Why Is TNT Stock Up 44% After Earnings?

When it comes to finding stocks on their way up, a surge in share price can be enticing – if it lasts.

| More on:
space ship model takes off

Source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s premium investing services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Earnings reports can be the ultimate rollercoaster for investors, acting as major catalysts that can send stock prices soaring or plummeting. When a company announces earnings that exceed expectations, it often sparks a surge of investor confidence, thus leading to a buying frenzy and a healthy bump in stock prices. On the flip side, if the earnings fall short of projections, panic can set in, thereby causing investors to scramble for the exits and triggering a sell-off. So today, let’s look at one stock experiencing the former, and why more growth could be on the way.

Created with Highcharts 11.4.3True North Commercial Real Estate Investment Trust PriceZoom1M3M6MYTD1Y5Y10YALLwww.fool.ca

TNT stock

True North Commercial Real Estate Investment Trust (TSX:TNT.UN) is like that steady friend who always shows up with a solid plan, especially when it comes to real estate! Specializing in office and industrial properties across Canada, this real estate investment trust (REIT) is all about providing reliable income for its investors. With a diverse portfolio of well-located properties, True North focuses on long-term leases with quality tenants, which helps keep the cash flow rolling in. This makes it a favourite among those looking for stable, income-generating investments in the real estate sector.

What sets True North apart is its commitment to sustainability and responsible management, showing that it cares about more than just the bottom line. With a strong management team at the helm, it’s always on the lookout for new opportunities to expand its portfolio. All while ensuring it maintains a healthy balance between growth and risk.

Into earnings

True North Commercial REIT recently released its Q2 2024 earnings, and the results were enough to send its shares soaring! During the quarter, the REIT completed 152,600 square feet of leasing and renewals, with a weighted average lease term of 4.3 years. The star of the show was the normalized same property net operating income (NOI) growth of 2.4% – thus showcasing the REIT’s ability to maintain occupancy and foster strong tenant relationships. CEO Daniel Drimmer highlighted this achievement, stating, “This quarter saw continued strength in leasing activity achieved by the REIT, which translated into normalized same property net operating income growth of 2.4%.”

In addition to solid leasing activity, True North successfully sold four non-core assets, further boosting its financial liquidity. The REIT is also committed to its normal course issuer bid (NCIB) strategy, allowing it to repurchase trust units at a significant discount to their net asset value. With an occupancy rate of approximately 90% and an emphasis on maintaining a strong financial position, True North is not just holding its ground. It’s actively positioning itself for future growth. This upbeat performance reflects the REIT’s solid foundation and strategic approach to real estate, thus making it a compelling option for investors seeking stability and potential appreciation!

Still valuable

True North still has some compelling qualities that may make it a valuable investment. With a current market cap of approximately $189.2 million and a forward annual dividend yield of around 13.1% at writing, it offers a tempting income opportunity for dividend-seeking investors. Despite some fluctuations in revenue and NOI, the REIT has managed to maintain a solid occupancy rate of about 90% and a healthy focus on leasing activity. This indicates resilience in its operations. Plus, its recent efforts to strategically repurchase units at a discount could signal management’s confidence in the company’s value moving forward.

However, it’s essential to keep an eye on the financial ratios, as the REIT currently shows a profit margin down 39% and a total debt of $773.2 million. This could raise some eyebrows among more conservative investors. With a return on equity down 10.7%, there’s room for improvement. Yet the management team seems committed to navigating these challenges. As they say, “Where there’s a will, there’s a way,” and True North’s strategy to enhance liquidity and repurchase trust units may just be the way to reinforce its standing in the market. All in all, TNT.UN could still be worth considering, especially for those who appreciate a high-yield dividend investment with growth potential!

Should you invest $1,000 in True North Commercial Real Estate Investment Trust right now?

Before you buy stock in True North Commercial Real Estate Investment Trust, consider this:

The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the Top Stocks for 2025 and Beyond for investors to buy now… and True North Commercial Real Estate Investment Trust wasn’t one of them. The Top Stocks that made the cut could potentially produce monster returns in the coming years.

Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $20,697.16!*

Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 29 percentage points since 2013*.

See the Top Stocks * Returns as of 3/20/25

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

Fool contributor Amy Legate-Wolfe has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Confidently Navigate Market Volatility: Claim Your Free Report!

Feeling uneasy about the ups and downs of the stock market lately? You’re not alone. At The Motley Fool Canada, we get it — and we’re here to help. We’ve crafted an essential guide designed to help you through these uncertain times: "5-Step Checklist: How to Prepare Your Portfolio for Volatility."

Don't miss out on this opportunity for peace of mind. Just click below to learn how to receive your complimentary report today!

Get Our Free Report Today

More on Dividend Stocks

TFSA (Tax-Free Savings Account) on wooden blocks and Canadian one hundred dollar bills.
Dividend Stocks

Here’s Exactly How a $20,000 TFSA Could Potentially Grow to $200,000

Index funds like the iShares S&P/TSX Capped Composite Index (TSX:XIC) are tax free in a TFSA.

Read more »

Dividend Stocks

How I’d Invest $6,000 in Canadian Real Estate Stocks to Build Lasting Wealth

Canadian REITs on sale! See how grocery-anchored retail properties offering 9% yields could turn $6,000 into lasting wealth despite US…

Read more »

rain rolls off a protective umbrella in a rainstorm
Dividend Stocks

Economic Headwinds: Should You Still Consider Buying the Dip?

A market dip might seem like a bumpy road, but it can be far smoother in the future with the…

Read more »

e-commerce shopping getting a package
Dividend Stocks

Consumer Spending Plays Amidst the Current Market Dip

Consumption may go down in market dips, but certain consumer stocks are certainly better off than others.

Read more »

Asset Management
Dividend Stocks

12% Dividend Yield! I’m Buying This TSX Stock and Holding for Decades

Stocks with high-dividend yields carry risks. But they could be a good long-term investment. Here is a 12% dividend stock…

Read more »

Canadian flag
Dividend Stocks

How I’d Build a Foundation of Canadian Value Stocks in My Investment Strategy

Canadian investors can explore iShares Canadian Value Index ETF for value stock ideas to build a foundation for their diversified…

Read more »

Canadian dollars are printed
Dividend Stocks

How I’d Transform a $30,000 TFSA Into a Cash-Flow Machine

Here's why TFSA investors should consider owning dividend stocks such as Mullen Group in 2025.

Read more »

A woman shops in a grocery store while pushing a stroller with a child
Dividend Stocks

Dip Buyers Could Win Big in Today’s Market Dip

If you want to buy the dip, think long-term. Which is why this TSX stock is a top option.

Read more »