RioCan grows in key areas

Article Excerpt

RIOCAN REAL ESTATE INVESTMENT TRUST $26.02 (Toronto symbol REI.UN; Units outstanding: 303.8 million; Market cap: $7.9 billion; TSINetwork Rating: Average; Dividend yield: 5.5%; www.riocan.com) owns all or part of 230 shopping centres and other properties across Canada. They include 14 projects now under development. In response to slowing customer traffic and online shopping, the REIT keeps adding office and residential space to its retail properties. It is now building 2,300 residential units, and will add 2,000 more by 2021. That’s just the start: over the next few years, it plans to have 10,000 residential properties at its top locations. Meanwhile, RioCan has agreed to buy Kingsett Capital’s 50% interest in Toronto’s Yonge Sheppard Centre for $331 million. This urban mixed-use property has a well-diversified revenue stream, with almost one million square feet of residential, retail, and office space. As part of the transaction, Kingsett will buy $100 million in RioCan units. RioCan REIT is a top pick for 2019. 2019…