Skip to main content
//empty //empty

RioCan CEO Edward Sonshine

Charla Jones/The Globe and Mail

You can mark Edward Sonshine's words: RioCan REIT will expand south of the U.S. border.

And it will grow all by itself.

RioCan's first foray into the United States came almost three years ago when the REIT signed a joint-venture agreement with Cedar Shopping Centers Inc. Together, the two companies scooped up 25 retail properties in the U.S. northeast, with RioCan taking 80 per cent stakes and Cedar taking the remaining portions. RioCan's U.S. properties now generate about 15 per cent of the REIT's revenues.

Story continues below advertisement

While Mr. Sonshine said before that he wants to see this figure climb to 20 per cent, he's now stressing that he'd like to see it happen soon. The U.S. catches his eye because, as he said on a conference call Tuesday,"the velocity of the recovery and the growth in rents is better [than in Canada] because they had such a big falloff in 2009."

Seeing potential, Mr. Sonshine recently did away with the Cedar joint venture.

"After considering more alternatives than I can even count, we finally realized that managing properties in the United States is no more difficult than operating them in B.C., Newfoundland and Quebec, all of which we, of course, do." By January, 2013, RioCan will set up its own office in the U.S. northeast, and the REIT intends to buy properties "at a cost that will probably be less on day one than we are currently paying out." RioCan, effectively, is going all-in on the U.S.

As for what exactly he'll buy, Mr. Sonshine plans on being picky. "At the moment, we are looking at a couple of possible [acquisitions], but neither are certainly at a stage where they're even worth talking about or taking too seriously right now. But discussions always continue," he said. "We're just looking for the one perfect one."

Report an error Editorial code of conduct
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies