Real set to join Russell 3000® Index
The Real Brokerage, a publicly traded real estate brokerage under the NASDAQ ticker REAX, is set to join the Russell 3000® Index on July 1, 2024. This inclusion results from the annual reconstitution capturing the 4,000 largest US stocks, ranked by market capitalization as of April 30. Being part of the Russell 3000® Index means automatic inclusion in either the large-cap Russell 1000 or small-cap Russell 2000 Index, and relevant growth and value style indexes. Real's CEO, Tamir Poleg, highlighted that this milestone reflects the company's decade-long dedication and will enhance its visibility within the investment community. Russell indexes, used by investment managers and institutional investors, have about $10.5 trillion in assets benchmarked against them.
- Inclusion in the Russell 3000® Index will increase visibility for Real Brokerage within the investment community.
- Automatic inclusion in either the Russell 1000 or Russell 2000 Index enhances credibility.
- The milestone reflects a decade of consistent growth and dedication.
- Membership indicates a strong market capitalization ranking.
- Russell Indexes' benchmark status involves about $10.5 trillion in assets, potentially attracting new investors.
- The annual reconstitution is based on market-cap rankings as of April 30, which may not reflect the most current market conditions.
- Inclusion lasts only for one year, requiring continuous strong performance to remain.
Insights
Joining the Russell 3000® Index marks a significant milestone for The Real Brokerage Inc. This inclusion boosts the company's visibility among a wider audience of institutional investors and fund managers who use these indexes as benchmarks. This can lead to more liquidity in the stock as well as a potentially higher valuation, as more investors become aware of and invest in the company.
Traditionally, inclusion in a major index like the Russell 3000 can result in increased demand for the stock from index funds and ETFs that track the index. This can lead to a short-term upward movement in the stock price. However, it’s important to bear in mind that while the initial inclusion may boost the stock, the long-term impact will ultimately depend on the company’s financial performance and growth prospects.
Investors should pay close attention to how the company plans to leverage this increased visibility to attract more interest and invest in its growth strategies. For example, understanding how Real intends to scale its operations, improve its technology platform and continue to innovate in the real estate brokerage space will be crucial.
From a financial standpoint, The Real Brokerage Inc. being added to the Russell 3000® Index could be seen as a validation of its market performance and growth potential. This can potentially lead to an increased market capitalization as a result of more institutional interest. However, investors should look beyond the surface and scrutinize the company’s fundamentals.
Review metrics such as earnings growth, profit margins and cash flow. Examine whether the company has a strong balance sheet and sustainable business model. Also, pay attention to any recent financial reports or forecasts that can provide insight into the company’s future performance. Inclusion in an index does not guarantee success, but it is often a positive indicator of a company’s current standing.
The annual Russell US Indexes reconstitution captures the 4,000 largest US stocks as of Tuesday, April 30th, ranking them by total market capitalization. Membership in the US all-cap Russell 3000® Index, which remains in place for one year, means automatic inclusion in the large-cap Russell 1000 Index or small-cap Russell 2000 Index as well as the appropriate growth and value style indexes. FTSE Russell determines membership for its Russell indexes primarily by objective, market-capitalization rankings, and style attributes.
“We’re honored to be joining the Russell 3000® Index, a milestone that reflects a decade of hard work and dedication building Real into the real estate technology leader it is today,” said Tamir Poleg, Real’s Chief Executive Officer. “Our success wouldn’t be possible without the unwavering commitment of our agents and employees. Joining this prestigious index will amplify Real’s visibility within the investment community, enabling us to share our story and unique agent value proposition with a broader audience.”
Russell indexes are widely used by investment managers and institutional investors for index funds and as benchmarks for active investment strategies. According to the data as of the end of December 2023, about
Fiona Bassett, CEO of FTSE Russell, An LSEG Business, commented, “Russell indexes–now in their 40th year–continue to evolve to reflect the dynamic US economy. Annual rebalancing plays a vital role in establishing accurate benchmarks, ensuring they correctly mirror their designated market segments and remain unbiased in terms of size and style.”
For more information on the Russell 3000® Index and the Russell indexes reconstitution, go to the “Russell Reconstitution” section on the FTSE Russell website.
About Real
Real (NASDAQ: REAX) is a real estate experience company working to make life’s most complex transaction simple. The fast-growing company combines essential real estate, mortgage and closing services with powerful technology to deliver a single seamless end-to-end consumer experience, guided by trusted agents. With a presence throughout the
About FTSE Russell
FTSE Russell is a leading global provider of benchmarking, analytics, and data solutions for investors, giving them a precise view of the market relevant to their investment process. A comprehensive range of reliable and accurate indexes provides investors worldwide with the tools they require to measure and benchmark markets across asset classes, styles, or strategies.
FTSE Russell index expertise and products are used extensively by institutional and retail investors globally. For over 30 years, leading asset owners, asset managers, ETF providers and investment banks have chosen FTSE Russell indexes to benchmark their investment performance and create ETFs, structured products, and index-based derivatives.
FTSE Russell is focused on applying the highest industry standards in index design and governance, employing transparent rules-based methodology informed by independent committees of leading market participants. FTSE Russell fully embraces the IOSCO Principles, and its Statement of Compliance has received independent assurance. Index innovation is driven by client needs and customer partnerships, allowing FTSE Russell to continually enhance the breadth, depth and reach of its offering.
FTSE Russell is wholly owned by London Stock Exchange Group.
For more information, visit https://www.lseg.com/en/ftse-russell.
Forward-Looking Information
This press release contains forward-looking information within the meaning of applicable Canadian securities laws. Forward-looking information is often, but not always, identified by the use of words such as “seek”, “anticipate”, “believe”, “plan”, “estimate”, “expect”, “likely” and “intend” and statements that an event or result “may”, “will”, “should”, “could” or “might” occur or be achieved and other similar expressions. These statements reflect management’s current beliefs and are based on information currently available to management as of the date hereof. Forward-looking information in this press release includes, without limiting the foregoing, expectations regarding Real’s inclusion in the US all-cap Russell 3000® Index and related indexes.
Forward-looking information is based on assumptions that may prove to be incorrect, including but not limited to Real’s business objectives, expected growth, results of operations, performance, business projects and opportunities and financial results. Real considers these assumptions to be reasonable in the circumstances. However, forward-looking information is subject to known and unknown risks, uncertainties and other factors that could cause actual results, performance or achievements to differ materially from those expressed or implied in the forward-looking information. Important factors that could cause such differences include, but are not limited to, slowdowns in real estate markets, economic and industry downturns, the success of Real’s programs, Real’s ability to continue to be included in the US all-cap Russell 3000® Index, Real’s ability to attract new agents and retain current agents and those risk factors discussed under the heading “Risk Factors'' in the Company’s Annual Information Form dated March 14, 2024, a copy of which is available under the Company’s SEDAR+ profile at www.sedarplus.ca. These factors should be carefully considered and readers should not place undue reliance on the forward-looking statements. Although the forward-looking statements contained in this press release are based upon what management believes to be reasonable assumptions, Real cannot assure readers that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and Real assumes no obligation to update or revise them to reflect new events or circumstances, except as required by law.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240610714959/en/
Investor inquiries, please contact:
Ravi Jani
Vice President, Investor Relations and Financial Planning & Analysis
investors@therealbrokerage.com
908.280.2515
For media inquiries, please contact:
Elisabeth Warrick
Senior Director, Marketing, Communications & Brand
elisabeth@therealbrokerage.com
201.564.4221
Source: The Real Brokerage Inc.
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