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Investment Q&A

Not investment advice or solicitation to buy/sell securities. Do your own due diligence and/or consult an advisor.

RioCan Real Estate Investment Trust (REI.UN)
- View REI.UN Profile
- View Questions on REI.UN
Canadian Apartment Properties Real Estate Investment Trust (CAR.UN)
- View CAR.UN Profile
- View Questions on CAR.UN
Granite Real Estate Investment Trust (GRT.UN)
- View GRT.UN Profile
- View Questions on GRT.UN
Dream Industrial Real Estate Investment Trust (DIR.UN)

Q: Your thoughts on RioCan REIT.
Thank you

Asked by Carol on October 21, 2024

5i Research Answer:

REI.UN has a decent 5.6% distribution yield, is a $5.9B company, which has a portfolio of retail, residential, and mixed-use properties. Most of its focus is on the commercial and retail space, which makes it more sensitive to interest rates and economic conditions. It has a fair amount of debt at $7.1B, and over the past few years its FFO interest coverage ratio and FFO/debt ratios have been declining, indicating a worsening ability to service debt. In general, we prefer REITs in the residential or industrial space, and we would be more comfortable with other Canadian REITs such as: DIR.UN, GRT.UN, and CAR.UN.

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