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Investment Q&A

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RioCan Real Estate Investment Trust (REI.UN $22.02)
- $22.02 P/E (TTM): 96.17X Cap: $6.33B
- View REI.UN Profile
- View Questions on REI.UN
SmartCentres Real Estate Investment Trust (SRU.UN $28.55)
- $28.55 P/E (TTM): 35.85X Cap: $5.06B
- View SRU.UN Profile
- View Questions on SRU.UN

Q: Hello 5i Team,
Between RioCan and SmartCentres, which would you prefer for an income portfolio? SRU pays a larger dividend, but is there any additional risk with it compared to RioCan?
How do the payout ratios and balance sheets compare?
Many thanks,
Brian

Asked by Brian on May 08, 2026

5i Research Answer:

REI is much larger but also more expensive than SRU on most metrics. SRU's payout ratio against operating cash flow is 108%. REI's is 79% and this would be the main additional risk to SRU. REI does have more debt, about 17x cash flow versus 14x for SRU.

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