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Investors should examine a REIT’s distributions carefully. Pictured is Lawrence Square Shopping Centre which is owned by Riocan REIT.
Investors should examine a REIT’s distributions carefully. Pictured is Lawrence Square Shopping Centre which is owned by Riocan REIT.
(Louie Palu/The Globe and Mail)

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RioCan’s payout ratio: A problem or not?

If you write a critical piece about Canada’s largest real estate investment trust, you’re bound to take some heat. And a post on Wednesday about RioCan REIT’s distributions was no exception.

To recap: RioCan agreed to purchase $1.1-billion worth of properties from the consortium of real estate players aiming to buy Primaris REIT, for a total price of $4.4-billion. When the news broke, Streetwise noted that RioCan has been a busy buyer lately, and its activity has at times distracted the average investor away from its payout ratio, which is still more than 100 per cent.