Investors Press Releases Press Release Details

TORONTO--(BUSINESS WIRE)-- RioCan Real Estate Investment Trust (“RioCan" or the "Trust”) (TSX: REI.UN) announced today its financial results for the three months and year ended December 31, 2025.

• New leasing spreads of 37.3% for the year drove blended leasing spreads to 21.1%, reflecting strong supply/demand fundamentals
• Commercial Same Property NOI growth of 4.5% for the Fourth Quarter supported full year growth of 3.6%
• $741.7 millionof Total Capital Repatriation drove Adjusted Spot Debt to Adjusted EBITDA down to 8.6x
• $178.6 million in Unit repurchases completed in 2025 and year-to-date 2026

“RioCan delivered another strong year, highlighted by exceptional operating results and disciplined execution of our capital recycling strategy. Our results underscore the strength of our core retail platform, which serves as the foundation for the strategic plan we announced at our Investor Day," said Jonathan Gitlin, President and CEO of RioCan. “We enter 2026 with momentum fueled by intensifying demand from leading retailers amid a broader market shortage of well-located retail space. This dynamic positions RioCan to generate sustainable, long-term value for our Unitholders."

• Full year FFO per unit (diluted) increased by 5.1%, driven by strong operating performance and the accretive impact of unit buybacks completed during the year. Results were further supported by higher Inventory-Related Gains ¹. These positive contributors were partially offset by higher interest expenses and lower interest income. In addition, G&A savings related to RioCan's 2024 organizational restructuring largely offset lower FFO from former HBC operations, consistent with the expectations provided in the full-year guidance for these assets.
• Full year Core FFO per unit (diluted) benefitted primarily from Commercial Same Property NOI growth ¹ of 3.6% and the accretive impact of unit buybacks. The impact of asset dispositions, net of acquisitions, higher interest expense and lower interest income offset these benefits. We continue to adhere to our Investor Day guidance of ≥ 3.5% cumulative average growth rate Core FFO per unit (diluted) for 2026-2028.
• Net income per unit for the year of $0.23 was $1.35 per unit lower than the same period last year, reflecting Net Valuation Losses ¹ totalling $443.1 million or $1.50 per unit relating to fair value of investment properties and the RC-HBC LP .
• Adjusted Spot Debt to Adjusted EBITDA ¹ improved to 8.64x, the ratio of unsecured to secured debt was 63% to 37% and the FFO Payout Ratio ¹ was 61.6%. RioCan's strong balance sheet, reinforced by $1.5 billion of Liquidity ¹ and $9.2 billion in Unencumbered Assets ¹, enables flexibility and optimization of capital allocation.

Financial Outlook

Selected Financial and Operational Highlights

• Occupancy: Committed retail and portfolio occupancy of 98.5% and 97.8%, respectively.
• Leasing Progress: 5.0 million square feet of leasing activity in 2025, including 4.0 million square feet of renewals.
• Leasing Spreads: Full year blended leasing spread increased to 21.1%. This record performance was driven by new and renewal leasing spreads of 37.3% and 17.8%, respectively. The average blended leasing spread of 24.7% on new leases and market renewals (comprising 65% of expiring leases) highlights RioCan's ability to extract the mark-to-market opportunity embedded within its portfolio.
• Retention Ratio: A high retention ratio of 93.1%. Best-in-class tenants retained with minimal capital outlay; high renewal leasing spreads validate sustained demand.
• Average Net Rent Per Square Foot for new leasing: $29.65 for the year captured mark-to-market gains, and generated a 28% premium compared to average net rent per occupied square foot of $23.18 at year end.
• Same Property NOI: Commercial Same Property NOI ¹ grew 4.5% in the Fourth Quarter, the second consecutive quarter at or above that level, contributing to 3.6% growth for the year and highlighting the strength of our core assets and success of our leasing strategy.
• Adjusted G&A Expense as a percentage of rental revenue¹: Improved to 3.8% on a year-to-date basis, down from 4.1% in the comparable prior year period and is expected to be ~4% on a go-forward basis.
• Capital Recycling: For the year ended December 31, 2025, Total Capital Repatriation ¹ was $741.7 million including Total Capital Repatriation from RioCan Living ¹ of $628.3 million and $113.4 million from the sale of lower-growth assets.
• Total Capital Repatriation from RioCan Living was generated through the sale of the Trust's interests in seven RioCan Living properties and final condominium closings. Successful condominium closings reduced the Trust's residual inventory balance related to condominium projects under construction to $130 million on a proportionate basis or 2% of NAV.
• Subsequent to year end, the Trust entered into a firm agreement to sell The Underwood Apartments in Calgary, Alberta for proceeds of $46.5 million, with closing expected in the first half of 2026. This transaction brings the cumulative number of sold and firm RioCan Living properties to nine and marks the halfway point to the $1.3 billion to $1.4 billion capital repatriation target.
• The additional $113.4 million of lower-growth assets sold during 2025 included two cinema-anchored properties and two office buildings in secondary markets.
• Proceeds from these capital repatriation activities have been reinvested into accretive uses including the repurchase of Trust Units.
• Normal Course Issuer Bid (NCIB): During the year ended December 31, 2025, the Trust purchased and cancelled 6.9 million Units at a weighted average price of $18.11 per unit for a total cost of $127.2 million. Subsequent to year end, an additional 2.6 million units were purchased and cancelled at a weighted average price of $19.51 per unit for a total cost of $51.4 million. These purchases were made pursuant to the Trust's NCIBs and the automatic securities purchase plan (ASPP) adopted in connection with these NCIBs. We believe the current unit price does not reflect the intrinsic value of our business and view the NCIB as an accretive, disciplined use of capital.
• Development Completions: During the year ended December 31, 2025, development projects totaling approximately 366,000 square feet were completed and transitioned into income producing properties. This includes 264,000 square feet of mixed-use projects comprised of residential rental and retail units and 102,000 square feet of commercial retail projects. No large-scale construction projects were initiated in 2025, and none are planned for 2026.
• Balance Sheet and Liquidity: As of December 31, 2025, the Adjusted Spot Debt to Adjusted EBITDA ratio improved to 8.64x from 9.12x at the end of 2024, within RioCan's target range of 8.0x - 9.0x. The Trust has $1.5 billion of Liquidity to meet its financial obligations, including $1.3 billion from its revolving unsecured operating line of credit.
• The Trust's unencumbered asset pool increased to $9.2 billion at the end of the Fourth Quarter from $8.2 billion at the end of 2024.
• As of December 31, 2025, the Ratio of Unsecured Debt to Total Contractual Debt on a proportionate share basis increased to 63% from 56% at year end 2024.
• During the Fourth Quarter, the Trust issued $200.0 million Series AP Senior Unsecured Debentures with an all-in coupon rate of 4.417%, maturing October 1, 2032. The net proceeds were applied against the drawn balances on the operating line of credit, improving the Trust's Liquidity and reducing the amount of floating rate debt outstanding.

1. A non-GAAP measurement. For reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release.

Conference Call and Webcast

Interested parties are invited to participate in a conference call with management on Wednesday, February 18, 2026 at 10:00 a.m. (ET). Participants will be required to identify themselves and the organization on whose behalf they are participating.

To access the conference call, click on the following link to register at least 10 minutes prior to the scheduled start of the call: Pre-registration link. Participants who pre-register at any time prior to the call will receive an email with dial-in credentials including a login passcode and PIN to gain immediate access to the live call. Those that are unable to pre-register may dial-in for operator assistance by calling 1-833-950-0062 and entering the access code: 255852.

For those unable to participate in the live mode, a replay will be available at 1-866-813-9403 with access code: 959096.

To access the simultaneous webcast, visit RioCan’s website at Events and Presentations and click on the link for the webcast.

About RioCan

RioCan meets the everyday shopping needs of Canadians through the ownership, management and development of necessity-based retail properties in densely populated communities. As at December 31, 2025, our portfolio is comprised of 168 properties with an aggregate net leasable area of approximately 31 million square feet (at RioCan's interest). To learn more about us, please visit www.riocan.com.

Basis of Presentation and Non-GAAP Measures

All figures included in this News Release are expressed in Canadian dollars unless otherwise noted. RioCan’s annual audited consolidated financial statements ("2025 Annual Consolidated Financial Statements") are prepared in accordance with International Financial Reporting Standards (IFRS). Financial information included within this News Release does not contain all disclosures required by IFRS, and accordingly should be read in conjunction with the Trust's 2025 Annual Consolidated Financial Statements and MD&A for the three months and year ended December 31, 2025, which are available on RioCan's website at www.riocan.com and on SEDAR+ at www.sedarplus.com.

Consistent with RioCan’s management framework, management uses certain financial measures to assess RioCan’s financial performance, which are not in accordance with generally accepted accounting principles (GAAP) under IFRS. Funds From Operations (“FFO”), FFO per unit - diluted, Core FFO, Core FFO per unit - diluted, Net Operating Income ("NOI"), Same Property NOI, Commercial Same Property NOI ("Commercial SPNOI"), Residential Inventory Gains at RioCan's Proportionate Share, FFO Payout Ratio, Core FFO Payout Ratio, Inventory-Related Gains, Net Valuation Losses, Total RC-HBC LP Valuation Losses, Adjusted G&A Expense as a percentage of rental revenue, Total Capital Repatriation, Total Capital Repatriation from RioCan Living, Ratio of Unsecured Debt to Total Contractual Debt, Liquidity, Adjusted Spot Debt to Adjusted EBITDA, RioCan's Proportionate Share, Unencumbered Assets as well as other measures that may be discussed elsewhere in this News Release, do not have a standardized definition prescribed by IFRS and are, therefore, unlikely to be comparable to similar measures presented by other reporting issuers. RioCan supplements its IFRS measures with these Non-GAAP measures to aid in assessing the Trust’s underlying performance and reports these additional measures so that investors may do the same. Non-GAAP measures should not be considered as alternatives to net income or comparable metrics determined in accordance with IFRS as indicators of RioCan’s performance, liquidity, cash flow, and profitability. For full definitions of these measures, please refer to the "Non-GAAP Measures” section in RioCan’s MD&A for the three months and year ended December 31, 2025.

The reconciliations for non-GAAP measures included in this News Release are outlined as follows:

RioCan's Proportionate Share

The following table reconciles the consolidated balance sheets from IFRS to RioCan's proportionate share basis as at December 31, 2025 and December 31, 2024:

The following tables reconcile the consolidated statements of income from IFRS to RioCan's proportionate share basis for the three months and years ended December 31, 2025 and 2024:

NOI and Same Property NOI

The following table reconciles operating income to NOI and Same Property NOI to NOI for the three months and years ended December 31, 2025 and 2024:

Residential Inventory Gains (RioCan's Proportionate Share)

The following table reconciles residential inventory gains from IFRS basis to RioCan's proportionate share basis for the three months and years ended December 31, 2025 and 2024:

FFO

The following table reconciles net income attributable to Unitholders to FFO for the three months and years ended December 31, 2025 and 2024:

Net Valuation Losses

Net Valuation Losses is the sum total of fair value loss on investment properties, net and Total RC-HBC LP Valuation Losses.

The following table reconciles Net Valuation Losses during the years ended December 31, 2025 and 2024:

Total RC-HBC LP Valuation Losses

The following table reconciles Total RC-HBC LP Valuation Losses and Other RC-HBC LP Valuation Losses during the three months and years ended December 31, 2025 and 2024: