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Canadian REITs Trading at 52-Week Lows Report Insider Buys

August 28, 2013 | About:
Monica Wolfe

Monica Wolfe

129 followers
Over the past couple of weeks there have been several companies in the Canadian real estate market that have reported insider buys as their share prices hit 52-week lows. The following three companies reported the largest insider buys in terms of number of insiders buying, amount of shares, transaction amount and are a part of the real estate market traded on the Toronto Stock Exchange.

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Dundee Industrial Real Estate Investment Trust (TSX:DIR.UN)

Throughout the month of August two insiders have reported eight insider buys. The insider buys come from Interim President and CEO Randy Cameron and Chairman of the Executive Committee Michael Cooper.

Chairman Michael Cooper has made five transactions in August, adding a total of 90,000 shares to his stake. Cooper bought these shares in the price range of $8.45 to $8.59, with an average price of $8.53 per share. The price per share has dropped about -1.96% since then. Cooper now holds on to at least 800,000 shares of company stock.

Randy Cameron has made three different insider buys thus far in the month of August. The CEO purchased a total of 1,315 shares in the price range of $8.61 to $8.63. The price per share has decreased about -2.78% since then.

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Dundee Industrial REIT is an unincorporated, open-ended real estate investment trust that provides investors with direct exposure to the industrial real estate sector while receiving the benefits of a REIT structure. The company’s portfolio is made up of high-quality light industrial properties comprising of approximately 15.7 million square feet of gross leasable area located across Canada.

Dundee Industrial’s historical price:

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The company is currently trading at a 52-week low share price of $8.38.

Dundee Industrial REIT has a market cap of $458.195 million. Its shares are currently trading at around $8.38 with a P/S ratio of 17.67 and a P/B ratio of 1.15. The dividend yield of Dundee stocks is 6.75%.

Retrocom Mid-Market Real Estate Investment Trust (TSX:RMM.UN)

Over the past week Director Edward Dato made an insider buy into Retrocom Mid-Market. The director added 5,000 shares to his stake at an average price of $4.81 per share. This transaction cost him a total of $24,050. Since this buy, the price per share has increased approximately 0.26%. As of this buy, Dato holds on to 86,000 shares of company stock.

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Retrocom REIT focuses on owning and acquiring retail properties across Canada with the objective of producing a geographically diversified portfolio of properties with stable and growing cash flows. The REIT invests primarily in income-producing retail properties with strong tenant covenants, stable yields, low vacancy levels and strong growth potential.

Retrocom’s historical revenue and net income:

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The analysis on Retrocom reports that the company’s revenue has been in decline over the past five years, the company has issued CAD170.01 million of debt over the past three years and that the P/B ratio is at a three-year low.

The Peter Lynch Chart suggests that the company is currently undervalued:

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Retrocom is currently trading at a 52-week low of $4.82.

Retrocom Mid-Market has a market cap of $295.469 million. Its shares are currently trading at around $4.82 with a P/E ratio of 3.66, a P/S ratio of 2.99 and a P/B ratio of 0.63. The dividend yield of Retrocom stocks is 9.33%.

FAM Real Estate Investment Trust (TSX:F.UN)

Over the past couple of weeks two insiders have reported five different insider buys. These insider buys come as the share price drops under $9 for the first time.

Director Pamela Spackman bought 5,000 shares at an average price of $8.45 per share. This transaction cost her a total of $42,250. Since her buy the price per share has increased approximately 2.37%. Spackman now holds on to 10,000 shares of FAM Real Estate.

Matthew Goldfarb made four different buys adding a total of 5,000 shares to his stake. The insider bought these shares in the price range of $8.125 to $8.136 per share, with an average price of $8.13. Since then the price per share has increased about 6.39%.

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FAM REIT is a diversified commercial real estate investment trust focused on owning and acquiring industrial, office and retail real estate located in Canada. The REIT’s portfolio consists of approximately 1.7 million square feet of gross leasable area.

FAM’s historical price:

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FAM Real Estate Investment Trust has a market cap of $50.8735 million. Its shares are trading at around $8.65 with a P/B ratio of 0.71.

You can check out all Canadian Insider Buys trading at 52-week lows by using the GuruFocus All-in-One Screener.

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