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Real State and Property Management: What are FirstService Brands?

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The real estate and property management industries are immensely large in terms of revenues and volume of corporations. The industry tends to be cyclical, and highly impacted by recession. The entire industry felt a large trough during the mortgage crisis beginning in 2007 through the recession of 2009. Many companies couldn’t continue operations leaving more opportunity for expansion and acquisition for those that did survive. First Service Corporation is one of those companies that survived the recession, consumer spending is continuing to grow as the US economy recovers, pumping funds back into the market. Globally, they are one of the more well known companies in the real estate and property management industry. They have grown to manage over 2.5 billion square feet of properties worldwide and they reported record numbers for the quarter and year ending December 31, 2013. At the close of the 2013 fiscal year the corporation’s earnings per share have grown from the previous year’s $1.64 to now $2.15. The most recent reporting of their return on equity lists them at 11.04% and their beta stands at 1.59, nearly 60% more volatile than the market. Their revenues for 2013 concluded at $2.34bil, up 12% from the previous year while their corporate costs jumped from $11.6mil to $17.3mil. This increase in costs was nearly entirely attributed to the recent heightening of their performance-based compensation plan conducted in attempts of giving their employees more incentive to continue to strive for the success of the corporation. FSRV can be broken down into their three platforms of services: Colliers International, FirstService Residential, and FirstService Brands. Colliers International is their commercial re... ... middle of paper ... ...es, which really adds up considering they manage 2.5 billion square feet of properties. FirstService Brands reported revenues for 2013 as 140.3 mil, up 12% from the previous year. FSRV, the ticker for First Service Corporation was most recently traded at $48.35 under a $1.74bil market cap. My plan of action would not be to invest or sell, however to hold if I were already a shareholder. For me, as a college student with no income until summer, the volatility of their industry is too risky to invest in. I cannot afford the most negative consequence even though the positive alternative would be equal in degree. If I were a shareholder I would hold it, their recovery since the recession has been promising and recent record year and quarter ending Dec. 31, 2013 provides me intuitive reason to believe the future will bring better days for their stock price.
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