RioCan Real Estate Investment Trust (REI-UN) Q4 2025 earnings summary

Executive summary

• Achieved strong 2025 results with FFO per unit of $1.87, up 5.1% year-over-year, and Core FFO per unit of $1.55, driven by a retail-focused strategy and disciplined capital allocation.

• Same Property NOI grew 4.5% in Q4 and 3.6% for the year, with record blended leasing spreads of 21.1% and new leasing spreads reaching 37.3%.

• Retail committed occupancy reached 98.5%, with overall portfolio occupancy at 97.8% and tenant retention at 93.1%.

• Significant capital repatriation and disciplined unit repurchases supported balance sheet strength, with $741.7 million repatriated and $178.6 million in unit buybacks.

• Portfolio concentrated in major Canadian markets, anchored by necessity-based retailers and a diversified tenant base.

Financial highlights

• FFO per unit for 2025 was $1.87, Core FFO per unit was $1.55, and commercial Same Property NOI grew 3.6% year-over-year.

• Net debt to EBITDA improved to 8.6x, with liquidity at year-end of $1.5 billion and unencumbered assets at $9.2 billion.

• Ratio of unsecured to secured debt was 63% to 37%, and Core FFO payout ratio was 74.2%.

• Total capital repatriation reached $788.2 million, including asset sales and condo closings.

• Net income per unit (diluted) was $0.23, down $1.35 from last year due to $443.1 million in net valuation losses.

Outlook and guidance

• 2026 guidance: Core FFO per unit of $1.60–$1.62, with 3.5%–4% Same Property NOI growth and ≥3.5% CAGR targeted through 2028.

• 75% of 2026 Core FFO target is contractually secured, with 90% retention rate and committed occupancy of 97%–98%.

• Development spend to decline significantly in 2026; portfolio investment spending projected at $45–$55 million and development spending at $95–$150 million.

• Net debt to EBITDA target range reaffirmed at 8x–9x.

• Ongoing RioCan Living disposition program targets $1.3–$1.4 billion.