If you would like to know who actually controls Schroder Real Estate Investment Trust Limited (LON: SREI), then you will need to look at the composition of its share registry. Large companies usually have institutions as shareholders, and we usually see insiders holding shares in small companies. Previously state-owned companies tend to have less insider ownership.
The Schroder Real Estate Investment Trust, with a market cap of £ 237m, is a small-cap stock, so many institutional investors may not be aware of it. Our analysis of company ownership below shows that institutions are visible on the share register. To find out more about the investment fund Schroder Real Estate, we can scale up different groups of owners.
What does institutional ownership tell us about the investment fund Schroder Real Estate?
Institutional investors typically compare their own performance against the performance of a commonly tracked index. Therefore, they usually consider buying larger companies included in the relevant benchmark index.
We see that Schroder Real Estate Investment Trust does have institutional investors; and they own a significant portion of the company’s shares. This may indicate that the company enjoys a certain amount of credibility in the investment community. However, it is best not to rely on the supposed validation that institutional investors receive. They, too, are sometimes wrong. When multiple organizations own shares, there is always the risk that they are participating in an “overflowing deal”. When such a deal goes wrong, several parties can compete to sell the stock quickly. This risk is higher in a company with no growth history. You can see Schroder Real Estate Investment Trust’s historical earnings and revenues below, but keep in mind that there is always more to come.
Since institutional investors own more than half of the outstanding shares, the board of directors may have to pay attention to their preferences. Hedge funds don’t have many stocks in Schroder Real Estate Investment Trust. The largest shareholder of the company is Investec Wealth & Investment Limited with a 16% shareholding. Meanwhile, the second and third largest shareholders own 15% and 7.9% of the issued shares, respectively.
Our research also revealed that approximately 51% of the company is controlled by the five largest shareholders, suggesting that these owners have significant influence over the business.
While it makes sense to study data on a company’s institutional ownership, it also makes sense to study analyst sentiment to see which way the wind is blowing. As far as I can tell, the company is not covered by analysts, so it is probably hiding from the radar.
Insider ownership of Schroder Real Estate Investment Trust
The definition of insider may differ slightly from country to country, but board members are always counted. The management of the company does business, but the CEO will be accountable to the board of directors, even if he or she is a member.
Most consider insider ownership to be a positive thing, as it may indicate that the board is well aligned with other shareholders. However, in some cases, too much power is concentrated within this group.
According to our information, Schroder Real Estate Investment Trust Limited insiders own less than 1% of the company. However, we note that insiders may have an indirect interest through a private company or other corporate structure. Its market capitalization is only £ 237 million, and the board of directors only has £ 151,000 worth of shares in its own name. Many people prefer to see a board with a larger shareholding. The next good step might be Take a look at this rundown of insider buying and selling.
Common state property
With 25% of the shares, the general public has some power over the investment trust Schroder Real Estate. This size of ownership, although significant, may not be sufficient to change the company’s policy if the decision is not agreed with other major shareholders.
Private company property
We see that private companies own 7.0% of the issued shares. Private companies can be related parties. Sometimes insiders take an interest in a public company through participation in a private company rather than as an individual. While it is difficult to draw any general conclusions, it is worth highlighting this as an area for further research.
While the various groups that own the company are worth considering, there are other factors that are even more important. Take risk for example – Schroder Real Estate Investment Trust has 4 warning signs (and 2 concerning) we think you should be aware of this.
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NB: The figures in this article are calculated using data from the last twelve months, which refers to a 12-month period ending on the last day of the month in which the financial statement is dated. This may not be consistent with the full year annual report.
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