TSX:REI.UN

Stock Analysis Report

RioCan Real Estate Investment Trust

Executive Summary

RioCan is one of Canada’s largest real estate investment trusts with a total enterprise value of approximately $14.3 billion as at June 30, 2019.

Snowflake

Fundamentals

Established dividend payer with proven track record.

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


Market Performance


7 Day Return

0.4%

REI.UN

-0.8%

CA REITs

0.1%

CA Market


1 Year Return

10.3%

REI.UN

17.2%

CA REITs

1.6%

CA Market

Return vs Industry: REI.UN underperformed the Canadian REITs industry which returned 17.2% over the past year.

Return vs Market: REI.UN exceeded the Canadian Market which returned 1.6% over the past year.


Shareholder returns

REI.UNIndustryMarket
7 Day0.4%-0.8%0.1%
30 Day1.6%1.7%-2.9%
90 Day2.2%5.9%-1.4%
1 Year16.7%10.3%23.6%17.2%5.2%1.6%
3 Year19.4%0.6%40.3%18.1%13.8%3.7%
5 Year32.3%0.4%67.0%24.3%25.3%7.2%

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

Valuation

Is RioCan Real Estate Investment Trust undervalued compared to its fair value and its price relative to the market?

29.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: REI.UN (CA$26.58) is trading below our estimate of fair value (CA$37.6)

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


Price To Earnings Ratio

PE vs Industry: REI.UN is poor value based on its PE Ratio (11.2x) compared to the REITs industry average (9.6x).

PE vs Market: REI.UN is good value based on its PE Ratio (11.2x) compared to the Canadian market (13.7x).


Price to Earnings Growth Ratio

Low 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 (1x) compared to the CA REITs industry average (1x).


Next Steps

Future Growth

How is RioCan Real Estate Investment Trust forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: REI.UN's forecast earnings growth (6.2% per year) is above the savings rate (1.9%).

Earnings vs Market: REI.UN's earnings (6.2% per year) are forecast to grow slower than the Canadian market (13.2% per year).

High Growth Earnings: REI.UN's earnings are forecast to grow, but not significantly.

Revenue vs Market: REI.UN's revenue is expected to decline over the next 3 years (-0.8% per year).

High Growth Revenue: REI.UN's revenue is forecast to decline over the next 3 years (-0.8% per year).


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if REI.UN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has RioCan Real Estate Investment Trust performed over the past 5 years?

8.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: REI.UN's earnings have grown by 8.2% per year over the past 5 years.

Accelerating Growth: REI.UN's earnings growth over the past year (13.7%) exceeds its 5-year average (8.2% per year).

Earnings vs Industry: REI.UN earnings growth over the past year (13.7%) exceeded the REITs industry 6%.


Return on Equity

High ROE: REI.UN's Return on Equity (9.2%) is considered low.


Return on Assets

ROA vs Industry: REI.UN's Return on Assets is below or equal to the REITs industry average last year.


Return on Capital Employed

ROCE Improving: REI.UN has improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

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


Balance Sheet

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.


Next Steps

Dividend

What is RioCan Real Estate Investment Trust's current dividend yield, its reliability and sustainability?

5.42%

Current Dividend Yield


Upcoming Dividend Payment

Purchase RioCan Real Estate Investment Trust before the 'Buy Limit' to receive their next dividend payment.


Dividend Yield vs Market

company5.4%marketbottom25%2.0%markettop25%6.0%industryaverage4.7%forecastin3Years5.4%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: REI.UN's dividend (5.42%) is higher than the bottom 25% of dividend payers in the Canadian market (2.01%).

High Dividend: REI.UN's dividend (5.42%) is low compared to the top 25% of dividend payers in the Canadian market (6.01%).

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 (77.2%), 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 (0.2% payout ratio).


Next Steps

Management

What is the CEO of RioCan Real Estate Investment Trust's salary, the management and board of directors tenure and is there insider trading?

2.0yrs

Average management tenure


CEO

Ed Sonshine (72yo)

26.8yrs

Tenure

CA$6,706,961

Compensation

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 ($USD5.11M) is about average for companies of similar size in the Canadian market ($USD3.92M).

Compensation vs Earnings: Ed's compensation has been consistent with company performance over the past year.


Management Age and Tenure

2.0yrs

Average Tenure

Experienced Management: REI.UN's management team is considered experienced (2 years average tenure).


Board Age and Tenure

8.5yrs

Average Tenure

66yo

Average Age

Experienced Board: REI.UN's board of directors are considered experienced (8.5 years average tenure).


Insider Trading

Insider Buying: REI.UN insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyCA$77,71506 Sep 19
Jonathan Gitlin
EntityIndividual
Role
President
President & COO
Shares3,000
Max PriceCA$25.91
SellCA$3,15914 Aug 19
Sharon Sallows
EntityIndividual
Role
Member of the Board of Directors
Independent Trustee
Shares120
Max PriceCA$26.33
BuyCA$36,30912 Aug 19
Jonathan Gitlin
EntityIndividual
Role
President
President & COO
Shares1,379
Max PriceCA$26.33
BuyCA$52,80721 Jun 19
Jonathan Gitlin
EntityIndividual
Role
President
President & COO
Shares1,980
Max PriceCA$26.67
SellCA$1,141,84019 Jun 19
John Ballantyne
EntityIndividual
Shares42,500
Max PriceCA$26.90
BuyCA$77,69529 May 19
Jonathan Gitlin
EntityIndividual
Role
President
President & COO
Shares2,940
Max PriceCA$26.46
BuyCA$67,16714 May 19
Richard Dansereau
EntityIndividual
Role
Member of the Board of Directors
Independent Trustee
Shares2,550
Max PriceCA$26.34
BuyCA$90,54509 May 19
S. Marshall
EntityIndividual
Role
Member of the Board of Directors
Independent Trustee
Shares3,500
Max PriceCA$25.87
BuyCA$33,46706 Nov 18
Richard Dansereau
EntityIndividual
Role
Member of the Board of Directors
Independent Trustee
Shares1,375
Max PriceCA$24.34
SellCA$2,89402 Nov 18
Sharon Sallows
EntityIndividual
Role
Member of the Board of Directors
Independent Trustee
Shares120
Max PriceCA$24.12
BuyCA$17,75302 Nov 18
Richard Dansereau
EntityIndividual
Role
Member of the Board of Directors
Independent Trustee
Shares745
Max PriceCA$23.83

Ownership Breakdown


Management Team

  • Ed Sonshine (72yo)

    CEO & Trustee

    • Tenure: 26.8yrs
    • Compensation: CA$6.71m
  • Jeff Ross

    Senior Vice President of Leasing & Tenant Coordination

    • Tenure: 11.8yrs
    • Compensation: CA$1.36m
  • Sandra Levy

    Vice President of Human Resources

    • Tenure: 1.2yrs
  • Qi Tang

    Senior VP & CFO

    • Tenure: 2.5yrs
    • Compensation: CA$1.20m
  • Jonathan Gitlin

    President & COO

    • Tenure: 0.6yrs
    • Compensation: CA$1.50m
  • Oliver Harrison

    Senior Vice President of Operations

    • Tenure: 0.4yrs
  • Christian Green

    Assistant Vice President

    • Tenure: 0yrs
  • Terri Andrianopoulos

    Vice President of Corporate Marketing & Communications

    • Tenure: 2yrs
  • Jennifer Suess

    Senior VP

    • Tenure: 2.2yrs
  • Ryan Donkers

    Vice President of Investments

    • Tenure: 1.3yrs

Board Members

  • Siim Vanaselja (62yo)

    Independent Trustee

    • Tenure: 2.4yrs
    • Compensation: CA$207.00k
  • Ed Sonshine (72yo)

    CEO & Trustee

    • Tenure: 26.8yrs
    • Compensation: CA$6.71m
  • Chuck Winograd (71yo)

    Independent Trustee

    • Tenure: 10.7yrs
    • Compensation: CA$198.50k
  • Dale Lastman (61yo)

    • Tenure: 15.3yrs
    • Compensation: CA$176.50k
  • Paul Godfrey (80yo)

    Independent Chairman of the Board

    • Tenure: 0yrs
    • Compensation: CA$375.00k
  • Sharon Sallows (70yo)

    Independent Trustee

    • Tenure: 20.3yrs
    • Compensation: CA$214.00k
  • Richard Dansereau (58yo)

    Independent Trustee

    • Tenure: 1.4yrs
    • Compensation: CA$164.50k
  • Bonnie Brooks (66yo)

    Independent Trustee

    • Tenure: 6.3yrs
    • Compensation: CA$188.50k
  • S. Marshall (62yo)

    Independent Trustee

    • Tenure: 4.3yrs
    • Compensation: CA$207.50k

Company Information

RioCan Real Estate Investment Trust's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: RioCan Real Estate Investment Trust
  • Ticker: REI.UN
  • Exchange: TSX
  • Founded:
  • Industry: Retail REITs
  • Sector: Real Estate
  • Market Cap: CA$8.206b
  • Shares outstanding: 308.72m
  • Website: https://www.riocan.com

Number of Employees


Location

  • RioCan Real Estate Investment Trust
  • RioCan Yonge Eglinton Centre
  • Suite 500
  • Toronto
  • Ontario
  • M4P 1E4
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
REI.UNTSX (The Toronto Stock Exchange)YesTrust UnitsCACADJan 1994
R7GDB (Deutsche Boerse AG)YesTrust UnitsDEEURJan 1994
RIOC.FOTCPK (Pink Sheets LLC)YesTrust UnitsUSUSDJan 1994

Biography

RioCan is one of Canada’s largest real estate investment trusts with a total enterprise value of approximately $14.3 billion as at June 30, 2019. RioCan owns, manages and develops retail-focused, increasin ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 23:41
End of Day Share Price2019/10/18 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.