Tricon Residential Inc T.TCN

More Analysis of Results

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EPS of $0.16 beat estimates of $0.122; revenue of $197.4M beat estimates of $113.5M. EBITDA of $147M crushed estimates of $69M. However, TCN narrowed its cash flow guidance, citing lower rent and ancillory revenue. This did surprise analysts. Cash flow per share is expected to be between $0.55 and $0.58 versus $0.57 estimated. It also expects less acquisitions this year. The Toronto segment still shows promise and the stock is still up 11% YTD, but the outlook may mute things for a quarter or two. That said, we would not change our overall positive viewpoint here. (5iResearch)

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Additional comments. GLTA TCN pays a small yield of 2%, its margins have shown some cyclicality, but it is trading below book value and revenue growth has been tremendous. The company places emphasis on top-line growth as opposed to dividends, and it has a nice free cash flow yield of ~5%. We like TCN for its exposure to the US sunbelt and largely we feel that with an eventual resumption in