Mark Rothschild, an analyst from Canaccord Genuity, maintained the Buy rating on RioCan Real Estate Investment (RIOCF – Research Report). The associated price target remains the same with C$21.00.
Mark Rothschild has given his Buy rating due to a combination of factors indicating solid performance and favorable growth prospects for RioCan Real Estate Investment. The company has shown strong operating performance, with Q4/24 funds from operations (FFO) per unit increasing by 2.3% year-over-year, surpassing both estimates and consensus. Additionally, a significant rise in residential inventory gains and condominium sales has contributed positively to the cash flow growth, even though there were minor offsets from decreased property management revenues and higher interest expenses.
Furthermore, RioCan’s leasing activity has been robust, with leasing spreads on renewals reaching the highest levels among Canadian retail peers. The management’s projection of stronger internal growth in 2025, coupled with improved occupancy rates, enhances the attractiveness of the stock. Despite being traded at a slight discount to the company’s net asset value (NAV) estimate, the stock’s valuation metrics such as cash flow multiples remain below the average of its peers, providing an appealing opportunity for investors.
Rothschild covers the Real Estate sector, focusing on stocks such as RioCan Real Estate Investment, Choice Properties Real Estate Investment, and Allied Properties Real Estate Investment Trust. According to TipRanks, Rothschild has an average return of 7.6% and a 62.81% success rate on recommended stocks.