Discounted Cash Flow (DCF) Analysis Unlevered

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

$18.125

-0.12 (-0.63%)

All numbers are in Millions, Currency in USD

Stock DCF: -2.21 | 18.125 | 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	680.20	721.84	652.50	675.33	674.08	702.31	716.04	730.05	744.33	758.89
EBITDA (%)
EBIT	675.62	717.46	648.15	671.31	669.30	697.74	711.39	725.30	739.49	753.95
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	149.86	145.47	115.37	117.63	119.93	122.28	124.67
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	56.17	57.75	86.54	92.25	88.62	79.12	80.67	82.25	83.86	85.50
Accounts Payable (%)
Capital Expenditure	-421.93	-537.09	-516.63	-463.88	-392.97	-480.87	-490.28	-499.87	-509.64	-519.61
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 18.125
Beta	1.184
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	10.217
Total Debt	6,778.91
Total Equity	5,750.77
Total Capital	12,529.69
Debt Weighting	54.10
Equity Weighting	45.90
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	680.20	721.84	652.50	675.33	674.08	702.31	716.04	730.05	744.33	758.89
EBIT	675.62	717.46	648.15	671.31	669.30	697.74	711.39	725.30	739.49	753.95
Tax Rate	-0.41%	0.18%	-19.63%	-0.01%	0.39%	-3.90%	-3.90%	-3.90%	-3.90%	-3.90%
EBIAT	678.43	716.20	775.39	671.38	666.71	724.94	739.12	753.58	768.32	783.35
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	-20.31	4.39	30.10	-2.26	-2.30	-2.35	-2.39
Inventories	-	97.17	-105.23	-2.86	-54.96	59.69	-4.15	-4.23	-4.32	-4.40
Accounts Payable	-	1.58	28.79	5.71	-3.64	-9.49	1.55	1.58	1.61	1.64
Capital Expenditure	-421.93	-537.09	-516.63	-463.88	-392.97	-480.87	-490.28	-499.87	-509.64	-519.61
UFCF	261.07	233.58	148.10	194.06	224.30	328.93	248.64	253.50	258.46	263.51
WACC
PV UFCF						309.96	220.79	212.12	203.80	195.80
SUM PV UFCF										1,142.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.12
Free cash flow (t + 1)	268.78
Terminal Value	6,523.91
Present Value of Terminal Value	4,847.54

Intrinsic Value

Enterprise Value	5,990.01
Net Debt	6,692.69
Equity Value	-702.67
Shares Outstanding	317.28
Equity Value Per Share	-2.21