September 24, 2021

1 Canada Housing Stock to Own in 2021

2 min read
The red-hot Canada housing market showed some signs of cooling in the month of April....

The red-hot Canada housing market showed some signs of cooling in the month of April. Sales slipped from the month of March, but still turned in record numbers compared to past years. Low supply, strong demand, and a friendly lending environment should continue to underpin one of the most explosive real estate markets on the planet.

Canadians on the hunt for stocks linked to this market should consider Bridgemarq Real Estate (TSX:BRE). This Ontario-based company provides various services to residential real estate brokers and REALTORS across Canada. Shares of Bridgemarq have climbed 19{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} in 2021. The stock has increased 68{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} year over year.

Bridgemarq released its first quarter 2021 results on May 11. Revenue rose 18{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} from the previous year to $13.1 million. It was powered by Canada’s strong housing market as well as an increase in the number of REALTORS in the company network. However, it still posted a net loss of $2.5 million or $0.27 per share.

The company said that the difference was due to non-cash, revaluation adjustments on the Exchangeable Units issued by Bridgemarq.

The company reported distributable cash flow (DCF) of $5.6 million or $0.44 per fully diluted share – up from $3.9 million or $0.30 in Q1 2020. Investors should still be stoked for the company’s future as Canada’s housing market displays continued signs of long-term strength.

Bridgemarq offers a monthly dividend of $0.113 per share. That represents a tasty 7.6{e5fab30bc1af2ab9862fe5c16f5be581fd243b6ad78468b48e940aadfb2b849d} yield. Shareholders have been able to feast on its strong growth and income over the past year.

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