RioCan REIT still a buy — trading at ~10× FFO and ~26% discount to NAV

The RioCan Real Estate Investment Trust (REI.UN / OTCPK: RIOCF) remains a compelling buy, trading at under 10× 2025 FFO — well below peer average and currently delivering a hefty ~6.3% yield. Despite healthy growth in net operating income (NOI) and funds‑from‑operations (FFO), a 97.8% occupancy rate, and strong leasing spreads from its necessity‑based retail anchors, RioCan is still valued at a ~26% discount relative to its net asset value (NAV) of C$24.90 per unit. Management’s strategy is clear: exit non‑core residential rentals, refocus on core retail properties, and push for 3.5–5% annual growth in FFO per unit — underpinned by contractual rent escalations and market‑driven rent increases. With leverage decreasing and a disciplined capital‑recycling program (C$1.3–1.4 billion) aimed at reinvesting into high‑quality retail assets, RioCan appears financially well‑positioned for sustained growth. Of course — as with any REIT — risks remain: adverse refinancing conditions from higher interest rates or a slowdown in Canadian immigration could dampen organic rent growth. #RioCan #RealEstate #REIT #ValueInvesting #SlimScan #GrowthStocks #CANSLIM