$REI.UN

3 stories mentioning REI.UNUpdated 45d ago

Every FINWIRES story that references REI.UN, newest first.

Research Alert: CFRA Keeps Hold Opinion On Shares Of Riocan Real Estate Investment Trust

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.

$REI.UN

Research51d ago

Research Alert: Riocan Real Estate Investment Trust Q1: New Lease Growth Accelerates To 59% Y/y

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:RioCan reported Q1 rental revenue of $308M (+3.9% Y/Y) with Commercial Same Property NOI rising 4.7% Y/Y to $156M, driven by contractual rent steps and positive renewal spreads. Core FFO was $0.39 per unit, flat Y/Y but $0.03 below consensus, as NOI growth and unit buybacks offset asset dispositions and higher interest expense. The quarter showcased exceptional leasing momentum with record spreads of 58.5% on new leases and 20.1% on renewals, highlighting significant embedded mark-to-market opportunities with retail committed occupancy at near-full 98.6%. Management reaffirmed 2026 Core FFO guidance of $1.60-$1.62 per share, representing over 3.5% CAGR through 2028. RioCan continued strategic capital recycling, completing $47M in residential dispositions while acquiring $145M in retail properties (Georgian Mall, Oakville Place), with total capital repatriation reaching $705M closed ($1.04B proforma) toward the $1.3B target.

$REI.UN

Research65d ago

Research Alert: CFRA Initiates Coverage On Riocan Real Estate Investment Trust With A Hold View

CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:We initiate coverage on shares of REI.UN with a 12-month target price of $22, applying a forward P/FFO multiple of 13.1x to our 2026 FFO estimate, a premium to the three-year forward average of 10.4x. We start our 2026 FFO per share estimate at $1.68 and 2027 at $1.72. We have an overall positive view on REI as it has pivoted to a pure-play necessity retail REIT after exiting all residential assets, but believe it already trades at a premium that reflects this transition. REI has near-record occupancy and strong re-leasing spreads over 15%, but is unable to grow NOI faster than 3.5% in the near term due to accelerating interest expense growth related to refinancing near-term obligations from low rates through 2027. REI's grocery-anchor focus (85% of centers, targeting 90%) and concentration in Canada's high-demographic major markets (277K population, $155K income within 5km) should provide strong cash flow that enables management to further pay down debt (currently at 8.6x net debt to adjusted EBITDA).

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