RioCan Delivers Strong Second Quarter Performance; Retail Committed Occupancy Climbs to 98.8%, Reflecting Sustained Demand for RioCan's Portfolio

TORONTO--(BUSINESS WIRE)--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.

Selected 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.

Selected 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.