RioCan Real Estate Investment Trust T.REI.UN

Covid I inside

[CANCDN]

• Mitchell Goldhar founded real estate firm SmartCentres in the early 1990s, then developed more than 265 shopping centers in the ensuing two decades.
• In May 2015, he sold most of SmartCentre's assets to SmartREIT (formerly Calloway REIT), for about $880 million in shares, cash and assumed debt.
• Goldhar, who chairs SmartREIT, also owns various developments across Canada through his private company Penguin Investments.
• This includes a stake, along with SmartREIT, in the Vaughan Metropolitan Centre, a 100-acre master planned development north of Toronto.

penguin is his privately owned company where he skims off the deals. 

also pg160 of 2020 annual report 
 

Penguin Services Agreement

The amended and restated services agreement entered into on November 5, 2020 (the “Penguin Services Agreement”), and effective from February 2018 reflects the additional services provided by Penguin since that time. Under the agreement, Penguin provides specified services to the Trust in connection with the development of its projects. In return for those services, Penguin is entitled to receive: (i) a fixed quarterly fee of $1,000 (subject to inflation-related increments after 2018) and (ii) an annual variable fee between $1,500 and $3,500 (also inflation-adjusted after 2018) that is based on the achievement of the Trust-level targets for “New Development Initiatives” and “New Projects” that the Trust uses to measure the performance of its executive officers and other annual targets (other than such Trust-level targets) of a similar nature that the Trust uses to measure the performance of its executive officers as determined by the Board of Trustees from time to time.

Non-Competition Agreement

A new non-competition agreement with Penguin replaces and supersedes the previous non-competition agreement extending the term by 5 years and broadening restricted competing initiatives to include various forms of mixed-use development.

 

that's odd... you have non competition agreements with yourself?

[CANCDN]

  $10+.7B IN TOTAL ASSETS $13.5B REIT “PROJECT 512”: TRANSFORMATION PLAN -FOCUSED INITIATIVES APARTMENTS | CONDOS | TOWNS | SENIORS’ RESIDENCES  REIT SHARE $7.9B see the part REIT SHARE. That is SRU investment. now the value created by that 7.9 b investment: $3.2B to $3.6B potential value creation from the 284 intensification projects (REIT share $1.6B - $2.0B)

[gashole]

I dont want to ignore you, please post on the SRU board only there are NO REI comments here in your SRU post. I find this annoying. I go on the SRU board for SRU posts I dont want to see this here.

[CANCDN]

Put me on ignore then 

[my2pennies]

So what exactly is the point to this thread????? I own significant quantities of both SRU and REI for several years now. Although in hindsite, I wish I had just bought SRU, but I just didn't want to see to put that many eggs in one basket.

[CANCDN]

Why is that? From 2013 SRU went from 8$ sqft FFO to 10$. RioCan went from 9$ sqft to 16.20$ FFO during the same time ... ohh right, you just read the management presentations. Smoothbrisns don't understand what divestment is and respostioning. Let's see how the next 5 years. REI is going to drastically put perform SRU now that RIOCan has almost excited secondary markets, while SRU keeps

[my2pennies]

Why is that you ask? It's because my SRU investment has significantly out performed my REI investment when I look at the total return. (I purchased 20,000 shares of each in June of 2015). I've been told constantly over the last 6 years that REI is a better investment that SRU, but it never seems to pan out that way. Anyways, I continue to hold 20k share of each.

[hroark7]

20k lol

[my2pennies]

I wish I had more money to buy more back then, but for me 20k of each shares was an absolutely HUGE investment. Some of us don't have multli-millions to invest.

[materialsgirl]

Over the past 5 years SRU is down about 17% and REI is down about 25% The charts followed a very similar pathway. I did not check the monthly payout However  REI underperformance is modest at best 20.000 shares? I bet he is being modest and has 50,000 shares or units Mat

[hroark7]

50k shares lol

[CANCDN]

yeah, dumping 40% of your NLA over 5 years will defiantly cause you to lag. Not sure why SRU would be down other than the secondary market focus.  

[my2pennies]

Hi Mat, yeah they followed a similar path so that was my original logic for buying equal amounts of each (a small attempt to diversify). The accumulated monthly payout was indeed higher on SRU since 2015. I did temporarily (for a about 6 months) divest myself of each in 2016 when I got completely spooked at how fast each of them appreciated in value (it just didn't make any sense to me at the

[gashole]

If we are talking and comparing both and not just bashing, I think SRU will do fine going forward, I believe REI will do well with the WELL in particular... and NAV will be revalued higher in the future, I dont think SRU is going over $35 a share within 3 years, but REI could be $30... So as far as capital gains go REI will likely be the winner. I own both. Most of my money is in HR which I think

[CANCDN]

I never said anything about past performance. I just telling you RioCan is going to significantly out performed SRU going forward. When one is selling off 27 million NLA of secondary space, yes, they won't have the same FFO growth and someone's who is buying  secondary market space. Look under the hood. RioCan is just about done divestments and has 50% higher FFO per sqft of soace