RioCan Real Estate Investment Trust (OTCPK:RIOC.F) 2025 Investor Day November 18, 2025 09:00 AM ET Company ParticipantsDennis Blasutti - CFOMichael Medline - President and CEOJennifer Suess - SVP, General Counsel, Head of ESG and Corporate SecretaryAndrew Duncan - CIOTerri Andrianopoulos - SVP of People and BrandGreg Hicks - President and CEOTodd Barkley - PresidentOliver Harrison - SVP of Leasing and Tenant ExperienceJonathan Gitlin - President and CEOJohn Ballantyne - COOConference Call ParticipantsNone - ...

Financial Data and Key Metrics Changes - FFO as adjusted increased by 4% year-over-year for Q3 2025, with year-to-date growth at 7% compared to the first nine months of the previous year [4] - Same property net operating income (NOI) rose by 4.7% for the quarter and 5.4% year-to-date [4] - The company raised its 2025 FFO as adjusted guidance to a new range of $1.42-$1.44 per share, representing 6% growth over 2024 at the midpoint [8][17] Business Line Data and Key Metrics Changes - Leasing activity totaled 31 deals aggregating 347,000 sq ft, including 20 renewals at a 9% spread and 11 new leases at a 61% spread [9] - Same property lease rate stands at 96.6%, a decline of 20 basis points from the previous quarter [10] - Shop occupancy rate remained flat at 92.5% [11] Market Data and Key Metrics Changes - The acquisition market remains competitive, driven by institutional capital and tighter spreads from traditional banks [7] - The company’s Boston portfolio now includes seven properties valued at nearly $500 million, representing about 10% of the company's total value [7] Company Strategy and Development Direction - The company is focused on capital recycling, having acquired nearly $600 million in high-quality shopping centers while disposing of approximately $500 million in non-core assets [7] - The active redevelopment pipeline totals $149 million with a projected yield of 15% [12] - The company aims to generate sustainable 3%+ growth in same property NOI [72] Management's Comments on Operating Environment and Future Outlook - Management expects shopping center fundamentals to remain strong due to favorable supply-demand dynamics and record low vacancy rates [8] - The company is optimistic about the leasing market, with national retailers in expansion mode and willing to pay necessary rents [14][56] - Management believes the supply-demand imbalance in retail will continue to favor their properties for the foreseeable future [68] Other Important Information - The company completed a $39 million acquisition of Brighton Mills, a grocery-anchored shopping center, funded by proceeds from the sale of other properties [4][5] - The company has a strong liquidity position of over $900 million, including $145 million in cash [16] Q&A Session Summary Question: Timeline for lease expirations at Brighton Mills - Management indicated that most leases at Brighton Mills expire in 22 years, with expected NOI growth exceeding 3% [22] Question: Breakdown of one-time items recognized in 2025 - Management highlighted about $2 million in one-time collections and $1.5 million related to CAM recovery billings as non-recurring items [24][25] Question: Opportunities at Shoppers World - Management discussed flexibility with the Kohl's parcel and potential mixed-use opportunities for redevelopment [32] Question: Rent spreads in the quarter - Management noted that the 60% rent spread was driven by unique anchor leases, with expectations for double-digit spreads going forward [34] Question: Creating more shop space in the portfolio - Management is actively studying opportunities to split anchor spaces into shop spaces, with high demand for shop tenants [40][41] Question: Acquisition environment and competition - Management acknowledged a competitive market with increased interest from institutional capital, but emphasized a disciplined approach to acquisitions [46][48] Question: Tenant demand and balance between restaurants and grocers - Management reported strong demand from both grocers and restaurants, with no significant push-pull tension between the two [56] Question: Institutional capital demand in the D.C. metro area - Management noted that while Boston and New York are more in demand, their D.C. centers are performing well [61] Question: Sustainability of high occupancy levels - Management attributed sustained high occupancy levels to a favorable supply-demand dynamic in the retail market [67]

Financial Data and Key Metrics Changes - The company reported a 17% sequential increase in Net Operating Income (NOI), driven by organic growth and acquisitions [11] - Same property NOI increased by 3.7% year-to-date and 2.6% for the third quarter, despite a 40 basis point headwind from uncollectible revenue [12][14] - The company raised its Operating Funds from Operations (OFFO) guidance to a range between $1.04 and $1.05 per share, reflecting better-than-expected operations and acquisition pacing [13] Business Line Data and Key Metrics Changes - The company signed nearly 400,000 square feet of new leases and renewals, with new lease spreads averaging over 20% and renewal spreads just under 10% [5] - Leasing volume in the third quarter hit record levels, contributing to a lease rate increase of 60 basis points to 96.7% [12] Market Data and Key Metrics Changes - The company owns a portfolio totaling 4.5 million square feet, with the total U.S. market for convenience shopping centers being 950 million square feet [8] - The company expects to invest around $750 million in acquisitions for 2025, significantly exceeding the original guidance of $500 million [10] Company Strategy and Development Direction - The company focuses on acquiring top-tier convenience retail assets, emphasizing capital efficiency and alignment with consumer behavior [5][6] - The strategy includes investing in simple, flexible buildings that support a variety of uses, driving strong tenant demand and rising rents [7] - The company aims to generate double-digit free cash flow growth for several years, supported by a strong balance sheet and disciplined acquisition strategy [9] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the growth opportunities in the fragmented convenience marketplace, highlighting the depth and liquidity of the asset class [10] - The company anticipates continued strong demand for high-quality convenience shopping centers, with a focus on maintaining a diversified tenant base [8][9] Other Important Information - The company closed a $150 million term loan and a $150 million private placement bond offering, bringing total debt capital raised to $400 million at a weighted average rate of 5% [17] - The company expects to end the year with over $250 million in cash and a net debt to EBITDA ratio of less than one time, providing substantial liquidity for future acquisitions [18] Q&A Session Summary Question: How is the company thinking about equity given the strong balance sheet? - Management indicated that they have instituted an ATM program and a share buyback, considering equity only if it is accretive for capital use [21] Question: What is the stabilized yield on recent lease-up acquisitions? - The company noted that the going-in cap rate was slightly higher than the previous quarter, blending to the low 6% range, with expectations for market rents to continue growing [22] Question: What is the acquisition pipeline looking like heading into 2026? - Management stated that the amount of inventory being underwritten is increasing, with a confident outlook for $750 million in acquisitions for 2025 and potential upside [25][28] Question: How sensitive is the competition to changes in interest rates? - Management noted that competition is impacted by rates, with many competitors being levered buyers, while the company remains a cash buyer, making it a desirable counterparty [64]

Financial Data and Key Metrics Changes - The company reported same property NOI growth exceeding 7%, with base rent contributing 4.5% [10][19] - Full year growth outlook for same property NOI, core operating earnings, and NAREIT FFO has been raised due to strong performance [8][19] - NAREIT FFO range increased by $0.06 per share at the midpoint, representing full year growth of more than 7% [19][21] Business Line Data and Key Metrics Changes - The company achieved record low shop move outs and sustained robust leasing activity with strong rent growth [6][10] - Cash rent spreads of 10% and GAAP rent spreads of nearly 20% were achieved for both new and renewal leasing [11][19] - The S and O pipeline represents $38 million of incremental base rent, with a lease to commenced occupancy spread of 260 basis points [11][12] Market Data and Key Metrics Changes - The company successfully acquired five shopping centers in South Orange County, California for $357 million, enhancing its presence in a supply-constrained market [6][14] - The acquisition portfolio is 97% leased and includes over 600,000 square feet of high-quality retail GLA [13][14] Company Strategy and Development Direction - The company is focused on high-quality grocery-anchored shopping centers in desirable suburban trade areas, emphasizing essential retail offerings [9][10] - The ongoing commitment to corporate responsibility is highlighted as a foundational strategy [7] - The company plans to continue capitalizing on persistent demand for its shopping centers and is optimistic about future growth opportunities [12][19] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the operating fundamentals and the ability to sustain growth into 2026 and beyond [9][19] - The company is raising its earnings guidance based on strong first-half performance and greater conviction about the remainder of the year [18][19] - Management noted that the current year lease commencements are largely derisked, allowing for continued growth momentum [12][19] Other Important Information - The company has a strong balance sheet with low leverage and dependable access to low-cost capital, enabling it to pursue strategic growth opportunities [9][21] - The company has successfully executed a $400 million bond offering, demonstrating a clear cost of capital advantage [21] Q&A Session Summary Question: Contribution from various components into the second half for same store NOI cadence - Management indicated that base rent will continue to be the largest contributor, but there may be a slight increase in uncollectible lease income in the second half [24][26] Question: Shift away from occupancy into other components of same property NOI growth - Management confirmed that while peak leased occupancy is being reached, there is still room for growth in commenced occupancy, which will positively impact NOI [31][34] Question: State property NOI growth algorithm and contractual rent steps - Management highlighted that redevelopments are expected to positively impact same property NOI growth, with continued strong contractual rent steps [32][34] Question: Health of tenants and turnover rates - Management reported strong tenant health with a retention rate of about 77%, attributing this to supply constraints and productive stores [76][78] Question: Credit loss assumptions for 2025 - Management narrowed the credit loss guidance due to increased clarity on bankruptcy outcomes, indicating a positive outlook for tenant health [85][86] Question: Development opportunities and retailer discussions - Management confirmed ongoing discussions with national retailers about new developments, with a bullish outlook on finding attractive opportunities [48][49] Question: Future acquisition strategies and portfolio cap rates - Management noted that there is strong demand for grocery-anchored assets, with cap rates remaining stable in the low fives to low sixes [71][72]