Updating RIOCAN REAL ESTATE INVESTMENT TRUST, ARBOR MEMORIAL SERVICES INC. and SUNCOR ENERGY INC.

Article Excerpt

RIOCAN REAL ESTATE INVESTMENT TRUST $18 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 243.2 million; Market cap: $4.4 billion; Price-to-sales ratio: 5.7; Dividend yield: 7.7%; SI Rating: Average) continues to expand in the U.S. The trust recently formed a joint venture with Inland Western Retail Real Estate Trust, Inc. RioCan will own 80% of the new company, which will own eight malls in the Texas cities of Dallas, Houston and Austin. This investment will cost RioCan $138 million U.S., including $85.6 million U.S. of existing mortgages, which RioCan will assume. To put the price in context, RioCan earned $113.9 million (Canadian), or $0.49 a unit, in 2009. Like RioCan’s recent purchase of seven shopping centres in the northeastern U.S., grocery stores and pharmacies are the anchor tenants of these malls. That cuts the risk of this investment. RioCan is a buy. ARBOR MEMORIAL SERVICES INC. $24 (Toronto symbol ABO.A; Aggressive Growth Portfolio, Consumer sector; Shares outstanding: 10.6 million; Market…

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