RioCan Real Estate Investment (REI.UN) AI Stock Analysis

• Market Cap: $5.55B
• Dividend Yield: 6.07%
• Average Volume (3M): 547.37K
• Price to Earnings (P/E): 85.9
• Beta (1Y): 0.63
• Revenue Growth: 22.22%
• EPS Growth: -71.38%
• Country: CA
• Employees: 496
• Sector: Real Estate
• Sector Strength: 53
• Industry: REIT - Retail
• EPS (TTM): -0.41
• Shares Outstanding: 294,519,000
• 10 Day Avg. Volume: 583,735
• 30 Day Avg. Volume: 547,366
• PEG Ratio: 0.01
• Price to Book (P/B): 0.73
• Price to Sales (P/S): 4.25
• P/FCF Ratio: 67.52
• Enterprise Value/Market Cap: 2.31
• Enterprise Value/Revenue: 9.23
• Enterprise Value/Gross Profit: 16.37
• Enterprise Value/Ebitda: 23.09
• 1Y Price Target: $20.02
• Price Target Upside: 6.06% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 2
• EPS Forecast (FY): 1.07
• Revenue Forecast (FY): $1.19B

• Rating: 71 Outperform
• Price Target: C$21.00 ▲(11.23% Upside)

RioCan Real Estate Investment's overall stock score reflects its solid financial performance and strong earnings call highlights, including high occupancy rates and successful capital repatriation. However, declining profit margins, increased leverage, and valuation losses pose risks. The stock's moderate valuation and attractive dividend yield provide a balanced investment opportunity.

Positive Factors

High Occupancy Rates

High occupancy rates indicate strong demand for RioCan's properties, ensuring stable rental income and supporting long-term revenue stability.

Strong Leasing Spreads

Record leasing spreads reflect RioCan's ability to secure favorable lease terms, enhancing revenue potential and demonstrating competitive market positioning.

Successful Capital Repatriation

Effective capital repatriation enhances financial flexibility, enabling strategic reinvestment and supporting sustainable growth initiatives.

Negative Factors

Valuation Losses

Significant valuation losses on investment properties can impact balance sheet strength and may signal challenges in asset value retention.

Increased Leverage

Rising leverage levels may constrain financial flexibility, increasing risk and potentially affecting the company's ability to invest in growth opportunities.

Declining Profit Margins

Decreasing profit margins suggest cost pressures or increased expenses, which could impact profitability and require strategic cost management.

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. 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 Money

RioCan generates revenue primarily through rental income from its diverse portfolio of retail and mixed-use properties. The company leases spaces to a variety of tenants, including national and local retailers, service providers, and residential units, which contribute to stable and recurring cash flow. Additionally, RioCan pursues development projects that add value to its existing properties, increasing overall income potential. The company also benefits from strategic partnerships with various stakeholders in the real estate sector, enhancing its ability to acquire, develop, and manage properties efficiently. Factors such as market demand, property location, and the overall economic environment significantly influence its earnings.

RioCan Real Estate Investment Financial Statement Overview

Summary

RioCan Real Estate Investment demonstrates a solid financial position with strong revenue growth and cash flow improvements. However, there are concerns regarding declining profit margins and increased leverage. The company maintains a stable balance sheet, but profitability metrics have weakened. Continued focus on cost management and maintaining leverage levels will be crucial for sustaining financial health.

Income Statement

RioCan Real Estate Investment shows a solid revenue growth rate of 5.22% in the TTM, indicating a positive trend. The gross profit margin remains strong at approximately 59.70%, although it has slightly decreased from previous years. The net profit margin has decreased to 20.00% from 36.62% in the previous year, suggesting some pressure on profitability. EBIT and EBITDA margins are healthy, but have also seen a decline, indicating potential cost pressures or increased expenses.

Balance Sheet

The company's debt-to-equity ratio has increased slightly to 1.02, indicating a moderate level of leverage. Return on equity has decreased to 3.49% in the TTM, reflecting a decline in profitability relative to equity. The equity ratio remains stable, suggesting a balanced capital structure. Overall, the balance sheet shows stability but with increased leverage and reduced returns.

Cash Flow

Operating cash flow has improved, with a coverage ratio of 0.35, indicating strong cash generation relative to net income. Free cash flow has grown significantly by 56.24% in the TTM, reflecting improved cash management. The free cash flow to net income ratio is healthy at 0.39, suggesting efficient conversion of earnings into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.38B	1.29B	1.16B	1.21B	1.18B	1.14B
Gross Profit	781.12M	831.61M	714.41M	700.49M	689.86M	670.09M
EBITDA	553.70M	731.66M	237.02M	674.08M	675.34M	652.50M
Net Income	283.96M	473.46M	38.80M	236.77M	598.39M	-64.78M
Balance Sheet
Total Assets	15.38B	15.47B	14.84B	15.10B	15.18B	15.27B
Cash, Cash Equivalents and Short-Term Investments	72.32M	190.24M	128.44M	86.23M	77.76M	238.46M
Total Debt	7.46B	7.35B	6.90B	6.78B	6.71B	6.97B
Total Liabilities	8.04B	7.91B	7.40B	7.37B	7.27B	7.53B
Stockholders Equity	7.34B	7.56B	7.44B	7.73B	7.91B	7.73B
Cash Flow
Free Cash Flow	220.06M	81.34M	-5.48M	113.15M	26.52M	35.95M
Operating Cash Flow	487.81M	378.28M	385.52M	506.12M	490.40M	552.58M
Investing Cash Flow	-286.57M	-360.77M	-200.15M	-79.69M	94.39M	-469.34M
Financing Cash Flow	-179.70M	48.49M	-147.37M	-417.97M	-745.49M	61.69M

RioCan Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 18.88
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 18.88 is below the 20-day moving average (MA) of 18.88, above the 50-day MA of 18.77, and above the 200-day MA of 17.63, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 52.24 is Neutral, neither overbought nor oversold. The STOCH value of 63.50 is Neutral, 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

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CRT.UN	75 Outperform	C$3.78B	8.12	11.49%	5.98%	4.11%	35.99%
PLZ.UN	72 Outperform	C$447.26M	12.85	6.45%	6.96%	5.14%	209.83%
SRU.UN	72 Outperform	C$4.46B	20.28	4.42%	6.91%	7.01%	-15.80%
REI.UN	71 Outperform	$5.55B	85.90	0.92%	6.07%	22.22%	-71.38%
PMZ.UN	69 Neutral	C$1.78B	12.56	6.52%	5.62%	26.88%	77.26%
Sector *	65 Neutral	$2.17B	12.19	3.79%	4.94%	3.15%	1.96%
FCR.UN	65 Neutral	C$3.93B	15.07	6.18%	4.69%	-0.83%	-28.93%

RioCan Real Estate Investment Corporate Events

RioCan Reports Strong Q3 Results with High Occupancy

RioCan Real Estate Investment Trust is a Canadian company that focuses on owning, managing, and developing necessity-based retail and mixed-use properties in densely populated communities. As of September 30, 2025, its portfolio includes 173 properties with a net leasable area of approximately 32 million square feet.

RioCan Reports Strong Q3 Results with Robust Leasing Performance

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.

RioCan Completes $200 Million Debenture Issuance

RioCan Real Estate Investment Trust has successfully completed the issuance of $200 million in Series AP senior unsecured debentures, which carry a 4.417% coupon rate and mature in 2032. The funds raised will be used to repay existing debt and support general business purposes, with the debentures receiving a BBB credit rating from Morningstar DBRS, reflecting stable financial positioning.

The most recent analyst rating on ($TSE:REI.UN) stock is a Buy with a C$20.50 price target. To see the full list of analyst forecasts on RioCan Real Estate Investment stock, see the TSE:REI.UN Stock Forecast page.

RioCan Announces $200 Million Debenture Offering to Strengthen Financial Position

RioCan Real Estate Investment Trust has announced the issuance of $200 million in Series AP senior unsecured debentures, set to mature on October 1, 2032, with a 4.417% annual coupon. The proceeds will be used to repay existing debt and for general business purposes. This strategic financial move, facilitated by a syndicate of major capital markets, aims to strengthen RioCan’s financial position and operational flexibility, potentially impacting its market standing and stakeholder interests.

The most recent analyst rating on ($TSE:REI.UN) stock is a Buy with a C$20.50 price target. To see the full list of analyst forecasts on RioCan Real Estate Investment stock, see the TSE:REI.UN Stock Forecast page.

RioCan REIT’s Earnings Call Highlights Strategic Growth

RioCan REIT’s recent earnings call painted a picture of robust performance and strategic growth, despite some challenges. The sentiment was largely positive, with highlights on strong leasing performance, operational and financial growth, and effective capital management. However, concerns were raised regarding a slight decrease in occupancy, challenges in the HBC joint venture, and uncertainties in the retail environment. Overall, the company’s strategic management and performance suggest a promising outlook.

RioCan REIT Reports Strong Q2 2025 Results

RioCan Real Estate Investment Trust is a prominent Canadian company specializing in the ownership, management, and development of necessity-based and mixed-use properties in densely populated communities.