TSX:REI.UN - Post by User
Comment by
baudelaireon Feb 13, 2006 4:35pm
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Post# 10359465
RE: Riocan...joint venture(500 mil.)
RE: Riocan...joint venture(500 mil.)This is good news but I wonder how much of the earnings from these relatively short-lived ventures ("...dispose of these assets over a period of five years.") will trickle into RDI as calculated by Riocan. The sustainability of the distributable income coming from the ancillary businesses is questionable, IMO. I remember the crappy results that O&Y REIT got from its acquisition of O&Y Enterprise. Something more like the Brookfield asset management model where all parties are long-term investors in the real estate would be preferable. Although Riocan is likely putting up the smallest investment of the partners, the leverage and a possible "Peak Retail" (LOL) event on the horizon make me a little nervous.
OT-IIRC, last quarterly report Riocan declared a loss on the Retrocom sale.
OT-BMO Retail conference Roundtable 2 (the one w/ Goldhar) is worth a listen. IIRC, Mitch guessed that 20 million sqft of retail would go up this year in Canada. First Pro puts up a new big box (or was it centre?) every four weeks.