- RioCan Real Estate Investment Trust (REI.UN) has made progress in its COVID-19 recovery but is yet to reach pre-pandemic levels
- Funds from operations for the third quarter of 2020 came to C$128.8 million compared to $109.9 million in the second quarter, but remains well below last year’s third quarter total of $142.8 million
- Most significantly, net income came to $117.6 million compared to a net loss of $350.8 million the quarter before, but falls short of last year’s earnings of $177.6 million
- With the gradually improving financial position, the trust said it would be able to weather the rest of the pandemic with enough liquidity to capitalise on emerging opportunities
- RioCan Real Estate Investment Trust (REI.UN) is currently up 1 per cent to $14.18 per unit
RioCan Real Estate Investment Trust (REI.UN) has made progress in its COVID-19 recovery, but is yet to reach pre-pandemic levels.
For the three months ending September 30, 2020, the trust’s funds from operations came to a total of C$128.8 million. This compares to $109.9 million for the second quarter of the year – which saw the greatest impact from the COVID-19 pandemic – but falls short of 2019’s third quarter total of $142.8 million.
RioCan said this was primarily due to an $11.2 million increase in inventory gains due to the disposition of a 50 per cent stake in Dufferin Plaza, as well as a decrease of $4.7 million in pandemic-related provisions for rent abatement and estimated bad debts.
Most significantly, the trust reported a net income of $117.6 million for the third quarter of the year, representing a significant improvement compared to the prior quarter’s net loss of $350.8 million.
Despite the increase, however, RioCan once again fell short of last year’s third quarter earnings of $177.6 million.
Edward Sonshine, CEO of RioCan, said the results demonstrate the quality of the trust’s portfolio, which saw 93.4 per cent cash rent collection, 96.0 per cent occupancy and 368,000 square feet of new leases.
“Given the quality and sustainability of our income, as well as our strong liquidity position, we are confident that we will not only navigate through this storm but will be poised to take advantage of any emerging opportunities as we continue to create value for our unitholders,” he added.
RioCan Real Estate Investment Trust (REI.UN) is currently up 1 per cent to $14.18 per unit at 10:21am EDT.
