This Super Dividend REIT Can't Be Beat
With that in mind, here is a snapshot of RioCan's geographic diversity:
As the above chart and table shows, RioCan is strategically located in the most populated areas of Canada and some of the higher growth areas of the United States. Geographically, the RioCan portfolio is adequately diverse.
The following is a snapshot of the company's tenant base:
The top 10 tenants represent only 30% of the company's annualized revenue and have longer remaining lease terms. Due to these factors, the company's tenant base is adequately diverse.
RioCan REIT has desirable diversification attributes as they are located in more populated geographic areas as well as higher growth areas and their tenant base is stable with no outsized exposure to any one tenant.
While most retail REITs typically have an occupancy rate in the low to mid 90% area, RioCan again stands out with its above average occupancy rate as shown below.
Occupancy rates above 95% for the last fifteen years help make RioCan the best in class retail REIT. As a comparison, here are some of their "peers" occupancy rates:
RioCan leads the pack in terms of occupancy. Again, best in class.
RioCan is a conservatively levered company, like most investment grade REITs. Below is a snapshot of their debt to capitalization and corresponding interest coverage. Both of these metrics are strong and well within covenanted limits.
Funds From Operations
Funds from operations has steadily increased (with the exception of 2009 due to lower prices on properties available for sale), growing at a compound annual growth rate of 6.8% over the last ten years.