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

• Market Cap: $5.22B
• Dividend Yield: 6.34%
• Average Volume (3M): 648.13K
• Price to Earnings (P/E): 18.7
• Beta (1Y): 0.79
• Revenue Growth: 17.42%
• EPS Growth: 377.43%
• Country: CA
• Employees: 496
• Sector: Real Estate
• Sector Strength: 54
• Industry: REIT - Retail
• EPS (TTM): 0.49
• Shares Outstanding: 294,415,830
• 10 Day Avg. Volume: 805,280
• 30 Day Avg. Volume: 648,134
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 2.42
• Enterprise Value/Revenue: 9.69
• Enterprise Value/Gross Profit: 16.23
• Enterprise Value/Ebitda: 24.43
• 1Y Price Target: $19.88
• Price Target Upside: 11.21% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 8

• Rating: 71 Outperform
• Price Target: C$19.50 ▲(9.06% Upside)

RioCan's strong earnings call performance and attractive valuation are the most significant factors driving the score. The company's stable financial performance and neutral technical indicators also contribute positively, although challenges in profitability and liquidity need addressing.

Positive Factors

Asset Divestment

Divesting residential assets could provide additional capital for the unit buyback, particularly if the unit price remains at current levels.

Condo Sales

FFO per unit growth was driven by a $12.5 million increase in income from condo sales.

Earnings Growth

Solid leasing spreads and residential profits drive 9% growth in FFO per unit.

Negative Factors

Financial Outlook

Reflecting the more modest total return, the rating for RioCan REIT is now a HOLD, down from a previous Buy.

HBC Liquidation Impact

RioCan has significant exposure to Hudson's Bay Co., which is undergoing full liquidation, leading to a negative near-term impact on RioCan's portfolio and cash flow.

Re-tenanting Costs

Re-tenanting large spaces from the HBC sites can be both timely and expensive, leading to substantial costs for redevelopment.

RioCan Real Estate Investment Business Overview & Revenue Model

Company Description

RioCan Real Estate Investment Trust (REI.UN) is one of Canada's largest real estate investment trusts, focused primarily on the ownership, operation, and development of retail and mixed-use properties across major urban markets in Canada. The company invests in a diversified portfolio that includes shopping centers, retail plazas, and residential developments, aiming to create sustainable and vibrant communities. With a commitment to responsible management and growth, RioCan also emphasizes the integration of innovative solutions in its property management and development practices.

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 demonstrates stable revenue growth and a strong operational cash flow. However, it faces challenges with declining net profitability and free cash flow. The balance sheet is solid with a moderate debt-to-equity ratio, though high debt levels require careful management.

Income Statement

The company demonstrates stable revenue growth, with a 4.9% increase from 2023 to 2024. The gross profit margin for TTM is 59.7%, which is consistent with previous periods, reflecting stable cost management. However, the net profit margin for TTM has decreased significantly to 20.0% from 36.6% in 2024, indicating pressure on net profitability. EBIT and EBITDA margins are relatively strong at 55.4% and 39.7% respectively, but the decline in EBITDA compared to 2024 suggests potential efficiency issues.

Balance Sheet

The balance sheet shows a stable equity base with a debt-to-equity ratio of 1.02, indicating moderate leverage. Return on equity for TTM is 3.6%, which is a decline from previous years, reflecting lower profitability. The equity ratio is 47.8%, suggesting a solid financial structure. However, high debt levels could pose a risk if not managed properly, especially in a rising interest rate environment.

Cash Flow

The company shows a decrease in free cash flow for TTM. Free cash flow to net income ratio is 0.54, indicating that only a portion of net income is being converted into free cash flow. The operating cash flow to net income ratio is higher at 1.40, reflecting strong operational cash generation. Nevertheless, the decline in free cash flow growth rate highlights potential challenges in maintaining liquidity.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.29B	1.16B	1.21B	1.18B	1.14B
Gross Profit	794.30M	714.41M	700.49M	689.86M	670.09M
EBITDA	731.66M	237.02M	674.08M	675.34M	652.50M
Net Income	473.46M	38.80M	236.77M	598.39M	-64.78M
Balance Sheet
Total Assets	15.47B	14.84B	15.10B	15.18B	15.27B
Cash, Cash Equivalents and Short-Term Investments	190.24M	128.44M	86.23M	77.76M	238.46M
Total Debt	7.35B	6.90B	6.78B	6.71B	6.97B
Total Liabilities	7.91B	7.40B	7.37B	7.27B	7.53B
Stockholders Equity	7.56B	7.44B	7.73B	7.91B	7.73B
Cash Flow
Free Cash Flow	81.34M	-5.48M	113.15M	26.52M	35.95M
Operating Cash Flow	378.28M	385.52M	506.12M	490.40M	552.58M
Investing Cash Flow	-360.77M	-200.15M	-79.69M	94.39M	-469.34M
Financing Cash Flow	48.49M	-147.37M	-417.97M	-745.49M	61.69M

RioCan Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.88
• 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 17.88 is above the 20-day moving average (MA) of 17.76, above the 50-day MA of 17.57, and above the 200-day MA of 17.59, indicating a bullish trend. The MACD of 0.05 indicates Positive momentum. The RSI at 57.12 is Neutral, neither overbought nor oversold. The STOCH value of 46.39 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	81 Outperform	C$3.77B	8.51	11.08%	6.02%	4.26%	72.02%
SRU.UN	78 Outperform	C$4.43B	20.11	4.42%	7.03%	7.01%	-15.80%
FCR.UN	73 Outperform	C$4.00B	15.32	6.58%	4.76%	2.53%	―
PLZ.UN	72 Outperform	C$460.50M	13.23	6.45%	6.67%	5.14%	209.83%
REI.UN	71 Outperform	$5.22B	18.67	3.81%	6.34%	17.42%	377.43%
PMZ.UN	69 Neutral	C$1.60B	25.55	3.26%	5.74%	23.01%	-50.29%
Sector *	62 Neutral	AU$3.04B	8.41	-1.53%	5.05%	16.79%	54.28%

RioCan Real Estate Investment Corporate Events

RioCan Reports Robust Q2 2025 Results with Strong Leasing Performance

RioCan Real Estate Investment Trust reported strong financial results for the second quarter of 2025, with a notable 9.3% increase in FFO per unit. The company achieved impressive leasing spreads and high tenant retention, underscoring its operational excellence and strategic focus on capital recycling. These results highlight RioCan’s robust portfolio and financial flexibility, reinforcing its market position and ability to drive sustained growth.

The most recent analyst rating on ($TSE:REI.UN) stock is a Hold with a C$20.25 price target. To see the full list of analyst forecasts on RioCan Real Estate Investment stock, see the TSE:REI.UN Stock Forecast page.