RioCan Real Estate Investment Trust T.REI.UN

Time to Reload Here

[Frankie10]

I may be early, but I like Riocan here. And I'll certainly like it lower. Developments continue to come online.

[Mirko22]

It appears Doug Ford may consider lockdown early Nov. That would be painful for all sectors in particular REITS

[Frankie10]

Lockdown would impact retail more than any other REIT sector. Office is already beaten down, conversely there is a lot of air left in public retail valuations should this madness actually become reality.

[SNAKEYBOY]

LOL LOCKDOWNS yeah ok.  Rates would need to drop back to 0% if government did any of that shennanigans

[hroark7]

1. Lockdowns are not happening. The government lost the trust of the public. 2. Read this: https://renx.ca/tal-bank-of-canada-high-interest-rates-worsen-inflation Relevant quote: Given cost escalations and lengthy municipal approval processes, Robins said the cost of building new retail space significantly exceeds the value of existing space. The opportunity costs of tenants looking to

[Frankie10]

Minto published that their implied value on a per unit basis is 36% below the replacement cost of the same units - on average. Market is forward looking. Replacement cost is a meaningful metric, but replacement cost plunges during a recession as input costs sink. Regardless, this is a generational buying opportunity in my humble opinionfor those with the stomach to buy and hold. I hold this as

[hroark7]

I can understand if you want quality REITs to be holding FCR and REI. But why would you buy a piece of poop like SRU? That's a terrible company with low quality properties compred to FCR/REI and they are getting shareholder value vacuumed away by Walmart paying way below market rents.

[Frankie10]

Relative value vs retail peers, development pipeline, and I personally like Vaughan... I sold all my SmartCentres at $29-30... at $24, I like a little exposure. I think it's well run, albeit you make a good point regarding Walmart % of GLA vs. % of total revenue. Would you be able to expand on the quality difference? Is it purely location or are there other factors you're looking at

[hroark7]

Hi Frankie, The problem with SRU vs. REI or FCR which are in the same industry is the average rent $ per sq ft.   SRU on the surface looks great because Walmart is a huge tenant. But when you look at SRU's average rent per square foot, it is half of REI and FCR. Also when you realize that 2 Walmart execs sit on SRU's board, it's clear as day that Walmart is

[Frankie10]

Hi, I hope you had a nice weekend. Thank you very much for the thoughtful response. Although I see things differently with regard to SmartCentre, we are clearly aligned on Riocan and FCR. That said, I haven't poured more than 100 hours into SmartCentres as I have other REITs so forgive me if I am mistaken in responses to your points - see below. Walmart as a tenant has both

[Sunsurfer12]

and youre missing the term of the Wal Mart leases..think theyre 50 or even 100 year terms..no rent reset