A diverse portfolio of stocks will always have winners and losers. But if you’re going to beat the market overall, you need to have individual stocks that outperform. BTB Real Estate Investment Trust (TSE:BTB.UN) has done well over the last year, with the stock price up 18% beating the market return of 15% (not including dividends). Zooming out, the stock is up 15% in the last three years.
To paraphrase Benjamin Graham: Over the short term the market is a voting machine, but over the long term it’s a weighing machine. By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time.
Over the last twelve months, BTB Real Estate Investment Trust actually shrank its EPS by 6.6%.
This means it’s unlikely the market is judging the company based on earnings growth. Indeed, when EPS is declining but the share price is up, it often means the market is considering other factors.
We haven’t seen BTB Real Estate Investment Trust increase dividend payments yet, so the yield probably hasn’t helped drive the share higher. Rather, we’d posit that the revenue increase of 5.1% might be more meaningful. After all, it’s not necessarily a bad thing if a business sacrifices profits today in pursuit of profit tomorrow (metaphorically speaking).
The company’s revenue and earnings (over time) are depicted in the image below (click to see the exact numbers).
Balance sheet strength is crucial. It might be well worthwhile taking a look at our free report on how its financial position has changed over time.
What About Dividends?
As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It’s fair to say that the TSR gives a more complete picture for stocks that pay a dividend. We note that for BTB Real Estate Investment Trust the TSR over the last year was 28%, which is better than the share price return mentioned above. The dividends paid by the company have thusly boosted the total shareholder return.
A Different Perspective
It’s nice to see that BTB Real Estate Investment Trust shareholders have received a total shareholder return of 28% over the last year. And that does include the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 11% per year), it would seem that the stock’s performance has improved in recent times. In the best case scenario, this may hint at some real business momentum, implying that now could be a great time to delve deeper. Before spending more time on BTB Real Estate Investment Trust it might be wise to click here to see if insiders have been buying or selling shares.
Of course, you might find a fantastic investment by looking elsewhere. So take a peek at this free list of companies we expect will grow earnings.
Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on CA exchanges.
If you spot an error that warrants correction, please contact the editor at firstname.lastname@example.org. 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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Government bonds provided reliable ballast earlier this year when equity markets tanked in response to the Covid-19 pandemic. Government of Canada seven- to 10-year bonds returned 9.5% in the first three quarters of the year, and long-duration (20+ years) Government of Canada bonds returned almost 20%, according to a report from FTSE Russell.
Seven- to 10-year U.S. Treasuries returned 11.5% as of Sept. 30, while long Treasuries returned 20.8% (in USD).
“It’s going to be really hard to extrapolate that going beyond this,” Taylor said, since he doesn’t see North America moving to negative rates anytime soon.
Phil Mesman, head of fixed income with Picton Mahoney Asset Management in Toronto, said strategies need to shift now, even though the 40% fixed income part of portfolios served investors well this year.
Replicating the benefit from government bonds this year would require a -10 basis point U.S. Treasury yield, he said.
“All of the backward numbers look great in fixed income,” Mesman said. “The typical advisor portfolio looks amazing but, at current yields and current duration, it makes sense to be a little more creative.”
Taylor said investors can look to investment-grade corporate bonds to find yield through active management. Beyond that, he said investors will have to consider alternative strategies such as options writing and private debt, as well as hard assets such as real estate, infrastructure and precious metals.
“We think there’s going to be a rework of the traditional 60-40 portfolio,” he said.
Mesman said he’s focused on long and short opportunities in developed-market BBB- to B-grade bonds.
The Federal Reserve’s willingness to purchase corporate bonds has made the market more expensive and masked credit risk, he said. This has created opportunities on the short side to both protect the portfolio and provide alpha in cases “where the real economy’s impact on financial assets has yet to be felt,” he said.
Jonathan Hausman, managing director and head of global strategic relationships with the Ontario Teachers’ Pension Plan, warned about the risks of wading into high-yield credit.
“That works until it doesn’t,” he said earlier this month on a panel at the Global Risk Institute’s summit.
Rating agency Moody’s warned investors this week that a record number of companies are in danger of slipping from investment grade to junk territory due to the uneven economic recovery.
Speaking on a webinar earlier this month, FTSE Russell director of fixed income research Robin Marshall also expressed concerns about a “high-yield value trap.” Canadian credit spreads were wider during the economic downturn in 2015-16 than they are now, he said — a “conundrum” given the depth of recession investors are now facing.
High-yield valuations have moved to “demanding” levels relative to current default risks, he said.
Hausman also pointed to strategies such as infrastructure and real assets to provide protection as well as some return on the fixed income side, which is hard to come by.
“That requires some creativity,” he said, “but not much creativity because that’s how folks get into trouble.”
A report from Richardson GMP this month also warned against relying on government bonds and made the case for long-short credit strategies. It pointed to Japanese and German bonds, which started the year with lower yields and “provided nearly no ballast at all” in March.
“With the U.S. and Canada yields now at similarly low starting points, it is unlikely that they can provide anywhere near the same historical hedging properties as in previous downturns,” the report said.
Rather than diving into lower-quality assets to find yield, the report recommended long-short strategies for investment-grade credit.
Mesman also warned about duration risk on government bonds.
“I think the risk of government bond yields going higher, particularly in the long end of the market — longer-dated government bond yields — that’s something that’s underappreciated,” he said.
Artis Real Estate Investment Trust announces changes to its board and committee composition – Canada NewsWire
WINNIPEG, MB, Oct. 29, 2020 /CNW/ – Artis Real Estate Investment Trust (TSX: AX.UN) (“Artis” or the “REIT”) announced today that as part of its Board renewal initiative and its ongoing commitment to enhanced governance initiatives, the Board has undertaken a review of its composition. Based on new information obtained during this review, the Board has determined that Mr. Victor Thielmann is not independent and should not continue as a member of the Audit Committee and the Governance and Compensation Committee. Mr. Thielmann has provided his resignation from the Board of Artis effective immediately. On behalf of Artis, Mr. Warkentin, the Chair of the Board, extends his appreciation to Mr. Thielmann for his numerous years of valued service to Artis. Lauren Zucker, Bruce Jack and Ben Rodney will continue to serve as independent trustees on the Audit Committee.
Other changes include Mr. Wayne Townsend voluntarily stepping down as a member of the Governance and Compensation Committee, Mr. Ben Rodney replacing him on this committee and stepping down as a member of the Investment Committee, and Ms. Lauren Zucker being added to the Investment Committee as successor to Mr. Ben Rodney.
The vacancy left by Mr. Thielmann’s resignation will be filled by the Board as part of its Board renewal initiative. The Board has retained Rosin Executive Search to advise on new suitable Trustee candidates.
Artis is a diversified Canadian real estate investment trust investing primarily in industrial and office properties in select markets in Canada and the United States. Since 2004, Artis has executed an aggressive but disciplined growth strategy, building a portfolio of commercial properties which, as of June 30, 2020, comprised approximately 23.8 million square feet of leasable area. Artis is focused on growing its industrial portfolio through strategic development projects in its target markets.
The Toronto Stock Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this press release.
SOURCE Artis Real Estate Investment Trust
For further information: please contact Mr. Armin Martens, President and Chief Executive Officer, Mr. Jim Green, Chief Financial Officer or Ms. Heather Nikkel, Vice-President – Investor Relations of the REIT at 1.204.947.1250
G2S2 Capital Inc. Announces Investment in Cominar Real Estate Investment Trust – Canada NewsWire
MONTRÉAL, Oct. 28, 2020 /CNW/ – G2S2 Capital Inc. (“G2S2”) announces today that it has increased its ownership of trust units (“Units”) of Cominar Real Estate Investment Trust (“Cominar”) to over 10% of Cominar’s outstanding Units.
On October 28, 2020, G2S2 acquired 600,000 Units of Cominar through the facilities of the Chi-X alternative trading system at a price of CDN$7.30 per Unit (the “Acquisition”), representing approximately 0.34% of the outstanding Units. Prior to the Acquisition, G2S2 owned and exercised control over an aggregate of 18,245,100 Units of Cominar, representing approximately 9.99% of the outstanding Units. Immediately after the Acquisition, G2S2 owns and exercises control over an aggregate of 18,845,100 Units of Cominar, representing 10.33% of the outstanding Units.
G2S2 acquired the Units for investment purposes. G2S2 may, from time to time, depending on market and other conditions, increase or decrease its beneficial ownership, control or direction over Units of Cominar through market transactions, private agreements, or otherwise.
In accordance with National Instrument 62-103 – The Early Warning System and Related Take-Over Bid and Insider Reporting Issues, G2S2 has filed an early warning report regarding these transactions on the System for Electronic Document Analysis and Review (SEDAR) at www.sedar.com under Cominar’s issuer profile. Cominar’s head office is located at 2820 Laurier Blvd., suite 850 Quebec City, Québec G1V 0C1.
G2S2 Capital Inc. is a privately held investment holding company focused on creating value across a variety of businesses with a long term horizon. G2S2 is incorporated under the laws of Canada. G2S2 is controlled
by George & Simé Armoyan.
SOURCE G2S2 Capital Inc.
For further information: or to obtain a copy of the early warning report, please contact George Armoyan, Executive Chairman of G2S2 at 514-333-8800, extension 1925.
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