TSX:REI.UN - Post by User
Post by Jamested84on Mar 31, 2025 7:52am
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Post# 36516105
TD target now at $22.00
TD target now at $22.00SLIGHTLY NEGATIVE (but seen as MORE than priced-in)
With an absolute and relative valuation near historical lows, we see now as a compelling time to add exposure to RioCan.
The 10% drop in RioCan's unit price since HBC's CCAA filing exceeds our 4% estimate reductions
We expect NAV creation at the three HBC spaces in Oakville Place, Georgian Mall, and Tanger Outlets Ottawa, but we have held off from including this...
Though we see a high likelihood of RioCan backfilling the three HBC spaces in Oakville Place, Georgian Mall, and Tanger Outlets Ottawa at meaningfully higher rents, for now, we have held off from including this in our forecasts.
Valuation. At 11.7x P/FTM AFFO, RioCan's trading valuation is both near the COVID-low of ~10.5x and close to its lowest relative valuations vs. peers.