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

• Market Cap: $5.25B
• Dividend Yield: 6.43%
• Average Volume (3M): 693.97K
• Price to Earnings (P/E): 20.3
• Beta (1Y): 0.86
• Revenue Growth: 13.66%
• EPS Growth: 426.86%
• Country: CA
• Employees: 496
• Sector: Real Estate
• Sector Strength: 67
• Industry: REIT - Retail
• EPS (TTM): -0.28
• Shares Outstanding: 296,731,800
• 10 Day Avg. Volume: 697,522
• 30 Day Avg. Volume: 693,970
• PEG Ratio: -0.45
• Price to Book (P/B): 0.84
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 57.16
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $19.99
• Price Target Upside: 13.09% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 8

• Rating: 69 Neutral
• Price Target: C$19.00 ▲(7.47%Upside)

RioCan's strong operational metrics, high dividend yield, and strategic focus on debt reduction are significant strengths. However, challenges such as declining net profitability and the impact of HBC's insolvency on FFO guidance slightly offset these positives.

Positive Factors

Debt Management

More than 50% of 2025 debt maturities have already been addressed, with significant repayments and attractive refinancing options.

Earnings

RioCan generated strong financial performance in Q1/25, driven by healthy operating performance and profits from condo completions.

Negative Factors

Property Re-tenanting

Re-tenanting large spaces due to HBC's exit could take an extended period and be costly, impacting RioCan's revenue.

Tenant Issues

The bankruptcy court has allowed HBC to stop paying rent to RioCan, impacting RioCan's financials.

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, primarily focused on owning, managing, and developing retail and mixed-use properties. The company's portfolio includes shopping centers, mixed-use developments, and residential properties located in prime, high-density urban areas across Canada. RioCan's strategic focus is on urbanizing its portfolio with a significant emphasis on mixed-use development, combining residential, retail, and office spaces to create vibrant communities.

How the Company Makes Money

RioCan makes money through the rental income generated from its diverse portfolio of retail and mixed-use properties. The primary revenue stream comes from leasing retail space to a variety of tenants, including national and international retailers, supermarkets, and service providers. Additionally, RioCan generates income from its residential properties through leasing units to tenants, contributing to its revenue diversification efforts. The company also engages in property development, creating new commercial and residential spaces, which can be sold or leased to generate additional revenue. Strategic partnerships with other real estate developers and institutional investors further enhance its financial performance, allowing for shared investment risks and expanded development capabilities.

RioCan Real Estate Investment Financial Statement Overview

Summary

RioCan demonstrates stable revenue growth and strong operational cash flow, yet faces challenges with declining net profitability and free cash flow. The balance sheet is solid with a moderate debt-to-equity ratio, although 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
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
1.30B	1.29B	1.16B	1.21B	1.18B	1.14B
	Gross Profit
778.20M	794.30M	714.41M	700.49M	689.86M	670.09M
	EBIT
721.75M	740.95M	679.19M	669.30M	671.31M	648.15M
	EBITDA
516.98M	731.66M	237.02M	674.08M	675.34M	652.50M
	Net Income Common Stockholders
260.71M	473.46M	38.80M	236.77M	598.39M	-64.78M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
59.49M	190.24M	128.44M	86.23M	77.76M	238.46M
	Total Assets
15.31B	15.47B	14.84B	15.10B	15.18B	15.27B
	Total Debt
7.43B	7.35B	6.90B	6.78B	6.71B	6.97B
	Net Debt
7.37B	7.16B	6.77B	6.69B	6.63B	6.73B
	Total Liabilities
7.99B	7.91B	7.40B	7.37B	7.27B	7.53B
	Stockholders Equity
7.32B	7.56B	7.44B	7.73B	7.91B	7.73B
Cash Flow		Free Cash Flow
140.84M	81.34M	-5.48M	113.15M	26.52M	35.95M
	Operating Cash Flow
364.48M	378.28M	385.52M	506.12M	490.40M	552.58M
	Investing Cash Flow
-324.30M	-360.77M	-200.15M	-79.69M	94.39M	-469.34M
	Financing Cash Flow
-25.36M	48.49M	-147.37M	-417.97M	-745.49M	61.69M

RioCan Real Estate Investment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 17.68
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 17.68 is above the 20-day moving average (MA) of 17.35, above the 50-day MA of 17.03, and below the 200-day MA of 18.01, indicating a neutral trend. The MACD of 0.13 indicates Negative momentum. The RSI at 56.61 is Neutral, neither overbought nor oversold. The STOCH value of 66.89 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	82 Outperform	C$3.87B	8.60	11.23%	5.71%	4.54%	68.32%
SRU.UN	78 Outperform	C$4.40B	18.52	4.75%	7.17%	10.06%	-19.26%
PMZ.UN	76 Outperform	C$1.56B	27.16	2.99%	5.54%	22.60%	-48.92%
PLZ.UN	74 Outperform	C$428.45M	17.58	4.57%	7.21%	6.36%	13.91%
FCR.UN	74 Outperform	C$3.75B	17.49	5.40%	4.98%	3.11%	―
REI.UN	69 Neutral	$5.25B	20.30	3.61%	6.43%	13.66%	426.86%
Sector *	61 Neutral	$2.85B	10.72	0.40%	6.07%	5.80%	-21.26%

RioCan Real Estate Investment Corporate Events

RioCan Reports Strong Q1 2025 Results Amid Economic Challenges

RioCan Real Estate Investment Trust reported strong first-quarter results for 2025, with significant leasing spreads and same property NOI growth despite global economic volatility. The company achieved a 96% completion rate for condominium interim closings and is proceeding with the sale of four additional assets as part of its monetization strategy. Despite a net loss per unit due to valuation losses in its joint venture with HBC, RioCan’s financial position remains robust, supported by a strong balance sheet and liquidity. The company has revised its FFO per unit guidance for 2025, maintaining a focus on capital management and growth.

RioCan Addresses Impact of Hudson’s Bay CCAA Filing

RioCan Real Estate Investment Trust has provided an update regarding its exposure to Hudson’s Bay Company’s recent CCAA filing. As a landlord and partner in the RioCan-HBC Joint Venture, RioCan is committed to protecting its stakeholders’ interests by exploring all business and legal options. The company aims to leverage its leasing and development expertise to safeguard the value of its properties, which include prime real estate in major Canadian markets. Despite the challenges posed by HBC’s restructuring, RioCan’s strong core business and financial position enable it to navigate the situation effectively.