RioCan Announces Strong Second Quarter Results - Continued Operational Excellence and Strategic Capital Recycling Advancements

About this update from Riocan Real Estate Investment Trust

.bwalignc { text-align: center; list-style-position: inside } .bwalignl { text-align: left } .bwalignr { text-align: right; list-style-position: inside } .bwblockalignl { margin-left: 0px; margin-right: auto } .bwcellpmargin { margin-bottom: 0px; margin-top: 0px } .bwleftsingle { border-left: solid black 1pt } .bwlistdisc { list-style-type: disc } .bwpadb3 { padding-bottom: 4px } .bwpadl0 { padding-left: 0px } .bwpadl2 { padding-left: 10px } .bwpadl4 { padding-left: 20px } .bwpadr0 { padding-right: 0px } .bwsinglebottom { border-bottom: solid black 1pt } .bwtablemarginb { margin-bottom: 10px } .bwtopsingle { border-top: solid black 1pt } .bwuline { text-decoration: underline } .bwvertalignb { vertical-align: bottom } .bwvertalignt { vertical-align: top } .bwwidth10 { width: 10% } .bwwidth100 { width: 100% } .bwwidth12 { width: 12% } .bwwidth2 { width: 2% } .bwwidth28 { width: 28% } .bwwidth38 { width: 38% } .bwwidth42 { width: 42% } .bwwidth52 { width: 52% } .bwwidth72 { width: 72% } .bwwidth88 { width: 88% } .bwwidth98 { width: 98% } 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 EBITDA 1 improved to 8.88x, ratio of unsecured to secured debt reached 61% to 39% and the FFO Payout Ratio 1 was 60.5%. RioCan's strong balance sheet, reinforced by $1.3 billion of Liquidity 1 and $9.0 billion in Unencumbered Assets 1 , 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 NOI 1 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 revenue 1 : 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 Debt 1 . 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/ RioCan Real Estate Investment Trust Investor Relations Inquiries Email: [email protected]

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