Analyst Mark Rothschild of Canaccord Genuity maintained a Hold rating on RioCan Real Estate Investment, with a price target of C$19.00.
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Mark Rothschild has given his Hold rating due to a combination of factors influencing RioCan Real Estate Investment’s performance. The company reported a 9.3% increase in funds from operations (FFO) per unit, surpassing both the analyst’s and consensus estimates. This growth was primarily driven by increased income from condo sales and joint ventures, as well as a reduction in general and administrative costs.
However, the decision to maintain a Hold rating is also influenced by some challenges. The refinancing of debt at higher interest rates has partially offset the positive financial performance. Additionally, while the same-property net operating income (SPNOI) growth was 1.8% for the quarter, it was below the previous quarter’s growth rate. The company’s valuation, trading at a discount compared to its peers, also suggests limited upside potential, justifying the Hold recommendation.
According to TipRanks, Rothschild is a 5-star analyst with an average return of 9.1% and a 67.50% success rate. Rothschild covers the Real Estate sector, focusing on stocks such as Canadian Apartment, Crombie Real Estate ate, and InterRent REIT Un.