Original News Release
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
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 months and year ended December 31, 2025.
New leasing spreads of 37.3% for the year drove blended leasing spreads to 21.1%, reflecting strong supply/demand fundamentals
Commercial Same Property NOI growth of 4.5% for the Fourth Quarter supported full year growth of 3.6%
$741.7 millionof Total Capital Repatriation drove Adjusted Spot Debt to Adjusted EBITDA down to 8.6x
$178.6 million in Unit repurchases completed in 2025 and year-to-date 2026
“RioCan delivered another strong year, highlighted by exceptional operating results and disciplined execution of our capital recycling strategy. Our results underscore the strength of our core retail platform, which serves as the foundation for the strategic plan we announced at our Investor Day," said Jonathan Gitlin, President and CEO of RioCan. “We enter 2026 with momentum fueled by intensifying demand from leading retailers amid a broader market shortage of well-located retail space. This dynamic positions RioCan to generate sustainable, long-term value for our Unitholders."
Financial Highlights
Three months ended
December 31
Years ended
December 31
2025
2024
2025
2024
FFO per unit - diluted 1
$
0.45
$
0.45
$
1.87
$
1.78
Core FFO per unit - diluted 1
$
0.39
$
0.41
$
1.55
$
1.56
Net income per unit - diluted
$
0.43
$
0.42
$
0.23
$
1.58
As at
December 31,
2025
December 31,
2024
Net book value per unit
$
24.37
$
25.16
Full year FFO per unit (diluted) increased by 5.1%, driven by strong operating performance and the accretive impact of unit buybacks completed during the year. Results were further supported by higher Inventory-Related Gains1. These positive contributors were partially offset by higher interest expenses and lower interest income. In addition, G&A savings related to RioCan's 2024 organizational restructuring largely offset lower FFO from former HBC operations, consistent with the expectations provided in the full-year guidance for these assets.
Full year Core FFO per unit (diluted) benefitted primarily from Commercial Same Property NOI growth1 of 3.6% and the accretive impact of unit buybacks. The impact of asset dispositions, net of acquisitions, higher interest expense and lower interest income offset these benefits. We continue to adhere to our Investor Day guidance of ≥ 3.5% cumulative average growth rate Core FFO per unit (diluted) for 2026-2028.
Net income per unit for the year of $0.23 was $1.35 per unit lower than the same period last year, reflecting Net Valuation Losses1 totalling $443.1 million or $1.50 per unit relating to fair value of investment properties and the RC-HBC LP.
Adjusted Spot Debt to Adjusted EBITDA1 improved to 8.64x, the ratio of unsecured to secured debt was 63% to 37% and the FFO Payout Ratio1 was 61.6%. RioCan's strong balance sheet, reinforced by $1.5 billion of Liquidity1 and $9.2 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.
Financial Outlook
Financial Outlook 2026
Core FFO per unit - diluted (i)
$1.60 to $1.62
Commercial Same Property NOI growth (i)
3.5% to 4.0%
Development Spending (ii)1
~ $45 million - $55 million
Portfolio Investments Spending (ii)1
~ $95 million - $115 million
(i)
Refer to the Financial Outlook section of the Management Discussion and Analysis for the three months and year ended December 31, 2025 for further details. Readers are cautioned to review the discussion of forward-looking information and related risks under the Forward-Looking Information and Financial Outlook and Financial Outlook section of the MD&A.
(ii)
Development Spending includes an estimated amount of spending for pipeline advancement, residential inventory and mixed-use projects. Portfolio Investments Spending includes an estimated amount of spending for retail infill projects and asset enhancements.
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
December 31,
2025
December 31,
2024
Occupancy - committed (i)
97.8%
98.0%
Retail occupancy - committed (i)
98.5%
98.7%
Three months ended December 31
Years ended December 31
2025
2024
2025
2024
Blended leasing spread
24.9
%
25.5
%
21.1%
18.7%
New leasing spread
40.6
%
52.5
%
37.3%
36.7%
Renewal leasing spread
20.5
%
17.6
%
17.8%
13.1%
As at
December 31,
2025
December 31,
2024
Liquidity (ii)1
$
1,462
$
1,694
Adjusted Spot Debt to Adjusted EBITDA (ii)1
8.64x
9.12x
Unencumbered Assets (ii)1
$
9,173
$
8,201
(i)
Includes commercial portfolio only. Excludes income producing properties that are owned through joint ventures and reported under equity-accounted investments.
(ii)
At RioCan's Proportionate Share.
Occupancy: Committed retail and portfolio occupancy of 98.5% and 97.8%, respectively.
Leasing Progress: 5.0 million square feet of leasing activity in 2025, including 4.0 million square feet of renewals.
Leasing Spreads: Full year blended leasing spread increased to 21.1%. This record performance was driven by new and renewal leasing spreads of 37.3% and 17.8%, respectively. The average blended leasing spread of 24.7% on new leases and market renewals (comprising 65% of expiring leases) highlights RioCan's ability to extract the mark-to-market opportunity embedded within its portfolio.
Retention Ratio: A high retention ratio of 93.1%. Best-in-class tenants retained with minimal capital outlay; high renewal leasing spreads validate sustained demand.
Average Net Rent Per Square Foot for new leasing: $29.65 for the year captured mark-to-market gains, and generated a 28% premium compared to average net rent per occupied square foot of $23.18 at year end.
Same Property NOI: Commercial Same Property NOI1 grew 4.5% in the Fourth Quarter, the second consecutive quarter at or above that level, contributing to 3.6% growth for the year and highlighting the strength of our core assets and success of our leasing strategy.
Adjusted G&A Expense as a percentage of rental revenue1: Improved to 3.8% on a year-to-date basis, down from 4.1% in the comparable prior year period and is expected to be ~4% on a go-forward basis.
Capital Recycling: For the year ended December 31, 2025, Total Capital Repatriation1 was $741.7 million including Total Capital Repatriation from RioCan Living1 of $628.3 million and $113.4 million from the sale of lower-growth assets.
Total Capital Repatriation from RioCan Living was generated through the sale of the Trust's interests in seven RioCan Living properties and final condominium closings. Successful condominium closings reduced the Trust's residual inventory balance related to condominium projects under construction to $130 million on a proportionate basis or 2% of NAV.
Subsequent to year end, the Trust entered into a firm agreement to sell The Underwood Apartments in Calgary, Alberta for proceeds of $46.5 million, with closing expected in the first half of 2026. This transaction brings the cumulative number of sold and firm RioCan Living properties to nine and marks the halfway point to the $1.3 billion to $1.4 billion capital repatriation target.
The additional $113.4 million of lower-growth assets sold during 2025 included two cinema-anchored properties and two office buildings in secondary markets.
Proceeds from these capital repatriation activities have been reinvested into accretive uses including the repurchase of Trust Units.
Normal Course Issuer Bid (NCIB): During the year ended December 31, 2025, the Trust purchased and cancelled 6.9 million Units at a weighted average price of $18.11 per unit for a total cost of $127.2 million. Subsequent to year end, an additional 2.6 million units were purchased and cancelled at a weighted average price of $19.51 per unit for a total cost of $51.4 million. These purchases were made pursuant to the Trust's NCIBs and the automatic securities purchase plan (ASPP) adopted in connection with these NCIBs. We believe the current unit price does not reflect the intrinsic value of our business and view the NCIB as an accretive, disciplined use of capital.
Development Completions: During the year ended December 31, 2025, development projects totaling approximately 366,000 square feet were completed and transitioned into income producing properties. This includes 264,000 square feet of mixed-use projects comprised of residential rental and retail units and 102,000 square feet of commercial retail projects. No large-scale construction projects were initiated in 2025, and none are planned for 2026.
Balance Sheet and Liquidity: As of December 31, 2025, the Adjusted Spot Debt to Adjusted EBITDA ratio improved to 8.64x from 9.12x at the end of 2024, within RioCan's target range of 8.0x - 9.0x. The Trust has $1.5 billion of Liquidity to meet its financial obligations, including $1.3 billion from its revolving unsecured operating line of credit.
The Trust's unencumbered asset pool increased to $9.2 billion at the end of the Fourth Quarter from $8.2 billion at the end of 2024.
As of December 31, 2025, the Ratio of Unsecured Debt to Total Contractual Debt on a proportionate share basis increased to 63% from 56% at year end 2024.
During the Fourth Quarter, the Trust issued $200.0 million Series AP Senior Unsecured Debentures with an all-in coupon rate of 4.417%, maturing October 1, 2032. The net proceeds were applied against the drawn balances on the operating line of credit, improving the Trust's Liquidity and reducing the amount of floating rate debt outstanding.
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.
Conference Call and Webcast
Interested parties are invited to participate in a conference call with management on Wednesday, February 18, 2026 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: 255852.
For those unable to participate in the live mode, a replay will be available at 1-866-813-9403 with access code: 959096.
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 retail properties in densely populated communities. As at December 31, 2025, our portfolio is comprised of 168 properties with an aggregate net leasable area of approximately 31 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 annual audited consolidated financial statements ("2025 Annual 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 2025 Annual Consolidated Financial Statements and MD&A for the three months and year ended December 31, 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 - diluted, Core FFO, Core FFO per unit - diluted, Net Operating Income ("NOI"), Same Property NOI, Commercial Same Property NOI ("Commercial SPNOI"), Residential Inventory Gains at RioCan's Proportionate Share, FFO Payout Ratio, Core FFO Payout Ratio, Inventory-Related Gains, Net Valuation Losses, Total RC-HBC LP Valuation Losses, Adjusted G&A Expense as a percentage of rental revenue, Total Capital Repatriation, Total Capital Repatriation from RioCan Living, Ratio of Unsecured Debt to Total Contractual Debt, Liquidity, 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 months and year ended December 31, 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 December 31, 2025 and December 31, 2024:
As at
December 31, 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 (i)
$
13,628,959
$
195,820
$
13,824,779
$
13,839,154
$
425,690
$
14,264,844
Equity-accounted investments
159,596
(159,596
)
—
408,588
(408,588
)
—
Residential inventory
236,745
263,569
500,314
284,050
337,920
621,970
Mortgages and loans receivable
338,331
(17,152
)
321,179
470,729
(5,321
)
465,408
Assets held for sale
46,500
—
46,500
16,707
—
16,707
Receivables and other assets
339,221
57,909
397,130
262,573
77,571
340,144
Cash and cash equivalents
145,040
13,994
159,034
190,243
9,890
200,133
Total assets
$
14,894,392
$
354,544
$
15,248,936
$
15,472,044
$
437,162
$
15,909,206
Liabilities
Debentures payable
$
4,338,865
$
—
$
4,338,865
$
4,088,654
$
—
$
4,088,654
Mortgages payable
2,184,306
141,182
2,325,488
2,851,602
160,701
3,012,303
Mortgages payable associated with assets held for sale
28,343
—
28,343
—
—
—
Lines of credit and other bank loans
601,194
169,044
770,238
383,658
198,682
582,340
Accounts payable and other liabilities
584,421
44,318
628,739
589,792
77,779
667,571
Total liabilities
$
7,737,129
$
354,544
$
8,091,673
$
7,913,706
$
437,162
$
8,350,868
Equity
Unitholders’ equity
7,157,263
—
7,157,263
7,558,338
—
7,558,338
Total liabilities and equity
$
14,894,392
$
354,544
$
15,248,936
$
15,472,044
$
437,162
$
15,909,206
(i)
Net of $50.2 million of cumulative unrecognized share of losses from RC-HBC LP in excess of RioCan's carrying value at December 31, 2025.
The following tables reconcile the consolidated statements of income from IFRS to RioCan's proportionate share basis for the three months and years ended December 31, 2025 and 2024:
Three months ended December 31
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
$
295,071
$
2,696
$
297,767
$
293,327
$
8,231
$
301,558
Residential inventory sales
48,048
47,112
95,160
59,670
18,902
78,572
Property management and other service fees
4,796
—
4,796
4,606
(375
)
4,231
347,915
49,808
397,723
357,603
26,758
384,361
Operating costs
Rental operating costs
Recoverable under tenant leases
103,156
1,134
104,290
101,997
923
102,920
Non-recoverable costs
9,185
387
9,572
10,989
693
11,682
Residential inventory cost of sales
36,587
45,850
82,437
48,644
16,764
65,408
148,928
47,371
196,299
161,630
18,380
180,010
Operating income
198,987
2,437
201,424
195,973
8,378
204,351
Other income (loss)
Interest income
8,460
161
8,621
12,301
568
12,869
Income from equity-accounted investments
1,401
(1,401
)
—
3,977
(3,977
)
—
Fair value gain (loss) on investment properties, net (i)
9,706
(2,403
)
7,303
2,004
(1,855
)
149
Investment and other income (loss), net
2,308
1,730
4,038
3,782
(282
)
3,500
21,875
(1,913
)
19,962
22,064
(5,546
)
16,518
Other expenses
Interest costs, net
72,092
492
72,584
66,040
2,723
68,763
General and administrative
12,282
7
12,289
19,070
37
19,107
Internal leasing costs
3,907
—
3,907
3,262
—
3,262
Transaction and other costs
4,407
25
4,432
4,017
72
4,089
92,688
524
93,212
92,389
2,832
95,221
Income before income taxes
$
128,174
$
—
$
128,174
$
125,648
$
—
$
125,648
Net income
$
128,174
$
—
$
128,174
$
125,648
$
—
$
125,648
(i)
Net of $26.1 million of unrecognized share of losses from RC-HBC LP in excess of RioCan's carrying value for the three months ended December 31, 2025.
Years ended December 31
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
$
1,176,428
$
(2,853
)
$
1,173,575
$
1,137,127
$
32,672
$
1,169,799
Residential inventory sales
244,189
121,101
365,290
84,483
166,952
251,435
Property management and other service fees
15,954
(779
)
15,175
17,916
(1,320
)
16,596
1,436,571
117,469
1,554,040
1,239,526
198,304
1,437,830
Operating costs
Rental operating costs
Recoverable under tenant leases
414,386
3,983
418,369
397,042
3,453
400,495
Non-recoverable costs
41,638
5,939
47,577
37,147
2,723
39,870
Residential inventory cost of sales
181,831
109,806
291,637
64,389
137,710
202,099
637,855
119,728
757,583
498,578
143,886
642,464
Operating income (loss)
798,716
(2,259
)
796,457
740,948
54,418
795,366
Other income (loss)
Interest income
38,237
555
38,792
42,469
2,163
44,632
Income (loss) from equity-accounted investments
(236,934
)
236,934
—
38,507
(38,507
)
—
Fair value loss on investment properties, net (i)
(137,359
)
(197,367
)
(334,726
)
(29,353
)
(3,582
)
(32,935
)
Investment and other income (loss), net
(9,094
)
(32,801
)
(41,895
)
17,531
(2,769
)
14,762
(345,150
)
7,321
(337,829
)
69,154
(42,695
)
26,459
Other expenses
Interest costs, net
277,885
5,035
282,920
257,544
11,544
269,088
General and administrative
44,751
52
44,803
59,847
86
59,933
Internal leasing costs
13,715
—
13,715
13,293
—
13,293
Transaction and other costs
47,920
(25
)
47,895
6,747
93
6,840
384,271
5,062
389,333
337,431
11,723
349,154
Income before income taxes
$
69,295
$
—
$
69,295
$
472,671
$
—
$
472,671
Current income tax recovery
—
—
—
(794
)
—
(794
)
Net income
$
69,295
$
—
$
69,295
$
473,465
$
—
$
473,465
(i)
Net of $50.2 million of unrecognized share of losses from RC-HBC LP in excess of RioCan's carrying value for the year ended December 31, 2025.
NOIand Same Property NOI
The following table reconciles operating income to NOI and Same Property NOI to NOI for the three months and years ended December 31, 2025 and 2024:
Three months ended
December 31
Years ended
December 31
(thousands of dollars)
2025
2024
2025
2024
Operating Income
$
198,987
$
195,973
$
798,716
$
740,948
Adjusted for the following:
Property management and other service fees
(4,796
)
(4,606
)
(15,954
)
(17,916
)
Residential inventory gains
(11,461
)
(11,026
)
(62,358
)
(20,094
)
Operational lease revenue from ROU assets, net (i)
2,461
3,889
9,505
9,218
NOI
$
185,191
$
184,230
$
729,909
$
712,156
(i)
Includes $0.7 million and $2.5 million of straight-line rent from operational lease revenue from ROU assets for the three months and year ended December 31, 2025 (three months and year ended December 31, 2024 - $2.1 million).
Three months ended
December 31
Years ended
December 31
(thousands of dollars)
2025
2024
2025
2024
Commercial
Commercial Same Property NOI
$
157,514
$
150,764
$
607,474
$
586,426
NOI from income producing properties:
Acquired (i)
56
—
3,719
3,342
Disposed (i)
1,584
3,533
8,372
15,538
1,640
3,533
12,091
18,880
NOI from completed commercial developments
11,802
10,891
44,895
42,650
NOI from properties under de-leasing (ii)
4,149
4,516
16,813
16,800
Lease cancellation fees
1,156
1,591
7,200
4,817
Straight-line rent adjustment (iii)
3,280
5,226
11,719
13,359
NOI from commercial properties
179,541
176,521
700,192
682,932
Residential
Residential Same Property NOI
2,648
2,885
9,291
9,846
NOI from income producing properties:
Acquired (i)
—
—
1,895
1,878
Disposed (i)
1,161
3,050
10,529
12,120
1,161
3,050
12,424
13,998
NOI from completed residential developments
1,841
1,774
8,002
5,380
NOI from residential rental
5,650
7,709
29,717
29,224
NOI
$
185,191
$
184,230
$
729,909
$
712,156
(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 $0.7 million and $2.5 million of straight-line rent from operational lease revenue from ROU assets for the three months and year ended December 31, 2025 (three months and year ended December 31, 2024 - $2.1 million).
Three months ended
December 31
Years ended
December 31
(thousands of dollars)
2025
2024
2025
2024
Commercial Same Property NOI
$
157,514
$
150,764
$
607,474
$
586,426
Residential Same Property NOI
2,648
2,885
9,291
9,846
Same Property NOI
$
160,162
$
153,649
$
616,765
$
596,272
Residential Inventory Gains (RioCan's Proportionate Share)
The following table reconciles residential inventory gains from IFRS basis to RioCan's proportionate share basis for the three months and years ended December 31, 2025 and 2024:
Three months ended
December 31, 2025
Three months ended
December 31, 2024
(thousands of dollars)
Residential
inventory
sales
Residential
inventory
cost of sales
Residential
inventory
gains
Residential
inventory
sales
Residential
inventory
cost of sales
Residential
inventory
gains
Total - IFRS basis
$
48,048
$
36,587
$
11,461
$
59,670
$
48,644
$
11,026
Equity-accounted joint ventures
46,109
44,486
1,623
13,669
12,726
943
Total - IFRS and equity-accounted joint ventures
94,157
81,073
13,084
73,339
61,370
11,969
Other equity-accounted investments
1,003
1,364
(361
)
5,233
4,038
1,195
Total - RioCan's proportionate share
$
95,160
$
82,437
$
12,723
$
78,572
$
65,408
$
13,164
Year ended
December 31, 2025
Year ended
December 31, 2024
(thousands of dollars)
Residential
inventory
sales
Residential
inventory
cost of sales
Residential
inventory
gains
Residential
inventory
sales
Residential
inventory
cost of sales
Residential
inventory
gains
Total - IFRS basis
$
244,189
$
181,831
$
62,358
$
84,483
$
64,389
$
20,094
Equity-accounted joint ventures
105,622
95,336
10,286
142,614
117,666
24,948
Total - IFRS and equity-accounted joint ventures
349,811
277,167
72,644
227,097
182,055
45,042
Other equity-accounted investments
15,479
14,470
1,009
24,338
20,044
4,294
Total - RioCan's proportionate share
$
365,290
$
291,637
$
73,653
$
251,435
$
202,099
$
49,336
FFO
The following table reconciles net income attributable to Unitholders to FFO for the three months and years ended December 31, 2025 and 2024:
Three months ended
December 31
Years ended
December 31
(thousands of dollars, except where otherwise noted)
2025
2024
2025
2024
Net income attributable to Unitholders
$
128,174
$
125,648
$
69,295
$
473,465
Add back (deduct):
Fair value (gains) losses, net
(9,706
)
(2,004
)
137,359
29,353
Fair value losses (gains) included in equity-accounted investments (i)
2,403
1,855
197,367
3,584
Other RC-HBC LP Valuation Losses
—
—
110,196
—
Internal leasing costs
3,907
3,262
13,715
13,293
Transaction losses (gains) on investment properties, net (ii)
845
(1,345
)
6,186
534
Transaction gains on equity-accounted investments
—
—
—
(52
)
Transaction costs on sale of investment properties
4,132
2,435
8,098
3,666
Transaction costs on sale of investment properties in equity-accounted investments
—
—
73
—
ERP implementation costs / IT transformation costs
846
—
846
5,368
ERP amortization
(434
)
(484
)
(1,736
)
(1,302
)
Change in unrealized fair value on marketable securities
—
—
—
(4,648
)
Current income tax recovery
—
—
—
(794
)
Operational lease revenue from ROU assets
2,032
3,534
7,851
7,814
Operational lease expenses from ROU assets in equity-accounted investments
(5
)
(18
)
(55
)
(69
)
Capitalized interest related to equity-accounted investments (iii):
Capitalized interest related to properties under development
91
110
378
426
Capitalized interest related to residential inventory
152
1,386
3,588
5,333
FFO
$
132,437
$
134,379
$
553,161
$
535,971
Add back (deduct):
Inventory-Related Gains (iv)
(14,812
)
(11,957
)
(81,136
)
(51,161
)
Realized gain on sale of marketable securities
—
—
—
(1,997
)
Restructuring costs
—
7,202
255
7,852
Debt prepayment costs, net
—
912
—
455
HBC-Related Income (iv)
(1,913
)
(6,335
)
(13,232
)
(23,503
)
Core FFO
$
115,712
$
124,201
$
459,048
$
467,617
FFO per unit - diluted
$
0.45
$
0.45
$
1.87
$
1.78
Core FFO per unit - diluted
$
0.39
$
0.41
$
1.55
$
1.56
Weighted average number of Units - basic (in thousands)
294,920
300,469
295,894
300,464
Weighted average number of Units - diluted (in thousands)
294,958
300,524
295,896
300,473
FFO for last four quarters
$
553,161
$
535,971
Distributions paid for last four quarters
$
340,586
$
332,011
FFO Payout Ratio
61.6
%
61.9
%
Core FFO Payout Ratio
74.2
%
71.0
%
(i)
Net of $26.1 million and $50.2 million unrecognized share of losses from RC-HBC LP in excess of RioCan's carrying value for the three months and year ended December 31, 2025.
(ii)
Represents net transaction gains or losses connected to certain investment properties during the period.
(iii)
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.
(iv)
Inventory-Related Gains and HBC-Related Income for the three months and years ended December 31, 2025 and 2024 are as follows:
Three months ended
December 31
Years ended
December 31
(thousands of dollars)
2025
2024
2025
2024
Residential inventory gains - proportionate share (i)
$
12,723
$
13,166
$
73,653
$
49,336
Residential inventory marketing costs - IFRS
(86
)
(166
)
(642
)
(969
)
Residential inventory marketing costs from equity-accounted investments
(24
)
324
98
(449
)
Capitalized interest relief from sale of residential inventory in equity-accounted investments
(1,225
)
(190
)
(2,039
)
(1,187
)
NOI from other equity-accounted investments
388
229
388
229
Fee income related to residential inventory - IFRS (ii)
1,795
1,178
3,657
3,428
Investment and other income related to residential inventory - IFRS
1,450
185
1,596
3,239
Investment and other income (loss) related to residential inventory from equity-accounted investments
(209
)
(2,769
)
(209
)
(2,466
)
Residential inventory gain related to change in use included in investment and other income (loss) - IFRS
—
—
4,634
—
Inventory-Related Gains
$
14,812
$
11,957
$
81,136
$
51,161
Share of income from RC-HBC LP operations
$
537
$
3,485
$
3,891
$
13,690
Operational lease expenses from ROU assets in equity-accounted investments
(5
)
(18
)
(55
)
(69
)
Interest income from RC-HBC LP
1,015
1,164
4,748
3,330
Fee income from RC-HBC LP
366
1,704
4,648
6,552
HBC-Related Income
$
1,913
$
6,335
$
13,232
$
23,503
(i)
Refer to the Residential Inventory Gains (RioCan's Proportionate Share) table in this News Release for reconciliation.
(ii)
Related to fee income earned from residential inventory in accordance with IFRS.
Net Valuation Losses
Net Valuation Losses is the sum total of fair value loss on investment properties, net and Total RC-HBC LP Valuation Losses.
The following table reconciles Net Valuation Losses during the years ended December 31, 2025 and 2024:
Years ended December 31
2025
2024
Fair value losses on investment properties, net
$
137,359
$
29,353
Add:
Total RC-HBC LP Valuation Losses (see below for reconciliation)
305,781
—
Net Valuation Losses
$
443,140
$
29,353
Total RC-HBC LP Valuation Losses
The following table reconciles Total RC-HBC LP Valuation Losses and Other RC-HBC LP Valuation Losses during the three months and years ended December 31, 2025 and 2024:
Three months ended
December 31
Years ended
December 31
(thousands of dollars)
2025
2024
2025
2024
Share of net loss (income) from equity-accounted investments
$
(1,401
)
$
(3,977
)
$
236,934
$
(38,507
)
Add back (deduct):
Share of income from RC-HBC LP operations
537
3,485
3,891
13,689
Share of fair value losses on investment properties from RC-HBC LP pre-CCAA Proceedings
—
(1,608
)
—
(2,105
)
Share of income from other equity-accounted investments
1,298
2,100
10,660
26,923
Provision for credit losses on RC-HBC LP loans receivable
—
—
16,477
—
Provision for guarantee losses on RC-HBC LP mortgages payable
—
—
37,819
—
Total RC-HBC LP Valuation Losses
$
434
$
—
$
305,781
$
—
Deduct:
Share of fair value losses on investment properties from RC-HBC LP post-CCAA Proceedings
(434
)
—
(195,585
)
—
Other RC-HBC LP Valuation Losses
$
—
$
—
$
110,196
$
—
Total RC-HBC LP Valuation Losses comprise of the following during the three months and years ended December 31, 2025 and 2024:
Three months ended
December 31
Years ended
December 31
(thousands of dollars)
2025
2024
2025
2024
Provision for expected credit losses on finance lease receivables in RC-HBC LP
$
—
$
—
$
24,671
$
—
Write-off of straight-line rent receivable in RC-HBC LP
—
—
23,300
—
Transaction gains in RC-HBC LP
—
—
(550
)
—
Impairment losses on RC-HBC LP
—
—
8,479
—
Provision for credit losses on RC-HBC LP loans receivable
—
—
16,477
—
Provision for guarantee losses on RC-HBC LP mortgages payable
—
—
37,819
$
—
Other RC-HBC LP Valuation Losses
$
—
$
—
$
110,196
$
—
Fair value losses on investment properties from RC-HBC LP (i)
434
—
195,585
—
Total RC-HBC LP Valuation Losses
$
434
$
—
$
305,781
$
—
(i)
Net of $26.1 million and $50.2 million unrecognized share of losses from RC-HBC LP for the three months and year ended December 31, 2025 (three months and year ended December 31, 2024 - $nil).
Adjusted G&A Expense
Adjusted G&A Expense for the three months and years ended December 31, 2025 and 2024 are as follows:
(thousands of dollars, except where otherwise noted)
Three months ended December 31
Years ended December 31
2025
2024
Change
2025
2024
Change
Total G&A expense - IFRS
$
12,282
$
19,070
$
(6,788
)
$
44,751
$
59,847
$
(15,096
)
Add back (deduct):
ERP implementation costs / IT transformation costs
(846
)
—
(846
)
(846
)
(5,368
)
4,522
ERP amortization
434
484
(50
)
1,736
1,302
434
Restructuring costs
—
(7,202
)
7,202
(255
)
(7,852
)
7,597
Adjusted G&A Expense - IFRS
11,870
12,352
(482
)
45,386
47,929
(2,543
)
Add:
G&A expense from equity-accounted investments
7
37
(30
)
52
86
(34
)
Adjusted G&A Expense - RioCan's proportionate share
$
11,877
$
12,389
$
(512
)
$
45,438
$
48,015
$
(2,577
)
Rental revenue - IFRS
295,071
293,327
1,744
1,176,428
1,137,127
39,301
Add back (deduct):
Rental revenue from equity-accounted investments
2,696
8,221
(5,525
)
(2,853
)
32,626
(35,479
)
Write-off of straight-line rent receivable in RC-HBC LP
—
—
—
23,300
—
23,300
Rental revenue - RioCan's proportionate share
$
297,767
$
301,548
$
(3,781
)
$
1,196,875
$
1,169,753
$
27,122
Adjusted G&A Expense as a percentage of rental revenue
4.0
%
4.1
%
(0.1
)%
3.8
%
4.1
%
(0.3
)%
Total Capital Repatriation
The following table reconciles Total Capital Repatriation for the year ended December 31, 2025:
(thousands of dollars)
Year ended
December 31, 2025
Anticipated
2025 & 2026
Residential inventory sales revenue
$
349,811
$
434,000
Less:
Outstanding accounts receivable related to above sales - IFRS
(94,762
)
—
Outstanding accounts receivable related to above sales - EAI JV
(33,326
)
—
Proceeds from residential inventory sales (i)
221,723
434,000
Proceeds from RioCan Living dispositions
406,620
984,816
Total Capital Repatriation from RioCan Living
$
628,343
$
1,418,816
Proceeds from other asset dispositions
109,849
—
Proceeds from asset dispositions within EAI JV
3,500
—
Total Capital Repatriation
$
741,692
$
1,418,816
(i)
Based on RioCan's Proportionate Share in EAI JV.
Total Contractual Debt
The following table reconciles total debt to Total Contractual Debt as at December 31, 2025 and December 31, 2024:
As at
December 31, 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
$
4,338,865
$
—
$
4,338,865
$
4,088,654
$
—
$
4,088,654
Mortgages payable
2,184,306
141,182
2,325,488
2,851,602
160,701
3,012,303
Lines of credit and other bank loans
601,194
169,044
770,238
383,658
198,682
582,340
Mortgages payable associated with assets held for sale
28,343
—
28,343
—
—
—
Total debt
$
7,152,708
$
310,226
$
7,462,934
$
7,323,914
$
359,383
$
7,683,297
Less:
Unamortized debt financing costs, premiums and discounts on origination and debt assumed, and modifications
(28,821
)
(179
)
(29,000
)
(35,490
)
(526
)
(36,016
)
Total Contractual Debt
$
7,181,529
$
310,405
$
7,491,934
$
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 December 31, 2025 and December 31, 2024:
As at
December 31, 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
$
4,750,000
$
—
$
4,750,000
$
4,300,000
$
—
$
4,300,000
Total Secured Debt
2,431,529
310,405
2,741,934
3,059,404
359,909
3,419,313
Total Contractual Debt
$
7,181,529
$
310,405
$
7,491,934
$
7,359,404
$
359,909
$
7,719,313
Percentage of Total Contractual Debt:
Unsecured Debt
66.1
%
63.4
%
58.4
%
55.7
%
Secured Debt
33.9
%
36.6
%
41.6
%
44.3
%
Liquidity
As at December 31, 2025, RioCan had approximately $1.5 billion of Liquidity as summarized in the following table:
As at
December 31, 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
$
1,250,000
$
—
$
1,250,000
$
1,250,000
$
—
$
1,250,000
Undrawn construction lines and other bank loans
20,770
32,009
52,779
146,024
97,892
243,916
Cash and cash equivalents
145,040
13,994
159,034
190,243
9,890
200,133
Liquidity
$
1,415,810
$
46,003
$
1,461,813
$
1,586,267
$
107,782
$
1,694,049
Adjusted EBITDA
The following table reconciles consolidated net income attributable to Unitholders to Adjusted EBITDA:
Years ended
December 31, 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
$
69,295
$
—
$
69,295
$
473,465
$
—
$
473,465
Add (deduct) the following items:
Income tax recovery:
Current
—
—
—
(794
)
—
(794
)
Fair value losses on investment properties, net
137,359
197,367
334,726
29,353
3,582
32,935
Total RC-HBC LP Valuation Losses
305,781
(195,585
)
110,196
—
—
—
Change in unrealized fair value on marketable securities (i)
—
—
—
(4,648
)
—
(4,648
)
Internal leasing costs
13,715
—
13,715
13,293
—
13,293
Non-cash unit-based compensation expense
10,197
—
10,197
10,385
—
10,385
Interest costs, net
277,885
5,035
282,920
257,544
11,544
269,088
Debt prepayment gain
—
—
—
455
—
455
Restructuring costs
255
—
255
7,852
—
7,852
ERP implementation costs / IT transformation costs
846
—
846
5,368
—
5,368
Depreciation and amortization
1,510
—
1,510
1,450
—
1,450
Transaction (gains) losses on the sale of investment properties, net (ii)
5,539
—
5,539
2
(52
)
(50
)
Transaction costs on investment properties
8,098
73
8,171
3,672
1
3,673
Operational lease revenue (expenses) from ROU assets
7,851
(55
)
7,796
7,814
(69
)
7,745
Adjusted EBITDA
$
838,331
$
6,835
$
845,166
$
805,211
$
15,006
$
820,217
(i)
By adding back the change in unrealized fair value on marketable securities, RioCan effectively includes 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 Spot Debt to Adjusted EBITDA Ratio
Adjusted Spot Debt to Adjusted EBITDA ratio is calculated as follows:
As at
December 31, 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
$
7,152,708
$
310,226
$
7,462,934
$
7,323,914
$
359,383
$
7,683,297
Less: cash and cash equivalents
(145,040
)
(13,994
)
(159,034
)
(190,243
)
(9,890
)
(200,133
)
Adjusted Spot Debt
$
7,007,668
$
296,232
$
7,303,900
$
7,133,671
$
349,493
$
7,483,164
Adjusted EBITDA (i)
$
838,331
$
6,835
$
845,166
$
805,211
$
15,006
$
820,217
Adjusted Spot Debt to Adjusted EBITDA
8.36
8.64
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 December 31, 2025 and December 31, 2024:
As at
December 31, 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
$
13,628,959
$
195,820
$
13,824,779
$
13,839,154
$
425,690
$
14,264,844
Less: Encumbered investment properties
(4,474,260
)
(177,561
)
(4,651,821
)
(5,704,034
)
(359,465
)
(6,063,499
)
Unencumbered Assets
$
9,154,699
$
18,259
$
9,172,958
$
8,135,120
$
66,225
$
8,201,345
Forward-Looking Information
This News Release contains forward-looking information, including financial outlook, 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. Our financial outlook is prepared as of the date hereof and is disclosed to assist current and future unitholders and analysts in evaluating the effectiveness of RioCan's strategic plan and readers are cautioned that it may not be suitable for any other purpose. All 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, includes those assumptions set out under the heading "Forward-Looking Information and Financial Outlook and Financial Outlook" in RioCan's MD&A which estimated and assumptions are subject to numerous risks and uncertainties, including those described in the “Risks and Uncertainties” section in RioCan's MD&A 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/20260217631996/en/
Contacts:
RioCan Real Estate Investment Trust
Investor Relations Inquiries
Email: [email protected]
Source: RioCan Real Estate Investment Trust
View at source ↗