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Risks
1. Interest Rate Risk: Changes in the global interest rate environment could affect RioCanâs ability to refinance existing debt and acquire new properties.
2. Rental Rates: As a REIT, RioCan is dependent on maintaining rental rates that enable it to generate cash flow from its tenants. Rising rental rates could make some of RioCanâs properties unprofitable, while falling rental rates could put a strain on liquidity.
3. Competition: RioCan competes against other REITs, commercial developers, and developers of retail space, which could impact its ability to secure tenants and acquire properties.
4. Tenant Risk: If RioCanâs tenants default on rent payments or fail to renew their leases, RioCanâs cash flows could be adversely affected.
5. Regulatory Risk: Changes to local zoning laws, taxation regimes, or land-use regulations could affect RioCanâs ability to build or operate its properties.