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

Executive summary

• Achieved FFO per unit of $1.87, up 5.1% year-over-year, and Core FFO per unit of $1.55, both in line with guidance, driven by strong lease execution and disciplined capital allocation.

• Delivered 3.6% commercial same property NOI growth for 2025 and 4.5% Q4 Same Property NOI growth, with retail committed occupancy at 98.5% and portfolio occupancy at 97.8%.

• Achieved record blended leasing spreads of 21.1%, with new leasing at 37.3% and a tenant retention ratio of 93.1%.

• Repurchased $178.6 million (CAD 179 million) of units in 2025 and early 2026, and repatriated $741.7 million (CAD 742 million) of capital, supporting balance sheet strength and NCIB activity.

• Portfolio is concentrated in Canada’s largest markets, anchored by necessity-based retailers, and benefits from a leasing super cycle and diversified tenant base.

Financial highlights

• Net debt to EBITDA improved to 8.6x (Adjusted Spot Debt to Adjusted EBITDA: 8.64x), within the 8x–9x target range.

• Ended the year with $1.5 billion in liquidity and increased unencumbered assets to $9.2–$9.3 billion.

• Sold $628.3 million of assets, including RioCan Living and condos, and completed $741.7 million in capital repatriation.

• Core FFO payout ratio was 74.2%, and FFO payout ratio was 61.6%.

• 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 commercial same property NOI growth of 3.5%–4.0%, and ≥3.5% CAGR targeted through 2028.

• Approximately 75% of 2026 Core FFO target is contractually secured through rent steps and lease ramp-ups.

• Portfolio investment spending projected at $45–$55 million; development spending at $95–$150 million in 2026.

• Maintenance CapEx to normalize at $55 million in 2026, down from 2025.

• Assumes 90% retention rate, blended leasing spreads in mid-teens, and committed occupancy of 97%–98%.