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 $14.1 billion as at March 31, 2019.

Snowflake

Fundamentals

Proven track record average dividend payer.

Risks

  • RioCan Real Estate Investment Trust is covered by less than 3 analysts.

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

0.5%

TSX:REI.UN

1.0%

CA REITs

-1.4%

CA Market


1 Year Return

4.6%

TSX:REI.UN

7.2%

CA REITs

-4.4%

CA Market

REI.UN underperformed the REITs industry which returned 7.2% over the past year.

REI.UN outperformed the Market in Canada which returned -4.4% over the past year.


Share holder returns

REI.UNIndustryMarket
7 Day0.5%1.0%-1.4%
30 Day1.5%1.9%-2.8%
90 Day0.4%1.9%-3.1%
1 Year10.7%4.6%13.2%7.2%-1.0%-4.4%
3 Year9.8%-7.4%30.9%10.0%13.4%3.4%
5 Year27.9%-2.9%57.4%16.9%12.4%-3.4%

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 based on future cash flows and its price relative to the stock market?

23%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

RioCan Real Estate Investment Trust's share price is below the future cash flow value, and at a moderate discount (> 20%).

RioCan Real Estate Investment Trust's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

RioCan Real Estate Investment Trust is overvalued based on earnings compared to the CA REITs industry average.

RioCan Real Estate Investment Trust is good value based on earnings compared to the Canada market.


Price Based on Expected Growth

Unable to calculate PEG ratio for RioCan Real Estate Investment Trust, we can't assess if its growth is good value.


Price Based on Value of Assets

RioCan Real Estate Investment Trust is good value based on assets compared to the CA REITs industry average.


Next Steps

Future Growth

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

6.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

RioCan Real Estate Investment Trust's revenue is expected to decrease over the next 1-3 years, this is not considered high growth.

RioCan Real Estate Investment Trust's earnings are expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).

RioCan Real Estate Investment Trust's revenues are expected to decrease over the next 1-3 years, this is below the Canada market average.

RioCan Real Estate Investment Trust's earnings growth is positive but not above the Canada market average.

RioCan Real Estate Investment Trust's earnings growth is expected to exceed the low risk savings rate of 1.9%.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if RioCan Real Estate Investment Trust will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


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

RioCan Real Estate Investment Trust's year on year earnings growth rate has been positive over the past 5 years.

RioCan Real Estate Investment Trust's 1-year earnings growth exceeds its 5-year average (13.7% vs 8.2%)

RioCan Real Estate Investment Trust's earnings growth has exceeded the CA REITs industry average in the past year (13.7% vs 12.4%).


Return on Equity

RioCan Real Estate Investment Trust has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).


Return on Assets

RioCan Real Estate Investment Trust used its assets less efficiently than the CA REITs industry average last year based on Return on Assets.


Return on Capital Employed

RioCan Real Estate Investment Trust has improved its use of capital last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is RioCan Real Estate Investment Trust's financial position?


Financial Position Analysis

RioCan Real Estate Investment Trust's short term (1 year) commitments are greater than its holdings of cash and other short term assets.

RioCan Real Estate Investment Trust's long term commitments exceed its cash and other short term assets.


Debt to Equity History and Analysis

RioCan Real Estate Investment Trust's level of debt (79.6%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has been reduced over the past 5 years (82.9% vs 79.6% today).

Debt is not well covered by operating cash flow (6.3%, less than 20% of total debt).

Interest payments on debt are well covered by earnings (EBIT is 4x coverage).


Balance Sheet

High level of physical assets or inventory.

Debt is not covered by short term assets, assets are 0.1x debt.


Next Steps

Dividend

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

5.45%

Expected Dividend Yield


Upcoming Dividend Payment

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


Dividend Yield and Payments Analysis

RioCan Real Estate Investment Trust's pays a higher dividend yield than the bottom 25% of dividend payers in Canada (2.04%).

RioCan Real Estate Investment Trust's dividend is below the markets top 25% of dividend payers in Canada (5.98%).

Dividends per share have been stable in the past 10 years.

Dividends per share have increased over the past 10 years.


Current Payout to Shareholders

Dividends paid are covered by earnings (1.3x coverage).


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


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?

1.9yrs

Average management tenure


CEO

Ed Sonshine (72yo)

26.6yrs

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

Ed's remuneration is about average for companies of similar size in Canada.

Ed's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.9yrs

Average Tenure

The average tenure for the RioCan Real Estate Investment Trust management team is less than 2 years, this suggests a new team.


Board Age and Tenure

8.3yrs

Average Tenure

66yo

Average Age

The tenure for the RioCan Real Estate Investment Trust board of directors is about average.


Insider Trading

RioCan Real Estate Investment Trust individual insiders have sold more shares than they have bought in the past 3 months.


Recent Insider Transactions

SellCA$3,15914 Aug 19
Sharon Sallows
EntityIndividual
Role
Member of the Board of Directors
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
Role
Investment Professional
Senior Vice President of Asset Management
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
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
Shares1,375
Max PriceCA$24.34
BuyCA$17,75302 Nov 18
Richard Dansereau
EntityIndividual
Role
Member of the Board of Directors
Shares745
Max PriceCA$23.83
SellCA$2,89402 Nov 18
Sharon Sallows
EntityIndividual
Role
Member of the Board of Directors
Shares120
Max PriceCA$24.12

Ownership Breakdown


Management Team

  • Ed Sonshine (72yo)

    CEO & Trustee

    • Tenure: 26.6yrs
    • Compensation: CA$6.71m
  • Jeff Ross

    Senior Vice President of Leasing & Tenant Coordination

    • Tenure: 11.6yrs
    • Compensation: CA$1.36m
  • Sandra Levy

    Vice President of Human Resources

    • Tenure: 1.0yrs
  • John Ballantyne

    Senior Vice President of Asset Management

    • Tenure: 0.0yrs
    • Compensation: CA$1.35m
  • Qi Tang

    Senior VP & CFO

    • Tenure: 2.3yrs
    • Compensation: CA$1.20m
  • Jonathan Gitlin

    President & COO

    • Tenure: 0.4yrs
    • Compensation: CA$1.50m
  • Christian Green

    Assistant Vice President of Investor Relations & Compliance

    • Tenure: 0.0yrs
  • Terri Andrianopoulos

    Vice President of Corporate Marketing & Communications

    • Tenure: 1.8yrs
  • Jennifer Suess

    Senior VP

    • Tenure: 2.0yrs
  • Ryan Donkers

    Vice President of Investments

    • Tenure: 1.1yrs

Board Members

  • Siim Vanaselja (62yo)

    • Tenure: 2.3yrs
    • Compensation: CA$207.00k
  • Ed Sonshine (72yo)

    CEO & Trustee

    • Tenure: 26.6yrs
    • Compensation: CA$6.71m
  • Chuck Winograd (71yo)

    • Tenure: 10.5yrs
    • Compensation: CA$198.50k
  • Dale Lastman (61yo)

    • Tenure: 15.2yrs
    • Compensation: CA$176.50k
  • Paul Godfrey (80yo)

    Chairman of the Board

    • Tenure: 0.0yrs
    • Compensation: CA$375.00k
  • Sharon Sallows (70yo)

    • Tenure: 20.2yrs
    • Compensation: CA$214.00k
  • Richard Dansereau (58yo)

    • Tenure: 1.3yrs
    • Compensation: CA$164.50k
  • Bonnie Brooks (66yo)

    • Tenure: 6.2yrs
    • Compensation: CA$188.50k
  • S. Marshall (62yo)

    Independent Trustee

    • Tenure: 4.2yrs
    • 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$8.053b
  • Shares outstanding: 304.91m
  • 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 $14.1 billion as at March 31, 2019. RioCan owns, manages and develops retail-focused, increasi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/18 23:45
End of Day Share Price2019/08/16 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.