RioCan is a great pick for reliable income

Article Excerpt

Shopping mall operator RioCan REIT cut its monthly distribution by 33.3% in February 2021 as retailers shut down due to the COVID-19 pandemic. As the restrictions eased, the trust has resumed annual distribution increases. Investors should also benefit from RioCan’s high-quality tenants and rising cash flow. RIOCAN REAL ESTATE INVESTMENT TRUST $19 is a buy. The REIT (Toronto symbol REI.UN; Aggressive Growth Portfolio, Manufacturing & Industry sector; Units outstanding: 300.5 million; Market cap: $5.7 billion; Price-to-sales ratio: 4.5; Distribution yield: 6.1%; TSINetwork Rating: Average; www.riocan.com) owns all or part of 178 shopping centres and mixed-use properties with a net leasable area of 32.2 million square feet. Its occupancy rate is a high 98.0%. Retail properties provide 85% of RioCan’s rental revenue, followed by office (11%) and residential (4%). Its biggest tenants (as of December 31, 2024) were Canadian Tire (4.3% of annualized rental revenue); TJX Companies, which operates the Winners and Marshalls chains (4.2%); Loblaw/Shoppers Drug Mart (4.1%); Cineplex (2.7%); and Metro/Jean Coutu (2.6%). Note—Department store operator…