BC Business
Currently Tribe serves around 600 communities with 100,000 residents, but by working with developers through the marketing and construction of new projects, it aims to bring many more new units into its community over the next few years.
Tribe Property Technologies has created a platform that could replace traditional property management services
The stock: Real estate remains one of those sectors most resistant to digital transformation. Sure, we all browse homes to buy or rent online, but in the end it’s an industry still driven by personal connections and ample fees. Startups continue to look for cracks in the edifice, however. Take Tribe Property Technologies (TSXV:TRBE), which is trying to connect owners, tenants, councils, developers, vendors and property managers in a single platform.
The drivers: Residential property management is a US$110-billion industry in North America and almost US$3 billion goes into property management software annually. The hard part in cracking this fragmented market is finding a viable business model; where or who do the revenues come from? Founded in 2011, Vancouver-based Tribe has identified three revenue streams: software and services, transactional fees and digital services and partnerships (with telecoms, insurers, etc.).
Currently Tribe serves around 600 communities with 100,000 residents, but by working with developers through the marketing and construction of new projects, it aims to bring many more new units into its community over the next few years. Its Tribe Home Community Platform provides communication tools, online payment options, amenity reservations, access to records and a ticketing system for dealing with complaints.
Tribe is still tiny, with a stock price of 96 cents and market cap of $21 million as of August 1. In the first quarter of this year it posted a $2.4-million net loss on revenues of $4.7 million. At least some in the real estate business have taken notice, though. The Aquilini Investment Group is currently the largest shareholder with a 21-percent stake.
Word on the street: The three analysts who cover Tribe give it an average 12-month price target of $3.50. Haywood Capital Markets‘ Gianluca Tucci, who does not formally cover the stock, issued a watchlist report July 31 saying, “Given the current macro environment, management team and financial position, we believe Tribe Property Technologies is an early mover in the digitization of the property management sector, supporting the robust growth seen in community complex living.”
Coming and going: Vancouver-based Pan American Silver (TSX:PAAS) has followed through on plans to divest non-core assets arising from its acquisition of Yamana Gold, including a 56 percent interest in the MARA copper project in Argentina to Glencore PLC for US$475 million plus a production royalty, as well as smaller assets collectively worth $118 million. PAAS rose 7 percent on the news Monday.