Topic: How To Invest

Dividend Advisor Hotline – Friday, October 13, 2017

Article Excerpt

RIOCAN REAL ESTATE INVESTMENT TRUST, $24.92, Toronto symbol REI.UN, owns all or part of 299 shopping centres in Canada. That includes 15 properties now under development. Investors receive a monthly distribution of $0.1175 per unit for an annual rate of $1.41. It yields a high 5.7%. As part of its strategy to focus on six major urban markets—Toronto, Montreal, Ottawa, Calgary, Edmonton and Vancouver—RioCan plans to sell about 100 of its properties in smaller cities over the next two to three years. In all, the trust expects those sales will generate $1.5 billion (net of transactions costs). That’s equal to 19% of its $8.1 billion market cap (the total value of all units outstanding). It plans to use about half of the proceeds to buy back units. In addition, RioCan will suspend its distribution reinvestment plan effective November 1, 2017. The remaining cash will also support RioCan’s plan to spend $300 million to $400 million a year on new projects in its six main…