RIOCAN REAL ESTATE INVESTMENT TRUST $27.12 - Toronto symbol REI.UN

RIOCAN REAL ESTATE INVESTMENT TRUST $27.12 (Toronto symbol REI.UN; Units outstanding: 267.0 million; Market cap: $6.9 billion; TSINetwork Rating: Average; Dividend yield: 5.1%; www.riocan.com) reported revenue of $988 million in 2011, up 12.0% from $882 million in 2010. That’s mainly due to the 38 new malls the trust bought during the year. (In all, RioCan purchased $1.1 billion of new properties in 2011.) Cash flow per unit rose 7.5%, to $1.43 from $1.33.

RioCan yields 5.1%. It paid out 96.5% of its cash flow in 2011. However, 22% of its investors prefer to receive new units instead of cash. On this basis, the actual payout was just 74.8% of its cash flow.

RioCan is still our #1 safety-conscious buy for 2012.

A professional investment analyst for more than 30 years, Pat has developed a stock-selection technique that has proven reliable in both bull and bear markets. His proprietary ValuVesting System™ focuses on stocks that provide exceptional quality at relatively low prices. Many savvy investors and industry leaders consider it the most powerful stock-picking method ever created.