RioCan Real Estate Investment Trust T.REI.UN

Alternate Symbol(s): RIOCF

RioCan Real Estate Investment Trust is a Canada-based real estate investment trust. The Company owns, manages, and develops retail-focused mixed-use properties. Its portfolio includes leasing, development, and residential. The Company’s properties are held by various tenants, such as grocery, pharmacy, liquor, personal services, and specialty and value retailers. The Company’s portfolio is comprised of approximately 192 properties with an aggregate net leasable area of approximately 33.6 million square feet, including office, residential rental and 10 development properties. Its properties include 1293 Bloor Street West, 145 Woodbridge Avenue, 1556 Bank Street, 1650 - 1660 Carling Avenue, 1860 Bayview, 1910 Bank St, 1946 Robertson Road, 2323 Yonge Street, 2329 Yonge Street, 2335 Boul Lapiniere, 2345 Yonge Street, 2422 Fairview Street, 2453 Yonge Street, 279 Rue St. Charles, 2950 Carling Avenue, and 2955 Bloor Street West.

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RioCan Real Estate Investment Trust > why is RioCAN divesting some of their BRAND NEW APT BUILDS?

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Comment by gasholeon Aug 14, 2021 7:40am

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Post# 33705797

RE:why is RioCAN divesting some of their BRAND NEW APT BUILDS?

There is controvercy over this, but if you think about it, it makes sense.. Apartements have a low cap rate, so they cost a lot, take a lot of time to build, and take a long time to recover the money invested. If they can spend 50 million building a high rise (just a number I am using not acutal cost), and they can sell it for 80 million and realize a 30 million gain right away, and then take the money and turn it into 2 more properties, this is better than waiting 20 years to get your investment back (again just a number it may or may not take 20 years), so I believe this is what they are doing. Making a fast profit on some properties. --- capital recycling.

The concept of capital recycling seems to have been borrowed from property portfolio management where proceeds from sales of some properties in a portfolio are used to finance purchases of new properties, similar to how share investors might rebalance a share portfolio without adding additional financing

Chefboy69 wrote: so for anyone that knows riocan, for the past 3-4 years they have been "trying" their hand at purpose built apt rentals.

But more recently they have been selling 50% stakes in these buildings that they owned 100% of?
why??

is it for new projects? or are they finding out that apartement buildings are very costly to run.
The building that i worked at eCentral.
https://renx.ca/riocan-sell-50-stake-ecentral-eplace-rhythm-woodbourne/

has a HUGE resident turnover rate. 70% of the building's residents no longer live there anymore,
cost, building issues and constant construction drives them away,
the cost to repair these units and to replace they broken items. Fridges/ Stoves, washer dryer.
and the cheap building materials( which now they are finding out) has become very costly
TOO COSTLY..

so they are selling to recover some money.
They just sold half of 3 more

here read this..https://renx.ca/bgo-buy-50-stake-3-riocan-gta-retail-apartment-property/

WHY???