Topic: How To Invest

RIOCAN REAL ESTATE INVESTMENT TRUST $27.87 – Toronto symbol REI.UN

RIOCAN REAL ESTATE INVESTMENT TRUST $27.87 (Toronto symbol REI.UN; Units outstanding: 285.0 million; Market cap: $8.0 billion; TSINetwork Rating: Average; Dividend yield: 5.0%; www.riocan.com) planned to spend $600 million on acquisitions in 2012. That’s equal to 8% of its $7.9-billion market cap. The trust spent $1 billion on acquisitions in 2011.

However, RioCan will likely spend less than it planned this year, due to the rising cost of properties in Canada’s big cities. Instead, the trust plans to upgrade its existing malls. Right now, it is focusing on projects in Toronto and Calgary.

The trust continues to pay monthly distributions of $0.115 a unit, for a 5.0% annualized yield. In light of its improving outlook, RioCan aims to raise its payout in 2013.

RioCan is a buy.

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