This REIT is building investor value

Article Excerpt

RIOCAN REAL ESTATE INVESTMENT TRUST, $27, is a buy. The REIT (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 304.2 million; Market cap: $8.2 billion; Price-to-sales ratio: 6.5; Dividend yield: 5.3%; TSINetwork Rating: Average; www.riocan.com) continues to focus on six major urban markets: Toronto, Montreal, Ottawa, Calgary, Edmonton and Vancouver. It’s also adding more residential units to cut its exposure to more-cyclical retail tenants. Under that plan, RioCan is selling 50% of its Elmvale Acres shopping mall in Ottawa to Killam Apartment REIT (Toronto symbol KMP.UN) for $3.7 million. The two firms plan to redevelop the property into a mixed-use project with 168 residential units. RioCan and Boardwalk REIT (Toronto symbol BEI.UN) will also jointly develop a new tower with 470 residential units next to RioCan’s Sandalwood Square shopping mall in Mississauga, Ontario. Ontario. …