In the morning, RioCan announced First Quarter Results for 2022. Their operations resulted in:
- Net income of $160.1 million, exceeding the comparable period last year by $53.3 million
- FFO (Funds from Operations) of $0.42 /unit, up 27% year of year (YoY)
- A 4.1% increase in SPNOI – Same Property Net Operating Income
- 1.1 million sq. ft. of new and renewed leases
- Occupancy was 97% – up to pre-pandemic levels
- 42.6 million ft2 in the “development pipeline”
- 16.8 million ft2 of zoning approved
- 2.2 million ft2 under construction
- 2.5 million ft2 “shovel ready”
- 3.2 million ft2 actively being “redeveloped”
- 1.7 million ft2 expected to be delivered in the next 24 months
- 27.4 million of new funds expected in 2022
- Weighted interest costs are at 2.98%
- Book Value /unit $25.96 as of March 31, 2022.
Most landlords would be satisfied with those quarterly results. So, how did the market respond to their business operations? The unit price dropped $1.15 or 5% to $20.65 from $21.80 and then closed at $20.99. It was one of the most traded issues on the Toronto Stock Exchange.
At $21 /unit, an investor can purchase a pro-rata interest at a discount of 19%.
Further Reading, See: