RioCan signs Lowe’s to a long-term deal

Article Excerpt

RIOCAN REAL ESTATE INVESTMENT TRUST $21 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 210.9 million; Market cap: $4.4 billion; SI Rating: Average) has signed a long-term leasing deal with Lowe’s, the second-largest home improvement chain in the United States after Home Depot. Lowe’s will initially operate two stores in RioCan’s Toronto area malls. It aims to open more than 20 new stores in Canada over the next few years. RioCan did not provide financial details. However, high-quality tenants such as Lowe’s will help RioCan maintain its $1.35 distribution rate (6.4% yield). RioCan is a buy. buy…