RioCan hit by Target, Mexx closures

TORONTO — RioCan REIT, one of Canada’s largest commercial landlords, is scrambling to fill stores vacated by Target’s departure from Canada, the Canadian Press reports. The outgoing quarter saw a higher than usual volume of closures for RioCan, includings its 26 Target stores and 18 Mexx fashion outlets. The shuttering of the Target stores, which accounted for less than two percent of the company’s rental revenue, “is tragic for many of their employees and small suppliers, for RioCan it is just a bump in the road generating a lot of work, and at the end of the day with no real impact,” said CEO Edward Sonshine. The REIT has been able to fill some vacancies with higher-paying tenants, but Q4 profits were still down to $172 million from $265 million a year ago.