With a capitalization of $8.56 billion and an enterprise value of around $15 billion as of the end of September 2016, RioCan owns in excess of 300 properties for retail and commercial businesses. At least 15 more are being developed at present, including the King Portland Centre in Toronto.
“RioCan REIT and Allied Properties REIT are developing a project for Indigo Books & Music amounting to more than 78,000 square feet of gross leasable area (GLA) in the new office. The new structure will be made up of about 256,173 square feet of office GLA and 13,035 square feet of retail GLA as well as 116 rental residential units,” The Motley Fool Canada explained in its analysis.
Another attractive aspect of the REIT is its continuous lowering of its debt, as well as its recent announcement of a public offering.
“RioCan REIT is issuing out $300 million of its Series Y senior unsecured debentures, which carry a coupon rate of 2.83% and will mature on October 3, 2022. These were sold at a price of $99.997 per $100 principal amount with a strong yield of 2.831% if held until mature.”
Over the past 12 months, shares have gone up 12.21 per cent.
Amid a turbulent global economy and national real estate market, a safe bet for dividend hunters would be RioCan Real Estate Investment Trust (TSX:REI.UN), which expanded its occupancy rate by 2.1 per cent year-over-year (up to 95.3 per cent) in Q3 2016.