RE:RE:Sell me RioCan
materialsgirl wrote: Lacas24.
I intuit that you are just clowning around. As always, the things
to look for are;
1 intrinsic strength of properties and tenants
2. The balance sheet
3 development and nature of newly built assets
4 The share price as compared to NAV
This factor is huge.
Riocan has a massive development pipeline where the
NAV of each new asset will rise by ~30% immediately
upon completion.
This happens if the land is free (already exists) and when
the REIT participates in the construction profits.
The development pipeline includes condo residences which will be sold at a profit and ~ 10,000 multi-res rental apartments. They already have 2,000 or 3,000 rental apartments. This expansion into multi-res will shift the nature of RIOCAN in a major good way.
The negative side is that enclosed malls are in bad shape until 6 months after a vaccine is approved. Retailers that sell fashion goods are in trouble. Fashion outlets situated in the middle of an enclosed mall are hopelessly challenged in many cased.
Nonetheless, we will get a spring back at the end of Spring 2020 if there is an effective vaccine.
$22 a share will happen very quickly.
mat
Matt,
Have to disagree about enclosed malls. Some malls are in bad shape and were pre covid. What is happening is consolidation into the higher sales per sq ft malls. One mall per 100,000 150,000 people seems to the realistic average. The days of a mall for every 50,000 is gone. This will drive traffic to the survivors.
Selling appearal at a mall is much cheaper than online. This was confirmed by all retailers including Nike, Lululelom, Vans, Addidas, L brands etc. They want to drive retail to physical store. Brick and Mortar lease costs cents vs $10 for ship to home per product.
Omni channel is new normal and retailers want online order, pickup in store. This is the most profitable route period.