Return to flip book view
FORWARD-LOOKING INFORMATIONAll information other than statements of current and historical fact included in this presentation is forward-looking information within the meaning of applicable securities laws. Forward-looking information cangenerally be identified by the use of forward-looking terminology such as “target”, “outlook”, “objective”, “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plan”, “continue”,“ambition”, or similar expressions or the negative thereof suggesting future outcomes or events. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement.Forward-looking information in this presentation includes, but is not limited to, statements regarding the growth and financial targets that RioCan aspires to achieve, RioCan's emissions targets, RioCan’s businessgenerally, future financial position and business strategy, and its plans and objectives, as well as our strategies to achieve those objectives. Material factors or assumptions that were applied in drawing aconclusion or making an estimate set out in the forward-looking information may include, but are not limited to: growth of the retail environment; a changing interest rate environment; a continuing trend towardland use intensification at reasonable costs and development yields including residential development in urban markets; the Trust’s ability to redevelop, sell or enter into partnerships with respect to the futureincremental density it has identified in its portfolio; continued access to equity and debt capital markets to meet the Trust’s current and future financing needs; and the availability of investment opportunities forgrowth in Canada. Certain material factors, estimates or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in this presentation and actual results could differmaterially from such conclusions, forecasts or projections.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 the environment in which RioCan will operate in the future and its ability to achieve its goals. Although management believes that the expectations represented in such forward-looking information arereasonable, there can be no assurance that such expectations will prove to be correct. The future outcomes that relate to the forward-looking information may be influenced by many factors that could causeactual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking information, including the risks referred to under theheading “Risks and Uncertainties” in RioCan’s MD&A for the three and six months ended June 30, 2024 and in its most recent Annual Information Form, available at www.sedarplus.com and at www.riocan.com.RioCan cautions that such list of factors is not exhaustive and when relying on forward-looking information to make decisions with respect to RioCan, readers should carefully consider these factors, as well asother uncertainties and potential events, and the inherent uncertainty of forward-looking information.There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readersshould not place undue reliance on forward-looking information. The forward-looking information contained in this presentation is made as of the date hereof. Except as required by applicable securities laws,RioCan undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.CONTACTSINVESTOR RELATIONSRioCan Real Estate Investment Trust2300 Yonge Street, Suite 2200P.O. Box 2386, Toronto, ON M4P 1E4Tel. 1-800-465-2733Email. ir@riocan.comWebsite. www.riocan.comTRANSFER AGENT & REGISTRARTSX Trust Company100 Adelaide Street West, Suite 301Toronto, ON M5H 4H1Tel. 1-416-682-3860 or 1-800-387-0825Email. shareholderinquiries@tmx.comWebsite. www.tsxtrust.comAchieved ESG rating upgrade from A to AA by Morgan Stanley Capital International (MSCI) (1)Ranked 1st among Canadian peers in the GRESB Real Estate and Disclosure AssessmentsEarned the 2024 Green Lease Leader (Platinum Level) recognition by the Institute for Market Transformation (IMT) and the U.S. Department of Energy's Better Building Alliance Recognized as one of Greater Toronto’s Top 100 Employers by Mediacorp Canada Inc. seven years running1)The use by RioCan of any MSCI ESG research LLC or its affiliates ("MSCI") data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of RioCan by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided 'as-is' and without warranty. MSCI names and logos are trademarks or service marks of MSCI.
PROFILERioCan owns, manages and develops retail and mixed-useproperties in Canada's most densely populated markets. Ourproperties are anchored by necessity-based retail tenants andnationally recognized brands, including Loblaws, Metro,Winners and Dollarama, that cater to the needs of Canada'sgrowing population and urban communities. With a long trackrecord of providing reliable monthly distributions, RioCanmaintains a steadfast commitment to delivering totalUnitholder return through profitable, sustainable growth.As of June 30, 2024, our portfolio is comprised of 187properties(1)with an aggregate net leasable area ofapproximately 33 million square feet.MONTREAL19 assets1.9M sq.ft. (2)3.3%(3)OTTAWA35 assets4.8M sq.ft. (2)12.8%(3)GREATERTORONTO AREA85 assets16.8M sq.ft. (2)57.6%(3)EDMONTON9 assets1.7M sq.ft. (2)5.0%(3)CALGARY16 assets3.6M sq.ft. (2)11.9%(3)VANCOUVER4 assets1.1M sq.ft. (2)4.7%(3)~95% of total fair value from Canada’s six major markets+16%since 2017~273,000Population (4)+77%since 2017~$148,000avg. household income (4)+45%since 2017Investor Fact SheetIncludes eight properties under developmentIncome producing properties at RioCan’s interestPercentage of total fair value of income producing properties at RioCan's interest Within 5km radius. Data is updated once a year with Q2 2024 disclosure reflecting new statistics that becomes available each spring. Source: 2024 - Trends, 2024 Environics Analytics1) 2) 3) 4) INVESTMENT THESISWHY RIOCAN, OUR DIFFERENTIATORS• Ideal mix of quality - driving resilience and providing opportunities for long-term growth• Irreplaceable portfolio - thoughtfully assembled over years offering a strong retail core, anchored by resilient, necessity-based tenants, and located in Canada's most in-demand markets• Disciplined capital management - intentional and prudent approach to delivering quality income to Unitholders while driving growth without compromising balance sheet strength• Best-in-class development - proven track-record delivering developments that bolster growth with new income and enhance net asset value• ESG leadership - established strategy, policy and goal-oriented plans recognized by numerous reputable industry standardsFINANCIAL SNAPSHOT(As at or for the three months ended June 30, 2024)FFO per unit (5),(6)$0.43AFFO per unit (5),(6)$0.36Total Committed Commercial Occupancy 97.5%Retail Committed Occupancy 98.3%Blended Leasing Spread (7)23.4%Unencumbered Asset Pool (6),(8)$8.1BLiquidity (6),(8) $1.5BDebt-to-EBITDA (6),(8) 9.18xQ2 | 2024TSX: REI-UN.TO5) FFO: Funds from Operations; AFFO: Adjusted Funds from Operations6) This is a non-GAAP measurement. For more information, refer to the Non-GAAP measures section in RioCan’s MD&A for the three and six months ended June 30, 20247) Based on annualized contractual base rent8) RioCan’s proportionate share
PROFILERioCan owns, manages and develops retail and mixed-useproperties in Canada's most densely populated markets. Ourproperties are anchored by necessity-based retail tenants andnationally recognized brands, including Loblaws, Metro,Winners and Dollarama, that cater to the needs of Canada'sgrowing population and urban communities. With a long trackrecord of providing reliable monthly distributions, RioCanmaintains a steadfast commitment to delivering totalUnitholder return through profitable, sustainable growth.As of June 30, 2024, our portfolio is comprised of 187properties(1)with an aggregate net leasable area ofapproximately 33 million square feet.MONTREAL19 assets1.9M sq.ft. (2)3.3%(3)OTTAWA35 assets4.8M sq.ft. (2)12.8%(3)GREATERTORONTO AREA85 assets16.8M sq.ft. (2)57.6%(3)EDMONTON9 assets1.7M sq.ft. (2)5.0%(3)CALGARY16 assets3.6M sq.ft. (2)11.9%(3)VANCOUVER4 assets1.1M sq.ft. (2)4.7%(3)~95% of total fair value from Canada’s six major markets+16%since 2017~273,000Population (4)+77%since 2017~$148,000avg. household income (4)+45%since 2017Investor Fact SheetIncludes eight properties under developmentIncome producing properties at RioCan’s interestPercentage of total fair value of income producing properties at RioCan's interest Within 5km radius. Data is updated once a year with Q2 2024 disclosure reflecting new statistics that becomes available each spring. Source: 2024 - Trends, 2024 Environics Analytics1) 2) 3) 4) INVESTMENT THESISWHY RIOCAN, OUR DIFFERENTIATORS• Ideal mix of quality - driving resilience and providing opportunities for long-term growth• Irreplaceable portfolio - thoughtfully assembled over years offering a strong retail core, anchored by resilient, necessity-based tenants, and located in Canada's most in-demand markets• Disciplined capital management - intentional and prudent approach to delivering quality income to Unitholders while driving growth without compromising balance sheet strength• Best-in-class development - proven track-record delivering developments that bolster growth with new income and enhance net asset value• ESG leadership - established strategy, policy and goal-oriented plans recognized by numerous reputable industry standardsFINANCIAL SNAPSHOT(As at or for the three months ended June 30, 2024)FFO per unit (5),(6)$0.43AFFO per unit (5),(6)$0.36Total Committed Commercial Occupancy 97.5%Retail Committed Occupancy 98.3%Blended Leasing Spread (7)23.4%Unencumbered Asset Pool (6),(8)$8.1BLiquidity (6),(8) $1.5BDebt-to-EBITDA (6),(8) 9.18xQ2 | 2024TSX: REI-UN.TO5) FFO: Funds from Operations; AFFO: Adjusted Funds from Operations6) This is a non-GAAP measurement. For more information, refer to the Non-GAAP measures section in RioCan’s MD&A for the three and six months ended June 30, 20247) Based on annualized contractual base rent8) RioCan’s proportionate share
1) Property count is at 100% ownership and based on income producing properties, whereas % annualized gross rent is at RioCan interest.2) Net rent is primarily contractual base rent pursuant to tenant leases.3) Effective Q4 2023, Other Essential Retailer included Pet, Hardware and Office Supplies; and Other Tenants included Apparel and Other Retailers.4) Effective Q1 2024, Other Essential Retailer was combined with Essential Personal Services, which included Financial and Personal Services such as Medical, Dental, Optical,Legal, Insurance, Mobility, Daycare and Government Offices.CURATED PORTFOLIO (1)OPERATIONAL EXCELLENCERESILIENT MIX (1)TRAFFIC DRIVING TENANTS (1)(2)%, ANNUALIZED NET RENTAL REVENUE (3),(4)PROPERTY MIXTENANT COMPOSITIONBY FAIR VALUEBY ANNUALIZED NET RENT(3)(2)RioCan has continually evolved to serve Canada’s most populated major markets providing consumers their every day shopping needs such as essential groceries+20% +28%
1) Property count is at 100% ownership and based on income producing properties, whereas % annualized gross rent is at RioCan interest.2) Net rent is primarily contractual base rent pursuant to tenant leases.3) Effective Q4 2023, Other Essential Retailer included Pet, Hardware and Office Supplies; and Other Tenants included Apparel and Other Retailers.4) Effective Q1 2024, Other Essential Retailer was combined with Essential Personal Services, which included Financial and Personal Services such as Medical, Dental, Optical,Legal, Insurance, Mobility, Daycare and Government Offices.CURATED PORTFOLIO (1)OPERATIONAL EXCELLENCERESILIENT MIX (1)TRAFFIC DRIVING TENANTS (1)(2)%, ANNUALIZED NET RENTAL REVENUE (3),(4)PROPERTY MIXTENANT COMPOSITIONBY FAIR VALUEBY ANNUALIZED NET RENT(3)(2)RioCan has continually evolved to serve Canada’s most populated major markets providing consumers their every day shopping needs such as essential groceries+20% +28%
Growth in distributionsover three successive years of annual increases15.6%Consistent payout ratio target enables distribution growth as FFO grows.VALUE RICH DEVELOPMENT PIPELINE (5)DISCIPLINED BALANCE SHEET MANAGEMENT (1)Total PipelineBy zoning status BEST-IN-CLASS RESIDENTIAL RENTAL PORTFOLIOClear Path to 8.0x - 9.0x Target:• Ramp up of EBITDA – natural deleveraging from organicgrowth and with new income from recent and near-termdevelopment deliveries• ~90% pre-sold condominium and townhouses - providerepatriated capital from contracted sales• Revenue from pre-sold units provide ample coverage overproject level financing• Prudent capital allocation – scaling down capital intensiveconstruction spend with plans to remain within the targetrange of 8-9x over the long run14 buildings3 years average age3,160 units(6)100% major market96.1% occupied(7)CMHC financing at 3.43% for 7.5 years (8)Annualized distributions / unit (2)$1.11Distribution yield (2) (3)6.4 %FFO payout ratio, target55% to 65%FFO payout ratio, peer average (4)73.5%SQFT44.1MSUSTAINABLE GROWTH IN DISTRIBUTIONS8.0x-9.0x Target(2)1) Represents Non-GAAP measure and RioCan's Proportionate share2) Represents annualized totals based on monthly distributions of $0.09253) Distribution yield is calculated using annualized distribution and closing price as of August 7, 20244) Based on annualized distribution and Bloomberg analyst consensus estimates as of August 7, 20245) At RioCan’s interest: Totals 16.5M sq. ft of zoned GFA (Gross Floor Area)6) Number of units are at 100% ownership interest7) Based on 2,354 stabilized units8) Weighted average effective interest rate and remaining term to maturity of fixed-rate Canada Mortgage and Housing Corporation (CMHC) mortgages as of June 30, 2024
Growth in distributionsover three successive years of annual increases15.6%Consistent payout ratio target enables distribution growth as FFO grows.VALUE RICH DEVELOPMENT PIPELINE (5)DISCIPLINED BALANCE SHEET MANAGEMENT (1)Total PipelineBy zoning status BEST-IN-CLASS RESIDENTIAL RENTAL PORTFOLIOClear Path to 8.0x - 9.0x Target:• Ramp up of EBITDA – natural deleveraging from organicgrowth and with new income from recent and near-termdevelopment deliveries• ~90% pre-sold condominium and townhouses - providerepatriated capital from contracted sales• Revenue from pre-sold units provide ample coverage overproject level financing• Prudent capital allocation – scaling down capital intensiveconstruction spend with plans to remain within the targetrange of 8-9x over the long run14 buildings3 years average age3,160 units(6)100% major market96.1% occupied(7)CMHC financing at 3.43% for 7.5 years (8)Annualized distributions / unit (2)$1.11Distribution yield (2) (3)6.4 %FFO payout ratio, target55% to 65%FFO payout ratio, peer average (4)73.5%SQFT44.1MSUSTAINABLE GROWTH IN DISTRIBUTIONS8.0x-9.0x Target(2)1) Represents Non-GAAP measure and RioCan's Proportionate share2) Represents annualized totals based on monthly distributions of $0.09253) Distribution yield is calculated using annualized distribution and closing price as of August 7, 20244) Based on annualized distribution and Bloomberg analyst consensus estimates as of August 7, 20245) At RioCan’s interest: Totals 16.5M sq. ft of zoned GFA (Gross Floor Area)6) Number of units are at 100% ownership interest7) Based on 2,354 stabilized units8) Weighted average effective interest rate and remaining term to maturity of fixed-rate Canada Mortgage and Housing Corporation (CMHC) mortgages as of June 30, 2024
FORWARD-LOOKING INFORMATIONAll information other than statements of current and historical fact included in this presentation is forward-looking information within the meaning of applicable securities laws. Forward-looking information cangenerally be identified by the use of forward-looking terminology such as “target”, “outlook”, “objective”, “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plan”, “continue”,“ambition”, or similar expressions or the negative thereof suggesting future outcomes or events. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement.Forward-looking information in this presentation includes, but is not limited to, statements regarding the growth and financial targets that RioCan aspires to achieve, RioCan's emissions targets, RioCan’s businessgenerally, future financial position and business strategy, and its plans and objectives, as well as our strategies to achieve those objectives. Material factors or assumptions that were applied in drawing aconclusion or making an estimate set out in the forward-looking information may include, but are not limited to: growth of the retail environment; a changing interest rate environment; a continuing trend towardland use intensification at reasonable costs and development yields including residential development in urban markets; the Trust’s ability to redevelop, sell or enter into partnerships with respect to the futureincremental density it has identified in its portfolio; continued access to equity and debt capital markets to meet the Trust’s current and future financing needs; and the availability of investment opportunities forgrowth in Canada. Certain material factors, estimates or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in this presentation and actual results could differmaterially from such conclusions, forecasts or projections.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 the environment in which RioCan will operate in the future and its ability to achieve its goals. Although management believes that the expectations represented in such forward-looking information arereasonable, there can be no assurance that such expectations will prove to be correct. The future outcomes that relate to the forward-looking information may be influenced by many factors that could causeactual future results, conditions, actions or events to differ materially from the targets, expectations, estimates or intentions expressed in the forward-looking information, including the risks referred to under theheading “Risks and Uncertainties” in RioCan’s MD&A for the three and six months ended June 30, 2024 and in its most recent Annual Information Form, available at www.sedarplus.com and at www.riocan.com.RioCan cautions that such list of factors is not exhaustive and when relying on forward-looking information to make decisions with respect to RioCan, readers should carefully consider these factors, as well asother uncertainties and potential events, and the inherent uncertainty of forward-looking information.There can be no assurance that forward-looking information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Accordingly, readersshould not place undue reliance on forward-looking information. The forward-looking information contained in this presentation is made as of the date hereof. Except as required by applicable securities laws,RioCan undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.CONTACTSINVESTOR RELATIONSRioCan Real Estate Investment Trust2300 Yonge Street, Suite 2200P.O. Box 2386, Toronto, ON M4P 1E4Tel. 1-800-465-2733Email. ir@riocan.comWebsite. www.riocan.comTRANSFER AGENT & REGISTRARTSX Trust Company100 Adelaide Street West, Suite 301Toronto, ON M5H 4H1Tel. 1-416-682-3860 or 1-800-387-0825Email. shareholderinquiries@tmx.comWebsite. www.tsxtrust.comAchieved ESG rating upgrade from A to AA by Morgan Stanley Capital International (MSCI) (1)Ranked 1st among Canadian peers in the GRESB Real Estate and Disclosure AssessmentsEarned the 2024 Green Lease Leader (Platinum Level) recognition by the Institute for Market Transformation (IMT) and the U.S. Department of Energy's Better Building Alliance Recognized as one of Greater Toronto’s Top 100 Employers by Mediacorp Canada Inc. seven years running1)The use by RioCan of any MSCI ESG research LLC or its affiliates ("MSCI") data, and the use of MSCI logos, trademarks, service marks or index names herein, do not constitute a sponsorship, endorsement, recommendation, or promotion of RioCan by MSCI. MSCI services and data are the property of MSCI or its information providers, and are provided 'as-is' and without warranty. MSCI names and logos are trademarks or service marks of MSCI.