RioCan Delivers Strong Second Quarter Performance; Retail Committed Occupancy Climbs to 98.8%, Reflecting Sustained Demand for RioCan’s Portfolio

TORONTO--(BUSINESS WIRE)--RioCan Real Estate Investment Trust (“RioCan" or the "Trust”) (TSX: REI.UN) announced today its financial and operating results for the three and six months ended June 30, 2026. Based on strong year-to-date leasing results, the Trust raises its guidance on Commercial Same Property NOI growth and reaffirms other 2026 guidance as previously disclosed in its 2025 annual MD&A.

• Net income per unit - diluted increased by 6.1%; Core FFO per unit - diluted⁽¹⁾ increased by 5.3%
• 98.8% retail committed occupancy reflects sustained demand in a supply-constrained market
• 23.1% blended leasing spread highlights the Trust’s ability to unlock embedded mark-to-market opportunities
• Total Capital Repatriation from RioCan Living – proforma^(1),(2) of $1.26 billion, including $280.5 million of dispositions completed in the first half of 2026, nearing completion of $1.3 billion target for 2025 to 2026

“Our second-quarter results reinforce that RioCan's strategy is working," said Jonathan Gitlin, President and CEO of RioCan. “We continue to execute against our Investor Day priorities, unlocking embedded growth across our portfolio and creating value through disciplined leasing, active asset management, and strategic capital allocation. The strength of our fundamentals, the quality of our necessity-based retail portfolio and our full operating independence provides RioCan the flexibility to make decisions based on what's best for each asset, supporting strong performance and durable growth. With significant opportunities ahead, we remain confident in our ability to create long-term value for our unitholders."

• Core FFO per unit - diluted in the Second Quarter was $0.40, an increase of $0.02 per unit or 5.3% from the same period ended in 2025, reflecting strong underlying operating performance. Growth was primarily driven by an increase in Commercial Net Operating Income (NOI)⁽¹⁾, including Commercial Same Property NOI growth⁽¹⁾ of 4.3% and the accretive impact of unit repurchases. These gains were partially offset by lower interest income, higher net interest costs and the impact of asset dispositions, net of acquisitions.
• Net income per unit for the Second Quarter was $0.52, an increase of $0.03 per unit or 6.1% compared to the same period last year. This increase was primarily due to higher fair value gains on investment properties and the accretive impact of unit repurchases. These benefits were partially offset by lower operating income and lower income on equity-accounted investments, mainly a result of lower underlying residential inventory gains.
• Unitholders' equity increased $68.4 million during the Second Quarter to $7.18 billion primarily driven by investment property fair value gains from organic stabilized NOI growth.

Financial Outlook 2026⁽¹⁾

• 2026 Commercial Same Property NOI growth is expected to be between 4.0% to 4.5%, an increase from the original guidance of 3.5% to 4.0%⁽²⁾. Higher growth expectations are driven mainly by leasing performance to date and the leasing pipeline for the balance of the year. The Trust reaffirms other 2026 guidance as previously disclosed in its 2025 annual MD&A.

Selected Operational Highlights

• Leasing Spreads: Blended leasing spread of 23.1% in the Second Quarter was supported by new leasing spread of 40.8% and renewal leasing spread of 20.7%.
• New Leasing Rents: Average net rent per square foot for new leasing was $37.73 per square foot, 60% above the $23.58 average net rent per occupied square foot at quarter end, reflective of RioCan's sustained mark-to-market opportunities.
• Leasing Activity: Completed 1.0 million square feet of leasing in the Second Quarter, including 0.9 million square feet of renewals. An additional 1.0 million square feet of lease maturities remain in 2026, providing further mark-to-market opportunities.
• Occupancy: Retail committed occupancy reached a record high for RioCan of 98.8%, with retail in-place occupancy of 98.0%. The committed to in-place spread narrowed by 0.5% from Q1 2026 as tenants were granted possession during the quarter of previously committed space, including Nations Fresh Foods at Oakville Place.
• Retention Ratio: Retention ratio remains high at 92.5% enabling efficient organic growth with minimal capital outlay.
• Operating Income: Higher rental revenue, net of rental operating costs for the Second Quarter was offset by lower residential inventory gains and lower fee income resulting in a $10.8 million decrease in the Second Quarter when compared to the same period last year.
• Commercial Same Property NOI Growth: 4.3% in the Second Quarter, continues to highlight the strength of RioCan’s core retail portfolio and success of RioCan's leasing strategy.
• Dispositions: For the six months ended June 30, 2026, the Trust completed the sale of its interests in four RioCan Living income producing properties: The Underwood Apartments, FourFifty The Well and Bellevue Phase One and Two for aggregate gross proceeds of $280.5 million. The Trust also terminated its forward purchase agreement to acquire Bellevue Phase Three. Subsequent to quarter end to August 4, 2026, the Trust entered into two conditional agreements to sell its interests in two RioCan Living income producing properties for combined estimated gross proceeds of $205.7 million.
• Total Capital Repatriation from RioCan Living - proforma⁽²⁾: $1.26 billion or 96% of the $1.3 billion (2025 to 2026) target on a cumulative basis for the eighteen months ended June 30, 2026. This includes gross proceeds of $687.1 million from the sales of 11 residential rental properties, $364.8 million of gross proceeds from residential inventory sales including RioCan's share in equity-accounted joint ventures⁽³⁾ and the $205.7 million in estimated gross proceeds from the two conditional sale agreements noted above.

Selected Financial Condition Highlights

• During the Second Quarter, the Trust repaid its $500.0 million 1.97% Series AD senior unsecured debentures in full upon maturity, drawing on its operating line of credit resulting in a decline in Liquidity from December 31, 2025. The Trust continues to maintain ample liquidity to meet its financial obligations and a large unencumbered asset pool that provides additional financial flexibility.

Conference Call and Webcast

Interested parties are invited to participate in a conference call with management on Wednesday, August 5, 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 365-657-4084 (Canada) or 1-833-461-5787 (US Toll Free) and entering the access code: 441358152.

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 June 30, 2026, our portfolio is comprised of 164 properties with an aggregate net leasable area of approximately 31 million square feet (at RioCan's interest). To learn more about us, please visit www.riocan.com.

Basis of Presentation and Non-GAAP Measures

All figures included in this News Release are expressed in Canadian dollars unless otherwise noted. RioCan’s unaudited interim condensed consolidated financial statements ("Condensed Consolidated Financial Statements") are prepared in accordance with International Financial Reporting Standards (IFRS). Financial information included within this News Release does not contain all disclosures required by IFRS, and accordingly should be read in conjunction with the Trust's Condensed Consolidated Financial Statements and MD&A for the three and six months ended June 30, 2026, which are available on RioCan's website at www.riocan.com and on SEDAR+ at www.sedarplus.com.

Consistent with RioCan’s management framework, management uses certain financial measures to assess RioCan’s financial performance, which are not in accordance with generally accepted accounting principles (GAAP) under IFRS. Core FFO, Core FFO per unit - diluted, Net Operating Income (NOI), Commercial Same Property NOI Growth, Total Capital Repatriation from RioCan Living - Proforma, Liquidity, Adjusted Spot Debt to Adjusted EBITDA, RioCan's Proportionate Share in Equity-Accounted Investments Joint Ventures, RioCan's Proportionate Share, Unencumbered Assets as well as other measures that may be discussed elsewhere in this News Release, do not have a standardized definition prescribed by IFRS and are, therefore, unlikely to be comparable to similar measures presented by other reporting issuers. RioCan supplements its IFRS measures with these Non-GAAP measures to aid in assessing the Trust’s underlying performance and reports these additional measures so that investors may do the same. Non-GAAP measures should not be considered as alternatives to net income or comparable metrics determined in accordance with IFRS as indicators of RioCan’s performance, liquidity, cash flow, and profitability. References to Consolidated Basis indicate the information is presented using IFRS basis of consolidation. For full definitions of these measures, please refer to the "Non-GAAP Measures” section in RioCan’s MD&A for the three and six months ended June 30, 2026.

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

RioCan's Proportionate Share

The following table reconciles the consolidated balance sheets from Consolidated Basis to RioCan's Proportionate Share as at June 30, 2026 and December 31, 2025:

The following tables reconcile the consolidated statements of income from Consolidated Basis to RioCan's Proportionate Share for the three and six months ended June 30, 2026 and 2025:

NOI and Same Property NOI

The following table reconciles operating income to NOI and Same Property NOI to NOI for the three and six months ended June 30, 2026 and 2025:

RioCan Real Estate Investment Trust
Investor Relations Inquiries
Email: ir@riocan.com