Press Release: RioCan Announces Strong Fourth Quarter and Full Year 2025 Results - Full Year Highlights: 3.6% Commercial Same Property NOI Growth, 98.5% Retail Occupancy and 37.3% New Leasing Spread Underscore Portfolio Momentum

Dow Jones
Yesterday
TORONTO--(BUSINESS WIRE)--February 17, 2026-- 

RioCan Real Estate Investment Trust ("RioCan" or the "Trust") (TSX: REI.UN) announced today its financial results for the three months and year ended December 31, 2025.

   --  New leasing spreads of 37.3% for the year drove blended leasing spreads 
      to 21.1%, reflecting strong supply/demand fundamentals 
 
   --  Commercial Same Property NOI growth of 4.5% for the Fourth Quarter 
      supported full year growth of 3.6% 
 
   --  $741.7 million of Total Capital Repatriation drove Adjusted Spot Debt 
      to Adjusted EBITDA down to 8.6x 
 
   --  $178.6 million in Unit repurchases completed in 2025 and year-to-date 
      2026 

"RioCan delivered another strong year, highlighted by exceptional operating results and disciplined execution of our capital recycling strategy. Our results underscore the strength of our core retail platform, which serves as the foundation for the strategic plan we announced at our Investor Day," said Jonathan Gitlin, President and CEO of RioCan. "We enter 2026 with momentum fueled by intensifying demand from leading retailers amid a broader market shortage of well-located retail space. This dynamic positions RioCan to generate sustainable, long-term value for our Unitholders."

 
Financial Highlights 
-------------------------------------------------------- 
                Three months 
               ended December         Years ended 
                     31                December 31 
              ----------------  ------------------------ 
                   2025   2024        2025        2024 
------------       ----   ----      ------      ------ 
 
    FFO per 
     unit - 
     diluted 
     (1)        $  0.45  $0.45   $    1.87   $    1.78 
    Core FFO 
     per unit 
     - 
     diluted 
     (1)        $  0.39  $0.41   $    1.55   $    1.56 
    Net 
     income 
     per unit 
     - 
     diluted    $  0.43  $0.42   $    0.23   $    1.58 
 
 
                                  December    December 
As at                             31, 2025    31, 2024 
------------       ----   ----  ----------  ---------- 
 
    Net book 
     value 
     per 
     unit                        $   24.37   $   25.16 
 
 
   --  Full year FFO per unit (diluted) increased by 5.1%, driven by strong 
      operating performance and the accretive impact of unit buybacks completed 
      during the year. Results were further supported by higher 
      Inventory-Related Gains1. These positive contributors were partially 
      offset by higher interest expenses and lower interest income. In addition, 
      G&A savings related to RioCan's 2024 organizational restructuring largely 
      offset lower FFO from former HBC operations, consistent with the 
      expectations provided in the full-year guidance for these assets. 
 
   --  Full year Core FFO per unit (diluted) benefitted primarily from 
      Commercial Same Property NOI growth1 of 3.6% and the accretive impact of 
      unit buybacks. The impact of asset dispositions, net of acquisitions, 
      higher interest expense and lower interest income offset these benefits. 
      We continue to adhere to our Investor Day guidance of >= 3.5% cumulative 
      average growth rate Core FFO per unit (diluted) for 2026-2028. 
 
   --  Net income per unit for the year of $0.23 was $1.35 per unit lower than 
      the same period last year, reflecting Net Valuation Losses1 totalling 
      $443.1 million or $1.50 per unit relating to fair value of investment 
      properties and the RC-HBC LP. 
 
   --  Adjusted Spot Debt to Adjusted EBITDA1 improved to 8.64x, the ratio of 
      unsecured to secured debt was 63% to 37% and the FFO Payout Ratio1 was 
      61.6%. RioCan's strong balance sheet, reinforced by $1.5 billion of 
      Liquidity1 and $9.2 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. 
 

Financial Outlook

 
                                               Financial Outlook 2026 
---------------------------------------  ---------------------------- 
 
Core FFO per unit - diluted (i)                        $1.60 to $1.62 
Commercial Same Property NOI growth (i)                  3.5% to 4.0% 
---------------------------------------  ---------------------------- 
Development Spending (ii)(1)               $45 million - $55 million 
Portfolio Investments Spending (ii)(1)    $95 million - $115 million 
---------------------------------------  ---------------------------- 
 
 
(i)     Refer to the Financial Outlook section of the Management Discussion 
        and Analysis for the three months and year ended December 31, 2025 for 
        further details. Readers are cautioned to review the discussion of 
        forward-looking information and related risks under the 
        Forward-Looking Information and Financial Outlook and Financial 
        Outlook section of the MD&A. 
(ii)    Development Spending includes an estimated amount of spending for 
        pipeline advancement, residential inventory and mixed-use projects. 
        Portfolio Investments Spending includes an estimated amount of 
        spending for retail infill projects and asset enhancements. 
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

 
(in millions, except where 
otherwise noted, and 
percentages) 
-------------------------------  -----------  ---------  --------- 
                                               December   December 
As at                                          31, 2025   31, 2024 
-----------------   -----------  -----------  ---------  --------- 
 
    Occupancy - 
     committed 
     (i)                                          97.8%      98.0% 
    Retail 
     occupancy - 
     committed 
     (i)                                          98.5%      98.7% 
 
                       Three months ended     Years ended December 
                          December 31                  31 
-----------------   ------------------------  -------------------- 
                    2025         2024              2025       2024 
-----------------   ----  -----  ----  -----   --------   -------- 
 
    Blended 
     leasing 
     spread         24.9%        25.5%            21.1%      18.7% 
    New leasing 
     spread         40.6%        52.5%            37.3%      36.7% 
    Renewal 
     leasing 
     spread         20.5%        17.6%            17.8%      13.1% 
 
 
                                               December   December 
As at                                          31, 2025   31, 2024 
-----------------   -----------  -----------  ---------  --------- 
 
    Liquidity 
     (ii)(1)                                  $   1,462  $   1,694 
    Adjusted Spot 
    Debt to 
    Adjusted 
    EBITDA 
    (ii)(1)                                       8.64x      9.12x 
    Unencumbered 
     Assets 
     (ii)(1)                                  $   9,173  $   8,201 
 
 
 
(i)     Includes commercial portfolio only. Excludes income producing 
        properties that are owned through joint ventures and reported under 
        equity-accounted investments. 
(ii)    At RioCan's Proportionate Share. 
 
   --  Occupancy: Committed retail and portfolio occupancy of 98.5% and 97.8%, 
      respectively. 
 
   --  Leasing Progress: 5.0 million square feet of leasing activity in 2025, 
      including 4.0 million square feet of renewals. 
 
   --  Leasing Spreads: Full year blended leasing spread increased to 21.1%. 
      This record performance was driven by new and renewal leasing spreads of 
      37.3% and 17.8%, respectively. The average blended leasing spread of 
      24.7% on new leases and market renewals (comprising 65% of expiring 
      leases) highlights RioCan's ability to extract the mark-to-market 
      opportunity embedded within its portfolio. 
 
   --  Retention Ratio: A high retention ratio of 93.1%. Best-in-class tenants 
      retained with minimal capital outlay; high renewal leasing spreads 
      validate sustained demand. 
 
   --  Average Net Rent Per Square Foot for new leasing: $29.65 for the year 
      captured mark-to-market gains, and generated a 28% premium compared to 
      average net rent per occupied square foot of $23.18 at year end. 
 
   --  Same Property NOI: Commercial Same Property NOI1 grew 4.5% in the 
      Fourth Quarter, the second consecutive quarter at or above that level, 
      contributing to 3.6% growth for the year and highlighting the strength of 
      our core assets and success of our leasing strategy. 
 
   --  Adjusted G&A Expense as a percentage of rental revenue1: Improved to 
      3.8% on a year-to-date basis, down from 4.1% in the comparable prior year 
      period and is expected to be 4% on a go-forward basis. 
 
   --  Capital Recycling: For the year ended December 31, 2025, Total Capital 
      Repatriation1 was $741.7 million including Total Capital Repatriation 
      from RioCan Living1 of $628.3 million and $113.4 million from the sale of 
      lower-growth assets. 
 
   --  Total Capital Repatriation from RioCan Living was generated through the 
      sale of the Trust's interests in seven RioCan Living properties and final 
      condominium closings. Successful condominium closings reduced the Trust's 
      residual inventory balance related to condominium projects under 
      construction to $130 million on a proportionate basis or 2% of NAV. 
 
   --  Subsequent to year end, the Trust entered into a firm agreement to sell 
      The Underwood Apartments in Calgary, Alberta for proceeds of $46.5 
      million, with closing expected in the first half of 2026. This 
      transaction brings the cumulative number of sold and firm RioCan Living 
      properties to nine and marks the halfway point to the $1.3 billion to 
      $1.4 billion capital repatriation target. 
 
   --  The additional $113.4 million of lower-growth assets sold during 2025 
      included two cinema-anchored properties and two office buildings in 
      secondary markets. 
 
   --  Proceeds from these capital repatriation activities have been 
      reinvested into accretive uses including the repurchase of Trust Units. 
 
 
   --  Normal Course Issuer Bid (NCIB): During the year ended December 31, 
      2025, the Trust purchased and cancelled 6.9 million Units at a weighted 
      average price of $18.11 per unit for a total cost of $127.2 million. 
      Subsequent to year end, an additional 2.6 million units were purchased 
      and cancelled at a weighted average price of $19.51 per unit for a total 
      cost of $51.4 million. These purchases were made pursuant to the Trust's 
      NCIBs and the automatic securities purchase plan (ASPP) adopted in 
      connection with these NCIBs. We believe the current unit price does not 
      reflect the intrinsic value of our business and view the NCIB as an 
      accretive, disciplined use of capital. 
 
   --  Development Completions: During the year ended December 31, 2025, 
      development projects totaling approximately 366,000 square feet were 
      completed and transitioned into income producing properties. This 
      includes 264,000 square feet of mixed-use projects comprised of 
      residential rental and retail units and 102,000 square feet of commercial 
      retail projects. No large-scale construction projects were initiated in 
      2025, and none are planned for 2026. 
 
   --  Balance Sheet and Liquidity: As of December 31, 2025, the Adjusted Spot 
      Debt to Adjusted EBITDA ratio improved to 8.64x from 9.12x at the end of 
      2024, within RioCan's target range of 8.0x - 9.0x. The Trust has $1.5 
      billion of Liquidity to meet its financial obligations, including $1.3 
      billion from its revolving unsecured operating line of credit. 
 
   --  The Trust's unencumbered asset pool increased to $9.2 billion at the 
      end of the Fourth Quarter from $8.2 billion at the end of 2024. 
 
   --  As of December 31, 2025, the Ratio of Unsecured Debt to Total 
      Contractual Debt on a proportionate share basis increased to 63% from 56% 
      at year end 2024. 
 
   --  During the Fourth Quarter, 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 the operating line of credit, improving the Trust's Liquidity 
      and reducing the amount of floating rate debt outstanding. 
   1.  A non-GAAP measurement. For reconciliations and the basis of 
      presentation of RioCan's non-GAAP measures, refer to the Basis of 
      Presentation and Non-GAAP Measures section in this News Release. 

Conference Call and Webcast

Interested parties are invited to participate in a conference call with management on Wednesday, February 18, 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 1-833-950-0062 and entering the access code: 255852.

For those unable to participate in the live mode, a replay will be available at 1-866-813-9403 with access code: 959096.

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 December 31, 2025, our portfolio is comprised of 168 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 annual audited consolidated financial statements ("2025 Annual 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 2025 Annual Consolidated Financial Statements and MD&A for the three months and year ended December 31, 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, Core FFO, Core FFO per unit - diluted, Net Operating Income ("NOI"), Same Property NOI, Commercial Same Property NOI ("Commercial SPNOI"), Residential Inventory Gains at RioCan's Proportionate Share, FFO Payout Ratio, Core FFO Payout Ratio, Inventory-Related Gains, Net Valuation Losses, Total RC-HBC LP Valuation Losses, Adjusted G&A Expense as a percentage of rental revenue, Total Capital Repatriation, Total Capital Repatriation from RioCan Living, 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 months and year ended December 31, 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 December 31, 2025 and December 31, 2024:

 
As at                            December 31, 2025                              December 31, 2024 
-----------------   --------------------------------------------  ---------------------------------------------- 
                                       Equity-          RioCan's                     Equity-            RioCan's 
(thousands of                       accounted     proportionate                   accounted       proportionate 
dollars)             IFRS basis    investments             share   IFRS basis    investments               share 
-----------------   -----------  -------------  ----------------  -----------  -------------  ------------------ 
Assets 
Investment 
 properties (i)     $13,628,959   $   195,820    $    13,824,779  $13,839,154   $   425,690    $    14,264,844 
Equity-accounted 
 investments            159,596      (159,596)                --      408,588      (408,588)                -- 
Residential 
 inventory              236,745       263,569            500,314      284,050       337,920            621,970 
Mortgages and 
 loans receivable       338,331       (17,152)           321,179      470,729        (5,321)           465,408 
Assets held for 
 sale                    46,500            --             46,500       16,707            --             16,707 
Receivables and 
 other assets           339,221        57,909            397,130      262,573        77,571            340,144 
Cash and cash 
 equivalents            145,040        13,994            159,034      190,243         9,890            200,133 
------------------   ----------      --------       ------------   ----------      --------       ------------ 
Total assets        $14,894,392   $   354,544    $    15,248,936  $15,472,044   $   437,162    $    15,909,206 
------------------   ----------      --------       ------------   ----------      --------       ------------ 
 
Liabilities 
Debentures payable  $ 4,338,865   $        --    $     4,338,865  $ 4,088,654   $        --    $     4,088,654 
Mortgages payable     2,184,306       141,182          2,325,488    2,851,602       160,701          3,012,303 
Mortgages payable 
 associated with 
 assets held for 
 sale                    28,343            --             28,343           --            --                 -- 
Lines of credit 
 and other bank 
 loans                  601,194       169,044            770,238      383,658       198,682            582,340 
Accounts payable 
 and other 
 liabilities            584,421        44,318            628,739      589,792        77,779            667,571 
------------------   ----------      --------       ------------   ----------      --------       ------------ 
Total liabilities   $ 7,737,129   $   354,544    $     8,091,673  $ 7,913,706   $   437,162    $     8,350,868 
------------------   ----------      --------       ------------   ----------      --------       ------------ 
 
Equity 
Unitholders' 
 equity               7,157,263            --          7,157,263    7,558,338            --          7,558,338 
------------------   ----------      --------       ------------   ----------      --------       ------------ 
Total liabilities 
 and equity         $14,894,392   $   354,544    $    15,248,936  $15,472,044   $   437,162    $    15,909,206 
------------------   ----------      --------       ------------   ----------      --------       ------------ 
 
 
(i)    Net of $50.2 million of cumulative unrecognized share of losses from 
       RC-HBC LP in excess of RioCan's carrying value at December 31, 2025. 
 

The following tables reconcile the consolidated statements of income from IFRS to RioCan's proportionate share basis for the three months and years ended December 31, 2025 and 2024:

 
Three months ended 
December 31                               2025                                          2024 
--------------------   -------------------------------------------  --------------------------------------------- 
                                         Equity-          RioCan's                    Equity-            RioCan's 
(thousands of              IFRS       accounted     proportionate       IFRS       accounted       proportionate 
dollars)                  basis      investments             share     basis      investments               share 
--------------------   --------  ---------------  ----------------  --------  ---------------  ------------------ 
Revenue 
Rental revenue         $295,071   $    2,696         $     297,767  $293,327   $    8,231         $     301,558 
Residential inventory 
 sales                   48,048       47,112                95,160    59,670       18,902                78,572 
Property management 
 and other service 
 fees                     4,796           --                 4,796     4,606         (375)                4,231 
---------------------   -------      -------      ----  ----------   -------      -------      ----  ---------- 
                        347,915       49,808               397,723   357,603       26,758               384,361 
 --------------------   -------      -------      ----  ----------   -------      -------      ----  ---------- 
Operating costs 
Rental operating 
costs 
    Recoverable under 
     tenant leases      103,156        1,134               104,290   101,997          923               102,920 
    Non-recoverable 
     costs                9,185          387                 9,572    10,989          693                11,682 
Residential inventory 
 cost of sales           36,587       45,850                82,437    48,644       16,764                65,408 
---------------------   -------      -------      ----  ----------   -------      -------      ----  ---------- 
                        148,928       47,371               196,299   161,630       18,380               180,010 
 --------------------   -------      -------      ----  ----------   -------      -------      ----  ---------- 
Operating income        198,987        2,437               201,424   195,973        8,378               204,351 
---------------------   -------      -------      ----  ----------   -------      -------      ----  ---------- 
Other income (loss) 
Interest income           8,460          161                 8,621    12,301          568                12,869 
Income from 
 equity-accounted 
 investments              1,401       (1,401)                   --     3,977       (3,977)                   -- 
Fair value gain 
 (loss) on investment 
 properties, net (i)      9,706       (2,403)                7,303     2,004       (1,855)                  149 
Investment and other 
 income (loss), net       2,308        1,730                 4,038     3,782         (282)                3,500 
---------------------   -------      -------      ----  ----------   -------      -------      ----  ---------- 
                         21,875       (1,913)               19,962    22,064       (5,546)               16,518 
 --------------------   -------      -------      ----  ----------   -------      -------      ----  ---------- 
Other expenses 
Interest costs, net      72,092          492                72,584    66,040        2,723                68,763 
General and 
 administrative          12,282            7                12,289    19,070           37                19,107 
Internal leasing 
 costs                    3,907           --                 3,907     3,262           --                 3,262 
Transaction and other 
 costs                    4,407           25                 4,432     4,017           72                 4,089 
---------------------   -------      -------      ----  ----------   -------      -------      ----  ---------- 
                         92,688          524                93,212    92,389        2,832                95,221 
 --------------------   -------      -------      ----  ----------   -------      -------      ----  ---------- 
Income before income 
 taxes                 $128,174   $       --         $     128,174  $125,648   $       --         $     125,648 
---------------------   -------      -------      ----  ----------   -------      -------      ----  ---------- 
Net income             $128,174   $       --         $     128,174  $125,648   $       --         $     125,648 
---------------------   -------      -------      ----  ----------   -------      -------      ----  ---------- 
 
 
(i)    Net of $26.1 million of unrecognized share of losses from RC-HBC LP in 
       excess of RioCan's carrying value for the three months ended December 
       31, 2025. 
 
 
Years ended December 
31                                          2025                                            2024 
--------------------   ----------------------------------------------  ---------------------------------------------- 
                                          Equity-            RioCan's                     Equity-            RioCan's 
                                       accounted       proportionate                   accounted       proportionate 
(in thousands)          IFRS basis    investments               share   IFRS basis    investments               share 
--------------------   -----------  -------------  ------------------  -----------  -------------  ------------------ 
Revenue 
Rental revenue         $1,176,428    $    (2,853)   $   1,173,575      $1,137,127    $    32,672    $   1,169,799 
Residential inventory 
 sales                    244,189        121,101          365,290          84,483        166,952          251,435 
Property management 
 and other service 
 fees                      15,954           (779)          15,175          17,916         (1,320)          16,596 
---------------------   ---------       --------       ----------       ---------       --------       ---------- 
                        1,436,571        117,469        1,554,040       1,239,526        198,304        1,437,830 
 --------------------   ---------       --------       ----------       ---------       --------       ---------- 
Operating costs 
Rental operating 
costs 
    Recoverable under 
     tenant leases        414,386          3,983          418,369         397,042          3,453          400,495 
    Non-recoverable 
     costs                 41,638          5,939           47,577          37,147          2,723           39,870 
Residential inventory 
 cost of sales            181,831        109,806          291,637          64,389        137,710          202,099 
---------------------   ---------       --------       ----------       ---------       --------       ---------- 
                          637,855        119,728          757,583         498,578        143,886          642,464 
 --------------------   ---------       --------       ----------       ---------       --------       ---------- 
Operating income 
 (loss)                   798,716         (2,259)         796,457         740,948         54,418          795,366 
---------------------   ---------       --------       ----------       ---------       --------       ---------- 
Other income (loss) 
Interest income            38,237            555           38,792          42,469          2,163           44,632 
Income (loss) from 
 equity-accounted 
 investments             (236,934)       236,934               --          38,507        (38,507)              -- 
Fair value loss on 
 investment 
 properties, net (i)     (137,359)      (197,367)        (334,726)        (29,353)        (3,582)         (32,935) 
Investment and other 
 income (loss), net        (9,094)       (32,801)         (41,895)         17,531         (2,769)          14,762 
---------------------   ---------       --------       ----------       ---------       --------       ---------- 
                         (345,150)         7,321         (337,829)         69,154        (42,695)          26,459 
 --------------------   ---------       --------       ----------       ---------       --------       ---------- 
Other expenses 
Interest costs, net       277,885          5,035          282,920         257,544         11,544          269,088 
General and 
 administrative            44,751             52           44,803          59,847             86           59,933 
Internal leasing 
 costs                     13,715             --           13,715          13,293             --           13,293 
Transaction and other 
 costs                     47,920            (25)          47,895           6,747             93            6,840 
---------------------   ---------       --------       ----------       ---------       --------       ---------- 
                          384,271          5,062          389,333         337,431         11,723          349,154 
 --------------------   ---------       --------       ----------       ---------       --------       ---------- 
Income before income 
 taxes                 $   69,295    $        --    $      69,295      $  472,671    $        --    $     472,671 
Current income tax 
 recovery                      --             --               --            (794)            --             (794) 
---------------------   ---------       --------       ----------       ---------       --------       ---------- 
Net income             $   69,295    $        --    $      69,295      $  473,465    $        --    $     473,465 
---------------------   ---------       --------       ----------       ---------       --------       ---------- 
 
 
 
(i)    Net of $50.2 million of unrecognized share of losses from RC-HBC LP in 
       excess of RioCan's carrying value for the year ended December 31, 
       2025. 
 

NOI and Same Property NOI

The following table reconciles operating income to NOI and Same Property NOI to NOI for the three months and years ended December 31, 2025 and 2024:

 
                    Three months ended        Years ended 
                        December 31            December 31 
                   --------------------  ---------------------- 
(thousands of 
dollars)               2025       2024       2025       2024 
----------------    -------    -------    -------    ------- 
Operating Income   $198,987   $195,973   $798,716   $740,948 
Adjusted for the 
following: 
    Property 
     management 
     and other 
     service 
     fees            (4,796)    (4,606)   (15,954)   (17,916) 
    Residential 
     inventory 
     gains          (11,461)   (11,026)   (62,358)   (20,094) 
    Operational 
     lease 
     revenue from 
     ROU assets, 
     net (i)          2,461      3,889      9,505      9,218 
-----------------   -------    -------    -------    ------- 
NOI                $185,191   $184,230   $729,909   $712,156 
-----------------   -------    -------    -------    ------- 
 
 
(i)    Includes $0.7 million and $2.5 million of straight-line rent from 
       operational lease revenue from ROU assets for the three months and year 
       ended December 31, 2025 (three months and year ended December 31, 2024 
       - $2.1 million). 
 
 
                 Three months ended      Years ended 
                     December 31          December 31 
                 ------------------  -------------------- 
(thousands of 
dollars)             2025      2024      2025      2024 
--------------    -------   -------   -------   ------- 
Commercial 
Commercial Same 
 Property NOI    $157,514  $150,764  $607,474  $586,426 
NOI from 
income 
producing 
properties: 
    Acquired 
     (i)               56        --     3,719     3,342 
    Disposed 
     (i)            1,584     3,533     8,372    15,538 
---------------   -------   -------   -------   ------- 
                    1,640     3,533    12,091    18,880 
 
NOI from 
 completed 
 commercial 
 developments      11,802    10,891    44,895    42,650 
NOI from 
 properties 
 under 
 de-leasing 
 (ii)               4,149     4,516    16,813    16,800 
Lease 
 cancellation 
 fees               1,156     1,591     7,200     4,817 
Straight-line 
 rent 
 adjustment 
 (iii)              3,280     5,226    11,719    13,359 
---------------   -------   -------   -------   ------- 
NOI from 
 commercial 
 properties       179,541   176,521   700,192   682,932 
Residential 
Residential 
 Same Property 
 NOI                2,648     2,885     9,291     9,846 
NOI from 
income 
producing 
properties: 
    Acquired 
     (i)               --        --     1,895     1,878 
    Disposed 
     (i)            1,161     3,050    10,529    12,120 
---------------   -------   -------   -------   ------- 
                    1,161     3,050    12,424    13,998 
NOI from 
 completed 
 residential 
 developments       1,841     1,774     8,002     5,380 
---------------   -------   -------   -------   ------- 
NOI from 
 residential 
 rental             5,650     7,709    29,717    29,224 
---------------   -------   -------   -------   ------- 
NOI              $185,191  $184,230  $729,909  $712,156 
---------------   -------   -------   -------   ------- 
 
 
(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 $0.7 million and $2.5 million of straight-line rent from 
         operational lease revenue from ROU assets for the three months and 
         year ended December 31, 2025 (three months and year ended December 
         31, 2024 - $2.1 million). 
 
 
                 Three months ended      Years ended 
                     December 31          December 31 
                 ------------------  -------------------- 
(thousands of 
dollars)             2025      2024      2025      2024 
--------------    -------   -------   -------   ------- 
Commercial Same 
 Property NOI    $157,514  $150,764  $607,474  $586,426 
Residential 
 Same Property 
 NOI                2,648     2,885     9,291     9,846 
---------------   -------   -------   -------   ------- 
Same Property 
 NOI             $160,162  $153,649  $616,765  $596,272 
---------------   -------   -------   -------   ------- 
 

Residential Inventory Gains (RioCan's Proportionate Share)

The following table reconciles residential inventory gains from IFRS basis to RioCan's proportionate share basis for the three months and years ended December 31, 2025 and 2024:

 
                                 Three months ended                             Three months ended 
                                  December 31, 2025                              December 31, 2024 
                    ---------------------------------------------  --------------------------------------------- 
                                     Residential                                    Residential 
                      Residential      inventory      Residential    Residential      inventory      Residential 
(thousands of          inventory         cost of       inventory      inventory         cost of       inventory 
dollars)                    sales          sales            gains          sales          sales            gains 
-----------------   -------------  -------------  ---------------  -------------  -------------  --------------- 
Total - IFRS basis   $     48,048   $     36,587   $   11,461       $     59,670   $     48,644    $    11,026 
Equity-accounted 
 joint ventures            46,109         44,486        1,623             13,669         12,726            943 
------------------      ---------      ---------      -------          ---------      ---------  ---  -------- 
Total - IFRS and 
 equity-accounted 
 joint ventures            94,157         81,073       13,084             73,339         61,370         11,969 
Other 
 equity-accounted 
 investments                1,003          1,364         (361)             5,233          4,038          1,195 
------------------      ---------      ---------      -------          ---------      ---------  ---  -------- 
Total - RioCan's 
 proportionate 
 share               $     95,160   $     82,437   $   12,723       $     78,572   $     65,408    $    13,164 
------------------      ---------      ---------      -------          ---------      ---------  ---  -------- 
 
                                     Year ended                                     Year ended 
                                  December 31, 2025                              December 31, 2024 
                    ---------------------------------------------  --------------------------------------------- 
                                     Residential                                    Residential 
                      Residential      inventory      Residential    Residential      inventory      Residential 
(thousands of          inventory         cost of       inventory      inventory         cost of       inventory 
dollars)                    sales          sales            gains          sales          sales            gains 
-----------------   -------------  -------------  ---------------  -------------  -------------  --------------- 
Total - IFRS basis   $    244,189   $    181,831   $   62,358       $     84,483   $     64,389    $    20,094 
Equity-accounted 
 joint ventures           105,622         95,336       10,286            142,614        117,666         24,948 
------------------      ---------      ---------      -------          ---------      ---------  ---  -------- 
Total - IFRS and 
 equity-accounted 
 joint ventures           349,811        277,167       72,644            227,097        182,055         45,042 
Other 
 equity-accounted 
 investments               15,479         14,470        1,009             24,338         20,044          4,294 
------------------      ---------      ---------      -------          ---------      ---------  ---  -------- 
Total - RioCan's 
 proportionate 
 share               $    365,290   $    291,637   $   73,653       $    251,435   $    202,099    $    49,336 
------------------      ---------      ---------      -------          ---------      ---------  ---  -------- 
 

FFO

The following table reconciles net income attributable to Unitholders to FFO for the three months and years ended December 31, 2025 and 2024:

 
                          Three months ended          Years ended 
                              December 31              December 31 
                         --------------------  -------------------------- 
(thousands of dollars, 
except where otherwise 
noted)                       2025       2024       2025          2024 
----------------------    -------    -------    -------       ------- 
Net income attributable 
 to Unitholders          $128,174   $125,648   $ 69,295      $473,465 
Add back (deduct): 
    Fair value (gains) 
     losses, net           (9,706)    (2,004)   137,359        29,353 
    Fair value losses 
     (gains) included 
     in 
     equity-accounted 
     investments (i)        2,403      1,855    197,367         3,584 
    Other RC-HBC LP 
    Valuation Losses           --         --    110,196            -- 
    Internal leasing 
     costs                  3,907      3,262     13,715        13,293 
    Transaction losses 
     (gains) on 
     investment 
     properties, net 
     (ii)                     845     (1,345)     6,186           534 
    Transaction gains 
     on 
     equity-accounted 
     investments               --         --         --           (52) 
    Transaction costs 
     on sale of 
     investment 
     properties             4,132      2,435      8,098         3,666 
    Transaction costs 
    on sale of 
    investment 
    properties in 
    equity-accounted 
    investments                --         --         73            -- 
    ERP implementation 
     costs / IT 
     transformation 
     costs                    846         --        846         5,368 
    ERP amortization         (434)      (484)    (1,736)       (1,302) 
    Change in 
     unrealized fair 
     value on 
     marketable 
     securities                --         --         --        (4,648) 
    Current income tax 
     recovery                  --         --         --          (794) 
    Operational lease 
     revenue from ROU 
     assets                 2,032      3,534      7,851         7,814 
    Operational lease 
     expenses from ROU 
     assets in 
     equity-accounted 
     investments               (5)       (18)       (55)          (69) 
    Capitalized 
    interest related 
    to 
    equity-accounted 
    investments 
    (iii): 
        Capitalized 
         interest 
         related to 
         properties 
         under 
         development           91        110        378           426 
        Capitalized 
         interest 
         related to 
         residential 
         inventory            152      1,386      3,588         5,333 
-----------------------   -------    -------    -------       ------- 
FFO                      $132,437   $134,379   $553,161      $535,971 
Add back (deduct): 
    Inventory-Related 
     Gains (iv)           (14,812)   (11,957)   (81,136)      (51,161) 
    Realized gain on 
     sale of marketable 
     securities                --         --         --        (1,997) 
    Restructuring costs        --      7,202        255         7,852 
    Debt prepayment 
     costs, net                --        912         --           455 
    HBC-Related Income 
     (iv)                  (1,913)    (6,335)   (13,232)      (23,503) 
-----------------------   -------    -------    -------       ------- 
Core FFO                 $115,712   $124,201   $459,048      $467,617 
-----------------------   -------    -------    -------       ------- 
 
FFO per unit - diluted   $   0.45   $   0.45   $   1.87      $   1.78 
Core FFO per unit - 
 diluted                 $   0.39   $   0.41   $   1.55      $   1.56 
Weighted average number 
 of Units - basic (in 
 thousands)               294,920    300,469    295,894       300,464 
Weighted average number 
 of Units - diluted (in 
 thousands)               294,958    300,524    295,896       300,473 
-----------------------   -------    -------    -------       ------- 
 
FFO for last four 
 quarters                                      $553,161      $535,971 
Distributions paid for 
 last four quarters                            $340,586      $332,011 
FFO Payout Ratio                                   61.6%         61.9% 
Core FFO Payout Ratio                              74.2%         71.0% 
-----------------------  ---------  ---------   -------       ------- 
 
 
(i)      Net of $26.1 million and $50.2 million unrecognized share of losses 
         from RC-HBC LP in excess of RioCan's carrying value for the three 
         months and year ended December 31, 2025. 
(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 RC Yorkville LP. This amount is not 
         capitalized to development projects under IFRS but is allowed as an 
         adjustment under REALPAC's definition of FFO. 
(iv)     Inventory-Related Gains and HBC-Related Income for the three months 
         and years ended December 31, 2025 and 2024 are as follows: 
 
 
                     Three months ended      Years ended 
                         December 31          December 31 
                     ------------------  -------------------- 
(thousands of 
dollars)                2025      2024      2025      2024 
------------------    ------    ------    ------    ------ 
Residential 
 inventory gains - 
 proportionate 
 share (i)           $12,723   $13,166   $73,653   $49,336 
Residential 
 inventory 
 marketing costs - 
 IFRS                    (86)     (166)     (642)     (969) 
Residential 
 inventory 
 marketing costs 
 from 
 equity-accounted 
 investments             (24)      324        98      (449) 
Capitalized 
 interest relief 
 from sale of 
 residential 
 inventory in 
 equity-accounted 
 investments          (1,225)     (190)   (2,039)   (1,187) 
NOI from other 
 equity-accounted 
 investments             388       229       388       229 
Fee income related 
 to residential 
 inventory - IFRS 
 (ii)                  1,795     1,178     3,657     3,428 
Investment and 
 other income 
 related to 
 residential 
 inventory - IFRS      1,450       185     1,596     3,239 
Investment and 
 other income 
 (loss) related to 
 residential 
 inventory from 
 equity-accounted 
 investments            (209)   (2,769)     (209)   (2,466) 
Residential 
inventory gain 
related to change 
in use included in 
investment and 
other income 
(loss) - IFRS             --        --     4,634        -- 
------------------    ------    ------    ------    ------ 
Inventory-Related 
 Gains               $14,812   $11,957   $81,136   $51,161 
-------------------   ------    ------    ------    ------ 
 
Share of income 
 from RC-HBC LP 
 operations          $   537   $ 3,485   $ 3,891   $13,690 
Operational lease 
 expenses from ROU 
 assets in 
 equity-accounted 
 investments              (5)      (18)      (55)      (69) 
Interest income 
 from RC-HBC LP        1,015     1,164     4,748     3,330 
Fee income from 
 RC-HBC LP               366     1,704     4,648     6,552 
-------------------   ------    ------    ------    ------ 
HBC-Related Income   $ 1,913   $ 6,335   $13,232   $23,503 
-------------------   ------    ------    ------    ------ 
 
 
 
(i)     Refer to the Residential Inventory Gains (RioCan's Proportionate 
        Share) table in this News Release for reconciliation. 
(ii)    Related to fee income earned from residential inventory in accordance 
        with IFRS. 
 

Net Valuation Losses

Net Valuation Losses is the sum total of fair value loss on investment properties, net and Total RC-HBC LP Valuation Losses.

The following table reconciles Net Valuation Losses during the years ended December 31, 2025 and 2024:

 
Years ended December 31                              2025     2024 
----------------------------------------------    -------   ------ 
Fair value losses on investment properties, net  $137,359  $29,353 
Add: 
Total RC-HBC LP Valuation Losses (see below 
for reconciliation)                               305,781       -- 
----------------------------------------------    -------   ------ 
Net Valuation Losses                             $443,140  $29,353 
-----------------------------------------------   -------   ------ 
 

Total RC-HBC LP Valuation Losses

The following table reconciles Total RC-HBC LP Valuation Losses and Other RC-HBC LP Valuation Losses during the three months and years ended December 31, 2025 and 2024:

 
                    Three months ended        Years ended 
                        December 31           December 31 
                    ------------------  ----------------------- 
(thousands of 
dollars)               2025      2024        2025       2024 
-----------------    ------    ------    --------    ------- 
Share of net loss 
 (income) from 
 equity-accounted 
 investments        $(1,401)  $(3,977)  $ 236,934   $(38,507) 
Add back 
(deduct): 
Share of income 
 from RC-HBC LP 
 operations             537     3,485       3,891     13,689 
Share of fair 
 value losses on 
 investment 
 properties from 
 RC-HBC LP 
 pre-CCAA 
 Proceedings             --    (1,608)         --     (2,105) 
Share of income 
 from other 
 equity-accounted 
 investments          1,298     2,100      10,660     26,923 
Provision for 
credit losses on 
RC-HBC LP loans 
receivable               --        --      16,477         -- 
Provision for 
guarantee losses 
on RC-HBC LP 
mortgages 
payable                  --        --      37,819         -- 
-----------------    ------    ------    --------    ------- 
Total RC-HBC LP 
 Valuation Losses   $   434   $    --   $ 305,781   $     -- 
Deduct: 
Share of fair 
 value losses on 
 investment 
 properties from 
 RC-HBC LP 
 post-CCAA 
 Proceedings           (434)       --    (195,585)        -- 
------------------   ------    ------    --------    ------- 
Other RC-HBC LP 
 Valuation Losses   $    --   $    --   $ 110,196   $     -- 
------------------   ------    ------    --------    ------- 
 

Total RC-HBC LP Valuation Losses comprise of the following during the three months and years ended December 31, 2025 and 2024:

 
                  Three months ended       Years ended 
                      December 31           December 31 
                 ---------------------  ------------------ 
(thousands of 
dollars)                2025      2024      2025    2024 
--------------       -------   -------   -------    ---- 
Provision for 
 expected 
 credit losses 
 on finance 
 lease 
 receivables in 
 RC-HBC LP        $       --  $     --  $ 24,671   $  -- 
Write-off of 
straight-line 
rent 
receivable in 
RC-HBC LP                 --        --    23,300      -- 
Transaction 
 gains in 
 RC-HBC LP                --        --      (550)     -- 
Impairment 
losses on 
RC-HBC LP                 --        --     8,479      -- 
Provision for 
credit losses 
on RC-HBC LP 
loans 
receivable                --        --    16,477      -- 
Provision for 
 guarantee 
 losses on 
 RC-HBC LP 
 mortgages 
 payable                  --        --    37,819   $  -- 
---------------      -------   -------   -------    ---- 
Other RC-HBC LP 
 Valuation 
 Losses           $       --  $     --  $110,196   $  -- 
Fair value 
 losses on 
 investment 
 properties 
 from RC-HBC LP 
 (i)                     434        --   195,585      -- 
---------------      -------   -------   -------    ---- 
Total RC-HBC LP 
 Valuation 
 Losses           $      434  $     --  $305,781   $  -- 
---------------      -------   -------   -------    ---- 
 
 
(i)    Net of $26.1 million and $50.2 million unrecognized share of losses 
       from RC-HBC LP for the three months and year ended December 31, 2025 
       (three months and year ended December 31, 2024 - $nil). 
 

Adjusted G&A Expense

Adjusted G&A Expense for the three months and years ended December 31, 2025 and 2024 are as follows:

 
                        Three months ended December 31                 Years ended December 31 
-----------------   ---------------------------------------  -------------------------------------------- 
(thousands of 
dollars, except 
where otherwise 
noted)                  2025          2024           Change        2025            2024            Change 
-----------------    -------       -------      -----------   ---------       ---------      ------------ 
Total G&A expense 
 - IFRS             $ 12,282      $ 19,070      $(6,788)     $   44,751      $   59,847      $(15,096) 
Add back 
(deduct): 
ERP implementation 
 costs / IT 
 transformation 
 costs                  (846)           --         (846)           (846)         (5,368)        4,522 
ERP amortization         434           484          (50)          1,736           1,302           434 
Restructuring 
 costs                    --        (7,202)       7,202            (255)         (7,852)        7,597 
------------------   -------       -------       ------       ---------       ---------       ------- 
Adjusted G&A 
 Expense - IFRS       11,870        12,352         (482)         45,386          47,929        (2,543) 
Add: 
G&A expense from 
 equity-accounted 
 investments               7            37          (30)             52              86           (34) 
------------------   -------       -------       ------       ---------       ---------       ------- 
Adjusted G&A 
 Expense - 
 RioCan's 
 proportionate 
 share              $ 11,877      $ 12,389      $  (512)     $   45,438      $   48,015      $ (2,577) 
 
Rental revenue - 
 IFRS                295,071       293,327        1,744       1,176,428       1,137,127        39,301 
Add back 
(deduct): 
Rental revenue 
 from 
 equity-accounted 
 investments           2,696         8,221       (5,525)         (2,853)         32,626       (35,479) 
Write-off of 
 straight-line 
 rent receivable 
 in RC-HBC LP             --            --           --          23,300              --        23,300 
------------------   -------       -------       ------       ---------       ---------       ------- 
Rental revenue - 
 RioCan's 
 proportionate 
 share              $297,767      $301,548      $(3,781)     $1,196,875      $1,169,753      $ 27,122 
 
Adjusted G&A 
 Expense as a 
 percentage of 
 rental revenue          4.0%          4.1%        (0.1)%           3.8%            4.1%         (0.3)% 
------------------   -------       -------       ------       ---------       ---------       ------- 
 

Total Capital Repatriation

The following table reconciles Total Capital Repatriation for the year ended December 31, 2025:

 
                                           Year ended      Anticipated 
 (thousands of dollars)             December 31, 2025      2025 & 2026 
------------------------------   --------------------   -------------- 
Residential inventory sales 
 revenue                           $          349,811    $     434,000 
Less: 
Outstanding accounts receivable 
 related to above sales - IFRS                (94,762)              -- 
Outstanding accounts receivable 
 related to above sales - EAI 
 JV                                           (33,326)              -- 
-------------------------------  ---  ---------------       ---------- 
Proceeds from residential 
 inventory sales (i)                          221,723          434,000 
Proceeds from RioCan Living 
 dispositions                                 406,620          984,816 
-------------------------------  ---  ---------------       ---------- 
Total Capital Repatriation from 
 RioCan Living                     $          628,343    $   1,418,816 
Proceeds from other asset 
dispositions                                  109,849               -- 
Proceeds from asset 
dispositions within EAI JV                      3,500               -- 
------------------------------   ---  ---------------       ---------- 
Total Capital Repatriation         $          741,692    $   1,418,816 
-------------------------------  ---  ---------------       ---------- 
 
 
(i)    Based on RioCan's Proportionate Share in EAI JV. 
 

Total Contractual Debt

The following table reconciles total debt to Total Contractual Debt as at December 31, 2025 and December 31, 2024:

 
As at                                  December 31, 2025                                  December 31, 2024 
------------------   -----------------------------------------------------  ---------------------------------------------- 
                                                                  RioCan's                     Equity-            RioCan's 
(thousands of                         Equity-accounted      proportionate                   accounted       proportionate 
dollars)              IFRS basis           investments               share   IFRS basis    investments               share 
------------------   -----------  --------------------  ------------------  -----------  -------------  ------------------ 
Debentures payable   $4,338,865     $         --         $   4,338,865      $4,088,654    $        --    $   4,088,654 
Mortgages payable     2,184,306          141,182             2,325,488       2,851,602        160,701        3,012,303 
Lines of credit and 
 other bank loans       601,194          169,044               770,238         383,658        198,682          582,340 
Mortgages payable 
 associated with 
 assets held for 
 sale                    28,343               --                28,343              --             --               -- 
-------------------   ---------   ---  ---------  ----      ----------       ---------       --------       ---------- 
Total debt           $7,152,708     $    310,226         $   7,462,934      $7,323,914    $   359,383    $   7,683,297 
-------------------   ---------   ---  ---------  ----      ----------       ---------       --------       ---------- 
Less: 
    Unamortized 
     debt financing 
     costs, 
     premiums and 
     discounts on 
     origination 
     and debt 
     assumed, and 
     modifications      (28,821)            (179)              (29,000)        (35,490)          (526)         (36,016) 
-------------------   ---------   ---  ---------   ---      ----------       ---------       --------       ---------- 
Total Contractual 
 Debt                $7,181,529     $    310,405         $   7,491,934      $7,359,404    $   359,909    $   7,719,313 
-------------------   ---------   ---  ---------  ----      ----------       ---------       --------       ---------- 
 

Unsecured and Secured Debt

The following table reconciles Total Unsecured and Secured Debt to Total Contractual Debt as at December 31, 2025 and December 31, 2024:

 
As at                           December 31, 2025                                December 31, 2024 
--------------   -----------------------------------------------  ----------------------------------------------- 
(thousands of 
dollars, 
except where                         Equity-            RioCan's                      Equity-            RioCan's 
otherwise                          accounted      proportionate                     accounted      proportionate 
noted)               IFRS basis  investments               share      IFRS basis  investments               share 
--------------   --------------  -----------  ------------------  --------------  -----------  ------------------ 
Total Unsecured 
 Debt            $4,750,000      $        --   $   4,750,000      $4,300,000      $        --   $   4,300,000 
Total Secured 
 Debt             2,431,529          310,405       2,741,934       3,059,404          359,909       3,419,313 
---------------   ---------       ----------      ----------       ---------       ----------      ---------- 
Total 
 Contractual 
 Debt            $7,181,529      $   310,405   $   7,491,934      $7,359,404      $   359,909   $   7,719,313 
---------------   ---------       ----------      ----------       ---------       ----------      ---------- 
 
Percentage of 
Total 
Contractual 
Debt: 
Unsecured Debt         66.1%                            63.4%           58.4%                            55.7% 
Secured Debt           33.9%                            36.6%           41.6%                            44.3% 
---------------   ---------      -----------      ----------       ---------      -----------      ---------- 
 

Liquidity

As at December 31, 2025, RioCan had approximately $1.5 billion of Liquidity as summarized in the following table:

 
As at                        December 31, 2025                          December 31, 2024 
--------------   -----------------------------------------  ----------------------------------------- 
                                 Equity-          RioCan's                  Equity-          RioCan's 
(thousands of                  accounted    proportionate                 accounted    proportionate 
dollars)         IFRS basis  investments             share  IFRS basis  investments             share 
--------------   ----------  -----------  ----------------  ----------  -----------  ---------------- 
Undrawn 
 revolving 
 unsecured 
 operating line 
 of credit       $1,250,000  $        --    $    1,250,000  $1,250,000  $        --    $    1,250,000 
Undrawn 
 construction 
 lines and 
 other bank 
 loans               20,770       32,009            52,779     146,024       97,892           243,916 
Cash and cash 
 equivalents        145,040       13,994           159,034     190,243        9,890           200,133 
---------------   ---------   ----------  ---  -----------   ---------   ----------  ---  ----------- 
Liquidity        $1,415,810  $    46,003    $    1,461,813  $1,586,267  $   107,782    $    1,694,049 
---------------   ---------   ----------  ---  -----------   ---------   ----------  ---  ----------- 
 

Adjusted EBITDA

The following table reconciles consolidated net income attributable to Unitholders to Adjusted EBITDA:

 
Years ended                   December 31, 2025                            December 31, 2024 
---------------   -----------------------------------------  ---------------------------------------------- 
                                  Equity-          RioCan's                     Equity-            RioCan's 
(thousands of         IFRS     accounted     proportionate        IFRS       accounted       proportionate 
dollars)             basis    investments             share      basis      investments               share 
---------------   --------  -------------  ----------------  ---------  ---------------  ------------------ 
Net income 
 attributable to 
 Unitholders      $ 69,295   $        --     $       69,295  $473,465    $       --       $   473,465 
Add (deduct) 
the following 
items: 
Income tax 
recovery: 
    Current             --            --                 --      (794)           --              (794) 
Fair value 
 losses on 
 investment 
 properties, 
 net               137,359       197,367            334,726    29,353         3,582            32,935 
Total RC-HBC LP 
 Valuation 
 Losses            305,781      (195,585)           110,196        --            --                -- 
Change in 
 unrealized fair 
 value on 
 marketable 
 securities (i)         --            --                 --    (4,648)           --            (4,648) 
Internal leasing 
 costs              13,715            --             13,715    13,293            --            13,293 
Non-cash 
 unit-based 
 compensation 
 expense            10,197            --             10,197    10,385            --            10,385 
Interest costs, 
 net               277,885         5,035            282,920   257,544        11,544           269,088 
Debt prepayment 
 gain                   --            --                 --       455            --               455 
Restructuring 
 costs                 255            --                255     7,852            --             7,852 
ERP 
 implementation 
 costs / IT 
 transformation 
 costs                 846            --                846     5,368            --             5,368 
Depreciation and 
 amortization        1,510            --              1,510     1,450            --             1,450 
Transaction 
 (gains) losses 
 on the sale of 
 investment 
 properties, net 
 (ii)                5,539            --              5,539         2           (52)              (50) 
Transaction 
 costs on 
 investment 
 properties          8,098            73              8,171     3,672             1             3,673 
Operational 
 lease revenue 
 (expenses) from 
 ROU assets          7,851           (55)             7,796     7,814           (69)            7,745 
----------------   -------      --------   ---  -----------   -------       -------          --------  ---- 
Adjusted EBITDA   $838,331   $     6,835     $      845,166  $805,211    $   15,006       $   820,217 
----------------   -------      --------   ---  -----------   -------       -------          --------  ---- 
 
 
(i)     By adding back the change in unrealized fair value on marketable 
        securities, RioCan effectively includes realized gains and losses on 
        the sale of marketable securities in Adjusted EBITDA and excludes 
        unrealized fair value gains and losses on marketable securities in 
        Adjusted EBITDA. 
(ii)    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                            December 31, 2025                               December 31, 2024 
----------------   ----------------------------------------------  ---------------------------------------------- 
(thousands of 
dollars, except                       Equity-            RioCan's                     Equity-            RioCan's 
where otherwise                    accounted       proportionate                   accounted       proportionate 
noted)              IFRS basis    investments               share   IFRS basis    investments               share 
----------------   -----------  -------------  ------------------  -----------  -------------  ------------------ 
 
Adjusted Spot 
Debt to Adjusted 
EBITDA 
    Total debt 
     outstanding   $7,152,708    $   310,226    $   7,462,934      $7,323,914    $   359,383    $   7,683,297 
    Less: cash 
     and cash 
     equivalents     (145,040)       (13,994)        (159,034)       (190,243)        (9,890)        (200,133) 
-----------------   ---------       --------       ----------       ---------       --------       ---------- 
Adjusted Spot 
 Debt              $7,007,668    $   296,232    $   7,303,900      $7,133,671    $   349,493    $   7,483,164 
Adjusted EBITDA 
 (i)               $  838,331    $     6,835    $     845,166      $  805,211    $    15,006    $     820,217 
-----------------   ---------       --------       ----------       ---------       --------       ---------- 
Adjusted Spot 
 Debt to Adjusted 
 EBITDA                  8.36                            8.64            8.86                            9.12 
-----------------   ---------   -------------      ----------       ---------   -------------      ---------- 
 
 
(i)    Adjusted EBITDA is on a rolling twelve-month basis 
 

Unencumbered Assets

The tables below summarize RioCan's Unencumbered Assets as at December 31, 2025 and December 31, 2024:

 
As at                          December 31, 2025                               December 31, 2024 
--------------   ---------------------------------------------  ----------------------------------------------- 
                                     Equity-          RioCan's                      Equity-            RioCan's 
(thousands of                     accounted     proportionate                    accounted       proportionate 
dollars)           IFRS basis    investments             share    IFRS basis    investments               share 
--------------   ------------  -------------  ----------------  ------------  -------------  ------------------ 
Investment 
 properties      $13,628,959    $   195,820    $   13,824,779   $13,839,154    $   425,690    $   14,264,844 
Less: 
 Encumbered 
 investment 
 properties       (4,474,260)      (177,561)       (4,651,821)   (5,704,034)      (359,465)       (6,063,499) 
---------------   ----------       --------       -----------    ----------       --------       ----------- 
Unencumbered 
 Assets          $ 9,154,699    $    18,259    $    9,172,958   $ 8,135,120    $    66,225    $    8,201,345 
---------------   ----------       --------       -----------    ----------       --------       ----------- 
 

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", "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 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 and Financial Outlook" in RioCan's MD&A which estimated 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 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.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260217631996/en/

 
    CONTACT:    RioCan Real Estate Investment Trust 

Investor Relations Inquiries

Email: ir@riocan.com

 
 

(END) Dow Jones Newswires

February 17, 2026 16:51 ET (21:51 GMT)

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