RioCan Real Estate Investment (REI.UN) AI Stock Analysis

• Market Cap: $5.14B
• Dividend Yield: 6.53%
• Average Volume (3M): 947.89K
• Price to Earnings (P/E): 11.0
• Beta (1Y): 0.84
• Revenue Growth: 11.62%
• EPS Growth: 1120.60%
• Country: CA
• Employees: 500
• Sector: Real Estate
• Sector Strength: 79
• Industry: REIT - Retail
• EPS (TTM): -0.28
• Shares Outstanding: 297,200,000
• 10 Day Avg. Volume: 612,515
• 30 Day Avg. Volume: 947,888
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $20.77
• Price Target Upside: 22.04% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

RioCan's strong financial performance, highlighted by robust profitability and improved cash flows, is the primary driver of its stock score. Positive earnings call sentiment and strategic corporate events further enhance its outlook. However, technical indicators suggest cautious optimism due to potential overbought conditions. The attractive valuation and dividend yield provide additional support, positioning RioCan well for sustained growth despite economic challenges.

Positive Factors

Debt Management

More than 50% of 2025 debt maturities have already been addressed, with significant repayments and attractive refinancing options.

Retail Fundamentals

Retail fundamentals are strong, and SP-NOI growth profile is expected to improve.

Negative Factors

Financial Performance

The bankruptcy court has allowed HBC to stop paying rent to RioCan, impacting RioCan's financials.

Portfolio Impact

RioCan has significant exposure to Hudson's Bay Co., which is undergoing full liquidation, leading to a negative impact on RioCan's portfolio and cash flow.

Revenue Generation

Re-tenanting large spaces due to HBC's exit could take an extended period and be costly, impacting RioCan's revenue.

RioCan Real Estate Investment Business Overview & Revenue Model

Company Description

RioCan is one of Canada's largest real estate investment trusts. RioCan owns, manages and develops retail-focused, increasingly mixed-use properties located in prime, high-density transit-oriented areas where Canadians want to shop, live and work. As at September 30, 2020, our portfolio is comprised of 221 properties with an aggregate net leasable area of approximately 38.4 million square feet (at RioCan's interest) including office, residential rental and 16 development properties.

How the Company Makes Money

RioCan makes money through the rental income generated from its diverse portfolio of retail and mixed-use properties. The primary revenue stream comes from leasing retail space to a variety of tenants, including national and international retailers, supermarkets, and service providers. Additionally, RioCan generates income from its residential properties through leasing units to tenants, contributing to its revenue diversification efforts. The company also engages in property development, creating new commercial and residential spaces, which can be sold or leased to generate additional revenue. Strategic partnerships with other real estate developers and institutional investors further enhance its financial performance, allowing for shared investment risks and expanded development capabilities.

RioCan Real Estate Investment Financial Statement Overview

Summary

RioCan Real Estate Investment shows strong profitability with improved margins and revenue growth. The balance sheet is moderately leveraged, typical for a REIT, but shows a solid equity base. Cash flow generation is improving, yet historical volatility suggests a need for sustained cash management.

Income Statement

The company shows a strong gross profit margin of 60.4% TTM, indicating efficient cost management. The net profit margin improved significantly to 37.5% TTM, reflecting enhanced profitability. Revenue growth was robust at 9.1% TTM, signaling positive business expansion. However, EBIT and EBITDA margins have decreased compared to previous years, indicating potential cost pressures.

Balance Sheet

The debt-to-equity ratio stands at 0.97, showing moderate leverage typical for REITs. Return on equity is solid at 6.3% TTM, although it could be enhanced further. The equity ratio of 48.8% TTM suggests a balanced capital structure, though high debt levels pose potential risks.

Cash Flow

Free cash flow growth is positive at 3722% TTM, although previous years showed volatility. Operating cash flow covers net income by 0.81 times, indicating stable cash generation. The free cash flow to net income ratio improved significantly, yet consistent cash flow generation remains a challenge.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.24B	1.16B	1.21B	1.18B	1.14B
	Gross Profit
740.95M	748.80M	700.49M	689.86M	670.09M
	EBIT
740.95M	679.19M	669.30M	671.31M	648.15M
	EBITDA
731.66M	237.02M	674.08M	675.34M	652.50M
	Net Income Common Stockholders
473.46M	38.80M	236.77M	598.39M	-64.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
190.24M	128.44M	86.23M	77.76M	238.46M
	Total Assets
15.47B	14.84B	15.10B	15.18B	15.27B
	Total Debt
7.35B	6.90B	6.78B	6.71B	6.97B
	Net Debt
7.16B	6.77B	6.69B	6.63B	6.73B
	Total Liabilities
7.91B	7.40B	7.37B	7.27B	7.53B
	Stockholders Equity
7.56B	7.44B	7.73B	7.91B	7.73B
Cash Flow		Free Cash Flow
81.34M	-5.48M	113.15M	26.52M	35.95M
	Operating Cash Flow
378.28M	385.52M	506.12M	490.40M	552.58M
	Investing Cash Flow
-360.77M	-200.15M	-79.69M	94.39M	-469.34M
	Financing Cash Flow
48.49M	-147.37M	-417.97M	-745.49M	61.69M

RioCan Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 17.02
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:REI.UN, the sentiment is Negative. The current price of 17.02 is above the 20-day moving average (MA) of 16.81, below the 50-day MA of 17.56, and below the 200-day MA of 18.07, indicating a neutral trend. The MACD of -0.03 indicates Negative momentum. The RSI at 48.22 is Neutral, neither overbought nor oversold. The STOCH value of 57.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for TSE:REI.UN.

RioCan Real Estate Investment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRT.UN	79 Outperform	C$3.58B	8.13	11.30%	6.15%	4.69%	88.66%
PLZ.UN	76 Outperform	C$412.99M	16.65	4.61%	7.49%	5.99%	20.38%
SRU.UN	76 Outperform	C$4.34B	19.17	4.50%	7.30%	9.46%	-42.77%
REI.UN	73 Outperform	$5.14B	10.97	6.34%	6.53%	11.62%	1120.60%
FCR.UN	72 Outperform	C$3.68B	17.98	5.20%	5.02%	6.55%	―
PMZ.UN	69 Neutral	C$1.45B	25.13	2.99%	5.95%	22.60%	-48.92%
Sector *	60 Neutral	$2.95B	11.32	0.26%	8508.24%	6.34%	-14.00%

RioCan Real Estate Investment Corporate Events

RioCan Reports Strong Q1 2025 Results Amid Economic Challenges

RioCan Real Estate Investment Trust reported strong first-quarter results for 2025, with significant leasing spreads and same property NOI growth despite global economic volatility. The company achieved a 96% completion rate for condominium interim closings and is proceeding with the sale of four additional assets as part of its monetization strategy. Despite a net loss per unit due to valuation losses in its joint venture with HBC, RioCan’s financial position remains robust, supported by a strong balance sheet and liquidity. The company has revised its FFO per unit guidance for 2025, maintaining a focus on capital management and growth.

Spark’s Take on TSE:REI.UN Stock

According to Spark, TipRanks’ AI Analyst, TSE:REI.UN is a Outperform.

RioCan Real Estate Investment Trust shows strong profitability with improving financials. Despite potential cost pressures, the company maintains a solid balance sheet and cash flow improvements. Technical indicators suggest caution, but the attractive valuation and positive earnings call outlook are favorable. Recent corporate events further strengthen its financial position, contributing positively to the overall score.

To see Spark’s full report on TSE:REI.UN stock, click here.

RioCan Addresses Impact of Hudson’s Bay CCAA Filing

RioCan Real Estate Investment Trust has provided an update regarding its exposure to Hudson’s Bay Company’s recent CCAA filing. As a landlord and partner in the RioCan-HBC Joint Venture, RioCan is committed to protecting its stakeholders’ interests by exploring all business and legal options. The company aims to leverage its leasing and development expertise to safeguard the value of its properties, which include prime real estate in major Canadian markets. Despite the challenges posed by HBC’s restructuring, RioCan’s strong core business and financial position enable it to navigate the situation effectively.

RioCan Reports Robust 2024 Financial Results and Distribution Increase

RioCan Real Estate Investment Trust reported strong financial results for the fourth quarter and year-end 2024, highlighted by a 4.3% increase in monthly distribution per unit. The company achieved record occupancy rates and leasing spreads, and saw improved financial metrics such as Adjusted Debt to Adjusted EBITDA. The positive results were driven by strong operational performance and strategic capital management, positioning RioCan well to benefit from favorable market conditions.

RioCan Completes $550 Million Debenture Issuance to Strengthen Financial Position

RioCan Real Estate Investment Trust has successfully completed a $550 million issuance of senior unsecured debentures in two series, Series AN and Series AO. The proceeds from this issuance will be used to repay existing debts and for general business purposes, with the debentures receiving a credit rating of BBB with a stable trend, indicating a solid financial standing for the Trust.