Original News Release
RioCan Announces Strong Second Quarter Results - Continued Operational Excellence and Strategic Capital Recycling Advancements
Company Website: https://www.riocan.com/English/home/default.aspx
TORONTO -- (Business Wire)
RioCan Real Estate Investment Trust (“RioCan” or the “Trust”) (TSX: REI.UN) announced today its financial results for the three and six months ended June 30, 2025.
9.3% growth of FFO per unit to $0.47
Capitalizing on mark-to-market opportunities, generated new leasing spreads of 51.5%; blended leasing spreads of 20.6%
Closed four previously announced firm sales of RioCan Living™ assets, bringing total RioCan Living asset dispositions to five; total year-to-date closed dispositions of $230 million at an average capitalization rate of 4.3%
“RioCan delivered another quarter of strong results and sustained leasing momentum, highlighted by exceptional leasing spreads and a high retention rate. The continued demand from high-quality retailers underscores the strength of the RioCan portfolio and reinforces our position as the landlord of choice,” said Jonathan Gitlin, President and CEO of RioCan. “We continue to simplify our business, progress our capital recycling initiatives, and successfully execute our de-leveraging plan. These initiatives sharpen the operational focus of the Trust and enhance our financial flexibility to drive sustained growth.”
Financial Highlights
Three months ended June 30
Six months ended June 30
2025
2024
2025
2024
FFO per unit - diluted 1
$
0.47
$
0.43
$
0.96
$
0.88
Net income per unit - diluted
$
0.49
$
0.41
$
0.21
$
0.84
As at
June 30,
2025
December 31,
2024
Net book value per unit
$
24.89
$
25.16
FFO per unit increased to $0.47, up $0.04 or 9.3% from the same period last year. This growth was driven by strong operating performance, reduced G&A expenses, accretion from unit buybacks in the current year and higher residential inventory gains. Higher interest expense partially offset these increases in FFO.
Net income per unit of $0.49 was $0.08 per unit higher than the same period last year, reflecting greater fair value gains of $15.9 million on investment properties, compared to $5.9 million in the prior year quarter, in addition to the items noted for FFO above.
Adjusted Debt to Adjusted EBITDA1 improved to 8.88x, ratio of unsecured to secured debt reached 61% to 39% and the FFO Payout Ratio1 was 60.5%. RioCan's strong balance sheet, reinforced by $1.3 billion of Liquidity1 and $9.0 billion in Unencumbered Assets1, enables flexibility and optimization of capital allocation.
1.
A non-GAAP measurement. For reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release.
Outlook
Our outlook remains aligned with the guidance provided in Q1 2025:
Outlook 2025
FFO per unit (i)
$1.85 to $1.88
FFO Payout Ratio
~ 62%
Commercial Same Property NOI growth (i) 1
~3.5%
(i)
Refer to the Outlook section of the Management Discussion and Analysis for the three and six months ended June 30, 2025 for further details.
1.
A non-GAAP measurement. For reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release.
Selected Financial and Operational Highlights
(in millions, except where otherwise noted, and percentages)
As at
June 30, 2025
June 30, 2024
Occupancy - committed (i) (ii)
97.5 %
97.5 %
Retail occupancy - committed (i) (ii)
98.2 %
98.3 %
Three months ended June 30
Twelve months ended June 30
2025
2024
2025
2024
Blended leasing spread
20.6 %
23.4 %
19.2 %
14.5 %
New leasing spread
51.5 %
52.5 %
36.0 %
29.8 %
Renewal leasing spread
17.4 %
10.7 %
16.1 %
10.4 %
As at
June 30, 2025
December 31, 2024
Liquidity (iii) 1
$
1,336
$
1,694
Adjusted Debt to Adjusted EBITDA (iii) 1
8.88x
8.98x
Adjusted Spot Debt to Adjusted EBITDA (iii) 1
9.02x
9.12x
Unencumbered Assets (iii) 1
$
8,956
$
8,201
(i)
Includes commercial portfolio only. Excludes income producing properties that are owned through joint ventures and reported under equity-accounted investments.
(ii)
Information presented as at respective periods then ended.
(iii)
At RioCan's Proportionate Share.
Leasing Progress: 1.3 million square feet were leased in the Second Quarter, including 1.2 million square feet of renewals.
Leasing Spreads: In the Second Quarter, RioCan achieved a blended leasing spread of 20.6% with a new leasing spread of 51.5% and a renewal leasing spread of 17.4%, marking three consecutive quarters of leasing spreads at least in the high-teens. RioCan continued to capitalize on mark-to-market opportunities, achieving an average blended leasing spread of 23.5% on market deals. 72% of renewals were at market rates, while retaining high-quality essential retailers, including the renewal of eight grocery anchors in the quarter. The retention ratio of 91.6% reflects an effective balance between upgrading tenant quality and preserving strong tenancies, with elevated leasing spreads confirming the success of this strategy.
Same Property NOI: Commercial Same Property NOI1 growth was 2.0% in the Second Quarter. Excluding the impact of higher legal and CAM/property tax settlements and a provision reversal in the prior year, Commercial Same Property NOI growth is 4.0%. Full year guidance for SPNOI is unchanged at ~3.5%.
Occupancy: RioCan's committed occupancy and retail committed occupancy were strong at 97.5% and 98.2%. Committed occupancy benefited from strong, more resilient retailers replacing transitional tenants who were paying under-market rents and offset the impact of recently vacated HBC units at Georgian Mall, Oakville Place and Tanger Ottawa. Our leasing team is actively working toward backfilling these units.
Market Demographics: Average population and household income within a five-kilometre radius of RioCan’s portfolio increased by 1% and 5% to 277,000 and $155,000, respectively from the previous year.
RioCan Living - Residential Rental: Residential rental operations generated $9.0 million of NOI, an increase of $1.8 million or 25.0% over the same period last year. As of June 30, 2025, there are 14 buildings in operation with a total fair value of $1.1 billion. RioCan continues to execute on its strategy of unlocking the value in its residential portfolio. Refer to the Capital Recycling section in this News Release for further details.
RioCan Living - Residential Condominium: The construction loan for U.C. Tower 2 & 3 was fully repaid in the Second Quarter. The outstanding balance on the 11YV construction loan was reduced to $3.6 million reflecting payments made through to August 7, 2025. As a result, as of August 7, 2025, RioCan's debt decreased by $124.2 million, and its outstanding guarantees related to 11YV declined by $298.0 million compared to Q1 2025. Full repayment of the remaining 11YV construction loan balance is expected in Q3 2025. Interim closings have commenced at Queen & Ashbridge and U.C. Tower 3.
Adjusted G&A Expense as a percentage of rental revenue1: Improved to 3.7% on a YTD basis, down from 4.1% from net G&A savings from the 2024 restructuring.
Capital Recycling: As of August 7, 2025, closed dispositions totalled $230.4 million, aligning with IFRS values. For the six months ended June 30, 2025, we completed $53.0 million of lower-growth asset dispositions including the sale of a Cineplex-anchored property, a single-tenant property and part of an open-air retail site in Quebec. Subsequent to quarter end, RioCan closed four previously announced firm sales of its 50% interest in RioCan Living properties. Including Strada, which closed in 2024, five RioCan Living properties have been sold. RioCan has also entered into a conditional agreement for the sale of an additional RioCan Living asset.
Normal Course Issuer Bid (NCIB): The Trust believes that the market price of its units does not fully reflect the underlying value and future prospects of its business, making purchasing its own units an attractive investment opportunity. During the six months ended June 30, 2025, the Trust acquired and cancelled 5.6 million Units at a weighted average price of $17.99 per unit for a cost of $100.1 million. Purchases were funded through proceeds from mortgages and other loan receivables repayments of $66.6 million received by the Trust during the Second Quarter, and the sale of two low-growth assets: RioCan Centre Vaughan, which closed in Q4 2024, and the aforementioned Cineplex-anchored property, which closed in Q1 2025.
Investing: On April 1, 2025, RioCan acquired, upon stabilization, a 90% interest in Phase Two and Three of Market in Montreal, Quebec for the purchase price of $125.3 million. This acquisition was pursuant to a forward purchase agreement previously announced during the purchase of Phase One of the project in 2022.
Balance Sheet and Liquidity: As of June 30, 2025, the Trust's Adjusted Debt to Adjusted EBITDA ratio improved to 8.88x from 8.98x at the end of 2024, in line with its target range of 8.0x - 9.0x. The Adjusted Spot Debt to Adjusted EBITDA ratio improved to 9.02x from 9.12x at the end of 2024, and we expect this metric to be well within the 8.0x - 9.0x range next quarter. The Trust has $1.3 billion of Liquidity to meet its financial obligations, including a $1.1 billion from its revolving unsecured operating line of credit.
On June 23, 2025, the Trust enhanced its liquidity position by closing on a $200.0 million 5.3-year non-revolving unsecured credit facility, with a floating interest rate of 4.49%, which was negotiated on terms and pricing that is consistent with our revolving unsecured operating line of credit. On June 25, 2025, the maturity date of the revolving unsecured operating line of credit was extended to May 31, 2030 and certain covenants were amended to provide the Trust with additional operational and financial flexibility.
The Trust's unencumbered asset pool increased to $9.0 billion at the end of the Second Quarter from $8.2 billion at the end of 2024 as the Trust progressed towards its target Ratio of Unsecured Debt to Total Contractual Debt1.
As of June 30, 2025, the Ratio of Unsecured Debt to Total Contractual Debt increased to 61% from 56% and the weighted average term to maturity of its debt portfolio was extended to 3.81 years from 3.72 years, both compared to the end of 2024 and on a proportionate share basis.
The Trust continues to improve its mix of unsecured debt to total debt, growing its unencumbered asset pool. After factoring in the closed RioCan Living sales and repayment of maturing mortgages payable and construction lines subsequent to quarter end, RioCan's pro forma metrics on a proportionate share basis are as follows:
As at
June 30, 2025
Pro forma
Ratio of Unsecured Debt to Total Contractual Debt
61 %
63 %
Unencumbered Assets
$8,956
$9,280
1.
A non-GAAP measurement. For reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release.
RC-HBC LP
On June 3, 2025, RC-HBC LP ("RC-HBC LP" or "the LP") was transitioned into a court-approved receivership (the "Receivership Proceedings"), which was a process requested by RioCan. RioCan is working with the receiver and other stakeholders to swiftly advance and execute solutions for the LP’s properties to benefit the limited partners and its stakeholders.
RioCan’s net investment in the LP as at June 30, 2025 was $40.2 million or 0.5% of total RioCan's equity.
Changes to the Board of Trustees
Effective June 30, 2025, Richard Dansereau resigned from his position as a Trustee on RioCan’s Board of Trustees. Mr. Dansereau’s resignation follows his recent appointment to an executive role at Desjardins Global Asset Management, the terms of which do not permit him to serve on outside public Boards. “On behalf of the entire Board, I want to extend our sincere gratitude to Richard for his years of dedicated service,” said Ed Sonshine, Chairman of the Board. “Richard was deeply committed and brought expertise, thoughtful perspective and integrity to the Board. We wish him all the best in his future endeavors.” As a result of this resignation, RioCan’s Board of Trustees is now comprised of nine members.
Conference Call and Webcast
Interested parties are invited to participate in a conference call with management on Friday, August 8, 2025 at 10:00 a.m. (ET). Participants will be required to identify themselves and the organization on whose behalf they are participating.
To access the conference call, click on the following link to register at least 10 minutes prior to the scheduled start of the call: Pre-registration link. Participants who pre-register at any time prior to the call will receive an email with dial-in credentials including a login passcode and PIN to gain immediate access to the live call. Those that are unable to pre-register may dial-in for operator assistance by calling 1-833-950-0062 and entering the access code: 830267.
For those unable to participate in the live mode, a replay will be available at 1-866-813-9403 with access code: 781825.
To access the simultaneous webcast, visit RioCan’s website at Events and Presentations and click on the link for the webcast.
About RioCan
RioCan meets the everyday shopping needs of Canadians through the ownership, management and development of necessity-based and mixed-use properties in densely populated communities. As at June 30, 2025, our portfolio is comprised of 178 properties with an aggregate net leasable area of approximately 32 million square feet (at RioCan's interest). To learn more about us, please visit www.riocan.com.
Basis of Presentation and Non-GAAP Measures
All figures included in this News Release are expressed in Canadian dollars unless otherwise noted. RioCan’s unaudited interim condensed consolidated financial statements ("Condensed Consolidated Financial Statements") are prepared in accordance with International Financial Reporting Standards (IFRS). Financial information included within this News Release does not contain all disclosures required by IFRS, and accordingly should be read in conjunction with the Trust's Condensed Consolidated Financial Statements and MD&A for the three and six months ended June 30, 2025, which are available on RioCan's website at www.riocan.com and on SEDAR+ at www.sedarplus.com.
Consistent with RioCan’s management framework, management uses certain financial measures to assess RioCan’s financial performance, which are not in accordance with generally accepted accounting principles (GAAP) under IFRS. Funds From Operations (“FFO”), FFO per unit, Net Operating Income ("NOI"), Same Property NOI, Commercial Same Property NOI ("Commercial SPNOI"), FFO Payout Ratio, Adjusted G&A Expense as a percentage of rental revenue, Ratio of Unsecured Debt to Total Contractual Debt, Liquidity, Adjusted Debt to Adjusted EBITDA, Adjusted Spot Debt to Adjusted EBITDA, RioCan's Proportionate Share, Unencumbered Assets as well as other measures that may be discussed elsewhere in this News Release, do not have a standardized definition prescribed by IFRS and are, therefore, unlikely to be comparable to similar measures presented by other reporting issuers. RioCan supplements its IFRS measures with these Non-GAAP measures to aid in assessing the Trust’s underlying performance and reports these additional measures so that investors may do the same. Non-GAAP measures should not be considered as alternatives to net income or comparable metrics determined in accordance with IFRS as indicators of RioCan’s performance, liquidity, cash flow, and profitability. For full definitions of these measures, please refer to the "Non-GAAP Measures”section in RioCan’s MD&A for the three and six months ended June 30, 2025.
The reconciliations for non-GAAP measures included in this News Release are outlined as follows:
RioCan's Proportionate Share
The following table reconciles the consolidated balance sheets from IFRS to RioCan's proportionate share basis as at June 30, 2025 and December 31, 2024:
As at
June 30, 2025
December 31, 2024
(thousands of dollars)
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
Assets
Investment properties
$
13,931,551
$
252,029
$
14,183,580
$
13,839,154
$
425,690
$
14,264,844
Equity-accounted investments
201,116
(201,116)
—
408,588
(408,588)
—
Mortgages and loans receivable
359,506
(9,119)
350,387
470,729
(5,321)
465,408
Residential inventory
327,110
304,337
631,447
284,050
337,920
621,970
Assets held for sale
179,726
—
179,726
16,707
—
16,707
Receivables and other assets
310,012
30,179
340,191
262,573
77,571
340,144
Cash and cash equivalents
72,318
11,694
84,012
190,243
9,890
200,133
Total assets
$
15,381,339
$
388,004
$
15,769,343
$
15,472,044
$
437,162
$
15,909,206
Liabilities
Debentures payable
$
4,138,059
$
—
$
4,138,059
$
4,088,654
$
—
$
4,088,654
Mortgages payable
2,427,292
154,348
2,581,640
2,851,602
160,701
3,012,303
Mortgages payable associated with assets held for sale
98,815
—
98,815
—
—
—
Lines of credit and other bank loans
771,574
164,835
936,409
383,658
198,682
582,340
Accounts payable and other liabilities
604,334
68,821
673,155
589,792
77,779
667,571
Total liabilities
$
8,040,074
$
388,004
$
8,428,078
$
7,913,706
$
437,162
$
8,350,868
Equity
Unitholders’ equity
7,341,265
—
7,341,265
7,558,338
—
7,558,338
Total liabilities and equity
$
15,381,339
$
388,004
$
15,769,343
$
15,472,044
$
437,162
$
15,909,206
The following tables reconcile the consolidated statements of income from IFRS to RioCan's proportionate share basis for the three and six months ended June 30, 2025 and 2024:
Three months ended June 30
2025
2024
(thousands of dollars)
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
Revenue
Rental revenue
$
291,254
$
7,173
$
298,427
$
275,863
$
8,089
$
283,952
Residential inventory sales
66,333
33,899
100,232
12,866
6,914
19,780
Property management and other service fees
4,067
(389)
3,678
3,469
(348)
3,121
361,654
40,683
402,337
292,198
14,655
306,853
Operating costs
Rental operating costs
Recoverable under tenant leases
101,934
806
102,740
91,021
806
91,827
Non-recoverable costs
10,896
3,302
14,198
7,889
638
8,527
Residential inventory cost of sales
48,624
27,018
75,642
7,600
5,412
13,012
161,454
31,126
192,580
106,510
6,856
113,366
Operating income
200,200
9,557
209,757
185,688
7,799
193,487
Other income (loss)
Interest income
9,671
92
9,763
10,839
438
11,277
Income from equity-accounted investments
4,809
(4,809)
—
2,115
(2,115)
—
Fair value gain (loss) on investment properties, net
15,929
(1,570)
14,359
5,887
(1,810)
4,077
Investment and other income (loss), net
1,155
(1,346)
(191)
609
(1,378)
(769)
31,564
(7,633)
23,931
19,450
(4,865)
14,585
Other expenses
Interest costs, net
69,989
1,855
71,844
64,393
2,867
67,260
General and administrative
11,346
20
11,366
14,611
24
14,635
Internal leasing costs
3,242
—
3,242
3,092
—
3,092
Transaction and other costs
1,572
49
1,621
679
43
722
86,149
1,924
88,073
82,775
2,934
85,709
Income before income taxes
$
145,615
$
—
$
145,615
$
122,363
$
—
$
122,363
Net income
$
145,615
$
—
$
145,615
$
122,363
$
—
$
122,363
Six months ended June 30
2025
2024
(in thousands)
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
Revenue
Rental revenue
$
587,995
$
(8,177)
$
579,818
$
564,243
$
16,262
$
580,505
Residential inventory sales
121,275
57,093
178,368
23,334
77,931
101,265
Property management and other service fees
8,215
(779)
7,436
8,008
(597)
7,411
717,485
48,137
765,622
595,585
93,596
689,181
Operating costs
Rental operating costs
Recoverable under tenant leases
211,929
1,770
213,699
202,220
1,731
203,951
Non-recoverable costs
21,296
5,066
26,362
16,640
1,343
17,983
Residential inventory cost of sales
81,981
48,372
130,353
14,622
62,934
77,556
315,206
55,208
370,414
233,482
66,008
299,490
Operating income (loss)
402,279
(7,071)
395,208
362,103
27,588
389,691
Other income (loss)
Interest income
21,073
595
21,668
19,786
1,075
20,861
Income (Loss) from equity-accounted investments
(199,257)
199,257
—
18,821
(18,821)
—
Fair value gain (loss) on investment properties, net
1,151
(154,059)
(152,908)
9,138
(2,202)
6,936
Investment and other income (loss), net
3,579
(34,384)
(30,805)
3,639
(1,831)
1,808
(173,454)
11,409
(162,045)
51,384
(21,779)
29,605
Other expenses
Interest costs, net
136,669
4,428
141,097
125,832
5,902
131,734
General and administrative
21,739
36
21,775
28,527
25
28,552
Internal leasing costs
6,498
—
6,498
6,685
—
6,685
Transaction and other costs
2,460
(126)
2,334
2,278
(118)
2,160
167,366
4,338
171,704
163,322
5,809
169,131
Income before income taxes
$
61,459
$
—
$
61,459
$
250,165
$
—
$
250,165
Current income tax recovery
—
—
—
(794)
—
(794)
Net income
$
61,459
$
—
$
61,459
$
250,959
$
—
$
250,959
NOI and Same Property NOI
The following table reconciles operating income to NOI and Same Property NOI to NOI for the three and six months ended June 30, 2025 and 2024:
Three months ended June 30
Six months ended June 30
(thousands of dollars)
2025
2024
2025
2024
Operating Income
$
200,200
$
185,688
$
402,279
$
362,103
Adjusted for the following:
Property management and other service fees
(4,067)
(3,469)
(8,215)
(8,008)
Residential inventory gains
(17,709)
(5,266)
(39,294)
(8,712)
Operational lease revenue from ROU assets, net (i)
2,317
1,783
4,656
3,478
NOI
$
180,741
$
178,736
$
359,426
$
348,861
(i)
Includes $0.6 million and $1.2 million of straight-line rent from operational lease revenue from ROU assets for the three and six months ended June 30, 2025.
Three months ended June 30
Six months ended June 30
(thousands of dollars)
2025
2024
2025
2024
Commercial
Commercial Same Property NOI
$
152,491
$
149,571
$
299,510
$
291,617
NOI from income producing properties:
Acquired (i)
27
13
1,770
1,496
Disposed (i)
733
2,242
1,753
4,880
760
2,255
3,523
6,376
NOI from completed commercial developments
10,819
11,044
22,072
20,582
NOI from properties under de-leasing (ii)
4,752
4,873
9,883
9,575
Lease cancellation fees
117
1,600
2,324
1,711
Straight-line rent adjustment (iii)
2,783
2,179
5,619
5,426
NOI from commercial properties
171,722
171,522
342,931
335,287
Residential
Residential Same Property NOI
5,320
5,476
10,414
10,586
NOI from income producing properties:
Acquired (i)
1,676
522
2,155
864
Disposed (i)
11
174
—
320
1,687
696
2,155
1,184
NOI from completed residential developments
2,012
1,042
3,926
1,804
NOI from residential rental
9,019
7,214
16,495
13,574
NOI
$
180,741
$
178,736
$
359,426
$
348,861
(i)
Includes properties acquired or disposed of during the periods being compared.
(ii)
NOI from limited number of properties undergoing significant de-leasing in preparation for redevelopment or intensification.
(iii)
Includes $0.6 million and $1.2 million of straight-line rent from operational lease revenue from ROU assets for the three and six months ended June 30, 2025.
Three months ended June 30
Six months ended June 30
(thousands of dollars)
2025
2024
2025
2024
Commercial Same Property NOI
$
152,491
$
149,571
$
299,510
$
291,617
Residential Same Property NOI
5,320
5,476
10,414
10,586
Same Property NOI
$
157,811
$
155,047
$
309,924
$
302,203
FFO
The following table reconciles net income attributable to Unitholders to FFO for the three and six months ended June 30, 2025 and 2024:
Three months ended June 30
Six months ended June 30
(thousands of dollars, except where otherwise noted)
2025
2024
2025
2024
Net income attributable to Unitholders
$
145,615
$
122,363
$
61,459
$
250,959
Add back (deduct):
Fair value (gains), net
(15,929)
(5,887)
(1,151)
(9,138)
Fair value losses included in equity-accounted investments
1,570
1,810
154,059
2,202
Other RC-HBC LP Valuation Losses
154
—
56,450
—
Internal leasing costs
3,242
3,092
6,498
6,685
Transaction losses on investment properties, net (i)
714
1,508
281
1,457
Transaction gains on equity-accounted investments
—
—
—
(31)
Transaction costs on sale of investment properties
614
73
1,045
947
ERP implementation costs
—
1,874
—
4,410
ERP amortization
(434)
(409)
(868)
(409)
Change in unrealized fair value on marketable securities
—
142
—
1,260
Current income tax recovery
—
—
—
(794)
Operational lease revenue from ROU assets
1,914
1,427
3,821
2,772
Operational lease expenses from ROU assets in equity-accounted investments
(18)
(17)
(36)
(34)
Capitalized interest related to equity-accounted investments (ii):
Capitalized interest related to properties under development
53
117
92
249
Capitalized interest related to residential inventory
1,011
1,693
2,420
3,206
FFO
$
138,506
$
127,786
$
284,070
$
263,741
Add back (deduct):
Restructuring costs
—
—
255
646
FFO Adjusted
$
138,506
$
127,786
$
284,325
$
264,387
FFO per unit - basic
$
0.47
$
0.43
$
0.96
$
0.88
FFO per unit - diluted
$
0.47
$
0.43
$
0.96
$
0.88
FFO Adjusted per unit - diluted
$
0.47
$
0.43
$
0.96
$
0.88
Weighted average number of Units - basic (in thousands)
296,093
300,463
296,873
300,461
Weighted average number of Units - diluted (in thousands)
296,093
300,463
296,873
300,461
FFO for last four quarters
$
556,300
$
532,053
Distributions paid for last four quarters
$
336,553
$
327,471
FFO Payout Ratio
60.5%
61.5%
(i)
Represents net transaction gains or losses connected to certain investment properties during the period.
(ii)
This amount represents the interest capitalized to RioCan's equity-accounted investment in WhiteCastle New Urban Fund 2, LP, WhiteCastle New Urban Fund 3, LP, WhiteCastle New Urban Fund 4, LP, WhiteCastle New Urban Fund 5, LP, RioCan-Fieldgate JV, RC (Queensway) LP, PR Bloor Street LP and RC Yorkville LP. This amount is not capitalized to development projects under IFRS but is allowed as an adjustment under REALPAC’s definition of FFO.
Adjusted G&A Expense
Adjusted G&A Expense for the three and six months ended June 30, 2025 and 2024 are as follows:
(thousands of dollars, except where otherwise noted)
Three months ended June 30
Six months ended June 30
2025
2024
Change
2025
2024
Change
Total G&A expense - IFRS
$
11,346
$
14,611
$
(3,265)
$
21,739
$
28,527
$
(6,788)
Add back (deduct):
ERP implementation costs
—
(1,874)
1,874
—
(4,410)
4,410
ERP amortization
434
409
25
868
409
459
Restructuring costs
—
—
—
(255)
(646)
391
Adjusted G&A Expense - IFRS
11,780
13,146
(1,366)
22,352
23,880
(1,528)
Add:
G&A expense from equity- accounted investments
20
24
(4)
36
25
11
Adjusted G&A Expense - RioCan's proportionate share
$
11,800
$
13,170
$
(1,370)
$
22,388
$
23,905
$
(1,517)
Rental revenue - IFRS
291,254
275,863
15,391
587,995
564,243
23,752
Add back (deduct):
Rental revenue from equity-accounted investments
7,173
8,089
(916)
(8,177)
16,262
(24,439)
Write-off of straight-line rent receivable in RC-HBC LP
—
—
—
23,300
—
23,300
Rental revenue - RioCan's proportionate share
$
298,427
$
283,952
$
14,475
$
603,118
$
580,505
$
22,613
Adjusted G&A Expense as a percentage of rental revenue
4.0%
4.6%
(0.6)%
3.7%
4.1%
(0.4)%
Total Contractual Debt
The following table reconciles total debt to Total Contractual Debt as at June 30, 2025 and December 31, 2024:
As at
June 30, 2025
December 31, 2024
(thousands of dollars)
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
Debentures payable
$
4,138,059
$
—
$
4,138,059
$
4,088,654
$
—
$
4,088,654
Mortgages payable
2,427,292
154,348
2,581,640
2,851,602
160,701
3,012,303
Lines of credit and other bank loans
771,574
164,835
936,409
383,658
198,682
582,340
Mortgages payable associated with assets held for sale
98,815
—
98,815
—
—
—
Total debt
$
7,435,740
$
319,183
$
7,754,923
$
7,323,914
$
359,383
$
7,683,297
Less:
Unamortized debt financing costs, premiums and discounts on origination and debt assumed, and modifications
(35,716)
(344)
(36,060)
(35,490)
(526)
(36,016)
Total Contractual Debt
$
7,471,456
$
319,527
$
7,790,983
$
7,359,404
$
359,909
$
7,719,313
Unsecured and Secured Debt
The following table reconciles Total Unsecured and Secured Debt to Total Contractual Debt as at June 30, 2025 and December 31, 2024:
As at
June 30, 2025
December 31, 2024
(thousands of dollars, except where otherwise noted)
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
Total Unsecured Debt
$
4,740,000
$
—
$
4,740,000
$
4,300,000
$
—
$
4,300,000
Total Secured Debt
2,731,456
319,527
3,050,983
3,059,404
359,909
3,419,313
Total Contractual Debt
$
7,471,456
$
319,527
$
7,790,983
$
7,359,404
$
359,909
$
7,719,313
Percentage of Total Contractual Debt:
Unsecured Debt
63%
61%
58%
56%
Secured Debt
37%
39%
42%
44%
Total Unsecured Debt
$
4,740,000
$
—
$
4,740,000
Increase (decrease) subsequent to quarter end:
Utilizing revolving unsecured line of credit to repay maturing mortgages payable
122,105
—
122,105
Net sales proceeds from assets held for sale (i)
(71,972)
—
(71,972)
Total Unsecured Debt - pro forma
$
4,790,133
$
—
$
4,790,133
Total Secured Debt
$
2,731,456
$
319,527
$
3,050,983
Decrease subsequent to quarter end:
Mortgages payable associated with assets held for sale
(101,378)
—
(101,378)
Maturing mortgages repayment
(122,105)
—
(122,105)
Construction lines repayment
—
(7,274)
(7,274)
Total Secured Debt- pro forma
$
2,507,973
$
312,253
$
2,820,226
Total Contractual Debt - pro forma
$
7,298,106
$
312,253
$
7,610,359
Percentage of Total Contractual Debt - pro forma
Unsecured Debt - pro forma
66%
63%
Secured Debt - pro forma
34%
37%
(i)
Sales proceeds net of mortgages payable associated with assets held for sale assumed by purchaser.
Liquidity
As at June 30, 2025, RioCan had approximately $1.3 billion of Liquidity as summarized in the following table:
As at
June 30, 2025
December 31, 2024
(thousands of dollars)
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
Undrawn revolving unsecured operating line of credit
$
1,060,000
$
—
$
1,060,000
$
1,250,000
$
—
$
1,250,000
Undrawn construction lines and other bank loans
100,358
91,606
191,964
146,024
97,892
243,916
Cash and cash equivalents
72,318
11,694
84,012
190,243
9,890
200,133
Liquidity
$
1,232,676
$
103,300
$
1,335,976
$
1,586,267
$
107,782
$
1,694,049
Adjusted EBITDA
The following table reconciles consolidated net income attributable to Unitholders to Adjusted EBITDA:
Twelve months ended
June 30, 2025
December 31, 2024
(thousands of dollars)
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
Net income attributable to Unitholders
$
283,965
$
—
$
283,965
$
473,465
$
—
$
473,465
Add (deduct) the following items:
Income tax recovery:
Current
—
—
—
(794)
—
(794)
Fair value losses on investment properties, net
37,340
155,439
192,779
29,353
3,582
32,935
Total RC-HBC LP Valuation Losses
210,718
(154,268)
56,450
—
—
—
Change in unrealized fair value on marketable securities (i)
(5,908)
—
(5,908)
(4,648)
—
(4,648)
Internal leasing costs
13,106
—
13,106
13,293
—
13,293
Non-cash unit-based compensation expense
10,256
—
10,256
10,385
—
10,385
Interest costs, net
268,381
10,070
278,451
257,544
11,544
269,088
Debt prepayment cost, net
455
—
455
455
—
455
Restructuring costs
7,461
—
7,461
7,852
—
7,852
ERP implementation costs
958
—
958
5,368
—
5,368
Depreciation and amortization
1,349
—
1,349
1,450
—
1,450
Transaction (gains) losses on the sale of investment properties, net (ii)
(1,284)
(21)
(1,305)
2
(52)
(50)
Transaction costs on investment properties
3,770
1
3,771
3,672
1
3,673
Operational lease revenue (expenses) from ROU assets
8,863
(71)
8,792
7,814
(69)
7,745
Adjusted EBITDA
$
839,430
$
11,150
$
850,580
$
805,211
$
15,006
$
820,217
(i)
The fair value gains and losses on marketable securities may include both the change in unrealized fair value and realized gains and losses on the sale of marketable securities. By adding back the change in unrealized fair value on marketable securities, RioCan effectively continues to include realized gains and losses on the sale of marketable securities in Adjusted EBITDA and excludes unrealized fair value gains and losses on marketable securities in Adjusted EBITDA.
(ii)
Includes transaction gains and losses realized on the disposition of investment properties.
Adjusted Debt to Adjusted EBITDA Ratio
Adjusted Debt to Adjusted EBITDA is calculated as follows:
Twelve months ended
June 30, 2025
December 31, 2024
(thousands of dollars, except where otherwise noted)
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
Adjusted Debt to Adjusted EBITDA
Average total debt outstanding
$
7,299,231
$
349,492
$
7,648,723
$
7,103,232
$
365,916
$
7,469,148
Less: average cash and cash equivalents
(82,516)
(9,162)
(91,678)
(89,937)
(10,307)
(100,244)
Adjusted Debt
$
7,216,715
$
340,330
$
7,557,045
$
7,013,295
$
355,609
$
7,368,904
Adjusted EBITDA (i)
$
839,430
$
11,150
$
850,580
$
805,211
$
15,006
$
820,217
Adjusted Debt to Adjusted EBITDA
8.60
8.88
8.71
8.98
(i)
Adjusted EBITDA is reconciled in the immediately preceding table.
Adjusted Spot Debt to Adjusted EBITDA ratio is calculated as follows:
As at
June 30, 2025
December 31, 2024
(thousands of dollars, except where otherwise noted)
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
Adjusted Spot Debt to Adjusted EBITDA
Total debt outstanding
$
7,435,740
$
319,183
$
7,754,923
$
7,323,914
$
359,383
$
7,683,297
Less: cash and cash equivalents
(72,318)
(11,694)
(84,012)
(190,243)
(9,890)
(200,133)
Adjusted Spot Debt
$
7,363,422
$
307,489
$
7,670,911
$
7,133,671
$
349,493
$
7,483,164
Adjusted EBITDA (i)
$
839,430
$
11,150
$
850,580
$
805,211
$
15,006
$
820,217
Adjusted Spot Debt to Adjusted EBITDA
8.77
9.02
8.86
9.12
(i)
Adjusted EBITDA is on a rolling twelve-month basis.
Unencumbered Assets
The tables below summarize RioCan's Unencumbered Assets as at June 30, 2025 and December 31, 2024:
As at
June 30, 2025
December 31, 2024
(thousands of dollars)
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
IFRS basis
Equity-
accounted
investments
RioCan's
proportionate
share
Investment properties
$
13,931,551
$
252,029
$
14,183,580
$
13,839,154
$
425,690
$
14,264,844
Less: Encumbered investment properties
(5,013,779)
(213,826)
(5,227,605)
(5,704,034)
(359,465)
(6,063,499)
Unencumbered Assets
$
8,917,772
$
38,203
$
8,955,975
$
8,135,120
$
66,225
$
8,201,345
Subsequent to quarter end:
Increase in Unencumbered
Assets
323,927
—
323,927
Pro forma Unencumbered Assets
$
9,241,699
$
38,203
$
9,279,902
Forward-Looking Information
This News Release contains forward-looking information within the meaning of applicable Canadian securities laws. This information reflects RioCan’s objectives, our strategies to achieve those objectives, as well as statements with respect to management’s beliefs, estimates and intentions concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking information can generally be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plan”, “continue”, or similar expressions suggesting future outcomes or events. Such forward-looking information reflects management’s current beliefs and is based on information currently available to management. All forward-looking information in this News Release is qualified by these cautionary statements. Forward-looking information is not a guarantee of future events or performance and, by its nature, is based on RioCan’s current estimates and assumptions, which are subject to numerous risks and uncertainties, including those described in the “Risks and Uncertainties” section in RioCan's MD&A for the three and six months ended June 30, 2025 and in our most recent Annual Information Form, which could cause actual events or results to differ materially from the forward-looking information contained in this News Release. Although the forward-looking information contained in this News Release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with this forward-looking information.
The forward-looking statements contained in this News Release are made as of the date hereof, and should not be relied upon as representing RioCan’s views as of any date subsequent to the date of this News Release. Management undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20250807044298/en/
Contacts:
RioCan Real Estate Investment Trust
Investor Relations Inquiries
Email: [email protected]
Source: RioCan Real Estate Investment Trust
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