RioCan Real Estate Investment Trust (TSX: REI.UN) has posted strong results for Q3 2024, achieving a record-high retail committed occupancy of 98.6%, as high-quality, open-air assets continue to thrive in Canada’s competitive retail landscape.

Overall committed occupancy for RioCan’s portfolio reached 97.8%, a 30-basis-point sequential increase, with the Trust’s lease renewal retention ratio remaining high at 92%, the company reported in a news release.

RioCan said it celebrated its third consecutive quarter of double-digit leasing spreads, reaching 14.2% on a blended basis. The REIT reported that more than 1.28 million square feet of leases were completed, including 251,000 square feet of new leases.

Jonathan Gitlin, RioCan’s President and CEO, highlighted the Trust’s ongoing resilience in the current market: “Our expertise allows RioCan to capitalize on the favorable environment for retail real estate,” he said, adding that the team’s strategic tenant curation has enhanced both income stability and growth prospects.

The Trust backfilled all 10 large units affected by tenant failures earlier in the year, securing top-tier tenants at higher rent levels, driving an average rent increase of nearly 24% across these leases. This improvement reflects RioCan’s proactive approach to enhancing asset value and tenant quality, it said.

RioCan is one of Canada’s largest real estate investment trusts. RioCan owns, manages and develops retail-focused, mixed-use properties located in prime, high-density transit-oriented areas where Canadians want to shop, live and work. As at September 30, 2024, its portfolio was comprised of 186 properties with an aggregate net leasable area of approximately 33 million square feet.

RioCan said it also cut almost 10 per cent of its staff in October.

“The corporate restructuring is part of RioCan’s ongoing responsible cost management, enhances workflow efficiency, and optimizes resource allocation to better align with business needs.

“RioCan does not intend to commence new physical construction of mixed-use properties in 2024 and well into 2025. Development Spending on mixed-use projects, which were in progress prior to the reduction in new construction starts, is expected to be between $250 million to $300 million. Development Spending for retail in-fill projects is expected to be between $30 million to $40 million,” it said.

Oliver Harrison, Senior Vice President, Leasing & Tenant Experience at RioCan, said: “We’re very pleased with our operating results particularly within our commercial portfolio, having demonstrated in a few cases record high results whether it’s occupancy, spreads on our new leasing deals and renewals, retention ratio in the low 90%. Definitely very happy with those results.”

Harrison said the retail sector continues to be historically strong.

“I’ve been at RioCan for 25 years. I don’t think I’ve ever seen retail fundamentals as strong as they are right now. You’re seeing it in the results we’ve produced in the past few quarters. And you continue to hear it when you talk to our retail partners whether it’s grocery retailers, whether it’s value retailers, whether it’s kind of value apparel. They’re all performing well, they’re all looking to grow their store count and they’re very pleased with their performance.”

For RioCan, one of the jewels in its portfolio is The Well in downtown Toronto.

“The Well continues to perform at or in certain cases above expectations,” said Harrison. “We’re almost one year out from having opened up The Well. We’re at close to 95 per cent occupancy. We’re seeing business in the range of 180,000 to 220,000 people a week. Some really strong sales numbers coming out of the retailers at The Well by and large. And the residential component of the project of which we have a 50 per cent interest in one of the residential buildings, we started leasing it up in August of last year and I think we are either at or close to stabilization already which would be 90 per cent leased and occupied at rents that are equal to or marginally ahead of our pro forma.

“So The Well has been a very positive headline for us, looking back on one year of operation.”

Other notable highlights from the RioCan financial results included a landmark land lease agreement for a 158,000-square-foot Costco store at RioCan Centre Burloak. In addition to driving traffic and attracting complementary tenants, the addition of a service-based anchor is expected to fortify the property’s long-term appeal, said the company.

RioCan said it also maintained a strong financial position, with liquidity of $1.3 billion and an Adjusted Debt to EBITDA ratio of 9.1x. Recent financing initiatives include $1.05 billion in debt restructuring at favorable rates, positioning RioCan to navigate future growth opportunities.

These results underscore the continued demand for RioCan’s necessity-based retail centres and mixed-use developments across major Canadian markets, as the Trust looks forward to sustained momentum heading into 2025, it said.

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The Morning Show on Global Television recently unveiled a revamped set furnished by leading online retailer, Wayfair. This partnership, established for multiple months, brings stylish and functional furniture to Canada’s top-rated morning show while enhancing the visual appeal and versatility of the set. The redesign highlights various themed conversation areas, offering a welcoming environment for hosts Jeff and Carolyn as well as guests.

The partnership goes beyond simple furnishing; it brings Wayfair’s brand directly into millions of Canadian homes. Through this collaboration, Wayfair not only enhances the show’s aesthetics but also connects with viewers by showcasing a range of products they can replicate in their own spaces.

Elevating the Morning Show Experience with Wayfair Furnishings

The redesigned set incorporates multiple conversation areas that create a warm, home-like environment for segments, discussions, and interviews. At the heart of the set is a signature Morning Show desk where Jeff McArthur and Carolyn MacKenzie kick off the daily broadcast. Behind them, viewers can see sleek Wayfair stools that blend style with functionality, reflecting the modern look Wayfair is known for.

“There’s a new energy in the studio with the Wayfair setup,” noted Jordan Schwartz, Head of Morning Programming across Global. “We have areas with sofas and coffee tables, stools, a kitchen table, and even a working kitchen. These varied spaces not only look great but make it easier to transition from one segment to another. The new design lends itself perfectly to the diverse segments our show covers every day.”

The redesigned set has transformed the traditional, single-desk format into a dynamic, multi-area studio, allowing hosts and guests to move around, enhancing the viewing experience. The Wayfair-furnished spaces also bring flexibility, enabling the show to switch quickly between interviews, cooking segments, and more.

A Multi-Month Partnership with Viewer-Engagement Opportunities

The partnership between Wayfair and The Morning Show will extend over several months, with plans to incorporate viewer engagement. “Our hope is that this collaboration will continue well beyond the initial agreement,” says Schwartz. “Wayfair has brought a fresh look and functional setup to our show, and we’re excited about the possibilities moving forward. There’s even going to be a contest for our viewers later in the partnership, which is something to look forward to.”

In addition to showcasing Wayfair’s products on air, the contest will give viewers the chance to bring pieces from The Morning Show set into their own homes. This unique opportunity not only promotes viewer engagement but further strengthens the connection between Wayfair’s products and the show’s audience.

Wayfair’s Commitment to the Canadian Market

In a statement, Wayfair said: “The Morning Show recently went through a rebrand, bringing in new personalities and a fresh perspective. To align with this new direction, they needed a set that would express their updated identity. Wayfair was excited to step in as a sponsor, helping TMS curate furniture and décor pieces that truly reflect their new branding. Just as we support TMS in finding the right style to express who they are, we strive to do the same for Canadians, helping them create homes that reflect their personal style as they navigate different stages of their lives.

“We believe every Canadian deserves access to a trusted destination for all things home, so that their spaces express who they are, no matter where they live. That’s why our extensive range of styles is available from coast-to-coast, empowering everyone to easily create a home that feels just right for them. Whether it’s a new beginning, like The Morning Show’s rebrand, or a life transition, Wayfair is here to support Canadians in designing homes that truly reflect their personality and lifestyle.”

This partnership is Wayfair’s latest strategic move to expand its footprint in the Canadian market. With a set that millions of Canadians see daily, the collaboration offers high visibility and reinforces Wayfair’s reputation as a go-to destination for home furnishings.

Success Stories: Retail Brands Flourishing on The Morning Show

The Morning Show has seen increasing interest from brands eager to feature their products in front of a live Canadian audience. Retailers are finding that their products receive a direct sales boost after appearing on the show, and companies such as Joe Fresh, Specsavers, Intel, and Loblaw have all experienced success after partnering with the program. A recent example included Volkswagen Canada, which showcased the launch of their electric ID Buzz minibus, creating significant buzz in the market.

This connection between on-air exposure and consumer purchases is becoming more prominent, and The Morning Show is now sharing case studies of successful retail partnerships with potential collaborators. “The response from retailers has been overwhelmingly positive,” says Schwartz. “Companies are seeing sellouts and increased brand visibility from our audience, and the format of our show allows us to naturally incorporate these brands in a way that resonates with viewers.”

The show’s producers see this shift as a win-win, giving viewers practical information on where to find the items they see on screen. “There’s no harm in letting people know where they can buy something, as long as it aligns with our values and fits with our show’s tone,” they explained. “The feedback from both viewers and retailers has encouraged us to embrace these partnerships even more.”

Designer Shai DeLuca Adds Flair to the Set

Interior designer Shai DeLuca, known for his innovative style, was brought in to orchestrate The Morning Show’s new look using Wayfair’s products. DeLuca’s approach centers on creating warm, functional spaces that fit the needs of the show while providing a seamless backdrop for a variety of content.

“Shai understood the needs of the show perfectly and was instrumental in bringing this concept to life. The new set areas not only look stunning on screen but offer a high level of functionality. We’re grateful to have a designer who truly understands how to blend style with usability,” says Schwartz.

DeLuca’s influence is evident throughout the set, with furniture choices that balance contemporary style with practical functionality. The design includes a diverse mix of seating arrangements, coffee tables, and cozy sofas, along with a fully operational kitchen area that hosts cooking and lifestyle segments.

Strong Online Presence and Viewer Reach

In addition to its television audience, The Morning Show boasts an impressive 1.9 million YouTube subscribers, giving brands a digital platform with extended reach. This strong online presence allows The Morning Show to engage viewers who may not tune in live but still follow the program’s content online.

Wayfair’s partnership will likely benefit from this multi-channel approach, giving viewers multiple touchpoints to engage with and purchase featured products. The Morning Show team is optimistic about the ongoing collaboration, and hopes it will continue to build momentum and enhance the set’s versatility.

Looking Ahead: The Future of Retail Partnerships on The Morning Show

The Morning Show’s collaboration with Wayfair reflects a broader trend in Canadian television, where brands find value in authentic partnerships that resonate with audiences. As The Morning Show continues to lead in ratings and reach, the team expects to see more brands seeking similar opportunities.

“Our focus is on working with brands that align with our values and enhance the viewing experience,” says Schwartz. “Wayfair has been a great partner in that sense, and we’re excited about what’s to come in this partnership.”

With the blend of Wayfair’s stylish furnishings and DeLuca’s keen design eye, The Morning Show’s revamped set is more than just a facelift—it’s a platform that integrates retail and entertainment in a meaningful way, fostering a stronger connection between brands and consumers across Canada.

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As the retail industry grapples with rising returns and logistical expenses, Toronto-based Frate Returns has emerged as a disruptor, bringing an AI-driven approach to returns management that aims to streamline processes and curb costs.

Launched in 2022 by former Division One hockey player and Ivey Business School graduate Bailey Newton, the company’s CEO, Frate’s innovative software solution tackles one of the biggest pain points in retail: the rising cost and complexity of handling returns. This cutting-edge approach, which uses AI to assess returns at the customer’s location, is designed to ease burdens on retailers and enhance the customer experience.

In a recent conversation, Newton shared the inspiration behind Frate. “The idea came about in a very real, personal way,” he says, describing how he observed his mother’s shopping habits during the pandemic. “She, like so many others, was ordering multiple sizes or colours of items, knowing she’d return most of them. At one point, her home practically turned into a small warehouse. It made me realize how inefficient and costly the returns process can be for retailers.”

The Pandemic Shift: Retail Returns Surge

The pandemic fueled a surge in online shopping and, consequently, returns. A study by the National Retail Federation reported that the volume of returns increased by 16.6% in 2022, costing retailers nearly $761 billion in lost sales. Traditional return processes, in which every returned item is shipped back to a warehouse for evaluation, adds further costs and complexity.

“What we saw during the pandemic was really a shift in customer behavior,” explains Newton. “Everyone’s home became a fitting room, and with that came an enormous increase in returns. But the standard return model is costly and outdated. Warehouses are filling up with returned items that haven’t even been inspected yet, and brands are paying each time an item travels back and forth. It’s a logistics nightmare.”

Newton’s idea for Frate was to reimagine this entire process. “The goal was simple: create a solution that minimizes costs for retailers while keeping returns convenient for consumers,” he explains. To achieve this, Frate built a comprehensive returns management system, complete with a returns portal that integrates into a brand’s website and a sophisticated AI feature that assesses the condition of returned items via uploaded customer images.

A New Model: Return Quality Control at the Customer’s Doorstep

With Frate’s software, customers begin a return by entering their order number on a brand’s online return portal, selecting their reason for return, and uploading images of the item. Frate’s AI then analyzes these images, categorizing items as “perfect,” “good,” or “poor” condition, based on criteria tailored to each brand’s specifications. By allowing brands to evaluate items remotely, Frate enables more efficient handling of returns, avoiding costly warehouse inspections for high-quality items and reducing inventory holding costs.

“Bringing the quality control process upstream was a game-changer,” Newton explains. “Instead of shipping everything back to a warehouse, we’re able to route items based on their condition. Perfect condition? It can be resold to another customer, potentially without even leaving the consumer’s home. Good condition? It could go straight to a liquidation centre, bypassing traditional channels. It’s a new way to think about returns that’s both cost-effective and sustainable.”

Preventing Return Fraud and Wardrobing

Frate’s approach also addresses one of the industry’s growing issues: return fraud. A common tactic, known as “wardrobing,” occurs when customers wear items and then return them as if they’re new, expecting a full refund. This practice has been especially prevalent in fast fashion, where customers may buy multiple items, wear them once, and then return them. Frate’s image-based verification system helps detect such cases, allowing brands to make more informed return decisions.

“We’ve seen an increasing number of brands turning to Frate for this exact reason,” says Newton. “Fraudulent returns can eat away at profits, and it’s a big problem for brands who are trying to offer flexible return policies while protecting their bottom line. Our software can flag these items based on wear indicators, helping brands save on costs without negatively impacting honest customers.”

Frate’s software empowers retailers to decline returns that don’t meet quality standards. “It’s all about creating a fair process,” Newton notes. “If an item comes back in poor condition, brands now have the tools to make a justified decision. And in cases of return fraud, they’re not automatically taking the loss.”

Expanding Partnerships Across North America and Europe

Frate is already making an impact in Canada, the U.S., and the U.K., with clients that include Toronto-based brands like Peace Collective, as well as major international names like Schutz and Club L London. These brands have embraced Frate’s technology to reduce costs associated with traditional returns, allowing them to streamline operations and avoid unnecessary restocking.

“Frate is a fantastic partner,” says the CEO of Peace Collective, one of Frate’s early clients. “With their software, we’re able to make returns more efficient while focusing on reselling items that are still in top condition. The difference in our cost savings has been substantial.”

Newton explains that Frate’s appeal lies not only in its technology but also in the benefits to the bottom line. “The savings brands are seeing from this process are significant. We’re talking about reduced shipping costs, reduced storage costs, and, most importantly, better inventory management. It’s about bringing sustainability to the forefront in a way that makes sense financially.”

Future Plans and a Growing Market

Newton sees tremendous potential for Frate as retailers shift toward a more sustainable approach to returns. The company is currently exploring new features, such as expanding AI capabilities to provide even more detailed quality assessments. “We’re looking to add even more refinement to our AI model, so brands have an even clearer picture of an item’s condition,” he says. “The goal is to keep evolving and add as much value as possible.”

With returns management now representing a sizable expense for retailers, Frate’s model aligns with current retail trends toward cost efficiency and sustainable practices. A recent study by the University of Arizona found that unsold or returned inventory can cost brands anywhere from 5% to 10% of their revenue. By keeping more items in circulation and reducing the back-and-forth in shipping, Frate’s platform helps brands mitigate these costs.

In the future, Newton envisions Frate continuing to innovate in returns management, potentially expanding into other areas of retail logistics. “There’s so much we can do with this technology,” he says. “Right now, we’re focused on returns, but I see Frate evolving as a broader solution for retail logistics. Our mission is to make the entire ecosystem more efficient and customer-friendly.”

As Frate builds its reputation and expands its partnerships, Newton is optimistic about what lies ahead. “We’re just getting started,” he says. “Frate is about more than just returns; it’s about rethinking logistics and creating a more sustainable, streamlined system that benefits everyone.”

With its groundbreaking approach, Frate is poised to reshape the returns landscape, saving retailers money, reducing waste, and improving the customer experience — all while paving the way for a new era in retail logistics.

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