- Mainstreet Equity (TSX:MEQ), a highly profitable multi-family property manager with almost 18,000 units, suffered a cybersecurity breach on Tuesday affecting its internal systems
- Though the risk of compromised data remains, the company’s exemplary operations make it a strong candidate for due diligence, especially considering a recent 12 per cent dip in share price
- Mainstreet Equity is a Calgary-based real estate operating company active in British Columbia, Alberta, Saskatchewan and Winnipeg
- Mainstreet Equity stock has added 22.3 per cent year-over-year
Mainstreet Equity (TSX:MEQ), a highly profitable multi-family property manager with almost 18,000 units, suffered a cybersecurity breach on Tuesday affecting its internal systems.
The company is conducting an investigation alongside third-party cybersecurity experts, including “assessing the extent to which any data has been compromised,” but it has “no reason to believe that its operating platform has been affected by this incident in any way,” according to Friday’s news release. The market broadly agrees, with the stock up by an indifferent 0.12 per cent as of 10:55 am ET.
“The security of Mainstreet’s tenants, employees and other stakeholders remains the top priority for us,” Bob Dhillon, Mainstreet Equity’s president and chief executive officer, said in a statement. “The investigation into the cause and scope of this incident is ongoing, and we will provide updates in respect of this situation as they become available.”
Why it’s time to buy Mainstreet Equity stock
While the uncertainty surrounding the cyber attack should temper your enthusiasm, Mainstreet Equity has built an impressive operational track record marked by consistent revenue growth, robust profitability, and more than 20 years of growth without shareholder dilution.
The company grew revenue from C$137.61 million in 2019 to C$210.03 million in 2023, backed by net income growth from C$58.69 million to C$109.41 million, translating into a more than 200 per cent shareholder return over the period. At a more granular level, this includes 10 consecutive quarters of double-digit, year-over-year growth across key operating metrics as of Q2 2024.
From a 10,000-foot view, Mainstreet shareholders are up by more than 6,500 per cent since 1999, validating the company’s value investing approach of acquiring assets at distressed prices during low cost-of-capital environments.
As Mainstreet looks to deploy its C$396 million in cash as of Q2 2024 to capitalize on Canada’s housing shortage, rental supply gaps and population growth, shareholders have every reason to expect management to continue expanding the company’s C$3.2 billion portfolio at attractive valuations, making the stock’s more than 12 per cent dip since April an entry point worth considering.
About Mainstreet Equity
Mainstreet is a Calgary-based real estate operating company active in British Columbia, Alberta, Saskatchewan and Winnipeg, with year-to-date holdings of more than 17,800 units.
Mainstreet Equity Corp. stock (TSX:MEQ) is up by 0.12 per cent, trading at C$170 per share as of 10:55 am ET. The stock has added 22.3 per cent year-over-year.
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(Top illustration: Mainstreet Equity)