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Summary
- Greater Toronto Area (GTA) saw its average home prices jump 14.9 per cent year-over-year (YoY) in February to hit a record value of over C$ 1 million, the Toronto Regional Real Estate Board (TRREB) reported.
- The price surge was fueled by the historic number of 10,970 home sales for the month.
- Real estate stocks have also drawn some attention amid this surge, such as FirstService (TSX:FSV), Colliers International (TSX:CIGI), Altus (TSX:AIF), Mainstreet Equity (TSX:MEQ) and Bridgemarq (TSX:BRE).
Greater Toronto Area (GTA) saw its average home prices jump 14.9 per cent year-over-year (YoY) in February to hit a record value of over C$ 1 million, the Toronto Regional Real Estate Board (TRREB) reported on Wednesday, March 3. The price surge was fueled by the historic number of 10,970 home sales for the month, as per the GTA REALTORS® data. Real estate stocks have also drawn some attention amid this surge, such as FirstService (TSX:FSV), Colliers International (TSX:CIGI), Altus (TSX:AIF), Mainstreet Equity (TSX:MEQ) and Bridgemarq (TSX:BRE).
The demand for home purchases that picked up during the pandemic last year, motored by record low mortgage interest, seems to be climbing further in 2021 as job security returns to a certain extent amid vaccine rollout. With that in mind, let’s dive into the profiles the above mentioned real estate stocks.
©Kalkine Group 2021
1. FirstService Corporation (TSX:FSV)
Canadian real estate company FirstService Corporation (TSX:FSV) saw its 2020 fourth quarter revenue jump 15 per cent YoY to C$ 775.1 million. Its net earnings for the fiscal year ending 31 December 2020 stood at over C$ 109 million.
Stock wise, FirstService jumped 15 per cent year-to-date (YTD). It recorded a growth of about 48 per cent in the last one year.
2. Colliers International Group Inc (TSX:CIGI)
Colliers International Group, a Toronto-based real estate services and investment management firm, recorded net earnings of nearly US$ 95 million and revenue of US$ 2,786 million in fiscal 2020.
Its trending TSX-listed stocks grew by 15 per cent this year and by nearly 49 per cent in the last six months.
3. Altus Group Limited (TSX:AIF)
Altus Group, which provides different types of solutions to the global commercial real estate industry, reported a 13 per cent surge in its consolidated profit of C$ 27 million for 2020. Its consolidated revenues climbed by nearly seven per cent to C$ 561.2 million in the fiscal year.
Its stocks, currently trending among top price performers and real estate companies listed on the TMX portal, recorded an increase of nearly 29 per cent in the past year.
©Kalkine Group 2021
4. Mainstreet Equity Corp (TSX:MEQ)
Mainstreet Equity Corp, a Calgary-headquartered residential real estate company, posted a five per cent YoY jump in its rental revenue of about C$ 38 million in the first quarter of fiscal 2021. Its net operating income, however, was down one per cent YoY to around C$ 23 million in the latest quarter.
Mainstreet Equity stocks rose nearly 12 per cent in the last three months and currently record return on equity (ROE) of 6.99 per cent.
5. Bridgemarq Real Estate Services Inc (TSX:BRE)
Bridgemarq Real Estate Services caters to a network of residential real estate brokers and over 18,000 realtors in Canada. It registered a revenue of C$ 10.7 million in 2020’s third quarter, although its net earnings dipped to a loss of C$ 2.2 million for the period. Bridgemarq pays a monthly dividend of C$ 0.113, which currently posts an yield of over eight per cent, as per TMX data.
Bridgemarq stocks are ranked high on the TMX trending list for its high dividend yield, and have secured a 30 per cent surge in the span of last six months.
