RioCan & TCN: TSX housing stocks to buy as Toronto home prices rise 18%

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RioCan & TCN: TSX housing stocks to buy as Toronto home prices rise 18%

RioCan & TCN: TSX housing stocks to buy as Toronto home prices rise 18%
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Highlights

  • The Toronto Regional Real Estate Board (TRREB) recently said that almost 11,000 homes were sold in the Greater Toronto Area (GTA) in March 2022.
  • A real estate stock mentioned here shot up by over 48 per cent in the pas one year.
  • A REIT listed here reported a net profit of C$ 208.8 million in Q4 FY2021.

The Toronto Regional Real Estate Board (TRREB) said on Tuesday, April 5, that almost 11,000 homes were sold in the Greater Toronto Area (GTA) in March 2022. While that was a surge of about 17 per cent on a monthly basis, it was a decline of nearly 30 per cent a year-on-year (YoY), the report added.

However, it added that the average selling price (ASP) hovered around C$ 1.3 million, which was a YoY surge of 18.5 per cent. 

On that note, Canadians who want to explore the real estate sector can look into housing stocks and REITs like Tricon Residential (TSX: TCN) and RioCan Real Estate Investment Trust (TSX: REI.UN).

Tricon Residential Inc (TSX: TCN)

Tricon Residential saw its net profit grow by 67 per cent YoY to US$ 127 million in Q4 FY2021. The company generated US$ 45.6 million in its core funds from operations in the latest quarter, up by 10 per cent YoY.

Stocks of Tricon Residential shot up by over 48 per cent in the past one year. The Canadian real estate stock closed at C$ 19.52 apiece on Tuesday, April 5.

Tricon Residential (TSX: TCN)’s Q4 FY2021 results

Also read: Why is Sunshine Biopharma (SBFM) stock surging?

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

RioCan REIT inked a property management agreement with Harden. According to the agreement, Harden will provide its property management solutions to RioCan's 18 Quebec retail properties effective from July 1, 2022. 

The Toronto-based REIT reported a net profit of C$ 208.8 million in Q4 FY2021, notably up from C$ 65.6 million in Q4 2020.

Units of RioCan closed at C$ 25.06 apiece on Tuesday with a year return of roughly 29 per cent in the last one year.

Bottomline

Investors should be research about the changes in the real estate sector before exploring such stocks. Key economic indicators like hikes in borrowing costs, inflation etc., can impact the real estate sector, making it essential for investors to note such factors.

Also read: PMKR, RVLY and GH: 3 gambling stocks as Ontario opens iGaming market

Please note, the above content constitutes a very preliminary observation based on the industry, 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.

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