Tourmaline Oil Corp. (TSX:TOU) is one of several mid-cap oil companies set to perform well in 2017 thanks to the recovery of oil prices, but its natural gas operations will be even more important in the new year.

The Calgary-based company could reap the benefits of a natural gas rally that could last throughout the year and beyond, according to bulls. Natural gas is essential to heating homes and providing electricity, and intermediate energy companies north of the border could play an important role in the U.S.

Stateside, the natural gas market is in high demand due to a limited amount of American companies offering the source of energy. The amount of natural gas stored in the U.S. could drop to a figure below its five-year average, resulting in prices that will benefit Tourmaline and other natural gas producers.

As far as its oil business goes, the Alberta energy company could see an expansion in the form of assets that could be attained at a low price. Tourmaline and similar companies may unload non-core assets and turn their focus towards their essential oil assets, taking advantage of low oil prices that are set to rebound. Immediate access to capital is a big reason why this company is set to succeed in its oil business as well.

Tourmaline recently provided an update of its recent activities, including third-quarter plans to run five to six rigs in its Alberta Deep Basin as well as several other rigs in its Peace River Charlie Lake oil play and its B.C Montney complex. The company expects to reduce costs, following its 2016 initiative that saw it cut drilling costs by 10%. The energy producer could reduce these expenses by a further 10% in 2017.

Its credit capacity is currently at $2.1 billion — $700 million of which is not being used at the moment. Apart from reducing costs, Tourmaline expects its debt levels to decline in the coming months as the company’s cash flow expenses are lower in these three months compared to the second quarter.

The company’s production will increase as well in both its oil and natural gas assets. A move that will see production ramped up is the November acquisition of Shell Oil Company assets in the Alberta Deep Basin and Montney Basin for $1.369 billion. This asset will churn out 24,850 barrels of oil equivalent per day (boepd).

The oil producer will also drill 13 horizontals on the Montney assets this year as well as do drilling inventory of 2,147 locations between the Deep Basin and Montney assets. Overall, Tourmaline expects between 250,000 and 260,000 boepd, while increasing this figure to 310,000-320,000 in 2018.

Seven of eight analysts covering TOU stock rate it a “Buy,” while the other one calls the company a “Strong Buy.” The firms have reached an average price target of $41.39 as of January 21. The stock has dipped 11.9% year-to-date, but momentum is slowly shifting in the other direction as TOU gained 1% on January 20. The intermediate energy company has a market capitalization of $8.57 billion.

Tourmaline will soar once oil prices begin surging again, but the natural gas rally is what will really get TOU going for years to come. With lower costs, reduced debt levels, and stronger core assets, this mid-cap energy stock has a bright future ahead.

The post Tourmaline Oil Corp.’s Natural Gas Operations Will Shine in 2017 appeared first on The Motley Fool Canada.

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Toronto-Dominion Bank (TSX:TD)(NYSE:TD) is making the right investments three weeks into the new calendar year as the stock continues to appease investors and analysts.

The Ontario-based financial institution recently raised its stake on PepsiCo, Inc. (NYSE:PEP), which could have an especially strong year among soft-beverage companies. The company has been at the forefront of the health trend over the last five years or so, rebranding its sugary beverages in order to appeal to a wider consumer base, while also releasing new products with lower calories.

Toronto-Dominion Bank increased its stake in PepsiCo by 45.4% during the fiscal third quarter in a filing with the Securities and Exchange Commission. The bank bought 34,344 shares, boosting its stake to a total of 110,045 shares. These shares were worth US$11,984,000 (about $15,950,584) at the end of the most recent quarter.

The soft drink giant is expected to announce earnings of $5.08 per share in its next fiscal year. Additionally, the stock has a dividend of nearly 3% to go along with a strong growth that makes it an attractive buy; the company could potentially top estimates this year.

Toronto-Dominion Bank will benefit greatly from the rise of interest rates in the U.S., and Canadian banks across the board will benefit from the hike, but this institution is expected to be the biggest winner of them all. U.S. Fed rates will likely rise each year between 2017 and 2020 with rates rising in Canada in the fourth quarter of 2017.

Toronto-Dominion Bank will be especially happy to see this happen because it has 44% of deposits. Canadian banks with the most exposure will benefit the most from this rate hike. The company’s net interest rate margins will be higher.

For its most recent quarter, the company is expected to report earnings of 96 cents per share, according to the Wall Street consensus estimate. This figure would top the 93 cents per share Toronto-Dominion Bank earned in its most recent three-month period.

The company is also bolstering its inner workings by promoting from within in the form of Christopher Giamo, the new head of regional commercial banking. Giamo is a financial wiz; he rose quickly through the ranks, joining the bank in 1998 as the head of its middle market lending group in New Jersey.

He had various roles aiding the company’s commercial and retail banking. Eventually, he became the company’s regional president of its New York Metro region, using a risky but effective growth strategy that opened more than 250 Toronto-Dominion Bank locations.

The bank recently announced a dividend offering of almost 41 cents per share to be issued on January 31. This marks a $1.63 annualized dividend to go along with a strong dividend yield of 3.18%. Sixteen research firms are covering TD stock to the tune of a “Buy” rating on a consensus basis with an average price target of $65.75.

Toronto-Dominion Bank is banking on a strong 2017 with smart investments, progressive hires, and growing interest rates in the U.S. that will benefit the company throughout Donald Trump’s presidency. Add a strong dividend yield to the mix, and there’s reason to believe that the bank will pay off in 2017 and beyond.

The post Toronto-Dominion Bank Begins the Year on a Positive Note appeared first on The Motley Fool Canada.

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Canadian Imperial Bank of Commerce (TSX:CM)(NYSE:CM) has the makings of a positive year to go along with the company’s high dividend yield.

The Toronto-based bank has started the year off on the right foot, surging 1.6% by Jan. 19. CIBC has made a move that will pull at the heart strings; the bank announced that it will hire about 500 workers with disabilities in 2017. It is rare that disabled workers appear behind a counter, and this company is hoping to start a movement that will make it a commonplace situation.

The company made the decision following data on a survey commissioned by the bank that revealed that 37% of 1,002 citizens with disabilities were unemployed, while many others had to find a job that did not accurately represent their potential. About 1.8 million people in Ontario have disabilities. CIBC said it is a company that focuses on the strengths of its workers. This move is sure to improve the company’s public image.

The Canadian bank has also appeased customers that have family elsewhere in the world. A partnership has been formed between CIBC and UnionPay International to help clients send money to China in 24 hours with no remittance fees. Both companies acknowledge the importance of remittances that some families rely on.

In addition to offering no upfront fees, the bank will use competitive exchange rates and complete transactions within one business day. There will be a daily transfer limit of $9,999.99 for one bank account. These transactions are completed through the CIBC Global Money Transfer, which has been around since late 2015.

The service is used in more than 45 countries, including Pakistan, the U.S., Sri Lanka, and Vietnam. About one-fifth of Canada’s total global remittances go to China, amounting to US$4.2 billion in 2015. In total, the Asian country received about $431.6 billion in remittances sent from around the world.

Further expanding its international presence, CIBC will add operations in Dublin that will add employment opportunities. The bank hopes to have a larger international business in Ireland at a time when numerous financial firms in London are considering a move to Ireland following the U.K.’s decision to leave the European Union (E.U.) due to the fact that Great Britain could lose the right to conduct financial services across the E.U.

CIBC has more than 43,200 employees around the world with assets amounting to about $501.4 billion at the end of its financial year in October. The company has a market capitalization of $44.39 billion. In its most recent quarter, the company earned $1.91 per share — seven cents below the consensus estimate.

Two analysts rate CM stock a “Buy,” while the average rating for the stock sits at a “Hold” with a consensus price target of $109.62. The company will issue a quarterly dividend on January 27 amounting to $1.24 per share. This represents a $4.96 annualized dividend and a strong yield of 4.48%.

CIBC is making its clients happy with the expansion of its remittances program, while also approaching a new demographic that gives the bank a more humane element. With a high dividend yield and a growing workforce, the company is a stock worth investing in now.

The post Canadian Imperial Bank of Commerce Boasts Strength for Investors appeared first on The Motley Fool Canada.

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Agnico Eagle Mines Ltd. (TSX:AEM)(NYSE:AEM) is headed towards a strong fiscal 2017 following a series of moves that will bolster its portfolio.

Most recently, the company inked a deal to acquire a Cartier Resources Inc. stake amounting to 22.5 million common shares at a price of 20 cents apiece. The move will grant Agnico 19.97% of the issued and outstanding shares on a non-diluted basis. The move will help Cartier expand in its five major Quebec assets, while adding more funding for capital and corporate purposes.

Meanwhile, Agnico will gain certain rights to be a part of some equity financing as well as earn the right to nominate one person to the Cartier board of directors. Agnico will be unable to reach a stake of 19.99% of issued and outstanding common shares in the coming two years. The deal is pending regulatory approval.

The company is one of those stocks that has its fate closely tied to gold prices. AEM shares rose by 55.2%, or $20.08 as gold bullion surged. However, 2017 is expected to be a year of uncertainty for gold. Shares are up 6.6% year-to-date as the price of gold has been near or above the US$1,200 mark.

While the year has started off strong for the precious metal, 2017 could prove to be a volatile year as the U.S. dollar is expected to gain in strength a bit. Nevertheless, the fact that gold grew 9% in 2016 can’t be ignored. Additionally, there has been recent uncertainty regarding global markets, and gold tends to rise when this is the case.

Agnico has been spending recently as it gears up for the future, including the acquisition of Sonoro Metals Corp.’s Chipriona asset in Mexico. The company will be paying Sonoro $4 million as well as a 1% net smelter returns royalty that can be acquired by Agnico for $1.5 million.

The project has 515 hectares in the Mulatos Mining District in Sonora state, amounting to a group of concessions as well as private land that is near Agnico’s La India gold mine. The payment will be made in four installments, beginning with a $650,000 sum, followed by $650,000, $800,000, and $1,90,000 payments over the coming months.

Agnico’s most recent dividend offering was issued in mid-December, amounting to eight cents per share. The company has a price-to-earnings growth of 2.93 and a dividend yield of 0.88%. The company is expected to report fiscal fourth-quarter results for 2016 on February 15.

The consensus estimate calls for earnings of 16 cents per share for the three-month period. This figure is lower than it was a month ago, but it is still a stock worth investing in considering what lies ahead for the company. Eleven analysts give Agnico an average rating of a “Buy” and a price target of $63.25.

For the new fiscal year, analysts are calling for earnings of 55 cents per share in the first quarter of 2017. While there is still some uncertainty surrounding the price of gold, current trends shouldn’t be ignored, and AEM is worth investing in now. Expect the company’s numerous acquisitions to pay dividends this year.

The post Agnico Eagle Mines Ltd.: A Stock to Buy as Earnings Approach appeared first on The Motley Fool Canada.

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Yamana Gold Inc. (TSX:YRI)(NYSE:AUY) shares gained on January 19 as the company announced that the worker strike in a Chilean mine is over.

For nearly two weeks, company workers located at the El Peñón mine in northern Chile staged a sit-in in order to negotiate their wages. These workers were part of two unions, and Yamana Gold negotiated with these organizations in order to reach an agreement that would appease both parties. The strike began on January 7.

Last Friday, operations partially resumed at the mine to pave the way for negotiations. New deals were inked with the workers, but, most importantly, Yamana Gold said that the strike did not have a “significant impact” on mine and consolidated output. The company added that it will recover from operations at El Peñón in the short and long term.

The gold miner released its preliminary fourth-quarter and full-year results a week ago, revealing that it was a strong period for the company. Consolidated production met projections as Yamana Gold produced seven million ounces of silver and 116 million pounds of copper. The company was able to advance its progress at Cerro Moro, located in Argentina, which is its next potential major asset that could be in production by 2018.

Yamana Gold also managed to produce fiscal full-year production results that were in line with expectations for 2016. The total cost of sales per ounce of gold sold amounted to $1,011, while cash costs per ounce of gold were $666. All-in sustaining cash costs per ounce of gold will come in at about $914. Earnings will be released after February 16th’s market close.

It was also a year of streamlining operations by focusing on its core assets through the sale of of the Mercedes mine in Mexico. The deal amounted to $140 million at the time of the agreement; Yamana Gold netted in cash and shares of Premier Gold Mines Ltd., the company that acquired the asset.

Yamana Gold continues its expansion with the recent announcement of the spin-off of Brio Gold Inc. (TSX:BRIO). Shareholders made the move at a $3.25 price before December 22, acquiring 17,324,507 of Brio Gold’s shares. From the spin-off, Yamana Gold netted $56,304,648.

The move marks an effort by the company to reduce debt levels as the asset will aid its financial standing. By the end of its most recent quarter, Yamana Gold had a debt totaling $1.75 billion and $317.3 million in cash. Brio Gold operates at multiple mines in Brazil, including Fazenda Brasileiro, Pilar, and C1 Santa Luz.

Yamana Gold has a market capitalization of $3.91 billion with shares trading at $4.18 as of January 19. YRI stock has begun the year on a bright note, surging 11.7% year-to-date as well as 23.1% over the last month. Most analysts rate the stock as either a “Buy” or a “Hold” with an average price target of $4.61.

With the improving situation of gold and Yamana Gold gaining some momentum lately, it could be the right time to invest in this company. It has been an important period for the company; it has streamlined operations and expanded in a bid to reduce debt and increase profitability.

The post Yamana Gold Inc.: Worker Strike Over, Stock Starts Year off Strong appeared first on The Motley Fool Canada.

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BlackBerry Ltd. (TSX:BB)(NASDAQ:BBRY) hasn’t been a leader in the smartphone industry for years now, but investors are hoping the company’s plans to rebrand itself could pave the way for a profitable future.

The company no longer relies on its smartphone business to survive. BlackBerry is looking to keep up with the rest of the tech industry by joining the race to launch autonomous driving technology. With investments on artificial intelligence and advanced entertainment systems, the concept of a self-driving vehicle is to the future what smartphones once meant to society.

At the CES show earlier this month, the company announced plans to launch an advanced and secure software platform that would work with autonomous driving and connected cars. Its technology would essentially connect you to your vehicle the same way you are connected to a computer.

And despite no longer being a manufacturer of smartphones, BlackBerry devices will still exist.

The new company phone will be called the BlackBerry Mercury, but it isn’t actually being built by BlackBerry. It is the last phone that BlackBerry will design and engineer in house; a company called TCL is manufacturing the product. The company’s iconic QWERTY keyboard will likely still be available, along with HD display, a 4.5-inch screen, 32GB of storage and 3GB of RAM, according to rumours.

BlackBerry’s software push is what’s keeping it going, and the company is working on its own operating system (OS). While the Mercury will likely don Android, the phone will come equipped with its own security software.

However, the BB10 OS will still be in existence. Alex Thurber, senior vice president for global device sales at BlackBerry, said that BB10 is popular among certain markets, and the company may continue supporting and investing in the OS.

In regards to BlackBerry’s ambitions in the automotive industry, it’s worth considering that the company is still plugging along with the ownership of the QNX Operating System. By the end of 2014, more than 60 million vehicles were running on the platform, and more than 40 companies are using the software in their vehicles.

The technology is among the most advanced in the connected-car market, including infotainment, mapping and GPS technology, telematics and more. QNX has a market share amounting to roughly 47%. BlackBerry clarified that it is not in the business of building cars or hardware for vehicles but making an effective and smart software platform for cars that will work in unison with autonomous driving technology.

Third-quarter earnings were below expectations in the revenue category, but that fact only tells a small part of the story regarding BlackBerry’s software push. For the fiscal year 2016, the company recently raised its forecast to break even for the 12 months. The previous guidance projected a loss of five cents per share for the year.

A January 13 report stated BB stock should have an average price target of $10, with several firms such as TD Securities Inc rating the company a “Buy.” Between its progress and advancement in the automotive industry and its presence in software for smart devices, BlackBerry could see a profit in 2017 following the transition that 2016 brought with it.

The post BlackBerry Ltd. Looking to Rebrand Itself With Smart Software appeared first on The Motley Fool Canada.

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Inter Pipeline Ltd. (TSX:IPL) is giving investors a reason to be happy about owning shares of IPL.

The company recently announced a monthly dividend offering of approximately 14 cents per share on January 19. Shareholders on record as of February 19 will receive the figure on that day, which represents an$1.62 annualized dividend with an incredible yield of 5.92%. Inter Pipeline owns natural gas liquids (NGLs) assets, many of which are scattered throughout Europe.

The Calgary-based energy company recently announced plans to invest more than $40 million on a series of projects to help it solidify and expand its presence in Europe. The continent is especially important for Inter Pipeline as demand for storage services at its European terminals is higher than ever. The $40 million will be spent in 2017.

The move follows two contracts inked in the second half of 2016 at the Seal Sands terminal in the U.K. About 175,000 barrels of new chemical storage capacity will be completed in the European country. Half of the sum that the company is investing will be used to build five new storage tanks.

A new capacity is slated to be functioning in the second or third quarter of the year. The rest of the cash will be used on a series of small organic growth projects in Germany, Denmark, and Sweden. Inter Pipeline is also making moves in its home province.

In 2017, the company invest in a propane degydrogenation (PDH) facility in Alberta, according to a statement issued by the company about a month ago. Inter Pipeline will also invest $65 million to expand its oil battery connections, while adding services and raising its storage capacity for its oil pipelines segment.

Another expansion opportunity that the company is set to cash in on is the acquisition of a 15% stake in the Cold Lake pipeline system. Inter Pipeline is shelling out $527.5 million in cash and shares to Canadian Natural Resources Limited.

The move will grant Inter Pipeline 100% ownership of the assets. Expect the deal to close by the end of the year. The company is also working towards the construction of a $125 million pipeline linked with a Kirby North oil sands production facility near Conklin, Alberta. This pipeline will be in business in the first quarter of 2020.

The stock has been on the decline lately, but it is offering a great dividend yield that can’t be ignored. Three of four analysts covering Inter Pipeline rate it a “Buy” for a consensus rating of a “Buy,” while one other rates it a “Hold.” The average price target is set at $28.30.

With everything the company has in motion right now, it would be wise to cash in on this stock before the February 15 date of the dividend offering. With a commitment towards organic growth, while it maintains its focus on increasing profitability, Inter Pipeline is primed to bounce back from an early hitch in the year with the pieces falling into place throughout the rest of 2017.

The post Inter Pipeline Ltd.: A Company on the Rise With a High Dividend Yield appeared first on The Motley Fool Canada.

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Bombardier, Inc. (TSX:BBD.A)(TSX:BBD.B) finished 2016 in style, netting numerous deals that helped the stock surge, and 2017 has been no different.

BBD.A shares have already risen 16.3% in 2017, while BBD.B stock is up 22.7% in the new year. The company recently passed the Challenger maintenance milestone in which it logged more than 7.3 million flight hours, while successfully passing 4.3 million landing, proving the company is going strong.

Bombardier also announced that its PRIMOVE e-bus passes have passed the 500,000 km milestone. The vehicles help to lower carbon emissions because they are electric, ensuring that the future of the automotive industry in Canada is greener. So far, the PRIMOVE buses have saved 527 tonnes of CO2 emissions. These products are popular, affordable, and convenient.

The company also reassured the head of the Toronto Transmit Commission that the delay of its $1.2 billion order of streetcars is still on schedule to arrive by the 2019 date originally offered by Bombardier. Additionally, the company has several new projects in the works that look promising.

It’s been a good week for the Montreal-based transportation equipment manufacturer; it has inked a deal that will net Paris 71 new trains. The French capital’s deal with Bombardier is worth approximately $1.6 billion with Bombardier raking in about $480 million. The project is expected to churn out working trains in 2021.

Alstom SA is part of the consortium that is building this commuter trail, which will offer 255 two-tier trains overall after two other European companies exited negotiations for the project. The STIF transit authority on Paris’s Ile-de-France will cover this agreement. Bombardier’s share is about 30%, and the company will employ about 2,000 workers for both companies, helping to increase Bombardier’s footprint in Europe.

Also in Europe, Bombardier’s Berlin rail division has inked a deal with Austrian Federal Railways that could result in about 300 trains worth up to US$1.9 billion. The starting order is worth US$156 million for 21 Talent 3 electric trains. These vehicles will have a higher seating capacity than the old model by 50%, and they will be active in 2019, helping to link rural and urban areas as well as countries nearby.

Bombardier is proving that it can roll with the punches as it has revamped the marketing of 13 CRJ900 aircraft previously owned by the transportation provider, now heading towards Regional One. Two of these vessels were owned by Bombardier, while 11 were marketed once again through a third party. Eight of these aircraft were delivered in 2016, one was delivered this year, and the other four will be delivered later this year.

Bombardier is worth investing in now as 2017 continues to be profitable to investors. Between its projects in Canada and Europe, the transportation services provider is busy expanding its presence globally and adding to its workforce at home and abroad. As of January 18, BBD.A stock is trading at $2.72 a share, while BBD.B stock is trading at $2.65 per share.

The post Bombardier, Inc.’s Business Keeps on Booming in the New Year appeared first on The Motley Fool Canada.

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Pattern Energy Group Inc. (TSX:PEG)(NASDAQ:PEGI) could be an investment worth making due to its projects that will pay dividends in the future.

Earlier this week, the company announced plans to fund a number of wind and solar energy plants through a bond issue. The company is hoping to raise $350 million and proposing to issue senior notes to institutional investors due in 2024. The move is part of a broader effort by Pattern Energy to invest in greener opportunities.

One project that it will focus on is the acquisition of the 324 MW Broadview wind farm in New Mexico that will cost about US$215 million. Additionally, the company will repay a credit facility about US$128 million. These funds were used to buy the Ontario 180 MW Armow Project. Pattern Energy has 18 wind farms in Canada, the U.S., and Chile, amounting to a total capacity of 2.6 GW.

Last month, the company announced another move for the future in the form of the Southern Cross Transmission project. The asset will help improve the Louisiana and Mississippi’s local economies, injecting US$3.9 billion into the communities through direct and indirect manners.

Pattern Energy will bolster its portfolio while simultaneously producing US$1.5 billion to benefit the economy through the development and construction of the project. The project will generate US$633 million in local operations and maintenance for its first year.

More than 650 jobs will be created, and the area’s electricity cost will be lower. Although the details are being hashed out now, the concept will not begin to come to fruition until 2018, and it won’t deliver power and rake in profit until 2021. The Southern Cross Transmission asset will also generate an average annual property tax of US$14.7 million.

Pattern Energy has also inked a deal to buy a 90 MW interest in the 180 MW Armow wind power facility in Ontario as part of a $132 million funding opportunity. The deal will help expand the company’s total owned capacity to about 2,644 MW thanks to the two new interests it has agreed to buy. Samsung Renewable Energy and Pattern Energy will own the operation in unison.

The company’s Amazon Wind Farm Fowler Ridge recently received an award by POWER Magazine regarding renewable projects. About 175 workers were part of the construction site with this figure reaching 300 during its busiest periods. The location will help to add about $45 million to the local economy over 25 years through property taxes and landowner royalties.

The move further demonstrates Pattern Energy’s commitment to sustainability, while boosting its balance sheet. The stock has an average rating a “Buy” with nine analysts rating it as so and three others rating it a “Hold.” It has an average price target of $26.56.

Pattern Energy is a stock worth delving into now as the company appears to have some bright years ahead. Its multiple initiatives will help to fuel local economies, increase profitability, and help define the future of energy with its sustainable projects.

The post It Would Be Wise to Buy Pattern Energy Group Inc. Now appeared first on The Motley Fool Canada.

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RioCan Real Estate Investment Trust (TSX:REI.UN) continues to make its mark in Canada, expanding its presence even further.

The company’s occupancy rate rose by 2.1% to 95.3% in the third quarter of fiscal year 2016 compared to the previous year’s quarter. It has been a busy year for RioCan REIT; the company has been able to reduce debt levels while continuing to be an attractive dividend stock.

The company recently announced a public offering.

RioCan REIT is issuing out $300 million of its Series Y senior unsecured debentures, which carry a coupon rate of 2.83% and will mature on October 3, 2022. These were sold at a price of $99.997 per $100 principal amount with a strong yield of 2.831% if held until mature. The company has a market capitalization of $8.56 billion with an enterprise value of about $15 billion as of September 30, 2016.

The company owns a large amount of shopping centres around Canada, amounting to more than 300 properties for retail and commercial businesses. At least 15 businesses are in the process of being developed, including a recent lease transaction related to an Ontario location — the King Portland Centre in Toronto.

RioCan REIT and Allied Properties REIT are developing a project for Indigo Books & Music amounting to more than 78,000 square feet of gross leasable area (GLA) in the new office. The new structure will be made up of about 256,173 square feet of office GLA and 13,035 square feet of retail GLA as well as 116 rental residential units.

These locations will be top of the line in their operation, while maintaining the highest standards of safety and health, and remaining environmentally friendly. It is projects such as this one that have seen RioCan REIT improve its balance sheet while reducing debt. Each of the two companies involved in the project will own an undivided 50% interest in the rental property.

The project is slated to open early in 2019 with RioCan REIT focusing on the retail and residential elements of the locale. The quality of the real estate is key to ensuring that the company garners lucrative deals, but the area in which it is located is also key. The King Portland Centre is located in the downtown west area of Toronto.

RioCan REIT CEO Edward Sonshine noted that the company wants to be associated with one of the most exciting areas of the province for its tenants to ensure they are located in an area that attracts customers. The company has also inked agreements in nearby areas where it has experienced positive results, including Shoppes on Queen West.

This location is located near the King Portland Centre, and it is an example of what is necessary to be successful in an urban environment. Allied will be responsible for the office aspect of this agreement, which will help make the workers at the locale feel at work, ensuring that it is a positive experience for consumers, tenants, and workers. This combination results in a homely feel to the shopping experience.

Seven analysts are covering REI.UN stock with five rating it a “Buy,” while two rate it a “Hold” for an average “Buy” rating. The price target is set at $29.80 on an average basis. With the quality of real estate and the professionalism of the company, investors have plenty to look forward to as the company continues to reduce its debt while returning a high dividend yield.

Shares are up 12.21% over the last 12 months.

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