RioCan Real Estate Investment Trust (REI-UN) Investor Day 2025 summary

Strategic vision and growth targets

• Targets long-term core FFO growth of 5% annually, with a minimum of 3.5% CAGR through 2028, driven by a retail-focused strategy and disciplined capital allocation.

• Same property NOI growth targeted at 3.5% per year, with 65% of this growth contractually secured and additional upside from lease renewals and asset management.

• Capital recycling and reinvestment expected to add 1.5% to core FFO growth, leveraging proceeds from non-core asset sales and condo programs.

• Short-term refinancing headwinds will moderate growth to at least 3.5% core FFO from 2026–2028, but the long-term trajectory remains unchanged.

• Focus on major Canadian markets, with 94% of income from key urban areas and a high-quality, necessity-based tenant mix.

Portfolio management and operational excellence

• Portfolio consists of 173 productive properties, with strong demographics and no weak links.

• Tenant base is diversified, with no tenant over 5% of rent, and a data-driven merchandising strategy optimizes tenant mix and foot traffic.

• Grocery leasing is a key growth driver, with plans to increase grocery-anchored centers from 85% to at least 90% in three years, and strong leasing spreads on renewals and new deals.

• Proprietary analytics platform (Northstar) identifies mark-to-market rent opportunities and guides asset-level strategies for maximizing NOI.

• Recent case studies and property upgrades demonstrate successful repositioning and value creation through tenant expansion and redevelopment.

Capital allocation and financial framework

• CAD 1.3–1.4 billion in capital to be recycled from residential asset sales and condo proceeds in 2025–2026, with additional retained cash flow and asset monetization as ongoing sources.

• Capital allocation prioritizes balance sheet strength (net debt/EBITDA target of 8x–9x), reinvestment in core assets, and buybacks when units trade below NAV.

• Investment hurdle rate set at 9% unlevered IRR, with a focus on retail infill, select acquisitions, and disciplined development pipeline management.

• Core FFO baseline for 2025 is at least CAD 1.55 per unit, excluding low-value condo and HBC JV cash flows.

• Net asset value estimated at CAD 24 per unit, 25% above current unit price, reflecting a higher-quality, growth-oriented portfolio.