Analyst Michael Markidis of BMO Capital maintained a Buy rating on RioCan Real Estate Investment, with a price target of C$21.00.
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Michael Markidis has given his Buy rating due to a combination of factors that highlight the strength and strategic direction of RioCan Real Estate Investment. The company has demonstrated a robust retail-focused commercial portfolio and is undertaking strategic initiatives to simplify its business model. This includes a promising three-year outlook with an expected average annual Core FFO/unit growth of at least 3.5% from 2026 to 2028, which aligns with or slightly exceeds investor expectations.
Additionally, RioCan’s operational metrics are strong, with anticipated occupancy rates of 97-98% and leasing spreads of approximately 15%. The company is also targeting a leverage ratio of 8-9x and is executing a significant capital repatriation program. These factors, combined with a refined target price reflecting a 5% NAV discount, suggest a positive long-term growth trajectory, justifying the Buy rating.
In another report released on November 14, RBC Capital also maintained a Buy rating on the stock with a C$21.00 price target.
Based on the recent corporate insider activity of 25 insiders, corporate insider sentiment is positive on the stock. This means that over the past quarter there has been an increase of insiders buying their shares of RIOCF in relation to earlier this year.