Target's Abrupt Exit Is Just a Bump in the Road for RioCan

“We certainly could have done without Target's sudden withdrawal from Canada,” RioCan REIT chief Edward Sonshine told investors in a call Friday, saying it's "tragic" for many of Target's employees and small suppliers. For RioCan, though, the departure is "just a bump in the road generating a lot of work, and at the end of the day with no real impact." RioCan has 26 Target locations, under 2% of its rental revenue. All but one of these leases are guaranteed through an indemnity arrangement with Target (and the one not covered is guaranteed by Walmart Canada.) RioCan had a Q4 profit of $172M, down from $265M a year ago. Its funds from operations rose to $130M, up from $124M in the same period last year.

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