RE:RE:RE:RE:RE:RIOCAN VERSUS BPYI own both the stocks because both are value plays in my opinion. Therefore, let me put out some broad measures to compare BPY and Riocan and then you can decide which one to own or to put new capital.
BPY (Reward)
- higher yield ( still yielding over 12%, which is more than the yield on Riocan)
- relatively safer yield because of the backing of BAM - the best capital allocator on planet
- more access to liquidity and capital to take advantage of downturn (again because of BAM and business model to focus on value creation)
- diversified across geograhies and own best of real estates across the world ( minimizes country specific risks)
- best management team in the business (ex- BAM offer to buy 74 miillion shares worth $1B, $5B for retail vitalization plan and many more . compare this with other REITs that will delay projects because of lack of capital)
- dividend is paid in USD minimizes currency risk ( possibility of weaker CAD in near to medium term because of large deficit , highly leveraged households and commerical debt)
- better growth prospects in future because of access to deals all over the world including emerging markets such as India
- downward protection because of BAM offer to buyback shares at $12USD
BPY (Risks)
- Possibility of BAM taking it to private ( quick upside for some of us who got in last 4-6 months but not for long term shareholders)
- short term headwinds such as low rent collection , covid situation worsening in USA etc
Riocan (Rewards)
- experienced and long term CEO but questions around second level of leadership
- major market focus in Canada ( could be risk as well depending on how you see it -> housing market downturn in canada . it is due for a long time and will happen sometime in future)
Riocan (Risks)
- relatively limited potential for dividend growth
- shift on residential from retail is relatively new and some risks around execution
- relatively higher focus on retail which is facing headwinds in view of shift to online
- more downside if covid situation persists
If I am putting new capital to work , I would pick BPY over Riocan because of above reasons. There may be so many other reasons why you would like to go with Riocan (ex - you are more exposed to US equities or US market and like exposure to canadian ). There is nothting right or wrong here . go with what your like and enjoy the ride :)