Topic: Dividend Stocks

RIOCAN REAL ESTATE INVESTMENT TRUST $26 – Toronto symbol REI.UN

RIOCAN REAL ESTATE INVESTMENT TRUST $26 (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 318.3 million; Market cap: $8.3 billion; Price-to-sales ratio: 6.5; Dividend yield: 5.4%; TSINetwork Rating: Average; www.riocan.com) has found new tenants for seven of the 26 former Target stores in its malls. It will have to remodel the remaining 19, but it expects to lease them all within the next two years.

Target’s U.S. parent company guaranteed the leases on the Canadian stores, but it has not yet paid RioCan the lost rental payments. If RioCan is unable to find new tenants, Target may have to pay the trust up to $250 million.

RioCan is a buy.

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