CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:
We increase our 12-month target price on shares of REI.UN by $1 to $23, applying a forward P/FFO multiple of 14.1x our 2026 FFO estimate, a premium to the three-year forward average of 10.4x. We lower our 2026 FFO estimate by $0.05 to $1.63 and lower 2027 by $0.02 to $1.70. Risks from the capital recycling plan have decreased as RioCan has now completed 80% ($1.04B) of planned sales are under contract. Execution risks now shift towards RioCan successfully deploying proceeds into accretive acquisitions, with management targeting a 9% unlevered IRR. RioCan's core portfolio operating at peak occupancy provides less opportunity to benefit from the historically strong re-leasing trends seen in Q1 at 25.8% Y/Y, with a 58.5% increase on new leases specifically. We continue to believe RioCan is well positioned to develop and grow grocery-anchored properties, but it faces near-term refinancing headwinds impacting FFO.