September 3, 2012 Comments

RioCan Real Estate Investment Trust is updated and rated Weak Buy / Hold at $27.62. It has been a good investment in 2012 since it rose 4.5% and also yields 5%. However, I am not convinced that a 5% yield is attractive going forward given that distributions per share are likely to grow only slowly at best and given that there are risks that the units would fall in value if interest rates rise. Perhaps not a bad investment but I don’t find it attractive.

The series A preferred shares of RioCan Real Estate Investment Trust are also updated and rated Weak / Buy / Hold at $26.00. These yield 5.0% per year. However it appears that in 3.6 years from now they will be redeemed at $25. So the effective yield is closer to 4% which does not seem very attractive.

Bombardier series four preferred shares BBD.PR.C are updated and rated Buy at $24.73. They are higher risk than some preferred shares. The 6.3% yield seems attractive. These shares will not likely trade above their redemption price of $25 and can move lower. Therefore it may not be a good place to park money that you may need on short notice or on a certain date.