RioCan Announces Strong Third Quarter Results - Continuous Operational Strength with 4.6% Commercial Same Property NOI Growth and 98.4% Retail Occupancy

Core Insights - RioCan Real Estate Investment Trust reported strong operational performance for the third quarter of 2025, highlighting effective leasing strategies and alignment of rents with market conditions [2][4]. Financial Performance - New leasing spreads reached 44.1%, while blended leasing spreads were at 20.8%, indicating successful market rent growth [4]. - Commercial Same Property NOI grew by 4.6%, reflecting the strength of core retail assets [4]. - Retail occupancy stood at 98.4%, demonstrating robust demand for retail spaces [4]. - FFO per unit - diluted remained unchanged from the previous year, with strong operating performance offset by higher interest expenses and lower fee income [4]. - Net loss per unit was $0.41, a decrease of $0.73 from the same period last year, primarily due to net valuation losses of $242.8 million related to investment properties [4]. Capital Management - The Adjusted Spot Debt to Adjusted EBITDA ratio improved to 8.80x, with a ratio of unsecured to secured debt at 64% to 36% [4]. - The FFO Payout Ratio was reported at 61.0%, indicating a balanced approach to capital allocation [4]. - As of September 30, 2025, RioCan had $1.1 billion in liquidity and $9.3 billion in unencumbered assets, providing flexibility for capital optimization [4][9]. Leasing and Occupancy - Committed occupancy rates were strong at 97.8%, with retail committed occupancy at 98.4%, reflecting increases of 30 and 20 basis points from the previous quarter [4]. - The retention ratio for the third quarter was 92.7%, highlighting the importance of existing tenant relationships [4]. - A total of 1.0 million square feet of leasing activity occurred in the third quarter, including 0.8 million square feet of renewals [4]. Development and Asset Management - Year-to-date, $476.2 million of capital was repatriated through asset dispositions and condominium closings, moving towards a target of $1.3 billion to $1.4 billion for 2025-2026 [9]. - Development projects totaling approximately 202,000 square feet were completed in the third quarter, transitioning into income-producing properties [9]. ESG and Market Position - RioCan maintained its status as a Regional Sector Leader in the Americas under the Retail sector in the 2025 GRESB Real Estate Assessment, securing the 1 ranking among North American retail peers [9].