RioCan Real Estate Investment Trust

TSX:REI.UN Stock Report

Market Cap: CA$5.7b

RioCan Real Estate Investment Trust Valuation

Is REI.UN undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

  • Below Fair Value

  • Significantly Below Fair Value

  • Price-To-Earnings vs Peers

  • Price-To-Earnings vs Industry

  • Price-To-Earnings vs Fair Ratio

  • Analyst Forecast

Share Price vs Fair Value

What is the Fair Price of REI.UN when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: REI.UN (CA$18.82) is trading below our estimate of fair value (CA$21.82)

Significantly Below Fair Value: REI.UN is trading below fair value, but not by a significant amount.

Key Valuation Metric

Which metric is best to use when looking at relative valuation for REI.UN?

Key metric: As REI.UN is profitable we use its Price-To-Earnings Ratio for relative valuation analysis.

The above table shows the Price to Earnings ratio for REI.UN. This is calculated by dividing REI.UN's market cap by their current earnings.
What is REI.UN's PE Ratio?
PE Ratio24.6x
EarningsCA$230.16m
Market CapCA$5.69b

Price to Earnings Ratio vs Peers

How does REI.UN's PE Ratio compare to its peers?

The above table shows the PE ratio for REI.UN vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyForward PEEstimated GrowthMarket Cap
Peer Average21.3x
SRU.UN SmartCentres Real Estate Investment Trust
27.5xn/aCA$4.4b
FCR.UN First Capital Real Estate Investment Trust
10.9xn/aCA$3.8b
CRT.UN CT Real Estate Investment Trust
22.9xn/aCA$3.6b
CRR.UN Crombie Real Estate Investment Trust
24xn/aCA$2.6b
REI.UN RioCan Real Estate Investment Trust
24.6x28.3%CA$5.7b

Price-To-Earnings vs Peers: REI.UN is expensive based on its Price-To-Earnings Ratio (24.6x) compared to the peer average (21.3x).

Price to Earnings Ratio vs Industry

How does REI.UN's PE Ratio compare vs other companies in the North American Retail REITs Industry?

2 CompaniesPrice / EarningsEstimated GrowthMarket Cap
REI.UN 24.6xIndustry Avg. 28.3xNo. of Companies8PE01632486480+
2 CompaniesEstimated GrowthMarket Cap
No more companies

Price-To-Earnings vs Industry: REI.UN is good value based on its Price-To-Earnings Ratio (24.6x) compared to the North American Retail REITs industry average (28.3x).

Price to Earnings Ratio vs Fair Ratio

What is REI.UN's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

REI.UN PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio24.6x
Fair PE Ratio20.3x

Price-To-Earnings vs Fair Ratio: REI.UN is expensive based on its Price-To-Earnings Ratio (24.6x) compared to the estimated Fair Price-To-Earnings Ratio (20.3x).

Analyst Price Targets

What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?

The above table shows the analyst REI.UN forecast and predictions for the stock price in 12 month’s time.
DateShare PriceAverage 1Y Price TargetDispersionHighLow1Y Actual priceAnalysts
CurrentCA$18.82
CA$21.98
+16.8%
4.2%CA$23.00CA$20.75n/a10
Nov ’25CA$18.75
CA$21.68
+15.6%
5.1%CA$23.00CA$20.25n/a10
Oct ’25CA$20.43
CA$20.95
+2.5%
5.0%CA$23.00CA$19.00n/a10
Sep ’25CA$18.65
CA$20.65
+10.7%
4.0%CA$22.25CA$19.00n/a10
Aug ’25CA$17.88
CA$20.65
+15.5%
3.8%CA$22.00CA$19.00n/a10
Jul ’25CA$16.81
CA$20.70
+23.1%
3.6%CA$22.00CA$19.00n/a10
Jun ’25CA$17.29
CA$20.70
+19.7%
3.6%CA$22.00CA$19.00n/a10
May ’25CA$17.45
CA$21.38
+22.5%
6.2%CA$24.00CA$19.00n/a10
Apr ’25CA$18.45
CA$21.53
+16.7%
6.0%CA$24.00CA$19.00n/a10
Mar ’25CA$18.34
CA$21.63
+17.9%
6.3%CA$24.00CA$19.00n/a10
Feb ’25CA$18.51
CA$21.63
+16.8%
6.8%CA$23.75CA$18.50n/a10
Jan ’25CA$18.62
CA$21.63
+16.1%
6.8%CA$23.75CA$18.50n/a10
Dec ’24CA$17.81
CA$21.30
+19.6%
5.9%CA$23.00CA$18.50n/a10
Nov ’24CA$17.23
CA$22.94
+33.2%
8.0%CA$25.00CA$20.00CA$18.759
Oct ’24CA$18.07
CA$24.06
+33.1%
3.6%CA$25.00CA$22.00CA$20.439
Sep ’24CA$19.39
CA$24.06
+24.1%
3.6%CA$25.00CA$22.00CA$18.659
Aug ’24CA$19.89
CA$24.61
+23.7%
4.7%CA$25.50CA$22.00CA$17.889
Jul ’24CA$19.28
CA$25.06
+30.0%
3.0%CA$26.00CA$23.50CA$16.819
Jun ’24CA$19.87
CA$25.06
+26.1%
3.0%CA$26.00CA$23.50CA$17.299
May ’24CA$20.92
CA$25.00
+19.5%
3.1%CA$26.00CA$23.50CA$17.459
Apr ’24CA$20.39
CA$25.00
+22.6%
3.1%CA$26.00CA$23.50CA$18.459
Mar ’24CA$21.57
CA$25.00
+15.9%
3.3%CA$26.00CA$23.50CA$18.348
Feb ’24CA$23.30
CA$24.56
+5.4%
3.3%CA$26.25CA$23.50CA$18.518
Jan ’24CA$21.13
CA$24.00
+13.6%
5.4%CA$26.25CA$22.00CA$18.628
Dec ’23CA$21.21
CA$23.88
+12.6%
5.2%CA$26.25CA$22.00CA$17.818
Nov ’23CA$19.46
CA$24.44
+25.6%
5.3%CA$26.25CA$22.00CA$17.239

Analyst Forecast: Target price is less than 20% higher than the current share price.

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