A look at the shareholders of European Residential Real Estate Investment Trust (TSE: ERE.UN) can tell us which group is more powerful. Institutions often own shares in larger companies, and we would expect insiders to own a noticeable percentage of smaller ones. We also tend to see a decrease in insider ownership in companies that were previously public.
European Residential Real Estate Investment Trust isn’t huge, but it’s not particularly small either. It has a market capitalization of C $ 985 million, which means that it generally expects certain institutions to be listed in the share register. Our analysis of company ownership, below, shows that institutions are visible on the share register. We can zoom in on the different property groups, to find out more about European Residential Real Estate Investment Trust.
Check out our latest analysis for European Residential Real Estate Investment Trust
What does institutional ownership tell us about the European Residential Real Estate Investment Trust?
Many institutions measure their performance against an index that approximates the local market. Thus, they generally pay more attention to companies that are included in the major indices.
We can see that European Residential Real Estate Investment Trust has institutional investors; and they own a good portion of the company’s shares. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. When several institutions hold a stock, there is always a risk that they are in a “crowded trade”. When such a transaction goes awry, several parties may compete with each other to sell stocks quickly. This risk is higher in a company with no history of growth. You can see the historical earnings and income of European Residential Real Estate Investment Trust below, but keep in mind that there is always more to tell.
European Residential Real Estate Investment Trust is not owned by hedge funds. Looking at our data we can see that the largest shareholder is 1832 Asset Management LP with 16% of the shares outstanding. Canadian Apartment Properties Real Estate Investment Trust is the second largest shareholder holding 11% of the common shares, and CI Global Asset Management owns approximately 7.1% of the shares of the company. Additionally, CEO Phillip Burns owns 0.9% of the company’s shares.
A closer look at our ownership data shows that the top 25 shareholders collectively own less than half of the ledger, suggesting a large group of small holders where no shareholder has a majority.
Institutional ownership research is a good way to assess and filter the expected performance of a stock. The same can be achieved by studying the feelings of analysts. There are a reasonable number of analysts covering the stock, so it can be helpful to know their overall vision for the future.
Insider ownership of a European residential real estate investment trust
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company is accountable to the board of directors and the board must represent the interests of the shareholders. Notably, sometimes senior executives themselves sit on the board of directors.
Most view insider ownership as a positive, as it can indicate that the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.
I can report that insiders own shares in European Residential Real Estate Investment Trust. As individuals, insiders collectively own CA $ 20 million worth of the business of CA $ 985 million. It’s good to see some investments from insiders, but it can be worth checking out if those insiders have bought.
General public property
The general public has a substantial 54% stake in European Residential Real Estate Investment Trust, which suggests that this is a fairly popular stock. With this amount of ownership, retail investors can collectively play a role in decisions that affect shareholder returns, such as dividend policies and the appointment of directors. They can also exercise the power to vote on acquisitions or mergers that may not improve profitability.
While it is worth considering the different groups that own a business, there are other factors that are even more important. Like risks, for example. Every business has them, and we’ve spotted 2 warning signs for European Residential Real Estate Investment Trust (1 of which is a bit disturbing!) that you should know about.
If you’d rather find out what analysts are predicting in terms of future growth, don’t miss this free analyst forecast report.
NB: The figures in this article are calculated from data for the last twelve months, which refer to the 12-month period ending on the last date of the month of date of the financial statement. This may not be consistent with the figures in the annual report for the entire year.
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