RioCan Real Estate Investment Trust announced Tuesday its financial and operating results for the three and six months ended June 30, 2026, indicating retail committed occupancy rose to 98.8%, which “reflects sustained demand in a supply-constrained environment.
The REIT said net income per unit – diluted increased by 6.1%; Core FFO per unit – diluted increased by 5.3% and its 23.1% blended leasing spread “highlights the Trust’s ability to unlock embedded mark-to-market opportunities.”
Net income rose to $151.2 million in the quarter from $145.6 million a year ago. After six months this year, net income was $244.4 million compared to $61.5 million last year.
“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.”
The Trust noted the following highlights from its financial report:
- 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 offsetbylower 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: $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 and the $205.7 million in estimated gross proceeds from the two conditional sale agreements noted above.
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