Danesh Rohinton RioCan Real Estate Investment REI.UN-T SELL ON STRENGTH Sep 30, 2024

It's in the most hated sector (office real estate and malls), given low occupancy rates in cities like Toronto and competition from Amazon. Also, Riocan carries a lot of debt. Debt is rising; rents are falling. Don't touch it.

Biggest proxy for the Canadian REIT market. Great assets, executes well. Over time, their strategic decisions get sideswiped. Occupancy issues, but they're improving. Dynamic for retail is not great, AMZN stole many lunches. Canadian consumer is tapped out, interest rates still high. 

You'll probably be OK, but he'd buy a couple of names ahead of this one. He owns SRU.UN instead, anchored by WMT.

Distribution very safe due to proactive cutting during pandemic. Achievable net operating growth of 3%, last quarter was 3.7%. Despite rising rates, with population growth, limited new supply, and limited retail bankruptcies, setup generally good for shopping centres in Canada. In a good spot.

Blue chip in shopping centre space. Growing footprint in residential. Will benefit from capital coming in to pay down debt. Internal growth is 3-4%. Good one to own going forward. Nice yield of 6%.

Exposed to rising interest rate payments on debt used to buy properties. Good yield is in competition with no-risk bonds. In the space he owns CAR.UN instead, which is multi-family housing.

Concerns over exposure to condo market. Great portfolio, quite defensive. He's bullish on outdoor shopping centre landscape across Canada, with low supply and increasing demand from population growth. Great management. You're well served by holding on.

Attractive level, high double-digit discount to NAV. Great portfolio. Multi-family residential portfolio is growing, may start selling it off and reallocating capital to retail or to share buybacks. Overhang: $600M worth of condos closing in next 3 years. Risk/reward is in your favour to buy here.

Value pick given current share price. Company beginning to find its way again. Returning back to core strengths of the business. Focus on urban centers very good idea. Management team is performing well. 

Still a REIT giant. Leads in the retail-focused, mixed-property use. Definitely impacted by The Bay situation. Retail weakness over next 6-12 months could be an issue.

Saw 96% retail occupancy in Q4, and 1.5% rental growth. Pressure from e-commerce. Issued debt in January to bolster balance sheet, debt is still manageable. Rate cuts could continue to spark leasing demand. Yield is 6%, cash machine for income lovers. Still reliable.