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

Portfolio overview and market positioning

• Operates 168 properties, with 94% in major Canadian markets and 57% in Toronto, focusing on necessity-based tenants and grocery components in 86% of properties.

• Demonstrates high trading liquidity and a 6.1% forward distribution yield, supported by a BBB Positive credit rating.

• Maintains dense population coverage (277k average within 5km) and high average household income ($155k within 5km).

• Canadian retail market is supply-constrained, with new retail supply at historic lows and high barriers to entry, supporting strong occupancy and rent growth.

• Portfolio vacancy rates consistently outperform market averages, with Toronto portfolio vacancy at 2.6% versus the market's 4.2%.

Operational performance and growth drivers

• Achieved record operational results: 97.8% occupancy, 93.1% retention, and $23.18 average net rent per sq ft in 2025.

• Blended leasing spreads reached 21.1% in 2025, with renewal spreads at 17.8%, outperforming Canadian peers.

• 75% of SPNOI growth for 2026 is contractually secured, with a 3.5-4.0% SPNOI growth outlook.

• Significant mark-to-market opportunity on renewals, with ~70% of expiring leases having no or market renewal options.

• Strategic tenant mix with no single tenant exposure above 5% and average exposure to top 30 tenants at 1.4%.

Financial outlook and capital management

• Core FFO per unit guidance for 2026 is $1.60–$1.62, targeting ≥3.5% CAGR through 2028.

• Core FFO payout ratio targeted at ~70%, with sustainable, tax-efficient distributions and a 3.8% CAGR in distributions per unit (2021–2026E).

• Maintains a strong balance sheet with a target debt-to-EBITDA ratio of 8x–9x and ample liquidity ($1.5B at Q4 2025).

• $1.3–$1.4B capital repatriation goal, with ~50% achieved, primarily through monetizing residential assets and recycling capital into higher-return retail investments.

• Strategic unit buybacks (~6% of units since 2022) and a focus on long-term value creation.