rei.un – Taking advantage of the Amazon effect

rei.un – Taking advantage of the Amazon effect

Amazon has done a lot of things for the market, good and bad. Entire sectors have tanked when amazon announces a new acquisition or plan. They buy whole foods and all the sudden grocery stores are going down. Retail is dead some say……..

Well last week I had some errands to do before we went camping, none of which included amazon. I needed to get a haircut, to look sharp. 6 beers left in the fridge, that ain’t enough. Off to the LCBO to restock. I blew a fuse in my car last time when I used a converter to pump up our air mattress, so off to Canadian tire for fuses and a new lure for the walleye! Got to have some cash right? I went to rbc and withdrew some. Groceries yup I needed them as well, Walmart is right there. Sweet!

You know what all these places had in common?


Yup they all tend to be in Riocan’s plaza’s. But retail is dead isn’t it? I tell ya based on Riocan’s stock price you would think its getting there. Only thing is all those places I mentioned I like doing business with. They provide me a great service and I don’t think they are going anywhere. Most plaza’s owned by RIOCAN I see are full occupancy, even those empty target’s are now operating with new tenants. In my opinion Riocan is a great investment especially at their current price.

I added another 100 shares in Riocan (ticker rei.un) last week when they dropped down to 23.91 per share. Yup that’s only 5 cents off their 52 week low. They pay a monthly dividend of .1175 per share and this equates to a generous 5.9% yield. These 100 extra shares will bring in another $141 per year in forward dividends.

More than Just Retail

While retail is not dead, it certainly is changing. Rei.un is more than just retail though, they have decided to diversify more into the residential space, which in my opinion is a great move. People needs housing and combining both retail and housing is a great idea. Think launch arcos from sim city 2000. It will be fantastic for the residents and retailers as a whole.

While it may take awhile to implement these moves, the directions seems right.


I think rei.un is a great buy as they continue to generate solid occupancy rates and diversify more into the residential space. Also love that they are a monthly dividend company as your dollars can compound even faster.

While amazon is a game changer, I think there will always be a space for brick and mortar stores.

To be honest I have never bought anything off of amazon, Maybe I’m weird. I was shocked about a month ago when my dad needed something and just went online to amazon and bought something. He was even a amazon prime member, he stated they have bought a couple things from them now.

I’m curious how many of you have bought something off of amazon? Do you see retail dying?


19 Responses

  1. Leo T. Ly says:

    The way i see it is that Amazon may have bought Whole Foods, that does mean that they will serve every segment of the market. Most of the grocery chains in Canada has multiple brands that serve different regions and segments. One Whole Foods chain will not wipe out the whole market. The last time I checked, prices at While Foods cost an arm and a leg. So even if Amazon acquired Whole Foods, they will not be competing in the segment as No Frills. It’s a good opportunity to buy when stock prices are down.

    I have owned Riocan for quite a few years now.

  2. Great buy! I believe Riocan will do well in a long run. I owe some shares in REI and I’m thinking of adding more. In my city, most of the Target locations are replaced with new tenants.

  3. Personal Alpha Investments says:

    Riocan definitely looks good from a dividend and a yield perspective.

    I am frequent buyer at Amazon, but retail will still be around.

    Stores like Costco, Walmart, etc. you need them around as some of the purchases actually need a physical environment.

  4. Interesting read PCI. Amazing is definitely bringing the competition to the retail environment. It will be interesting to see which companies can withstand or even thrive in the storm. I’m an amazon customer myself but don’t think retail is dying – not by a long shot. Changing yes. Evolving, absolutely. But not dying.

    • Hey port thanks for the comment. Do you always search for stuff on amazon first? Or for convience sake go to stores alot?

      • It actually depend on what I’m shopping for. Even if I am shopping for an item in store, if possible, I would go to Amazon for customer reviews. Those reviews are very influential in whether I buy the product. However, somethings I won’t buy on Amazon include shoes and clothes. I like to try things on. Amazon is great for when I want to buy gifts for friends or family. I live away from my mom, for example, so if I want to send her a gift, I purchase it on Amazon and select the gift wrap option. I’m sure other companies do the same thing, but if I want to buy something online, the first place I go to is Amazon. Just like if I want to search something online, the first place I go is Google.

  5. John R says:

    AMZN even at the price it is today must surely be a good stock to buy considering the past 10 years an investment of $10,000 would now be worth $129,687.60 & that is without DRIP or any stock split, making it an average yearly return of 29.19%

    Last closing price was $1002.50 – YTD is approx 30%

    The question as always is ‘will AMZN be a good investment over the next 5 to 10 years?

    On Riocan at $23.90, I wouldn’t be buying it just yet, at least not till it gets down to the $20 mark or lower. What is the bottom for REI.UN?

  6. Nice buy. That adds a lot of dividend income for sure. And a monthly dividend payer is awesome. The monthly compounding will build up fast. Nice yield too!

  7. Cris says:

    Right now seems that most of the REITs are out of favor… I see REITs without good fundamentals going up and viceversa… sometime the market is unexpected.

    During the last few days there were a few corrections, and I really believe that this trend will continue for a while… here in Canada. USA market will do quite good until end of the year when Trump will prove that is not capable of doing too much with the tax plan.
    Somehow I agree with John that any correction for the big players in USA is a buy opportunity…
    Does anybody have a stock recommendation?
    From another perspective sometime is recommended to invest in the lest perform sectors of the year… telecom, REITs, energy (special equipment), consumer staples(special food sector), utilities… all these sectors are sensible to rates but, everybody spending money in these sectors…
    One more thing to remember is that September is considered the worst month for investments… for this reason until September I will buy only if a great opportunity will come…
    Enjoy the summer for now!

    • Hey cris thanks for your input. As for stock buys im looking at ibm at the moment its close to 52 week low and has a great dividend. Those sectors you mentiones are you saying buy those or everyome is buying those. Cheers

    • John R says:

      @ cris “does anybody have a stock recommendation”?

      Not really a recommendation, more a look at this suggestion & paper trade it.

      $5000USD divided equally$2500 into SVXY $92/share = 27 shares & UVXY $29/share = 86 shares

      Also before year-end $5000Cdn in DGS.TSX when it’s $7/share

      I shall come back to this post on the last trading day of 2017 to see what if any gain or loss was made

  8. Jay says:

    Interesting investment idea – agree that they definitely have some premium properties. Thanks for sharing and have a great long weekend!

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