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 and operating results for the three months ended March 31, 2026, demonstrating continued momentum across leasing, Commercial Same Property NOI growth¹ and its capital recycling initiatives, consistent with the strategy and financial framework outlined at its Investor Day.

• Blended leasing spreads were a record 25.8% in the First Quarter, driven by new leasing spreads of 58.5%, providing clear visibility into future organic growth and highlighting the impact of the Trust's strategic independence
• Commercial Same Property NOI growth accelerated to 4.7%, reinforcing the strength of RioCan’s core retail portfolio
• Total Capital Repatriation from RioCan Living - proforma¹ of $1.04 billion reflects continued progress toward the $1.3 billion target outlined at Investor Day

“Our first quarter results underscore the strength and resilience of our retail-focused platform," said Jonathan Gitlin, President and CEO of RioCan. “We are successfully unlocking embedded growth by leveraging our high-quality assets to capitalize on this leasing supercycle. This has enabled us to capture mark-to-market opportunities that have driven record leasing spreads and amplified SPNOI growth. Continued portfolio simplification and disciplined execution of our capital recycling strategy are enhancing balance sheet flexibility, enabling capital allocation aligned with the long-term growth framework we outlined at our Investor Day. Together, this execution underpins our confidence in RioCan’s ability to deliver durable, long-term value for our Unitholders."

• Core FFO per unit - diluted in the First Quarter benefitted primarily from Commercial Same Property NOI growth ¹ of 4.7% 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. The Trust reaffirms the Financial Outlook for 2026.
• Net income per unit for the First Quarter of $0.32 was $0.60 per unit higher than the same period last year, mainly as a result of $210.2 million or $0.71 per unit of lower Net Valuation Losses ¹ relating to RC-HBC LP and the fair value of investment properties, partially offset by $0.06 per unit of lower residential inventory gains.
• Adjusted Spot Debt to Adjusted EBITDA ¹ was 8.94x, within RioCan's targeted range. The ratio of unsecured to secured debt was 66% to 34% and the Core FFO Payout Ratio ¹ was 74.8%. RioCan ended the quarter with $1.3 billion of Liquidity ¹ and $9.4 billion in Unencumbered Assets ¹, supporting financial flexibility and disciplined capital allocation opportunities.

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.

Financial Outlook

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.

Selected Financial and Operational Highlights

• Leasing Spreads: Delivered a record high blended leasing spread of 25.8% in the First Quarter, reflecting new and renewal leasing spreads of 58.5% and 20.1%, respectively. Excluding fixed renewals, the average blended leasing spread of 29.5% on new leases and market renewals (comprising 69% of the total square footage of renewed leases) highlights the depth of mark-to-market opportunity across the portfolio.
• Average Net Rent Per Square Foot for new leasing: Mark-to-market gains drove new leasing to $31.25 per square foot, a 33% premium to the $23.49 average net rent per occupied square foot at quarter end.
• Leasing Progress: 1.1 million square feet of leasing activity in the First Quarter, including 0.8 million square feet of renewals. 1.7 million square feet of lease maturities remaining in 2026 provide continued mark-to-market opportunities.
• Occupancy: Committed retail occupancy of 98.6% reflects structurally constrained retail supply across RioCan's markets and resilient tenant demand.
• Retention Ratio: A high retention ratio of 92.4% highlights best-in-class tenant relationships and enables efficient organic growth with minimal capital outlay.
• Same Property NOI: Commercial Same Property NOI ¹ grew 4.7% in the First Quarter, the third consecutive quarter at or above 4.5%, continuing to highlight the strength of our core assets and success of RioCan's leasing strategy.
• Adjusted G&A Expense as a percentage of rental revenue¹: Improved to 3.3% in the First Quarter, down from 3.5% in the comparable period and is expected to remain under 4% on a full year basis.
• Total Capital Repatriation from RioCan Living¹ - proforma: $1.04 billion or 80% of the $1.3 billion target, including closed, firm and conditional sales of residential rental properties as of May 4, 2026, and proceeds from residential inventory sales.
• In 2026, RioCan advanced its capital recycling and simplification strategy by closing the previously disclosed sale of The Underwood Apartments, executing two firm agreements to sell FourFifty The Well and Bellevue Phase One and Two, and executing a conditional agreement to sell another residential rental property for total gross sale proceeds of $379.0 million. In conjunction with the sale of Bellevue Phase One and Two, the Trust also terminated its forward purchase agreement to buy Bellevue Phase Three, which was scheduled to close in the first half of 2026. The Trust continues to repatriate capital from the sale of residential inventory. In 2026, the Trust received $30.0 million of proceeds from the closing of residential inventory.
• The Trust continues to see strong interest in the remaining four RioCan Living assets, reflecting the quality of the portfolio and the effectiveness of its strategic execution. The Trust's residual inventory balance related to condominium projects under construction is approximately 1% of NAV or $100 million ², 14% of which is subject to binding purchase agreements. The Trust remains actively focused on monetizing the remaining inventory in a disciplined manner.
• In addition to the RioCan Living dispositions, as of May 4, 2026, the Trust also entered into $57.1 million ² firm and conditional deals.
• Proceeds from these capital repatriation activities have been reinvested into accretive uses including Portfolio Investments and the repurchase of Trust Units.
• Portfolio Investments Spending¹: Reinvested approximately $22.3 million into portfolio investments including $7.3 million of retail infill projects and $14.9 million of asset enhancement, advancing our strategy of maximizing existing density within high-quality centres to capitalize on strong retailer demand in supply-constrained markets.
• Normal Course Issuer Bid (NCIB): For the three months ended March 31, 2026, the Trust purchased and cancelled 2.6 million Units at a weighted average price of $19.51 per unit for a total cost of $51.4 million under its NCIBs and related automatic securities purchase plan. The Trust views the NCIB as an accretive and disciplined use of capital, as management believes the current unit price does not accurately reflect the intrinsic value of RioCan’s business.
• Portfolio Additions: During the First Quarter, the Trust completed acquisitions for the remaining 50% of Oakville Place and Georgian Mall totalling approximately $145.4 million, further strengthening its growth platform.
• Balance Sheet and Liquidity: As of March 31, 2026, the Adjusted Spot Debt to Adjusted EBITDA ratio increased to 8.94x from 8.64x at the end of 2025, reflecting acquisition timing as associated debt is recognized upfront while earnings build over time. Normalized for a full year of earnings, these acquisitions are expected to contribute positively to this ratio and the Trust expects leverage to remain within the target range of 8.0x - 9.0x.
• The Trust has $1.3 billion of Liquidity to meet its financial obligations, including $1.2 billion from its revolving unsecured operating line of credit. The Trust's unencumbered asset pool increased to $9.4 billion at the end of the First Quarter from $9.2 billion at the end of 2025.
• As of March 31, 2026, the Ratio of Unsecured Debt to Total Contractual Debt on a proportionate share basis increased to 66% from 63% at year end 2025.
• During the First Quarter, the Trust issued $200.0 million Series AQ senior unsecured debentures with a coupon rate of 4.308%, maturing March 11, 2033 and repaid, in full, its $100.0 million 5.953% Series I senior unsecured debentures upon maturity. The net proceeds were used to repay existing indebtedness at or prior to maturity.
• Morningstar DBRS confirmed BBB credit rating and changed the trend to Positive from Stable during the quarter.
  

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.
2. On a proportionate share basis in equity-accounted joint ventures (EAI JV).

Conference Call and Webcast

Interested parties are invited to participate in a conference call with management on Tuesday, May 5, 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 365-657-4084 (Canada) or 1-833-461-5787 (US Toll Free) and entering the access code: 736995173.

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 March 31, 2026, our portfolio is comprised of 167 properties with an aggregate net leasable area of approximately 32 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 unaudited interim condensed consolidated financial statements ("Condensed 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 Condensed Consolidated Financial Statements and MD&A for the three months ended March 31, 2026, 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. Core FFO, Core FFO per unit - diluted, Same Property Net Operating Income ("SPNOI"), Commercial Same Property NOI, Core FFO Payout Ratio, Net Valuation Losses, Adjusted G&A Expense as a percentage of rental revenue, Total Capital Repatriation from RioCan Living - Proforma, Portfolio Investments Spending, Development Spending, 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 ended March 31, 2026.

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 March 31, 2026 and December 31, 2025:

The following tables reconcile the consolidated statements of income (loss) from IFRS to RioCan's proportionate share basis for the three months ended March 31, 2026 and 2025:

NOI and Same Property NOI

The following table reconciles operating income to NOI and Same Property NOI to NOI for the three months ended March 31, 2026 and 2025:

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 ended March 31, 2026 and 2025:

FFO

The following table reconciles net income (loss) attributable to Unitholders to FFO for the three months ended March 31, 2026 and 2025:

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 three months ended March 31, 2026 and 2025:

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 ended March 31, 2026 and 2025:

Total RC-HBC LP Valuation Losses comprise of the following during the three months ended March 31, 2026 and 2025:

Adjusted G&A Expense

Adjusted G&A Expense for the three months ended March 31, 2026 and 2025 are as follows:

Total Capital Repatriation from RioCan Living

The following table reconciles Total Capital Repatriation from RioCan Living for the three months ended March 31, 2026:

Portfolio Investments Spending and Development Spending

Below is Portfolio Investments Spending and Development Spending for the three months ended March 31, 2026 and 2025:

Total Contractual Debt

The following table reconciles total debt to Total Contractual Debt as at March 31, 2026 and December 31, 2025:

Unsecured and Secured Debt

The following table reconciles Total Unsecured and Secured Debt to Total Contractual Debt as at March 31, 2026 and December 31, 2025:

Liquidity

As at March 31, 2026, RioCan had approximately $1.3 billion of Liquidity as summarized in the following table:

Adjusted EBITDA

The following table reconciles consolidated net income attributable to Unitholders to Adjusted EBITDA: