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:63Neutral
Price Target:
C$20.00
â–²(0.86% Upside)
Action:ReiteratedDate:03/26/26
The score is primarily supported by a strong, confidence-building earnings outlook (NOI/FFO guidance backed by leasing momentum and high occupancy). This is tempered by only middling underlying financial statement quality due to earnings and free-cash-flow volatility, and by weaker near-term technical momentum; valuation is mixed with a high dividend yield but a very high P/E.
Positive Factors
High Occupancy & Leasing Spreads
Sustained 98.5% retail occupancy combined with 21.1% blended leasing spreads creates durable rental cash flow and improves re‑leasing economics. Over multiple years this reduces vacancy risk, supports upward rent resets, and strengthens predictable contracted revenue that underpins FFO and distribution coverage.
Negative Factors
Elevated Leverage
Maintaining net debt/EBITDA in an 8–9x range and debt near equity leaves limited cushion against property‑price or interest‑rate shocks. Elevated structural leverage constrains capital flexibility, slows potential faster deleveraging or larger accretive investments, and increases sensitivity to refinancing cycles.
Read all positive and negative factors
Positive Factors
Negative Factors
High Occupancy & Leasing Spreads
Sustained 98.5% retail occupancy combined with 21.1% blended leasing spreads creates durable rental cash flow and improves re‑leasing economics. Over multiple years this reduces vacancy risk, supports upward rent resets, and strengthens predictable contracted revenue that underpins FFO and distribution coverage.
Read all positive factors
RioCan Real Estate Investment (REI.UN) vs. iShares MSCI Canada ETF (EWC)
Market Cap
C$5.86B
Dividend Yield6.21%
Average Volume (3M)741.17K
Price to Earnings (P/E)79.8
Beta (1Y)0.59
Revenue Growth22.22%
EPS Growth-71.38%
CountryCA
Employees496
SectorReal Estate
Sector Strength53
IndustryREIT - Retail
Share Statistics
EPS (TTM)0.43
Shares Outstanding290,615,500
10 Day Avg. Volume874,936
30 Day Avg. Volume741,170
Financial Highlights & Ratios
PEG Ratio-0.93
Price to Book (P/B)0.77
Price to Sales (P/S)3.73
P/FCF Ratio30.56
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
C$21.64Price Target Upside9.11% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
EPS Forecast (FY)1.63
Revenue Forecast (FY)C$1.21B
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....
How the Company Makes Money
RioCan primarily makes money by generating rental income from tenants leasing space in its properties. Its key revenue stream is base rent paid under lease contracts, supplemented by additional rent and recoveries where tenants reimburse certain p...
RioCan Real Estate Investment Earnings Call Summary
Earnings Call Date:Feb 17, 2026
(Q4-2025)
| % Change Since: |
Next Earnings Date:May 04, 2026
Earnings Call Sentiment Positive
The call presented a strong operational and financial performance with multiple affirming metrics: same-property NOI acceleration, record leasing spreads, high occupancy, reduced leverage, sizable capital repatriation and disciplined capital allocation. Management provided a clear and relatively tight 2026 core FFO and NOI outlook anchored by contractual rent steps and leasing momentum. Key risks are execution- and market-timing related: the RioCan Living disposition program is only partially complete and timing is market dependent, there is a small residual condo exposure, a remaining legal matter at Yorkdale is unresolved (deemed de minimis financially), and some assets are classified as lower-growth. Overall, the positives (organic growth, balance sheet improvement, leasing upside and accretive redeployments/NCIB activity) materially outweigh the manageable outstanding challenges.Positive Updates
Strong Same-Property NOI Growth
Q4 commercial same-property NOI growth of 4.5%; full year commercial same-property NOI growth of 3.6%, slightly ahead of guidance and demonstrating portfolio resilience.
Negative Updates
RioCan Living Dispositions Still In Progress
Target of $1.3–$1.4 billion of RioCan Living dispositions is market dependent; ~$628.3 million realized during the year (plus subsequent $46.5M Underwood sale) — management said they are halfway to target and timing could extend into 2027.
Read all updates
Q4-2025 Updates
Positive
Negative
Strong Same-Property NOI Growth
Q4 commercial same-property NOI growth of 4.5%; full year commercial same-property NOI growth of 3.6%, slightly ahead of guidance and demonstrating portfolio resilience.
Read all positive updates
Company Guidance
RioCan guided 2026 same‑property NOI growth of 3.5%–4% and core FFO of $1.60–$1.62 per unit (about 75% contractually secured), with plans to invest $95–$150M in retail projects, $45–$55M in mixed‑use development and roughly $55M of maintenance CapEx; the REIT targets net debt/EBITDA of 8–9x (currently 8.6x), $1.5B of liquidity, a $9.2B unencumbered asset pool and unsecured debt in the high‑60s% toward a 70% target, and continues a RioCan Living disposition program targeting $1.3–$1.4B (about halfway achieved with $628.3M closed and $788.2M of capital repatriated to date). Management highlighted leasing tailwinds—10.1M sq ft of leases maturing over the coming years, record blended leasing spreads of 21.1%, new‑lease average net rent of ~$29.65/sq ft (~28% above portfolio average and ~27% above existing leases since 2022)—will drive growth, while capital deployment uses a 9% unlevered IRR hurdle (expected going‑in yields 8%–9% plus ~3% future growth); RioCan has repurchased $179M of units since 2025 (19M units, ~6% since 2022) and notes units imply ~12x 2026 core FFO versus a 15x long‑term average.RioCan Real Estate Investment Financial Statement Overview
Summary
Income Statement
58
Neutral
Balance Sheet
62
Positive
Cash Flow
55
Neutral
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 1.48B | 1.29B | 1.16B | 1.21B | 1.18B |
| Gross Profit | 793.40M | 831.61M | 714.41M | 700.49M | 689.86M |
| EBITDA | 348.69M | 731.66M | 237.02M | 674.08M | 675.34M |
| Net Income | 69.30M | 473.46M | 38.80M | 236.77M | 598.39M |
Balance Sheet | |||||
| Total Assets | 14.89B | 15.47B | 14.84B | 15.10B | 15.18B |
| Cash, Cash Equivalents and Short-Term Investments | 157.34M | 190.24M | 128.44M | 86.23M | 77.76M |
| Total Debt | 7.20B | 7.35B | 6.90B | 6.78B | 6.71B |
| Total Liabilities | 7.74B | 7.91B | 7.40B | 7.37B | 7.27B |
| Stockholders Equity | 7.16B | 7.56B | 7.44B | 7.73B | 7.91B |
Cash Flow | |||||
| Free Cash Flow | 181.03M | 81.34M | -5.48M | 113.15M | 26.52M |
| Operating Cash Flow | 434.07M | 378.28M | 385.52M | 506.12M | 490.40M |
| Investing Cash Flow | 41.11M | -360.77M | -200.15M | -79.69M | 94.39M |
| Financing Cash Flow | -520.38M | 48.49M | -147.37M | -417.97M | -745.49M |
RioCan Real Estate Investment Technical Analysis
Positive
19.83
Price Trends
19.35
Positive
18.97
Positive
18.34
Positive
Market Momentum
0.14
Negative
59.78
Neutral
86.26
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 19.83 is above the 20-day moving average (MA) of 19.23, above the 50-day MA of 19.35, and above the 200-day MA of 18.34, indicating a bullish trend. The MACD of 0.14 indicates Negative momentum. The RSI at 59.78 is Neutral, neither overbought nor oversold. The STOCH value of 86.26 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 |
|---|---|---|---|---|---|---|---|
75 Outperform | C$2.17B | 10.72 | 6.52% | 5.52% | 26.88% | 77.26% | |
74 Outperform | C$473.77M | 8.66 | 10.04% | 6.56% | 4.53% | 197.86% | |
73 Outperform | C$4.13B | 7.47 | 18.40% | 5.74% | 4.11% | 35.99% | |
73 Outperform | C$4.57B | 3.77 | 25.30% | 4.71% | -0.83% | -28.93% | |
71 Outperform | C$4.71B | 18.23 | 4.85% | 7.22% | 0.48% | 96.32% | |
65 Neutral | $2.17B | 12.19 | 3.79% | 4.94% | 3.15% | 1.96% | |
63 Neutral | C$5.86B | 79.85 | 0.92% | 6.21% | 22.22% | -71.38% |
* Real Estate Sector Average
TSE:REI.UN
RioCan Real Estate Investment
20.18
4.87
31.84%
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30.13%
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6.79
46.13%
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29.76%
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RioCan Real Estate Investment Corporate Events
Business Operations and StrategyExecutive/Board Changes
RioCan Names Interim CFO to Ensure Financial Continuity
Positive
Mar 24, 2026
RioCan Real Estate Investment Trust has appointed Franca Smith as Interim Chief Financial Officer, effective immediately, to cover the temporary medical leave of current CFO Dennis Blasutti. Smith, who has led financial reporting, controls, taxati...
Business Operations and StrategyPrivate Placements and Financing
RioCan Raises $200 Million in New Debenture Offering as Credit Trend Turns Positive
Positive
Mar 11, 2026
RioCan Real Estate Investment Trust has completed a $200 million issuance of Series AQ senior unsecured debentures, carrying a 4.308% coupon and maturing on March 11, 2033, to support its financing plan and maintain a well-distributed debt maturit...
Business Operations and StrategyPrivate Placements and Financing
RioCan Launches $200 Million Debenture Offering as Credit Trend Turns Positive
Positive
Feb 26, 2026
RioCan Real Estate Investment Trust has launched a $200 million offering of Series AQ senior unsecured debentures, carrying a 4.308% annual coupon and maturing on March 11, 2033. The debentures, which rank pari passu with the trust’s other s...
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.