Apartment Investment and Management & RioCan: 2 Trending Real Estate Stocks

Summary

  • Apartment Investment and Management Company stocks tumbled over 87 per cent on December 15, following reports of possible violations of fiduciary duty investigation.
  • RioCan stocks are up almost 11 per cent in the last one month. Its 30-day average stock trading volume stands at 2.33 million units.

New house prices continued to rise in most housing markets across Canada in October, as per Statistics Canada report. Prices for new apartments grew 0.8 per cent in October, following a 1.2 per surge in September.

The COVID-19 pandemic has hammered the real estate sector in many ways. Mortgage rates have tumbled to historic lows and customer demand is shifting towards bigger residences.

Legal firm Levi & Korsinsky notified it has begun an investigation of Apartment Investment and Management Company (AIV: US or NYSE: AIV) regarding possible violations of fiduciary duty. The company stocks plunged over 87 per cent on December 15 following this report.

On the other hand, RioCan Real Estate Investment Trust (TSX: REI.UN) approved a dividend of C$ 0.12 per unit for the month of December. The dividend will be payable on January 8, 2021.

Let us have a look at these two real estate stocks market development:

 

Apartment Investment and Management Company (AIV: US or NYSE: AIV)

Current Stock Price: US$ 5.04

 

The Real Estate Investment Trust (REIT) operates in property building, restoration, and various investment strategies, aiming at the US multifamily market.

The real estate unit’s trading volume rocketed to 98.33 million units on December 15. Its 10-day average volume stands at 1.8 million units.

The stock was heading towards pre-pandemic levels before yesterday’s nose-dive crash. The trust distributed a dividend of US$ 0.82 per unit last month. It holds a current dividend yield of nearly 5 per cent.

The trust units offer a positive return on equity (ROE) and a positive return on assets (ROA) of 8.06 per cent and 2.27 per cent. It delivers earnings per share (EPS) of C$ 1.26, and its debt-to-equity (D/E) ratio stands at 2.08, as per TMX portal data.

RioCan Real Estate Investment Trust (TSX: REI.UN)

Current Stock Price: C$ 18.06

 

The Canadian REIT units have swelled by almost 11 per cent in the last one month. The trust stock has added over 18 per cent growth in the last three months. However, it is yet to recover from its March meltdown, led by the COVID-19 pandemic.

The stock is actively trading on the TSX with a 10-day average of 2.32 million units. Its 30-day average trading volume stands at 2.33 million units.

RioCan has a present dividend yield of 7.73 per cent. Its units hold an up-tick return on equity and assets. The trust units’ EPS is C$ 0.06 and its P/CF ratio is 10.40, as per the TMX portal.

In the third quarter of 2020, the company reported funds from operations of C$ 0.41 per unit, a rise of 17.2 per cent quarter-over-quarter. Its net income was C$ 117.6 million for the third quarter.

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