Urban focus will pay off for RioCan

Article Excerpt

RioCan mainly operates retail malls, which suffered at the height of the COVID-19 lockdowns of 2020. As a result, the REIT cut its distributions by a third. Now that most of its tenants have re-opened their stores, the trust is once again raising its monthly distributions. We feel RioCan’s long-term prospects remain strong, particularly as it has substantially completed its plan to focus on six of Canada’s biggest urban centres. That strategy also involves adding residential units to its developments, which works to cut your risk. RIOCAN REAL ESTATE INVESTMENT TRUST $20 is a buy. The REIT (Toronto symbol REI.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing sector; Units outstanding: 317.8 million; Market cap: $6.4 billion; Dividend yield: 5.1%; Dividend Sustainability Rating: Average; www.riocan.com) owns all or part of 204 shopping centres and other properties across Canada, as well as 13 projects in active development. Its overall occupancy rate is a high 97.0%. With the March 2022 payment, RioCan increased your monthly distribution by 6.3%, to $0.085 a..

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