RioCan to hold 2025 investor day to present outlook

Executive Summary

• RioCan Real Estate Investment Trust hosted its 2025 Investor Day to outline its strategic priorities and provide a three-year financial outlook for the period 2026–2028.
• The company aims to deliver long-term core Funds From Operations (FFO) per unit growth of 5% annually, driven by a retail-focused strategy, disciplined capital allocation, and a strong operating platform.
• For the specific period of 2026–2028, core FFO per unit growth is expected to be moderated to 3.5% annually due to near-term refinancing impacts, despite a long-term target of 5%.

Key Details

• Long-Term Growth Target: RioCan targets core FFO per unit growth of approximately 5% annually over the long term.
• 2026-2028 Specific Outlook: Core FFO per unit growth is expected to average 3.5% per year during this period, representing a temporary moderation of approximately 1.5% due to near-term refinancing activities.
• Growth Drivers:
  • Commercial Same-Property NOI: Expected to grow by at least 3.5%, driven by demand for the portfolio and contractual rent escalations.
  • Capital Allocation: Contribution of 1.5% to core FFO per unit growth from disciplined capital allocation, including retained cash flows and proceeds from asset sales.
• Asset Sales: The strategy includes the sale of highly sought-after, non-core assets, with expected proceeds between $1.3 billion and $1.4 billion.
• Strategic Pillars:
  • Productive Retail Core: Anchored by necessity-based tenants (including leading grocery retailers) in high-income, high-density Canadian markets.
  • Disciplined Capital Allocation: Framework ensuring highest risk-adjusted returns for every dollar deployed.
  • Proven Operating Platform: Culture of excellence, technology-enabled insights, and operational independence.
• Financial Metrics Definition: Core FFO excludes non-core items such as condominium profits and HBC joint venture related income, which are deemed immaterial relative to net asset value.
• Portfolio Overview: As of September 30, 2025, the portfolio consists of 173 properties with an aggregate net leasable area of approximately 32 million square feet.

Notable Quotes

• "RioCan's strategy is anchored in the strength of our core retail platform and our commitment to durable growth... RioCan is structurally positioned to deliver core FFO per unit growth of 5 per cent over the long term and 3.5 per cent from 2026 to 2028." — Jonathan Gitlin, President and Chief Executive Officer