Big anchor tenants cut risk

Article Excerpt

RIOCAN REAL ESTATE INVESTMENT TRUST $25.21 (Toronto symbol REI.UN; Units outstanding: 259.8 million; Market cap: $6.6 billion; TSINetwork Rating: Average; Dividend yield: 5.5%; www.riocan.com) spent $91.9 million buying new Canadian properties in the first quarter of this year. The trust has also agreed to buy two more properties in Canada for $41 million, plus four U.S. properties for $95 million U.S. These are big purchases for RioCan, which earned $303.0 million, or $1.23 a unit, in 2010. However, these malls have national retailers, such as Home Depot and Costco, as anchor tenants. That cuts the risk of these purchases. RioCan is a buy. buy…