RioCan Announces Strong Third Quarter Results – Continuous Operational Strength with 4.6% Commercial Same Property NOI Growth and 98.4% Retail Occupancy

TORONTO–(BUSINESS WIRE)–RioCan Real Estate Investment Trust (“RioCan” or the “Trust”) (TSX: REI.UN) announced today its financial results for the three and nine months ended September 30, 2025.

• Achieved new leasing spreads of 44.1% and blended leasing spreads of 20.8% by capturing market rent growth across the portfolio
• 4.6% Commercial Same Property NOI growth reflects continued strength across core retail assets
• 98.4% Retail Occupancy reflects strong demand

“This was an exceptional quarter operationally, highlighting the momentum generated by RioCan’s platform, processes, and people. Our leasing strategies continue to fuel organic growth. We are aligning rents with market conditions and retain high-calibre retail tenants who serve Canadians’ daily shopping needs,” said Jonathan Gitlin, President and CEO of RioCan. “As we simplify our business, we free up capital that will be reinvested in our core retail portfolio, amplifying growth now and in the future.”

• FFO per unit – diluted was unchanged from the same period last year. Strong operating performance, driven by strong growth in Same Property NOI, and accretion from unit buybacks in the current year, together with higher gains related to residential inventory, contributed positively to results. These benefits were offset by higher interest expense and lower fee and interest income. Lower FFO related to former HBC locations also had an impact, with this effect previously forecasted in the full year revised guidance issued in Q1 2025.
• Net loss per unit of $0.41 was $0.73 per unit lower than the same period last year, reflecting Net Valuation Losses¹ totalling $242.8 million relating to fair value of investment properties and the RC-HBC LP.
• Adjusted Spot Debt to Adjusted EBITDA¹ improved to 8.80x, the ratio of unsecured to secured debt reached 64% to 36% and the FFO Payout Ratio¹ was 61.0%. RioCan’s strong balance sheet, reinforced by $1.1 billion of Liquidity¹ and $9.3 billion in Unencumbered Assets¹, enables flexibility and optimization of capital allocation.

1. A non-GAAP measurement. For reconciliations and the basis of presentation of RioCan’s non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release.

Outlook

• Our outlook remains aligned with the guidance provided in Q1 2025:

1. A non-GAAP measurement. For reconciliations and the basis of presentation of RioCan’s non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release.

Selected Financial and Operational Highlights

• Occupancy: RioCan’s committed occupancy and retail committed occupancy were strong at 97.8% and 98.4%, increasing by 30 and 20 basis points from the previous quarter, respectively.
• Retention Ratio: Retention ratio of 92.7% for the Third Quarter demonstrates the importance of existing space to our tenants.
• Leasing Progress: 1.0 million square feet of leasing activity in the Third Quarter, including 0.8 million square feet of renewals.
• Leasing Spreads: Third Quarter blended leasing spread of 20.8% included a new leasing spread of 44.1% and a renewal leasing spread of 15.2%. RioCan continued to capitalize on mark-to-market opportunities, achieving an average blended leasing spread of 27.6% on new and renewed leases done at current market rates. 52% of renewals were at current market rates.
• Average Net Rent Per Square Foot: Average net rent per square foot for new leases for the nine months ended September 30, 2025 was $29.58, a 28.9% premium compared to average net rent per occupied square foot of $22.94 at quarter end.
• Same Property NOI: Commercial Same Property NOI¹ growth was 4.6% in the Third Quarter, reflects the benefits of 2024 and 2025 leasing activity.
• Adjusted G&A Expense as a percentage of rental revenue¹: Improved to 3.7% on a year-to-date basis, down from 4.1% in the comparable prior year period.
• Capital Recycling: As of November 6, 2025, closed and conditional dispositions totalled $349.9 million, aligning with IFRS values. For the nine months ended September 30, 2025, $310.1 million of asset dispositions were completed including the sale of our 50% interests in five RioCan Living properties.
• During the quarter, residential condominium closings at 11YV continued, resulting in full repayment of the construction loan and a $10.8 million reduction in RioCan’s debt compared to Q2 2025. This repayment decreased the associated outstanding guarantees by $75.9 million and $322.9 million when compared to Q2 2025 and Q4 2024, respectively. Year-to date $127.7 million of construction loans have been repaid. A total of 1,056 units (at 100% ownership), across U.C.Tower 2, U.C.Tower 3, 11YV, Queen & Ashbridge and Verge have been closed on a year-to-date basis.
• Year-to-date, $476.2 million of capital was repatriated through asset dispositions and final condominium closings, advancing toward the $1.3 billion to $1.4 billion target for 2025 – 2026.
• Development Completions: During the three and nine months ended September 30, 2025, development projects totaling approximately 202,000 and 247,000 square feet, respectively, were completed and transitioned into income producing properties. This includes 165,000 and 186,000 square feet of mixed-use projects comprised of residential rental and retail units and 37,000 and 61,000 square feet of commercial retail projects, respectively.
• Balance Sheet and Liquidity: As of September 30, 2025, the Adjusted Spot Debt to Adjusted EBITDA ratio improved to 8.80x from 9.12x at the end of 2024, within RioCan’s target range of 8.0x – 9.0x. The Trust has $1.1 billion of Liquidity to meet its financial obligations, including $1.0 billion from its revolving unsecured operating line of credit.
• The Trust’s unencumbered asset pool increased to $9.3 billion at the end of the Third Quarter from $8.2 billion at the end of 2024.
• As of September 30, 2025, the Ratio of Unsecured Debt to Total Contractual Debt increased to 64% from 56%, compared to the end of 2024 and on a proportionate share basis.
• Subsequent to quarter end, the Trust issued $200.0 million Series AP Senior Unsecured Debentures with an all-in coupon rate of 4.417%, maturing October 1, 2032. The net proceeds were applied against the drawn balances on our operating line of credit, improving the Trust’s Liquidity and reducing the amount of floating rate debt outstanding.
• Fair value adjustments: Recognized $242.8 million of Net Valuation Losses in the Third Quarter comprised of a $148.2 million net fair value loss on investment properties and $94.6 million Total RC-HBC LP Valuation Losses. RioCan has significantly advanced matters related to the former HBC locations with asset plans defined for the 12 of 13 of the affected assets. Management has written off RioCan’s investment in the RC-HBC LP and has fully provided for the Trust’s economic exposures connected to its guarantees and loans receivable. RioCan is actively pursuing recovery of these provisions. Refer to the Asset Profile – Property Valuations and Asset Profile – Joint Arrangements sections of the Trust’s MD&A for the three and nine months ended September 30, 2025 for further details.
• ESG Leadership: Maintained Regional Sector Leader status in the Americas under the Retail sector in the 2025 GRESB Real Estate Assessment. Secured and retained the #1 ranking among North American retail peers in the Standing Investment Benchmark.

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 Friday, November 7, 2025 at 10:00 a.m. (ET). Participants will be required to identify themselves and the organization on whose behalf they are participating.

To access the conference call, click on the following link to register at least 10 minutes prior to the scheduled start of the call: Pre-registration link. Participants who pre-register at any time prior to the call will receive an email with dial-in credentials including a login passcode and PIN to gain immediate access to the live call. Those that are unable to pre-register may dial-in for operator assistance by calling 1-833-950-0062 and entering the access code: 465290.

For those unable to participate in the live mode, a replay will be available at 1-866-813-9403 with access code: 279846.

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 and mixed-use properties in densely populated communities. As at September 30, 2025, our portfolio is comprised of 173 properties with an aggregate net leasable area of approximately 32 million square feet (at RioCan’s interest). To learn more about us, please visit www.riocan.com.

Basis of Presentation and Non-GAAP Measures

All figures included in this News Release are expressed in Canadian dollars unless otherwise noted. RioCan’s unaudited interim condensed consolidated financial statements (“Condensed Consolidated Financial Statements”) are prepared in accordance with International Financial Reporting Standards (IFRS). Financial information included within this News Release does not contain all disclosures required by IFRS, and accordingly should be read in conjunction with the Trust’s Condensed Consolidated Financial Statements and MD&A for the three and nine months ended September 30, 2025, which are available on RioCan’s website at www.riocan.com and on SEDAR+ at www.sedarplus.com.

Consistent with RioCan’s management framework, management uses certain financial measures to assess RioCan’s financial performance, which are not in accordance with generally accepted accounting principles (GAAP) under IFRS. Funds From Operations (“FFO”), FFO per unit – diluted, Net Operating Income (“NOI”), Same Property NOI, Commercial Same Property NOI (“Commercial SPNOI”), FFO Payout Ratio, Net Valuation Losses, Total RC-HBC LP Valuation Losses, Adjusted G&A Expense as a percentage of rental revenue, Total Capital Repatriation, Ratio of Unsecured Debt to Total Contractual Debt, Liquidity, Adjusted Spot Debt to Adjusted EBITDA, RioCan’s Proportionate Share, Unencumbered Assets as well as other measures that may be discussed elsewhere in this News Release, do not have a standardized definition prescribed by IFRS and are, therefore, unlikely to be comparable to similar measures presented by other reporting issuers. RioCan supplements its IFRS measures with these Non-GAAP measures to aid in assessing the Trust’s underlying performance and reports these additional measures so that investors may do the same. Non-GAAP measures should not be considered as alternatives to net income or comparable metrics determined in accordance with IFRS as indicators of RioCan’s performance, liquidity, cash flow, and profitability. For full definitions of these measures, please refer to the “Non-GAAP Measures” section in RioCan’s MD&A for the three and nine months ended September 30, 2025.

The reconciliations for non-GAAP measures included in this News Release are outlined as follows:

RioCan’s Proportionate Share

The following table reconciles the consolidated balance sheets from IFRS to RioCan’s proportionate share basis as at September 30, 2025 and December 31, 2024:

The following tables reconcile the consolidated statements of income (loss) from IFRS to RioCan’s proportionate share basis for the three and nine months ended September 30, 2025 and 2024:

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, 2025 and 2024:

FFO

The following table reconciles net income (loss) attributable to Unitholders to FFO for the three and nine months ended September 30, 2025 and 2024:

Contacts

RioCan Real Estate Investment Trust

Investor Relations Inquiries

Email: [email protected]

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