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

Strategic vision and growth targets

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

• Same property NOI growth targeted at at least 3.5% annually, with 65% of this growth contractually locked in and the remainder from renewals and asset management.

• Capital recycling and reinvestment expected to add 1.5% to core FFO growth, with a focus on infill development, unit buybacks, and selective acquisitions.

• Short-term headwinds from refinancing are expected to moderate growth to 3.5% for 2026–2028, but the long-term trajectory remains intact.

• Portfolio is concentrated in 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, focused on grocery, pharmacy, liquor, fitness, and value retailers to drive daily traffic and rent growth.

• Data-driven asset management, including the proprietary Northstar analytics platform, identifies mark-to-market opportunities and optimizes tenant mix.

• Grocery leasing program aims to increase centers with a grocery anchor from 85% to at least 90% in three years, boosting rent and resilience.

• High occupancy, retention, and leasing spreads are now standard, with renewal spreads averaging 15% over the past 18 months and occupancy at 97.8%.

• Enhanced tenant mix and property upgrades, including major expansions and renovations at key assets.

Capital allocation and financial discipline

• CAD 1.3–1.4 billion in capital to be recycled from residential asset and condo sales in 2025–2026, with proceeds used for debt reduction and growth investments.

• Retained cash flow of CAD 130–150 million per year and additional asset monetization provide ongoing investment capacity.

• All investments must meet a 9% unlevered IRR hurdle, with a balanced approach between balance sheet strength and growth opportunities.

• Net debt to EBITDA targeted at 8x–9x, maintaining investment-grade metrics while allowing for accretive investments.

• Core FFO for 2025 set at a minimum of CAD 1.55 per unit, with a payout ratio of approximately 70% and a focus on sustainable distributions.