RioCan Real Estate Investment Trust T.REI.UN

RE:RE:they sold ePalace and eCentral? what a bad move

[Covidruinedme]

first of all you are talking about one of the best location in the whole Canada with no more lots for development, we arent talking about a ghetto area. The cap rate is misleading, they are getting the 7% cap rate from the pre covid rent against the cost of the property and comparing it to the caprate thst get from post covid rent which is down around 15% to against the cost of the property pre covid. See how its misleading? Second, buying rentals using debt is the whole concept of REIT. The debt gets paid off while the property keeps giving indefinitely ever wonder why car.un rev growth is so much higher ? Third the debt is cheap now, you want to have debt not the other way around So far they keep promising getting into residential big time but they keep changing their mind and sell the rentals. That's why the shares are so cheap compare to other REITs. The managment is untrustworthy they cant stick with the plan and are too cocky with short term view to get into residential. That's my friend, is called uncertainty and market doesnt like that. Look how car.un , Sru.un etc etc have such a predictable and consistent rev growth the look at riocan. Their annual rev for the past few years are all over place