Intrinsic value of RioCan Real Estate Investment Trust - REI-UN

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$26.20

  Intrinsic Value

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  Rating & Target

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  Value-price divergence*

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Previous close

$26.20

 
Intrinsic value

$6.16

 
Up/down potential

-76%

 
Rating

str. sell

 
Value-price divergence* premium content

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*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of REI-UN stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Revenue (in 2016), $M
Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Variable cost ratio, %
Fixed operating expenses, $M
Interest rate on debt, %
Effective corporate tax rate, %
Production assets / Revenue, %
Life of production assets, yrs
Working capital / Revenue, %
Revenue / Adjusted assets
Adjusted equity ratio
Cash flow adjustment, % of Revenue
Book value of equity, $M
Shares outstanding, mln
Market capitalization, $bln 8.5

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2016(a)
   2017
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  4.14
  60.00
  54.50
  49.55
  45.10
  41.09
  37.48
  34.23
  31.31
  28.68
  26.31
  24.18
  22.26
  20.53
  18.98
  17.58
  16.32
  15.19
  14.17
  13.26
  12.43
  11.69
  11.02
  10.42
  9.87
  9.39
  8.95
  8.55
  8.20
  7.88
  7.59
Revenue, $m
  1,133
  1,813
  2,801
  4,189
  6,077
  8,574
  11,788
  15,823
  20,776
  26,734
  33,767
  41,931
  51,264
  61,791
  73,519
  86,445
  100,556
  115,832
  132,249
  149,779
  168,396
  188,076
  208,798
  230,547
  253,312
  277,091
  301,886
  327,709
  354,575
  382,510
  411,545
Variable operating expenses, $m
 
  1,111
  1,717
  2,568
  3,725
  5,256
  7,226
  9,699
  12,736
  16,388
  20,699
  25,704
  31,425
  37,878
  45,067
  52,991
  61,641
  71,005
  81,069
  91,814
  103,227
  115,290
  127,993
  141,325
  155,280
  169,857
  185,056
  200,885
  217,354
  234,479
  252,277
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  474
  1,111
  1,717
  2,568
  3,725
  5,256
  7,226
  9,699
  12,736
  16,388
  20,699
  25,704
  31,425
  37,878
  45,067
  52,991
  61,641
  71,005
  81,069
  91,814
  103,227
  115,290
  127,993
  141,325
  155,280
  169,857
  185,056
  200,885
  217,354
  234,479
  252,277
Operating income, $m
  659
  702
  1,084
  1,621
  2,352
  3,318
  4,562
  6,123
  8,040
  10,346
  13,068
  16,227
  19,839
  23,913
  28,452
  33,454
  38,915
  44,827
  51,180
  57,964
  65,169
  72,785
  80,805
  89,222
  98,032
  107,234
  116,830
  126,823
  137,221
  148,031
  159,268
EBITDA, $m
  663
  702
  1,084
  1,621
  2,352
  3,318
  4,562
  6,123
  8,040
  10,346
  13,068
  16,227
  19,839
  23,913
  28,452
  33,454
  38,915
  44,827
  51,180
  57,964
  65,169
  72,785
  80,805
  89,222
  98,032
  107,234
  116,830
  126,823
  137,221
  148,031
  159,268
Interest expense (income), $m
  229
  221
  367
  577
  873
  1,276
  1,807
  2,492
  3,352
  4,407
  5,676
  7,174
  8,914
  10,902
  13,145
  15,643
  18,397
  21,403
  24,657
  28,155
  31,889
  35,855
  40,048
  44,463
  49,096
  53,946
  59,012
  64,294
  69,795
  75,519
  81,470
Earnings before tax, $m
  679
  480
  717
  1,043
  1,479
  2,043
  2,754
  3,631
  4,689
  5,939
  7,392
  9,053
  10,926
  13,011
  15,307
  17,811
  20,518
  23,424
  26,523
  29,810
  33,280
  36,930
  40,757
  44,759
  48,936
  53,288
  57,818
  62,529
  67,425
  72,513
  77,798
Tax expense, $m
  -4
  130
  194
  282
  399
  552
  744
  980
  1,266
  1,604
  1,996
  2,444
  2,950
  3,513
  4,133
  4,809
  5,540
  6,325
  7,161
  8,049
  8,986
  9,971
  11,004
  12,085
  13,213
  14,388
  15,611
  16,883
  18,205
  19,578
  21,005
Net income, $m
  831
  351
  523
  762
  1,080
  1,491
  2,011
  2,651
  3,423
  4,336
  5,396
  6,609
  7,976
  9,498
  11,174
  13,002
  14,978
  17,100
  19,362
  21,761
  24,294
  26,959
  29,752
  32,674
  35,723
  38,901
  42,207
  45,646
  49,221
  52,934
  56,793

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  54
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  14,174
  22,660
  35,010
  52,357
  75,967
  107,179
  147,346
  197,782
  259,700
  334,171
  422,085
  524,134
  640,804
  772,385
  918,985
  1,080,563
  1,256,955
  1,447,906
  1,653,110
  1,872,233
  2,104,946
  2,350,945
  2,609,973
  2,881,834
  3,166,404
  3,463,639
  3,773,581
  4,096,358
  4,432,187
  4,781,373
  5,144,306
Adjusted assets (=assets-cash), $m
  14,120
  22,660
  35,010
  52,357
  75,967
  107,179
  147,346
  197,782
  259,700
  334,171
  422,085
  524,134
  640,804
  772,385
  918,985
  1,080,563
  1,256,955
  1,447,906
  1,653,110
  1,872,233
  2,104,946
  2,350,945
  2,609,973
  2,881,834
  3,166,404
  3,463,639
  3,773,581
  4,096,358
  4,432,187
  4,781,373
  5,144,306
Revenue / Adjusted assets
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
  0.080
Average production assets, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Working capital, $m
  0
  -87
  -134
  -201
  -292
  -412
  -566
  -759
  -997
  -1,283
  -1,621
  -2,013
  -2,461
  -2,966
  -3,529
  -4,149
  -4,827
  -5,560
  -6,348
  -7,189
  -8,083
  -9,028
  -10,022
  -11,066
  -12,159
  -13,300
  -14,491
  -15,730
  -17,020
  -18,360
  -19,754
Total debt, $m
  5,672
  9,410
  14,807
  22,388
  32,706
  46,345
  63,898
  85,939
  112,997
  145,541
  183,959
  228,555
  279,539
  337,040
  401,105
  471,714
  548,797
  632,243
  721,917
  817,674
  919,369
  1,026,871
  1,140,066
  1,258,869
  1,383,227
  1,513,118
  1,648,563
  1,789,616
  1,936,374
  2,088,968
  2,247,570
Total liabilities, $m
  6,164
  9,902
  15,299
  22,880
  33,198
  46,837
  64,390
  86,431
  113,489
  146,033
  184,451
  229,047
  280,031
  337,532
  401,597
  472,206
  549,289
  632,735
  722,409
  818,166
  919,861
  1,027,363
  1,140,558
  1,259,361
  1,383,719
  1,513,610
  1,649,055
  1,790,108
  1,936,866
  2,089,460
  2,248,062
Total equity, $m
  8,010
  12,758
  19,710
  29,477
  42,770
  60,342
  82,956
  111,351
  146,211
  188,138
  237,634
  295,088
  360,773
  434,852
  517,389
  608,357
  707,665
  815,171
  930,701
  1,054,067
  1,185,084
  1,323,582
  1,469,415
  1,622,473
  1,782,685
  1,950,029
  2,124,526
  2,306,249
  2,495,321
  2,691,913
  2,896,244
Total liabilities and equity, $m
  14,174
  22,660
  35,009
  52,357
  75,968
  107,179
  147,346
  197,782
  259,700
  334,171
  422,085
  524,135
  640,804
  772,384
  918,986
  1,080,563
  1,256,954
  1,447,906
  1,653,110
  1,872,233
  2,104,945
  2,350,945
  2,609,973
  2,881,834
  3,166,404
  3,463,639
  3,773,581
  4,096,357
  4,432,187
  4,781,373
  5,144,306
Debt-to-equity ratio
  0.708
  0.740
  0.750
  0.760
  0.760
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.770
  0.780
  0.780
  0.780
  0.780
  0.780
  0.780
  0.780
  0.780
  0.780
  0.780
  0.780
  0.780
  0.780
  0.780
  0.780
  0.780
  0.780
  0.780
Adjusted equity ratio
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563
  0.563

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  831
  351
  523
  762
  1,080
  1,491
  2,011
  2,651
  3,423
  4,336
  5,396
  6,609
  7,976
  9,498
  11,174
  13,002
  14,978
  17,100
  19,362
  21,761
  24,294
  26,959
  29,752
  32,674
  35,723
  38,901
  42,207
  45,646
  49,221
  52,934
  56,793
Depreciation, amort., depletion, $m
  4
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Funds from operations, $m
  611
  351
  523
  762
  1,080
  1,491
  2,011
  2,651
  3,423
  4,336
  5,396
  6,609
  7,976
  9,498
  11,174
  13,002
  14,978
  17,100
  19,362
  21,761
  24,294
  26,959
  29,752
  32,674
  35,723
  38,901
  42,207
  45,646
  49,221
  52,934
  56,793
Change in working capital, $m
  156
  -33
  -47
  -67
  -91
  -120
  -154
  -194
  -238
  -286
  -338
  -392
  -448
  -505
  -563
  -620
  -677
  -733
  -788
  -841
  -894
  -945
  -995
  -1,044
  -1,093
  -1,141
  -1,190
  -1,239
  -1,290
  -1,341
  -1,394
Cash from operations, $m
  455
  383
  571
  828
  1,170
  1,611
  2,165
  2,845
  3,661
  4,621
  5,734
  7,000
  8,424
  10,003
  11,737
  13,623
  15,656
  17,833
  20,150
  22,602
  25,188
  27,903
  30,747
  33,718
  36,816
  40,042
  43,398
  46,886
  50,510
  54,275
  58,186
Maintenance CAPEX, $m
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
New CAPEX, $m
  -47
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash from investing activities, $m
  1,194
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Free cash flow, $m
  1,649
  383
  571
  828
  1,170
  1,611
  2,165
  2,845
  3,661
  4,621
  5,734
  7,000
  8,424
  10,003
  11,737
  13,623
  15,656
  17,833
  20,150
  22,602
  25,188
  27,903
  30,747
  33,718
  36,816
  40,042
  43,398
  46,886
  50,510
  54,275
  58,186
Issuance/(repayment) of debt, $m
  -1,186
  3,738
  5,397
  7,581
  10,318
  13,639
  17,553
  22,040
  27,058
  32,544
  38,418
  44,595
  50,985
  57,501
  64,064
  70,610
  77,083
  83,446
  89,674
  95,757
  101,695
  107,502
  113,195
  118,803
  124,357
  129,892
  135,445
  141,053
  146,757
  152,594
  158,602
Issuance/(repurchase) of shares, $m
  -86
  626
  985
  1,357
  1,805
  2,322
  2,896
  3,510
  4,141
  4,762
  5,344
  5,858
  6,277
  6,576
  6,734
  6,736
  6,569
  6,227
  5,706
  5,007
  4,134
  3,092
  1,890
  536
  0
  0
  0
  0
  0
  0
  0
Cash from financing (excl. dividends), $m  
  -1,272
  4,364
  6,382
  8,938
  12,123
  15,961
  20,449
  25,550
  31,199
  37,306
  43,762
  50,453
  57,262
  64,077
  70,798
  77,346
  83,652
  89,673
  95,380
  100,764
  105,829
  110,594
  115,085
  119,339
  124,357
  129,892
  135,445
  141,053
  146,757
  152,594
  158,602
Total cash flow (excl. dividends), $m
  377
  4,122
  5,968
  8,409
  11,488
  15,251
  19,718
  24,885
  30,719
  37,165
  44,152
  51,596
  59,409
  67,504
  75,802
  84,232
  92,739
  101,279
  109,824
  118,359
  126,883
  135,405
  143,942
  152,521
  161,173
  169,934
  178,842
  187,939
  197,267
  206,869
  216,788
Retained Cash Flow (-), $m
  -84
  -4,802
  -6,953
  -9,767
  -13,293
  -17,572
  -22,614
  -28,395
  -34,860
  -41,927
  -49,496
  -57,454
  -65,685
  -74,080
  -82,536
  -90,968
  -99,308
  -107,506
  -115,530
  -123,366
  -131,017
  -138,497
  -145,833
  -153,058
  -160,213
  -167,343
  -174,497
  -181,723
  -189,072
  -196,592
  -204,332
Prev. year cash balance distribution, $m
 
  54
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  960
  2,590
  4,345
  6,216
  8,196
  10,278
  12,457
Discount rate, %
 
  8.50
  8.93
  9.37
  9.84
  10.33
  10.85
  11.39
  11.96
  12.56
  13.19
  13.85
  14.54
  15.26
  16.03
  16.83
  17.67
  18.55
  19.48
  20.46
  21.48
  22.55
  23.68
  24.86
  26.11
  27.41
  28.78
  30.22
  31.73
  33.32
  34.99
PV of cash for distribution, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  4
  6
  6
  5
  4
  2
  2
Current shareholders' claim on cash, %
  100
  93.1
  86.8
  81.5
  77.1
  73.3
  70.2
  67.5
  65.2
  63.3
  61.6
  60.2
  59.0
  58.0
  57.2
  56.5
  56.0
  55.5
  55.1
  54.9
  54.7
  54.5
  54.4
  54.4
  54.4
  54.4
  54.4
  54.4
  54.4
  54.4
  54.4

RioCan Real Estate Investment Trust engages in owning, developing, and operating retail real estate properties in Canada. Its portfolio of properties include supermarkets; junior department stores; and entertainment properties, including movie theatres, large-format bookstores, and restaurants, as well as fashion components. As of December 31, 2007, the company owned interests in a portfolio of 201 shopping centers in Canada. RioCan Real Estate Investment Trust is headquartered in Toronto, Canada.

FINANCIAL RATIOS  of  RioCan Real Estate Investment Trust (REI-UN)

Valuation Ratios
P/E Ratio 10.3
Price to Sales 7.6
Price to Book 1.1
Price to Tangible Book
Price to Cash Flow 18.8
Price to Free Cash Flow 21
Growth Rates
Sales Growth Rate 4.1%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 34.3%
Cap. Spend. - 3 Yr. Gr. Rate 12.6%
Financial Strength
Quick Ratio NaN
Current Ratio NaN
LT Debt to Equity 70.8%
Total Debt to Equity 70.8%
Interest Coverage 4
Management Effectiveness
Return On Assets 7%
Ret/ On Assets - 3 Yr. Avg. 5.4%
Return On Total Capital 6%
Ret/ On T. Cap. - 3 Yr. Avg. 3.9%
Return On Equity 10.4%
Return On Equity - 3 Yr. Avg. 7%
Asset Turnover 0.1
Profitability Ratios
Gross Margin 61.8%
Gross Margin - 3 Yr. Avg. 62.2%
EBITDA Margin 80.5%
EBITDA Margin - 3 Yr. Avg. 71.2%
Operating Margin 58.2%
Oper. Margin - 3 Yr. Avg. 46.9%
Pre-Tax Margin 59.9%
Pre-Tax Margin - 3 Yr. Avg. 47.4%
Net Profit Margin 73.3%
Net Profit Margin - 3 Yr. Avg. 50.4%
Effective Tax Rate -0.6%
Eff/ Tax Rate - 3 Yr. Avg. -0.1%
Payout Ratio 48.9%

REI-UN stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the REI-UN stock intrinsic value calculation we used $1133 million for the last fiscal year's total revenue generated by RioCan Real Estate Investment Trust. The default revenue input number comes from 2016 income statement of RioCan Real Estate Investment Trust. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our REI-UN stock valuation model: a) initial revenue growth rate of 60% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 8.5%, whose default value for REI-UN is calculated based on our internal credit rating of RioCan Real Estate Investment Trust, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of RioCan Real Estate Investment Trust.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of REI-UN stock the variable cost ratio is equal to 61.3%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for REI-UN stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.9% for RioCan Real Estate Investment Trust.

Corporate tax rate of 27% is the nominal tax rate for RioCan Real Estate Investment Trust. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the REI-UN stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for REI-UN are equal to 0%.

Life of production assets of 0 years is the average useful life of capital assets used in RioCan Real Estate Investment Trust operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for REI-UN is equal to -4.8%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $8010 million for RioCan Real Estate Investment Trust - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 325.048 million for RioCan Real Estate Investment Trust is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of RioCan Real Estate Investment Trust at the current share price and the inputted number of shares is $8.5 billion.


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Stock chart of REI-UN Financial statements of REI-UN
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