.
The Canadian firm paid a semi-annual dividend of US$ 0.05 apiece on July 14, 2021 yielding 0.082 per cent. It holds an earnings per share (EPS) of US$ 1.54 and a return on equity (ROE) of 8.75 per cent, as per TMX.
Colliers International Group posted revenues of US$ 774.9 million in the first quarter of 2021, which was up by 23 per cent YoY from that of US$ 630.6 million in the first quarter of 2020. Its EBITDA was US$ 92.1 million, up 69 per cent YoY, in this quarter.
- FirstService Corporation (TSX: FSV)
FirstService Corporation has two business segments that manages residential and commercial clients in North America. It stock closed at C$ 234.97 on July 28.
The company paid a quarterly dividend of US$ 0.182 on July 7, with a dividend yield of 0.3 per cent.
FirstService Corporation posted a revenue of about US$ 831.6 million in Q2 FY2021, which was up from that of US$ 621.6 million in Q2 FY2020.
Its GAAP earnings per share (EPS), on the other hand, amounted to US$ 0.83 in this quarter, while its adjusted EBITDA was US$ 89.9 million.
The real estate firm holds an EPS of 3.23, an ROE of 16.69 per cent and a return on assets (ROA) of 5.09 per cent.
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- Tricon Residential Inc. (TSX: TCN)
Tricon Residential manages single and multi-family rental homes catering to the real estate requirements in the US and Canada. Its stock price closed at C$ 14.88 on July 27.
Tricon Residential’s net income was US$ 41.9 million in Q1 FY2021, which moved up from a net loss territory in Q1 FY2020. Its revenue from single-family properties was US$ 98.5 million, which grew by 9.1 per cent YoY.
The company rolled out quarterly dividends of C$ 0.07 on July 15. It records a five-year dividend growth rate is 2.5 per cent, as per TMX.
Tricon Residential holds an EPS of 0.87, an ROE of 7.54 per cent and a price-to-earnings (P/E) of 17.1.
- Becker Milk Company Ltd. (TSX: BEK.B)
Becker Milk Company Ltd (BEK.B) operates retail, commercial properties in Canada in the province of Ontario. Becker recorded a stock price of C$ 13.5 on July 28.
The real estate enterprise’s total revenue of C$ 3.09 million in the fiscal year ending April 30, 2021, slumped from that of C$ 3.17 in FY2020.
Becker Milk Company distributed semi-annual dividends of C$ 0.40 apiece on March 31, 2021. Their dividend yield stood at 5.9 per cent.
- Canadian Apartment Properties Real Estate Investment Trust (TSX: CAR.UN)
Canadian Apartment Properties Real Estate Investment Trust acquires and leases residential properties across Canada. It closed at a price of C$ 61.73 on July 28.
CAPREIT’s operating revenue stood at C$ 227.51 million in Q1 FY2021, which posted a substantial increase from that of C$ 216.10 million in Q1 FY2020.
Its net rental income stood at C$ 146.65 million in the latest quarter, where it also recorded a 99 per cent rent collection rate on a year-to-date (YTD) basis.
CAPREIT is scheduled to pay a monthly dividend of C$ 0.115 apiece on August 16 this year, and posted a dividend yield of about 2.2 per cent on TMX.
It had an ROE of 10.9 per cent, a P/E ratio of 11.1 and an EPS of 5.54.