RioCan soars despite closures

Article Excerpt

RIOCAN REIT $30.05 (Toronto symbol REI.UN; Units outstanding: 315.8 million; Market cap: $9.5 billion; TSINetwork Rating: Average; Dividend yield: 4.7%; www.riocan.com) continues to hit new all-time highs, even with the closure of the Future Shop chain. Electronics retailer Best Buy (New York symbol BBY) recently closed 66 of its 131 Future Shop outlets in Canada and will convert the remaining 65 to Best Buy stores. There are only 10 Future Shops in RioCan’s malls, so these closures and conversions should have little impact on its results. Combined, 32 Best Buy and Future Shop stores rent space from RioCan, accounting for just 1.5% of its 2014 rental revenue. Loblaws and its Shoppers Drug Mart chain are the trust’s biggest tenants at 4.9%, followed by Canadian Tire at 4.3% and Wal-Mart at 4.0%. RioCan REIT is a buy. buy. …