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REI.UN - RioCan Real Estate Investment Trust News Story

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RioCan's Second Quarter Results Demonstrate Strength and Recovery Momentum

Thu 5th August, 2021 12:00pm
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* Robust leasing activity with 1.4 million sq. ft. of new and renewed leases
with new leasing spread of 9.2% and blended leasing spread of 5.4%;
* Continued improvements in committed occupancy to 96.1% up 30 bps from Q1
* Net income of $145.3 million, an improvement over the same period last
* FFO/unit improved to $0.40 from $0.35 for Q2 2020 and from $0.36 for Q1
* Capital recycling program accelerates to $841.6 million in closed, firm and
conditional deals for 2021.
TORONTO, Aug. 05, 2021 (GLOBE NEWSWIRE) -- RioCan Real Estate Investment Trust
(“RioCan" or the "Trust”) announced today its financial results for the
three and six months ended June 30, 2021 (the "Second Quarter").

“RioCan's strong performance in the Second Quarter further exhibits the
strength of our portfolio and team. We have weathered the pandemic and are
poised to thrive as the economy reopens. We delivered strong operational and
financial performance with growth in FFO/unit for the quarter despite the
impact of the pandemic's third wave," said Jonathan Gitlin, President and CEO
of RioCan. "Ongoing momentum in leasing activity drove positive trends in
occupancy and further strengthened the quality of our income as tenants
continue to be attracted to our exceptionally well-located properties. We
remain focused on investing in the strength of our stable foundation,
surfacing the value inherent in our portfolio and capitalizing on the numerous
opportunities available to us to augment our income as we accelerate our
growth trajectory and drive long-term value."

                                                                                                                                                          Three months ended June 30                    Six months ended June 30                      
 (in millions except percentages, square feet and per unit values)                                                                                               2021                   2020                   2021                   2020            
 Financial Highlights                                                                                                                                                                                                                                 
 Net income (loss)                                                                                                                                        $      145.3           $      (350.8)         $      252.0           $      (247.9)         
 Weighted average Units outstanding - diluted (in thousands)                                                                                                     317,882                317,721                317,771                317,717         
 FFO (ii)                                                                                                                                                 $      127.5           $      109.9           $      233.6           $      254.5           
 FFO (excluding debenture prepayment costs) (ii)                                                                                                          $      127.5           $      109.9           $      240.6           $      254.5           
 FFO per unit - diluted (ii)                                                                                                                              $      0.40            $      0.35            $      0.73            $      0.80            
 FFO per unit - diluted (excluding debenture prepayment costs) (ii)                                                                                       $      0.40            $      0.35            $      0.76            $      0.80            
 Operation Highlights (vi)                                                                                                                                       7.8 %                  (10.8)%                1.0 %                  (4.3)%          
 Same property NOI growth (decline) - overall portfolio (ii)                                                                                              
 Six major markets - % of total annualized revenue (iii)                                                                                                         91.1 %                 90.1%                  91.1 %                 90.1%           
 Greater Toronto Area - % of total annualized revenue (iii)                                                                                                      50.9 %                 52.1%                  50.9 %                 52.1%           
 Occupancy - committed six major markets (iii)                                                                                                                   96.3 %                 96.8%                  96.3 %                 96.8%           
 Occupancy - committed total portfolio (iii)                                                                                                                     96.1 %                 96.4%                  96.1 %                 96.4%           
 Blended leasing spread                                                                                                                                          5.4 %                  5.8%                   6.5 %                  5.7%            
 New leasing spread                                                                                                                                              9.2 %                  19.8%                  11.8 %                 9.2%            
 Renewal leasing spread                                                                                                                                          4.2 %                  4.6%                   4.5 %                  5.0%            
 Development Highlights                                                                                                                                                                                                                               
 Development completions - sq. ft. in thousands                                                                                                                  30.0                   4.0                    60.0                   137.0           
 Development expenditures (iv)                                                                                                                            $      110.1           $      114.6           $      197.6           $      217.5           
 Properties under development and residential inventory as a percentage of consolidated gross book value of assets (maximum permitted: 15%) (iii) (iv)           10.9 %                 10.7%                  10.9 %                 10.7%           
 As at                                                                                                                                                                                                  June 30,               December 31,           
                                                                                                                                                                                                        2021                   2021                   
 Balance Sheet Strength Highlights                                                                                                                                                                                                                    
 Debt to Adjusted EBITDA (ii) (v)                                                                                                                                                                       9.87x                  9.47x                  
 Ratio of total debt to total assets (ii) (iii) (v)                                                                                                                                                            44.7%                  45.0%           
 Unencumbered assets (ii) (iii) (v)                                                                                                                                                                     $      8,480           $      8,727           
 Unencumbered assets to unsecured debt (ii) (iii) (v)                                                                                                                                                          224%                   215%            


 ((i)    )    (Excluding debenture prepayment costs.)                                                                                                                                                                                                                  
 ((ii)   )    (A Non-GAAP measurement. For definitions and the basis of presentation of RioCan's Non-GAAP measures, refer to the Non-GAAP Measures section in RioCan's Management's Discussion and Analysis (MD&A) for the three and six months ended June 30, 2021.)  
 ((iii)  )    (Information presented as at respective periods then ended.)                                                                                                                                                                                             
 ((iv) )      (Includes costs incurred for various properties under development and for residential inventory in respective reporting periods.)                                                                                                                        
 ((v)  )      (At RioCan's proportionate share.)                                                                                                                                                                                                                       
 ((vi))       (Includes commercial portfolio only except for total annualized revenue statistics.)                                                                                                                                                                     

FFO per Unit and Net Income
* FFO per unit for the Second Quarter was $0.40, an increase of $0.05 per unit
or 14.3% when compared to the same period last year, mainly as a result of a
significantly lower provision for rent abatements and bad debts
("pandemic-related provision") of $5.0 million versus $19.1 million in Q2
2020. Higher residential inventory gains and interest cost savings, partially
offset by lower other income from a fee received in 2020 for terminating a
forward purchase agreement, also contributed to the year-over-year increase.
* FFO per unit (excluding debenture prepayment costs) was $0.76 for the six
months ended June 30, 2021, a decrease of $0.04 per unit over the prior year
comparative period. Despite the comparative period including a pre-pandemic
quarter, the pandemic-related provision fell by $7.7 million. This lower
pandemic-related provision together with higher residential inventory gains
and lower interest costs were offset by lower realized gains on the sale of
marketable securities, higher general and administrative costs from
accelerated expensing of certain unit-based compensation and a prior year
mark-to-market adjustment for cash-settled unit-based trustee costs, and prior
year other income from the forward purchase termination fee described above
and the investment in e2.
* The FFO payout ratio (excluding debenture prepayment costs), calculated on a
twelve-month rolling basis, was 79.8% which included only a partial benefit
from the one-third reduction in distributions effective January 2021. Based on
distributions declared during the quarter and quarterly FFO, instead of on a
rolling twelve-month basis, the FFO payout ratio (excluding debenture
prepayment costs) was 59.8%.
* The Trust reported net income of $145.3 million and $252.0 million for the
three and six months ended June 30, 2021, both significantly higher than the
comparative prior year periods primarily due to a $451.7 million fair value
loss on investment properties recognized in Q2 2020. The Trust estimated that
no major pandemic-related adjustments were warranted for the IFRS value of its
investment properties in the Second Quarter.
Same Property NOI - Commercial
* Same property NOI increased by 7.8% for the Second Quarter and by 1.0% on a
year-to-date basis for the overall commercial portfolio when compared to the
same respective periods in the prior year mainly due to lower pandemic-related
provisions in 2021.
Operations - Commercial
* Leasing velocity was robust and resulted in the completion of 1.4 million
and 2.5 million square feet (both at 100% ownership interest) of new and
renewed leases during the quarter and year-to-date, respectively. The Trust
achieved new leasing spreads of 9.2% for the overall portfolio and 9.7% for
major market properties in the Second Quarter. The majority of these new
leases were completed with tenants that are building and/or establishing their
footprint as the economy rebounds and included personal services, grocery, and
restaurants as well as specialty and value retailers.
* Retention ratio of 90.9% was strong and the renewal leasing spread was 4.2%
for the overall portfolio for the Second Quarter. On a blended basis, the
Trust achieved a leasing spread of 5.4% for the overall portfolio and 5.5% for
major market properties.
* Despite enhanced restrictive measures due to the pandemic, committed
occupancy at RioCan's commercial properties increased by 30 basis points to
96.1% and in-place occupancy was stable at 95.1% when compared to the prior
quarter. Retail committed occupancy increased by 30 basis points to 96.4% and
retail in-place occupancy increased by 10 basis points to 95.5%, while office
committed occupancy decreased by 20 basis points to 91.2% when compared to Q1
* RioCan continues to evolve its property and tenant mix as it anticipates,
and adapts to, the ever changing retail landscape. As of the quarter end,
RioCan generated 91.2% of its annualized rental revenue from Grocery Anchored,
Mixed-Use / Urban and Open Air Centres. Enclosed Centres were 8.8% of
annualized rental revenue, a decrease of 40 basis points from Q1 2021 and the
same period last year. RioCan has also decreased its apparel exposure by 40
basis points since the beginning of 2021.
* The percentage of annualized rental revenue from the six major markets
increased by 70 basis points to 91.1% when compared to Q1 2021 primarily due
to strategic secondary market asset dispositions.
Operations - Residential
* RioCan Living™, the Trust's growing purpose-built residential portfolio
currently includes 1,218 residential rental units (at 100%) across four
buildings - eCentral™ and Pivot™ in Toronto, Frontier™ in Ottawa and
Brio™ in Calgary. RioCan recently commenced pre-leasing at Litho™, the
210-unit project in Toronto, and Latitude™, the 209-unit project in Ottawa,
and expects robust lease-up velocity at each site.
* In-person tours by prospective tenants have resumed and building amenities
have re-opened as public health measures eased. When compared to the previous
quarter report, notable leasing progress was made at Brio in Calgary, which
was 93.8% leased and at Pivot in Toronto, which was 44.9% leased since its
launch in December 2020, as of August 4, 2021.
* As of August 4, 2021, Frontier was 97.4% leased and eCentral was 88.4%
leased. Well-located, amenity-rich accommodations with easy access to transit
are in growing demand with an anticipated return to working in the office,
resumption in immigration and the prospect of in-class post-secondary
learning. RioCan Living's well-located and professionally managed residential
rental assets will benefit from these trends post the pandemic and will serve
as a driver of income diversification and net asset value growth for the
Trust. The rent increase freeze in Ontario expires at the end of 2021,
providing further opportunity for income growth.
* Residential rent collection continues to be solid at 98.9% of the Second
Quarter's billed residential rents as of August 4, 2021.
Capital Recycling
* The Trust's capital recycling program constitutes an extremely efficient and
effective means to raise capital. This capital is used to fund value creation
initiatives such as developments and to strengthen the Trust's balance sheet.
As of August 4, 2021, a total of $420.8 million of dispositions were closed at
a weighted average capitalization rate of 4.26% based on in-place NOI for
income producing properties and no in-place NOI for development properties.
The Trust further entered into firm or conditional agreements to dispose 100%
or partial interests in a number of properties for total sales proceeds of
$420.8 million.
* As of August 4, 2021, closed, firm and conditional deals since the beginning
of 2021 total $841.6 million at a weighted average capitalization rate of
3.76% based on in-place NOI determined on the same basis as described above.
* Certain of these transactions involve the sale of partial interests in
development properties or future density, as well as closing of prearranged
air rights sales and allow the Trust to realize excess density value
attributed to potential redevelopment for highest and best use and recycle
capital to fund its mixed-use development program. The volume of deals
illustrates the robust transaction activity in the retail property market and
the strong appeal of our value rich assets to a variety of buyers. The quality
of RioCan's assets is evident in the pricing achieved and in the
well-respected and established partners attracted despite uncertainty during
the challenging pandemic circumstances.
Update on Rent Collection
* RioCan is focused on serving its tenants through the important re-opening
phase and associated pent-up consumer demand. The majority of RioCan's
commercial tenants are necessity-based and were operating during lockdowns.
The gradual re-openings that accelerated starting mid-July 2021 have now also
restored consumers' access to long-awaited discretionary and experiential
retailers such as eat-in restaurants, gyms and entertainment venues. As of
August 4, 2021, essentially all of RioCan's tenants were open.
* The resiliency of the Trust's tenant base was solidly demonstrated in the
Second Quarter. Despite lockdowns and capacity restrictions that were in
effect for the majority of Second Quarter, as of August 4, 2021, the Trust
collected 94.9% of its Second Quarter billed gross rents in cash.
* Rent collection trends have continued to improve with 94.7% of the billed
July 2021 gross rents collected in cash as of August 4, 2021. For the month
subsequent to each quarter-end, and as of the reporting date of the
respective quarter, this collection rate is the highest achieved since the
start of the pandemic.
* The Canadian government continues to provide support for businesses through
the Canada Emergency Rent Subsidy (CERS) program and other programs. RioCan is
confident that its tenants who benefit from CERS will transition well into a
post-stimulus business environment. CERS is provided directly to tenants
without a landlord rent abatement requirement and has been extended from June
5, 2021 to October 23, 2021 with amended qualification requirements and
declining maximum subsidy rates, which vary depending on the extent of revenue
reduction. The gradual reduction in the CERS subsidy is expected to intersect
with increased consumer spending.
* The Trust's collections of billed gross rents as of August 4, 2021 for the
latest four quarters are summarized below. It is important to note that cash
collections improve over time with continued collection efforts and due to the
latent effect of CERS as tenants receive funding in arrears for prior months.
 Q2 2021                                                      Q1 2021      Q4 2020      Q3 2020      
 Total cash collected (i)                         94.9   %    95.1   %     95.7   %     94.5   %     
 Deferred rents with definitive payment schedule  0.1    %    0.7    %     0.5    %     0.2    %     
 Provision for rent abatements and bad debts      1.8    %    2.4    %     3.4    %     5.3    %     
 Remaining rent to be collected                   3.2    %    1.8    %     0.4    %     —      %     
 Total                                            100.0  %    100.0  %     100.0  %     100.0  %     

 ((i)   )    (Includes $2.9 million of security deposits applied in Q3 2020 representing approximately 1.1% of billed gross rents for that quarter. Total cash collected includes CECRA funding received in Q3 2020. The CECRA program ended in September 2020 and was replaced by the CERS program.)  
* The vast majority of tenants with deferred rents have been paying based on
definitive payment schedules with 91.5% of deferred rents billed to date
collected in cash as of August 4, 2021. RioCan is confident in the
collectability of its deferred rents and remaining rents to be collected post
its pandemic-related provision. For the three and six months ended June 30,
2021, the Trust accrued a pandemic-related provision for $5.0 million and
$11.4 million, respectively.
* Based on annualized net rent as of June 30, 2021, approximately 79.1% of the
Trust's commercial tenants are classified as "strong" or "stable" and 98.1% of
total gross rents billed to these tenants in the Second Quarter have been
collected in cash. Cash rent collection from the remaining "potentially
vulnerable" tenants was 82.5% as they are more impacted by the pandemic.
 Tenant Composition            % of Annualized Net Rent      Q2 2021 Cash Rent Collection %      
 Strong (i)                    61.3           %              99.5              %                 
 Stable (ii)                   17.8           %              93.8              %                 
 Subtotal                      79.1           %              98.1              %                 
 Potentially Vulnerable (iii)  20.9           %              82.5              %                 
 Total                         100.0          %              94.9              %                 

 ((i)   )     (Strong is represented by, or includes, national office tenants and essential / necessity / value / and specialty retail tenants that have strong rent paying ability in the current pandemic impacted environment and also includes residential tenants.)                                                                                                                    
 ((ii)   )    (Stable is represented by, or includes, tenants with reasonably strong uses and good rent paying ability or tenants with medium uses in the current environment but strong rent paying ability.)                                                                                                                                                                              
 ((iii) )     (Potentially Vulnerable, particularly under COVID-19, includes tenants with uses that are significantly impacted by the pandemic (such as movie theatres, gyms, sit-down restaurants) as well as uses that were of concern prior to the pandemic (such as apparel) or tenants whom the Trust has concerns over tenant rent paying ability under the COVID-19 circumstances.)  

Development Highlights
* RioCan announced a new strategic approach for the development of its
mixed-use residential condominium projects whereby the Trust plans to sell a
majority of its interests in mixed-use residential condominium projects while
retaining project oversight as general partner and sole development manager.
This partnership structure enables RioCan to leverage its robust pipeline of
prime locations and established development platform to efficiently raise
capital. It also allows the Trust to mitigate development risk, earn
management fees along with a promote for its expertise in managing the entire
development process from zoning through to unit sales and participate in
condominium sales profits to augment its income streams.
* Verge™, a mixed-use residential condominium project located along The
Queensway in Toronto, marks the first such independent condominium launch
under the RioCan Living banner, adding to the Trust's portfolio of condominium
and housing ownership developments that generate inventory profits. For this
development, RioCan entered into a partnership with four investors, resulting
in sales proceeds of approximately $30.4 million including reimbursement of
its share of development costs incurred to date and an inventory gain of $2.0
million. The condominium pre-sales launch in July 2021 generated a tremendous
amount of interest. Pre-sales are scheduled to commence in August 2021 with a
construction start expected in the second half of 2022.
* RioCan Living purpose built residential rental condominium and townhouse
projects, remain a cornerstone of RioCan's development program. Residential
development represents 82.7% or 33.6 million square feet of the Trust's
current estimated development pipeline of 40.6 million square feet.
* The 36-storey office tower at The Well™ is fast becoming a notable
feature of the Toronto skyline. Construction remains on track for initial
tenant possession in 2021. Approximately 86% of the office space and
approximately one third of the retail space has been leased. Interest in the
remaining available retail space has regained momentum with the recent
resumption of tours and as travel restrictions are eased, prospective tenants
from abroad will be able to experience the dynamic nature of the site
in-person. Steady construction progress on the 592-unit residential rental
building at FourFifty The Well™ continues and the air rights transaction
for this building was completed on April 7, 2021. As a result, Woodbourne
Canada Partners and RioCan each own 50% of the development property. Air
rights sales for four of the six residential buildings are now complete with
conveyance of the air rights of the two remaining buildings on track to be
completed in 2021.
* The majority of RioCan's development projects continued to progress during
the Second Quarter. As of June 30, 2021, properties under development and
residential inventory accounted for 10.9% of the Trust's consolidated gross
book value of assets, well under the 15% limit permitted under its unsecured
operating line of credit and other credit facilities agreements. The Trust's
long-term goal is to keep this ratio at 10% or lower. The Trust's development
spend target for 2021 is estimated to be in the $425 million to $475 million
range. Given the completion of a significant portion of The Well in 2021,
staggered development starts, and sharing of development costs and risks with
existing and future strategic partners, the Trust expects future annual
development spend to be lower than that of 2021.
Ample Liquidity and Balance Sheet Strength
* RioCan continues to maintain ample liquidity. As of June 30, 2021, the Trust
had $1.2 billion of liquidity in the form of cash and cash equivalents and
undrawn lines of credit on a proportionate share basis. RioCan had a large
unencumbered asset pool of $8.5 billion as of the quarter end on a
proportionate share basis, which generated 57.2% of RioCan's annualized NOI
and provided 2.24x coverage over its unsecured debt.
* Of the Trust's $380.0 million mortgage maturities in 2021, only $41.9
million have yet to be refinanced or do not have refinancing commitments in
place as of August 4, 2021. These mortgages are expected to be refinanced in
due course.
* Debt to Adjusted EBITDA was 9.87x and debt to total assets was 44.7%, both
on a proportionate share basis, as of June 30, 2021, improved when compared to
Q1 2021. The improvement in Debt to Adjusted EBITDA from 10.02x in Q1 2021 was
primarily from lower pandemic-related provisions. The improvement in debt to
total assets from 45.3% in Q1 2021 was mainly from the Trust's operations and
* The Trust's goal remains to lower the two above metrics to its long-term
target ranges of below 8.0x and 38%-42%, respectively. Disposition sale
proceeds and continuous operations improvements are expected to reduce these
ratios in the near to medium term.
* On April 23, 2021, the Trust successfully extended the maturity of its
revolving unsecured operating line of credit by two years to May 31, 2026. All
other material terms and conditions remained the same.
* RioCan redeemed, in full, its $300.0 million, 2.194% Series Z unsecured
debentures upon maturity on April, 9, 2021.
Environmental, Social and Governance (ESG) Progress
* The Trust gained recognition for ongoing achievements and continued to make
progress towards its commitment to leading the way in ESG best practices with
a number of ongoing initiatives.
* The Trust progressed its Diversity, Equity and Inclusion (DEI) focus by
publishing its inaugural DEI policy and launching a DEI scholarship program
with an opportunity for a paid RioCan internship for students who identify
with historically disadvantaged groups. In addition, the Trust celebrated
Pride Month with series of internal initiatives to drive awareness and in
support for the LGBTQ2+ community.
* RioCan achieved an ESG rating upgrade by Morgan Stanley Capital
International (MSCI) for the third consecutive year, driven by an improvement
in employee management programs and green building certifications.
* RioCan was recognized as one of the top ranked real estate firms on the Best
50 Corporate Citizens in Canada by Corporate Knights for the second
consecutive year.
* The Trust earned the 2021 Green Lease Leader (Silver Level) designation.
Presented by the Institute for Market Transformation (IMT) and the U.S.
Department of Energy’s Better Building Alliance, the Green Lease Leaders
silver designation is applied to organizations that exhibit a strong
commitment to high performance and sustainability in buildings, and best
practice leasing.
* The Trust became a member of Canada Green Building Council which provides
access to sustainability reports and educational materials. This membership
will help RioCan further develop the knowledge and expertise required to seize
new opportunities in the green building sector.
Chief Financial Officer Appointment
* On July 22, 2021 RioCan announced the appointment of Mr. Dennis Blasutti as
Chief Financial Officer of the Trust effective September 7, 2021. Mr. Blasutti
joins RioCan from Brookfield Asset Management where he most recently served as
Managing Director, Infrastructure, and Chief Financial Officer for Enwave
Energy, Brookfield’s district energy business. Over the course of his
career, Mr. Blasutti has led various finance functions, at both the corporate
and operations levels, with experience including corporate finance and
treasury; public company financial reporting; investor relations; financial
and strategic planning; valuations; supply chain management; and information
technology. Mr. Blasutti's breadth of financial knowledge and relevant
experience as well as his background in sustainable technologies will serve
RioCan well as the Trust continues to drive growth and long-term value
Conference Call and Webcast

Interested parties are invited to participate in a conference call with
management on Thursday, August 5, 2021 at 10:00 a.m. (ET). Participants will
be required to identify themselves and the organization on whose behalf they
are participating.

In order to participate, please dial 647-427-3230 or 1-877-486-4304. For those
unable to participate in the live mode, a replay will be available at
1-855-859-2056, passcode 5959605#.

For a copy of the slides to be used for the conference call or, to access the
simultaneous webcast, visit RioCan’s website at and
click on the link for the webcast.

About RioCan

RioCan is one of Canada’s largest real estate investment trusts. RioCan
owns, manages and develops retail-focused, increasingly mixed-use properties
located in prime, high-density transit-oriented areas where Canadians want to
shop, live and work. As at June 30, 2021, our portfolio is comprised of 214
properties with an aggregate net leasable area of approximately 37.2 million
square feet (at RioCan's interest) including office, residential rental and 15
development properties. To learn more about us, please visit

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, 2021, which is available on
RioCan's website at and on SEDAR at

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”) and FFO (excluding debenture prepayment
costs), Same Property NOI, Debt to Adjusted EBITDA, Ratio of Total Debt to
Total Assets, RioCan's Proportionate Share and Unencumbered Assets to
Unsecured Debt, 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 earnings or
comparable metrics determined in accordance with IFRS as indicators of
RioCan’s performance, liquidity, cash flow, and profitability. For full
definitions of these measures, please refer to the "Non-GAAP Measures”
section in RioCan’s MD&A for the three and six months ended June 30, 2021.

Forward-Looking Information

This News Release contains forward-looking information within the meaning of
applicable Canadian securities laws. This information reflects RioCan’s
objectives, our strategies to achieve those objectives, as well as statements
with respect to management’s beliefs, estimates and intentions concerning
anticipated future events, results, circumstances, performance or expectations
that are not historical facts. Forward-looking information generally can be
identified by the use of forward-looking terminology such as “outlook”,
“objective”, “may”, “will”, “would”, “expect”,
“intend”, “estimate”, “anticipate”, “believe”, “should”,
“plan”, “continue”, or similar expressions suggesting future outcomes
or events. Such forward-looking information reflects management’s current
beliefs and is based on information currently available to management. All
forward-looking information in this News Release is qualified by these
cautionary statements. Forward-looking information is not a guarantee of
future events or performance and, by its nature, is based on RioCan’s
current estimates and assumptions, which are subject to numerous risks and
uncertainties, including those described in the “Risks and Uncertainties”
section in RioCan's MD&A for three and six months ended June 30, 2021 and in
our most recent Annual Information Form, which could cause actual events or
results to differ materially from the forward-looking information contained in
this News Release. General economic conditions, including interest rate
fluctuations, may also have an effect on RioCan’s results of operations.
Material factors or assumptions that were applied in drawing a conclusion or
making an estimate set out in the forward-looking information may include, but
are not limited to: a gradual recovery and growth of the retail environment
and the general economy over 2021; relatively historically low interest costs;
a continuing trend toward land use intensification at reasonable costs and
development yields, including residential development in urban markets; access
to equity and debt capital markets to fund, at acceptable costs, future
capital requirements and to enable our refinancing of debts as they mature;
the availability of investment opportunities for growth in Canada; the timing
and ability for RioCan to sell certain properties; the valuations to be
realized on property sales relative to current IFRS values; and the Trust's
ability to utilize the capital gain refund mechanism. 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.

Given the current level of uncertainty arising from the COVID-19 pandemic,
there can be no assurance regarding the impact of COVID-19 on the business,
operations, and financial performance of RioCan and its tenants, as well as on
consumer behaviors and the economy in general. General risks and uncertainties
related to the COVID-19 pandemic also include, but are not limited to, the
length, spread and severity of the pandemic; the timing of the roll out and
efficacy of the vaccines, the nature and length of the restrictive measures
implemented or to be implemented, including any loosening of the restrictive
measures, by various levels of government in Canada; RioCan's tenants' ability
to pay rents as required under their leases; the availability of various
support programs that are or may be offered by the various levels of
government in Canada; the introduction or extension of temporary or permanent
rent control or other forms of regulation or legislation that may limit the
Trust's ability or the extent to which it can raise rents based on market
conditions upon lease renewals or restrict existing landlord rights or a
landlord's ability to reinforce such rights; domestic and global supply
chains; timelines and costs related to the Trust’s development projects; the
pace of property lease-up and rents and yields achieved upon development
completion; potential changes in leasing activities, market rents and property
valuations; the capitalization rates that arm's length buyers and sellers are
willing to transact on properties; the availability and extent of rent
deferrals offered or to be offered by the Trust; domestic and global credit
and capital markets, and the Trust's ability to access capital on favourable
terms or at all and its ability to maintain its credit ratings; the total
return and dividend yield of RioCan's Units; and the health and safety of our
employees, tenants and people in the communities that our properties serve.

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.

Contact Information

RioCan Real Estate Investment Trust
Franca Smith
Vice President, Finance and Interim Chief Financial Officer
416-866-3033 |


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