Real eState
Do Dream Industrial Real Estate Investment Trust’s (TSE:DIR.UN) Earnings Warrant Your Attention? – Simply Wall St
Like a puppy chasing its tail, some new investors often chase ‘the next big thing’, even if that means buying ‘story stocks’ without revenue, let alone profit. Unfortunately, high risk investments often have little probability of ever paying off, and many investors pay a price to learn their lesson.
If, on the other hand, you like companies that have revenue, and even earn profits, then you may well be interested in Dream Industrial Real Estate Investment Trust (TSE:DIR.UN). Now, I’m not saying that the stock is necessarily undervalued today; but I can’t shake an appreciation for the profitability of the business itself. Loss-making companies are always racing against time to reach financial sustainability, but time is often a friend of the profitable company, especially if it is growing.
See our latest analysis for Dream Industrial Real Estate Investment Trust
Dream Industrial Real Estate Investment Trust’s Improving Profits
Over the last three years, Dream Industrial Real Estate Investment Trust has grown earnings per share (EPS) like young bamboo after rain; fast, and from a low base. So I don’t think the percent growth rate is particularly meaningful. As a result, I’ll zoom in on growth over the last year, instead. It’s good to see that Dream Industrial Real Estate Investment Trust’s EPS have grown from CA$1.09 to CA$1.22 over twelve months. That’s a 12% gain; respectable growth in the broader scheme of things.
One way to double-check a company’s growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. While we note Dream Industrial Real Estate Investment Trust’s EBIT margins were flat over the last year, revenue grew by a solid 34% to CA$220m. That’s a real positive.
In the chart below, you can see how the company has grown earnings, and revenue, over time. To see the actual numbers, click on the chart.
While it’s always good to see growing profits, you should always remember that a weak balance sheet could come back to bite. So check Dream Industrial Real Estate Investment Trust’s balance sheet strength, before getting too excited.
Are Dream Industrial Real Estate Investment Trust Insiders Aligned With All Shareholders?
Like the kids in the streets standing up for their beliefs, insider share purchases give me reason to believe in a brighter future. Because oftentimes, the purchase of stock is a sign that the buyer views it as undervalued. However, insiders are sometimes wrong, and we don’t know the exact thinking behind their acquisitions.
It’s a pleasure to note that insiders spent CA$4.4m buying Dream Industrial Real Estate Investment Trust shares, over the last year, without reporting any share sales whatsoever. And so I find myself almost expectant, and certainly hopeful, that this large outlay signals prescient optimism for the business. It is also worth noting that it was Non-Independent Trustee Michael Cooper who made the biggest single purchase, worth CA$4.0m, paying CA$13.45 per share.
It’s me that Dream Industrial Real Estate Investment Trust insiders are buying the stock, but that’s not the only reason to think leader are fair to shareholders. Specifically, the CEO is paid quite reasonably for a company of this size. I discovered that the median total compensation for the CEOs of companies like Dream Industrial Real Estate Investment Trust with market caps between CA$1.3b and CA$4.2b is about CA$2.9m.
The CEO of Dream Industrial Real Estate Investment Trust only received CA$610k in total compensation for the year ending December 2018. That looks like modest pay to me, and may hint at a certain respect for the interests of shareholders. While the level of CEO compensation isn’t a huge factor in my view of the company, modest remuneration is a positive, because it suggests that the board keeps shareholder interests in mind. I’d also argue reasonable pay levels attest to good decision making more generally.
Does Dream Industrial Real Estate Investment Trust Deserve A Spot On Your Watchlist?
One positive for Dream Industrial Real Estate Investment Trust is that it is growing EPS. That’s nice to see. Like chocolate chips in vanilla ice cream, the insider buying, and modest CEO pay, make it better. The sum of all that, for me, points to a quality business, and a genuine prospect for further research. Of course, just because Dream Industrial Real Estate Investment Trust is growing does not mean it is undervalued. If you’re wondering about the valuation, check out this gauge of its price-to-earnings ratio, as compared to its industry.
As a growth investor I do like to see insider buying. But Dream Industrial Real Estate Investment Trust isn’t the only one. You can see a a free list of them here.
Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction
If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned.
We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Thank you for reading.
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Real eState
Ontario regulator freezes assets of unlicensed builder
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The extraordinary measures Ontario’s new homes regulator is taking to deal with a Toronto builder with a history of sanctions highlight the challenge posed by unlicensed builders.
On March 19, the Home Construction Regulatory Authority (HCRA) froze the assets of Albion Building Consultant Inc. Court documents said that an investigation found evidence that the company took money for as many as 53 separate homes in Toronto it did not have the proper licences to build or sell.
The number of homes allegedly illegally built by Albion is several times larger than previously believed, which the HCRA said prompted it to invoke rarely used powers.
The freezing of assets was not punitive, but “to hold any purchaser funds in trust … to prohibit [Albion] from transferring any assets [and] to preserve the deposits for the benefit of homebuyers,” said Wendy Moir, the HCRA’s chief executive officer and registrar.
Ontario’s new home regulations are split between two delegated authorities, HCRA and Tarion. HCRA, which was launched in 2021, licenses builders and polices their conduct. Tarion approves the number of homes a builder can enroll in its home warranty program, an insurance pool that protects new home deposits and serves as a backstop for builder defect complaints.
If homes are built or sold without licences, they cannot be enrolled in the Tarion program, limiting the buyers’ recourse in the event of defaults by the builder.
“The HCRA is taking appropriate action to protect the public and send a clear message to the industry that those who act unlawfully or unethically will be held accountable,” said Ms. Moir.
The principals of Albion – Zamal Hossain and his wife Farida Haque – have already been convicted four times for regulatory offences related to 16 homes built without licences between 2016 and 2022. But in a search warrant application the HCRA filed on Feb. 20 with the Ontario Court of Justice, the agency outlines dozens of other new-build homes Albion is alleged to have sold or constructed. Those allegations have yet to be proven in court.
The warrant is only the second one the relatively new agency has served. It allowed investigators to comb through Albion’s office at 3028 Danforth Ave. in Toronto for any records of contracts and agreements with buyers about the homes, contracts with trades and subtrades, contact information for the new home purchasers and any correspondence between Albion and purchasers about the new homes.
“We got a lot of information from them – a van full of documents,” said Ms. Moir. “We have hundreds of documents to go through,” she said. “This is one of our largest investigations.”
Albion’s business has been to tear down a single detached home, split the lot and then construct two new homes on the old site. The HCRA warrant suggests the majority of the 53 suspected unlicensed homes are lot-splits located mainly in Scarborough. It’s unclear as yet how many homes the company actually completed.
In the past, Tarion extended a licence to build homes to Mr. Hossain and Albion, but limited the number of new homes he was allowed to enroll into its insurance program.
The evidence HCRA submitted for the search warrant suggests that the actual number of unlicensed homes built by Albion was several times higher than Mr. Hossain admitted.
Mr. Hossain didn’t respond to requests for comment for this story, but in 2023 he offered this comment to The Globe on his previous convictions: “Yes I broke the law. I did the house without the Tarion [new home warranty]. … I didn’t murder anybody.”
According to Ms. Moir, there’s no clear tally of how many unlicensed builders there are in the province. She notes that it is not illegal to build your own home without a licence. But if you hire a contractor to do it, they must be licensed.
“We’ve seen an 80-per-cent increase in illegal building complaints since last year,” she said. “I don’t think it’s more illegal building, we think it’s more awareness.”
Neil Rodgers, Interim CEO of the Ontario Home Builders Association, said the Albion case puts a spotlight on the need for regulatory fixes to tackle illegal vending where an unlicensed builder takes deposits to build homes they aren’t entitled to sell or build.
“There has to be a pro-active regulatory regime,” said Mr. Rodgers. “There needs to be a system put in place that allows for what I’m going to call early warning tracking, whereby purchasers or their agents or their solicitors could register their agreements of purchase and sale with HCRA or Tarion. If there’s a pattern that’s emerging it gives the regulator an opportunity to intervene much faster.”
Mr. Rodgers likens this requirement on buyers to share details of their agreement of purchase and sale’s with HCRA or another agency as similar to mailing a warranty card for an electronic appliance, and says he’s calling on the province for consultations on changes to the requirements.
Karen Somerville of the consumer lobby group Canadians for Properly Built Homes (CPBH) doesn’t agree the burden should be on consumers to identify unlicensed builders, and points to a different screening where there’s already been pilot programs in the past: construction permitting.
“CPBH proposes that the municipality has the responsibility to notify HCRA given the information available in the building permit application,” Ms. Somerville said. “This would result in government organizations working together using information they already have to identify unlicensed builders.”
Real eState
Surreal Estate: $15 million for a turnkey Muskoka resort with 41 guest rooms
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Location: Port Severn, Muskoka
Price: $14,999,000
Size: 17 acres of land with 41 guest rooms and a three-bedroom cottage
Real estate agent: Ali Booth, Sotheby’s International Realty
The place
A fully operational vacation escape sitting on 17 acres of land on Little Lake in Muskoka. The property comes with 41 guest rooms, a three-bedroom cottage, a private island accessible by helicopter and more than 600 metres of shoreline. It’s a short drive from Highway 400 and several neighbouring resorts.
The history
This getaway was originally built in the 1950s. The current owners purchased the place in 2021 and immediately invested $1 million to replace the roof and rebuild the guest cottage. After serving as a filming location for Bachelor in Paradise Canada, it reopened for business in July of 2022. The owners are now taking on a new venture and looking to sell the resort to a wealthy investor.
Related: $11.9 million for a Muskoka compound perched atop its own peninsula
The tour
To begin, here’s an aerial view of the peninsula, with its many docks, green spaces and lodges. That’s Port Severn North Road just beyond the parking lot.
And here’s the main entrance. The original hotel was renovated around Y2K, and the current owners bought it in 2021.
In the lobby: guest check-in, a lounge and doric columns.
The full-service restaurant overlooks the lake and includes a café and lounge.
This reverse angle shows off the bar and dramatic circular ceiling.
There’s also a nail salon down the hall.
The indoor pool and hot tub are open year-round.
The shiplap ceilings and wall of windows add warmth to the massive space.
Here’s the 24-hour gym, with rubber floors.
Now for a peek inside one of the European-style suites, which are larger than traditional hotel rooms. This one is outfitted with hardwood floors, a stone fireplace, a floor-to-ceiling walkout and gold accents throughout.
The hotel also rents out its 90-seat conference centre for weddings and corporate retreats.
Here’s another look at the cavernous conference centre.
Outside, it’s all about the amenities: a tennis court, a patio, a private beach, many docks for water sports and a private island accessible by helicopter.
Speaking of water sports, guests are free to explore Little Lake and its seemingly endless waterways.
Here’s the tropical-themed beach.
Finally, another bird’s eye view of the compound, highlighting the ample space for expansion. While there have been no formal approvals for development, the town has provided zoning guidelines on what could be built here.
Have a home that’s about to hit the market? Send your property to realestate@torontolife.com.
Real eState
Search platform ranks Moncton real estate high | CTV News – CTV News Atlantic
Like many of her clients, realtor Jenny Celly and her family moved from southern Ontario to southeast New Brunswick to find a more affordable home.
The slower pace and quality of Maritime life was very appealing.
“There’s less traffic. People, because they’re not as stressed out, they are friendlier, in my opinion, so that attracts a lot of people,” said Celly.
Moneysense.ca and Zoocasa, a consumer real estate search platform, have ranked Moncton as the top place in Canada to buy real estate for the third straight year.
Forty-five neighbourhoods and municipalities were ranked using factors such as the average price of a home, price growth over time and neighbourhood characteristics.
According to the rankings, the Greater Moncton area is highest in value and best buying conditions and has a seen a growth of 69 per cent over the past three years.
Celly said the region is still seeing buyers from Ontario and British Columbia purchasing homes sight unseen using Zoom or FaceTime – something that was very popular during the pandemic.
“I put myself in their shoes. So I’m saying, ‘OK, it smells kind of funny,’ because you are being their eyes and they will put in an offer after seeing the home via video. Most of the buyers are seeing their home for the first time on closing day,” said Celly.
One of realtor Tracy Gunter’s homes in north end Moncton recently sold in less than two weeks.
Gunter said it’s a seller’s market here, but there isn’t a lot of inventory.
“We don’t have a lot to sell. So, our buyers are coming in, they want to spend their money, but we don’t have the homes for them to buy. There is a house shortage,” said Gunter.
Gunter said what is selling are semi-detached homes and properties under $400,000 to people from outside the province and the country.
The average price of a home in the Greater Moncton area last year was $328,383.
“Things are slowing down a little bit, but people are still coming,” said Gunter. “Right now, it’s just finding homes for the people that need them.”
Moncton Mayor Dawn Arnold said the city’s appeal is its lifestyle and residents.
“We have kind, compassionate, collaborative people that want to work together that are engaged. They want to be a part of it all. There’s a real feeling of positive energy in our community right now,” said Arnold. “There’s really amazing people in our community.”
Celly said the area is attracting many families, retirees, and investors.
The main reason: the prices.
“We’re looking at bigger markets, bigger cities where prices are two to three times more than what you find in Moncton,” said Celly. “A lot of people who are looking at the Maritimes are also looking at the quality of life.”
Saint John was ranked second for best places to buy real estate, Fredericton fourth and Halifax/Dartmouth was sixth.
For more New Brunswick news visit our dedicated provincial page.
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