Discounted Cash Flow (DCF) Analysis Unlevered

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

$20.27

+0.40 (+2.01%)

All numbers are in Millions, Currency in USD

Stock DCF: -4.59 | 20.27 | overvalue

Operating Data

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 (%)
EBITDA	699.54	964.36	131	773.87	422.83	608.40	620.30	632.43	644.80	657.41
EBITDA (%)
EBIT	694.96	959.98	126.66	769.85	418.06	603.83	615.64	627.68	639.96	652.48
EBIT (%)
Depreciation	4.57	4.38	4.34	4.02	4.77	4.56	4.65	4.74	4.84	4.93
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	74.70	93.52	238.46	77.76	86.23	119.13	121.46	123.84	126.26	128.73
Total Cash (%)
Account Receivables	42.32	90.99	129.55	297.54	145.47	146.48	149.35	152.27	155.25	158.28
Account Receivables (%)
Inventories	206.12	108.96	214.18	217.04	272.01	212.32	216.47	220.71	225.02	229.42
Inventories (%)
Accounts Payable	18.67	19.56	11.33	20.20	88.62	32.45	33.09	33.73	34.39	35.07
Accounts Payable (%)
Capital Expenditure	-421.93	-537.09	-516.63	-463.88	-101.47	-421.43	-429.67	-438.08	-446.65	-455.38
Capital Expenditure (%)

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

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
EBITDA	699.54	964.36	131	773.87	422.83	608.40	620.30	632.43	644.80	657.41
EBIT	694.96	959.98	126.66	769.85	418.06	603.83	615.64	627.68	639.96	652.48
Tax Rate	-0.41%	0.18%	-19.63%	-0.01%	0.39%	-3.90%	-3.90%	-3.90%	-3.90%	-3.90%
EBIAT	697.84	958.29	151.53	769.93	416.44	627.37	639.64	652.15	664.91	677.91
Depreciation	4.57	4.38	4.34	4.02	4.77	4.56	4.65	4.74	4.84	4.93
Accounts Receivable	-	-48.66	-38.56	-167.99	152.07	-1.01	-2.87	-2.92	-2.98	-3.04
Inventories	-	97.17	-105.23	-2.86	-54.96	59.69	-4.15	-4.23	-4.32	-4.40
Accounts Payable	-	0.88	-8.23	8.87	68.42	-56.16	0.63	0.65	0.66	0.67
Capital Expenditure	-421.93	-537.09	-516.63	-463.88	-101.47	-421.43	-429.67	-438.08	-446.65	-455.38
UFCF	280.49	474.97	-512.78	148.08	485.27	213.02	208.24	212.31	216.47	220.70
WACC
PV UFCF						201.15	185.68	178.77	172.11	165.70
SUM PV UFCF										903.42

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.90
Free cash flow (t + 1)	225.11
Terminal Value	5,772.18
Present Value of Terminal Value	4,333.71

Intrinsic Value

Enterprise Value	5,237.13
Net Debt	6,692.69
Equity Value	-1,455.56
Shares Outstanding	317.28
Equity Value Per Share	-4.59