RioCan Real Estate Investment (REI.UN.TO)

He would do more homework on this. It used to be a stellar Canadian REIT, but their main investments, commercial properties, have been hit by technological disruptions. They are now moving into residential properties, which is good.
Well-managed and pays a good dividend yield below 6%. They manage their balance sheet well. Could be quite an interesting investment.

Many have been betting that Amazon will crush every brick and mortar retailer, which he thinks is far too simplistic. Shorting a REIT is an expensive carry. Riocan has whittled down their portfolio and made it high grade, including their biggest, a massive $3-billion project in downtown Toronto. They're re-purposing retail space into better use, which will drive up share prices and the dividend yield now around 6%.

They primarily hold retail assets. In a non-registered account, this is an awesome income generation with a good payout ratio. They hold higher quality assets and they have been divesting some assets. It also trades at a 15% discount to NAV. Yield 5.8%.

Not a lot of detail regarding cannabis retail market yet. May be an opportunity for retail rentals and possibly good for them. Too early to say what impact this may have for Riocan.

Solid management. But it’s in retail, which is not doing well. Transitioned out of US. Sears and Target receiverships. Nothing wrong with it. Neutral on it. Doesn’t like the retail sector, with the Amazon effect. Doesn’t foresee anything that will transform it. (Analysts’ price target is $27.00.)

It is not a bad alternative for individuals in their retirement years. You need to have your return expectations in check. You are getting same property NOI in the single digits. They are in the process of high grading their real estate and will be left with more core urban centers typically near transit. You can't expect more than single digit returns.

He does not presently hold any REITs today. It is consumer retail sales oriented and is interest rate sensitive. He is leery of both of these fundamental drivers.

284 properties. They are high grading their portfolio. They focus on the six biggest cities. They are also doing projects involving commercial ground floor and residential above. Their pipeline is rich with these sorts of opportunities. Their yield may migrate from 6% to 3% keeping in line with residential REITs. It is a bit contrarian. (Analysts’ target: $27.00).

He has not increased his weight in it over the last few years. Now that we have had rates go up it is a better time to enter a stock like this. He likes to buy these at a 10% discount to NAV, which this one is. XRE-T has been showing strength recently, which demonstrates how the sector is doing.