Toys R Us has little impact

Article Excerpt

RIOCAN REAL ESTATE INVESTMENT TRUST $23.50 (Toronto symbol REI.UN; Units outstanding: 322.7 million; Market cap: $7.5 billion; TSINetwork Rating: Average; Dividend yield: 6.1%; www.riocan.com) owns all or part of 289 shopping centres in Canada. That includes 17 properties now under development. Bankrupt retailer Toys R Us recently announced that it would close all of its stores in the U.S. and U.K. It also plans to sell its Canadian and other international operations. Even if Toys R Us closes its 82 Canadian outlets, that would have little impact on RioCan. Just two of those stores are in the trust’s malls. As well, both of those are in prime locations that would easily attract new tenants. This includes the Toys R Us location at the Yonge and Eglinton Centre in Toronto. RioCan should also benefit from its strategy to focus on six major urban markets: Toronto, Montreal, Ottawa, Calgary, Edmonton and Vancouver. Its plan to add more residential and office space to its shopping centres also…