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Summary
- FirstService Corporation (TSX:FSV) came out with its 2021 first-quarter results on Tuesday, April 27.
- It posted a 12 per cent year-over-year (YoY) surge in consolidated revenues.
- Following this, FirstService stocks climbed by nearly three per cent on Wednesday morning (9AM EST).
Amid Canada's housing market boom, FirstService Corporation (TSX:FSV) came out with its 2021 first-quarter results on Tuesday, April 27, posting a 12 per cent year-over-year (YoY) surge in consolidated revenues. Following this, FirstService stocks climbed by nearly three per cent on Wednesday morning (9AM EST).
On April 19, while presenting the Federal Budget, Finance Minister Chrystia Freeland announced that the government will spend an additional C$ 2.5 billion to work on the initiative of affordable housing. While this amount will be rolled out over the next seven years, another C$ 1.3 billion is set to be redistributed in existing funding.
Let’s explore two real estate stocks amid these developments in the housing sector – FirstService Corporation (TSX:FSV) and Granite Real Estate Investment Trust (TSX:GRT.UN).
FirstService Corporation (TSX:FSV)
FirstService Corporation, a Canadian residential and commercial properties developer, posts a market cap of nearly C$ 9.5 billion and a debt-to-equity (D/E) of 1.14, as per TMX. Its return on equity (ROE) is 15.53 per cent.
The real estate company distributes a quarterly dividend of US$, with a dividend yield of 0.431 per cent.
Its stock, currently trending on the TSX, skyrocketed by over 79 per cent in the past year.
1-year chart of stock performance of FirstService Corporation (Source: EODHD/Others/Thomson Reuters)
In Q1 FY21, FirstService achieved a revenue of US$ 711.1 million, while its net earnings climbed up to US$ 23.8 million. Its adjusted earnings per share (EPS) increased to US$ 0.66 in the latest quarter ending March 31, 2021
Granite Real Estate Investment Trust (TSX:GRT.UN)
Granite Real Estate Investment Trust offers industrial properties and corporate offices to companies in North America and Europe. Granite's price-to-earnings ratio (P/E) stands at 12 and its current return on assets (ROA) is 12.52 per cent (as per TMX data). In the last year, Granite stock surged by roughly 21 per cent.
The company achieved a net income of C$ 293 million in 2020. Granite solidified its balance sheet as its cash and cash equivalents increased to C$ 831.3 million in fiscal 2020.
1-year chart of stock performance of Granite REIT (Source: EODHD/Others/Thomson Reuters)
The investment trust gives a monthly dividend of C$ 0.25, which currently has a dividend yield of 3.769 per cent.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from an investment point of view.
