Riocan Real Estate Investment Trust · TSX:REI.UN
Riocan Real Estate Investment Trust — Q2 2025 Earnings Presentation
30 slides from Riocan Real Estate Investment Trust's earnings presentation, Aug 8, 2025
Slide 1: Strength in Retail – Second Quarter 2025 Investor Presentation
STRENGTH IN RETAIL SECOND QUARTER 2025 INVESTOR PRESENTATION East Hills AUGUST 7, 2025 Calgary, AB
Slide 2: RioCan At a Glance
RioCan At a Glance Located in Prime, In-Demand and Growing Markets 178 ~98% properties Committed Occupancy(3) ~32M Sq. Ft. aggregate net leasable area (3) ~21M Sq. Ft. pipeline zoned for development STRONG DEMOGRAPHIC PROFILE VANCOUVER Within 5 km of RioCan's portfolio: 4 assets EDMONTON 1.1M SF (1)
Slide 3: A Unique Opportunity
A Unique Opportunity STRONG, RELIABLE, GROWING CORE CASH FLOWS AT AN ATTRACTIVE DISCOUNT (3) THRIVING RETAIL PORTFOLIO STRATEGIC CAPITAL MANAGEMENT 94% of Gross Rent from Properties Located in Major Canadian Markets with High Barriers to Entry $1.3B to $1.4B $355 million ~85% of Properties with Groc
Slide 4: Key Takeaways - Year-to-date Q2 2025
Key Takeaways- Year-to-date Q2 2025 CONTINUED DEMAND FOR HIGH-QUALITY RIOCAN SPACE $0.96 9.1% growth over the comparable period last year. 97.5% Maintaining high occupancy with retail essentially full at FUNDS FROM COMMITTED OPERATIONS (“FFO”) On track to achieve annual OCCUPANCY (4) 98.2% PER UNIT
Slide 5: 2025 Outlook
(1) 2025 Outlook STRONG 2024 RESULTS UNDERPIN GROWTH IN 2025 $1.85 to $1.88 ~ 62% FFO per unit (1)(2)(3) FFO Payout Ratio (2) ~ 4% increase The lowest payout ratio from prior year (4) among the peer set (5), enabling significant cash flow retention to re-invest in the business 1) The Trust remains a
Slide 6: Commercial Same Property NOI (SPNOI)
(1) Commercial Same Property NOI (SPNOI) COMPONENTS OF GROWTH Contractual Rent Steps Same-property tenant pool rent RioCan's leasing strategy includes a Contractual Rent Steps steps which contribute to focus on embedding contractual rent Commercial SPNOI growth ~50% steps into every lease. 2025 SPNO
Slide 7: Favourable Market Dynamics
Favourable Market Dynamics LONG-TERM MACRO-TRENDS PRESENT MEANINGFUL DEMAND DRIVERS Shortage of Quality Supply Evolving Retail / Demand Population / Demand ◦ Lack of quality new retail supply ◦ Full omni-channel experience combines ◦ Population fuels demand for real estate exacerbated by high replac
Slide 8: High-quality, Necessity-based Retail revenue
High-quality, Necessity-based Retail revenue BUILDS RESILIENCE AND GENERATES LONG-TERM VALUE ~85% Property Mix (1) (2) properties with a grocery 10% component 31% z 59% (3) Grocery Anchored Centre Mixed-Use / Urban Open Air Centre and Other 1) Percentage of fair value of income producing properties
Slide 9: Curated & Diversified Tenant Base
Curated & Diversified Tenant Base PROVIDES CONSUMERS WITH EFFICIENT AND CONVENIENT ACCESS TO DAILY SHOPPING ESSENTIALS Furniture & Other Tenants ■ Grocery, Pharmacy & Liquor stores are Home 4.9% 5.2% fundamental components of our necessity-based portfolio, represented by large tenants with strong Fi
Slide 10: Sustained Demand For High-quality Retail Space
Sustained Demand For High-quality Retail Space DRIVING CONTINUED LEASING MOMENTUM (2) (1) (2) Retention Ratios Blended Leasing Spreads Average Net Rent PSF $22.86 91.5% 88.6% 92.3% 18.7% 19.2% $22.39 87.7% 83.8% $21.51 $20.98 10.7% $20.16 9.0% 6.3% 2021 2022 2023 2024 YTD 2025 2021 2022 2023 2024 LT
Slide 11: Lowest Payout Ratio Retains ~$150 Million of Free Cash Flow Annually
Lowest Payout Ratio Retains ~$150 Million of Free Cash Flow Annually WHILE OFFERING ATTRACTIVE TOP-TIER YIELDS (2) FFO Payout Ratio (1) Distribution and AFFO yield Peer Average: 73% Peer Average (AFFO Yield): 7.3% 8.8% 84% 8.1% 8.1% 7.7% 73% 69% 68% 70% 7.2% 6.5% 62% 5.9% 6.5% 6.0% 6.2% AFFO Yield 5
Slide 12: Continued Balance Sheet Improvement
Continued Balance Sheet Improvement TARGET (1) Q2 2025 (2) Q4 2024 (2) CAPITAL STRUCTURE METRICS Liquidity (3) (7) N/A $1.3B $1.7B Adjusted Debt to Adjusted EBITDA (4) (5) (7) 8.0x - 9.0x 8.88x 8.98x Adjusted Spot Debt to Adjusted EBITDA (5) (7) 8.0x - 9.0x 9.02x 9.12x BBB DBRS Investment Grade Cred
Slide 13: Deleveraging Plan on Track with Further Improvements Expected
Deleveraging Plan on Track with Further Improvements Expected Key Drivers: • Ramp up of EBITDA – natural Adjusted Debt to Adjusted EBITDA deleveraging from organic growth Within 8.0x - 9.0x Target Range and with new income from recent and ~0.5x higher as a near-term development deliveries result of
Slide 14: Enhanced Financial Flexibility
Enhanced Financial Flexibility ENABLED THROUGH CONDOMINIUM SALES AND MONETIZATION OF RIOCAN LIVING PORTFOLIO $1.3B to $1.4B(1) CAPITAL ALLOCATION STRATEGY of capital repatriation expected over the course of ADDITIONAL FINANCIAL FLEXIBILITY FOR ~ 2025 and 2026 ~ $1.0B ~ $0.4B Asset Additional Disposi
Slide 15: Continued Execution of Asset Monetization Strategy
Continued Execution of Asset Monetization Strategy IN-DEMAND RESIDENTIAL RENTAL PORTFOLIO IN PRIME LOCATIONS Strategic dispositions 14 (1) Newly built of five RioCan LivingTM buildings with IFRS avg. age: 4 years $197.2M (6) properties in line with value of $1.2B (2)(5) IFRS Values (6) • Completed d
Slide 16: Condominium Program Approaching Conclusion
Condominium Program Approaching Conclusion SIMPLIFIES OUR BUSINESS WITH SALES PROCEEDS TO BE REDEPLOYED Construction loans $124.2M repaid YTD (2) U.C. Tower 2 ~$0.4B ~77% Remaining inventory pre-sold with ~18% 11YV deposit Capital repatriation through closing of pre-sold units (1) Q3 2025 to Anticip
Slide 17: Ample Liquidity and Well-Distributed Debt Maturity
Ample Liquidity and Well-Distributed Debt Maturity 2025 DEBT MATURITIES SUBSTANTIALLY ADDRESSED Pro forma Debt Maturity Profile (1) 2,000 1,800 • The Trust improved its liquidity position with the closing of a new $200 million non-revolving unsecured credit facility due October 1, 2030 1,600 • Exten
Slide 18: Long-term Value Enhancing Opportunities Embedded in Sizable Portfolio
Long-term Value Enhancing Opportunities Embedded in Sizable Portfolio PROVEN TRACK-RECORD AND IN-HOUSE EXPERTISE TO UNLOCK VALUE THROUGH EVERY STEP OF THE DEVELOPMENT PROCESS 43.8M SQ. FT. DEVELOPMENT PIPELINE Zoning application Zoning Shovel Underway (1) submitted approved (1) ready (1) 3.0M 18.2M
Slide 19: Embedding Best Practices in Everything We Do
Embedding Best Practices in Everything We Do SELECT ACHIEVEMENTS ENVIRONMENT SOCIAL GOVERNANCE LEED Platinum 2024 Award AA Rating Awarded LEED Platinum Certification at Earned 2024 Waterstone Human Maintained an ESG rating upgrade to The WellTM for the retail and office Capital Canada’s Most Admired
Slide 20: Favourable Market Dynamics
APPENDIX Favourable Market Dynamics RioCan Durham Ajax, ON RIOCAN | INVESTOR PRESENTATION (March 2022) | 20 RIOCAN | INVESTOR PRESENTATION (Second Quarter 2025)
Slide 21: Physical Stores - The Hub of Omni-channel
Physical Stores - The Hub of Omni-channel BRICK & MORTAR IS CENTRAL TO SERVING CUSTOMERS HOW, WHERE AND WHEN THEY WANT Distribution Centre Brick & Mortar Store Home Occupancy costs trending higher Located in industrial park Located in heart of community In-store purchase Delivery from store BOPIS (1
Slide 22: Retailers Continue to Expand Their Physical Footprint
Retailers Continue to Expand Their Physical Footprint Gui Loureiro, Regional CEO, “Walmart Canada is on an ambitious growth journey to serve even more Canadians – Walmart Canada, Chile, Mexico and better and differently than ever before. This $6.5 billion investment is the largest we’ve Central Amer
Slide 23: Canadian Retail Real Estate Supply Constrained
Over the last five years, newly constructed retail represents Canadian Retail only ~1% of existing supply Real Estate is Supply 0.9% 1.0% 0.3% Constrained 0.9% 0.6% With replacement costs for well- In Millions of Sq. Ft. ~17Sq. located retailFt. well over market values, supply constraints are expect
Slide 24: Sustainable Demand
Sustainable Demand Square Feet of Retail per Capita(2) RETAIL REAL ESTATE SUPPLY HAS NOT KEPT PACE WITH POPULATION GROWTH IN CANADA (‘000s) Population growth in Canada is fueled by qualified and productive immigrants Post pandemic, Canada exceeded its immigration plan targets and welcomed 16.7 Sq. f
Slide 25: HBC Update
APPENDIX HBC Update RIOCAN | INVESTOR PRESENTATION ( Second Quarter 2025) | 25
Slide 26: Advancing Through The Receivership Process
Advancing Through The Receivership Process CAPITAL WILL BE ALLOCATED ONLY TO PROPERTIES THAT HAVE THE POTENTIAL TO GENERATE INCREMENTAL VALUE Continued Progress No Longer Providing with Receiver Financial Resources HBC stores in • Oakville Place (1) • Georgian Mall (1) RC-HBC LP RioCan managed • Tan
Slide 27: HBC Guarantees and Loan Summary
HBC Guarantees and Loan Summary Received extensive security packages and valuable lease termination rights in exchange for credit support to the LP BALANCE AS AT June 30, 2025 RIOCAN'S SECURITY Substantial security (inclusive of RioCan's 22% interest in the LP) Pledge of LP interest in: • Yorkdale S
Slide 28: Forward-Looking Information
FORWARD-LOOKING INFORMATION All information other than statements of current and historical fact included in this presentation is forward-looking information within the meaning of applicable securities laws. Forward-looking information can generally be identified by the use of forward-looking termin
Slide 29: Non-GAAP Measures
NON-GAAP MEASURES RioCan’s consolidated financial statements are prepared in accordance with IFRS. Consistent with RioCan’s management framework, management uses certain financial measures to assess RioCan’s financial performance, which are not generally accepted accounting principles (GAAP) under I
Slide 30: Head Office
Head Office | RioCan Yonge Eglinton Centre, 2300 Yonge Street, Suite 2200, Box 2386, Toronto, Ontario M4P 1E4 • 1-800-465-2733 • riocan.com RIOCAN | INVESTOR PRESENTATION (Second Quarter 2025)
RioCan Real Estate Investment Trust — Q2 2025 Earnings Presentation on 6ix