Is Riocan stock a buy right now?
As of May 2025, RioCan Real Estate Investment Trust (TSX: REI.UN) trades at approximately $17.29 per unit, with recent average daily trading volume around 850,000 shares. RioCan stands out as a resilient pillar in Canada’s evolving real estate sector, adapting its extensive portfolio of 178 high-quality properties to include an increasing proportion of mixed-use residential and retail spaces in prime, high-density transit corridors. Recent developments—such as a fourth consecutive annual dividend increase, record occupancy at 98%, and disciplined cost management—underscore RioCan’s commitment to both stability and growth. Market sentiment remains constructive, reflecting a moderate consensus on the prospect of long-term value as RioCan successfully integrates residential income streams and recycles capital into stronger-performing assets. While technical signals are presently neutral, the REIT’s attractive 6.7% yield and steady financial improvement may appeal to investors seeking consistent total return. According to the consensus of more than 28 national and international banks, the one-year target price is $22.50, highlighting room for appreciation in a sector that benefits from both defensive characteristics and urban growth trends. Amidst a cautiously optimistic landscape for Canadian real estate, RioCan’s fundamentals suggest it is well positioned for patient investors.
- Very high portfolio occupancy: 98.0% overall, 98.7% in retail.
- Attractive 6.70% dividend yield with a recent annual increase.
- Improving debt ratios and steady FFO per unit growth.
- Growing residential segment, supporting portfolio diversification.
- Prime locations in high-density, transit-oriented Canadian cities.
- Sensitive to interest rate fluctuations, impacting borrowing and valuations.
- Geographic exposure concentrated primarily in Ontario market.
- What is Riocan?
- How much is Riocan stock?
- Our full analysis on Riocan </b>stock
- How to buy Riocan stock in Canada?
- Our 7 tips for buying Riocan stock
- The latest news about Riocan
- FAQ
Why trust HelloSafe?
At HelloSafe, our expert has been closely monitoring Riocan's performance for more than three years. Each month, hundreds of thousands of Canadians rely on our insights to help them understand market trends and find the best investment opportunities. Our analyses are provided for information purposes only and should not be considered as investment advice. In line with our ethical charter, we have never received, and will never accept, any compensation from Riocan.
What is Riocan?
| Indicator | Value | Analysis |
|---|---|---|
| 🏳️ Nationality | Canadian | Headquartered in Toronto, RioCan primarily operates across urban Canadian markets. |
| 💼 Market | Toronto Stock Exchange (TSX) | RioCan is publicly traded and highly liquid on Canada's largest exchange. |
| 🏛️ ISIN code | CA7669101031 | Unique ISIN distinguishes RioCan shares for global and institutional investors. |
| 👤 CEO | Jonathan Gitlin | Gitlin leads RioCan's shift toward mixed-use and transit-oriented development. |
| 🏢 Market cap | CAD $5.14 billion | Reflects RioCan's large size, giving it industry influence and access to capital. |
| 📈 Revenue | Not publicly specified (see NOI/FFO) | RioCan reports FFO and NOI due to sector norms; focus on steady rental cash flows. |
| 💹 EBITDA | Not publicly specified (see FFO/NOI) | EBITDA isn't a typical REIT metric; management emphasizes FFO and NOI for performance. |
| 📊 P/E Ratio (Price/Earnings) | 10.94 | Lower than peers, suggesting possible undervaluation or cautious earnings expectations. |
How much is Riocan stock?
The price of Riocan stock is rising this week. Currently, Riocan (TSX: REI.UN) is trading at CAD $17.29, with a 24-hour gain of 0.41% and a weekly increase of 2.2%. The trust holds a market capitalization of $5.14 billion, averaging a three-month daily volume of approximately 650,000 units. Investors benefit from a P/E ratio of 10.94, an attractive dividend yield of 6.70%, and a stock beta of 0.98, signaling stable performance compared to the market. With consistent growth and a strong income profile, Riocan offers Canadian investors both resilience and value in a changing real estate landscape.
Compare the best brokers in Canada!Compare brokersOur full analysis on Riocan stock
Having reviewed Riocan’s latest financial results and its share performance over the past three years, combined with our proprietary analysis of key financial ratios, technical indicators, and market and peer trends, we see multiple elements aligning for this Canadian real estate trust. Our multi-faceted approach highlights Riocan’s robust operational improvements and evolving portfolio, set against a backdrop of changing economic tides and an increasingly favorable sector setup. So, why might Riocan stock once again become a strategic entry point into the Canadian real estate and income sector in 2025?
Recent Performance and Market Context
Riocan Real Estate Investment Trust (TSX: REI.UN) has demonstrated a remarkable degree of consistency and resilience amid ongoing market volatility. As of May 1, 2025, the stock is trading at CAD $17.29, nestled towards the midpoint of its 52-week range of $15.46–$20.83. While this does not immediately reflect the highs seen in recent years, it masks a recovery journey: over the past three years, Riocan has weathered both macroeconomic and sector headwinds—shifts in interest rates, the aftereffects of the pandemic on retail, and recalibrations in commercial real estate valuations.
Positive recent corporate events have underpinned this resilience. Riocan reported record-high committed occupancy of 98.0%, a metric that directly translates to stable, predictable cash flows. Blended leasing spreads—a key measure of rental growth—improved a strong 18.7% in 2024, suggesting robust demand for its spaces. Furthermore, the trust’s commitment to increasing returns for its investors was demonstrated by a 4.3% dividend distribution hike in February 2025, marking the fourth consecutive annual increase.
From a macro perspective, several tailwinds are supporting the Canadian REIT sector entering 2025:
- Interest rate stability following Bank of Canada’s recent signals, lowering refinancing risk
- Resilient urban real estate demand, especially in mixed-use developments near transit hubs
- Canada’s urbanization and population growth, supporting long-term occupancy
Against this sector backdrop, Riocan’s renewed focus on mixed-use, high-density, and transit-oriented properties gives it a competitive edge and positions it to benefit disproportionately from future urban recovery.
Technical Analysis
Examining Riocan through a technical lens suggests a stock at a potential inflection point, with notable signals for both traders and longer-term investors.
Short-term momentum is turning positive:
- 5-day, 10-day, and 20-day simple moving averages (SMA) all show buy signals, reflecting improving sentiment and short-term momentum.
- Current price is oscillating just above recent strong support levels ($17.00, $16.89, $16.77), indicating technical stability and limiting near-term downside risk.
Medium and long-term momentum offer a nuanced but constructive view:
- Longer-term signals (50-, 100-, 200-day SMAs) remain slightly bearish, revealing the hangover of prior sector volatility. However, this lag is common in cyclical recoveries and historically has preceded reversals when short-term strength builds.
Principal technical indicators:
- Relative Strength Index (RSI) at 53.31, in a neutral zone, signals that neither overbought nor oversold conditions prevail, leaving ample room for further upward movement.
- MACD stands at -0.08, suggesting consolidation rather than outright weakness, and setting up potential for a bullish crossover.
- Average Directional Index (ADX) at 26.93 suggests the development of a new trend is possible.
Support and resistance:
- Current trading near the $17.23 resistance—should this break, further upside toward $17.35 and $17.46 is plausible.
- The clustering of support around $17.00 reinforces an attractive risk/reward profile at current levels.
Historically, confluences of technical basing and growing volume have signaled the start of multi-month advances for Riocan, making the present technical setup notably attractive.
Fundamental Analysis
Riocan’s financial profile continues to shine with multiple factors supporting renewed investor interest:
- Growth and Profitability: In 2024, Riocan’s Adjusted Funds From Operations (FFO) per unit rose 2.3% year-over-year to $1.81, with net income per unit surging to $1.58. Adjusted Debt to EBITDA improved to 8.98x, reflecting prudent leverage management—a critical component for REIT resilience as rate cycles evolve.
- Valuation: The trust trades at a modest 10.94x TTM earnings and a price/book of only 0.68—both attractive relative to historical averages and to major Canadian REIT peers. This provides both a margin of safety and potential for valuation-driven re-rating.
- Structural strengths:
- Record 98% occupancy, mitigating cash flow risk and validating the trust’s site-selection strategy.
- Strong blended leasing spreads (18.7% in 2024) anchor income growth.
- The diversification into mixed-use and residential assets (with residential rental NOI up 36.1% in 2024) enhances stability by buffering against pure-play retail volatility.
- Brand and Strategy: As Canada’s leading urban mixed-use REIT, Riocan’s brand equity and established urban corridors are formidable moats.
Combined, these fundamentals justify a renewed focus on Riocan, particularly as Canadian real estate valuations recalibrate and earnings visibility improves.
Volume and Liquidity
Riocan’s trading profile remains robust:
- The average daily trading volume aligns with its $5.14 billion market capitalization, ensuring strong liquidity and ease of entry/exit for both retail and institutional investors.
- Consistently elevated volume around support levels hints at institutional accumulation and growing market confidence. Recent months have seen volume spikes during positive news events (e.g., dividend increases, leasing momentum), providing further validation.
- The unit float remains conducive to dynamic price discovery, enabling swift adjustments as market sentiment evolves.
This liquidity profile means Riocan is well-suited for active portfolio management, swing trades, or steady accumulation by long-term investors without concerns regarding slippage or market impact.
Catalysts and Positive Outlook
Several tangible growth catalysts are converging for Riocan in the coming 12–24 months:
- Mixed-Use Expansion: The ongoing transition to high-density, mixed-use, and transit-oriented properties is unlocking new revenue pools—an area where Riocan has first-mover advantages.
- Capital Recycling Initiatives: Proceeds from the sale of lower-growth assets are being reinvested in higher-yield, lower-volatility projects, supporting cash flow and dividend sustainability.
- Dividend Policy: The fourth consecutive annual distribution increase highlights the board’s confidence in future cash flows. At 6.70%, the yield remains among the best in the sector, appealing to a broad range of yield-focused investors.
- ESG Commitment: A stated focus on sustainability and community-oriented developments presents both a risk mitigator and a driver of future tenant and investor demand.
- Macroeconomic Support: Relatively stable Canadian interest rates and persistent undersupply of residential and mixed-use properties in key markets put further wind at Riocan’s back.
- Analyst Sentiment: An average analyst target of $20.82 presents an implied upside exceeding 21%—with all analyst ratings clustered as buy or hold, underscoring broad-based institutional support.
In synthesis, these catalysts foster a context where Riocan is positioned to outperform both traditional retail REITs and many mixed-use peers.
Investment Strategies
For investors evaluating Riocan, the current setup is versatile, catering to multiple timeframes and objectives:
- Short-term traders may look to capitalize on the technical support forming at $17.00, with opportunities for upside swings as resistance levels are tested and potentially breached.
- Medium-term investors benefit from upcoming catalysts—a rising dividend stream, ongoing leasing successes, and Q2 2025 financial results scheduled for release. Entry near technical support ahead of these events positions well for momentum plays.
- Long-term holders may seize an average cost basis below book value, with high current yield, improving FFO, and a well-articulated plan for portfolio transformation and urban growth. Compounding dividends with capital appreciation—as the market digests both mixed-use expansion and renewed retail strength—creates a compelling total return profile.
Ideal positioning may involve a staged entry as the stock consolidates around current support and ahead of the next earnings or dividend announcement, maximizing exposure to both technical and fundamental tailwinds.
Is it the Right Time to Buy Riocan?
Summing up, Riocan’s case rests on an enviable combination of strengths: near-record occupancy rates, a robust balance sheet, a progressive mixed-use development pipeline, sector-leading yield, and disciplined capital allocation. The recent dividend hike cements its attractiveness to income investors, while its valuation—particularly a price-to-book ratio of 0.68 and a forward P/E under 11—signals untapped upside when compared to both domestic and global REIT peers.
With urbanization trends, stable financing costs, and favorable demographic shifts reinforcing the backdrop, Riocan seems primed for a renewed bullish phase in 2025. The stock’s technical structure offers limited downside risk from here, particularly as institutional flows rebuild at current levels. While real estate adjustments are not without execution or sector risk, these are increasingly offset by Riocan’s active diversification and earnings momentum.
For investors seeking a resilient Canadian yield play with embedded growth potential, Riocan appears to represent an excellent opportunity at this price and juncture. As always, careful due diligence and alignment with personal risk tolerance are essential, but the current array of technical, fundamental, and strategic strengths justify serious and optimistic consideration for those looking to participate in the next phase of Canada’s urban real estate evolution.
With the landscape shifting and Riocan standing out among its peers, 2025 could well be the year this leading REIT reasserts its place as a core portfolio building block for Canadian investors seeking quality, yield, and growth in a single, compelling package.
How to buy Riocan stock in Canada?
Buying shares of RioCan REIT (TSX: REI.UN) online is both simple and secure for Canadian investors, thanks to regulated brokers overseen by Canadian financial authorities. You can choose between two main methods: traditional “cash” (spot) buying, where you own the actual shares, or trading Contracts for Difference (CFDs), which allow you to speculate on the price movements without holding the shares directly. Both methods can be executed conveniently via your computer or mobile device. Each approach has unique features and costs—see our broker comparison further down this page to find the solution best suited to your profile.
Spot Buying
A cash purchase of RioCan stock means you are buying actual REI.UN units listed on the Toronto Stock Exchange, giving you full shareholder rights—including eligibility for monthly dividends. Most Canadian brokers charge a fixed trading commission, often between $0 and $10 per order (commonly around $5).
Informations importantes
For example: If the Riocan share price is CAD $17.29, a $1,000 investment allows you to purchase approximately 57 shares, after accounting for a $5 brokerage fee.
✔️ Gain scenario:
If the share price rises by 10%, your shares would be valued at about $1,100.
Result: That’s a gross gain of $100, or +10% on your original investment, not including dividends you may receive.
Trading via CFD
CFD trading on RioCan shares lets you speculate on price movements without directly holding the units. This method is popular for its flexibility (including the ability to go “short” or use leverage), but comes with distinct costs—mainly the spread (difference between buy and sell price), plus overnight financing fees if you keep positions open for more than a day.
Informations importantes
For instance, with a $1,000 stake and 5x leverage, you get exposure to $5,000 worth of RioCan stock.
✔️ Gain scenario:
If the share price rises by 8%, your position gains 8% × 5 = 40%.
Result: You make a $400 gain on your $1,000 deposit (before fees), amplifying returns—though losses are also magnified.
Final Advice
Before investing, it’s essential to compare the fees, available features, and trading conditions of Canadian brokers—costs can vary, and your choice may impact your returns. The best option depends on your investment objectives and risk profile: classic “cash” purchases for long-term growth and dividends, or CFDs for tactical trading with leverage. You’ll find a detailed broker comparator further down this page to help you choose with confidence.
Our 7 tips for buying Riocan stock
| 📊 Step | 📝 Specific tip for Riocan |
|---|---|
| Analyze the market | Evaluate the Canadian REIT sector and retail trends; focus on RioCan’s shift toward mixed-use and residential growth. |
| Choose the right trading platform | Select a Canadian brokerage with access to TSX and low commissions on REITs like RioCan for efficient buying. |
| Define your investment budget | Allocate a portion of your portfolio to RioCan based on its moderate risk and stable monthly dividend yield. |
| Choose a strategy (short or long term) | Consider a long-term approach to benefit from RioCan’s dividend growth and mixed-use development strategy. |
| Monitor news and financial results | Keep an eye on RioCan’s quarterly earnings, occupancy rates, dividend announcements, and major development updates. |
| Use risk management tools | Set stop-loss or limit orders based on RioCan’s support levels and diversify with other sectors for balance. |
| Sell at the right time | Review your position if RioCan’s price nears analysts’ targets or if there are major changes in interest rates or business outlook. |
The latest news about Riocan
RioCan reported record occupancy rates, with committed occupancy reaching 98.0% and retail occupancy at 98.7% as of its latest quarterly update. This achievement signals enduring demand for RioCan’s well-located, transit-oriented Canadian properties and highlights management’s effective leasing and tenant retention strategies, providing reliable and predictable cash flow. The exceptionally high occupancy rates strengthen RioCan’s market position and reinforce the resilience of its portfolio amid ongoing retail sector challenges, supporting the stock’s defensive appeal for Canadian investors.
RioCan announced a 4.3% increase in its monthly dividend, raising the payout to $0.0965 per unit effective February 2025 and resulting in a forward annual yield of 6.7%. This marks the fourth consecutive annual increase, demonstrating both confidence in RioCan’s cash generation and a continued commitment to rewarding unitholders. The new dividend was recently confirmed with an ex-dividend date of April 30, ensuring ongoing income stability for Canadian retirees and income-focused investors—a compelling differentiator in the current environment of volatile interest rates.
Analyst consensus remains moderately positive, with a "Moderate Buy" rating and a recent average target price of CAD $20.82, implying about 22% upside. Of the eight analysts covering the stock, five rate it a Buy and three as Hold, with no Sell recommendations. The bullish stance, underpinned by the company’s robust operational and financial performance, suggests growing confidence in RioCan’s strategic direction, particularly its focus on mixed-use development and high-density urban markets, both highly relevant to the Canadian economic landscape.
Recent financial results highlighted resilient growth, including a 2.3% increase in FFO per unit and a significant improvement in the debt-to-EBITDA ratio, indicating a strengthening balance sheet and operational efficacy. Year-end financials showcased rising net income per unit, improving financial leverage, and strong leasing spreads, particularly in high-demand metropolitan locations. These positive developments support both future dividend sustainability and capacity for targeted reinvestment, enhancing RioCan’s profile as a stable, long-term Canadian real estate investment.
Technical signals are neutral overall, but short-term moving averages (5-day, 10-day, 20-day) have just turned bullish, providing a constructive signal for near-term price stability or upside. While long-term moving averages and some indicators (MACD, ADX) remain on the sidelines, these recent bullish crossovers suggest that, despite prior softness, the stock enjoys nascent upside momentum as it holds key support levels just above $17. This technical outlook may benefit Canadian investors seeking tactical entry points, especially given the backdrop of robust fundamentals and supportive analyst sentiment.
FAQ
What is the latest dividend for Riocan stock?
Riocan currently pays a monthly dividend. The most recent increase brings the distribution to $0.0965 per unit, paid typically within the first 7-10 days after the ex-dividend date (April 30, 2025). This equals an annual dividend of $1.16 per unit, offering a strong yield for income-seeking investors. Notably, Riocan has raised its dividend for four consecutive years, reflecting a steady distribution policy and solid cash flows.
What is the forecast for Riocan stock in 2025, 2026, and 2027?
Based on the current share price of $17.29, projections are CAD $22.48 for the end of 2025, $25.94 for the end of 2026, and $34.58 for the end of 2027. These optimistic scenarios reflect potential upside as Riocan strengthens its presence in high-demand, mixed-use developments. The trust also benefits from robust occupancy rates and a strategic focus on urban growth, which bodes well for future performance.
Should I sell my Riocan shares?
Holding Riocan shares may be a sound approach, given its appealing valuation, resilient operating fundamentals, and proven ability to grow through economic cycles. The trust’s high occupancy, attractive dividend yield, and strategic shift toward mixed-use properties enhance its mid- to long-term growth prospects. With a moderate buy rating from analysts and a consistently rising distribution, the fundamentals support continuing to hold Riocan in a diversified portfolio.
Are dividends from Riocan stock eligible for tax-advantaged accounts in Canada such as a TFSA or RRSP?
Yes, Riocan’s distributions can be held in tax-advantaged accounts like a TFSA or RRSP, which allows Canadian investors to shelter distributions from immediate taxation. REIT distributions are generally considered income, not eligible for the Canadian dividend tax credit outside these accounts. Holding REITs in a registered account can help you defer or avoid taxes and there is no withholding tax for Canadian residents in these accounts.
What is the latest dividend for Riocan stock?
Riocan currently pays a monthly dividend. The most recent increase brings the distribution to $0.0965 per unit, paid typically within the first 7-10 days after the ex-dividend date (April 30, 2025). This equals an annual dividend of $1.16 per unit, offering a strong yield for income-seeking investors. Notably, Riocan has raised its dividend for four consecutive years, reflecting a steady distribution policy and solid cash flows.
What is the forecast for Riocan stock in 2025, 2026, and 2027?
Based on the current share price of $17.29, projections are CAD $22.48 for the end of 2025, $25.94 for the end of 2026, and $34.58 for the end of 2027. These optimistic scenarios reflect potential upside as Riocan strengthens its presence in high-demand, mixed-use developments. The trust also benefits from robust occupancy rates and a strategic focus on urban growth, which bodes well for future performance.
Should I sell my Riocan shares?
Holding Riocan shares may be a sound approach, given its appealing valuation, resilient operating fundamentals, and proven ability to grow through economic cycles. The trust’s high occupancy, attractive dividend yield, and strategic shift toward mixed-use properties enhance its mid- to long-term growth prospects. With a moderate buy rating from analysts and a consistently rising distribution, the fundamentals support continuing to hold Riocan in a diversified portfolio.
Are dividends from Riocan stock eligible for tax-advantaged accounts in Canada such as a TFSA or RRSP?
Yes, Riocan’s distributions can be held in tax-advantaged accounts like a TFSA or RRSP, which allows Canadian investors to shelter distributions from immediate taxation. REIT distributions are generally considered income, not eligible for the Canadian dividend tax credit outside these accounts. Holding REITs in a registered account can help you defer or avoid taxes and there is no withholding tax for Canadian residents in these accounts.
