Opinions
Andrew Moffs
Tricon Residential
TCN-T
BUY
Mar 30, 2023
Stock price when the opinion was issued
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Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Good if you are looking for growth. Has seen a good level of growth. Pays a dividend yield of 1.6%. The company is somewhat leveraged. Unlock Premium - Try 5i Free
Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. Likes what they have done to set up the company well. Potential remains good. Likes the management and markets are starting to notice TCN. It is up 50% in the past year. Well positioned in the US market and their asset portfolio looks good. First pick in the Canadian real estate sector. Unlock Premium - Try 5i Free
The market has punished it too much. It is in the residential rental sector in the U.S., especially in the sun belt. The rentals are affordable and appeal especially to the 35 to 44 year old demographic who want to rent good homes rather than buy. The share price is at a 40% discount to the total value of all its homes. Good opportunities should emerge.
Great job on its portfolio, which focuses on 35-39 year olds who've chosen to rent. Likes the sector. Very wide discount to NAV, so it's a buy. High rates on high debt has prevented new asset purchases. Lower rates would be a positive, and would eventually open up the spigot to new purchases.