RioCan Announces Strong Fourth Quarter and Full Year 2025 Results - Full Year Highlights: 3.6% Commercial Same Property NOI Growth, 98.5% Retail Occupancy and 37.3% New Leasing Spread Underscore Portfolio Momentum
Executive Summary
- RioCan reported a full‑year FFO per unit increase of 5.1% to $1.87 (diluted), driven by strong leasing spreads, capital recycling, and inventory‑related gains.
- Adjusted Spot Debt/Adjusted EBITDA improved to 8.6×, with total liquidity of approximately C$1.5 billion and unencumbered assets of C$9.2 billion.
- The Trust repurchased 9.5 million units for a total cost of C$178.6 million in 2025‑YTD 2026, supporting the capital recycling strategy.
Key Details
- Leasing Performance
- New leasing spread FY 2025: 37.3%, raising blended leasing spread to 21.1% (record high).
- Renewal leasing spread FY 2025: 17.8%; overall blended spread for the year: 24.7% on new and renewal leases.
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Leasing activity: 5.0 million sq ft total, including 4.0 million sq ft of renewals.
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Operating Metrics
- Commercial Same‑Property NOI growth Q4 2025: 4.5%, supporting FY 2025 same‑property NOI growth of 3.6%.
- Occupancy (committed): 97.8% (FY 2025) vs. 98.0% (FY 2024).
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Retail occupancy (committed): 98.5% (FY 2025) vs. 98.7% (FY 2024).
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Financial Highlights
- FFO per unit – diluted: $1.87 FY 2025 vs. $1.78 FY 2024.
- Core FFO per unit – diluted: $1.55 FY 2025 vs. $1.56 FY 2024 (slight decline).
- Net income per unit – diluted: $0.23 FY 2025 vs. $1.58 FY 2024, down $1.35 due to net valuation losses of C$443.1 million ($1.50/unit).
- Adjusted Spot Debt/Adjusted EBITDA: 8.64× (FY 2025) vs. 9.12× (FY 2024).
- Liquidity: C$1,462 million (FY 2025) vs. C$1,694 million (FY 2024).
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Unencumbered assets: C$9,173 million (FY 2025) vs. C$8,201 million (FY 2024).
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Capital Recycling & Unit Repurchases
- Total Capital Repatriation FY 2025: C$741.7 million, including C$628.3 million from RioCan Living dispositions and C$113.4 million from lower‑growth asset sales.
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NCIB purchases: 6.9 million units at a weighted‑average price of $18.11/unit (cost C$127.2 M) in FY 2025; additional 2.6 million units at $19.51/unit (C$51.4 M) post‑year‑end.
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Development Activity
- Completed development projects FY 2025: ≈366,000 sq ft, comprising 264,000 sq ft mixed‑use and 102,000 sq ft commercial retail.
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No large‑scale new construction initiated in 2025; none planned for 2026.
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Debt Financing
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Issued C$200.0 million Series AP Senior Unsecured Debentures, coupon 4.417%, maturing 1 Oct 2032; net proceeds used to reduce revolving credit line balances, enhancing liquidity and lowering floating‑rate exposure.
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Financial Outlook for 2026
- Core FFO per unit (diluted) target: $1.60 – $1.62.
- Commercial Same‑Property NOI growth target: 3.5% – 4.0%.
- Development spending forecast: ~C$45 M – C$55 M.
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Portfolio investments spending forecast: ~C$95 M – C$115 M.
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Conference Call
- Management conference call scheduled for Wednesday, Feb 18 2026 at 10:00 a.m. ET (details provided in release).
Notable Quotes
“RioCan delivered another strong year, highlighted by exceptional operating results and disciplined execution of our capital recycling strategy… We enter 2026 with momentum fueled by intensifying demand from leading retailers…” – Jonathan Gitlin, President & CEO.