Mainstreet Equity Corp – An Eye-popping Performance and Strategic Future Plans
It’s good to read inspirational stories of businesses which overcome adversities and become successful. One such business is Mainstreet Equity Corp. This Calgary-based company bet on Alberta and went on investing in the western Canadian province in 2015 when the recession hit and several businesses left the province.
Through recessions, wildfires and record low costs for Western Canadian Select, Mainstreet Equity Corp not only continued to hold their stake, but doubled over on Alberta, adding to its portfolio and investment. This is pretty impressive if you hear what company founder, CEO and President Bob Dhillon has to say.
The Q1 2020 results of the company mark the 7th consecutive quarter of year-over-year dual-figured growth in each of its key metrics, achieving a steady improvement in its performance that has kept on delivering non-dilutive value to stakeholders. Despite the fact that Q1 is often a low rental season, the company has achieved a constant growth in rental revenue, funds from operations (FFO) and net operating income (NOI).
According to CEO Bob Dhillon, the achievements of the organization over the past few years are endorsement to their countercyclical growth strategy, which continued to offer real value to their investors ever since they listed in TSX in 2000. He also expressed a confidence that while entering the remaining financial year, a positive and basic shift in the macroeconomic climate, reinforced by a healthy growth in population in core markets, will become the base of future wealth generation for years.
The countercyclical growth strategy was introduced by the organization’s management team five years ago as a measure to fight an upcoming economic recession. They are also partially relevant to an ongoing population gush throughout Canada, including Alberta, which has driven down job rates and boosted the value-added growth model of the company. 226,825 new residents were added to Alberta over the last 4 years, 70,595 of which were added in 2019 alone. This same period saw a flat rental supply in the province, with only 13,736 new units added, including townhomes. 76% of Alberta residents live in the Edmonton/Calgary corridor and here’s where most of Mainstreet’s properties are located.
The company recognizes that a significant number of these new residents are either future home-buyers, children, immigrants, foreign students and young people who will keep on entering and so, the company has plans to expand the rental space which is currently only 123,134 (CMHC). The company believes that these supply-demand statistics indicate a fundamental vigor in the rental market, that according to Mainstreet, will extend well into the future, supporting the 100% organic, non-dilutive growth model of Mainstreet.
We’d like to congratulate Bob Dhillon for his company’s achievements and wish him the best of luck for his future plans.