-- 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).