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RioCan Real Estate Investment Trust (TSE:REI.UN)
TSX:REI.UN
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RioCan Real Estate Investment
(TSX:REI.UN)
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Rating:62Neutral
Price Target:
C$19.50
â–¼(-2.21% Downside)
The overall stock score of 62 reflects moderate financial performance with stable revenue growth but declining profit margins. The earnings call provided positive operational insights, offset by valuation concerns. Technical indicators suggest a neutral market stance, while the high P/E ratio indicates overvaluation despite a strong dividend yield.
Positive Factors
High Occupancy Rates
High occupancy rates indicate strong demand for RioCan's properties, ensuring stable rental income and supporting long-term revenue growth.
Successful Capital Repatriation
Effective capital repatriation enhances financial flexibility, allowing RioCan to reinvest in high-value assets and optimize its portfolio for future growth.
Positive GRESB Assessment
Strong GRESB rankings reflect RioCan's commitment to sustainability and operational excellence, enhancing its reputation and competitive positioning.
Negative Factors
Declining Profit Margins
Declining profit margins can impact RioCan's profitability, reducing its ability to reinvest in growth and potentially affecting shareholder returns.
Valuation Losses
Significant valuation losses on investment properties can erode asset value and negatively impact financial stability and investor confidence.
Challenges with HBC Partnership
Challenges with the HBC partnership highlight risks in joint ventures, potentially affecting future earnings and strategic partnerships.
RioCan Real Estate Investment (REI.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$5.81B
Dividend Yield6.21%
Average Volume (3M)741.17K
Price to Earnings (P/E)90.5
Beta (1Y)0.59
Revenue Growth22.22%
EPS Growth-71.38%
CountryCA
Employees496
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)-0.41
Shares Outstanding293,194,580
10 Day Avg. Volume874,936
30 Day Avg. Volume741,170
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)0.73
Price to Sales (P/S)4.25
P/FCF Ratio67.52
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$20.49Price Target Upside2.75% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering4
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
RioCan Real Estate Investment Business Overview & Revenue Model
Company DescriptionRioCan 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 MoneyRioCan generates revenue primarily through leasing its retail, commercial, and residential properties to a variety of tenants. The company earns rental income from long-term leases with retailers, which typically include provisions for rent escalations and additional charges related to maintenance and property taxes. In addition to rental income, RioCan may also earn revenue from property management services and development projects, including joint ventures and partnerships with other developers. The company’s strategic focus on urban centers and growing markets also positions it to benefit from increasing demand for retail and mixed-use spaces, further bolstering its revenue streams.
RioCan Real Estate Investment Earnings Call Summary
Earnings Call Date:Nov 06, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 17, 2026
Earnings Call Sentiment Neutral
RioCan demonstrated strong operational performance with high occupancy rates and leasing spreads, successful capital repatriation, and positive GRESB rankings. However, significant valuation losses, challenges with the HBC partnership, and a decline in fee and interest income were notable concerns.Q3-2025 Updates
Positive Updates
Strong Leasing and Occupancy Rates
RioCan reported a committed occupancy of 97.8% and retail occupancy of 98.4%, with a Q3 retention ratio of 92.7%. Leasing spreads were at record highs, with a blended leasing spread of 20.8% and new leases achieving 44.1%.
Commercial Same-Property NOI Growth
Commercial same-property NOI increased by 4.6%, reflecting strong performance and demand for RioCan's properties.
Successful Capital Repatriation
RioCan has successfully repatriated almost $500 million of capital in 2025, contributing to their target of $1.3 to $1.4 billion by 2026.
Positive GRESB Assessment
RioCan maintained regional sector leader status in the Americas under the retail sector and ranked first among North American retail peers in the standing investment assessment.
High Demand for Necessity-Based Retail Space
RioCan continues to see strong demand for high-quality, necessity-based retail space, particularly in Canada's major markets.
Negative Updates
Valuation Losses
RioCan reported valuation losses of $242.8 million, primarily driven by $148 million in net fair value losses on investment properties and $28 million related to three large Toronto-based residential rental buildings.
Challenges with HBC Partnership
The impairment in the quarter related to former HBC locations led to a write-off of the remaining equity in the HBC-JV, impacting FFO and requiring significant provisions.
Reduced Fee and Interest Income
There was a decline in fee and interest income due to the completion of residential inventory, impacting FFO by $0.01 per unit.
Stagnant Land and Development Market
RioCan reprioritized several properties due to a stagnant land and development market, affecting long-term density potential and causing a $95 million valuation loss.
Company Guidance
During the RioCan Real Estate Investment Trust Third Quarter 2025 Conference Call, the company provided comprehensive guidance on several key financial metrics and strategies. RioCan reported a committed occupancy rate of 97.8% and retail occupancy of 98.4%, with a Q3 retention ratio of 92.7%. The commercial same-property net operating income (NOI) saw an increase of 4.6%, reflecting the strong demand for their premium retail spaces. The company's leasing spreads are at record highs, achieving a blended leasing spread of 20.8% this quarter, including 44.1% on new leases. Year-to-date, the average net rent for new leases was reported at $29.58 per square foot. Looking ahead, RioCan maintains its guidance with funds from operations (FFO) per unit expected to be between $1.85 to $1.88 and a FFO payout ratio of approximately 62%. The company anticipates commercial same-property NOI growth of approximately 3.5%. RioCan also plans to repatriate $1.3 billion to $1.4 billion of capital back into the business over 2025 and 2026, having already repatriated nearly $500 million from asset sales this year. The conference call underscored RioCan's strategic focus on optimizing its portfolio by investing in high-value assets and maintaining a strong foundation through disciplined asset management.RioCan Real Estate Investment Financial Statement Overview
Summary
RioCan shows moderate financial health with stable revenue growth and manageable leverage. However, declining profit margins and reduced return on equity highlight areas for improvement. The company demonstrates positive cash flow trends, but further enhancement in cash flow management could strengthen its financial position.Income Statement
The income statement shows moderate growth with a 6% revenue increase in the TTM period. However, margins have declined compared to previous years, with the gross profit margin dropping from 64.32% in 2024 to 56.85% in the TTM. The net profit margin also decreased significantly from 36.62% in 2024 to 20.67% in the TTM. Despite these declines, the company maintains a positive EBIT margin of 40.20%.65
Positive
Balance Sheet
The balance sheet reflects a stable financial position with a debt-to-equity ratio of 1.02 in the TTM, indicating manageable leverage. The return on equity has decreased to 3.82% in the TTM from 6.26% in 2024, suggesting reduced profitability. However, the equity ratio remains healthy, supporting the company's stability.70
Positive
Cash Flow
Cash flow analysis reveals a positive trend with a 12.16% growth in free cash flow in the TTM. The operating cash flow to net income ratio is 0.41, indicating efficient cash generation relative to net income. However, the free cash flow to net income ratio of 0.45 suggests room for improvement in cash flow management.60
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.46B | 1.29B | 1.16B | 1.21B | 1.18B | 1.14B |
| Gross Profit | 795.70M | 831.61M | 714.41M | 700.49M | 689.86M | 670.09M |
| EBITDA | 527.26M | 731.66M | 237.02M | 674.08M | 675.34M | 652.50M |
| Net Income | 66.77M | 473.46M | 38.80M | 236.77M | 598.39M | -64.78M |
Balance Sheet | ||||||
| Total Assets | 14.98B | 15.47B | 14.84B | 15.10B | 15.18B | 15.27B |
| Cash, Cash Equivalents and Short-Term Investments | 102.68M | 190.24M | 128.44M | 86.23M | 77.76M | 238.46M |
| Total Debt | 7.30B | 7.35B | 6.90B | 6.78B | 6.71B | 6.97B |
| Total Liabilities | 7.85B | 7.91B | 7.40B | 7.37B | 7.27B | 7.53B |
| Stockholders Equity | 7.14B | 7.56B | 7.44B | 7.73B | 7.91B | 7.73B |
Cash Flow | ||||||
| Free Cash Flow | 246.82M | 81.34M | -5.48M | 113.15M | 26.52M | 35.95M |
| Operating Cash Flow | 467.21M | 378.28M | 385.52M | 506.12M | 490.40M | 552.58M |
| Investing Cash Flow | -160.56M | -360.77M | -200.15M | -79.69M | 94.39M | -469.34M |
| Financing Cash Flow | -254.08M | 48.49M | -147.37M | -417.97M | -745.49M | 61.69M |
RioCan Real Estate Investment Technical Analysis
Positive
19.94
Price Trends
18.76
Positive
18.67
Positive
17.78
Positive
Market Momentum
0.35
Negative
75.05
Negative
81.80
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:REI.UN, the sentiment is Positive. The current price of 19.94 is above the 20-day moving average (MA) of 19.02, above the 50-day MA of 18.76, and above the 200-day MA of 17.78, indicating a bullish trend. The MACD of 0.35 indicates Negative momentum. The RSI at 75.05 is Negative, neither overbought nor oversold. The STOCH value of 81.80 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:REI.UN.
RioCan Real Estate Investment Peers Comparison
UnderperformOutperform
Sector (65)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
82 Outperform | C$4.02B | 8.62 | 11.49% | 5.74% | 4.11% | 35.99% | |
76 Outperform | C$1.99B | 14.07 | 6.52% | 5.52% | 26.88% | 77.26% | |
68 Neutral | C$4.65B | 18.62 | 5.03% | 7.22% | 0.48% | 96.32% | |
68 Neutral | C$4.13B | 16.76 | 6.18% | 4.71% | -0.83% | -28.93% | |
67 Neutral | C$471.56M | 12.26 | 7.14% | 6.56% | 4.53% | 197.86% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
62 Neutral | C$5.81B | 90.47 | 0.92% | 6.21% | 22.22% | -71.38% |
* Real Estate Sector Average
TSE:REI.UN
RioCan Real Estate Investment
19.94
2.68
15.50%
TSE:CRT.UN
CT Real Estate Investment
16.84
3.65
27.67%
TSE:FCR.UN
First Capital Realty
19.47
3.42
21.31%
TSE:PLZ.UN
Plaza Retail REIT
4.27
0.96
29.00%
TSE:SRU.UN
SmartCentres Real Estate Investment Trust
27.21
4.55
20.08%
TSE:PMZ.UN
Primaris Real Estate Investment Trust
16.72
2.85
20.55%
RioCan Real Estate Investment Corporate Events
Business Operations and StrategyRegulatory Filings and Compliance
RioCan Appoints PwC as New Auditor for 2026
Positive
Dec 2, 2025
RioCan Real Estate Investment Trust has announced a change in its external auditor for fiscal 2026, appointing PricewaterhouseCoopers LLP (PwC) following a comprehensive request for proposal process. This decision aligns with RioCan’s commitment to strong governance and oversight, as PwC was selected for its expertise, qualifications, and independence. Ernst & Young LLP (EY), the outgoing auditor, will continue its role through the end of 2025, concluding nearly two decades of service. This strategic move is expected to enhance RioCan’s financial oversight and maintain stakeholder confidence.
The most recent analyst rating on ($TSE:REI.UN) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on RioCan Real Estate Investment stock, see the TSE:REI.UN Stock Forecast page.
Business Operations and Strategy
RioCan Reveals Strategic Growth Plans at 2025 Investor Day
Positive
Nov 18, 2025
RioCan Real Estate Investment Trust announced its strategic outlook at the 2025 Investor Day, focusing on a simplified, retail-focused strategy backed by a productive, necessity-based portfolio. The company aims for a long-term Core FFO per unit growth of 5%, with a 3.5% outlook for 2026-2028, driven by disciplined capital recycling of $1.3 – $1.4 billion. This approach enhances financial flexibility and fuels growth, positioning RioCan to deliver durable growth and create lasting value for its unitholders.
The most recent analyst rating on ($TSE:REI.UN) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on RioCan Real Estate Investment stock, see the TSE:REI.UN Stock Forecast page.
Business Operations and StrategyFinancial Disclosures
RioCan Reports Strong Q3 Results with Robust Leasing Performance
Positive
Nov 6, 2025
RioCan Real Estate Investment Trust reported strong third-quarter results, showcasing a 4.6% growth in Commercial Same Property NOI and a retail occupancy rate of 98.4%. The company achieved significant leasing spreads, reflecting robust demand and effective leasing strategies. Despite a net loss per unit due to valuation losses, RioCan’s operational strength and strategic focus on core retail assets position it well for future growth. The company’s solid balance sheet, marked by substantial liquidity and unencumbered assets, provides flexibility for capital allocation and continued investment in its retail portfolio.
The most recent analyst rating on ($TSE:REI.UN) stock is a Buy with a C$21.00 price target. To see the full list of analyst forecasts on RioCan Real Estate Investment stock, see the TSE:REI.UN Stock Forecast page.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.