RioCan Reports Third Quarter Results, Driven by Favourable Retail Fundamentals and the Strength of its Independent Platform
RioCan Reports Third Quarter Results, Driven by Favourable Retail Fundamentals and the Strength of its Independent Platform
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 nine months ended September 30, 2026.
- Net income per unit - diluted increased to $0.42; Core FFO per unit - diluted(1) increased by 5.1%
- RioCan's record high 98.9% retail committed occupancy reflects strong demand for its major market portfolio
- Average net rent per square foot for new leasing was $31.45, 32% above the $23.81 average net rent per occupied square foot at quarter end
“Our third quarter results reflect continued execution of our simple, retail-focused strategy and the strength of our business,” said Jonathan Gitlin, President and CEO of RioCan. “Strong tenant demand, record retail occupancy and limited new supply continue to support healthy leasing economics and earnings growth. Combined with the capabilities of our independent platform, these fundamentals position RioCan well to continue executing our strategy and creating long-term value for unitholders.”
Financial Highlights
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Three months ended September 30 |
|
Nine months ended September 30 |
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2026 |
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2025 |
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2026 |
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2025 |
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Core FFO per unit - diluted (1) |
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$ |
0.41 |
|
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$ |
0.39 |
|
|
|
$ |
1.19 |
|
|
$ |
1.16 |
|
Core FFO ($000s) (1) |
|
$ |
118,671 |
|
|
$ |
115,945 |
|
|
|
$ |
346,944 |
|
|
$ |
343,336 |
|
Net income (loss) per unit - diluted |
|
$ |
0.42 |
|
|
$ |
(0.41 |
) |
|
|
$ |
1.26 |
|
|
$ |
(0.20 |
) |
Net income (loss) ($000s) |
|
$ |
122,603 |
|
|
$ |
(120,338 |
) |
|
|
$ |
367,002 |
|
|
$ |
(58,879 |
) |
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As at |
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September 30,
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December 31,
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Net book value per unit |
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$ |
24.81 |
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$ |
24.37 |
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- Core FFO per unit - diluted in the Third Quarter was $0.41, an increase of $0.02 per unit or 5.1% compared to the same period last year, reflecting strong underlying operating performance. Growth was primarily driven by an increase in Commercial Same Property NOI growth(1) of 4.2%, the impact of commercial property acquisitions net of dispositions and the accretion from unit repurchases completed over the past four quarters. These gains were partially offset by lower interest income and higher net interest costs.
- Net income per unit for the Third Quarter was $0.42, compared to a loss of $0.41 in the same period last year. This increase was primarily due to fair value gains on investment properties in the current year compared to fair value losses in the prior year and losses related to equity-accounted investments in the prior year. Net income per unit also benefitted from the accretive impact of unit repurchases as noted above.
- Net book value per unit of $24.81 increased by $0.44 per unit from year end 2025 primarily driven by investment property fair value gains and other retained earnings as the Trust continues to compound value.
| (1) | A non-GAAP measurement. For reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release. |
Financial Outlook 2026(2)
-
The Trust expects 2026 Core FFO per unit – diluted to be toward the high end of its 2026 Financial Outlook range of $1.60 to $1.62 as set out in RioCan's Q4 2025 MD&A, reflecting strong Commercial Same Property NOI growth and lease cancellation fees anticipated to be higher in 2026 than the prior year. The Trust reaffirms its Commercial SPNOI growth of 4.0% to 4.5%, which was updated in RioCan’s Q2 2026 MD&A(3). The Trust now expects 2026 Development Spending(1) of $35 million to $45 million, a decrease from the original outlook of $45 million to $55 million(4), reflecting lower expected spending on residential inventory. All other 2026 financial outlook metrics remain unchanged from the Trust's Q4 2025 MD&A.
(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. |
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(2) |
The discussion in this section is qualified in its entirety by the cautionary language regarding forward-looking statements found in the Forward-Looking Information section of this News Release. |
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(3) |
The above current financial outlook for 2026 Commercial SPNOI growth of 4.0% to 4.5% compares to the original 2026 outlook of 3.5% to 4.0% as set out in RioCan’s MD&A for the year ended December 31, 2025 ("Q4 2025 MD&A"). As disclosed in RioCan’s MD&A for the three and six months ended June 30, 2026 ("Q2 2026 MD&A"), the Commercial SPNOI growth target of 4.0% to 4.5% 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 Commercial SPNOI growth for 2026 and the 2026-2028 targets remain unchanged. |
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(4) |
The original outlook for 2026 Development Spending of $45 million to $55 million is set out in RioCan’s Q4 2025 MD&A. |
Selected Operational Highlights
(in millions, except where otherwise noted, and percentages) |
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As at |
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September 30,
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September 30,
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Occupancy - committed (i) |
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98.2 |
% |
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|
97.8 |
% |
||
Retail occupancy - committed (i) |
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98.9 |
% |
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|
98.4 |
% |
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Three months ended September 30 |
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12 months ended September 30 |
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2026 |
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2025 |
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2026 |
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2025 |
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Blended leasing spread |
|
17.0 |
% |
|
|
20.8 |
% |
|
|
22.7 |
% |
|
|
21.0 |
% |
New leasing spread |
|
19.1 |
% |
|
|
44.1 |
% |
|
|
37.5 |
% |
|
|
40.7 |
% |
Renewal leasing spread |
|
16.4 |
% |
|
|
15.2 |
% |
|
|
19.4 |
% |
|
|
17.0 |
% |
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(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 17.0% in the Third Quarter was supported by a new leasing spread of 19.1% and a renewal leasing spread of 16.4%. Excluding fixed renewals, which accounted for approximately 46% of the total square footage of renewed leases, the average blended leasing spread was 20.6%. The Third Quarter renewal leasing spread reflects a higher proportion of fixed renewals relative to recent quarters.
- New Leasing Rents: Average net rent per square foot for new leasing was $31.45 per square foot, 32% above the $23.81 average net rent per occupied square foot at quarter end demonstrating the significant mark to market opportunities within RioCan's portfolio.
- Leasing Activity: Completed 1.1 million square feet of leasing in the Third Quarter, including 0.9 million square feet of renewals. Notable leasing activity included two significant grocery leases totaling 63,000 square feet: a 35,000 square foot renewal at a Montreal property, achieving a 64% increase in rent and a new 28,000 square foot lease at an Ottawa property.
- Occupancy: Achieved a RioCan record high retail committed occupancy of 98.9%, while retail in-place occupancy was 98.2%.
- Retention Ratio: Retention ratio of 89.9%, together with record retail committed occupancy, demonstrates strong demand for RioCan’s major market portfolio.
- Operating Income: Higher rental revenue, net of rental operating costs for the Third Quarter was offset by lower residential inventory gains and lower fee income, resulting in a $0.2 million decrease in the Third Quarter when compared to the same period last year.
- Commercial Same Property NOI Growth: 4.2% in the Third Quarter, continues to highlight the strength of RioCan’s core retail portfolio and continued successful execution of RioCan's retail-focused strategy.
- Acquisition: During the quarter, the Trust has agreed to purchase a partner’s 37.5% interest in East Hills, a necessity-based Costco-anchored property in Calgary, for total consideration of $54.8 million. The transaction is expected to close in Q1 2027, subject to customary closing conditions. The transaction will increase RioCan's interest in the property to 77.5%.
- Dispositions: During the quarter, the Trust completed the sale of Pivot for total gross proceeds of $95.7 million. For the nine months ended September 30, 2026, the Trust completed the sale of its interests in five RioCan Living properties, including Pivot, for aggregate gross proceeds of $376.2 million. The Trust also has a conditional agreement to sell its interest in another RioCan Living income producing property for estimated gross proceeds of $110.0 million. This sale is expected to close in Q4 2026.
- Total Capital Repatriation from RioCan Living - proforma (1)(2) : $1.27 billion of the $1.3 billion (2025 to 2026) target on a cumulative basis for the 21 months ended September 30, 2026. This includes gross proceeds of $782.8 million from the sale of 12 residential rental properties, $373.4 million of gross proceeds from residential inventory sales including RioCan's share in equity-accounted joint ventures(3) and the $110.0 million of estimated gross proceeds from the conditional RioCan Living sale agreement 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. |
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(2) |
Includes a conditional sale agreement. The conditional sale agreement is subject to finalization, due diligence and customary closing conditions and may not be completed as anticipated, within the expected timeframe, or at all. |
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(3) |
Gross proceeds from residential unit inventory sales including RioCan's share in equity-accounted investment for the nine months ended September 30, 2026 was $151.7 million, primarily from the collection of accounts receivable during 2026 related to 2025 inventory sales. |
Selected Financial Condition Highlights
(in millions, except where otherwise noted) |
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Consolidated Basis |
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RioCan's Proportionate Share (1) |
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As at |
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September 30,
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December 31,
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September 30,
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December 31,
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Total assets |
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$ |
14,612 |
|
|
$ |
14,894 |
|
|
$ |
14,760 |
|
|
$ |
15,249 |
Investment properties |
|
|
$ |
13,797 |
|
|
$ |
13,629 |
|
|
$ |
13,937 |
|
|
$ |
13,825 |
Cash and cash equivalents |
|
|
$ |
49 |
|
|
$ |
145 |
|
|
$ |
56 |
|
|
$ |
159 |
Total debt |
|
|
$ |
6,901 |
|
|
$ |
7,153 |
|
|
$ |
7,030 |
|
|
$ |
7,463 |
Adjusted Spot Debt to Adjusted EBITDA (1) |
|
|
8.88x |
|
|
8.36x |
|
|
8.81x |
|
|
8.64x |
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Liquidity (including cash and cash equivalents) (1) |
|
|
$ |
1,081 |
|
|
$ |
1,416 |
|
|
$ |
1,106 |
|
|
$ |
1,462 |
Unencumbered Assets (1) |
|
|
$ |
9,691 |
|
|
$ |
9,155 |
|
|
$ |
9,716 |
|
|
$ |
9,173 |
|
|
|
|
|
|
|
|
|
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|
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- During the Third Quarter, the Trust entered into a new $400.0 million, 7.3-year floating rate non-revolving unsecured credit facility priced favourably to its revolving unsecured operating line of credit. The net proceeds were used to partially repay the amounts drawn on RioCan’s revolving unsecured operating line of credit, strengthening its liquidity position and extending its debt maturity profile at a lower borrowing cost. The Trust continues to maintain ample liquidity to meet its financial obligations. A 71% Ratio of Unsecured Debt to Total Contractual Debt(1) supported by a large unencumbered asset pool 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 Tuesday, November 3, 2026 at 10:00 a.m. (ET). Participants will be required to identify themselves and the organization on whose behalf they are participating.
To access the conference call, click on the following link to register at least 10 minutes prior to the scheduled start of the call: Pre-registration link. Participants who pre-register at any time prior to the call will receive an email with dial-in credentials including a login passcode and PIN to gain immediate access to the live call. Those that are unable to pre-register may dial-in for operator assistance by calling 1-833-461-5787 (North America Toll Free) or 1-585-542-9983 (International Toll) and entering the access code: 813192984.
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 September 30, 2026, our portfolio is comprised of 163 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 nine months ended September 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, Ratio of Unsecured Debt to Total Contractual Debt, 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 nine months ended September 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 September 30, 2026 and December 31, 2025:
As at |
September 30, 2026 |
December 31, 2025 |
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(thousands of dollars) |
Consolidated Basis |
Equity-accounted investments (ii) |
RioCan's Proportionate Share |
Consolidated Basis |
Equity-accounted investments |
RioCan's Proportionate Share |
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Assets |
|
|
|
|
|
|
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Investment properties (i) |
$ |
13,797,083 |
$ |
139,495 |
|
$ |
13,936,578 |
$ |
13,628,959 |
$ |
195,820 |
|
$ |
13,824,779 |
||||||
Equity-accounted investments |
|
145,008 |
|
(145,008 |
) |
|
— |
|
159,596 |
|
(159,596 |
) |
|
— |
||||||
Residential inventory |
|
116,200 |
|
133,614 |
|
|
249,814 |
|
236,745 |
|
263,569 |
|
|
500,314 |
||||||
Mortgages and loans receivable |
|
241,244 |
|
— |
|
|
241,244 |
|
338,331 |
|
(17,152 |
) |
|
321,179 |
||||||
Assets held for sale |
|
6,300 |
|
— |
|
|
6,300 |
|
46,500 |
|
— |
|
|
46,500 |
||||||
Receivables and other assets |
|
256,559 |
|
13,435 |
|
|
269,994 |
|
339,221 |
|
57,909 |
|
|
397,130 |
||||||
Cash and cash equivalents |
|
49,478 |
|
7,019 |
|
|
56,497 |
|
145,040 |
|
13,994 |
|
|
159,034 |
||||||
Total assets |
$ |
14,611,872 |
$ |
148,555 |
|
$ |
14,760,427 |
$ |
14,894,392 |
$ |
354,544 |
|
$ |
15,248,936 |
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|
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|
|
|
|
|
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Liabilities |
|
|
|
|
|
|
||||||||||||||
Debentures payable |
$ |
3,940,283 |
$ |
— |
|
$ |
3,940,283 |
$ |
4,338,865 |
$ |
— |
|
$ |
4,338,865 |
||||||
Mortgages payable |
|
1,859,935 |
|
26,512 |
|
|
1,886,447 |
|
2,184,306 |
|
141,182 |
|
|
2,325,488 |
||||||
Mortgages payable associated with assets held for sale |
|
— |
|
— |
|
|
— |
|
28,343 |
|
— |
|
|
28,343 |
||||||
Lines of credit and other bank loans |
|
1,100,958 |
|
102,772 |
|
|
1,203,730 |
|
601,194 |
|
169,044 |
|
|
770,238 |
||||||
Accounts payable and other liabilities |
|
487,461 |
|
19,271 |
|
|
506,732 |
|
584,421 |
|
44,318 |
|
|
628,739 |
||||||
Total liabilities |
$ |
7,388,637 |
$ |
148,555 |
|
$ |
7,537,192 |
$ |
7,737,129 |
$ |
354,544 |
|
$ |
8,091,673 |
||||||
|
|
|
|
|
|
|
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Equity |
|
|
|
|
|
|
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Unitholders’ equity |
|
7,223,235 |
|
— |
|
|
7,223,235 |
|
7,157,263 |
|
— |
|
|
7,157,263 |
||||||
Total liabilities and equity |
$ |
14,611,872 |
$ |
148,555 |
|
$ |
14,760,427 |
$ |
14,894,392 |
$ |
354,544 |
|
$ |
15,248,936 |
||||||
(i) |
December 31, 2025 is net of $50.2 million of cumulative unrecognized share of losses from RC-HBC LP in excess of RioCan's carrying value. |
|
(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 (loss) from Consolidated Basis to RioCan's Proportionate Share for the three and nine months ended September 30, 2026 and 2025:
Three months ended September 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 |
$ |
300,242 |
|
$ |
861 |
|
$ |
301,103 |
|
$ |
293,362 |
|
$ |
2,629 |
|
$ |
295,991 |
|
||||||
Residential inventory sales |
|
3,072 |
|
|
122 |
|
|
3,194 |
|
|
74,866 |
|
|
16,896 |
|
|
91,762 |
|
||||||
Property management and other service fees |
|
1,496 |
|
|
— |
|
|
1,496 |
|
|
2,942 |
|
|
— |
|
|
2,942 |
|
||||||
|
|
304,810 |
|
|
983 |
|
|
305,793 |
|
|
371,170 |
|
|
19,525 |
|
|
390,695 |
|
||||||
Operating costs |
|
|
|
|
|
|
||||||||||||||||||
Rental operating costs |
|
|
|
|
|
|
||||||||||||||||||
Recoverable under tenant leases |
|
104,657 |
|
|
372 |
|
|
105,029 |
|
|
99,301 |
|
|
1,076 |
|
|
100,377 |
|
||||||
Non-recoverable costs |
|
8,173 |
|
|
74 |
|
|
8,247 |
|
|
11,157 |
|
|
483 |
|
|
11,640 |
|
||||||
Residential inventory cost of sales (recovery) |
|
(5,295 |
) |
|
165 |
|
|
(5,130 |
) |
|
63,262 |
|
|
15,585 |
|
|
78,847 |
|
||||||
|
|
107,535 |
|
|
611 |
|
|
108,146 |
|
|
173,720 |
|
|
17,144 |
|
|
190,864 |
|
||||||
Operating income |
|
197,275 |
|
|
372 |
|
|
197,647 |
|
|
197,450 |
|
|
2,381 |
|
|
199,831 |
|
||||||
Other income (loss) |
|
|
|
|
|
|
||||||||||||||||||
Interest income |
|
5,719 |
|
|
14 |
|
|
5,733 |
|
|
8,704 |
|
|
(202 |
) |
|
8,502 |
|
||||||
Loss from equity-accounted investments |
|
(15,196 |
) |
|
15,196 |
|
|
— |
|
|
(39,078 |
) |
|
39,078 |
|
|
— |
|
||||||
Fair value gain (loss) on investment properties, net (i) |
|
20,698 |
|
|
(15,707 |
) |
|
4,991 |
|
|
(148,216 |
) |
|
(40,905 |
) |
|
(189,121 |
) |
||||||
Investment and other income (loss), net |
|
784 |
|
|
407 |
|
|
1,191 |
|
|
(14,981 |
) |
|
(150 |
) |
|
(15,131 |
) |
||||||
|
|
12,005 |
|
|
(90 |
) |
|
11,915 |
|
|
(193,571 |
) |
|
(2,179 |
) |
|
(195,750 |
) |
||||||
Other expenses |
|
|
|
|
|
|
||||||||||||||||||
Interest costs, net |
|
69,570 |
|
|
145 |
|
|
69,715 |
|
|
69,124 |
|
|
116 |
|
|
69,240 |
|
||||||
General and administrative |
|
11,427 |
|
|
10 |
|
|
11,437 |
|
|
10,730 |
|
|
10 |
|
|
10,740 |
|
||||||
Internal leasing costs |
|
3,334 |
|
|
8 |
|
|
3,342 |
|
|
3,310 |
|
|
— |
|
|
3,310 |
|
||||||
Transaction and other costs |
|
2,346 |
|
|
119 |
|
|
2,465 |
|
|
41,053 |
|
|
76 |
|
|
41,129 |
|
||||||
|
|
86,677 |
|
|
282 |
|
|
86,959 |
|
|
124,217 |
|
|
202 |
|
|
124,419 |
|
||||||
Income (loss) before income taxes |
$ |
122,603 |
|
$ |
— |
|
$ |
122,603 |
|
$ |
(120,338 |
) |
$ |
— |
|
$ |
(120,338 |
) |
||||||
Net income (loss) |
$ |
122,603 |
|
$ |
— |
|
$ |
122,603 |
|
$ |
(120,338 |
) |
$ |
— |
|
$ |
(120,338 |
) |
||||||
(i) |
Net of $nil of unrecognized share of losses from RC-HBC LP in excess of RioCan's carrying value for the three months ended September 30, 2026 (three months ended September 30, 2025 - $24.1 million). |
Nine months ended September 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 |
$ |
905,305 |
|
$ |
2,785 |
|
$ |
908,090 |
|
$ |
881,357 |
|
$ |
(5,547 |
) |
$ |
875,810 |
|
||||||
Residential inventory sales |
|
19,655 |
|
|
25,625 |
|
|
45,280 |
|
|
196,141 |
|
|
73,989 |
|
|
270,130 |
|
||||||
Property management and other service fees |
|
6,511 |
|
|
— |
|
|
6,511 |
|
|
11,157 |
|
|
(779 |
) |
|
10,378 |
|
||||||
|
|
931,471 |
|
|
28,410 |
|
|
959,881 |
|
|
1,088,655 |
|
|
67,663 |
|
|
1,156,318 |
|
||||||
Operating costs |
|
|
|
|
|
|
||||||||||||||||||
Rental operating costs |
|
|
|
|
|
|
||||||||||||||||||
Recoverable under tenant leases |
|
325,402 |
|
|
1,467 |
|
|
326,869 |
|
|
311,230 |
|
|
2,846 |
|
|
314,076 |
|
||||||
Non-recoverable costs |
|
26,186 |
|
|
68 |
|
|
26,254 |
|
|
32,453 |
|
|
5,552 |
|
|
38,005 |
|
||||||
Residential inventory cost of sales |
|
7,119 |
|
|
27,579 |
|
|
34,698 |
|
|
145,243 |
|
|
63,956 |
|
|
209,199 |
|
||||||
|
|
358,707 |
|
|
29,114 |
|
|
387,821 |
|
|
488,926 |
|
|
72,354 |
|
|
561,280 |
|
||||||
Operating income (loss) |
|
572,764 |
|
|
(704 |
) |
|
572,060 |
|
|
599,729 |
|
|
(4,691 |
) |
|
595,038 |
|
||||||
Other income (loss) |
|
|
|
|
|
|
||||||||||||||||||
Interest income |
|
20,976 |
|
|
518 |
|
|
21,494 |
|
|
29,777 |
|
|
394 |
|
|
30,171 |
|
||||||
Loss from equity-accounted investments |
|
(16,039 |
) |
|
16,039 |
|
|
— |
|
|
(238,335 |
) |
|
238,335 |
|
|
— |
|
||||||
Fair value gain (loss) on investment properties, net (i) |
|
96,200 |
|
|
(15,551 |
) |
|
80,649 |
|
|
(147,065 |
) |
|
(194,964 |
) |
|
(342,029 |
) |
||||||
Investment and other income (loss), net |
|
(39,830 |
) |
|
1,054 |
|
|
(38,776 |
) |
|
(11,402 |
) |
|
(34,531 |
) |
|
(45,933 |
) |
||||||
|
|
61,307 |
|
|
2,060 |
|
|
63,367 |
|
|
(367,025 |
) |
|
9,234 |
|
|
(357,791 |
) |
||||||
Other expenses |
|
|
|
|
|
|
||||||||||||||||||
Interest costs, net |
|
212,622 |
|
|
1,078 |
|
|
213,700 |
|
|
205,793 |
|
|
4,545 |
|
|
210,338 |
|
||||||
General and administrative |
|
36,544 |
|
|
22 |
|
|
36,566 |
|
|
32,469 |
|
|
47 |
|
|
32,516 |
|
||||||
Internal leasing costs |
|
10,005 |
|
|
21 |
|
|
10,026 |
|
|
9,808 |
|
|
— |
|
|
9,808 |
|
||||||
Transaction and other costs |
|
7,898 |
|
|
235 |
|
|
8,133 |
|
|
43,513 |
|
|
(49 |
) |
|
43,464 |
|
||||||
|
|
267,069 |
|
|
1,356 |
|
|
268,425 |
|
|
291,583 |
|
|
4,543 |
|
|
296,126 |
|
||||||
Income (loss) before income taxes |
$ |
367,002 |
|
$ |
— |
|
$ |
367,002 |
|
$ |
(58,879 |
) |
$ |
— |
|
$ |
(58,879 |
) |
||||||
Net income (loss) |
$ |
367,002 |
|
$ |
— |
|
$ |
367,002 |
|
$ |
(58,879 |
) |
$ |
— |
|
$ |
(58,879 |
) |
||||||
(i) |
Net of $31.5 million of unrecognized share of losses from RC-HBC LP in excess of RioCan's carrying value for the nine months ended September 30, 2026 (nine months ended September 30, 2025 - $24.1 million). |
NOI and Same Property NOI
The following table reconciles operating income to NOI and Same Property NOI to NOI for the three and nine months ended September 30, 2026 and 2025:
|
Three months ended
|
|
Nine months ended
|
|||||||||||||
(thousands of dollars) |
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
||||||
Operating Income |
$ |
197,275 |
|
$ |
197,450 |
|
$ |
572,764 |
|
$ |
599,729 |
|
||||
Adjusted for the following: |
|
|
|
|
||||||||||||
Property management and other service fees |
|
(1,496 |
) |
|
(2,942 |
) |
|
(6,511 |
) |
|
(11,157 |
) |
||||
Residential inventory gains |
|
(8,367 |
) |
|
(11,604 |
) |
|
(12,536 |
) |
|
(50,898 |
) |
||||
Operational lease revenue from ROU assets, net (i) |
|
2,537 |
|
|
2,387 |
|
|
7,478 |
|
|
7,045 |
|
||||
NOI |
$ |
189,949 |
|
$ |
185,291 |
|
$ |
561,195 |
|
$ |
544,719 |
|
||||
(i) |
Includes $0.2 million and $0.5 million of straight-line rent from operational lease revenue from right-of-use (ROU) assets for the three and nine months ended September 30, 2026, respectively (three and nine months ended September 30, 2025 - $0.6 million and $1.8 million, respectively). |
|
Three months ended
|
|
Nine months ended
|
|||||||||
(thousands of dollars) |
2026 |
|
2025 |
|
2026 |
|
2025 |
|||||
Commercial |
|
|
|
|
||||||||
Commercial Same Property NOI |
$ |
162,196 |
$ |
155,688 |
$ |
478,268 |
$ |
457,787 |
||||
NOI from income producing properties: |
|
|
|
|
||||||||
Acquired (i) |
|
3,189 |
|
— |
|
8,814 |
|
— |
||||
Disposed (i) |
|
937 |
|
2,045 |
|
3,812 |
|
7,208 |
||||
|
|
4,126 |
|
2,045 |
|
12,626 |
|
7,208 |
||||
|
|
|
|
|
||||||||
NOI from completed commercial developments |
|
10,058 |
|
10,191 |
|
30,646 |
|
30,746 |
||||
NOI from properties under de-leasing and other (ii) |
|
3,483 |
|
3,255 |
|
11,872 |
|
10,428 |
||||
Lease cancellation fees |
|
4,600 |
|
3,720 |
|
6,784 |
|
6,044 |
||||
Straight-line rent adjustment (iii) |
|
3,109 |
|
2,820 |
|
9,619 |
|
8,439 |
||||
NOI from commercial properties |
|
187,572 |
|
177,719 |
|
549,815 |
|
520,652 |
||||
Residential |
|
|
|
|
||||||||
Residential Same Property NOI |
|
1,210 |
|
1,307 |
|
3,643 |
|
3,877 |
||||
NOI from income producing properties: |
|
|
|
|
||||||||
Disposed (i) |
|
694 |
|
6,265 |
|
7,204 |
|
20,190 |
||||
|
|
694 |
|
6,265 |
|
7,204 |
|
20,190 |
||||
NOI from completed residential developments |
|
473 |
|
— |
|
533 |
|
— |
||||
NOI from residential rental |
|
2,377 |
|
7,572 |
|
11,380 |
|
24,067 |
||||
NOI |
$ |
189,949 |
$ |
185,291 |
$ |
561,195 |
$ |
544,719 |
||||
(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 $0.5 million of straight-line rent from operational lease revenue from ROU assets for the three and nine months ended September 30, 2026, respectively (three and nine months ended September 30, 2025 - $0.6 million and $1.8 million, respectively). |
|
Three months ended
|
|
Nine months ended
|
|||||||||
(thousands of dollars) |
2026 |
|
2025 |
|
2026 |
|
2025 |
|||||
Commercial Same Property NOI |
$ |
162,196 |
$ |
155,688 |
$ |
478,268 |
$ |
457,787 |
||||
Residential Same Property NOI |
|
1,210 |
|
1,307 |
|
3,643 |
|
3,877 |
||||
Same Property NOI |
$ |
163,406 |
$ |
156,995 |
$ |
481,911 |
$ |
461,664 |
||||
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 nine months ended September 30, 2026 and 2025:
Three months ended September 30 |
2026 |
2025 |
|||||||||||||||||||
(thousands of dollars) |
Residential inventory sales |
Residential inventory cost of sales (recovery) |
Residential inventory gains (losses) |
Residential inventory sales |
Residential inventory cost of sales |
Residential inventory gains |
|||||||||||||||
Total - Consolidated Basis |
$ |
3,072 |
|
$ |
(5,295 |
) |
$ |
8,367 |
|
$ |
74,866 |
$ |
63,262 |
$ |
11,604 |
||||||
Equity-accounted joint ventures |
|
(44 |
) |
|
(24 |
) |
|
(20 |
) |
|
16,896 |
|
15,585 |
|
1,311 |
||||||
Total - RioCan's Proportionate Share in EAI JV |
|
3,028 |
|
|
(5,319 |
) |
|
8,347 |
|
|
91,762 |
|
78,847 |
|
12,915 |
||||||
Other equity-accounted investments |
|
166 |
|
|
189 |
|
|
(23 |
) |
|
— |
|
— |
|
— |
||||||
Total - RioCan's Proportionate Share |
$ |
3,194 |
|
$ |
(5,130 |
) |
$ |
8,324 |
|
$ |
91,762 |
$ |
78,847 |
$ |
12,915 |
||||||
Nine months ended September 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 |
$ |
19,655 |
$ |
7,119 |
$ |
12,536 |
|
$ |
196,141 |
$ |
145,243 |
$ |
50,898 |
||||||
Equity-accounted joint ventures |
|
22,613 |
|
24,567 |
|
(1,954 |
) |
|
59,513 |
|
50,850 |
|
8,663 |
||||||
Total - RioCan's Proportionate Share in EAI JV |
|
42,268 |
|
31,686 |
|
10,582 |
|
|
255,654 |
|
196,093 |
|
59,561 |
||||||
Other equity-accounted investments |
|
3,012 |
|
3,012 |
|
— |
|
|
14,476 |
|
13,106 |
|
1,370 |
||||||
Total - RioCan's Proportionate Share |
$ |
45,280 |
$ |
34,698 |
$ |
10,582 |
|
$ |
270,130 |
$ |
209,199 |
$ |
60,931 |
||||||
FFO
The following table reconciles net income (loss) attributable to Unitholders to FFO for the three and nine months ended September 30, 2026 and 2025:
|
Three months ended
|
|
Nine months ended
|
|||||||||||||
(thousands of dollars, except where otherwise noted) |
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
||||||
Net income (loss) attributable to Unitholders |
$ |
122,603 |
|
$ |
(120,338 |
) |
$ |
367,002 |
|
$ |
(58,879 |
) |
||||
Add back (deduct): |
|
|
|
|
||||||||||||
Fair value (gains) losses, net (v) |
|
(20,698 |
) |
|
148,216 |
|
|
(96,200 |
) |
|
147,065 |
|
||||
Fair value losses included in equity-accounted investments (i)(v) |
|
15,707 |
|
|
40,905 |
|
|
15,551 |
|
|
194,964 |
|
||||
Other RC-HBC LP Valuation Losses |
|
— |
|
|
53,746 |
|
|
36,934 |
|
|
110,196 |
|
||||
Internal leasing costs |
|
3,334 |
|
|
3,310 |
|
|
10,005 |
|
|
9,808 |
|
||||
Internal leasing costs in equity-accounted investments |
|
8 |
|
|
— |
|
|
20 |
|
|
— |
|
||||
Transaction losses on investment properties, net (ii) |
|
1,453 |
|
|
5,060 |
|
|
11,631 |
|
|
5,341 |
|
||||
Transaction costs on sale of investment properties |
|
1,373 |
|
|
2,921 |
|
|
4,694 |
|
|
3,966 |
|
||||
Transaction costs on sale of investment properties in equity-accounted investments |
|
109 |
|
|
73 |
|
|
186 |
|
|
73 |
|
||||
ERP implementation costs / IT transformation costs |
|
733 |
|
|
— |
|
|
2,040 |
|
|
— |
|
||||
ERP / IT transformation amortization |
|
(451 |
) |
|
(434 |
) |
|
(1,319 |
) |
|
(1,302 |
) |
||||
Operational lease revenue from ROU assets |
|
2,219 |
|
|
1,998 |
|
|
6,472 |
|
|
5,819 |
|
||||
Operational lease expenses from ROU assets in equity-accounted investments |
|
— |
|
|
(14 |
) |
|
(6 |
) |
|
(50 |
) |
||||
Capitalized interest related to equity-accounted investments (iii): |
|
|
|
|
||||||||||||
Capitalized interest related to properties under development (vi) |
|
26 |
|
|
195 |
|
|
131 |
|
|
287 |
|
||||
Capitalized interest related to residential inventory (vi) |
|
1,264 |
|
|
1,016 |
|
|
3,137 |
|
|
3,436 |
|
||||
FFO |
$ |
127,680 |
|
$ |
136,654 |
|
$ |
360,278 |
|
$ |
420,724 |
|
||||
Add back (deduct): |
|
|
|
|
||||||||||||
Inventory-Related Gains (iv) |
|
(8,883 |
) |
|
(18,250 |
) |
|
(13,973 |
) |
|
(66,324 |
) |
||||
Restructuring costs |
|
— |
|
|
— |
|
|
2,190 |
|
|
255 |
|
||||
HBC-Related Income (iv) |
|
(126 |
) |
|
(2,459 |
) |
|
(1,551 |
) |
|
(11,319 |
) |
||||
Core FFO |
$ |
118,671 |
|
$ |
115,945 |
|
$ |
346,944 |
|
$ |
343,336 |
|
||||
|
|
|
|
|
||||||||||||
FFO per unit - diluted |
$ |
0.44 |
|
$ |
0.46 |
|
$ |
1.24 |
|
$ |
1.42 |
|
||||
Core FFO per unit - diluted |
$ |
0.41 |
|
$ |
0.39 |
|
$ |
1.19 |
|
$ |
1.16 |
|
||||
Weighted average number of Units - basic (in thousands) |
|
291,118 |
|
|
294,940 |
|
|
291,247 |
|
|
296,222 |
|
||||
Weighted average number of Units - diluted (in thousands) |
|
291,304 |
|
|
294,945 |
|
|
291,401 |
|
|
296,222 |
|
||||
|
|
|
|
|
||||||||||||
FFO for last four quarters |
|
|
$ |
492,715 |
|
$ |
555,103 |
|
||||||||
Core FFO for last four quarters |
|
|
$ |
462,656 |
|
$ |
467,537 |
|
||||||||
Distributions paid for last four quarters |
|
|
$ |
338,491 |
|
$ |
338,556 |
|
||||||||
FFO Payout Ratio |
|
|
|
68.7 |
% |
|
61.0 |
% |
||||||||
Core FFO Payout Ratio |
|
|
|
73.2 |
% |
|
72.4 |
% |
||||||||
(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 nine months ended September 30, 2026, respectively (three and nine months ended September 30, 2025 - $24.1 million and $24.1 million, 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, 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) |
Refer to Inventory-Related Gains and HBC-Related Income below for the three and nine months ended September 30, 2026 and 2025. |
|
(v) |
During the three and nine months ended September 30, 2026, certain residential inventory lands were transferred to investment property following a change in use. The transfers resulted in net gains of $9.3 million recorded to fair value gains (losses) on investment properties, and net losses of $11.8 million on investment properties included in equity-accounted investments for the three and nine months ended September 30, 2026 (three and nine months ended September 30, 2025 - $nil). The net losses of $11.8 million on investment properties included in equity-accounted investments were net of $3.4 million of downstream eliminations that were also transferred to investment properties. |
|
(vi) |
For the transfers noted in footnote (v) above, indirect cumulative capitalized interest of $11.3 million incurred by equity-accounted investments in respect of their underlying residential inventory was also transferred to capitalized interest to properties under development for the three and nine months ended September 30, 2026. This amount is not reflected in the line items above as it relates to transfers rather than new activity and accordingly has no net impact to FFO or Core FFO. |
Inventory-Related Gains and HBC-Related Income for the three and nine months ended September 30, 2026 and 2025 are as follows:
|
Three months ended
|
|
Nine months ended
|
|||||||||||||
(thousands of dollars) |
2026 |
|
|
2025 |
|
|
2026 |
|
|
2025 |
||||||
Residential inventory gains |
$ |
8,367 |
|
$ |
11,604 |
|
$ |
12,536 |
|
$ |
50,898 |
|
||||
Residential inventory gains (losses) from equity-accounted investments (i) |
|
(43 |
) |
|
1,311 |
|
|
(1,954 |
) |
|
10,033 |
|
||||
Residential inventory marketing recoveries (costs) |
|
(492 |
) |
|
49 |
|
|
(777 |
) |
|
(556 |
) |
||||
Residential inventory marketing recoveries (costs) from equity-accounted investments |
|
(10 |
) |
|
427 |
|
|
(50 |
) |
|
122 |
|
||||
Capitalized interest relief from sale of residential inventory in equity-accounted investments |
|
— |
|
|
(264 |
) |
|
(551 |
) |
|
(814 |
) |
||||
NOI from other equity-accounted investments |
|
139 |
|
|
— |
|
|
465 |
|
|
— |
|
||||
Fee income (loss) related to residential inventory (ii) |
|
(13 |
) |
|
489 |
|
|
555 |
|
|
1,861 |
|
||||
Investment and other income related to residential inventory |
|
529 |
|
|
— |
|
|
2,698 |
|
|
146 |
|
||||
Investment and other income related to residential inventory from equity-accounted investments |
|
406 |
|
|
— |
|
|
1,051 |
|
|
— |
|
||||
Residential inventory gain related to change in use included in investment and other income |
|
— |
|
|
4,634 |
|
|
— |
|
|
4,634 |
|
||||
Inventory-Related Gains |
$ |
8,883 |
|
$ |
18,250 |
|
$ |
13,973 |
|
$ |
66,324 |
|
||||
|
|
|
|
|
||||||||||||
Share of income from RC-HBC LP operations |
$ |
— |
|
$ |
361 |
|
$ |
72 |
|
$ |
3,354 |
|
||||
Operational lease expenses from ROU assets in equity-accounted investments |
|
— |
|
|
(14 |
) |
|
(6 |
) |
|
(50 |
) |
||||
Interest income from RC-HBC LP |
|
— |
|
|
1,370 |
|
|
513 |
|
|
3,733 |
|
||||
Fee income from RC-HBC LP |
|
126 |
|
|
742 |
|
|
972 |
|
|
4,282 |
|
||||
HBC-Related Income |
$ |
126 |
|
$ |
2,459 |
|
$ |
1,551 |
|
$ |
11,319 |
|
||||
(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 nine months ended September 30, 2026 and 21 months ended September 30, 2026:
(thousands of dollars) |
Nine months ended September 30, 2026 |
21 months ended September 30, 2026 (i) |
Anticipated
|
||||||||
|
|
|
|
||||||||
Gross sales proceeds from RioCan Living dispositions |
$ |
376,174 |
|
$ |
782,794 |
|
$ |
940,000 |
|||
|
|
|
|
||||||||
Proceeds from residential inventory sales: |
|
|
|
||||||||
Residential inventory sales revenue |
|
19,655 |
|
|
263,844 |
|
|
||||
Residential inventory sales revenue - EAI JV |
|
22,613 |
|
|
128,235 |
|
|
||||
Add (Deduct): |
|
|
|
||||||||
Outstanding accounts receivable related to above sales (ii) |
|
(11 |
) |
|
(2,525 |
) |
|
||||
Outstanding accounts receivable related to above sales - EAI JV (iii) |
|
(444 |
) |
|
(1,052 |
) |
|
||||
Accounts receivable extinguished from repossessed units |
|
(12,610 |
) |
|
(12,610 |
) |
|
||||
Accounts receivable extinguished from repossessed units - EAI JV |
|
(2,476 |
) |
|
(2,476 |
) |
|
||||
Change in accounts receivable related to 2025 sales |
|
92,248 |
|
|
n/a |
|
|
||||
Change in accounts receivable related to 2025 sales - EAI JV |
|
32,718 |
|
|
n/a |
|
|
||||
Gross proceeds from residential inventory sales |
|
151,693 |
|
|
373,416 |
|
|
371,000 |
|||
|
|
|
|
||||||||
Total Capital Repatriation from RioCan Living |
$ |
527,867 |
|
$ |
1,156,210 |
|
$ |
1,311,000 |
|||
Subsequent to quarter end: |
|
|
|
||||||||
Anticipated proceeds from RioCan Living dispositions - conditional deal (iv) |
|
110,000 |
|
|
110,000 |
|
|
||||
Total Capital Repatriation from RioCan Living - proforma (iv) |
$ |
637,867 |
|
$ |
1,266,210 |
|
$ |
1,311,000 |
|||
Percentage of Total Capital Repatriation from RioCan Living - proforma to Anticipated 2025-2026 |
|
|
97 |
% |
|
||||||
(i) |
Represents cumulative amount from January 1, 2025 to September 30, 2026. |
|
(ii) |
Outstanding accounts receivable related to above sales for the 21 months ended September 30, 2026 represents $94.8 million outstanding accounts receivable related to 2025 sales as at December 31, 2025, $0.01 million outstanding accounts receivable related to 2026 sales as at September 30, 2026, net of $92.2 million reduction in accounts receivable related to 2025 sales collected in 2026. |
|
(iii) |
Outstanding accounts receivable related to above sales - EAI JV for the 21 months ended September 30, 2026 represents $33.3 million outstanding accounts receivable related to 2025 sales as at December 31, 2025, $0.4 million outstanding accounts receivable related to 2026 sales as at September 30, 2026, net of $32.7 million reduction in accounts receivable related to 2025 sales collected in 2026. |
|
(iv) |
Includes a conditional sale agreement. The conditional sale agreement is 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 September 30, 2026, RioCan had approximately $1.1 billion of Liquidity as summarized in the following table:
As at |
September 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 |
$ |
1,032,000 |
$ |
— |
$ |
1,032,000 |
$ |
1,250,000 |
$ |
— |
$ |
1,250,000 |
||||||
Undrawn construction lines and other bank loans |
|
— |
|
17,396 |
|
17,396 |
|
20,770 |
|
32,009 |
|
52,779 |
||||||
Cash and cash equivalents |
|
49,478 |
|
7,019 |
|
56,497 |
|
145,040 |
|
13,994 |
|
159,034 |
||||||
Liquidity |
$ |
1,081,478 |
$ |
24,415 |
$ |
1,105,893 |
$ |
1,415,810 |
$ |
46,003 |
$ |
1,461,813 |
||||||
Adjusted EBITDA
The following table reconciles consolidated net income attributable to Unitholders to Adjusted EBITDA:
12 months ended |
September 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 |
$ |
495,176 |
|
$ |
— |
|
$ |
495,176 |
|
$ |
69,295 |
$ |
— |
|
$ |
69,295 |
||||||
Add (deduct) the following items: |
|
|
|
|
|
|
||||||||||||||||
Fair value losses (gains) on investment properties, net |
|
(105,906 |
) |
|
17,954 |
|
|
(87,952 |
) |
|
137,359 |
|
197,367 |
|
|
334,726 |
||||||
Total RC-HBC LP Valuation Losses |
|
37,340 |
|
|
(406 |
) |
|
36,934 |
|
|
305,781 |
|
(195,585 |
) |
|
110,196 |
||||||
Internal leasing costs |
|
13,912 |
|
|
20 |
|
|
13,932 |
|
|
13,715 |
|
— |
|
|
13,715 |
||||||
Non-cash unit-based compensation expense |
|
10,462 |
|
|
— |
|
|
10,462 |
|
|
10,197 |
|
— |
|
|
10,197 |
||||||
Interest costs, net |
|
284,714 |
|
|
1,568 |
|
|
286,282 |
|
|
277,885 |
|
5,035 |
|
|
282,920 |
||||||
Restructuring costs |
|
2,190 |
|
|
— |
|
|
2,190 |
|
|
255 |
|
— |
|
|
255 |
||||||
ERP implementation costs / IT transformation costs |
|
2,886 |
|
|
— |
|
|
2,886 |
|
|
846 |
|
— |
|
|
846 |
||||||
Depreciation and amortization |
|
1,668 |
|
|
— |
|
|
1,668 |
|
|
1,510 |
|
— |
|
|
1,510 |
||||||
Transaction losses on the sale of investment properties, net (i) |
|
12,145 |
|
|
— |
|
|
12,145 |
|
|
5,539 |
|
— |
|
|
5,539 |
||||||
Transaction costs on investment properties |
|
8,827 |
|
|
186 |
|
|
9,013 |
|
|
8,098 |
|
73 |
|
|
8,171 |
||||||
Operational lease revenue (expenses) from ROU assets |
|
8,504 |
|
|
(11 |
) |
|
8,493 |
|
|
7,851 |
|
(55 |
) |
|
7,796 |
||||||
Adjusted EBITDA |
$ |
771,918 |
|
$ |
19,311 |
|
$ |
791,229 |
|
$ |
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 |
September 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 |
$ |
6,901,176 |
|
$ |
129,284 |
|
$ |
7,030,460 |
|
$ |
7,152,708 |
|
$ |
310,226 |
|
$ |
7,462,934 |
|
||||||
Less: cash and cash equivalents |
|
(49,478 |
) |
|
(7,019 |
) |
|
(56,497 |
) |
|
(145,040 |
) |
|
(13,994 |
) |
|
(159,034 |
) |
||||||
Adjusted Spot Debt |
$ |
6,851,698 |
|
$ |
122,265 |
|
$ |
6,973,963 |
|
$ |
7,007,668 |
|
$ |
296,232 |
|
$ |
7,303,900 |
|
||||||
Adjusted EBITDA (i) |
$ |
771,918 |
|
$ |
19,311 |
|
$ |
791,229 |
|
$ |
838,331 |
|
$ |
6,835 |
|
$ |
845,166 |
|
||||||
Adjusted Spot Debt to Adjusted EBITDA |
|
8.88 |
|
|
|
8.81 |
|
|
8.36 |
|
|
|
8.64 |
|
||||||||||
(i) |
Adjusted EBITDA is on a rolling 12- month basis. |
Unencumbered Assets
The table below summarizes RioCan's Unencumbered Assets as at September 30, 2026 and December 31, 2025:
As at |
September 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 |
$ |
13,797,083 |
|
$ |
139,495 |
|
$ |
13,936,578 |
|
$ |
13,628,959 |
|
$ |
195,820 |
|
$ |
13,824,779 |
|
||||||
Less: Encumbered investment properties |
|
(4,105,741 |
) |
|
(114,539 |
) |
|
(4,220,280 |
) |
|
(4,474,260 |
) |
|
(177,561 |
) |
|
(4,651,821 |
) |
||||||
Unencumbered Assets |
$ |
9,691,342 |
|
$ |
24,956 |
|
$ |
9,716,298 |
|
$ |
9,154,699 |
|
$ |
18,259 |
|
$ |
9,172,958 |
|
||||||
Unsecured Debt and Secured Debt
The following table reconciles Total Unsecured and Secured Debt to Total Contractual Debt as at September 30, 2026 and December 31, 2025:
As at |
September 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 |
||||||||||||||||
Total Unsecured Debt |
$ |
4,968,000 |
|
$ |
— |
$ |
4,968,000 |
|
$ |
4,750,000 |
|
$ |
— |
$ |
4,750,000 |
|
||||||
Total Secured Debt |
|
1,950,256 |
|
|
129,339 |
|
2,079,595 |
|
|
2,431,529 |
|
|
310,405 |
|
2,741,934 |
|
||||||
Total Contractual Debt (i) |
$ |
6,918,256 |
|
$ |
129,339 |
$ |
7,047,595 |
|
$ |
7,181,529 |
|
$ |
310,405 |
$ |
7,491,934 |
|
||||||
|
|
|
|
|
|
|
||||||||||||||||
Percentage of Total Contractual Debt: |
|
|
|
|
|
|||||||||||||||||
Unsecured Debt |
|
71.8 |
% |
|
|
70.5 |
% |
|
66.1 |
% |
|
|
63.4 |
% |
||||||||
Secured Debt |
|
28.2 |
% |
|
|
29.5 |
% |
|
33.9 |
% |
|
|
36.6 |
% |
||||||||
(i) |
Refer to below for reconciliation of Total Contractual Debt. |
As at |
September 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 |
||||||||||||||||||
Total debt |
$ |
6,901,176 |
|
$ |
129,284 |
|
$ |
7,030,460 |
|
$ |
7,152,708 |
|
$ |
310,226 |
|
$ |
7,462,934 |
|
||||||
Less: |
|
|
|
|
|
|
||||||||||||||||||
Unamortized debt financing costs, premiums and discounts on origination and debt assumed, and modifications |
|
(17,080 |
) |
|
(55 |
) |
|
(17,135 |
) |
|
(28,821 |
) |
|
(179 |
) |
|
(29,000 |
) |
||||||
Total Contractual Debt |
$ |
6,918,256 |
|
$ |
129,339 |
|
$ |
7,047,595 |
|
$ |
7,181,529 |
|
$ |
310,405 |
|
$ |
7,491,934 |
|
||||||
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. 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.
Contacts
RioCan Real Estate Investment Trust
Investor Relations Inquiries
Email: ir@riocan.com
