RioCan Real Estate Investment Trust (REI-UN) Q2 2026 earnings summary

Executive summary

• Achieved record retail committed occupancy of 98.8% and strong leasing spreads, reflecting robust demand for high-quality, necessity-based retail space in core Canadian markets.

• Core FFO per unit rose 5.3% year-over-year to CAD 0.40, driven by commercial SPNOI growth and unit repurchases.

• Near completion of the RioCan Living portfolio monetization, with CAD 1.26 billion in assets sold over 18 months, reaching 96% of the CAD 1.3 billion capital repatriation target.

• Portfolio comprises 164 properties, 94% in major Canadian markets, with 87% featuring a grocery component, supporting stable cash flows.

• Demonstrated durable growth with strong operating fundamentals and a focus on retail, driving visible earnings and NOI growth.

Financial highlights

• Q2 2026 net income: $151.2M; YTD net income: $244.4M.

• Core FFO per unit - diluted for Q2 was $0.40, up from $0.38 in Q2 2025; net income per unit - diluted was $0.52, up from $0.49.

• Commercial Same Property NOI grew 4.3% year-over-year in Q2, marking the fourth consecutive quarter above 4%.

• Q2 2026 rental revenue: $296.8M; YTD: $605.1M.

• FFO payout ratio for the last four quarters was 67.7%; Core FFO payout ratio improved to 73.8% on a trailing 12-month basis.

Outlook and guidance

• Raised 2026 Commercial Same Property NOI growth guidance to 4.0%-4.5%, above the original 3.5%-4% range.

• Maintained 2026 core FFO per unit guidance at CAD 1.60–CAD 1.62, with ≥3.5% CAGR targeted through 2028.

• Core FFO payout ratio guidance for 2026: 71%–72%, trending toward 70%.

• Significant mark-to-market rent growth opportunities remain, with 30% of leases rolling through 2028 and 20% mark-to-market opportunity on renewals.