RioCan Real Estate Investment Trust T.REI.UN

We touched an 18 month high today

[materialsgirl]

Within one year we may see an increased payout.
$25 is my short term target and then in a year or so 
we move on to $28.
The only real risk is that interest rates rise by more than 
1%

mat

[bttmfischer]

Would you tell us, what your $25 price of REI.UN is based on? The interest rate is a tricky one. The Government desperate to keep if insanely low, so they can borrow at those percentages. The piper however, will have to be paid, eventually, I fear.

[materialsgirl]

$25 share price is based on ***  ~5 times FFO ***  ~100% of NAV based on a cap rate of 5.5% *** zero value for excess land whichis not permitted for construction *** recently acquired land valued at the price which was paid. Sadly, hidden gems such as "free land" for use in 5 to 15 years  gets no value from investors. For very long term investors it will be an invisible

[bttmfischer]

Thank you for this. I noticed that the effects of rising interest rates in the next few years is not  included in your forecast.  Would you let us know what influence of the higher interest rates wil be on REI.UN in your opinion?

[canadian]

Riocan was trading around 26 when BoC interest rates were at 1.5.

[bttmfischer]

Yes, I know. I held REI.UN for years, but I suspect tha the rates wil be well above 1.5% in a couple years.

[Mousernan]

What a booby prize, 18 month high. Other stocks have doubled in the same time period. 

[maplenorth]

12 to 23 is pretty close to a double