RioCan settles with Target

Article Excerpt

RIOCAN REAL ESTATE INVESTMENT TRUST $24.99 (Toronto symbol REI.UN; Units outstanding: 319.9 million; Market cap: $8.2 billion; TSINetwork Rating: Average; Dividend yield: 5.5%; www.riocan.com) has settled its dispute with U.S.-based department store chain Target (New York symbol TGT). In April 2015, Target closed all 133 of its Canadian stores, including 26 in RioCan’s malls. So far, the trust has found new tenants for seven of these stores. It will have to remodel the other 19, but it expects to have them rented by the end of 2017. Target has now paid $132 million in compensation. Of that total, $92 million went to RioCan and $40 million went to its partners in some of these malls. RioCan is a buy. buy…