A
s an investor, it's essential to aim for a portfolio that outperforms the market average. However, some stocks may consistently fall short of this benchmark. For Artis Real Estate Investment Trust (TSE:AX.UN), shareholders have seen their share price drop 39% over the last three years, underperforming the market return of around 23%. Let's examine if the company's long-term performance aligns with its underlying business progress.

    While some may argue that markets are efficient, research suggests they're dynamic and prone to over-reaction. One way to gauge sentiment is by comparing earnings per share (EPS) with the share price. Artis Real Estate Investment Trust has been profitable in the past but made a loss in the last twelve months, making EPS an unreliable metric at this stage. Other metrics may provide a better understanding of its value changes over time.

    The healthiness of dividend payments suggests they haven't concerned investors, but the weak share price might be related to the company's declining revenue, which has been decreasing by 22% annually over three years. This could raise concerns about long-term growth potential. Insiders have made significant purchases in the last year, which is a positive sign.

    When evaluating investment returns, it's crucial to consider total shareholder return (TSR) and share price return. TSR accounts for cash dividends and discounted capital raisings, providing a more comprehensive picture of a stock's return. For Artis Real Estate Investment Trust, the TSR over the last three years was -23%, which is better than the share price return due in large part to dividend payments.