Q: Hi All at 5i!
I have held on to Riocan for a long time. I am underwater with the stock but with the dividends I have received, the stock has paid for itself. Is it time to move on or do you foresee good prospects for a recovery?
Cheers,
Tamara
I have held on to Riocan for a long time. I am underwater with the stock but with the dividends I have received, the stock has paid for itself. Is it time to move on or do you foresee good prospects for a recovery?
Cheers,
Tamara
5i Research Answer:
We are comfortable moving on from REI.UN. The REIT's focus on the commercial and retail space makes it more sensitive to rates and economic conditions. It does have quite high debt - even for a REIT at $6.9B. With rates stablizing this will partially help REI.UN, however rates are still very high which should continue to create pressures. We think there are better options out there and we like the potential in the industrial REITs space with a suggestion being DIR.UN.