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Highlights
- A recent survey held from January 7 to January 9 suggested 19 per cent of the home buyers during the pandemic era owned multiple properties.
- Affordability is one of the primary concerns for first-time homebuyers, as rate hikes by the central bank, expected in March, could directly impact their loans.
- Investment in real estate stocks might be a smart option to limit rate hike implications and diversify investment risks.
The recent RATESDOTCA survey, held from January 7 to January 9, suggested that 19 per cent of the home buyers during the pandemic era owned multiple properties. The survey included 1,547 respondents.
Affordability is one of the primary concerns for homebuyers, as rate hikes by the central bank, expected in March, could directly impact their loans. Investment in real estate stocks can be a smart option to limit the rate hike implications and diversify investment risks. Let us look at two TSX real estate stocks.
1. FirstService Corporation (TSX:FSV)
FirstService Corporation, on January 11, said that Century Fire Protection, its subsidiary, acquired Chesapeake, an Odenton-based fully-serviced fire protection firm, to improve its footprints in Mid-Atlantic U.S. markets. The Toronto-headquartered real estate company saw its top line at US$ 849.4 million in Q3 FY2021 compared to US$ 741.9 million a year ago.
Also read: 2 TSX growth stocks that can outperform the market in the long run
FirstService, on a Generally Accepted Accounting Principles (GAAP) basis, recorded earnings per share of US$ 1.03 in the latest quarter compared to US$ 0.75 in Q3 FY2020. Stocks of FirstService closed at C$ 196.97 apiece on Friday, January 28. This real estate scrip swelled by nearly 12 per cent in the last one year.
2. Colliers International Group Inc (TSX:CIGI)
Colliers International Group, on January 24, announced a strategic investment in transatlantic investment company Basalt Infrastructure Partners LLP, which operates in Europe and North America.
The Canadian real estate firm generated revenue of US$ 1.02 billion in Q3 FY2021, up from US$ 692.3 million in the same period of 2020. Colliers reported GAAP diluted earnings of US$ 0.40 per share in the latest quarter compared to US$ 0.52 per share in Q3 2020.
Colliers’s stock closed at C$ 179.46 apiece on Friday, bringing a one-year return of over 55 per cent.
Image source: ©2022 Kalkine Media®
Bottom line
Both FirstService and Colliers pay dividends to their shareholders every quarter, which could be a key factor for income investors. However, they should be aware of changes in the real estate market to take remedial actions, if required.
Also read: Rogers (RCI.B) & BCE Inc: 2 TSX telecom stocks to watch in 2022
