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  5. REI.UN: Riocan and HBC , REI issued a detailed sedar report , are there any analysts report(s) to assess the fair value of REI units through the process of HBC winding down its stores? [RioCan Real Estate Investment Trust]
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Q: Riocan and HBC , REI issued a detailed sedar report , are there any analysts report(s) to assess the fair value of REI units through the process of HBC winding down its stores?
Asked by Alejandro (Alex) on March 24, 2025
5i Research Answer:

RBC and Canaccord have reports but we have not seen a fair value market impact estimate yet. REI typically writes down values at year end. In 2024, it wrote down $29.4M, in 2023, $450M. So, much depends on how fast REI can replace HBC. The analysts note that REI likely has been working on replacing HBC for sometime, having seen the writing on the wall. Retail occupancy is high at 98.7%, so there should be some demand. REI has exposure to 12 HBC stores through a joint venture.