Yorkton Equity Group Inc.
Positive Outlook Amidst Rate Cuts
Published: 8/29/2024
Author: FRC Analysts
*See important disclosures at the bottom of this reportSector: Real Estate-Diversified | Industry: Real Estate
Ticker Symbols:
YEG - TSX 🔹
- YEG is up 18% since our previous report in June 2024. Q2 revenue and EBITDA were in line with our estimates. Revenue was up 36% YoY, and EBITDA was up 58% YoY, primarily driven by property acquisitions. EPS turned positive (from -$0.001 to $0.01), though it fell 8% short of our estimate because of higher interest expenses.
- At the end of Q2-2024, YEG owned $128M in real estate investments, including 10 residential projects totaling 518 units, and one commercial project spanning 28,036 sq. ft.
- Property valuations were up 1% QoQ, attributed to higher residential rent (up 1% QoQ) and occupancy (up 1 pp QoQ). We continue to anticipate property valuations increasing by