What type of shareholders make up the share register of European Residential Real Estate Investment Trust (TSE: ERE.UN)?
A look at the shareholders of European Residential Real Estate Investment Trust (TSE: ERE.UN) can tell us which group is more powerful. Insiders often own a large portion of younger and smaller companies, while larger companies tend to have institutions as shareholders. Companies that were previously state-owned tend to have fewer insiders.
With a market cap of C $ 1.0 billion, European Residential Real Estate Investment Trust is a decent size, so it’s probably on the radar of institutional investors. In the graphic below, we can see that the institutions are visible on the share register. Let’s dig deeper into each type of owner, to find out more about European Residential Real Estate Investment Trust.
See our latest analysis for European Residential Real Estate Investment Trust
What does institutional ownership tell us about the European Residential Real Estate Investment Trust?
Institutions typically measure themselves against a benchmark when reporting to their own investors, so they often become more enthusiastic about a stock once it’s included in a major index. . We would expect most businesses to have some institutions listed, especially if they are growing.
European Residential Real Estate Investment Trust already has institutions registered in the share register. Indeed, they hold a respectable stake in the company. This suggests some credibility among professional investors. But we cannot rely on this fact alone because institutions sometimes make bad investments, like everyone else. It is not uncommon to see a sharp drop in the stock price if two large institutional investors attempt to sell a stock at the same time. It is therefore worth checking out the past earnings trajectory of European Residential Real Estate Investment Trust (below). Of course, keep in mind that there are other factors to consider as well.
We note that the hedge funds do not have a significant investment in European Residential Real Estate Investment Trust. Our data shows that 1832 Asset Management LP is the largest shareholder with 14% of the shares outstanding. With 11% and 7.5% of the shares outstanding respectively, Canadian Apartment Properties Real Estate Investment Trust and CI Global Asset Management are the second and third largest shareholders. Additionally, we found that Phillip Burns, the CEO, owns 0.9% of the shares attributed to their name.
Our studies suggest that the top 25 shareholders collectively control less than half of the company’s shares, which means that the company’s shares are widely disseminated and there is no dominant shareholder.
While it makes sense to study a company’s institutional ownership data, it also makes sense to study analysts’ sentiments to know which way the wind is blowing. There are a lot of analysts covering the stock, so you can look at expected growth quite easily.
Insider ownership of a European residential real estate investment fund
The definition of an insider may differ slightly from country to country, but board members still count. The management of the company manages the company, but the CEO will report to the board of directors, even if he is a member of the board.
I generally consider insider ownership to be a good thing. However, there are times when it is more difficult for other shareholders to hold the board accountable for decisions.
We can see that insiders own shares in European Residential Real Estate Investment Trust. It has a market capitalization of only C $ 1.0 billion and insiders have shares worth C $ 17 million in their own name. It shows at least some alignment. You can click here to see if these insiders have bought or sold.
General public property
The general public – including retail investors – own 57% of European Residential Real Estate Investment Trust. This level of ownership gives mainstream investors some power to influence key policy decisions such as board composition, executive compensation, and dividend payout ratio.
While it is worth considering the different groups that own a business, there are other factors that are even more important. Consider, for example, the ever-present specter of investment risk. We have identified 4 warning signs with European Residential Real Estate Investment Trust (at least 1 which is potentially serious), and understanding them should be part of your investment process.
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.
This Simply Wall St article is general in nature. We provide commentary based on historical data and analyst forecasts using only unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell shares and does not take into account your goals or your financial situation. Our aim is to bring you long-term, targeted analysis based on fundamental data. Note that our analysis may not take into account the latest announcements from price sensitive companies or qualitative documents. Simply Wall St has no position in any of the stocks mentioned.
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