RioCan is one of Canada’s largest real estate investment trusts, with a total enterprise value of approximately $14.9 billion as at September 30, 2019.
Undervalued established dividend payer.
Share Price & News
How has RioCan Real Estate Investment Trust's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: REI.UN has not had significant price volatility in the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: REI.UN underperformed the Canadian REITs industry which returned 15.2% over the past year.
Return vs Market: REI.UN exceeded the Canadian Market which returned 4.9% over the past year.
Price Volatility Vs. Market
How volatile is RioCan Real Estate Investment Trust's share price compared to the market and industry in the last 5 years?
Simply Wall St News
1 week ago | Simply Wall StShould RioCan Real Estate Investment Trust (TSE:REI.UN) Be Disappointed With Their 10% Profit?
1 month ago | Simply Wall StRioCan Real Estate Investment Trust (TSE:REI.UN) Insiders Have Been Selling
1 month ago | Simply Wall StDid RioCan Real Estate Investment Trust (TSE:REI.UN) Use Debt To Deliver Its ROE Of 9.7%?
Is RioCan Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: REI.UN (CA$27.72) is trading below our estimate of fair value (CA$36.7)
Significantly Below Fair Value: REI.UN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: REI.UN is good value based on its PE Ratio (10.9x) compared to the REITs industry average (11x).
PE vs Market: REI.UN is good value based on its PE Ratio (10.9x) compared to the Canadian market (16x).
Price to Earnings Growth Ratio
PEG Ratio: Insufficient data to calculate REI.UN's PEG Ratio to determine if it is good value.
Price to Book Ratio
PB vs Industry: REI.UN is good value based on its PB Ratio (1.1x) compared to the CA REITs industry average (1.1x).
How is RioCan Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?
Forecasted annual revenue growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: Insufficient data to determine if REI.UN's forecast earnings growth is above the savings rate (1.4%).
Earnings vs Market: Insufficient data to determine if REI.UN's earnings are forecast to grow faster than the Canadian market
High Growth Earnings: Insufficient data to determine if earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: REI.UN's revenue is expected to decline over the next 3 years (-1.3% per year).
High Growth Revenue: REI.UN's revenue is forecast to decline over the next 3 years (-1.3% per year).
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: Insufficient data to determine if REI.UN's Return on Equity is forecast to be high in 3 years time
How has RioCan Real Estate Investment Trust performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: REI.UN has a large one-off gain of CA$246.1M impacting its September 30 2019 financial results.
Growing Profit Margin: REI.UN's current net profit margins (57.6%) are higher than last year (49.1%).
Past Earnings Growth Analysis
Earnings Trend: REI.UN's earnings have grown by 11.4% per year over the past 5 years.
Accelerating Growth: REI.UN's earnings growth over the past year (32%) exceeds its 5-year average (11.4% per year).
Earnings vs Industry: REI.UN earnings growth over the past year (32%) exceeded the REITs industry 9.2%.
Return on Equity
High ROE: REI.UN's Return on Equity (9.7%) is considered low.
Return on Assets
Return on Capital Employed
How is RioCan Real Estate Investment Trust's financial position? (This company is analysed differently as a bank or financial institution)
Financial Position Analysis
Debt to Equity History and Analysis
Inventory Level: REI.UN has a high level of physical assets or inventory.
Debt Coverage by Assets: REI.UN's debt is not covered by short term assets (assets are 0.1x debt).
Financial Institutions Analysis
Asset Level: REI.UN's level of assets compared to its equity is low.
Allowance for Bad Loans: Insufficient data to determine if REI.UN has a sufficient allowance for bad loans.
Low Risk Liabilities: REI.UN reports no customer deposits, loans are made up entirely of externally borrowed funds.
Loan Level: Insufficient data to determine if REI.UN has an acceptable proportion of non-loan assets held.
Low Risk Deposits: REI.UN has advanced significantly more loans than the customer deposits it holds.
Level of Bad Loans: Insufficient data to determine if REI.UN has an appropriate level of bad loans.
What is RioCan Real Estate Investment Trust's current dividend yield, its reliability and sustainability?
Current Dividend Yield
Dividend Yield vs Market
Current dividend yield vs market & industry
Notable Dividend: REI.UN's dividend (5.19%) is higher than the bottom 25% of dividend payers in the Canadian market (1.89%).
High Dividend: REI.UN's dividend (5.19%) is low compared to the top 25% of dividend payers in the Canadian market (5.31%).
Stability and Growth of Payments
Stable Dividend: REI.UN's dividends per share have been stable in the past 10 years.
Growing Dividend: REI.UN's dividend payments have increased over the past 10 years.
Current Payout to Shareholders
Dividend Coverage: At its current payout ratio (77.4%), REI.UN's payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: REI.UN's dividends in 3 years are forecast to be thoroughly covered by earnings (0.3% payout ratio).
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ed Sonshine (72yo)
Mr. Edward Sonshine, also known as Ed, O.Ont., Q.C., B.A, LL.B, is the Founder of Riocan Real Estate Investment Trust and has been its Chief Executive Officer since 1993. Mr. Sonshine has been Advisor to t ...
CEO Compensation Analysis
Compensation vs Market: Ed's total compensation ($USD5.06M) is above average for companies of similar size in the Canadian market ($USD3.73M).
Compensation vs Earnings: Ed's compensation has been consistent with company performance over the past year.
|CEO & Trustee||27.1yrs||CA$6.71m||0.12% CA$10.8m|
|President & COO||0.9yrs||CA$1.50m||0.017% CA$1.5m|
|Senior VP & CFO||2.8yrs||CA$1.20m||0.0032% CA$277.4k|
|Senior Vice President of Leasing & Tenant Coordination||12.1yrs||CA$1.36m||0.018% CA$1.6m|
|Vice President of Investments||1.6yrs||no data||no data|
|Vice President of Investor Relations||0.08yrs||no data||no data|
|Senior VP||2.5yrs||no data||no data|
|Vice President of Corporate Marketing & Communications||2.3yrs||no data||no data|
|Vice President of Human Resources||1.5yrs||no data||no data|
|Senior Vice President of Operations||0.8yrs||no data||no data|
Experienced Management: REI.UN's management team is not considered experienced ( 2 years average tenure), which suggests a new team.
|CEO & Trustee||27.1yrs||CA$6.71m||0.12% CA$10.8m|
|Independent Trustee||2.8yrs||CA$207.00k||no data|
|Independent Trustee||11yrs||CA$198.50k||0.0070% CA$619.1k|
|Independent Chairman of the Board||0yrs||CA$375.00k||0.054% CA$4.8m|
|Independent Trustee||20.7yrs||CA$214.00k||0.037% CA$3.3m|
|Independent Trustee||1.8yrs||CA$164.50k||0.0015% CA$129.5k|
|Independent Trustee||6.7yrs||CA$188.50k||no data|
|Independent Trustee||4.7yrs||CA$207.50k||0.0053% CA$462.4k|
Experienced Board: REI.UN's board of directors are considered experienced (8.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
RioCan Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources
- Name: RioCan Real Estate Investment Trust
- Ticker: REI.UN
- Exchange: TSX
- Industry: Retail REITs
- Sector: Real Estate
- Market Cap: CA$8.807b
- Shares outstanding: 317.71m
- Website: https://www.riocan.com
Number of Employees
- RioCan Real Estate Investment Trust
- RioCan Yonge Eglinton Centre
- Suite 500
- M4P 1E4
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|REI.UN||TSX (The Toronto Stock Exchange)||Yes||Trust Units||CA||CAD||Jan 1994|
|R7G||DB (Deutsche Boerse AG)||Yes||Trust Units||DE||EUR||Jan 1994|
|RIOC.F||OTCPK (Pink Sheets LLC)||Yes||Trust Units||US||USD||Jan 1994|
RioCan is one of Canada’s largest real estate investment trusts, with a total enterprise value of approximately $14.9 billion as at September 30, 2019. 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, 2019, our portfolio is comprised of 225 properties with an aggregate net leasable area of approximately 39.3 million square feet including residential rental and 14 development properties as at September 30, 2019 (at RioCan's Interest).
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/02/19 00:11|
|End of Day Share Price||2020/02/18 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.