Discounted Cash Flow (DCF) Analysis Levered

RioCan Real Estate Investment Trust (REI-UN.TO)

$20.27

+0.40 (+2.01%)

All numbers are in Millions, Currency in USD

Stock DCF: -13.19 | 20.27 | overvalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,147.84	1,326.33	1,143.66	1,175.06	1,213.85	1,237.59	1,261.79	1,286.47	1,311.64	1,337.29
Revenue (%)
Operating Cash Flow	404	568.73	552.58	490.40	506.12	519.35	529.51	539.86	550.42	561.19
Operating Cash Flow (%)
Capital Expenditure	-421.93	-537.09	-516.63	-463.88	-101.47	-421.43	-429.67	-438.08	-446.65	-455.38
Capital Expenditure (%)
Free Cash Flow	-17.93	31.64	35.95	26.52	404.66	97.92	99.84	101.79	103.78	105.81

Weighted Average Cost Of Capital

Share price	$ 20.27
Beta	1.196
Diluted Shares Outstanding	317.28
Cost of Debt
Tax Rate	0.39
After-tax Cost of Debt	2.65%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.334
Total Debt	6,778.91
Total Equity	6,431.35
Total Capital	13,210.26
Debt Weighting	51.32
Equity Weighting	48.68
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	1,147.84	1,326.33	1,143.66	1,175.06	1,213.85	1,237.59	1,261.79	1,286.47	1,311.64	1,337.29
Operating Cash Flow	404	568.73	552.58	490.40	506.12	519.35	529.51	539.86	550.42	561.19
Capital Expenditure	-421.93	-537.09	-516.63	-463.88	-101.47	-421.43	-429.67	-438.08	-446.65	-455.38
Free Cash Flow	-17.93	31.64	35.95	26.52	404.66	97.92	99.84	101.79	103.78	105.81
WACC
PV LFCF						92.46	89.02	85.71	82.51	79.44
SUM PV LFCF										429.14

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.90
Free cash flow (t + 1)	107.92
Terminal Value	2,767.30
Present Value of Terminal Value	2,077.67

Intrinsic Value

Enterprise Value	2,506.81
Net Debt	6,692.69
Equity Value	-4,185.87
Shares Outstanding	317.28
Equity Value Per Share	-13.19