RioCan REIT announces 98.4% retail occupancy in Q3 reflecting strong demand

RioCan Real Estate Investment Trust announced Thursday its financial results for the three and nine months ended September 30, 2025, its retail occupancy of 98.4% reflects strong demand in the market.

“This was an exceptional quarter operationally, highlighting the momentum generated by RioCan’s platform, processes, and people. Our leasing strategies continue to fuel organic growth. We are aligning rents with market conditions and retain high-calibre retail tenants who serve Canadians’ daily shopping needs,” said Jonathan Gitlin, President and CEO of RioCan.

“As we simplify our business, we free up capital that will be reinvested in our core retail portfolio, amplifying growth now and in the future.”

As at September 30, 2025, its portfolio was comprised of 173 properties with an aggregate net leasable area of approximately 32 million square feet (at RioCan’s interest).

FINANCIAL HIGHLIGHTS

• Occupancy: RioCan’s committed occupancy and retail committed occupancy were strong at 97.8% and 98.4%, increasing by 30 and 20 basis points from the previous quarter, respectively.
• Retention Ratio: Retention ratio of 92.7% for the Third Quarter demonstrates the importance of existing space to tenants.
• Leasing Progress: 1.0 million square feet of leasing activity in the Third Quarter, including 0.8 million square feet of renewals.
• Leasing Spreads: Third Quarter blended leasing spread of 20.8% included a new leasing spread of 44.1% and a renewal leasing spread of 15.2%. RioCan continued to capitalize on mark-to-market opportunities, achieving an average blended leasing spread of 27.6% on new and renewed leases done at current market rates. 52% of renewals were at current market rates.
• Average Net Rent Per Square Foot: Average net rent per square foot for new leases for the nine months ended September 30, 2025 was $29.58, a 28.9% premium compared to average net rent per occupied square foot of $22.94 at quarter end.
• Same Property NOI: Commercial Same Property NOI  growth was 4.6% in the Third Quarter, reflects the benefits of 2024 and 2025 leasing activity.
• Adjusted G&A Expense as a percentage of rental revenue: Improved to 3.7% on a year-to-date basis, down from 4.1% in the comparable prior year period.
• Capital Recycling: As of November 6, 2025, closed and conditional dispositions totalled $349.9 million, aligning with IFRS values. For the nine months ended September 30, 2025, $310.1 million of asset dispositions were completed including the sale of 50% interests in five RioCan Living properties.
• During the quarter, residential condominium closings at 11YV continued, resulting in full repayment of the construction loan and a $10.8 million reduction in RioCan’s debt compared to Q2 2025. This repayment decreased the associated outstanding guarantees by $75.9 million and $322.9 million when compared to Q2 2025 and Q4 2024, respectively. Year-to date $127.7 million of construction loans have been repaid . A total of 1,056 units (at 100% ownership), across U.C.Tower 2, U.C.Tower 3, 11YV, Queen & Ashbridge and Verge have been closed on a year-to-date basis.
• Year-to-date, $476.2 million of capital was repatriated through asset dispositions and final condominium closings, advancing toward the $1.3 billion to $1.4 billion target for 2025 – 2026.

• Development Completions: During the three and nine months ended September 30, 2025, development projects totaling approximately 202,000 and 247,000 square feet, respectively, were completed and transitioned into income producing properties. This includes 165,000 and 186,000 square feet of mixed-use projects comprised of residential rental and retail units and 37,000 and 61,000 square feet of commercial retail projects, respectively.
• Balance Sheet and Liquidity: As of September 30, 2025, the Adjusted Spot Debt to Adjusted EBITDA ratio improved to 8.80x from 9.12x at the end of 2024, within RioCan’s target range of 8.0x – 9.0x. The Trust has $1.1 billion of Liquidity to meet its financial obligations, including $1.0 billion from its revolving unsecured operating line of credit.
• The Trust’s unencumbered asset pool increased to $9.3 billion at the end of the Third Quarter from $8.2 billion at the end of 2024.
• As of September 30, 2025, the Ratio of Unsecured Debt to Total Contractual Debt increased to 64% from 56%, compared to the end of 2024 and on a proportionate share basis.
• Subsequent to quarter end, 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 our operating line of credit, improving the Trust’s Liquidity and reducing the amount of floating rate debt outstanding.

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