What Type Of Shareholders Make Up European Residential Real Estate Investment Trust's (TSE:ERE.UN) Share Registry?

The big shareholder groups in European Residential Real Estate Investment Trust (TSE:ERE.UN) have power over the company. Large companies usually have institutions as shareholders, and we usually see insiders owning shares in smaller companies. We also tend to see lower insider ownership in companies that were previously publicly owned.

European Residential Real Estate Investment Trust is not a large company by global standards. It has a market capitalization of CA$876m, which means it wouldn't have the attention of many institutional investors. Taking a look at our data on the ownership groups (below), it seems that institutions own shares in the company. We can zoom in on the different ownership groups, to learn more about European Residential Real Estate Investment Trust.

View our latest analysis for European Residential Real Estate Investment Trust

What Does The Institutional Ownership Tell Us About European Residential Real Estate Investment Trust?

Many institutions measure their performance against an index that approximates the local market. So they usually pay more attention to companies that are included in major indices.

As you can see, institutional investors have a fair amount of stake in European Residential Real Estate Investment Trust. This can indicate that the company has a certain degree of credibility in the investment community. However, it is best to be wary of relying on the supposed validation that comes with institutional investors. They too, get it wrong sometimes. It is not uncommon to see a big share price drop if two large institutional investors try to sell out of a stock at the same time. So it is worth checking the past earnings trajectory of European Residential Real Estate Investment Trust, (below). Of course, keep in mind that there are other factors to consider, too.

European Residential Real Estate Investment Trust is not owned by hedge funds. Looking at our data, we can see that the largest shareholder is 1832 Asset Management L.P. with 16% of shares outstanding. In comparison, the second and third largest shareholders hold about 12% and 4.4% of the stock. In addition, we found that Phillip Burns, the CEO has 0.9% of the shares allocated to their name.

A deeper look at our ownership data shows that the top 25 shareholders collectively hold less than half of the register, suggesting a large group of small holders where no single shareholder has a majority.

Researching institutional ownership is a good way to gauge and filter a stock's expected performance. The same can be achieved by studying analyst sentiments. Quite a few analysts cover the stock, so you could look into forecast growth quite easily.

Insider Ownership Of European Residential Real Estate Investment Trust

The definition of an insider can differ slightly between different countries, but members of the board of directors always count. Company management run the business, but the CEO will answer to the board, even if he or she is a member of it.

Most consider insider ownership a positive because it can indicate the board is well aligned with other shareholders. However, on some occasions too much power is concentrated within this group.

We can see that insiders own shares in European Residential Real Estate Investment Trust. In their own names, insiders own CA$17m worth of stock in the CA$876m company. It is good to see some investment by insiders, but it might be worth checking if those insiders have been buying.

General Public Ownership

The general public -- mostly retail investors -- own 54% of European Residential Real Estate Investment Trust. This level of ownership gives retail investors the power to sway key policy decisions such as board composition, executive compensation, and the dividend payout ratio.

Next Steps:

I find it very interesting to look at who exactly owns a company. But to truly gain insight, we need to consider other information, too. Take risks for example - European Residential Real Estate Investment Trust has 4 warning signs (and 2 which can't be ignored) we think you should know about.

If you are like me, you may want to think about whether this company will grow or shrink. Luckily, you can check this free report showing analyst forecasts for its future.

NB: Figures in this article are calculated using data from the last twelve months, which refer to the 12-month period ending on the last date of the month the financial statement is dated. This may not be consistent with full year annual report figures.

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