2 TSX stocks to buy amid housing market correction: CAR & TCN

June 21, 2022 12:09 AM AEST | By Raza Naqvi
 2 TSX stocks to buy amid housing market correction: CAR & TCN
Image source: © Solarseven | Megapixl.com

Highlights

  • The S&P/TSX Capped Real Estate Index has declined 25.2 per cent year-to-date (YTD).
  • Home resales on a national level reportedly fell below levels recorded in February 2020 for the first time.
  • Seasonally adjusted existing home sales declined 8.6% in May from the previous month.

The long-awaited correction in Canada's housing market has begun, but some market analysts are surprised by how rapidly it is unfolding.

According to the recent data released by the Canadian Real Estate Association, seasonally adjusted existing home sales declined 8.6% in May from the previous month and 21.7 percent from a year earlier.

Also Read: DOL & FTS: 2 TSX stocks to buy as World Bank warns of stagflation

Home resales on a national level reportedly fell below levels recorded in February 2020 for the first time since the coronavirus pandemic began in 2020.

The S&P/TSX Capped Real Estate Index has declined 25.2 per cent year-to-date (YTD), and this means that the real estate stocks and real estate investment trusts (REITs) are trading at discounted prices, and long-term investors may see an opportunity to invest and hold.

If you are a long-term investor, here are two stocks you could consider for your portfolio:

Tricon Residential Inc. (TSX:TCN)

The real estate company has business operations in the United States and Canada. Tricon offers a variety of rental homes to its customers and manages at least 29,000 properties.

At market open on Monday, the TCN stock climbed 0.2 per cent, trading at C$ 12.34 per share at the time of writing. Notably, the company had achieved solid financial results in the first quarter of 2022 and updated its guidance for the full year.

In Q1 2022, the company's net income from continuing operations was US$ 163.5 million, up by 290 per cent year-over-year (YoY). Tricon now expects its same home growth revenue to record an increase of 7.5% to 9.5% in 2022 compared to the previous guidance of 7% to 9%.

For three months ended in March this year, Tricon's net assets grew to U$ 3.2 billion from US$ 3.1 billion at the end of fiscal 2021.

TSX real estate stocks

Canadian Apartment Properties Real Estate Investment Trust (TSX:CAR.UN)

It is one of the biggest REITs in the country and acquires and leases multiunit residential units in major Canadian cities.

On June 20, the CAR.UN stock recorded a surge of 1.3 per cent, probably an indicator of investors buying real estate stocks on the dip. At 10 AM EST, the CAPREIT stock was priced at C$ 43.82 apiece.

In Q1 2022, CAPREIT's net operating income was around C$ 153.2 million compared to approximately C$ 146.7 million in the previous year's first quarter. Meanwhile, the cash and cash equivalents jumped to C$ 63.79 million from C$ 51.5 million in the same period.

Also Read: 5 TSX uranium stocks to buy as demand for Canada supplies rise

Please note, the above content constitutes a very preliminary observation or view based on digital trends and is of limited scope without any in-depth fundamental valuation or technical analysis. Any interest in stocks or sectors should be thoroughly evaluated taking into consideration the associated risks.


Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Pty Ltd (Kalkine Media, we or us), ACN 629 651 672 and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated as or found to be necessary.


AU_advertise

Advertise your brand on Kalkine Media

Sponsored Articles


Investing Ideas

Previous Next
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it.