Riocan Real Estate Investment Trust (TSX:REI.UN) Beneish M-Score : -1.11 (As of Dec. 12, 2024)

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What is Riocan Real Estate Investment Trust Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Warning Sign:

Beneish M-Score -1.11 higher than -1.78, which implies that the company might have manipulated its financial results.

The historical rank and industry rank for Riocan Real Estate Investment Trust's Beneish M-Score or its related term are showing as below:

TSX:REI.UN' s Beneish M-Score Range Over the Past 10 Years
Min: -3.31 Med: -2.58 Max: 3.51
Current: -1.11

During the past 13 years, the highest Beneish M-Score of Riocan Real Estate Investment Trust was 3.51. The lowest was -3.31. And the median was -2.58.

Riocan Real Estate Investment Trust Beneish M-Score Historical Data

The historical data trend for Riocan Real Estate Investment Trust's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Riocan Real Estate Investment Trust Beneish M-Score Chart

Riocan Real Estate Investment Trust Annual Data

Trend

Dec14

Dec15

Dec16

Dec17

Dec18

Dec19

Dec20

Dec21

Dec22

Dec23

Beneish M-Score

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-1.46

-2.09

-2.37

-2.51

-2.76

Riocan Real Estate Investment Trust Quarterly Data
	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24
Beneish M-Score	Get a 7-Day Free Trial															-3.31	-2.76	-2.33	-1.89	-1.11

Competitive Comparison of Riocan Real Estate Investment Trust's Beneish M-Score

For the REIT - Retail subindustry, Riocan Real Estate Investment Trust's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Riocan Real Estate Investment Trust's Beneish M-Score Distribution in the REITs Industry

For the REITs industry and Real Estate sector, Riocan Real Estate Investment Trust's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where Riocan Real Estate Investment Trust's Beneish M-Score falls into.

Riocan Real Estate Investment Trust Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of Riocan Real Estate Investment Trust for today is based on a combination of the following eight different indices:

-4.84

0.92 * DSRI

0.528 * GMI

0.404 * AQI

0.892 * SGI

0.115 * DEPI

-4.84

0.92 * 2.4268

0.528 * 1.0015

0.404 * 1.0023

0.892 * 1.0403

0.115 * 1

0.172 * SGAI

4.679 * TATA

0.327 * LVGI

0.172 * 0.9695

4.679 * 0.005298

0.327 * 1.0344

-1.11

This Year (Sep24) TTM:

Last Year (Sep23) TTM:

Total Receivables was C$182 Mil.
Revenue was 286.339 + 292.198 + 303.387 + 296.91 = C$1,179 Mil.
Gross Profit was 182.873 + 185.688 + 176.415 + 186.074 = C$731 Mil.
Total Current Assets was C$647 Mil.
Total Assets was C$15,285 Mil.
Property, Plant and Equipment(Net PPE) was C$0 Mil.
Depreciation, Depletion and Amortization(DDA) was C$2 Mil.
Selling, General, & Admin. Expense(SGA) was C$68 Mil.
Total Current Liabilities was C$2,052 Mil.
Long-Term Debt & Capital Lease Obligation was C$5,604 Mil.
Net Income was 96.858 + 122.363 + 128.596 + -117.659 = C$230 Mil.
Non Operating Income was -15.129 + 7.932 + 21.388 + -232.597 = C$-218 Mil.
Cash Flow from Operations was 86.322 + 70.757 + 88.085 + 122.416 = C$368 Mil.

Total Receivables was C$72 Mil.
Revenue was 271.409 + 276.052 + 279.5 + 306.187 = C$1,133 Mil.
Gross Profit was 176.255 + 178.836 + 173.243 + 175.421 = C$704 Mil.
Total Current Assets was C$671 Mil.
Total Assets was C$15,086 Mil.
Property, Plant and Equipment(Net PPE) was C$0 Mil.
Depreciation, Depletion and Amortization(DDA) was C$3 Mil.
Selling, General, & Admin. Expense(SGA) was C$67 Mil.
Total Current Liabilities was C$1,659 Mil.
Long-Term Debt & Capital Lease Obligation was C$5,646 Mil.

1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI	=	(Receivables_t / Revenue_t)	/	(Receivables_t-1 / Revenue_t-1)
	=	(181.976 / 1178.834)	/	(72.079 / 1133.148)
	=	0.154369	/	0.06361
	=	2.4268

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI	=	GrossMargin_t-1	/	GrossMargin_t
	=	(GrossProfit_t-1 / Revenue_t-1)	/	(GrossProfit_t / Revenue_t)
	=	(703.755 / 1133.148)	/	(731.05 / 1178.834)
	=	0.621062	/	0.620147
	=	1.0015

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI	=	(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t)	/	(1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
	=	(1 - (646.643 + 0) / 15284.804)	/	(1 - (671.292 + 0) / 15086.403)
	=	0.957694	/	0.955504
	=	1.0023

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI	=	Sales_t	/	Sales_t-1
	=	Revenue_t	/	Revenue_t-1
	=	1178.834	/	1133.148
	=	1.0403

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI	=	(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1))	/	(Depreciation_t / (Depreciaton_t + PPE_t))
	=	(2.712 / (2.712 + 0))	/	(1.737 / (1.737 + 0))
	=	1	/	1
	=	1

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI	=	(SGA_t / Sales_t)	/	(SGA_t-1 /Sales_t-1)
	=	(67.686 / 1178.834)	/	(67.11 / 1133.148)
	=	0.057418	/	0.059224
	=	0.9695

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI	=	((LTD_t + CurrentLiabilities_t) / TotalAssets_t)	/	((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
	=	((5603.812 + 2051.537) / 15284.804)	/	((5645.9 + 1659.091) / 15086.403)
	=	0.500847	/	0.48421
	=	1.0344

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA	=	(IncomefromContinuingOperations_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(NetIncome_t - NonOperatingIncome_t	-	CashFlowsfromOperations_t)	/	TotalAssets_t
	=	(230.158 - -218.406	-	367.58)	/	15284.804
	=	0.005298

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Riocan Real Estate Investment Trust has a M-score of -1.11 signals that the company is likely to be a manipulator.

Riocan Real Estate Investment Trust Beneish M-Score Related Terms

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Riocan Real Estate Investment Trust Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Real Estate » REITs » Riocan Real Estate Investment Trust (TSX:REI.UN) » Definitions » Beneish M-Score

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RIOCF:USA R7G:Germany

Address

2300 Yonge Street, Suite 500, RioCan Yonge Eglinton Centre, Toronto, ON, CAN, M4P 1E4

Website

https://www.riocan.com

Riocan Real Estate Investment Trust is a Canadian real estate investment trust which owns, develops, and operates Canada's portfolio of retail-focused, increasingly mixed-use properties. The REIT's property portfolio includes shopping centers and mixed-use developments, with majority of its properties located in Ontario, Canada. Riocan's tenants consist of grocery stores, supermarkets, restaurants, cinemas, pharmacies, and corporates.

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