Acquisitions a growth driver: RioCan CEO
2:49 PM, E.T. | February 15, 2012
RioCan REIT says acquisitions drove its 20 percent spike fourth quarter profits.
In 2011, it made $1.1 billion in acquisitions after making a $1 billion in acquisitions the year before, CEO Ed Sonshine tells BNN. But he says it will be difficult to continue that this year.
“We’ve timed those acquisitions pretty well because the markets have gotten stronger. The pricing has gone up. So, we’re expecting more in the neighbourhood of $600 million in 2012,” he says.
When looking for new acquisition opportunities, RioCan will increasingly focus on the U.S. “The Canadian market has become extremely competitive,” he says.
Pension funds have become “invaders” of sorts in this space, Sonshine says. “The concept of buying a well-located, well-leased piece of property where you can never go to sleep on the piece of property, but you can at least rest easy, becomes more attractive.”