- Dicembre 2, 2022
- Posted by: Oliver
- Categoria: Economics, Finance & accounting
Tricon is an up-and-coming residential REIT. The company is invested in more than 31,000 single and multi-family units across Northern America. In addition, Tricon manages its own properties with a value-added technology-enabled platform, allowing for efficient integration.
Tricon strolled past its third-quarter earnings estimates earlier this month, dominating its revenue target by $34.16 million and succeeding its earnings-per-share expectation by $0.35 per share ($0.49 vs. $0.14 expected). Subsequently, the firm raised its full-year funds from operations guidance by $0.13 to $0.15 per share.
Furthermore, the REIT hosts solid fundamentals, with its 98% occupancy rate and 68.5% operating margin. Moreover, Tricon’s blended growth rate is robust at 8.4%, indicating a solid investment thesis.
A noteworthy update is the REIT’s recent divestment of its Sun Belt property buildings. Tricon offloaded 20% of its sub-portfolio for $315 million in gross proceeds. How the proceeds will be deployed remains ambiguous; however, Tricon will likely utilize the funds for debt reduction as elevated interest rates don’t provide an acquisitions-conducive market.
Lastly, Tricon exhibits a forward dividend yield of 2.63% and has a forward price/FFO ratio of 14.4x, suggesting it’s an asset waiting to be snapped up by investors.
Is TCN REIT a Buy, According to Analysts?
Turning to Wall Street, Tricon Residential earns a Strong Buy consensus rating based on eight Buys and one Hold assigned in the past three months. The average TCN price target of $12.02 indicates 34.8% upside potential.
