RioCan Real Estate Investment Trust (REI-UN) Q2 2025 earnings summary

Executive summary

• Delivered strong Q2 2025 results with FFO per unit up 9.3% year-over-year to $0.47, driven by robust operations, lower G&A, and unit buybacks.

• Portfolio consists of 178 properties with ~32M sq. ft. net leasable area, focused on major Canadian markets with high barriers to entry.

• 94% of gross rent from properties in major markets; 85% of properties have a grocery component.

• Leasing momentum remains strong, with new leasing spreads at 51.5% and blended spreads at 20.6%.

• Strategic simplification and disciplined capital allocation continue, with focus on core retail and divestment of non-core assets.

Financial highlights

• FFO per unit (diluted) was $0.47 in Q2 2025, up from $0.43 in Q2 2024; YTD FFO per unit at $0.96, up 9.1% year-over-year.

• Same-property NOI grew 2% (headline), or 4% normalized for prior year provisions and CAM/tax adjustments.

• Net asset value per unit increased by $0.27 sequentially to $24.89.

• FFO payout ratio at 60.5% in Q2 2025, within the 55%–65% target range.

• G&A as a percentage of rental revenue improved to 3.7% from 4.1% year-over-year.

Outlook and guidance

• 2025 FFO per unit guidance reaffirmed at $1.85–$1.88, a 4% increase from 2024.

• Commercial Same Property NOI growth guidance unchanged at ~3.5% for the full year, with expected acceleration in the second half.

• Targeting net debt to EBITDA in the mid to low eights, with further deleveraging expected as capital is repatriated.

• Confident in achieving original guidance of $70–80 million in inventory gains for the year, despite a slightly higher default rate on condo closings.

• FFO payout ratio expected to remain around 62%.