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Summary
- Junior real estate stock StorageVault Canada has rebounded by 39.65 per cent since the pandemic-led market crash.
- The Real Brokerage’s stock is up over 353 per cent in the last three months.
- Fronsac Real Estate Investment Trust scrips has rebounded by 53.33 per cent March market crash.
The rise in residential home sales has been a ray of hope in Canadian markets’ recovery. Last month, home prices and sales achieved record growth from rising demand for land, low interest rates and tight inventory. According to the Canadian Real Estate Association (CREA), home sales across the country rose 32.47 per cent year-over-year in September 2020. The sales also increased by 0.9 per cent between August and September, yet another new all-time monthly record.
The national average sale price also registered a 17.5 percent year-over-year increase.
Home Sales Recorded A Growth Of 0.9 Per Cent Between August And September. Source: CERA
To further analyze the current real estate market, let us look at junior real estate stocks such StorageVault Canada Inc. (TSXV:SVI), The Real Brokerage Inc. (TSXV:REAX), and Fronsac Real Estate Investment Trust (TSXV: FRO.UN).
StorageVault Canada Inc. (TSXV:SVI)
Current Stock Price: C$ 3.21
StorageVault Canada stock has increased by 6.9 per cent in the last six months. The company owns and leases storage space to individual and commercial clients across Canada. It ranks on TMX’s top Junior Industrials’ stocklist that lists largest price gaining shares across the Toronto Stock Exchange Venture (TSXV).
The scrips have regained by 39.65 per cent since the pandemic-led market crash on March 20. Its current market capitalization is C$1.16 billion. The price-to-book (P/B) ratio is 5.44 while the price-to-cashflow ratio is 25, as per TMX data.
This stock paid out a quarterly dividend of C$ 0.003 on October 15, 2020, and currently yielding 0.336 per cent.
StorageVault’s revenue for the first half of FY20 ended June 30, 2020 increased to C$ 73.3 million from C$ 60.5 million in the last fiscal year, a 21.15 per cent increase. For the first half FY20 ended June 30, 2020, cash flow from operations was C$ 18.1 million. The company reported a net loss of $17.0 million for the first half FY20 ended June 30, 2020, a 32.5 per cent dip compared to C$ 25.2 million for 2019.
The Real Brokerage Inc. (TSXV:REAX)
Current Stock Price: C$ 2.04
The Real Brokerage Inc started trading on the TSXV on 12 June 2020 and raised C$1.6 million through private placement.
The C$ 290-million company offers a multi-state housing real estate brokerage. It has a network of over 1000 associated agents and provides its services to home buyers, sellers, and renters.
The real estate brokerage firm stock is up over 353 per cent in the last three months.
It ranks among TMX Money’s Rising Star stocks on the TSXV that have posted the largest price gains in the last three months. The brokerage firm has also been placed on the top real estate stocks with the largest price gains in the last 30 days across the TSX and the TSXV.
The debt-to-earnings (D/E) ratio is 0.59, and its present earnings per share (EPS) is -0.02, as per TMX data.
The company reported a revenue of C$2.6 million in the second quarter of 2020, a 25 per cent decrease compared to Q2 2019 due to factors including a decrease in Q2 home purchasing activity in the urban areas due to the COVID-19 pandemic. The company posted a net operating loss of C$ 0.45 million, compared to C$ 0.35 million in Q2 2019.
Fronsac Real Estate Investment Trust (TSXV: FRO.UN)
Current Stock Price: C$ 0.69
Fronsac Real Estate Investment Trust is a Quebec-based open-ended real estate investment group. The company, through its subsidiaries, and co-ownerships invests in commercial real estate e.g. retail, fast service restaurants, and convenience store firms.
The investment trust’s portfolio includes 64 properties with just over 100 tenants.
This stock has surged over 30 per cent in the last six months. The company scrips rebounded by an overwhelming 53.33 per cent since the pandemic-led market crash on March 24. Its current market capitalization is C$ 101 million.
This penny stock’s price-to-earnings (P/E) ratio is 9.20. The stock offers a return on equity (RoE) of 17.18 per cent and return on assets of 7.65 per cent. The profit-to-book (P/B ratio) is 1.38, as per TMX data.
Fronsac’s revenue for the first half of FY2020 ended June 30, 2020, increased to C$ 6 million from C$ 4.19 million in the last fiscal year, a 44.74 per cent increase. For the first half of FY20 ended June 30, 2020, Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) was C$ 4.58 million from C$ 3 million in the last fiscal year, a nearly 52 per cent increase.
