Business
RioCan Delivers Strong Second Quarter Performance; Retail Committed Occupancy Climbs to 98.8%, Reflecting Sustained Demand for RioCan's Portfolio
RioCan Delivers Strong Second Quarter Performance; Retail Committed Occupancy Climbs to 98.8%, Reflecting Sustained Demand for RioCan's
About this update from Riocan Real Estate Investment Trust
RioCan Real Estate Investment Trust (“RioCan" or the "Trust”) (TSX: REI.UN) announced today its financial and operating results for the three and six months ended June 30, 2026. Based on strong year-to-date leasing results, the Trust raises its guidance on Commercial Same Property NOI growth and reaffirms other 2026 guidance as previously disclosed in its 2025 annual MD&A. Net income per unit - diluted increased by 6.1%; Core FFO per unit - diluted (1) increased by 5.3% 98.8% retail committed occupancy reflects sustained demand in a supply-constrained market 23.1% blended leasing spread highlights the Trust’s ability to unlock embedded mark-to-market opportunities Total Capital Repatriation from RioCan Living – proforma (1),(2) of $1.26 billion, including $280.5 million of dispositions completed in the first half of 2026, nearing completion of $1.3 billion target for 2025 to 2026 “Our second-quarter results reinforce that RioCan's strategy is working , " said Jonathan Gitlin, President and CEO of RioCan. “We continue to execute against our Investor Day priorities, unlocking embedded growth across our portfolio and creating value through disciplined leasing, active asset management, and strategic capital allocation. The strength of our fundamentals, the quality of our necessity-based retail portfolio and our full operating independence provides RioCan the flexibility to make decisions based on what's best for each asset, supporting strong performance and durable growth. With significant opportunities ahead, we remain confident in our ability to create long-term value for our unitholders." Financial Highlights Three months ended June 30 Six months ended June 30 2026 2025 2026 2025 Core FFO per unit - diluted (1) $ 0.40 $ 0.38 $ 0.78 $ 0.77 Core FFO ($000s) (1) $ 115,323 $ 111,290 $ 228,273 $ 227,391 Net income per unit - diluted $ 0.52 $ 0.49 $ 0.84 $ 0.21 Net income ($000s) $ 151,237 $ 145,615 $ 244,399 $ 61,459 As at June 30, 2026 December 31, 2025 Net book value per unit $ 24.65 $ 24.37 Core FFO per unit - diluted in the Second Quarter was $0.40, an increase of $0.02 per unit or 5.3% from the same period ended in 2025, reflecting strong underlying operating performance. Growth was primarily driven by an increase in Commercial Net Operating Income (NOI) (1) , including Commercial Same Property NOI growth (1) of 4.3% and the accretive impact of unit repurchases. These gains were partially offset by lower interest income, higher net interest costs and the impact of asset dispositions, net of acquisitions. Net income per unit for the Second Quarter was $0.52, an increase of $0.03 per unit or 6.1% compared to the same period last year. This increase was primarily due to higher fair value gains on investment properties and the accretive impact of unit repurchases. These benefits were partially offset by lower operating income and lower income on equity-accounted investments, mainly a result of lower underlying residential inventory gains. Unitholders' equity increased $68.4 million during the Second Quarter to $7.18 billion primarily driven by investment property fair value gains from organic stabilized NOI growth. (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. (2) Includes conditional sales agreements. Conditional sales agreements are subject to finalization, due diligence and customary closing conditions and may not be completed as anticipated, within the expected timeframe, or at all. Financial Outlook 2026 (1) 2026 Commercial Same Property NOI growth is expected to be between 4.0% to 4.5%, an increase from the original guidance of 3.5% to 4.0% (2) . Higher growth expectations are driven mainly by leasing performance to date and the leasing pipeline for the balance of the year. The Trust reaffirms other 2026 guidance as previously disclosed in its 2025 annual MD&A. (1) The discussion in this section is qualified in its entirety by the cautionary language regarding forward-looking statements found on Forward-Looking Information section of this News Release. (2) The original financial outlook for 2026 Commercial SPNOI growth of 3.5% to 4.0% reflects expected growth contributions of approximately 75% from contractually secured growth, 20% from mark-to-market growth on renewals and 5% growth from strategic initiatives, based on assumptions of committed occupancy of approximately 97% to 98%, a 90% retention ratio on renewals and blended leasing spreads of approximately 15%. Renewals are based on lease expiries included in the Lease Expiries table in the Property Portfolio Overview - Property Operations - Commercial section of the Trust's December 31, 2025 MD&A. Revised Commercial SPNOI growth of 4.0% to 4.5% for 2026 is based on an increased blended leasing spread assumption of approximately 20%, reflecting a favourable leasing environment and the continued demand for RioCan’s portfolio. All other assumptions in the original financial outlook for 2026 remain unchanged. Sel ected Operational Highlights (in millions, except where otherwise noted, and percentages) As at June 30, 2026 June 30, 2025 Occupancy - committed (i) 98.1 % 97.5 % Retail occupancy - committed (i) 98.8 % 98.2 % Three months ended June 30 Twelve months ended June 30 2026 2025 2026 2025 Blended leasing spread 23.1 % 20.6 % 23.8 % 19.2 % New leasing spread 40.8 % 51.5 % 45.2 % 36.0 % Renewal leasing spread 20.7 % 17.4 % 19.4 % 16.1 % (i) Includes commercial portfolio only. Excludes income producing properties that are owned through joint ventures and reported under equity-accounted investments. Leasing Spreads: Blended leasing spread of 23.1% in the Second Quarter was supported by new leasing spread of 40.8% and renewal leasing spread of 20.7%. New Leasing Rents: Average net rent per square foot for new leasing was $37.73 per square foot, 60% above the $23.58 average net rent per occupied square foot at quarter end, reflective of RioCan's sustained mark-to-market opportunities. Leasing Activity: Completed 1.0 million square feet of leasing in the Second Quarter, including 0.9 million square feet of renewals. An additional 1.0 million square feet of lease maturities remain in 2026, providing further mark-to-market opportunities. Occupancy: Retail committed occupancy reached a record high for RioCan of 98.8%, with retail in-place occupancy of 98.0%. The committed to in-place spread narrowed by 0.5% from Q1 2026 as tenants were granted possession during the quarter of previously committed space, including Nations Fresh Foods at Oakville Place. Retention Ratio: Retention ratio remains high at 92.5% enabling efficient organic growth with minimal capital outlay. Operating Income: Higher rental revenue, net of rental operating costs for the Second Quarter was offset by lower residential inventory gains and lower fee income resulting in a $10.8 million decrease in the Second Quarter when compared to the same period last year. Commercial Same Property NOI Growth: 4.3% in the Second Quarter, continues to highlight the strength of RioCan’s core retail portfolio and success of RioCan's leasing strategy. Dispositions: For the six months ended June 30, 2026, the Trust completed the sale of its interests in four RioCan Living income producing properties: The Underwood Apartments, FourFifty The Well and Bellevue Phase One and Two for aggregate gross proceeds of $280.5 million. The Trust also terminated its forward purchase agreement to acquire Bellevue Phase Three. Subsequent to quarter end to August 4, 2026, the Trust entered into two conditional agreements to sell its interests in two RioCan Living income producing properties for combined estimated gross proceeds of $205.7 million. Total Capital Repatriation from RioCan Living - proforma (2) : $1.26 billion or 96% of the $1.3 billion (2025 to 2026) target on a cumulative basis for the eighteen months ended June 30, 2026. This includes gross proceeds of $687.1 million from the sales of 11 residential rental properties, $364.8 million of gross proceeds from residential inventory sales including RioCan's share in equity-accounted joint ventures (3) and the $205.7 million in estimated gross proceeds from the two conditional sale agreements noted above. (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. (2) Includes conditional sales agreements. Conditional sales agreements are subject to finalization, due diligence and customary closing conditions and may not be completed as anticipated, within the expected timeframe, or at all. (3) Gross proceeds from residential unit inventory sales including RioCan's share in equity-accounted investment for the six months ended June 30, 2026 was $143.0 million, primarily from the collection of accounts receivable during 2026 related to 2025 inventory sales. Select ed Financial Condition Highlights (in millions, except where otherwise noted) Consolidated Basis RioCan's Proportionate Share (1) As at June 30, 2026 December 31, 2025 June 30, 2026 December 31, 2025 Total assets $ 14,673 $ 14,894 $ 14,829 $ 15,249 Investment properties $ 13,605 $ 13,629 $ 13,641 $ 13,825 Cash and cash equivalents $ 67 $ 145 $ 76 $ 159 Total debt $ 6,992 $ 7,153 $ 7,122 $ 7,463 Adjusted Spot Debt to Adjusted EBITDA (1) 8.70x 8.36x 8.81x 8.64x Liquidity (including cash and cash equivalents) (1) $ 694 $ 1,416 $ 732 $ 1,462 Unencumbered Assets (1) $ 9,640 $ 9,155 $ 9,665 $ 9,173 During the Second Quarter, the Trust repaid its $500.0 million 1.97% Series AD senior unsecured debentures in full upon maturity, drawing on its operating line of credit resulting in a decline in Liquidity from December 31, 2025. The Trust continues to maintain ample liquidity to meet its financial obligations and a large unencumbered asset pool that provides additional financial flexibility. (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. Conference Call and Webcast Interested parties are invited to participate in a conference call with management on Wednesday, August 5, 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 365-657-4084 (Canada) or 1-833-461-5787 (US Toll Free) and entering the access code: 441358152. 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 June 30, 2026, our portfolio is comprised of 164 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 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, 2026, 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. Core FFO, Core FFO per unit - diluted, Net Operating Income (NOI), Commercial Same Property NOI Growth, Total Capital Repatriation from RioCan Living - Proforma, Liquidity, Adjusted Spot Debt to Adjusted EBITDA, RioCan's Proportionate Share in Equity-Accounted Investments Joint Ventures , 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. References to Consolidated Basis indicate the information is presented using IFRS basis of consolidation. 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, 2026. 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 Consolidated Basis to RioCan's Proportionate Share as at June 30, 2026 and December 31, 2025: As at June 30, 2026 December 31, 2025 (thousands of dollars) Consolidated Basis Equity-accounted investments (ii) RioCan's Proportionate Share Consolidated Basis Equity-accounted investments RioCan's Proportionate Share Assets Investment properties (i) $ 13,605,045 $ 35,713 $ 13,640,758 $ 13,628,959 $ 195,820 $ 13,824,779 Equity-accounted investments 155,836 (155,836 ) — 159,596 (159,596 ) — Residential inventory 231,320 250,011 481,331 236,745 263,569 500,314 Mortgages and loans receivable 241,687 — 241,687 338,331 (17,152 ) 321,179 Assets held for sale 102,000 — 102,000 46,500 — 46,500 Receivables and other assets 270,954 16,771 287,725 339,221 57,909 397,130 Cash and cash equivalents 66,630 9,194 75,824 145,040 13,994 159,034 Total assets $ 14,673,472 $ 155,853 $ 14,829,325 $ 14,894,392 $ 354,544 $ 15,248,936 Liabilities Debentures payable $ 3,939,514 $ — $ 3,939,514 $ 4,338,865 $ — $ 4,338,865 Mortgages payable 1,869,708 26,334 1,896,042 2,184,306 141,182 2,325,488 Mortgages payable associated with assets held for sale 75,594 — 75,594 28,343 — 28,343 Lines of credit and other bank loans 1,106,879 103,624 1,210,503 601,194 169,044 770,238 Accounts payable and other liabilities 504,603 25,895 530,498 584,421 44,318 628,739 Total liabilities $ 7,496,298 $ 155,853 $ 7,652,151 $ 7,737,129 $ 354,544 $ 8,091,673 Equity Unitholders’ equity 7,177,174 — 7,177,174 7,157,263 — 7,157,263 Total liabilities and equity $ 14,673,472 $ 155,853 $ 14,829,325 $ 14,894,392 $ 354,544 $ 15,248,936 (i) Net of $81.7 million of cumulative unrecognized share of losses from RC-HBC LP in excess of RioCan's carrying value as at June 30, 2026 (December 31, 2025 - $50.2 million). (ii) On March 31, 2026, RioCan ceased to account for the RC-HBC LP as an equity-accounted investment, and the investment was reclassified to an investment measured at fair value through profit and loss. Consequently, RC-HBC LP assets and debt are no longer included in RioCan's Proportionate Share amounts. The following tables reconcile the consolidated statements of income from Consolidated Basis to RioCan's Proportionate Share for the three and six months ended June 30, 2026 and 2025: Three months ended June 30 2026 2025 (thousands of dollars) Consolidated Basis Equity-accounted investments RioCan's Proportionate Share Consolidated Basis Equity-accounted investments RioCan's Proportionate Share Revenue Rental revenue $ 296,802 $ 854 $ 297,656 $ 291,254 $ 7,173 $ 298,427 Residential inventory sales 5,615 5,437 11,052 66,333 33,899 100,232 Property management and other service fees 1,938 — 1,938 4,067 (389 ) 3,678 304,355 6,291 310,646 361,654 40,683 402,337 Operating costs Rental operating costs Recoverable under tenant leases 102,256 383 102,639 101,934 806 102,740 Non-recoverable costs 8,537 98 8,635 10,896 3,302 14,198 Residential inventory cost of sales 4,126 8,233 12,359 48,624 27,018 75,642 114,919 8,714 123,633 161,454 31,126 192,580 Operating income (loss) 189,436 (2,423 ) 187,013 200,200 9,557 209,757 Other income (loss) Interest income 7,233 24 7,257 9,671 92 9,763 Income (loss) from equity-accounted investments (2,660 ) 2,660 — 4,809 (4,809 ) — Fair value gain (loss) on investment properties, net 51,981 119 52,100 15,929 (1,570 ) 14,359 Investment and other income (loss), net (4,588 ) (22 ) (4,610 ) 1,155 (1,346 ) (191 ) 51,966 2,781 54,747 31,564 (7,633 ) 23,931 Other expenses Interest costs, net 71,143 237 71,380 69,989 1,855 71,844 General and administrative 12,824 9 12,833 11,346 20 11,366 Internal leasing costs 3,226 12 3,238 3,242 — 3,242 Transaction and other costs 2,972 100 3,072 1,572 49 1,621 90,165 358 90,523 86,149 1,924 88,073 Income before income taxes $ 151,237 $ — $ 151,237 $ 145,615 $ — $ 145,615 Net income $ 151,237 $ — $ 151,237 $ 145,615 $ — $ 145,615 Six months ended June 30 2026 2025 (in thousands) Consolidated Basis Equity-accounted investments RioCan's Proportionate Share Consolidated Basis Equity-accounted investments RioCan's Proportionate Share Revenue Rental revenue $ 605,063 $ 1,924 $ 606,987 $ 587,995 $ (8,177 ) $ 579,818 Residential inventory sales 16,583 25,503 42,086 121,275 57,093 178,368 Property management and other service fees 5,015 — 5,015 8,215 (779 ) 7,436 626,661 27,427 654,088 717,485 48,137 765,622 Operating costs Rental operating costs Recoverable under tenant leases 220,745 1,095 221,840 211,929 1,770 213,699 Non-recoverable costs 18,013 (6 ) 18,007 21,296 5,066 26,362 Residential inventory cost of sales 12,414 27,414 39,828 81,981 48,372 130,353 251,172 28,503 279,675 315,206 55,208 370,414 Operating income (loss) 375,489 (1,076 ) 374,413 402,279 (7,071 ) 395,208 Other income (loss) Interest income 15,257 506 15,763 21,073 595 21,668 Income (loss) from equity-accounted investments (843 ) 843 — (199,257 ) 199,257 — Fair value gain (loss) on investment properties, net (i) 75,502 157 75,659 1,151 (154,059 ) (152,908 ) Investment and other income (loss), net (40,614 ) 644 (39,970 ) 3,579 (34,384 ) (30,805 ) 49,302 2,150 51,452 (173,454 ) 11,409 (162,045 ) Other expenses Interest costs, net 143,052 933 143,985 136,669 4,428 141,097 General and administrative 25,117 13 25,130 21,739 36 21,775 Internal leasing costs 6,671 12 6,683 6,498 — 6,498 Transaction and other costs 5,552 116 5,668 2,460 (126 ) 2,334 180,392 1,074 181,466 167,366 4,338 171,704 Income before income taxes $ 244,399 $ — $ 244,399 $ 61,459 $ — $ 61,459 Net income $ 244,399 $ — $ 244,399 $ 61,459 $ — $ 61,459 (i) Net of $31.5 million of unrecognized share of losses from RC-HBC LP in excess of RioCan's carrying value for the six months ended June 30, 2026 (six months ended June 30, 2025 - $nil). 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, 2026 and 2025: Three months ended June 30 Six months ended June 30 (thousands of dollars) 2026 2025 2026 2025 Operating Income $ 189,436 $ 200,200 $ 375,489 $ 402,279 Adjusted for the following: Property management and other service fees (1,938 ) (4,067 ) (5,015 ) (8,215 ) Residential inventory gains (1,489 ) (17,709 ) (4,169 ) (39,294 ) Operational lease revenue from ROU assets, net (i) 2,557 2,317 4,941 4,656 NOI $ 188,566 $ 180,741 $ 371,246 $ 359,426 (i) Includes $0.2 million and $0.3 million of straight-line rent from operational lease revenue from right-of-use (ROU) assets for the three and six months ended June 30, 2026, respectively (three and six months ended June 30, 2025 - $0.6 million and $1.2 million, respectively). Three months ended June 30 Six months ended June 30 (thousands of dollars) 2026 2025 2026 2025 Commercial Commercial Same Property NOI $ 159,713 $ 153,081 $ 315,819 $ 302,099 NOI from income producing properties: Acquired (i) 2,968 — 5,624 — Disposed (i) 2,092 2,191 2,875 5,154 5,060 2,191 8,499 5,154 NOI from completed commercial developments 10,657 9,914 20,841 20,524 NOI from properties under de-leasing and other (ii) 3,588 3,636 8,390 7,211 Lease cancellation fees 480 117 2,184 2,324 Straight-line rent adjustment (iii) 4,577 2,783 6,510 5,619 NOI from commercial properties 184,075 171,722 362,243 342,931 Residential Residential Same Property NOI 2,247 2,333 4,361 4,584 NOI from income producing properties: Acquired (i) — 1,169 — 1,169 Disposed (i) 2,119 5,517 4,581 10,742 2,119 6,686 4,581 11,911 NOI from completed residential developments 125 — 61 — NOI from residential rental 4,491 9,019 9,003 16,495 NOI $ 188,566 $ 180,741 $ 371,246 $ 359,426 (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 $0.2 million and $0.3 million of straight-line rent from operational lease revenue from ROU assets for the three and six months ended June 30, 2026, respectively (three and six months ended June 30, 2025 - $0.6 million and $1.2 million, respectively). Three months ended June 30 Six months ended June 30 (thousands of dollars) 2026 2025 2026 2025 Commercial Same Property NOI $ 159,713 $ 153,081 $ 315,819 $ 302,099 Residential Same Property NOI 2,247 2,333 4,361 4,584 Same Property NOI $ 161,960 $ 155,414 $ 320,180 $ 306,683 Residential Inventory Gains (Losses) at RioCan's Proportionate Share in EAI JV and RioCan's Proportionate Share The following table reconciles residential inventory gains (losses) from Consolidated Basis to RioCan's Proportionate Share in EAI JV and to RioCan's Proportionate Share for the three and six months ended June 30, 2026 and 2025: Three months ended June 30 2026 2025 (thousands of dollars) Residential inventory sales Residential inventory cost of sales Residential inventory gains (losses) Residential inventory sales Residential inventory cost of sales Residential inventory gains Total - Consolidated Basis $ 5,615 $ 4,126 $ 1,489 $ 66,333 $ 48,624 $ 17,709 Equity-accounted joint ventures 5,402 8,221 (2,819 ) 31,451 24,746 6,705 Total - RioCan's Proportionate Share in EAI JV 11,017 12,347 (1,330 ) 97,784 73,370 24,414 Other equity-accounted investments 35 12 23 2,448 2,272 176 Total - RioCan's Proportionate Share $ 11,052 $ 12,359 $ (1,307 ) $ 100,232 $ 75,642 $ 24,590 Six months ended June 30 2026 2025 (thousands of dollars) Residential inventory sales Residential inventory cost of sales Residential inventory gains (losses) Residential inventory sales Residential inventory cost of sales Residential inventory gains Total - Consolidated Basis $ 16,583 $ 12,414 $ 4,169 $ 121,275 $ 81,981 $ 39,294 Equity-accounted joint ventures 22,657 24,591 (1,934 ) 42,617 35,266 7,351 Total - RioCan's Proportionate Share in EAI JV 39,240 37,005 2,235 163,892 117,247 46,645 Other equity-accounted investments 2,846 2,823 23 14,476 13,106 1,370 Total - RioCan's Proportionate Share $ 42,086 $ 39,828 $ 2,258 $ 178,368 $ 130,353 $ 48,015 FFO The following table reconciles net income attributable to Unitholders to FFO for the three and six months ended June 30, 2026 and 2025: Three months ended June 30 Six months ended June 30 (thousands of dollars, except where otherwise noted) 2026 2025 2026 2025 Net income attributable to Unitholders $ 151,237 $ 145,615 $ 244,399 $ 61,459 Add back (deduct): Fair value gains, net (51,981 ) (15,929 ) (75,502 ) (1,151 ) Fair value (gains) losses included in equity-accounted investments (i) (119 ) 1,570 (156 ) 154,059 Other RC-HBC LP Valuation Losses — 154 36,934 56,450 Internal leasing costs 3,226 3,242 6,671 6,498 Internal leasing costs in equity-accounted investments 12 — 12 — Transaction losses on investment properties, net (ii) 6,890 714 10,178 281 Transaction costs on sale of investment properties 1,625 614 3,321 1,045 Transaction costs on sale of investment properties in equity-accounted investments 75 — 77 — ERP implementation costs / IT transformation costs 952 — 1,307 — ERP amortization (434 ) (434 ) (868 ) (868 ) Operational lease revenue from ROU assets 2,205 1,914 4,253 3,821 Operational lease expenses from ROU assets in equity-accounted investments — (18 ) (6 ) (36 ) Capitalized interest related to equity-accounted investments (iii): Capitalized interest related to properties under development 25 53 105 92 Capitalized interest related to residential inventory 1,105 1,011 1,873 2,420 FFO $ 114,818 $ 138,506 $ 232,598 $ 284,070 Add back (deduct): Inventory-Related Losses (Gains) (iv) 1,066 (23,773 ) (5,090 ) (48,074 ) Restructuring costs — — 2,190 255 HBC-Related Income (iv) (561 ) (3,443 ) (1,425 ) (8,860 ) Core FFO $ 115,323 $ 111,290 $ 228,273 $ 227,391 FFO per unit - diluted $ 0.39 $ 0.47 $ 0.80 $ 0.96 Core FFO per unit - diluted $ 0.40 $ 0.38 $ 0.78 $ 0.77 Weighted average number of Units - basic (in thousands) 291,117 296,093 291,313 296,873 Weighted average number of Units - diluted (in thousands) 291,305 296,093 291,450 296,873 FFO for last four quarters $ 501,689 $ 556,300 Core FFO for last four quarters $ 459,930 $ 467,982 Distributions paid for last four quarters $ 339,597 $ 336,553 FFO Payout Ratio 67.7 % 60.5 % Core FFO Payout Ratio 73.8 % 71.9 % (i) Net of $nil and $31.5 million unrecognized share of losses from RC-HBC LP in excess of RioCan's carrying value for the three and six months ended June 30, 2026, respectively (three and six months ended June 30, 2025 - $nil and $nil, respectively). (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, RC Yorkville LP and RCLC King and Sherbourne 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 (Losses) and HBC-Related Income for the three and six months ended June 30, 2026 and 2025 are as follows: Three months ended June 30 Six months ended June 30 (thousands of dollars) 2026 2025 2026 2025 Residential inventory gains $ 1,489 $ 17,709 $ 4,169 $ 39,294 Residential inventory gains (losses) from equity-accounted investments (i) (2,796 ) 6,881 (1,911 ) 8,721 Residential inventory marketing costs (214 ) (577 ) (285 ) (605 ) Residential inventory marketing costs from equity-accounted investments (25 ) (480 ) (40 ) (305 ) Capitalized interest relief from sale of residential inventory in equity-accounted investments (111 ) (388 ) (551 ) (550 ) NOI from other equity-accounted investments 173 — 326 — Fee income related to residential inventory (ii) 26 628 568 1,373 Investment and other income related to residential inventory 414 — 2,169 146 Investment and other income (loss) related to residential inventory from equity-accounted investments (22 ) — 645 — Inventory-Related (Losses) Gains $ (1,066 ) $ 23,773 $ 5,090 $ 48,074 Share of income from RC-HBC LP operations $ — $ 505 $ 72 $ 2,993 Operational lease expenses from ROU assets in equity-accounted investments — (18 ) (6 ) (36 ) Interest income from RC-HBC LP 213 1,186 513 2,363 Fee income from RC-HBC LP 348 1,770 846 3,540 HBC-Related Income $ 561 $ 3,443 $ 1,425 $ 8,860 (i) Refer to the Residential Inventory Gains (Losses) at RioCan's Proportionate Share in EAI JV and RioCan's Proportionate Share table in this News Release for reconciliation. (ii) Related to fee income earned from residential inventory in accordance with IFRS. Total Capital Repatriation from RioCan Living and Total Capital Repatriation from RioCan Living - proforma The following table reconciles Total Capital Repatriation from RioCan Living and Total Capital Repatriation from RioCan Living- proforma for the six months ended June 30, 2026 and eighteen months ended June 30, 2026: (thousands of dollars) Six months ended June 30, 2026 Eighteen months ended June 30, 2026 (i) Anticipated 2025 to 2026 Gross sales proceeds from RioCan Living dispositions $ 280,474 $ 687,094 $ 940,000 Proceeds from residential inventory sales: Residential inventory sales revenue 16,583 260,772 Residential inventory sales revenue - EAI JV 22,657 128,279 Add (Deduct): Outstanding accounts receivable related to above sales (ii) (841 ) (9,657 ) Outstanding accounts receivable related to above sales - EAI JV (iii) (1,294 ) (4,335 ) Accounts receivable extinguished from repossessed units (10,196 ) (10,196 ) Accounts receivable extinguished from repossessed units - EAI JV (106 ) (106 ) Change in accounts receivable related to 2025 sales 85,946 n/a Change in accounts receivable related to 2025 sales - EAI JV 30,285 n/a Gross proceeds from residential inventory sales 143,034 364,757 371,000 Total Capital Repatriation from RioCan Living $ 423,508 $ 1,051,851 $ 1,311,000 Subsequent to quarter end: Anticipated proceeds from RioCan Living dispositions - conditional deals (iv) 205,700 205,700 Total Capital Repatriation from RioCan Living - proforma (iv) $ 629,208 $ 1,257,551 $ 1,311,000 Percentage of Total Capital Repatriation from RioCan Living - proforma to Anticipated 2025-2026 96 % (i) Represents cumulative amount from January 1, 2025 to June 30, 2026. (ii) Outstanding accounts receivable related to above sales for the eighteen months ended June 30, 2026 represents $94.8 million outstanding accounts receivable related to 2025 sales as at December 31, 2025, $0.8 million outstanding accounts receivable related to 2026 sales as at June 30, 2026, net of $85.9 million reduction in accounts receivable related to 2025 sales collected in 2026. (iii) Outstanding accounts receivable related to above sales - EAI JV for the eighteen months ended June 30, 2026 represents $33.3 million outstanding accounts receivable related to 2025 sales as at December 31, 2025, $1.3 million outstanding accounts receivable related to 2026 sales as at June 30, 2026, net of $30.3 million reduction in accounts receivable related to 2025 sales collected in 2026. (iv) Includes conditional sales agreements. Conditional sales agreements are subject to finalization, due diligence and customary closing conditions and may not be completed as anticipated, within the expected timeframe, or at all. Liquidity As at June 30, 2026, RioCan had approximately $0.7 billion of Liquidity as summarized in the following table: As at June 30, 2026 December 31, 2025 (thousands of dollars) Consolidated Basis Equity-accounted investments RioCan's Proportionate Share Consolidated Basis Equity-accounted investments RioCan's Proportionate Share Undrawn revolving unsecured operating line of credit $ 627,000 $ — $ 627,000 $ 1,250,000 $ — $ 1,250,000 Undrawn construction lines and other bank loans — 28,800 28,800 20,770 32,009 52,779 Cash and cash equivalents 66,630 9,194 75,824 145,040 13,994 159,034 Liquidity $ 693,630 $ 37,994 $ 731,624 $ 1,415,810 $ 46,003 $ 1,461,813 Adjusted EBITDA The following table reconciles consolidated net income attributable to Unitholders to Adjusted EBITDA: Twelve months ended June 30, 2026 December 31, 2025 (thousands of dollars) Consolidated Basis Equity-accounted investments RioCan's Proportionate Share Consolidated Basis Equity-accounted investments RioCan's Proportionate Share Net income attributable to Unitholders $ 252,235 $ — $ 252,235 $ 69,295 $ — $ 69,295 Add (deduct) the following items: Fair value losses on investment properties, net 63,008 43,151 106,159 137,359 197,367 334,726 Total RC-HBC LP Valuation Losses 131,969 (41,289 ) 90,680 305,781 (195,585 ) 110,196 Internal leasing costs 13,888 12 13,900 13,715 — 13,715 Non-cash unit-based compensation expense 10,238 — 10,238 10,197 — 10,197 Interest costs, net 284,268 1,540 285,808 277,885 5,035 282,920 Restructuring costs 2,190 — 2,190 255 — 255 ERP implementation costs / IT transformation costs 2,153 — 2,153 846 — 846 Depreciation and amortization 1,674 — 1,674 1,510 — 1,510 Transaction losses on the sale of investment properties, net (i) 15,592 — 15,592 5,539 — 5,539 Transaction costs on investment properties 10,374 150 10,524 8,098 73 8,171 Operational lease revenue (expenses) from ROU assets 8,283 (25 ) 8,258 7,851 (55 ) 7,796 Adjusted EBITDA $ 795,872 $ 3,539 $ 799,411 $ 838,331 $ 6,835 $ 845,166 (i) 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 June 30, 2026 December 31, 2025 (thousands of dollars, except where otherwise noted) Consolidated Basis Equity-accounted investments RioCan's Proportionate Share Consolidated Basis Equity-accounted investments RioCan's Proportionate Share Adjusted Spot Debt to Adjusted EBITDA Total debt outstanding $ 6,991,695 $ 129,958 $ 7,121,653 $ 7,152,708 $ 310,226 $ 7,462,934 Less: cash and cash equivalents (66,630 ) (9,194 ) (75,824 ) (145,040 ) (13,994 ) (159,034 ) Adjusted Spot Debt $ 6,925,065 $ 120,764 $ 7,045,829 $ 7,007,668 $ 296,232 $ 7,303,900 Adjusted EBITDA (i) $ 795,872 $ 3,539 $ 799,411 $ 838,331 $ 6,835 $ 845,166 Adjusted Spot Debt to Adjusted EBITDA 8.70 8.81 8.36 8.64 (i) Adjusted EBITDA is on a rolling twelve-month basis. Unencumbered Assets The table below summarizes RioCan's Unencumbered Assets as at June 30, 2026 and December 31, 2025: As at June 30, 2026 December 31, 2025 (thousands of dollars) Consolidated Basis Equity-accounted investments RioCan's Proportionate Share Consolidated Basis Equity-accounted investments RioCan's Proportionate Share Investment properties $ 13,605,045 $ 35,713 $ 13,640,758 $ 13,628,959 $ 195,820 $ 13,824,779 Less: Encumbered investment properties (3,964,566 ) (10,755 ) (3,975,321 ) (4,474,260 ) (177,561 ) (4,651,821 ) Unencumbered Assets $ 9,640,479 $ 24,958 $ 9,665,437 $ 9,154,699 $ 18,259 $ 9,172,958 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”, "proforma", “objective”, “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plan”, “continue”, or similar expressions suggesting future outcomes or events and includes, without limitation, RioCan's financial guidance and references to Commercial Same Property NOI growth expectations. 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, including our Financial Outlook, 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 " in RioCan's MD&A which estimates 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 are available on RioCan's website at www.riocan.com and SEDAR+ at www.sedarplus.com ), 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/20260804422126/en/
View stock analysis, news, and events for Riocan Real Estate Investment Trust