riocan
Toronto symbol REI.UN, is Canada’s largest REIT. It specializes in large, Big Box-style retail shopping centres.
RIOCAN REAL ESTATE INVESTMENT TRUST $27.48 (Toronto symbol REI.UN; Units outstanding: 295.9 million; Market cap: $8.2 billion; TSINetwork Rating: Average; Dividend yield: 5.0%; www.riocan.com) is Canada’s largest real estate investment trust (REIT). It has interests in 278 shopping malls in Canada, including 10 under development. These properties contain over 59 million square feet of leasable area.
RioCan recently ended its joint venture with Cedar Shopping Centers in the U.S., so it now owns 100% of all of its 48 malls in that country. RioCan held 80% of this venture, which owned 22 shopping centres in the U.S. Under the deal, RioCan will buy Cedar’s 20% stake in 21 malls, while Cedar will buy RioCan’s 80% stake in another mall.
In the quarter ended June 30, 2012, RioCan’s revenue rose 13.5%, to $269 million from $237 million a year earlier. Cash flow per unit rose 2.8%, to $0.37 from $0.36. The units yield 5.0%.
...
RioCan recently ended its joint venture with Cedar Shopping Centers in the U.S., so it now owns 100% of all of its 48 malls in that country. RioCan held 80% of this venture, which owned 22 shopping centres in the U.S. Under the deal, RioCan will buy Cedar’s 20% stake in 21 malls, while Cedar will buy RioCan’s 80% stake in another mall.
In the quarter ended June 30, 2012, RioCan’s revenue rose 13.5%, to $269 million from $237 million a year earlier. Cash flow per unit rose 2.8%, to $0.37 from $0.36. The units yield 5.0%.
...
RIOCAN REAL ESTATE INVESTMENT TRUST $27 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 291.3 million; Market cap: $7.9 billion; Price-to-sales ratio: 5.0; Dividend yield: 5.1%; TSINetwork Rating: Average; www.riocan.com) is Canada’s largest real estate investment trust (REIT).
RioCan specializes in big-box-style outdoor malls. It owns 278 shopping centres in Canada, 10 of which are under development. Most are in suburban areas, where land is generally cheaper than in towns and cities. The trust often leaves room at its malls for expanding existing stores and building new ones. This makes itseasy to add more tenants.
In the past few years, RioCan has expanded in the U.S., where it now owns or invests in 48 malls, 22 of which the trust operates through a joint venture with Cedar Shopping Centers, Inc. (New York symbol CDR). RioCan owns 80% of this joint venture and 14.3% of Cedar.
...
RioCan specializes in big-box-style outdoor malls. It owns 278 shopping centres in Canada, 10 of which are under development. Most are in suburban areas, where land is generally cheaper than in towns and cities. The trust often leaves room at its malls for expanding existing stores and building new ones. This makes itseasy to add more tenants.
In the past few years, RioCan has expanded in the U.S., where it now owns or invests in 48 malls, 22 of which the trust operates through a joint venture with Cedar Shopping Centers, Inc. (New York symbol CDR). RioCan owns 80% of this joint venture and 14.3% of Cedar.
...
RioCan’s units have steadily risen in the past year, mainly because its high, stable distributions continue to attract income-seeking investors. Even after this rise, we feel RioCan still has plenty of growth ahead. It continues to expand in the U.S., and it is diversifying into other real estate projects like office buildings and residential developments. Best of all, its high-quality properties and tenants give it the reliable cash flow it needs to invest in new growth projects and maintain—and raise—its distributions. RIOCAN REAL ESTATE INVESTMENT TRUST $27 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 291.3 million; Market cap: $7.9 billion; Price-to-sales ratio: 5.0; Dividend yield: 5.1%; TSINetwork Rating: Average; www.riocan.com) is Canada’s largest real estate investment trust (REIT)....
Canada’s real estate investment trusts (REITs) were the only category of trusts exempted from the federal government’s income trust tax. This has helped them remain popular with investors seeking both income and capital gains. Today we look at a major Canadian REIT that continues to add to its shopping centre empire, in the U.S. as well as Canada. RIOCAN REAL ESTATE INVESTMENT TRUST (Toronto symbol REI.UN; www.riocan.com) is Canada’s largest real estate investment trust (REIT). It has interests in 278 shopping malls in Canada, including 10 under development. These properties contain over 59 million square feet of leasable area....
RIOCAN REAL ESTATE INVESTMENT TRUST $27.48 (Toronto symbol REI.UN; Units outstanding: 295.9 million; Market cap: $8.2 billion; TSINetwork Rating: Average; Dividend yield: 5.0%; www.riocan.com) is Canada’s largest real estate investment trust (REIT). It has interests in 278 shopping malls in Canada, including 10 under development. These properties contain over 59 million square feet of leasable area. RioCan recently ended its joint venture with Cedar Shopping Centers in the U.S., so it now owns 100% of all of its 48 malls in that country. RioCan held 80% of this venture, which owned 22 shopping centres in the U.S. Under the deal, RioCan will buy Cedar’s 20% stake in 21 malls, while Cedar will buy RioCan’s 80% stake in another mall. In the quarter ended June 30, 2012, RioCan’s revenue rose 13.5%, to $269 million from $237 million a year earlier. Cash flow per unit rose 2.8%, to $0.37 from $0.36. The units yield 5.0%....
RIOCAN REAL ESTATE INVESTMENT TRUST $28 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 263.4 million; Market cap: $7.4 billion; Price-to-sales ratio: 5.2; Dividend yield: 4.9%; TSINetwork Rating: Average; www.riocan.com) is ending its joint venture with Cedar Shopping Centers (New York symbol CDR). RioCan holds 80% of this venture, which owns 22 malls in the U.S.
Under the terms of the deal, RioCan will buy Cedar’s 20% stake in 21 malls, while Cedar will buy RioCan’s 80% stake in another mall. RioCan will pay Cedar $39.0 million. That’s equal to 37% of its second quarter cash flow of $106.0 million, or $0.37 a unit.
RioCan is a buy.
...
Under the terms of the deal, RioCan will buy Cedar’s 20% stake in 21 malls, while Cedar will buy RioCan’s 80% stake in another mall. RioCan will pay Cedar $39.0 million. That’s equal to 37% of its second quarter cash flow of $106.0 million, or $0.37 a unit.
RioCan is a buy.
...
RIOCAN REAL ESTATE INVESTMENT TRUST $28 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 263.4 million; Market cap: $7.4 billion; Price-to-sales ratio: 5.2; Dividend yield: 4.9%; TSINetwork Rating: Average; www.riocan.com) is ending its joint venture with Cedar Shopping Centers (New York symbol CDR). RioCan holds 80% of this venture, which owns 22 malls in the U.S. Under the terms of the deal, RioCan will buy Cedar’s 20% stake in 21 malls, while Cedar will buy RioCan’s 80% stake in another mall. RioCan will pay Cedar $39.0 million. That’s equal to 37% of its second quarter cash flow of $106.0 million, or $0.37 a unit. RioCan is a buy.
ISHARES CDN REIT SECTOR INDEX FUND $17.25 (Toronto symbol XRE; buy or sell through brokers; ca.ishares.com) holds the 13 Canadian real estate investment trusts (REITs) in the S&P/TSX Capped REIT Index. The weight of any one REIT is limited to 25% of the ETF’s value.
iShares CDN REIT’s expenses are 0.55% of its assets. The fund yields 4.3%.
RioCan REIT is the fund’s largest holding at 22.0%, followed by H&R REIT (12.2%), Dundee REIT (8.9%), Canadian REIT (7.7%), Calloway REIT (7.5%), Boardwalk REIT (6.8%), Cominar REIT (6.4%), Canadian Apartment Properties REIT (6.2%), Primaris Retail REIT (5.7%), Artis REIT (5.0%), Allied Properties REIT (4.5%), Chartwell Seniors Housing REIT (2.9%), and Northern Property REIT (2.8%).
...
iShares CDN REIT’s expenses are 0.55% of its assets. The fund yields 4.3%.
RioCan REIT is the fund’s largest holding at 22.0%, followed by H&R REIT (12.2%), Dundee REIT (8.9%), Canadian REIT (7.7%), Calloway REIT (7.5%), Boardwalk REIT (6.8%), Cominar REIT (6.4%), Canadian Apartment Properties REIT (6.2%), Primaris Retail REIT (5.7%), Artis REIT (5.0%), Allied Properties REIT (4.5%), Chartwell Seniors Housing REIT (2.9%), and Northern Property REIT (2.8%).
...
RIOCAN REAL ESTATE INVESTMENT TRUST $28.36 (Toronto symbol REI.UN; Units outstanding: 285.9 million; Market cap: $8.1 billion; TSINetwork Rating: Average; Dividend yield: 4.9%; www.riocan.com) is purchasing the Georgian Mall, a shopping centre in Barrie, Ontario, with over 150 stores. This will be RioCan’s largest, most prominent enclosed mall property.
The trust will pay $318 million for the shopping centre when the deal closes in the third quarter of 2012. That’s equal to 93% of the $342 million, or $1.20 a unit, that RioCan earned in the first quarter of 2012.
This mall is 97% leased and gets 91% of its rental revenue from national chains. That cuts the risk of this purchase. Moreover, Barrie’s population should rise by 20% over the next decade.
...
The trust will pay $318 million for the shopping centre when the deal closes in the third quarter of 2012. That’s equal to 93% of the $342 million, or $1.20 a unit, that RioCan earned in the first quarter of 2012.
This mall is 97% leased and gets 91% of its rental revenue from national chains. That cuts the risk of this purchase. Moreover, Barrie’s population should rise by 20% over the next decade.
...
Our main criteria for deciding if a company falls into the Consumer or Manufacturing sector is whether it behaves in a cyclical or non-cyclical manner. A manufacturing company is subject to the ups and downs of the economic cycle; consumer firms benefit from continuous and often habitual use of their products and services, so they have much more stability in their sales and earnings, regardless of the state of the economy. It doesn’t matter who the company sells to. For instance, consumers buy cars and soup. But carmakers are subject to wide swings in demand, so they go in the Manufacturing sector. Soup demand is far more stable, so soup makers go into the Consumer sector. While the soup company “manufactures” its products, its customers buy them during good and bad economic times. Real estate investment trusts (REITs) like RioCan mostly lease office or industrial space to firms that go through swings along with the rise and fall of the economy, so we place them in the Manufacturing sector. We’d also place REITs with residential holdings in the Manufacturing sector (actually, the full name we use is Manufacturing & Industry sector). Consumers buy soup every day, but they can go for months or years without buying a new car, much less a new home.