T
he pursuit of outperforming market index funds is a compelling reason to delve into individual stock selection. However, even the most skilled investors can't win every time. BTB Real Estate Investment Trust (TSE:BTB.UN) shareholders may be questioning their decision to hold on, given the stock's 39% decline over five years. It's essential to examine whether the company's financials have been in sync with these disappointing returns or if there's a disconnect.

    Let's take a closer look at BTB Real Estate Investment Trust's performance. Over the past half decade, both its share price and earnings per share (EPS) have declined, with EPS falling by 17% annually. This is more pronounced than the 9% compound annual drop in share price. The market may have anticipated this decline or expects a turnaround.

    To gain a deeper understanding of BTB Real Estate Investment Trust's financials, consider its total shareholder return (TSR). Unlike share price return, TSR accounts for dividend payments and any discounted capital raisings or spin-offs. For BTB Real Estate Investment Trust, the TSR stands at -5.4% over five years, exceeding its share price return. The divergence is largely due to dividend payments.

    In the past year, BTB Real Estate Investment Trust's TSR was in line with the market average, at 21%. While this may not be a remarkable turnaround, it's a step in the right direction after enduring an annualized TSR loss of 1.1% over five years. There are glimmers of hope for the company.

    To truly grasp BTB Real Estate Investment Trust's performance, we must consider multiple factors beyond share price trends. For instance, we've identified four warning signs (two of which raise concerns) that investors should be aware of.