You can still count on this REIT

Article Excerpt

RioCan recently assured investors that its current distribution is sustainable. Its confidence is partly due to government loans to help businesses, including RioCan’s mall tenants, pay their rent during the COVID-19 shutdown. In addition, the REIT’s new residential properties help cut its reliance on the retail industry. In fact, over 90% of its residential tenants continue to pay their rent despite the pandemic. RioCan now yields a high 9.6%, which reflects its 40% fall since the start of the outbreak. That drop is similar to other REITs. However, RioCan’s top-quality holdings in key markets help to set it apart. RIOCAN REAL ESTATE INVESTMENT TRUST $15 is a buy. The REIT (Toronto symbol REI.UN; Cyclical-Growth Dividend Payer Portfolio, Manufacturing sector; Units outstanding: 317.7 million; Market cap: $4.8 billion; Dividend yield: 9.6%; Dividend Sustainability Rating: Above Average; www.riocan.com) owns all or part of 222 properties across Canada. That includes 16 projects now under development. In all, the REIT controls 37.2 million square feet of rentable space. Its overall…

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