RioCan Delivers Strong Second Quarter Performance; Retail Committed Occupancy Climbs to 98.8%, Reflecting Sustained Demand for RioCan’s Portfolio

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Postmedia has not reviewed the content. by Business Wire RioCan Delivers Strong Second Quarter Performance; Retail Committed Occupancy Climbs to 98.8%, Reflecting Sustained Demand for RioCan's PortfolioAuthor of the article: You can save this article by registering for free here. Or sign-in if you have an account.TORONTO — RioCan Real Estate Investment Trust (“RioCan” or the “Trust”) (TSX: REI.UN) announced today its financial and operating results for the three and six months ended June 30, 2026. Based on strong year-to-date leasing results, the Trust raises its guidance on Commercial Same Property NOI growth and reaffirms other 2026 guidance as previously disclosed in its 2025 annual MD&A.THIS CONTENT IS RESERVED FOR SUBSCRIBERS ONLYSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman, and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.SUBSCRIBE TO UNLOCK MORE ARTICLESSubscribe now to read the latest news in your city and across Canada.Exclusive articles from Barbara Shecter, Joe O'Connor, Gabriel Friedman and others.Daily content from Financial Times, the world's leading global business publication.Unlimited online access to read articles from Financial Post, National Post and 15 news sites across Canada with one account.National Post ePaper, an electronic replica of the print edition to view on any device, share and comment on.Daily puzzles, including the New York Times Crossword.REGISTER / SIGN IN TO UNLOCK MORE ARTICLESCreate an account or sign in to continue with your reading experience.Access articles from across Canada with one account.Share your thoughts and join the conversation in the comments.Enjoy additional articles per month.Get email updates from your favourite authors.THIS ARTICLE IS FREE TO READ REGISTER TO UNLOCK.Create an account or sign in to continue with your reading experience.Access articles from across Canada with one accountShare your thoughts and join the conversation in the commentsEnjoy additional articles per monthGet email updates from your favourite authorsSign In or Create an AccountNet income per unit – diluted increased by 6.1%; Core FFO per unit – diluted(1) increased by 5.3%98.8% retail committed occupancy reflects sustained demand in a supply-constrained market23.1% blended leasing spread highlights the Trust’s ability to unlock embedded mark-to-market opportunitiesTotal Capital Repatriation from RioCan Living – proforma(1),(2) of $1.26 billion, including $280.5 million of dispositions completed in the first half of 2026, nearing completion of $1.3 billion target for 2025 to 2026“Our second-quarter results reinforce that RioCan’s strategy is working,” said Jonathan Gitlin, President and CEO of RioCan. “We continue to execute against our Investor Day priorities, unlocking embedded growth across our portfolio and creating value through disciplined leasing, active asset management, and strategic capital allocation. The strength of our fundamentals, the quality of our necessity-based retail portfolio and our full operating independence provides RioCan the flexibility to make decisions based on what’s best for each asset, supporting strong performance and durable growth. With significant opportunities ahead, we remain confident in our ability to create long-term value for our unitholders.”Get the latest headlines, breaking news and columns.By signing up you consent to receive the above newsletter from Postmedia Network Inc.A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try again Financial HighlightsThree months ended June 30Six months ended June 302026202520262025Core FFO per unit – diluted (1)$0.40$0.38$0.78$0.77Core FFO ($000s) (1)$115,323$111,290$228,273$227,391Net income per unit – diluted$0.52$0.49$0.84$0.21Net income ($000s)$151,237$145,615$244,399$61,459As atJune 30, 2026December 31, 2025Net book value per unit$24.65$24.37Core FFO per unit – diluted in the Second Quarter was $0.40, an increase of $0.02 per unit or 5.3% from the same period ended in 2025, reflecting strong underlying operating performance. Growth was primarily driven by an increase in Commercial Net Operating Income (NOI)(1), including Commercial Same Property NOI growth(1) of 4.3% and the accretive impact of unit repurchases. These gains were partially offset by lower interest income, higher net interest costs and the impact of asset dispositions, net of acquisitions.Net income per unit for the Second Quarter was $0.52, an increase of $0.03 per unit or 6.1% compared to the same period last year. This increase was primarily due to higher fair value gains on investment properties and the accretive impact of unit repurchases. These benefits were partially offset by lower operating income and lower income on equity-accounted investments, mainly a result of lower underlying residential inventory gains.Unitholders’ equity increased $68.4 million during the Second Quarter to $7.18 billion primarily driven by investment property fair value gains from organic stabilized NOI growth.(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)Includes conditional sales agreements. Conditional sales agreements are subject to finalization, due diligence and customary closing conditions and may not be completed as anticipated, within the expected timeframe, or at all. Financial Outlook 2026(1)2026 Commercial Same Property NOI growth is expected to be between 4.0% to 4.5%, an increase from the original guidance of 3.5% to 4.0%(2). Higher growth expectations are driven mainly by leasing performance to date and the leasing pipeline for the balance of the year. The Trust reaffirms other 2026 guidance as previously disclosed in its 2025 annual MD&A.(1)The discussion in this section is qualified in its entirety by the cautionary language regarding forward-looking statements found on Forward-Looking Information section of this News Release.(2)The original financial outlook for 2026 Commercial SPNOI growth of 3.5% to 4.0% reflects expected growth contributions of approximately 75% from contractually secured growth, 20% from mark-to-market growth on renewals and 5% growth from strategic initiatives, based on assumptions of committed occupancy of approximately 97% to 98%, a 90% retention ratio on renewals and blended leasing spreads of approximately 15%. Renewals are based on lease expiries included in the Lease Expiries table in the Property Portfolio Overview – Property Operations – Commercial section of the Trust’s December 31, 2025 MD&A. Revised Commercial SPNOI growth of 4.0% to 4.5% for 2026 is based on an increased blended leasing spread assumption of approximately 20%, reflecting a favourable leasing environment and the continued demand for RioCan’s portfolio. All other assumptions in the original financial outlook for 2026 remain unchanged. Sel ected Operational Highlights(in millions, except where otherwise noted, and percentages)As atJune 30, 2026June 30, 2025Occupancy – committed (i)98.1%97.5%Retail occupancy – committed (i)98.8%98.2%Three months ended June 30Twelve months ended June 302026202520262025Blended leasing spread23.1%20.6%23.8%19.2%New leasing spread40.8%51.5%45.2%36.0%Renewal leasing spread20.7%17.4%19.4%16.1%(i)Includes commercial portfolio only. Excludes income producing properties that are owned through joint ventures and reported under equity-accounted investments.Leasing Spreads: Blended leasing spread of 23.1% in the Second Quarter was supported by new leasing spread of 40.8% and renewal leasing spread of 20.7%.New Leasing Rents: Average net rent per square foot for new leasing was $37.73 per square foot, 60% above the $23.58 average net rent per occupied square foot at quarter end, reflective of RioCan’s sustained mark-to-market opportunities.Leasing Activity: Completed 1.0 million square feet of leasing in the Second Quarter, including 0.9 million square feet of renewals. An additional 1.0 million square feet of lease maturities remain in 2026, providing further mark-to-market opportunities.Occupancy: Retail committed occupancy reached a record high for RioCan of 98.8%, with retail in-place occupancy of 98.0%. The committed to in-place spread narrowed by 0.5% from Q1 2026 as tenants were granted possession during the quarter of previously committed space, including Nations Fresh Foods at Oakville Place.Retention Ratio: Retention ratio remains high at 92.5% enabling efficient organic growth with minimal capital outlay.Operating Income: Higher rental revenue, net of rental operating costs for the Second Quarter was offset by lower residential inventory gains and lower fee income resulting in a $10.8 million decrease in the Second Quarter when compared to the same period last year.Commercial Same Property NOI Growth: 4.3% in the Second Quarter, continues to highlight the strength of RioCan’s core retail portfolio and success of RioCan’s leasing strategy.Dispositions: For the six months ended June 30, 2026, the Trust completed the sale of its interests in four RioCan Living income producing properties: The Underwood Apartments, FourFifty The Well and Bellevue Phase One and Two for aggregate gross proceeds of $280.5 million. The Trust also terminated its forward purchase agreement to acquire Bellevue Phase Three. Subsequent to quarter end to August 4, 2026, the Trust entered into two conditional agreements to sell its interests in two RioCan Living income producing properties for combined estimated gross proceeds of $205.7 million.Total Capital Repatriation from RioCan Living – proforma(2): $1.26 billion or 96% of the $1.3 billion (2025 to 2026) target on a cumulative basis for the eighteen months ended June 30, 2026. This includes gross proceeds of $687.1 million from the sales of 11 residential rental properties, $364.8 million of gross proceeds from residential inventory sales including RioCan’s share in equity-accounted joint ventures(3) and the $205.7 million in estimated gross proceeds from the two conditional sale agreements noted above.This advertisement has not loaded yet.This advertisement has not loaded yet, but your article continues below.(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)Includes conditional sales agreements. Conditional sales agreements are subject to finalization, due diligence and customary closing conditions and may not be completed as anticipated, within the expected timeframe, or at all.(3)Gross proceeds from residential unit inventory sales including RioCan’s share in equity-accounted investment for the six months ended June 30, 2026 was $143.0 million, primarily from the collection of accounts receivable during 2026 related to 2025 inventory sales. Select ed Financial Condition Highlights(in millions, except where otherwise noted)Consolidated BasisRioCan’s Proportionate Share (1)As atJune 30, 2026December 31, 2025June 30, 2026December 31, 2025Total assets$14,673$14,894$14,829$15,249Investment properties$13,605$13,629$13,641$13,825Cash and cash equivalents$67$145$76$159Total debt$6,992$7,153$7,122$7,463Adjusted Spot Debt to Adjusted EBITDA (1)8.70x8.36x8.81x8.64xLiquidity (including cash and cash equivalents) (1)$694$1,416$732$1,462Unencumbered Assets (1)$9,640$9,155$9,665$9,173During the Second Quarter, the Trust repaid its $500.0 million 1.97% Series AD senior unsecured debentures in full upon maturity, drawing on its operating line of credit resulting in a decline in Liquidity from December 31, 2025. The Trust continues to maintain ample liquidity to meet its financial obligations and a large unencumbered asset pool that provides additional financial flexibility.(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 WebcastInterested parties are invited to participate in a conference call with management on Wednesday, August 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: 441358152.To access the simultaneous webcast, visit RioCan’s website at Events and Presentations and click on the link for the webcast.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 June 30, 2026, our portfolio is comprised of 164 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 MeasuresAll 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 and six months ended June 30, 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, Net Operating Income (NOI), Commercial Same Property NOI Growth, Total Capital Repatriation from RioCan Living – Proforma, Liquidity, Adjusted Spot Debt to Adjusted EBITDA, RioCan’s Proportionate Share in Equity-Accounted Investments Joint Ventures, 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. References to Consolidated Basis indicate the information is presented using IFRS basis of consolidation. For full definitions of these measures, please refer to the “Non-GAAP Measures” section in RioCan’s MD&A for the three and six months ended June 30, 2026.The reconciliations for non-GAAP measures included in this News Release are outlined as follows:RioCan’s Proportionate ShareThe following table reconciles the consolidated balance sheets from Consolidated Basis to RioCan’s Proportionate Share as at June 30, 2026 and December 31, 2025:As atJune 30, 2026December 31, 2025(thousands of dollars)Consolidated BasisEquity-accounted investments (ii)RioCan’s Proportionate ShareConsolidated BasisEquity-accounted investmentsRioCan’s Proportionate ShareAssetsInvestment properties (i)$13,605,045$35,713$13,640,758$13,628,959$195,820$13,824,779Equity-accounted investments155,836(155,836)—159,596(159,596)—Residential inventory231,320250,011481,331236,745263,569500,314Mortgages and loans receivable241,687—241,687338,331(17,152)321,179Assets held for sale102,000—102,00046,500—46,500Receivables and other assets270,95416,771287,725339,22157,909397,130Cash and cash equivalents66,6309,19475,824145,04013,994159,034Total assets$14,673,472$155,853$14,829,325$14,894,392$354,544$15,248,936LiabilitiesDebentures payable$3,939,514$—$3,939,514$4,338,865$—$4,338,865Mortgages payable1,869,70826,3341,896,0422,184,306141,1822,325,488Mortgages payable associated with assets held for sale75,594—75,59428,343—28,343Lines of credit and other bank loans1,106,879103,6241,210,503601,194169,044770,238Accounts payable and other liabilities504,60325,895530,498584,42144,318628,739Total liabilities$7,496,298$155,853$7,652,151$7,737,129$354,544$8,091,673EquityUnitholders’ equity7,177,174—7,177,1747,157,263—7,157,263Total liabilities and equity$14,673,472$155,853$14,829,325$14,894,392$354,544$15,248,936(i)Net of $81.7 million of cumulative unrecognized share of losses from RC-HBC LP in excess of RioCan’s carrying value as at June 30, 2026 (December 31, 2025 – $50.2 million).(ii)On March 31, 2026, RioCan ceased to account for the RC-HBC LP as an equity-accounted investment, and the investment was reclassified to an investment measured at fair value through profit and loss. Consequently, RC-HBC LP assets and debt are no longer included in RioCan’s Proportionate Share amounts.The following tables reconcile the consolidated statements of income from Consolidated Basis to RioCan’s Proportionate Share for the three and six months ended June 30, 2026 and 2025:Three months ended June 3020262025(thousands of dollars)Consolidated BasisEquity-accounted investmentsRioCan’s Proportionate ShareConsolidated BasisEquity-accounted investmentsRioCan’s Proportionate ShareRevenueRental revenue$296,802$854$297,656$291,254$7,173$298,427Residential inventory sales5,6155,43711,05266,33333,899100,232Property management and other service fees1,938—1,9384,067(389)3,678304,3556,291310,646361,65440,683402,337Operating costsRental operating costsRecoverable under tenant leases102,256383102,639101,934806102,740Non-recoverable costs8,537988,63510,8963,30214,198Residential inventory cost of sales4,1268,23312,35948,62427,01875,642114,9198,714123,633161,45431,126192,580Operating income (loss)189,436(2,423)187,013200,2009,557209,757Other income (loss)Interest income7,233247,2579,671929,763Income (loss) from equity-accounted investments(2,660)2,660—4,809(4,809)—Fair value gain (loss) on investment properties, net51,98111952,10015,929(1,570)14,359Investment and other income (loss), net(4,588)(22)(4,610)1,155(1,346)(191)51,9662,78154,74731,564(7,633)23,931Other expensesInterest costs, net71,14323771,38069,9891,85571,844General and administrative12,824912,83311,3462011,366Internal leasing costs3,226123,2383,242—3,242Transaction and other costs2,9721003,0721,572491,62190,16535890,52386,1491,92488,073Income before income taxes$151,237$—$151,237$145,615$—$145,615Net income$151,237$—$151,237$145,615$—$145,615Six months ended June 3020262025(in thousands)Consolidated BasisEquity-accounted investmentsRioCan’s Proportionate ShareConsolidated BasisEquity-accounted investmentsRioCan’s Proportionate ShareRevenueRental revenue$605,063$1,924$606,987$587,995$(8,177)$579,818Residential inventory sales16,58325,50342,086121,27557,093178,368Property management and other service fees5,015—5,0158,215(779)7,436626,66127,427654,088717,48548,137765,622Operating costsRental operating costsRecoverable under tenant leases220,7451,095221,840211,9291,770213,699Non-recoverable costs18,013(6)18,00721,2965,06626,362Residential inventory cost of sales12,41427,41439,82881,98148,372130,353251,17228,503279,675315,20655,208370,414Operating income (loss)375,489(1,076)374,413402,279(7,071)395,208Other income (loss)Interest income15,25750615,76321,07359521,668Income (loss) from equity-accounted investments(843)843—(199,257)199,257—Fair value gain (loss) on investment properties, net (i)75,50215775,6591,151(154,059)(152,908)Investment and other income (loss), net(40,614)644(39,970)3,579(34,384)(30,805)49,3022,15051,452(173,454)11,409(162,045)Other expensesInterest costs, net143,052933143,985136,6694,428141,097General and administrative25,1171325,13021,7393621,775Internal leasing costs6,671126,6836,498—6,498Transaction and other costs5,5521165,6682,460(126)2,334180,3921,074181,466167,3664,338171,704Income before income taxes$244,399$—$244,399$61,459$—$61,459Net income$244,399$—$244,399$61,459$—$61,459(i)Net of $31.5 million of unrecognized share of losses from RC-HBC LP in excess of RioCan’s carrying value for the six months ended June 30, 2026 (six months ended June 30, 2025 – $nil).NOI and Same Property NOIThe following table reconciles operating income to NOI and Same Property NOI to NOI for the three and six months ended June 30, 2026 and 2025:Three months ended June 30Six months ended June 30(thousands of dollars)2026202520262025Operating Income$189,436$200,200$375,489$402,279Adjusted for the following:Property management and other service fees(1,938)(4,067)(5,015)(8,215)Residential inventory gains(1,489)(17,709)(4,169)(39,294)Operational lease revenue from ROU assets, net (i)2,5572,3174,9414,656NOI$188,566$180,741$371,246$359,426(i)Includes $0.2 million and $0.3 million of straight-line rent from operational lease revenue from right-of-use (ROU) assets for the three and six months ended June 30, 2026, respectively (three and six months ended June 30, 2025 – $0.6 million and $1.2 million, respectively).Three months ended June 30Six months ended June 30(thousands of dollars)2026202520262025CommercialCommercial Same Property NOI$159,713$153,081$315,819$302,099NOI from income producing properties:Acquired (i)2,968—5,624—Disposed (i)2,0922,1912,8755,1545,0602,1918,4995,154NOI from completed commercial developments10,6579,91420,84120,524NOI from properties under de-leasing and other (ii)3,5883,6368,3907,211Lease cancellation fees4801172,1842,324Straight-line rent adjustment (iii)4,5772,7836,5105,619NOI from commercial properties184,075171,722362,243342,931ResidentialResidential Same Property NOI2,2472,3334,3614,584NOI from income producing properties:Acquired (i)—1,169—1,169Disposed (i)2,1195,5174,58110,7422,1196,6864,58111,911NOI from completed residential developments125—61—NOI from residential rental4,4919,0199,00316,495NOI$188,566$180,741$371,246$359,426(i)Includes properties acquired or disposed of during the periods being compared.(ii)NOI from limited number of properties undergoing significant de-leasing in preparation for redevelopment or intensification.(iii)Includes $0.2 million and $0.3 million of straight-line rent from operational lease revenue from ROU assets for the three and six months ended June 30, 2026, respectively (three and six months ended June 30, 2025 – $0.6 million and $1.2 million, respectively).Three months ended June 30Six months ended June 30(thousands of dollars)2026202520262025Commercial Same Property NOI$159,713$153,081$315,819$302,099Residential Same Property NOI2,2472,3334,3614,584Same Property NOI$161,960$155,414$320,180$306,683Residential Inventory Gains (Losses) at RioCan’s Proportionate Share in EAI JV and RioCan’s Proportionate ShareThe following table reconciles residential inventory gains (losses) from Consolidated Basis to RioCan’s Proportionate Share in EAI JV and to RioCan’s Proportionate Share for the three and six months ended June 30, 2026 and 2025:Three months ended June 3020262025(thousands of dollars)Residential inventory salesResidential inventory cost of salesResidential inventory gains (losses)Residential inventory salesResidential inventory cost of salesResidential inventory gainsTotal – Consolidated Basis$5,615$4,126$1,489$66,333$48,624$17,709Equity-accounted joint ventures5,4028,221(2,819)31,45124,7466,705Total – RioCan’s Proportionate Share in EAI JV11,01712,347(1,330)97,78473,37024,414Other equity-accounted investments3512232,4482,272176Total – RioCan’s Proportionate Share$11,052$12,359$(1,307)$100,232$75,642$24,590Six months ended June 3020262025(thousands of dollars)Residential inventory salesResidential inventory cost of salesResidential inventory gains (losses)Residential inventory salesResidential inventory cost of salesResidential inventory gainsTotal – Consolidated Basis$16,583$12,414$4,169$121,275$81,981$39,294Equity-accounted joint ventures22,65724,591(1,934)42,61735,2667,351Total – RioCan’s Proportionate Share in EAI JV39,24037,0052,235163,892117,24746,645Other equity-accounted investments2,8462,8232314,47613,1061,370Total – RioCan’s Proportionate Share$42,086$39,828$2,258$178,368$130,353$48,015The following table reconciles net income attributable to Unitholders to FFO for the three and six months ended June 30, 2026 and 2025:Three months ended June 30Six months ended June 30(thousands of dollars, except where otherwise noted)2026202520262025Net income attributable to Unitholders$151,237$145,615$244,399$61,459Add back (deduct):Fair value gains, net(51,981)(15,929)(75,502)(1,151)Fair value (gains) losses included in equity-accounted investments (i)(119)1,570(156)154,059Other RC-HBC LP Valuation Losses—15436,93456,450Internal leasing costs3,2263,2426,6716,498Internal leasing costs in equity-accounted investments12—12—Transaction losses on investment properties, net (ii)6,89071410,178281Transaction costs on sale of investment properties1,6256143,3211,045Transaction costs on sale of investment properties in equity-accounted investments75—77—ERP implementation costs / IT transformation costs952—1,307—ERP amortization(434)(434)(868)(868)Operational lease revenue from ROU assets2,2051,9144,2533,821Operational lease expenses from ROU assets in equity-accounted investments—(18)(6)(36)Capitalized interest related to equity-accounted investments (iii):Capitalized interest related to properties under development255310592Capitalized interest related to residential inventory1,1051,0111,8732,420FFO$114,818$138,506$232,598$284,070Add back (deduct):Inventory-Related Losses (Gains) (iv)1,066(23,773)(5,090)(48,074)Restructuring costs——2,190255HBC-Related Income (iv)(561)(3,443)(1,425)(8,860)Core FFO$115,323$111,290$228,273$227,391FFO per unit – diluted$0.39$0.47$0.80$0.96Core FFO per unit – diluted$0.40$0.38$0.78$0.77Weighted average number of Units – basic (in thousands)291,117296,093291,313296,873Weighted average number of Units – diluted (in thousands)291,305296,093291,450296,873FFO for last four quarters$501,689$556,300Core FFO for last four quarters$459,930$467,982Distributions paid for last four quarters$339,597$336,553FFO Payout Ratio67.7%60.5%Core FFO Payout Ratio73.8%71.9%(i)Net of $nil and $31.5 million unrecognized share of losses from RC-HBC LP in excess of RioCan’s carrying value for the three and six months ended June 30, 2026, respectively (three and six months ended June 30, 2025 – $nil and $nil, respectively).(ii)Represents net transaction gains or losses connected to certain investment properties during the period.(iii)This amount represents the interest capitalized to RioCan’s equity-accounted investment in WhiteCastle New Urban Fund 2, LP, WhiteCastle New Urban Fund 3, LP, WhiteCastle New Urban Fund 4, LP, WhiteCastle New Urban Fund 5, LP, RioCan-Fieldgate JV, RC (Queensway) LP, PR Bloor Street LP, RC Yorkville LP and RCLC King and Sherbourne LP. This amount is not capitalized to development projects under IFRS but is allowed as an adjustment under REALPAC’s definition of FFO.(iv)Inventory-Related Gains (Losses) and HBC-Related Income for the three and six months ended June 30, 2026 and 2025 are as follows:Three months ended June 30Six months ended June 30(thousands of dollars)2026202520262025Residential inventory gains$1,489$17,709$4,169$39,294Residential inventory gains (losses) from equity-accounted investments (i)(2,796)6,881(1,911)8,721Residential inventory marketing costs(214)(577)(285)(605)Residential inventory marketing costs from equity-accounted investments(25)(480)(40)(305)Capitalized interest relief from sale of residential inventory in equity-accounted investments(111)(388)(551)(550)NOI from other equity-accounted investments173—326—Fee income related to residential inventory (ii)266285681,373Investment and other income related to residential inventory414—2,169146Investment and other income (loss) related to residential inventory from equity-accounted investments(22)—645—Inventory-Related (Losses) Gains$(1,066)$23,773$5,090$48,074Share of income from RC-HBC LP operations$—$505$72$2,993Operational lease expenses from ROU assets in equity-accounted investments—(18)(6)(36)Interest income from RC-HBC LP2131,1865132,363Fee income from RC-HBC LP3481,7708463,540HBC-Related Income$561$3,443$1,425$8,860(i)Refer to the Residential Inventory Gains (Losses) at RioCan’s Proportionate Share in EAI JV and RioCan’s Proportionate Share table in this News Release for reconciliation.(ii)Related to fee income earned from residential inventory in accordance with IFRS.Total Capital Repatriation from RioCan Living and Total Capital Repatriation from RioCan Living – proformaThe following table reconciles Total Capital Repatriation from RioCan Living and Total Capital Repatriation from RioCan Living- proforma for the six months ended June 30, 2026 and eighteen months ended June 30, 2026:(thousands of dollars)Six months ended June 30, 2026Eighteen months ended June 30, 2026 (i)Anticipated 2025 to 2026Gross sales proceeds from RioCan Living dispositions$280,474$687,094$940,000Proceeds from residential inventory sales:Residential inventory sales revenue16,583260,772Residential inventory sales revenue – EAI JV22,657128,279Add (Deduct):Outstanding accounts receivable related to above sales (ii)(841)(9,657)Outstanding accounts receivable related to above sales – EAI JV (iii)(1,294)(4,335)Accounts receivable extinguished from repossessed units(10,196)(10,196)Accounts receivable extinguished from repossessed units – EAI JV(106)(106)Change in accounts receivable related to 2025 sales85,946n/aChange in accounts receivable related to 2025 sales – EAI JV30,285n/aGross proceeds from residential inventory sales143,034364,757371,000Total Capital Repatriation from RioCan Living$423,508$1,051,851$1,311,000Subsequent to quarter end:Anticipated proceeds from RioCan Living dispositions – conditional deals (iv)205,700205,700Total Capital Repatriation from RioCan Living – proforma (iv)$629,208$1,257,551$1,311,000Percentage of Total Capital Repatriation from RioCan Living – proforma to Anticipated 2025-202696%(i)Represents cumulative amount from January 1, 2025 to June 30, 2026.(ii)Outstanding accounts receivable related to above sales for the eighteen months ended June 30, 2026 represents $94.8 million outstanding accounts receivable related to 2025 sales as at December 31, 2025, $0.8 million outstanding accounts receivable related to 2026 sales as at June 30, 2026, net of $85.9 million reduction in accounts receivable related to 2025 sales collected in 2026.(iii)Outstanding accounts receivable related to above sales – EAI JV for the eighteen months ended June 30, 2026 represents $33.3 million outstanding accounts receivable related to 2025 sales as at December 31, 2025, $1.3 million outstanding accounts receivable related to 2026 sales as at June 30, 2026, net of $30.3 million reduction in accounts receivable related to 2025 sales collected in 2026.(iv)Includes conditional sales agreements. Conditional sales agreements are subject to finalization, due diligence and customary closing conditions and may not be completed as anticipated, within the expected timeframe, or at all.As at June 30, 2026, RioCan had approximately $0.7 billion of Liquidity as summarized in the following table:As atJune 30, 2026December 31, 2025(thousands of dollars)Consolidated BasisEquity-accounted investmentsRioCan’s Proportionate ShareConsolidated BasisEquity-accounted investmentsRioCan’s Proportionate ShareUndrawn revolving unsecured operating line of credit$627,000$—$627,000$1,250,000$—$1,250,000Undrawn construction lines and other bank loans—28,80028,80020,77032,00952,779Cash and cash equivalents66,6309,19475,824145,04013,994159,034Liquidity$693,630$37,994$731,624$1,415,810$46,003$1,461,813The following table reconciles consolidated net income attributable to Unitholders to Adjusted EBITDA:Twelve months endedJune 30, 2026December 31, 2025(thousands of dollars)Consolidated BasisEquity-accounted investmentsRioCan’s Proportionate ShareConsolidated BasisEquity-accounted investmentsRioCan’s Proportionate ShareNet income attributable to Unitholders$252,235$—$252,235$69,295$—$69,295Add (deduct) the following items:Fair value losses on investment properties, net63,00843,151106,159137,359197,367334,726Total RC-HBC LP Valuation Losses131,969(41,289)90,680305,781(195,585)110,196Internal leasing costs13,8881213,90013,715—13,715Non-cash unit-based compensation expense10,238—10,23810,197—10,197Interest costs, net284,2681,540285,808277,8855,035282,920Restructuring costs2,190—2,190255—255ERP implementation costs / IT transformation costs2,153—2,153846—846Depreciation and amortization1,674—1,6741,510—1,510Transaction losses on the sale of investment properties, net (i)15,592—15,5925,539—5,539Transaction costs on investment properties10,37415010,5248,098738,171Operational lease revenue (expenses) from ROU assets8,283(25)8,2587,851(55)7,796Adjusted EBITDA$795,872$3,539$799,411$838,331$6,835$845,166(i)Includes transaction gains and losses realized on the disposition of investment properties.Adjusted Spot Debt to Adjusted EBITDA RatioAdjusted Spot Debt to Adjusted EBITDA ratio is calculated as follows:As atJune 30, 2026December 31, 2025(thousands of dollars, except where otherwise noted)Consolidated BasisEquity-accounted investmentsRioCan’s Proportionate ShareConsolidated BasisEquity-accounted investmentsRioCan’s Proportionate ShareAdjusted Spot Debt to Adjusted EBITDATotal debt outstanding$6,991,695$129,958$7,121,653$7,152,708$310,226$7,462,934Less: cash and cash equivalents(66,630)(9,194)(75,824)(145,040)(13,994)(159,034)Adjusted Spot Debt$6,925,065$120,764$7,045,829$7,007,668$296,232$7,303,900Adjusted EBITDA (i)$795,872$3,539$799,411$838,331$6,835$845,166Adjusted Spot Debt to Adjusted EBITDA8.708.818.368.64(i)Adjusted EBITDA is on a rolling twelve-month basis.The table below summarizes RioCan’s Unencumbered Assets as at June 30, 2026 and December 31, 2025:As atJune 30, 2026December 31, 2025(thousands of dollars)Consolidated BasisEquity-accounted investmentsRioCan’s Proportionate ShareConsolidated BasisEquity-accounted investmentsRioCan’s Proportionate ShareInvestment properties$13,605,045$35,713$13,640,758$13,628,959$195,820$13,824,779Less: Encumbered investment properties(3,964,566)(10,755)(3,975,321)(4,474,260)(177,561)(4,651,821)Unencumbered Assets$9,640,479$24,958$9,665,437$9,154,699$18,259$9,172,958 Forward-Looking InformationThis News Release contains forward-looking information, including financial outlook, within the meaning of applicable Canadian securities laws. This information reflects RioCan’s objectives, our strategies to achieve those objectives, as well as statements with respect to management’s beliefs, estimates and intentions concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking information can generally be identified by the use of forward-looking terminology such as “outlook”, “proforma”, “objective”, “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plan”, “continue”, or similar expressions suggesting future outcomes or events and includes, without limitation, RioCan’s financial guidance and references to Commercial Same Property NOI growth expectations. Our financial outlook is prepared as of the date hereof and is disclosed to assist current and future unitholders and analysts in evaluating the effectiveness of RioCan’s strategic plan and readers are cautioned that it may not be suitable for any other purpose. All forward-looking information reflects management’s current beliefs and is based on information currently available to management. All forward-looking information, including our Financial Outlook, in this News Release is qualified by these cautionary statements. Forward-looking information is not a guarantee of future events or performance and, by its nature, is based on RioCan’s current estimates and assumptions, includes those assumptions set out under the heading “Forward-Looking Information and Financial Outlook” in RioCan’s MD&A which estimates and assumptions are subject to numerous risks and uncertainties, including those described in the “Risks and Uncertainties” section in RioCan’s MD&A and in our most recent Annual Information Form (which are available on RioCan’s website at www.riocan.com and SEDAR+ at www.sedarplus.com), which could cause actual events or results to differ materially from the forward-looking information contained in this News Release. Although the forward-looking information contained in this News Release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with this forward-looking information.The forward-looking statements contained in this News Release are made as of the date hereof, and should not be relied upon as representing RioCan’s views as of any date subsequent to the date of this News Release. Management undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.View source version on businesswire.com: Notice for the Postmedia NetworkThis website uses cookies to personalize your content (including ads), and allows us to analyze our traffic. Read more about cookies here. By continuing to use our site, you agree to our Terms of Use and Privacy Policy.