Q4 2025 RioCan Real Estate Investment Trust Earnings Call

February 18, 2026

Speaker #1: A reminder, this conference call is being recorded. I would like to turn the conference over to Ms. Jennifer Suess, Senior Vice President General Counsel ESG and Corporate Secretary.

Speaker #1: Ms. Suess, you may begin.

Speaker #2: Thank you, and good morning, everyone. I am Jennifer Suess, Senior Vice President General Counsel ESG and Corporate Secretary of RIOCAN. Before we begin, I am required to read the following cautionary statement: In talking about our financial and operating performance, and in responding to your questions, we may make forward-looking statements including statements concerning RIOCAN's objectives, its strategies to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance, or expectations that are not historical facts.

Speaker #2: These statements are based on our current estimates and assumptions, and are subject to risks and uncertainties that could cause our actual results to differ materially from the conclusions in these forward-looking statements.

Speaker #2: In discussing our financial and operating performance, and in responding to your questions, we will also be referencing certain financial measures that are not generally accepted accounting principle measures, GAAP under IFRS.

Speaker #2: These measures do not have any standardized definition prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other reporting issuers.

Speaker #1: We continue to balance our sheet and support NCIB activity. Net debt to EBITDA was reduced to 8.6 times, and we repurchased $179 million of units through 2025 and year-to-date 2026.

Speaker #2: Non-GAAP measures should not be considered as alternatives to net earnings or comparable metrics determined in accordance with IFRS, as indicators of RIOCAN's performance, liquidity, cash flows, and profitability.

Speaker #1: Our NCIB activity reflects our conviction that the current unit price does not capture the value and earnings power of our business. We're investing in a portfolio with tremendous growth prospects.

Speaker #2: RIOCAN's management uses these measures to aid in assessing the trust's underlying core performance, and provides these additional measures so that investors may do the same.

Speaker #2: Additional information on the material risks that could impact our actual results, and the estimates and assumptions we applied in making these forward-looking statements, together with details on our use of non-GAAP financial measures, can be found in the financial statements filed yesterday and management's discussion and analysis related there too as applicable, together with RIOCAN's most recent annual information form that are all available on our website and at www.cdrplus.com.

Speaker #1: Our performance is underpinned by a proven future-focused platform. We continue to strengthen our operational and technological capabilities while maintaining top-tier employee engagement results even as we further reduce G&A.

Speaker #1: RioCan's disciplined execution is complemented by strong ESG performance, including our number one ranking among North American retail peers in the 2025 RESB real estate assessment.

Speaker #2: I will now turn the call over to RIOCAN's President and CEO, Jonathan Gitlin.

Speaker #1: Taken together, our results reflect the power of our productive retail core, the quality of our assets, and a platform that delivers consistent performance. In a market characterized by a shortage of well-located retail space, RioCan continues to deliver consistent and durable growth.

Speaker #3: Thank you, Jennifer, and good morning to everyone joining us today. We're pleased to report RIOCAN's fourth quarter and full-year results. At our 2025 investor day, we were clear about our priorities: driving growth through our productive retail core, and supporting that growth through discipline, strategic capital allocation.

Speaker #1: RioCan's operating momentum remains strong through the fourth quarter. Retail committed occupancy ended the year at 98.5%. Leasing performance continued to be exceptional, with record full-year blended leasing spreads of 21.1%.

Speaker #3: We're delivering on those commitments. In the fourth quarter, the strength of RIOCAN's portfolio and the effectiveness of our retail-focused strategy were once again demonstrated by $4.5% same-property NOI growth.

Speaker #3: This was propelled by the continued outperformance of our core retail assets. We delivered on our capital allocation priorities. We pay trading $742 million of capital to strengthen the balance sheet and support NCIB activity.

Speaker #1: Our 2025 retention ratio of 93.1% underscores the value tenants place on RioCan’s locations and its operating capabilities. It also enables us to enhance income quality, improve portfolio resilience, and minimize capital outlay.

Speaker #3: Net debt to EBITDA was reduced to 8.6 times, and we repurchased $179 million of units through 2025 and year-to-date 2026. Our NCIB activity reflects our conviction that the current unit price does not capture the value and earnings power of our business.

Speaker #1: Commercial same property NOI growth accelerated to 4.5% in the fourth quarter and totaled 3.6% for the full year highlighting the consistency and resilience of our cash flows.

Speaker #1: These results are not coincidental. They are the direct outcome of a portfolio concentrated in Canada's largest and most desirable markets anchored by necessity-based retailers and supported by structurally constrained new supply.

Speaker #3: We're investing in a portfolio with tremendous growth prospects. Our performance is underpinned by a proven future-focused platform. We continue to strengthen our operational and technological capabilities while maintaining top-tier employee engagement results even as we further reduced G&A.

Speaker #1: We're seeing the benefits of what we believe is a leasing super cycle for our portfolio. This is a time when many long-term leases that were signed in the early 2000s are expiring.

Speaker #3: RIOCAN's disciplined execution is complemented by strong ESG performance, including our number one ranking among North American retail peers in the 2025 Gresby Real Estate Assessment.

Jonathan Gitlin: balance sheet and support NCIB activity. Net debt to EBITDA was reduced to 8.6 times, and we repurchased CAD 179 million of units through 2025 and year-to-date 2026. Our NCIB activity reflects our conviction that the current unit price does not capture the value and earnings power of our business. We're investing in a portfolio with tremendous growth prospects. Our performance is underpinned by a proven future-focused platform. We continue to strengthen our operational and technological capabilities while maintaining top-tier employee engagement results, even as we further reduced G&A. RioCan's disciplined execution is complemented by strong ESG performance, including our No. 1 ranking among North American retail peers in the 2025 GRESB Real Estate Assessment. Taken together, our results reflect the power of our productive retail core, the quality of our assets, and a platform that delivers consistent performance.

Jonathan Gitlin: balance sheet and support NCIB activity. Net debt to EBITDA was reduced to 8.6x, and we repurchased CAD 179 million of units through 2025 and year-to-date 2026. Our NCIB activity reflects our conviction that the current unit price does not capture the value and earnings power of our business. We're investing in a portfolio with tremendous growth prospects. Our performance is underpinned by a proven future-focused platform. We continue to strengthen our operational and technological capabilities while maintaining top-tier employee engagement results, even as we further reduced G&A. RioCan's disciplined execution is complemented by strong ESG performance, including our No. 1 ranking among North American retail peers in the 2025 GRESB Real Estate Assessment. Taken together, our results reflect the power of our productive retail core, the quality of our assets, and a platform that delivers consistent performance.

Speaker #1: Shorter-term leases negotiated during the pandemic are also maturing. This gives us flexibility and discretion to shape our tenant base. We're retaining and resetting rents for high-quality tenants.

Speaker #3: Taken together, our results reflect the power of our productive retail core, the quality of our assets, and a platform that delivers consistent performance. In a market characterized by a shortage of well-located retail space, RIOCAN continues to deliver consistent, endurable growth.

Speaker #1: We're equally deliberate in replacing those tenants that no longer align with our strategic objectives. Now, RIOCAN is an independent Canadian REIT. Our independence means we are accountable solely to our unit holders with no parent company or sponsoring owner influencing our leasing or operational decisions.

Speaker #3: RIOCAN's operating momentum remains strong through the fourth quarter. Retail committed occupancy end of the year at 98.5%. Leasing performance continued to be exceptional with record full-year blended leasing spreads of 21.1%.

Speaker #1: This independence, combined with strong retailer demand and the depth and expertise of our leasing team, puts us in the advantageous position of being highly selective.

Speaker #1: We can choose the right tenants on the right terms. Premium retail space in Canada's major markets is scarce, and, in my opinion, given the high barriers to entry in the Canadian market, this will be an enduring condition.

Speaker #3: Our 2025 retention ratio of 93.1% underscores the value tenants place on RIOCAN's locations, and its operating capabilities. It also enables us to enhance income quality and improve portfolio resilience, while minimizing capital outlay.

Speaker #1: Retailers are focused on well-located centers with strong demographic attributes and compelling co-tenancies. This precisely describes the centers in RIOCAN's portfolio. In recent years, we introduced grocery to a significant number of assets.

Jonathan Gitlin: In a market characterized by a shortage of well-located retail space, RioCan continues to deliver consistent and durable growth. RioCan's operating momentum remains strong through Q4. Retail committed occupancy end of the year at 98.5%. Leasing performance continued to be exceptional, with record full-year blended leasing spreads of 21.1%. Our 2025 retention ratio of 93.1% underscores the value tenants place on RioCan's locations and its operating capabilities. It also enables us to enhance income quality, improve portfolio resilience, while minimizing capital outlay. Commercial same-property NOI growth accelerated to 4.5% in Q4 and totaled 3.6% for the full year, highlighting the consistency and resilience of our cash flows. These results are not coincidental.

Speaker #3: Commercial same-property NOI growth accelerated to 4.5% in the fourth quarter, and total 3.6% for the full year highlighting the consistency and resilience of our cash flows.

Speaker #3: These results are not coincidental. They are the direct outcome of a portfolio concentrated in Canada's largest and most desirable markets, anchored by necessity-based retailers and supported by structurally constrained new supply.

Speaker #1: Today, 86% of our sites include a grocery component. This anchors daily traffic and supports consistent performance through all market cycles. Beyond grocery, we're deliberately curating the ideal tenant mix for the communities that we serve.

Speaker #3: We're seeing the benefits of what we believe is a leasing supercycle for our portfolio. This is a time when many long-term leases that were signed in the early 2000s are expiring.

Speaker #1: We know these communities well, and we understand the daily needs of their residents. As a result, the vast majority of our portfolio is aligned with necessity-based daily uses, including retailers such as Loblaws, Metro, Sobeys, Shoppers Drug Mart, and Dollarama.

Speaker #3: Shorter-term leases negotiated during the pandemic are also maturing. This gives us flexibility and discretion to shape our tenant base. We're retaining and resetting rents for high-quality tenants.

Speaker #1: These are the retailers that fulfill essential everyday shopping needs and drive reliable, repeat visits. These attributes create daily-use destinations that generate consistent traffic, strong sales productivity, and resilient income through all market cycles.

Speaker #3: We're equally deliberate in replacing those tenants that no longer align with our strategic objectives. Now, RIOCAN is an independent Canadian REIT. Our independence means we are accountable solely to our unit holders, with no parent company or sponsoring owner influencing our leasing or operational decisions.

Jonathan Gitlin: They are the direct outcome of a portfolio concentrated in Canada's largest and most desirable markets, anchored by necessity-based retailers and supported by structurally constrained new supply. We're seeing the benefits of what we believe is a leasing super cycle for our portfolio. This is a time when many long-term leases that were signed in the early 2000s are expiring. Shorter-term leases negotiated during the pandemic are also maturing. This gives us flexibility and discretion to shape our tenant base. We're retaining and resetting rents for high-quality tenants. We're equally deliberate in replacing those tenants that no longer align with our strategic objectives. Now, RioCan is an independent Canadian REIT. Our independence means we are accountable solely to our unit holders, with no parent company or sponsoring owner influencing our leasing or operational decisions.

Speaker #1: Our tenants are not simply maintaining their footprints; they're actively investing and expanding. This sustained demand continues to validate the long-term strength of our retail platform.

Speaker #3: This independence, combined with strong retailer demand and the depth and expertise of our leasing team, puts us in the advantageous position of being highly selective.

Speaker #1: Our leasing strategy continues to unlock meaningful mark-to-market opportunities throughout our portfolio. In 2025, we completed leases for 5 million square feet. The average net rent for new leases was about $29.65 per square foot, which is approximately 28% higher than our overall average rent.

Speaker #3: We can choose the right tenants, on the right terms. Premium retail space in Canada's major markets is scarce, and in my opinion, given the high barriers to entry in the Canadian market, this will be an enduring condition.

Speaker #1: This highlights the mark-to-market growth potential embedded in RioCan's portfolio. This result isn't a one-off. Rents on new leases since 2022 were, on average, about 27% above those of existing leases.

Speaker #3: Retailers are focused on well-located centers with strong demographic attributes and compelling co-tenancies. This precisely describes the centers in RIOCAN's portfolio. In recent years, we introduced grocery to a significant number of assets.

Speaker #1: We expect this trend to continue for at least the next three years. During this period, we have 10.1 million square feet of leases maturing, hence my reference to a leasing super cycle.

Speaker #3: Today, 86% of our sites include a grocery component. This anchors daily traffic and supports consistent performance through all market cycles. Beyond grocery, we're deliberately curating the ideal tenant mix for the communities that we serve.

Jonathan Gitlin: This independence, combined with strong retailer demand and the depth and expertise of our leasing team, puts us in the advantageous position of being highly selective. We can choose the right tenants on the right terms. Premium retail space in Canada's major markets is scarce, and in my opinion, given the high barriers to entry in the Canadian market, this will be an enduring condition. Retailers are focused on well-located centers with strong demographic attributes and compelling co-tenancies. This precisely describes the centers in RioCan's portfolio. In recent years, we introduced grocery to a significant number of assets. Today, 86% of our sites include a grocery component. This anchors daily traffic and supports consistent performance through all market cycles. Beyond grocery, we're deliberately curating the ideal tenant mix for the communities that we serve. We know these communities well, and we understand the daily needs of their residents.

Speaker #1: Combined with contractual rent steps and disciplined capital deployment, there is a clear and sustainable runway for continued core FFO growth. As we move into 2026, our business is simpler, focused, and exceptionally well-positioned to capitalize on favorable retail fundamentals and the significant embedded mark-to-market opportunity within our portfolio.

Speaker #3: We know these communities well, and we understand the daily needs of their residents. As a result, the vast majority of our portfolio is aligned with necessity-based daily uses, including retailers such as Loblaws, Metro, Sobe's, Shoppers Drug Mart, and Dollarama.

Speaker #1: Our leasing momentum, together with long-term contractual rent steps and disciplined capital deployment into high-return retail opportunities, flows directly into the durability and predictability captured in our core FFO.

Speaker #3: These are the retailers that fulfill essential, everyday shopping needs and drive reliable repeat visits. These attributes create daily use destinations that generate consistent traffic, strong sales productivity, and resilient income through all market cycles.

Speaker #1: Core FFO provides a clear measure of the durable earnings power of our retail platform. It represents an important evolution in how we reflect the performance of our business.

Speaker #3: Our tenants are not simply maintaining their footprints; they're actively investing and expanding. This sustained demand continues to validate the long-term strength of our retail platform.

Speaker #1: Core FFO captures the recurring earnings generated through leasing execution and disciplined capital deployment, while removing items that are not representative of the underlying operating strength of the portfolio.

Speaker #3: Our leasing strategy continues to unlock meaningful mark-to-market opportunities throughout our portfolio. In 2025, we completed leases for 5 million square feet. The average net rent for new leases was about $29.65 per square foot, which is approximately $28% higher than our overall average rent.

Jonathan Gitlin: As a result, the vast majority of our portfolio is aligned with necessity-based daily uses, including retailers such as Loblaws, Metro, Sobeys, Shoppers Drug Mart, and Dollarama. These are the retailers that fulfill essential everyday shopping needs and drive reliable repeat visits. These attributes create daily use destinations that generate consistent traffic, strong sales productivity, and resilient income through all market cycles. Our tenants are not simply maintaining their footprints; they're actively investing and expanding. This sustained demand continues to validate the long-term strength of our retail platform. Our leasing strategy continues to unlock meaningful mark-to-market opportunities throughout our portfolio. In 2025, we completed leases for 5 million sq ft. The average net rent for new leases was about CAD 29.65 per sq ft, which is approximately 28% higher than our overall average rent. This highlights the mark-to-market growth potential embedded in RioCan's portfolio.

Speaker #1: Because it is driven primarily by occupied space, contractual rents, and the intentional allocation of capital to high-return uses, core FFO provides a clear line of sight into the stability and predictability of our income.

Speaker #3: This highlights the mark-to-market growth potential embedded in RIOCAN's portfolio. This result isn't a one-off. Rents on new leases since 2022 were, on average, about $27% above those of existing leases.

Speaker #1: As we look ahead to 2026, we're guiding to same property NOI growth of 3.5% to 4%, and core FFO of $1.60 to $1.62 per unit.

Speaker #1: This core FFO guidance is in line with the three-year outlook we provided at Investor Day. In many ways, core FFO best captures what differentiates RioCan today.

Speaker #3: We expect this trend to continue for at least the next three years. During this period, we have 10.1 million square feet of leases maturing, hence my reference to a leasing supercycle.

Speaker #1: A high-quality, necessity-based retail portfolio operating in supply-constrained markets where leasing momentum and disciplined capital allocation work together to provide consistent, repeatable results and high-risk-adjusted returns.

Speaker #3: Combined with contractual rent steps and disciplined capital deployment, there is a clear and sustainable runway for continued core FFO growth. As we move into 2026, our business is simpler, focused, and exceptionally well-positioned to capitalize on favorable retail fundamentals and the significant embedded mark-to-market opportunity within our portfolio.

Speaker #1: Our outlook reflects confidence in our ability to deliver resilient income, sustainable distributions, and long-term value creation. This quarter's performance is not an outlier. It is another clear validation of the strength of our portfolio and our strategy.

Speaker #3: Our leasing momentum together with long-term contractual rent steps and disciplined capital deployment into the high-return retail opportunities flows directly into the durability and predictability, captured in our core FFO.

Jonathan Gitlin: This result isn't a one-off. Rents on new leases since 2022 were, on average, about 27% above those of existing leases. We expect this trend to continue for at least the next three years. During this period, we have 10.1 million sq ft of leases maturing, hence my reference to a leasing super cycle, combined with contractual rent steps and disciplined capital deployment, there is a clear and sustainable runway for continued core FFO growth. As we move into 2026, our business is simpler, focused, and exceptionally well-positioned to capitalize on favorable retail fundamentals and the significant embedded mark-to-market opportunity within our portfolio. Our leasing momentum, together with long-term contractual rent steps and disciplined capital deployment into the high-return retail opportunities, flows directly into the durability and predictability captured in our core FFO.

Speaker #1: In closing, RioCan enters 2026 with considerable momentum, an exceptional portfolio, and a disciplined strategy that consistently generates results. We're in the midst of a multi-year value creation phase underpinned by visible and sustained growth that we believe is not fully reflected in RioCan's current unit price valuation.

Speaker #3: Core FFO provides a clear measure of the durable earnings power of our retail platform. It represents an important evolution in how we reflect the performance of our business.

Speaker #3: Core FFO captures the recurring earnings generated through leasing execution and disciplined capital deployment, while removing items that are not representative of the underlying operating strength of the portfolio.

Speaker #1: Our team remains highly focused, our capital is positioned to drive ongoing growth, and our portfolio is well aligned with the evolving needs of retailers and communities.

Speaker #3: Because it is driven primarily by occupied space, contractual rents, and the intentional allocation of capital to high-return uses, core FFO provides a clear line of predictability of our income.

Speaker #1: Thank you for your continued trust and support, and I will hand the call over to Dennis Blasutti and then look forward to your questions.

Speaker #2: Thank you, Jonathan, and good morning to everyone on the call. I'll start with some additional detail on our 2025 results, and then I'll walk through our 2026 outlook.

Speaker #3: As we look ahead to 2026, we're guiding the same property NOI growth of 3.5 to 4%, and core FFO of $1.60 to $1.62 per unit.

Speaker #2: Starting with FFO, we delivered $1.87 per unit in 2025, near the high end of our guidance range. This performance was underpinned by same property NOI growth of 3.6%, slightly ahead of guidance, reflecting continued strength in our retail-focused strategy.

Jonathan Gitlin: Core FFO provides a clear measure of the durable earnings power of our retail platform. It represents an important evolution in how we reflect the performance of our business. Core FFO captures the recurring earnings generated through leasing execution and disciplined capital deployment, while removing items that are not representative of the underlying operating strength of the portfolio. Because it is driven primarily by occupied space, contractual rents, and the intentional allocation of capital to high-return uses, Core FFO provides a clear line of sight into the stability and predictability of our income. As we look ahead to 2026, we're guiding to same-property NOI growth of 3.5% to 4%, and Core FFO of CAD 1.60 to 1.62 per unit. This Core FFO guidance is in line with the three-year outlook we provided at Investor Day.

Speaker #3: This core FFO guidance is in line with the three-year outlook we provided at Investor Day. In many ways, core FFO best captures what differentiates RIOCAN today.

Speaker #2: Record operating KPIs such as 21.1% blended leasing spreads were key drivers. This strong organic growth excludes one-time items such as lease termination fees and highlights the strength of our team and portfolio.

Speaker #3: A high-quality, necessity-based retail portfolio operating in supply-constrained markets where leasing momentum and disciplined capital allocation work together to provide consistent, repeatable results and high-risk-adjusted returns.

Speaker #2: Core FFO for the year was $1.55 per unit, in line with our Investor Day projections. We view core FFO as a durable earnings base that we will grow from, compounding value as our income grows.

Speaker #3: Our outlook reflects confidence in our ability to deliver resilient income, sustainable distributions, and long-term value creation. This quarter's performance is not an outlier. It is another clear validation of the strength of our portfolio and our strategy.

Speaker #2: We have reached the natural conclusion of our development cycle, with several key projects now complete, so the capital intensity of our business is moderating. Total development spend in 2025 came in at $254 million, and we expect this to significantly decline next year, which I will touch on later.

Speaker #3: In closing, RIOCAN enters 2026 with considerable momentum and exceptional portfolio and a disciplined strategy that consistently generates results. We're in the midst of a multi-year value creation phase underpinned by visible and sustained growth that we believe is not fully reflected in RIOCAN's current unit price valuation.

Speaker #2: During the year, we delivered $366,000 square feet of completed developments from PUD to IPP, this included 102,000 square feet of retail. These deliveries included finalization of the well, parks and crossings, new winners in Homesense, and Megacentra Notre Dame's Dollarama and Service Canada.

Jonathan Gitlin: In many ways, Core FFO best captures what differentiates RioCan today. A high-quality, necessity-based retail portfolio, operating in supply-constrained markets, where leasing momentum and disciplined capital allocation work together to provide consistent, repeatable results and high risk-adjusted returns. Our outlook reflects confidence in our ability to deliver resilient income, sustainable distributions, and long-term value creation. This quarter's performance is not an outlier. It is another clear validation of the strength of our portfolio and our strategy. In closing, RioCan enters 2026 with considerable momentum, an exceptional portfolio, and a disciplined strategy that consistently generates results. We're in the midst of a multiyear value creation phase, underpinned by visible and sustained growth that we believe is not fully reflected in RioCan's current unit price valuation.

Speaker #2: As well as residential projects such as 4th Street Lofts and Queen Astridge. We also made strong progress on capital recycling. We sold 406.6 million dollars of RIOCAN living assets and closed 221.7 million dollars of condos, for a total of 628.3 million.

Speaker #3: Our team remains highly focused, our capital is positioned to drive ongoing growth, and our portfolio is well aligned with the evolving needs of retailers and communities.

Speaker #3: Thank you for your continued trust and support, and I will hand the call over to Dennis Blasutti and then look forward to your questions.

Speaker #2: Subsequent to year-end, we also went firm on the disposition of our Underwood residential building in Calgary, for $46.5 million. Taken together, we are halfway towards our $1.3 to $1.4 billion target, with a number of other assets in negotiations.

Speaker #1: Thank you, Jonathan, and good morning to everyone on the call. I'll start with some additional detail on our 2025 results, and then I'll walk through our 2026 outlook.

Speaker #1: Starting with FFO, we delivered $1.87 per unit in 2025, near the high end of our guidance range. This performance was underpinned by same property NOI growth of 3.6%, slightly ahead of guidance, reflecting continued strength in our retail-focused strategy.

Speaker #2: Through successful condo closings, we have reduced our residual condo balance to 130 million dollars, which is immaterial in the context of RIOCAN's balance sheet.

Speaker #2: In addition, we sold $113.4 million of non-core and lower-growth commercial assets, bringing the total capital repatriation to $788.2 million. Through this disciplined capital recycling program, we continue to improve our portfolio quality while funding growth and improving our balance sheet.

Speaker #1: Record operating KPIs such as 21.1% blended leasing spreads were key drivers. This strong organic growth excludes one-time items such as lease termination fees and highlights the strength of our team and portfolio.

Jonathan Gitlin: Our team remains highly focused, our capital is positioned to drive ongoing growth, and our portfolio is well aligned with the evolving needs of retailers and communities. Thank you for your continued trust and support, and I will hand the call over to Dennis Blasutti, and then look forward to your questions.

Speaker #1: Core FFO for the year was $1.55 per unit, in line with our Investor Day projections. We view core FFO as a durable earnings base that we will grow from, compounding value as our income grows.

Speaker #2: We allocated much of this capital to debt reduction and unit repurchases. As a result, net debt to EBITDA improved to 8.6 times, a half-turn improvement from the 9.1 times at the end of last year, and well within our target range.

Dennis Blasutti: Thank you, Jonathan, and good morning to everyone on the call. I'll start with some additional detail on our 2025 results, and then I'll walk through our 2026 outlook. Starting with FFO, we delivered CAD 1.87 per unit in 2025, near the high end of our guidance range. This performance was underpinned by same-property NOI growth of 3.6%, slightly ahead of guidance, reflecting continued strength in our retail-focused strategy. Record operating KPIs, such as 21.1% blended leasing spreads, were key drivers. This strong organic growth excludes one-time items, such as lease termination fees, and highlights the strength of our team and portfolio. Core FFO for the year was CAD 1.55 per unit, in line with our Investor Day projections. We view core FFO as a durable earnings base that we will grow from, compounding value as our income grows.

Speaker #1: We have reached the natural conclusion of our development cycle, with several key projects now complete to capital intensity of our business is moderating. Total development spend in 2025 came in at $254 million, and we expect this to significantly decline next year, which I will touch on later.

Speaker #2: Our balance sheet is in a strong position, supported by a suite of improved credit metrics. We ended the year with $1.5 billion of liquidity. Our ratio of unsecured debt to total debt improved to 63% from 56% last year, which, as a result, increased our unencumbered asset pool by $1 billion to $9.2 billion.

Speaker #1: During the year, we delivered 366,000 square feet of completed developments from PUD to IPP, this included 102,000 square feet of retail. These deliveries included finalization of the well, parks and crossings, new winners and home cents, and megacentral Notre Dame's Dollarama and Service Canada.

Speaker #2: We continue to view unit repurchases as an attractive use of capital, particularly when our units trade at a significant discount to our historical norms.

Speaker #1: As well as residential projects such as 4th Street Lofts and Queen Astridge. We also made strong progress on capital recycling. We sold 406.6 million dollars of RIOCAN living assets and closed 221.7 million dollars of condos, for a total of 628.3 million.

Speaker #2: At current prices, our units imply a forward multiple of approximately 12 times using 2026 core FFO, representing a 20% discount to our long-term historical average of 15 times.

Dennis Blasutti: We have reached the natural conclusion of our development cycle. With several key projects now complete, the capital intensity of our business is moderating. Total development spend in 2025 came in at CAD 254 million, and we expect this to significantly decline next year, which I will touch on later. During the year, we delivered 366,000 sq ft of completed developments from POD to IPP. This included 102,000 sq ft of retail. These deliveries included finalization of The Well, Sparks, and The Crossings, new Winners and HomeSense, and Mega Centre Notre Dame's Dollarama and Service Canada, as well as residential projects such as Fourth Street Lofts and Queen Ashbridge. We also made strong progress on capital recycling.

Speaker #2: Our IFRS NAB, which is valued bottom-up, also implies a multiple of 15 times, consistent with our long-term average. Given the improvements we've made to our business and our positive outlook, we believe this dislocation in our valuation presents a highly attractive entry point for investors.

Speaker #1: Subsequent to year-end, we also went firm on the disposition of our Underwood residential building in Calgary for 46.5 million dollars. Taken together, we are halfway towards our 1.3 to 1.4 billion dollar target, with a number of other assets in negotiations.

Speaker #2: Since the beginning of 2025, we have allocated $179 million to unit repurchases, and since 2022, we have repurchased 19 million units, or 6% of the company, reinforcing our focus on long-term value creation for unitholders.

Speaker #1: Through successful condo closings, we have reduced our residual condo balance to 130 million dollars, which is immaterial in the context of RIOCAN's balance sheet.

Speaker #1: In addition, we sold 113.4 million of non-core and lower-growth commercial assets bringing the total capital repatriation to 788.2 million dollars. Through this disciplined capital recycling program, we continue to improve our portfolio quality while funding growth and improving our balance sheet.

Speaker #2: Subsequent to year-end, we closed on the previously announced acquisitions from the HBC JV. All backflow tenants at Georgia Mall and Oakville Place are now signed.

Dennis Blasutti: We sold CAD 406.6 million of RioCan Living assets and closed CAD 221.7 million of condos, for a total of CAD 628.3 million. Subsequent to year-end, we also went firm on the disposition of our Underwood residential building in Calgary for CAD 46.5 million. Taken together, we are halfway towards our CAD 1.3 to 1.4 billion target, with a number of other assets in negotiations. Through successful condo closings, we have reduced our residual condo balance to CAD 130 million, which is immaterial in the context of RioCan's balance sheet. In addition, we sold CAD 113.4 million of non-core and lower growth commercial assets, bringing the total capital repatriation to CAD 788.2 million.

Dennis Blasutti: We sold CAD 406.6 million of RioCan Living assets and closed CAD 221.7 million of condos, for a total of CAD 628.3 million. Subsequent to year-end, we also went firm on the disposition of our Underwood residential building in Calgary for CAD 46.5 million. Taken together, we are halfway towards our CAD 1.3 billion to 1.4 billion target, with a number of other assets in negotiations. Through successful condo closings, we have reduced our residual condo balance to CAD 130 million, which is immaterial in the context of RioCan's balance sheet. In addition, we sold CAD 113.4 million of non-core and lower growth commercial assets, bringing the total capital repatriation to CAD 788.2 million.

Speaker #2: Total capital for these build-outs is less than previous projections at approximately $20 million, or $100 per square foot. With a stabilized NOI yield of 20% on cost, with annual growth in the leases thereafter.

Speaker #1: We allocated much of this capital to debt reduction and unit repurchases. As a result, net debt to EBITDA improved to 8.6 times, a half-turn improvement from the 9.1 times at the end of last year, and well within our target range.

Speaker #2: Turning now to our forward-looking targets. Our 2026 guidance is in line with the framework that we outlined at our Investor Day, striking the appropriate balance of opportunity and risk.

Speaker #1: Our balance sheet is in a strong position. Supported by a suite of improved credit metrics. We ended the year with 1.5 billion dollars of liquidity, our ratio of unsecured debt to total debt improved to 63% from 56% last year, which, as a result, increased our unencumbered asset pool by 1 billion dollars to 9.2 billion dollars.

Speaker #2: We expect core FFO per unit of $1.60 to $1.62, representing a growth rate consistent with our Investor Day projections. This is supported by same property NOI growth of 3.5% to 4%.

Speaker #2: We have strong visibility into this target given that approximately 75% is contractually secured through rent steps and ramp-up of previously signed leases. With the strong operating backdrop, we expect to steadily grow this high-quality earnings stream.

Speaker #1: We continue to view unit repurchases as an attractive use of capital, particularly when our units trade at a significant discount to our historical norms.

Dennis Blasutti: Through this disciplined capital recycling program, we continue to improve our portfolio quality while funding growth and improving our balance sheet. We allocated much of this capital to debt reduction and unit repurchases. As a result, net debt to EBITDA improved 8.6x, a half-turn improvement from the 9.1x at the end of last year, and well within our target range. Our balance sheet is in a strong position, supported by a suite of improved credit metrics. We ended the year with CAD 1.5 billion of liquidity. Our ratio of unsecured debt to total debt improved to 63% from 56% last year, which, as a result, increased our unencumbered asset pool by CAD 1 billion to CAD 9.2 billion.

Speaker #1: At current prices, our units imply a forward multiple of approximately 12 times using 2026 core FFO, representing a 20% discount to our long-term historical average of 15 times.

Speaker #2: We also continue to see opportunities to invest within our existing portfolio. In 2026, we expect to invest $95 to $150 million into retail-focused projects, including the Young Eglinton Centre Improvement Plan, the new Costco at Burloach, Georgia Mall and Oakville Place backfills—including the addition of grocery to both those centers—Westgate Shopping Centre demalling and addition of a grocery store, and additional infill pad density at Winfield Farms.

Speaker #1: Our IFRS NAV, which is valued bottom-up, also implies a multiple of 15 times, consistent with our long-term average. Given the improvements we've made to our business and our positive outlook, we believe this dislocation in our valuation presents a highly attractive entry point for investors.

Speaker #2: Consistent with our Investor Day framework, we apply a 9% unlevered IRR hurdle rate for these types of projects. For the projects included in our 2026 plan, we expect to outperform this target with a going-in yield averaging 8 to 9 percent, plus future growth averaging approximately 3%.

Speaker #1: Since the beginning of 2025, we have allocated 179 million dollars to unit repurchases, and since 2022, we have repurchased 19 million units, or 6% of the company.

Dennis Blasutti: We continue to view unit repurchases as an attractive use of capital, particularly when our units trade at a significant discount to our historical norms. At current prices, our units imply a forward multiple of approximately 12x, using 2026 Core FFO, representing a 20% discount to our long-term historical average of 15x. Our IFRS NAV, which is valued bottom-up, also implies a multiple of 15x, consistent with our long-term average. Given the improvements we've made to our business and our positive outlook, we believe this dislocation in our valuation presents a highly attractive entry point for investors. Since the beginning of 2025, we have allocated CAD 179 million to unit repurchases, and since 2022, we have repurchased 19 million units, or 6% of the company, reinforcing our focus on long-term value creation for unitholders.

Speaker #1: Reinforcing our focus on long-term value creation for unit holders. Subsequent to year-end, we closed on the previously announced acquisitions from the HBCJV. All backflow tenants at Georgia Mall and Oakville Place are now signed.

Speaker #2: We expect mixed-use development expenditures of $45 to $55 million in 2026, a significant decline from prior years. 2026 spending represents a small amount of cost to complete and pipeline advancement costs.

Speaker #1: Total capital for these buildouts is less than previous projections at approximately 20 million dollars, or 100 dollars per square foot. With a stabilized NOI yield of 20% on cost, with annual growth in the leases thereafter.

Speaker #2: Maintenance capex is expected to return to normalized levels of approximately 55 million, a decrease of 16 million dollars from 2025. Note that we report our AFFO using a normalized capex, so this decrease in spend will not impact our reported AFFO growth rate, which will approximate our FFO growth rate.

Speaker #1: Turning now to our forward-looking targets. Our 2026 guidance is in line with the framework that we outlined at our Investor Day, striking the appropriate balance of opportunity and risk.

Speaker #2: However, for any of you who use actual capex when calculating AFFO results, this lower spend will lead to a higher year-on-year growth rate in this metric.

Speaker #1: We expect core FFO per unit of $1.60 to $1.62, representing a growth rate consistent with our Investor Day projections. This is supported by same property NOI growth of 3.5% to 4%.

Speaker #2: We are reaffirming our target range for net debt to EBITDA of 8 to 9 times, a range that, when taken together with our suite of balance sheet metrics, results in low financial risk.

Dennis Blasutti: Subsequent to year-end, we closed on the previously announced acquisitions from the HBC JV. All backfill tenants at Georgian Mall and Oakville Place are now signed. Total capital for these build-outs is less than previous projections at approximately CAD 20 million, or CAD 100 per sq ft, with a stabilized NOI yield of 20% on costs, with annual growth in the leases thereafter. Turning now to our forward-looking targets. Our 2026 guidance is aligned with the framework that we outlined at our Investor Day, striking the appropriate balance of opportunity and risk. We expect core FFO per unit of CAD 1.60 to 1.62, representing a growth rate consistent with our Investor Day projections. This is supported by same-property NOI growth of 3.5% to 4%.

Speaker #1: We have strong visibility into this target given that approximately 75% is contractually secured through rent steps and ramp-up of previously signed leases. With the strong operating backdrop, we expect to steadily grow this high-quality earnings stream.

Speaker #2: We continue to manage financial risk by growing our unencumbered asset pool, with our percentage of unsecured debt to total debt expected to be in the high 60s by the end of 2026 as we progress toward our 70% target.

Speaker #1: We also continue to see opportunities to invest within our existing portfolio. In 2026, we expect to invest 95 to 150 million into retail-focused projects, including Young Eglinton Center Improvement Plan, the new Costco at Burloak, Georgia Mall and Oakville Place backfills, including the addition of grocery to both those centers, Westgate Shopping Center demalling and addition of a grocery store, and additional infill pad density at Winfield Farms.

Speaker #2: We also remain focused on maintaining a well-balanced debt ladder and ensuring that we have strong liquidity. Lastly, we continue to advance our RioCan Living disposition program.

Speaker #2: While execution and timing remain market-dependent, the quality of this portfolio gives us confidence to achieve our 1.3 to 1.4 billion dollar target. In closing, we have a highly productive retail portfolio that is positioned to deliver resilient, durable cash flows.

Speaker #1: Consistent with our Investor Day framework, we apply a 9% unlevered IRR hurdle rate for these types of projects. For the projects included in our 2026 plan, we expect to outperform this target with a going-in yield averaging 8 to 9 percent plus future growth averaging approximately 3%.

Speaker #2: We have the capital to grow and a strong balance sheet that de-risks our growth trajectory. As we execute our plan over time, we believe the value of our business will be appropriately reflected in our unit price.

Dennis Blasutti: We have strong visibility into this target, given that approximately 75% is contractually secured through rent steps and ramp-up of previously signed leases. With the strong operating backdrop, we expect to steadily grow this high-quality earnings stream. We also continue to see opportunities to invest within our existing portfolio. In 2026, we expect to invest CAD 95 to 150 million into retail-focused projects, including Yonge Eglinton Centre Improvement Plan, the new Costco at Burloak, Georgian Mall and Oakville Place backfills, including the addition of grocery to both those centers, Westgate Shopping Centre de-malling in addition of a grocery store, and additional infill pad density at Wynfield Farms. Consistent with our Investor Day framework, we apply a 9% unlevered IRR hurdle rate for these types of projects.

Dennis Blasutti: We have strong visibility into this target, given that approximately 75% is contractually secured through rent steps and ramp-up of previously signed leases. With the strong operating backdrop, we expect to steadily grow this high-quality earnings stream. We also continue to see opportunities to invest within our existing portfolio. In 2026, we expect to invest CAD 95 million to 150 million into retail-focused projects, including Yonge Eglinton Centre Improvement Plan, the new Costco at Burloak, Georgian Mall and Oakville Place backfills, including the addition of grocery to both those centers, Westgate Shopping Centre de-malling in addition of a grocery store, and additional infill pad density at Wynfield Farms. Consistent with our Investor Day framework, we apply a 9% unlevered IRR hurdle rate for these types of projects.

Speaker #2: With that, I'll turn the call back over to the operator for questions.

Speaker #1: We expect mixed-use development expenditures of 45 to 55 million dollars in 2026, a significant decline from prior years. 2026 spending represents a small amount of cost to complete and pipeline advancement costs.

Speaker #1: Of course. We will now begin the question and answer session. If you would like to ask a question, please press star, followed by one on your telephone keypad.

Speaker #1: If for any reason you would like to remove that question, please press star, followed by two. Again, to ask a question, press star one.

Speaker #1: Maintenance capex is expected to return to normalized levels of approximately 55 million, a decrease of 16 million dollars from 2025. Note that we report our AFFO using a normalized capex, so this decrease in spend will not impact our reported AFFO growth rate, which will approximate our FFO growth rate.

Speaker #1: As a reminder, if you are using a speakerphone, please remember to pick up your handset before asking a question. We will pause here briefly as questions are registered.

Speaker #1: However, for any of you who use actual capex when calculating AFFO results, this lower spend will lead to a higher year-on-year growth rate in this metric.

Dennis Blasutti: For the projects included in our 2026 plan, we expect to outperform this target with a going-in yield averaging 8% to 9%, plus future growth averaging approximately 3%. We expect mixed-use development expenditures of CAD 45 to 55 million in 2026, a significant decline from prior years. 2026 spending represents a small amount of cost to complete and pipeline advancement costs. Maintenance CapEx is expected to return to normalized levels of approximately CAD 55 million, a decrease of CAD 16 million from 2025. Note that we report our AFFO using a normalized CapEx, so this decrease in spend will not impact our reported AFFO growth rate, which will approximate our FFO growth rate. However, for any of you who use actual CapEx when calculating AFFO results, this lower spend will lead to a higher year-on-year growth rate in this metric.

Dennis Blasutti: For the projects included in our 2026 plan, we expect to outperform this target with a going-in yield averaging 8% to 9%, plus future growth averaging approximately 3%. We expect mixed-use development expenditures of CAD 45 million to 55 million in 2026, a significant decline from prior years. 2026 spending represents a small amount of cost to complete and pipeline advancement costs. Maintenance CapEx is expected to return to normalized levels of approximately CAD 55 million, a decrease of CAD 16 million from 2025. Note that we report our AFFO using a normalized CapEx, so this decrease in spend will not impact our reported AFFO growth rate, which will approximate our FFO growth rate. However, for any of you who use actual CapEx when calculating AFFO results, this lower spend will lead to a higher year-on-year growth rate in this metric.

Speaker #1: Our first question comes from a line of Sam Demani with TD Securities. Sam, your line is now open.

Speaker #1: We are reaffirming our target range for net debt to EBITDA of 8 to 9 times, a range that, when taken together with our suite of balance sheet metrics, results in low financial risk.

Speaker #3: Thank you. Good morning, everyone. Just want to say it's great to see the results coming in, the expectations, and the predictability of the new core FFO metric.

Speaker #3: So it's just makes following the company much easier. Thank you very much. I guess first off, just on the guidance for core FFO, it's a very tight range of 160 to 162.

Speaker #1: We continue to manage financial risk by growing our unencumbered asset pool with our percentage of unsecured debt to total debt expected to be in the high 60s by the end of 2026 as we progress toward our 70% target.

Speaker #3: I'm just wondering if there's any reason why you didn't start with a wider range.

Speaker #1: We also remain focused on maintaining a well-balanced debt ladder and ensuring that we have strong liquidity. Lastly, we continue to advance our RIOCAN living disposition program.

Speaker #4: Sure. Thanks, Sam, and thanks for your earlier comment. The reason is because core FFO is quite predictable. It's quite hard to come by additional core FFO, and it's quite hard we hope to lose core FFO given that it's rooted in a lot of very predictable operational outcomes.

Speaker #1: While execution and timing remain market-dependent, the quality of this portfolio gives us confidence to achieve our 1.3 to 1.4 billion dollar target. In closing, we have a highly productive retail portfolio that is positioned to deliver resilient, durable cash flows.

Speaker #4: And so we felt that it was prudent, and also more accurate, to give that tighter guidance range. We felt this would help shape a lot of analysts' views as well as investor views, and we have quite a bit of confidence in that tighter range.

Dennis Blasutti: We are reaffirming our target range for net debt to EBITDA of 8 to 9 times, a range that, when taken together with our suite of balance sheet metrics, results in low financial risk. We continue to manage financial risk by growing our unencumbered asset pool, with our percentage of unsecured debt to total debt expected to be in the high 60s by the end of 2026 as we progress toward our 70% target. We also remain focused on maintaining a well-balanced debt ladder and ensuring that we have strong liquidity. Lastly, we continue to advance our RioCan Living disposition program. While execution and timing remain market dependent, the quality of this portfolio gives us confidence to achieve our CAD 1.3 to 1.4 billion target. In closing, we have a highly productive retail portfolio that is positioned to deliver resilient, durable cash flows.

Dennis Blasutti: We are reaffirming our target range for net debt to EBITDA of 8 to 9x, a range that, when taken together with our suite of balance sheet metrics, results in low financial risk. We continue to manage financial risk by growing our unencumbered asset pool, with our percentage of unsecured debt to total debt expected to be in the high 60s by the end of 2026 as we progress toward our 70% target. We also remain focused on maintaining a well-balanced debt ladder and ensuring that we have strong liquidity. Lastly, we continue to advance our RioCan Living disposition program. While execution and timing remain market dependent, the quality of this portfolio gives us confidence to achieve our CAD 1.3 billion to 1.4 billion target. In closing, we have a highly productive retail portfolio that is positioned to deliver resilient, durable cash flows.

Speaker #1: We have the capital to grow and a strong balance sheet that de-risks our growth trajectory. As we execute our plan over time, we believe the value of our business will be appropriately reflected in our unit price.

Speaker #1: With that, I'll turn the call back over to the operator for questions.

Speaker #4: So that's the backdrop.

Speaker #3: I appreciate that. And just going back to Q4, the core FFO print came in sort of right at sort of the outlook, the guidance, but I think the guidance was technically for at a minimum of $1.55 for 2025.

Speaker #2: Of course. We will now begin the question and answer session. If you would like to ask a question, please press star, followed by one on your telephone keypad.

Speaker #2: If for any reason you would like to remove that question, please press star, followed by two. Again, to ask a question, press star one.

Speaker #2: As a reminder, if you are using a speakerphone, please remember to pick up your handset before asking a question. We will pause here briefly as questions are registered.

Speaker #3: Is there any reason why the results didn't exceed the minimum of that guidance for 2025?

Dennis Blasutti: We have the capital to grow and a strong balance sheet that de-risks our growth trajectory. As we execute our plan over time, we believe the value of our business will be appropriately reflected in our unit price. With that, I'll turn the call back over to the operator for questions.

Speaker #4: I think that ultimately the guidance was in line with what we suggested at Investor Day. It might have been on the lower end of the guidance, but I think it was just a matter of timing on certain income that we had coming in.

Speaker #2: Our first question comes from a line of Sam Damiani with TD Securities. Sam, your line is now open.

Speaker #3: Thank you. Good morning, everyone. Just want to say it's great to see the results coming in, the expectations, and the predictability of the new core FFO metric.

Speaker #4: I don't think there's any technical reason, Sam, that I can give you at this point. Dennis, I don't know if there's anything you can offer.

Operator: Of course. We will now begin the question and answer session. If you'd like to ask a question, please press star followed by one on your telephone keypad. If for any reason you'd like to remove that question, please press star followed by two. Again, to ask a question, press star one. As a reminder, if you are using a speakerphone, please remember to pick up your handset before asking a question. We will pause here briefly as questions are registered. Our first question comes from the line of Sam Damiani with TD Securities. Sam, your line is now open.

Speaker #3: So it's just makes following the company much easier. Thank you very much. I guess first off, just on the guidance for core FFO, it's a very tight range of 160 to 162.

Speaker #5: No, I wouldn't have said much on that. I think there's just maybe a bit of timing items on whether it's costs or other things as well.

Speaker #5: So it's just a few little small things like that. Just it was never expected to be that much different than 155 anyway. So we're just I think pleased that it came in as expected.

Speaker #3: I'm just wondering if there's any reason why you didn't start with a wider range.

Speaker #3: Yeah, for sure. And it was a small amount regardless. So thank you very much. Last one for me, just on and you did address this, Dennis, in your comments, but any more specific commentary you can offer in terms of the quantity and cadence of RIOCAN living dispositions in 2026 beyond the underwood, of course?

Speaker #4: And so we felt that it was prudent and also more accurate in giving that tighter guidance range. We felt this would help shape a lot of analysts' views as well as investor views, and we have quite a bit of confidence in that tighter range.

Sam Damiani: Thank you. Good morning, everyone. Just want to say it's great to see the results, you know, coming in with expectations and, the predictability of the new core FFO metric. So it's, just makes following the company much, much easier. Thank you very much. I guess first off, just on the guidance for core FFO, it's a very tight range of CAD 1.60 to 1.62. I'm just wondering if there's any reason why you didn't start with a wider range?

Speaker #4: We're feeling good about it, Sam. There's a high quality of assets, and therefore a high degree of interest in those assets. The market will do what the market will do, but we've had a lot of preliminary actually, I'd say advanced discussions on a number of the existing RIOCAN living assets.

Speaker #4: So that's the backdrop.

Speaker #4: And so we feel quite confident that there's going to be a nice consistent cadence throughout the course of the year. And as Dennis suggested in his remarks earlier, we feel confident that the ultimate target of approximately 1.3 billion dollars is very much achievable.

Jonathan Gitlin: ... Sure. Thanks, Sam, and thanks for your earlier comment. The reason is because Core FFO is quite predictable. It's quite hard to come by additional Core FFO, and it's quite hard, we hope, to lose Core FFO, given that it's rooted in a lot of very predictable operational outcomes. And so we felt that it was prudent and also more accurate in giving that tighter guidance range. We felt this would help shape a lot of analysts' views as well as investor views, and we have quite a bit of confidence in that tighter range. So that's the backdrop.

Jonathan Gitlin: Sure. Thanks, Sam, and thanks for your earlier comment. The reason is because Core FFO is quite predictable. It's quite hard to come by additional Core FFO, and it's quite hard, we hope, to lose Core FFO, given that it's rooted in a lot of very predictable operational outcomes. And so we felt that it was prudent and also more accurate in giving that tighter guidance range. We felt this would help shape a lot of analysts' views as well as investor views, and we have quite a bit of confidence in that tighter range. So that's the backdrop.

Speaker #4: Whether that falls on either side of '26 or early '27, again, like I said, some of it is market-dependent, but as a whole, we feel quite confident that we'll achieve that number.

Speaker #3: Is there any reason why the results didn't exceed the minimum of that guidance for 2025?

Speaker #3: That's great, thank you. And I'll turn it back.

Speaker #4: Thanks, Sam.

Speaker #1: Thank you for your questions. Our next question comes from a line of Lauren Belkmar with The Shardens. Your line is now open.

Speaker #6: Thanks. Good morning. Maybe just sticking with the disposition side, but switching over to the commercial side because you guys have done some good work there.

Speaker #4: I don't think there's any technical reason, Sam, that I can give you at this point. Dennis, I don't know if there's anything you can offer.

Sam Damiani: Appreciate that. And just, I guess, going back to Q4, the Core FFO print, you know, came in sort of right at the outlook, the guidance. But I think the guidance was technically for at a minimum of CAD 1.55 for 2025. Is there any reason why the results didn't exceed the minimum of that guidance for 2025?

Speaker #6: Wondering if you can give us an idea of the quantum of non-core commercial dispositions you expect to do in 2026.

Speaker #5: No, I wouldn't say much on that. I think there's just maybe a bit of timing items on whether it's costs or other things as well.

Speaker #5: So it's just a few little small things like that. Just it was never expected to be that much different than 155 anyway. So we're just, I think, pleased that it came in as expected.

Speaker #3: We haven't put out guidance in that regard. We are obviously always in we're getting a lot of inbounds, Lauren, for what has become a highly sought-after product type in necessity-based open-air shopping centers.

Jonathan Gitlin: I think that ultimately the guidance was in line with what we suggested at Investor Day. It might have been on the lower end of the guidance, but I think it was just a matter of timing on certain, you know, certain income that we had coming in. I don't think there's any technical reason, Sam, that I can give you at this point. Dennis, I don't know if there's anything you can offer.

Speaker #3: And really, we've also pruned our portfolio such that we don't have a lot of non-core retail assets. That being said, if there are certain low-growth assets, then we would consider entering into either joint ventures or selling them on a wholesale basis.

Speaker #3: And but we did not provide any specific guidance along the lines of how much we would dispose of any commercial assets.

[Company Representative] (RioCan Real Estate Investment Trust): No, I wouldn't say much on that. I think there's just maybe a bit of timing items on, you know, whether it's costs or other things as well. So it's just a few little small things like that. Just, you know, it was never expected to be that much different than CAD 155 anyway. So we're just, I think, pleased that it came in as expected.

Dennis Blasutti: No, I wouldn't say much on that. I think there's just maybe a bit of timing items on, you know, whether it's costs or other things as well. So it's just a few little small things like that. Just, you know, it was never expected to be that much different than CAD 155 anyway. So we're just, I think, pleased that it came in as expected.

Speaker #6: Okay, fair enough. And then I guess with all this repatriation of capital, the few levers to pull here—obviously debt is a priority. But beyond that, you've been active on the NCIB.

Speaker #6: Just wondering how you make the capital allocation decision, whether to go on the NCIB or acquisitions or prioritize debt.

Sam Damiani: Yeah, for sure, and it was a small amount regardless. So, thank you very much. Last one for me, just on and you did address this, Dennis, in your comments, but any more specific commentary you can offer in terms of the quantity and cadence of RioCan Living dispositions in 2026, you know, beyond the Underwood, of course?

Speaker #4: Whether that falls on either side of '26 or early '27, again, like I said, some of it is market-dependent, but as a whole, we feel quite confident that we'll achieve that number.

Speaker #4: Well, the first priority is keeping the balance sheet in good shape, Lauren. As we suggested at our Investor Day in November, it's critical for us to have between 8 and 9 times net debt to EBITDA along with a whole suite of other debt metrics, including liquidity, including debt service coverage ratios, including unencumbered asset pool, and all of those things we feel are in good shape.

Speaker #3: That's great. Thank you. And I'll turn it back.

Speaker #4: Thanks, Sam.

Jonathan Gitlin: We're feeling good about it, Sam. There's a high quality of assets and therefore a high degree of interest in those assets. The market will do what the market will do, but we've had a lot of preliminary... actually, I'd say, advanced discussions on a number of the existing RioCan Living assets, and so we feel quite confident that there's gonna be a nice consistent cadence throughout the course of the year. And you know, as Dennis suggested in his remarks earlier, we feel confident that the ultimate target of approximately CAD 1.3 billion is very much achievable. Whether that falls on either side of 2026 or early 2027, again, like I said, some of it is market dependent, but as a whole, we feel quite confident that we'll achieve that number.

Jonathan Gitlin: We're feeling good about it, Sam. There's a high quality of assets and therefore a high degree of interest in those assets. The market will do what the market will do, but we've had a lot of preliminary actually, I'd say, advanced discussions on a number of the existing RioCan Living assets, and so we feel quite confident that there's gonna be a nice consistent cadence throughout the course of the year. And you know, as Dennis suggested in his remarks earlier, we feel confident that the ultimate target of approximately CAD 1.3 billion is very much achievable. Whether that falls on either side of 2026 or early 2027, again, like I said, some of it is market dependent, but as a whole, we feel quite confident that we'll achieve that number.

Speaker #2: Thank you for your questions. Our next question comes from a line of Lorne Balkmar with The Shardens. Your line is now open.

Speaker #4: And because of that, it permitted us to take some of our additional capital and put it towards NCIB, which at this point is such a logical use of capital.

Speaker #6: Thanks. Good morning. Maybe just sticking with the disposition side, but switching over to the commercial side because you guys have done this some good work there.

Speaker #4: It's really a way of giving back to our shareholders and I really do feel that we are and obviously it's a bias to you, but I do believe that RIOCAN's units are undervalued relative to the future performance perspective we have.

Speaker #6: Wondering if you can give us an idea of the quantum of non-core commercial dispositions you expect to do in 2026.

Speaker #4: We haven't put out guidance in that regard. We are obviously always in we're getting a lot of inbounds, Lorne, for what has become a highly sought-after product type in necessity-based open-air shopping centers.

Speaker #4: And therefore, we thought that buying back units in that type of pricing in that type of pricing range was a very prudent use of capital.

Speaker #4: And in line with what we had suggested at our Investor Day. So that was really the decision-making process. There are other uses of capital that Dennis had alluded to in his remarks, such as putting money towards our property, building out pads and strips, and also just reshuffling tenancies in certain properties, like at Furlough, where we're in the process of erecting a Costco.

Sam Damiani: Sounds great. Thank you, and I'll turn it back.

Speaker #4: And really, we've also pruned our portfolio such that we don't have a lot of non-core retail assets, that being said, if there are certain low-growth assets, then we would consider entering into either joint ventures or selling them on a wholesale basis.

Jonathan Gitlin: Thanks, Sam.

Operator: Thank you for your questions. Our next question comes from the line of Lorne Kalmar with Desjardins. Your line is now open.

Lorne Kalmar: Thanks. Good morning. Maybe just sticking with the disposition side, but switching over to the commercial side, because you guys have done some good work there. Wondering if you can give us an idea of the quantum of non-core commercial dispositions you expect to do in 2026.

Speaker #4: And I think those will also be part of the decision-making process. But in this type of market, it is definitely NCIB that stands out as a very clear-cut, accretive use of capital.

Speaker #4: And but we did not provide any specific guidance along the lines of how much we would dispose of any commercial assets.

Speaker #3: The only thing I'd add there.

Speaker #3: Okay. Fair enough. And then I guess with all this repatriation of capital, the few levers to pull here, obviously, debt is a priority. But beyond that, you've been active on the NCIB.

Jonathan Gitlin: We, we haven't put out guidance in that regard. We are, you know, obviously always in, we're getting a lot of inbounds, Lorne, for what has become a highly sought-after product type in, necessity-based open-air shopping centers. And, really, we've, we've also pruned our portfolio such that we don't have a lot of non-core retail assets. That being said, if there are certain low growth, assets, then we would, we would consider entering into either joint ventures or selling them, on a, on a wholesale basis. And, but we did not provide any specific guidance along, along the lines of how much we would dispose of any commercial assets.

Speaker #6: Okay. Thank you very much.

Speaker #3: So the only thing I'd add there is that I think one thing to kind of think about in this environment is rates have come down, with spreads tightening and the underlyings moving.

Speaker #3: Just wondering how you make the capital allocation decision, whether to go on the NCIB or acquisitions or prioritize debt.

Speaker #3: To a level where paying down debt is simply not accretive to FFO per unit or value. And so it's something to just sort of think about when we have so many other stronger opportunities from an accretion perspective.

Speaker #4: Well, the first priority is keeping the balance sheet in good shape, Lorne. As we suggested at our Investor Day in November, it's critical for us to have between 8 and 9 times net debt to EBITDA along with a whole suite of other debt metrics, including liquidity, including debt service coverage ratios, including unencumbered asset pool, and all of those things we feel are in good shape.

Speaker #3: That we've kept our range intentionally a little wide to on net debt to EBITDA to allow for us to take advantage of opportunities to reinvest in our own portfolio, etc.

Speaker #4: And because of that, it permitted us to take some of our additional capital and put it towards NCIB, which at this point is such a logical use of capital.

Speaker #3: And then really thinking about the balance sheet from a financial risk perspective, anywhere inside that range in conjunction with a ladder and all the other suite of metrics that Jonathan mentioned is a low-risk balance sheet in our view.

Lorne Kalmar: Okay, fair enough. And then I guess with, you know, with all this repatriation of capital, the few levers to pull here, obviously debt is a, a priority. But beyond that, you know, you've been active on the NCIB, just wondering how you make the capital allocation decision, whether to go on the NCIB or, or acquisitions or, or prioritize debt.

Speaker #4: It's really a way of giving back to our shareholders and I really do feel that we are and obviously, it's a biased view, but I do believe that RIOCAN's units are undervalued relative to the future performance perspective we have.

Speaker #3: So, we've intentionally left ourselves flexibility to take advantage of accretive opportunities. Things like acquiring Georgia and Oakville—those are accretive opportunities where we're going to add a ton of value through the releasing effort.

Speaker #4: And therefore, we thought that buying back units in that type of pricing in that type of pricing range was a very prudent use of capital.

Jonathan Gitlin: Well, the first priority is keeping the balance sheet in good shape, Lorne. As we suggested at our Investor Day in November, it's critical for us to have between 8x and 9x Net Debt to EBITDA, along with a whole suite of other debt metrics, including liquidity, debt service coverage ratios, including Unencumbered Asset Pool. And all of those things we feel are in good shape, and because of that, it permitted us to take some of our additional capital and put it towards NCIB, which at this point is such a logical use of capital. It's really a way of giving back to our shareholders, and I really do feel that we are, and obviously it's a biased view, but I do believe that RioCan's units are undervalued relative to the future performance perspective, prospective we have.

Speaker #4: And in line with what we had suggested at our Investor Day. So that was really the decision-making process. There are other uses of capital that Dennis had alluded to in his remarks, such as putting money towards our property, building out pads and strips, and also just reshuffling tenancies in certain properties like at Berlock where we've we're in the process of erecting a Costco.

Speaker #3: But at day one, it is a negative impact on net debt to EBITDA because you have to wait for the EBITDA to ramp up.

Speaker #3: But four quarters later, it's a positive impact. Right? So there's if you can get a timing lag in the metrics, but ultimately, we think buying those assets is going to be a very good it's going to bear out to be a very good decision.

Speaker #4: And I think those will also be part of the decision-making process. But in this type of market, it is definitely NCIB stands out as a very clear-cut accretive use of capital.

Speaker #6: Okay, and then maybe just sticking with that one last one. Is there a reality where you guys go below the 8 times net debt to EBITDA, or you don't see much point in that?

Speaker #5: The only thing I'd add there is so the only thing I'd add there is that I think one thing to kind of think about in this environment is rates have come down with spreads tightening and the underlyings moving to a level where paying down debt is simply not accretive.

Speaker #3: Anything is possible. It really depends on what the other opportunities are. But when we have such accretive and logical uses of capital, outside of just paying down debt, we are going to take advantage of those.

Jonathan Gitlin: And therefore, we thought that buying back units in that type of pricing, in that type of pricing range, was a very prudent use of capital and in line with what we had suggested at our Investor Day. So that was really the decision-making process. There are other uses of capital that Dennis had alluded to in his remarks, such as putting money towards our property, building out pads and strips, and also just, you know, reshuffling tenancies in certain properties, like at Burloak, where we're in the process of erecting a Costco. And I think those will also be part of the decision-making process. But in this type of market, it is definitely, NCIB stands out as a very clear-cut, creative use of capital. The only thing I'd add there-

Speaker #3: And we see that we have a runway with respect to our stock price being where it is. And the availability of capital because of the repatriation of RIOCAN living assets.

Speaker #5: To FFO per unit or value. And so it's something to just sort of think about when we have so many other stronger opportunities from an accretion perspective.

Speaker #3: So, I think for the foreseeable future, that's where we'll focus our efforts, along with some of the other property-level improvements and build-outs that I was talking about before.

Speaker #5: That we've kept our range intentionally a little wide to on net debt to EBITDA to allow for us to take advantage of opportunities to reinvest in our own portfolio, etc.

Speaker #3: But again, we're committed to that range of 8 to 9 times, going below that. It's not something in the short to medium term that we see happening.

Speaker #5: And then really thinking about the balance sheet from a financial risk perspective, anywhere inside that range in conjunction with a ladder and all the other suite of metrics that Jonathan mentioned is a low-risk balance sheet in our view.

Speaker #6: Okay. Thank you so much. I'll turn it back.

Speaker #3: Thanks, Lauren.

Lorne Kalmar: Okay, thank you very much.

Speaker #1: Thank you for your questions. Our next question comes from a line of mic marketers with BMO. Your line is now open.

Jonathan Gitlin: So the only thing I'd add there is that-

Lorne Kalmar: Yep.

Jonathan Gitlin: I think one thing to kind of think about in this environment is rates have come down, with spreads tightening and the underlying is moving to a level where paying down debt is simply not accretive to FFO per unit or value. And so it's something to just sort of think about, when we have so many other stronger opportunities from an accretion perspective, that you know, we've kept our range intentionally a little wide to on net debt to EBITDA, to allow for us to take advantage of opportunities to reinvest in our own portfolio, et cetera.

Speaker #5: So we do we've intentionally left ourselves flexibility to take advantage of accretive opportunities. Things like acquiring Georgia and Oakville, those are accretive opportunities we're going to add a ton of value through the releasing effort.

Speaker #7: Thanks, operator. Good morning, team RIOCAN. Just a quick question on the reinvestment CapEx of $95 to $115 million of the existing portfolio. Is that sort of what we should be thinking about what you're capable of delivering, or is there potential for that to ramp higher in 27 and 28?

Speaker #5: But in day one, it is a negative impact on net debt to EBITDA because you have to wait for the EBITDA to ramp up.

Speaker #4: So I think it is a fairly good estimate for going forward. It will depend, Mike, on what the opportunity set is in 27 and 28.

Speaker #5: But four quarters later, it's a positive impact. Right? So there's a you can get a timing lag in the metrics, but ultimately, we think buying those assets was going to be a very good it's going to bear out to be a very good decision.

Jonathan Gitlin: And then really thinking about the balance sheet, as you know, from a financial risk perspective, anywhere inside that range in conjunction with, you know, our ladder and all the other suite of metrics that Jonathan mentioned, is a low-risk balance sheet, in our view. So we, you know, we've intentionally left ourselves flexibility to take advantage of accretive opportunities. You know, things like, you know, acquiring Georgian and Oakville, those are accretive opportunities. We're going to add a ton of value through the releasing effort. But in day one, it is a negative impact on net debt to EBITDA, because you have to wait for the EBITDA to ramp up, but four quarters later, it's a positive impact, right?

Speaker #4: But right now, I think that as a run rate is a reasonable assessment.

Speaker #3: Okay. And then maybe just sticking with that one last one. Is there a reality where you guys go below the 8 times net at EBITDA or you don't see much point in that?

Speaker #7: Okay. Great. Thanks for that. And then, Jonathan, you had mentioned some or you alluded to strong demand for the types of asset RIOCAN owns.

Speaker #4: Anything is possible. It really depends on what the other what the other opportunities are. But when we have such accretive and logical uses of capital, outside of just paying down debt, we are going to take advantage of those.

Speaker #7: What's the acquisition market like out there? I mean, obviously, the pricing is tight. Is there a lot of product available for sale? And if so, would RioCan potentially look at doing— I mean, I think you mentioned JVs on some non-core assets, but what about on core assets in terms of trying to expand your platform?

Speaker #4: And we see that we have a runway with respect to our stock price being where it is. And the availability of capital because of the repatriation of RIOCAN living assets.

Speaker #4: Sort of to buy or to sell, Mike.

Jonathan Gitlin: So there's a timing lag in the metrics, but ultimately, you know, we think buying those assets is gonna bear out to be a very good decision.

Speaker #4: So I think for the foreseeable future, that's where we'll focus our efforts along with some of the other property-level improvements and build-outs that I was talking about before.

Speaker #7: Well, I could go both ways. You could see the JV and then continue to expand.

Speaker #4: Right. So yeah, the market is tight at this point. There's a lot of very strong retail that's held by a lot of very well-heeled entities, whether they're REITs or pension funds.

Speaker #4: But again, we're committed to that range of 8 to 9 times, going below that. It's not something in the short to medium term that we see happening.

Lorne Kalmar: Okay. And then maybe just sticking with that, one last one. Is there a reality where you guys go below the 8x net to EBITDA, or you don't see much point in that?

Speaker #4: And there's just no push or need to sell them. So you're not seeing a lot of high-quality assets that would fit RIOCAN's existing high-quality retail profile available to acquire.

Speaker #3: Okay. Thank you so much. I'll turn it back.

Speaker #4: Thanks, Lorne.

Jonathan Gitlin: Anything is possible. It really depends on what the other opportunities are. But when we have such accretive and logical uses of capital outside of just paying down debt, we are gonna take advantage of those. And we see that, you know, we have a runway with respect to our stock price being where it is and the availability of capital because of the repatriation of RioCan Living assets. So I think for the foreseeable future, that's where we'll focus our efforts, along with some of the other property-level improvements and build-outs that I was talking about before. But again, we're committed to that range of 8 to 9 times. Going below that, it's not something in the short to medium term that we see happening.

Jonathan Gitlin: Anything is possible. It really depends on what the other opportunities are. But when we have such accretive and logical uses of capital outside of just paying down debt, we are gonna take advantage of those. And we see that, you know, we have a runway with respect to our stock price being where it is and the availability of capital because of the repatriation of RioCan Living assets. So I think for the foreseeable future, that's where we'll focus our efforts, along with some of the other property-level improvements and build-outs that I was talking about before. But again, we're committed to that range of 8 to 9x. Going below that, it's not something in the short to medium term that we see happening.

Speaker #1: Thank you for your questions. Our next question comes from a line of mic marketers with BMO. Your line is now open.

Speaker #4: And when they do become available, they're at cap rates that are extremely tight, and they're generally getting those. So that allows me to flip to the other perspective, which is the ability to sell certain interest in assets.

Speaker #3: Thanks, operator. Good morning, team. RIOCAN. Just a quick question on the reinvestment CapEx of $95 to $115 million of the existing portfolio. Is that sort of what we should be thinking about what you're capable of delivering, or is there potential for that to ramp higher in 27 and 28?

Speaker #4: And that's something we definitely are exploring where we take let's say lower-growth assets that are of high quality bringing in a partner and we use our platform to create value through a fee stream, but also repatriate capital that we can put to work in a very accretive manner.

Speaker #4: So I think it is a fairly good estimate for going forward. It will depend, Mike, on what the opportunity set is in 27 and 28.

Speaker #4: I think that's something we would avail ourselves of. And we alluded to it in our MD&A that there are certain discussions taking place at this point in time.

Lorne Kalmar: Okay, thank you so much. I'll turn it back.

Speaker #4: But right now, I think that as a run rate is a reasonable assessment.

Jonathan Gitlin: Thanks, Lauren.

Speaker #4: In that regard, and I think that's a model that is definitely again, it shows the strength of RIOCAN's platform. And I think a lot of partners would covet that type of management oversight.

Operator: Thank you for your questions. Our next question comes from the line of Mike Markidis with BMO. Your line is now open.

Speaker #3: Okay. Great. Thanks for that. And then, Jonathan, you had mentioned some or you alluded to strong demand for the types of asset RIOCAN owns.

Speaker #4: And then once you have that type of partnership, I'm going to use an old term here, but it gives you a bit of a hunting partner, especially if you have a well-heeled institutional partner who has equal sensibility around what is good to own.

Mike Markidis: Thanks, operator. Good morning, Team RioCan. Just a quick question on the reinvestment CapEx of CAD 95 to 115 million of the, existing portfolio. Is that sort of what we should be thinking about what you're capable of delivering, or is there potential for that to ramp higher in 2027 and 2028?

Mike Markidis: Thanks, operator. Good morning, Team RioCan. Just a quick question on the reinvestment CapEx of CAD 95 million to 115 million of the, existing portfolio. Is that sort of what we should be thinking about what you're capable of delivering, or is there potential for that to ramp higher in 2027 and 2028?

Speaker #3: What's the acquisition market like out there? I mean, obviously, the pricing is tight. Is there a lot of product available for sale? And if so, would RIOCAN potentially look at doing I mean, I think you mentioned JVs on some non-core assets, but what about on core assets in terms of trying to expand your platform?

Speaker #4: So, I do think if we have capital available to us, and we have the opportunity to utilize someone else's balance sheet but we get a fee stream, it certainly makes acquisition a little more palatable.

Jonathan Gitlin: So I think it is a fairly good estimate for going forward. It will depend, Mike, on what the opportunity set is in 2027 and 2028. But right now, I think that as a run rate is a reasonable assessment.

Speaker #4: Sort of to buy or to sell, Mike?

Speaker #4: But in today's existing market, for us just to go out and buy 100% of a high-quality retail asset, I think it would be very hard-pressed to go over our 9% unleavered hurdle.

Speaker #3: Well, I could go both ways. You could see the JV and then continue to expand.

Speaker #4: Right. So yeah, the market is tight at this point. There's a lot of very strong retail that's held by a lot of very well-heeled entities, whether they're REITs or pension funds.

Speaker #4: Because if you're finding an asset that has 3% growth, it's not going to be at a 6 cap. It's going to be something lower.

Mike Markidis: Okay, great. Thanks for that. And then, Jonathan, you had mentioned some, or you alluded to strong demand for the types of asset RioCan owns. What's the acquisition market like out there? I mean, obviously, the pricing is tight. Is there a lot of product available for sale? And, if so, would RioCan potentially look at doing... I mean, I think you mentioned, JVs on some non-core assets, but what about on core assets in terms of trying to expand your, your platform?

Mike Markidis: Okay, great. Thanks for that. And then, Jonathan, you had mentioned some, or you alluded to strong demand for the types of asset RioCan owns. What's the acquisition market like out there? I mean, obviously, the pricing is tight. Is there a lot of product available for sale? And, if so, would RioCan potentially look at doing. I mean, I think you mentioned, JVs on some non-core assets, but what about on core assets in terms of trying to expand your, your platform?

Speaker #4: So that's the quandary that would be in from just a straight-out acquisition perspective. And quite frankly, Mike, just going back to the point I made earlier, I've got an awesome portfolio right in front of me that I know that I love.

Speaker #4: And there's just no push or need to sell them. So you're not seeing a lot of high-quality assets that would fit RIOCAN's existing high-quality retail profile available to acquire.

Speaker #4: And if I could buy a piece of that at what is a much higher yield than what the open market or the private market would permit, I would do that all day long.

Speaker #4: Hence the 175 million of MCIB that we participated in since early 2025.

Jonathan Gitlin: Mm-hmm. Sorry, to buy or to sell, Mike?

Speaker #4: And that's something we definitely are exploring where we take let's say lower-growth assets that are of high quality bringing in a partner and we use our platform to create value through a fee stream, but also a repatriate capital that we could put to work in a very accretive manner.

Speaker #7: Okay. Got it. And then last one before I turn it back. I know you said exploring and discussions. That's probably you may want to punt this question, but what would be the sort of potential range or quantum of assets that you would be looking to potentially sell to a JV partner?

Mike Markidis: Well, it could go both ways. You could see the JV-

Jonathan Gitlin: Yeah.

Mike Markidis: and then continue to expand.

Jonathan Gitlin: Right.

Mike Markidis: Um-

Jonathan Gitlin: So yeah, the market is tight at this point. There's a lot of very strong retail that's held by a lot of very well-heeled entities, whether they're REITs or pension funds, and there's just no push or need to sell them. So you're not seeing a lot of high-quality assets that would fit RioCan's existing high-quality retail profile available to acquire. And when they do become available, they're at cap rates that are extremely tight, and they're generally getting those. So that allows me to flip to the other perspective, which is the ability to sell certain interests in assets.

Speaker #4: I think that's something we would avail ourselves of. And we alluded to it in our MD&A that there are certain discussions taking place at this point in time.

Speaker #4: I mean, again, it's it really we don't have it in our business plan at this point. So there's no specific number. We would just balance, as we always do, the considerations around what could we do with the capital and what the type of accretion would be from a fee stream perspective.

Speaker #4: In that regard, and I think that's a model that is definitely again, it really it shows the strength of RIOCAN's platform. And I think a lot of partners would covet that type of management oversight.

Speaker #4: And so, there's no set quantum, Mike, but we would balance it with all the other considerations. I know it's a bit of a vague answer.

Jonathan Gitlin: That's something we definitely are exploring, where we take, let's say, lower growth assets that are of high quality, bringing in a partner, and we use our platform to create value through a fee stream, but also a repatriate capital that we can put to work in a very accretive manner. I think that's something we would avail ourselves of, and, you know, we alluded to it in our MD&A, that there are certain discussions taking place at this point in time in that regard. I think that's a model that is definitely again, it really, it shows the strength of RioCan's platform, and I think a lot of partners would covet that type of management oversight.

Speaker #7: No, I get it. I understood. Can't help but try it. All right. I'll turn it back. Thanks so much. Congrats on the question.

Speaker #4: So I do think if we are if we have capital available to us and we have the opportunity to utilize someone else's balance sheet but we get a fee stream, it certainly makes acquisition a little more palatable.

Speaker #4: Thanks, Mike.

Speaker #1: Thank you for your questions, Mike. Our next question comes from the line of Mario Saric with Scotiabank. Mario, your line is now open.

Speaker #4: But in today's existing market for us, just to go out and buy 100% of a high-quality retail asset, I think it would be very hard-pressed to go over our 9% unlevered hurdle.

Speaker #8: Thank you and good morning. Just sticking to the potential kind of dispositions that are not in the plan, Jonathan, you've mentioned or referenced kind of low growth assets as being a possibility.

Speaker #4: Because you're just if you're finding an asset that has 3% growth, it's not going to be at a 6 cap. It's going to be something lower.

Speaker #8: Relative to your kind of three-year, three-and-a-half percent, kind of same part and why target, what would you kind of consider as being low growth?

Jonathan Gitlin: Then, once you have that type of partnership, I'm gonna use an old term here, but it gives you a bit of a hunting partner, especially if you have a well-heeled institutional partner who has equal sensibility around what, you know, what is good to own. So I do think if we are, if we have capital available to us and we have the opportunity to utilize someone else's balance sheet, but we get a fee stream, it certainly makes acquisition a little more palatable. But in today's existing market, for us just to go out and buy 100% of a high-quality retail asset, I think it would be very hard-pressed to, to go over our 9% unlevered hurdle.

Speaker #8: And what percentage of the portfolio could that comprise?

Speaker #4: And if I could buy a piece of that at what is a much higher yield than what the open market or the private market would permit, I would do that all day long.

Speaker #4: Yeah. So we've put out guidances. Mario, of between three and a half to four percent. We said at our investor day that for us, we expect to get at least three and a half percent same property NOI.

Speaker #4: Hence the 175 million of MCIB that we participated in since early 2025.

Speaker #4: And that came through—those guidance numbers came through—a very in-depth review of the entire portfolio: every single property, every single tenancy, from bottom up.

Speaker #3: Okay. Got it. And then last one before I turn it back. I know you said exploring and discussions. That's probably you may want to punt this question, but what would be the sort of potential range or quantum of assets that you would be looking to potentially sell to a JV partner?

Speaker #4: And it gives us, in doing that exercise and in very intense asset management, a good perspective of what assets are going to contribute over the next three years and what assets are going to take away from that objective.

Jonathan Gitlin: Because you're just, you know, if you're finding an asset that has 3% growth, it's not gonna be at a 6 cap, it's gonna be something lower. So that's the quandary that we'd be in from just a straight-out acquisition perspective. And quite frankly, Mike, just going back to the point I made earlier, I've got an awesome portfolio right in front of me that I know, that I love, and if I could buy a piece of that at what is a much higher yield than what the open market or the private market would permit, I would do that all day long. Hence the CAD 175 million of NCIB that we participated in since early 2025.

Speaker #4: And thankfully, the vast majority of our portfolio will contribute. There are some, however, that have larger anchor tenants that have, let's say, flat projections going forward.

Speaker #4: I'll give you a for instance. Walmart—we know that a lot of their historic leases have limited growth, if any. But they're high quality.

Speaker #4: And so there's no set quantum, Mike, but we would balance it with all the other considerations. I know it's a bit of a vague answer.

Speaker #4: They're excellent and predictable creators of an income stream, which a lot of institutional investors, I think, would covet in this type of environment. So for us, those don't necessarily contribute to the quantitative output of 3.5%.

Speaker #3: No, I get it. I understood. Can't help but try it. All right. I'll turn it back. Thanks so much. Congrats on the question.

Mike Markidis: Okay, got it. And then last one before I turn it back. I know you said exploring and discussions, that's probably, you may want to punt this question, but what would be the sort of potential range or quantum of assets that you would be looking to potentially sell to a JV partner?

Speaker #4: Thanks, Mike.

Speaker #1: Thank you for your questions, Mike. Our next question comes from a line of Mario Saric with Scotiabank. Mario, your line is now open.

Speaker #4: But from a qualitative perspective, they're good. They're predictable. And they're very strong assets with limited risk. So for us, if we could keep a 50% interest, sell a 50% interest, and get a fee stream, all of a sudden, it takes a lower-growth asset and makes it a little more aggressively growth-oriented because of the fee stream that is attached to it.

Jonathan Gitlin: I mean, again, it really, we don't have it in our business plan at this point, so there's no specific number. We would just balance, as we always do, the considerations around what could we do with the capital and what the type of accretion would be from a fee stream perspective. And so there's no set quantum, Mike, but we would balance it with all the other considerations. I know it's a bit of a vague answer.

Speaker #5: Thank you and good morning. Just sticking to the potential kind of dispositions that are not in the plan, Jonathan, you've mentioned or referenced kind of low growth assets as being a possibility.

Speaker #5: Relative to your kind of three-year three-and-a-half percent kind of same part and why target, what would you kind of consider as being low growth?

Speaker #4: So, for us, there's a few of those assets in our portfolio. Not, as I said, an overwhelming amount because of all the work we've done over the last few years to really curtail the portfolio through dispositions and the addition of excellent properties through developments or acquisitions.

Speaker #5: And what percentage of the portfolio could that comprise?

Speaker #4: Yeah. So we've put out guidances. Mario, of between three and a half to 4%. We said at our investor day that we for us, we expect to get at least three and a half percent same property NOI.

Mike Markidis: No, I, I get it. I understood. Can't, can't help but trying. All right, I'll turn it back. Thanks so much. Congrats on the quarter.

Speaker #7: Okay. And it may or may not be related, but your I was hoping you could expand on the commentary pertaining to RIOCAN tenant independence.

Jonathan Gitlin: Thanks, Mike.

Operator: Thank you for your questions, Mike. Our next question comes from the line of Mario Saric with Scotiabank. Mario, your line is now open.

Speaker #4: And that came through those guidance numbers came through a very in-depth review of the entire portfolio, every single property, every single tenancy from bottom up.

Speaker #7: I think you also highlighted that in the letter to unit holders. This quarter, perhaps maybe setting an example where you think that benefits been crystallized.

Mario Saric: Thank you, and good morning. Just sticking to the potential kind of dispositions that are not in the plan. Jonathan, you mentioned or referenced kind of low growth assets as being a possibility, you know, relative to your kind of 3-year, 3.5% kind of same property-wide target. What would you kind of consider as being low growth, and what percentage of the portfolio could that comprise?

Speaker #7: Just curious on some expanded thoughts on these.

Speaker #4: And it gives us, in doing that exercise and in very intense asset management, gives us a good perspective of what assets are going to contribute over the next three years and what assets are going to take away from that objective.

Speaker #4: Sure. Look, we have a landscape in Canada where we've got a lot of exceptional REITs. But there are some of them that are affiliated with other entities.

Speaker #4: And operationally, I would have to think that there are certain constraints and limitations around what the landlord could do, based on what the interests of the tenants are.

Speaker #4: And thankfully, the vast majority of our portfolio will contribute. There larger anchor tenants that have, let's say, flat projections going forward. I'll give you a for instance.

Speaker #4: We, of course, have similar considerations. We always take into consideration the needs of our tenants long-term. But we are the ultimate decision-makers. There is absolutely no influence from any other entity other than our own.

Jonathan Gitlin: Yeah, so we put out guidance, as you know, Mario, of between 3.5 to 4%. We said at our investor day that we, you know, for us, we expect to get at least 3.5% same property NOI. And that came through, that those guidance numbers came through a very in-depth review of the entire portfolio, every single property, every single tenancy from bottom up. And it gives us, in doing that exercise and in very intense asset management, gives us a good perspective of what assets are going to contribute over the next three years and what assets are going to take away from that objective. And thankfully, the vast majority of our portfolio will contribute. There are some, however, that have larger anchor tenants that have, let's say, flat projections going forward.

Speaker #4: Walmart, we know that a lot of their historic leases have limited growth, if any. And but they're high quality. They're excellent and predictable creators of an income stream, which a lot of institutional investors, I think, would covet in this type of environment.

Speaker #4: And I think that does, in a growth environment like we're in today, this super cycle that I think we're in, it allows us to really take the governors off and do what is best for our unitholders without having consideration to any other, to any other constituents.

Speaker #4: So for us, those don't necessarily contribute to the quantitative output of three and a half percent. But from a qualitative perspective, they're good. They're predictable.

Speaker #4: So it really, I think, it puts us in a very in a very advantageous position going forward relative to some of those that might have to take a much deeper view and consideration of their anchor tenants, which is and desires.

Speaker #4: And they're very strong assets with limited risk. So for us, if we could keep a 50% interest, sell a 50% interest and get a fee stream, all of a sudden, it takes a lower growth asset and it makes it a little more aggressively growth-oriented because of the fee stream that is attached to it.

Speaker #4: And it just means for things like, if you have a vista, you can obstruct it a little bit. Even if—I would say that if you have an anchor tenant who is a more influential party, they would tell you not to do that.

Speaker #4: So for us, that's there's a few of those assets in our portfolio. Not, as I said, an overwhelming amount because of all the work we've done over the last few years to really curtail the portfolio through dispositions and the addition of excellent properties through developments or acquisitions.

Jonathan Gitlin: I'll give you a for instance, Walmart. We know that a lot of their historic leases have limited growth, if any, and, but they're high quality. They're excellent, and predictable, creators of an income stream, which a lot of institutional investors, I think, would covet in this type of environment. So for us, those don't necessarily contribute to the quantitative output of 3.5%, but from a qualitative perspective, they're good, they're predictable, and they're very strong assets with limited risk. So for us, if we could keep a 50% interest, sell a 50% interest, and get a fee stream, all of a sudden it takes a lower growth asset and it makes it a little more aggressively growth oriented because of the fee stream that is attached to it.

Speaker #4: We can go ahead and do that. So there are just little things like that. But of course, it also allows us to drive rents as aggressively as possible.

Speaker #3: Okay. And it may or may not be related, but your I was hoping you could expand on the commentary pertaining to RIOCAN tenant independence.

Speaker #4: And I think if you look at some of the sponsored REITs, there are lower rent lifts than we get. And I think that's now starting to be demonstrative of the fact pattern I just talked about.

Speaker #3: I think you also highlighted that in the letter to unit holders. This quarter, perhaps maybe setting examples where you think that benefits been crystallized.

Speaker #7: Got it. Okay. My last question more of a qualitative question. Your comments on expected strong budget lease spreads over the next three years. You talked a little bit about the investor day.

Speaker #3: Just curious on some expanded thoughts on these.

Speaker #4: Sure. Look, we have a landscape in Canada where we've got a lot of exceptional REITs. But there are some of them that are affiliated with other entities.

Speaker #7: How much of that confidence would you say is RioCan-specific versus a call on the broader market expectations? And can we delve into a couple of the factors, or top factors or trends, that you think can sustain these types of budget lease spreads for that long? Three years is not a short time frame.

Jonathan Gitlin: So for us, that's, there's a few of those assets in our portfolio, not, as I said, an overwhelming amount because of all the work we've done over the last few years to really curtail the portfolio through dispositions and the addition of excellent properties through developments or acquisitions.

Speaker #4: And operationally, I would have to think that there are certain constraints and limitations around what the landlord could do based on what the interests of the tenants are.

Speaker #7: Thanks.

Mario Saric: Okay. And it may or may not be related, but, you're, I was hoping you could expand on the commentary pertaining to RioCan tenant independence. I think you also highlighted that in the letter to uniholders, this quarter, you know, perhaps maybe some examples where you think that benefit's been crystallized. Just curious on some expanded thoughts on the issue.

Speaker #8: So Mario, I missed the first part of your question. I think you just said general retail fundamentals, or was there something more specific?

Speaker #4: And I think that does, in a growth environment like we're in today, this super cycle that I think we're in, it allows us to really take the governor's off and do what is best for our unit holders without having consideration to any other to any other constituents.

Speaker #4: Sorry. No. I was just asking about your comment on the call earlier, just talking about expectation for strong blended lease spreads over three years.

Speaker #8: Oh, leasing spreads. Sure.

Speaker #4: How much of that is RioCan-specific versus a broader market confidence?

Jonathan Gitlin: Sure. Look, we have a landscape in Canada where we've got a lot of exceptional REITs, but there are some of them that are affiliated with other entities. And operationally, I would have to think that there are certain constraints and limitations around what the landlord could do based on what the interests of the tenants are. We, of course, have similar considerations. We always take into consideration the needs of our tenants long term, but we are the ultimate decision makers.

Speaker #8: Sure. So I feel very—I mean, the team feels very confident in our ability to continue to generate leasing spreads. I think it's a byproduct of the fact that, yes, it is a very strong retail market. That will impact everyone—all retail landlords—in a similar manner.

Speaker #8: We just think it'll be more acute with RIOCAN because we do start from a bit of a the mark-to-market opportunities are quite evident with our average rents across the portfolio being about 28% lower than what we're getting now on new rents.

Speaker #4: And it just means for things like if you have a vista, you can obstruct it a little bit even if I would say that if you have a an anchor tenant who is a more influential party, they would tell you not to do that.

Jonathan Gitlin: There is absolutely no influence from any other entity other than our own, and I think that does in a growth environment like we're in today, this super cycle that I think we're in. It allows us to really take the governors off and do what is best for our unitholders without having consideration to any other to any other constituents. So it really, I think, puts us in a very advantageous position going forward, relative to some of those that might have to take a much deeper view and consideration of their anchor tenants' wishes and desires.

Speaker #8: And so I think that really helps us. I also think we've got very significant improvements to our portfolio over the last little while.

Speaker #4: We can go ahead and do that. So there's just there's little things like that. But of course, it also allows us to drive rents as aggressively as possible.

Speaker #8: And a high demographic profile. The tenants are really, really following, and in favor of. And I think that allows us to really push rents and get them closer to where the overall market would permit.

Speaker #8: And I can't speak for our peers, but I certainly know that it gives us a great deal of confidence in capturing that mark-to-market. And that will drive growth for us going forward.

Speaker #3: Got it. Okay. My last question more of a qualitative question. Your comments on expected strong double lease spreads over the next three years. You talked a little bit about the investor day.

Speaker #8: As I said, we've gone through each one of our assets, each one of our tenancies, tenant by tenant, space by space, to get a good sense of what we can extract from them.

Jonathan Gitlin: And it just means, you know, for things like if you have a vista, you can obstruct it a little bit, even if, you know, I would say that if you have an anchor tenant who is a more influential party, they would tell you not to do that. We can go ahead and do that. So there's just little things like that, but of course, it also allows us to drive rents as aggressively as possible. And I think if you look at some of the sponsored REITs, there are lower rent lists than we get, and I think that's now starting to be demonstrative of the fact pattern I just talked about.

Speaker #3: How much of that confidence would you say is RIOCAN-specific versus a call on broader market expectations and kind of can you delve into a couple of the factors or top factors or trends that you think can sustain these types of blended lease spreads for that long, three years is not a short timeframe?

Speaker #8: And that is that's what is rooted in that guidance, or at least that's what the guidance is rooted in. And we feel very confident in our ability to capture that going forward.

Speaker #7: Okay. Thank you.

Speaker #3: Thanks.

Speaker #1: Thank you for your questions. Our next question comes from a line of Dean Wilkinson with CIBC. Dean, your line is now open.

Speaker #4: So Mario, I missed the first part of your question. I think you just said general retail fundamentals, or was there something more specific?

Speaker #5: Sorry. No. I was just asking about your comment on the call earlier, just talking about expectation for strong blended lease spreads over three years.

Speaker #9: Thanks. Everybody. Just want to hook back on the leverage the share buyback and some of the other stuff around that. Would it be fair to say, as you drift more towards 8 times on that debt to EBITDA, that we could see a ramp-up in that share buyback and the $50 million that we've seen so far this year kind of perhaps that's what you're looking at on a quarterly basis?

Mario Saric: ... Got it. Okay, my last, my last question, more of a qualitative question. Your comments on expected strong blended lease spreads over the next three years, you talked about a bit at the Investor Day. How, how much of that confidence would you say is RioCan specific versus a call on broader market expectations? And kind of, can you delve into a couple of the factors or top factors or trends that you think can, can sustain these types of blended lease spreads for that long? Three years is not a short time frame. Thank you.

Mario Saric: Got it. Okay, my last, my last question, more of a qualitative question. Your comments on expected strong blended lease spreads over the next three years, you talked about a bit at the Investor Day. How, how much of that confidence would you say is RioCan specific versus a call on broader market expectations? And kind of, can you delve into a couple of the factors or top factors or trends that you think can, can sustain these types of blended lease spreads for that long? Three years is not a short time frame. Thank you.

Speaker #5: How much of that is RIOCAN-specific versus a broader market confidence?

Speaker #4: Sure. Sure. So I feel very I mean, the team feels very confident in our ability to continue to generate leasing spreads. I think it's a byproduct of the fact that, yes, it is a very strong retail market that will impact everyone all retail landlords in a similar manner.

Speaker #9: Absent any other opportunities? And is that factored into that guidance number, Dennis?

Speaker #4: We just think it'll be more acute with RIOCAN because we do start from a bit of a the mark-to-market opportunities are quite evident with our average rents across the portfolio being about 28% lower than what we're getting now on new rents.

Speaker #4: Dennis, you want to take that?

Jonathan Gitlin: So, Mario, I missed the first part of your question. I think you just said general retail fundamentals, or was there something more specific?

Speaker #3: Sure. So, I don't think we've really spelled out exactly how we would allocate capital. I think we are sort of leaving ourselves the flexibility to allocate capital based on the opportunities in front of us.

Speaker #4: And so I think that really helps us. I also think we've got a very significant improvements to our portfolio over the last little while.

Mario Saric: Sorry, no. I was just asking about your comment on the call earlier, just talking about expectation for strong blended lease spreads over three years.

Speaker #4: And a high demographic profile, the tenants are really, really following. And in favor of. And I think that allows us to really push rents and get them closer to where the overall market would permit.

Speaker #3: So, we haven't put a specific number out on the NCIB. We did put a number out in our Investor Day, just looking at our ability to allocate excess capital every year, as well as the fact that we still would have another nearly $700 million of capital coming back from RioCan Living.

Jonathan Gitlin: Oh, lease spreads. Sure.

Mario Saric: How much of that is RioCan specific, versus the broader market-

Jonathan Gitlin: Sure.

Mario Saric: Confidence.

Jonathan Gitlin: Sure. So I feel very, I mean, the team feels very confident in our ability to continue to generate leasing spreads. I think it's a byproduct of the fact that, yes, it is a very strong retail market that will impact everyone, all retail landlords, in a similar manner. We just think it'll be more acute with RioCan because we do start from a bit of a, you know... The mark-to-market opportunities are quite evident, with our average rents across the portfolio being about 28% lower than what we're getting now on new, new rents. And so I think that really helps us. I also think we've got, you know, a very significant improvements to our portfolio over the last little while, and a high demographic profile that tenants are really, really following and in favor of.

Jonathan Gitlin: Sure. So I feel very, I mean, the team feels very confident in our ability to continue to generate leasing spreads. I think it's a byproduct of the fact that, yes, it is a very strong retail market that will impact everyone, all retail landlords, in a similar manner. We just think it'll be more acute with RioCan because we do start from a bit of a, you know. The mark-to-market opportunities are quite evident, with our average rents across the portfolio being about 28% lower than what we're getting now on new, new rents. And so I think that really helps us. I also think we've got, you know, a very significant improvements to our portfolio over the last little while, and a high demographic profile that tenants are really, really following and in favor of.

Speaker #4: And I can't speak for our peers, but I certainly know that it gives us a great deal of confidence in capturing that mark-to-market and that will drive growth for us going forward.

Speaker #4: As I said, we've gone through each one of our assets, each one of our tenancies, tenant by tenant, space by space, to get a good sense of what we can extract from them.

Speaker #3: So, certainly, share buybacks would be a priority, but it will be dependent on where the share price sits at a given point in time when the capital is available to us.

Speaker #4: And that is that's what is rooted in that guidance, or at least that's what the guidance is rooted in. And we feel very confident in our ability to capture that going forward.

Speaker #3: And of course, trading off against we're constantly trading off, as you'd imagine, against other opportunities. So that's how I would explain that. I think the volume of capital coming in gives you a sense in terms of the sale we have to close.

Speaker #3: Okay. Thank you.

Speaker #1: Thank you for your questions. Our next question comes from a line of Dean Wilkinson with CIBC. Dean, your line is now open.

Speaker #9: Right. Right. I guess the other one to look at then in just terms of retained capital is the distribution and increases now that we're looking at a core FFO or core AFFO number.

Jonathan Gitlin: And I think that allows us to really push rents and get them closer to where the overall market would permit. And, you know, I can't speak for our peers, but I certainly know that it gives us a great deal of confidence in capturing that mark-to-market, and that will drive growth for us going forward. As I said, we've gone through each one of our assets, each one of our tenancies, tenant by tenant, space by space, to get a good sense of what we can extract from them, and that is, that's what is rooted in that guidance, or at least that's what the guidance is rooted in, and we feel very confident in our ability to capture that going forward.

Speaker #6: Thanks. Everybody. Just want to hook back on the leverage the share buyback and some of the other stuff around that. Would it be fair to say, as you drift more towards eight times on that debt-to-EBITDA, that we could see a ramp-up in that share buyback and the $50 million that we've seen so far this year kind of perhaps that's what you're looking at on a quarterly basis?

Speaker #9: Do you have a target payout ratio in mind there on that metric? And how are you thinking about sort of the dividend or distribution as we go forward?

Speaker #4: So the target payout ratio, we had projected that at investor day. And I think that is a number that we fully anticipate sticking with.

Speaker #6: Absent any other opportunities? And is that factored into that guidance number, Dennis?

Speaker #4: Our dividend or distribution policy is something that is going to be a year-by-year consideration. And it really depends on what else we could do with those funds.

Mario Saric: Okay. Thank you.

Speaker #5: Dennis, you want to take that?

Operator: Thank you for your questions. Our next question comes from the line of Dean Wilkinson with CIBC. Dean, your line is now open.

Speaker #4: For us, it's all about having a high amount of discipline. And we have such great opportunities for that capital at this point. And we feel that the NCIB is just an alternative way of giving back to our unit holders.

Speaker #3: Sure. So I don't think we've really spelled out exactly how we would allocate capital. I think we are sort of leaving ourselves the flexibility to allocate capital as based on the opportunities in front of us.

Dean Wilkinson: Thanks, everybody. Just want to hook back on the leverage, the share buyback, and some of the other stuff around that. Would it be fair to say, as you drift more towards 8 times on that debt to EBITDA, that we could see a ramp-up in that share buyback and, you know, the CAD 50 million that we've seen so far this year, kind of perhaps that's what you're looking at on a quarterly basis, absent any other opportunities? And is that factored into that guidance number, Dennis?

Dean Wilkinson: Thanks, everybody. Just want to hook back on the leverage, the share buyback, and some of the other stuff around that. Would it be fair to say, as you drift more towards 8x on that debt to EBITDA, that we could see a ramp-up in that share buyback and, you know, the CAD 50 million that we've seen so far this year, kind of perhaps that's what you're looking at on a quarterly basis, absent any other opportunities? And is that factored into that guidance number, Dennis?

Speaker #4: So, it really is going to be a consideration of what other alternatives we have at that point, as to whether or not the distribution gets raised.

Speaker #3: So we haven't put a specific number out on NCIB. We did put a number out in our investor day just looking at our ability to allocate excess capital every year, as well as we still would have another nearly $700 million of capital coming back from RIOCAN Living.

Speaker #4: And at this point, we have a pretty robust distribution relative to our peers and given the strength of our portfolio. So we feel pretty confident about it.

Speaker #4: But it's going to be something that we will revisit next year, for sure. And we will make the appropriate recommendation to our Board based on where things sit at that point in time.

Speaker #3: So certainly, share buybacks would be a priority, but it will be dependent on where the share price sits at a given point in time when the capital is available to us.

Speaker #3: Yeah. So the target we'd put out is just a reminder is 70 approximately 70% core FFO and approximately 80% core AFFO. So I think that's just and we should be able to stick it around that range.

Jonathan Gitlin: Dennis, you want to take that?

[Company Representative] (RioCan Real Estate Investment Trust): Sure. So I don't think we've really spelled out exactly how we would allocate capital. I think we are sort of leaving ourselves the flexibility to allocate capital, you know, as, you know, based on the opportunities in front of us. We haven't put a specific number out on NCIB. We did put a number out in our Investor Day, just looking at our ability to allocate excess capital every year, as well as, you know, we still would have another, you know, nearly CAD 700 million of capital coming back from RioCan Living. Certainly, share buybacks would be a priority, but it will be dependent on, you know, where the share price sits at a given point in time when the capital is available to us.

Dennis Blasutti: Sure. So I don't think we've really spelled out exactly how we would allocate capital. I think we are sort of leaving ourselves the flexibility to allocate capital, you know, as, you know, based on the opportunities in front of us. We haven't put a specific number out on NCIB. We did put a number out in our Investor Day, just looking at our ability to allocate excess capital every year, as well as, you know, we still would have another, you know, nearly CAD 700 million of capital coming back from RioCan Living. Certainly, share buybacks would be a priority, but it will be dependent on, you know, where the share price sits at a given point in time when the capital is available to us.

Speaker #3: And then, as our income grows, potentially grow the distribution or, as Jonathan said, there are other ways to return capital to shareholders. And NCIB right now appears to be the more efficient and value-accretive method of doing that.

Speaker #6: Right. Right. I guess the other one to look at then in just terms of retained capital is the distribution and increases now that we're looking at a core FFO or core AFFO number.

Speaker #3: And our yield, we do, as Jonathan said, believe our yield is quite attractive. And it's actually reasonably tax-efficient as well— we're about 60% taxable.

Speaker #6: Do you have a target payout ratio in mind there on that metric? And how are you thinking about sort of the dividend or distribution as we go forward?

Speaker #3: Which matters to some to certain unit holders out there.

Speaker #9: Oh, for sure. It's a big consideration. Just then, the last one for me—just looking at the RioCan Living and obviously, there's been a lot of talk, the condos, all the rest, that stuff.

Speaker #4: So the target payout ratio, we had projected that at investor day. And I think that is a number that we fully anticipate sticking with.

[Company Representative] (RioCan Real Estate Investment Trust): Of course, trading off against, you know, we're constantly trading off, as you'd imagine, against other opportunities. So that's how I would explain that. I think the volume of capital is going to give you a sense, you know, in terms of the sale, the asset sales.

Dennis Blasutti: Of course, trading off against, you know, we're constantly trading off, as you'd imagine, against other opportunities. So that's how I would explain that. I think the volume of capital is going to give you a sense, you know, in terms of the sale, the asset sales.

Speaker #9: Yeah, we don't need to go through that. You've got some operating weakness there, which would be expected given the environment that we're in. Are you looking at sort of kind of building some vacancy in the portfolio to allow for potential purchasers to have a bit more of attractive upside there?

Speaker #4: Our dividend or distribution policy is something that is going to be a year-by-year consideration, and it really depends on what else we could do with those funds.

Speaker #4: For us, it's all about having a high amount of discipline and we have such great opportunities for that capital at this point. And we feel that the NCIB is just an alternative way of giving back to our unit holders.

Dean Wilkinson: Right. Right. I guess the other one to look at then in just terms of retained capital is the distribution and increases. Now that we're looking at a core FFO or core AFFO number, do you have a target payout ratio in mind there on that metric, and how are you thinking about sort of the dividend or distribution as we go forward?

Speaker #9: Or just, how are you thinking of managing that over the next 12 months or so, given that it's something that you're looking to offload?

Speaker #4: Sure. I'll start, and I can hand it over to John Ballantyne if he has any further color. But no, we operate these assets as though we'll own them forever.

Speaker #4: So it really is going to be a consideration of what other alternatives we have at that point as to whether or not the distribution gets raised.

Speaker #4: We are not creating vacancy. Whatever vacancy you're seeing is a byproduct of a market that is tougher, given the face of a lot of condo deliveries, which serve as competition for some of the RIOCAN Living assets at this point.

Speaker #4: And at this point, we have a pretty robust distribution relative to our peers and given the strength of our portfolio. So we feel pretty confident about it.

Jonathan Gitlin: So the target payout ratio is. We had projected that at Investor Day. And I think, you know, that is a number that we fully anticipate sticking with. You know, our dividend or distribution policy is something that is going to be a year-by-year consideration, and it really depends on what else we could do with those funds. For us, it's all about having a high amount of discipline, and we have such great opportunities for that capital at this point, and we feel that the NCIB is just an alternative way of giving back to our unit holders. So it really is going to be a consideration of what other alternatives we have at that point, as to whether or not the distribution gets raised.

Speaker #4: But it's going to be something that we will revisit next year for sure. And we will make the appropriate recommendation to our board based on where things sit at that point in time.

Speaker #4: But no, we're not going about creating vacancy to create more upside for potential purchasers, quite frankly. The market's sort of doing that for us.

Speaker #4: If you could see our occupancy, it has flipped over the last two quarters. And I think that's plenty. But John, do you have any further?

Speaker #3: And then as our income grows, potentially grow the distribution or as Jonathan said, there's other ways to return capital to shareholders. And NCIB right now appears to be the more efficient and value-accretive method of doing that.

Speaker #3: No, I would just add to what you said, Jonathan. We're managing these properties very carefully. Both on the efficiency basis, on the cost, but as well as working incentives and really keeping a close eye on market rates, particularly in the GTA, where it has been very volatile.

Jonathan Gitlin: At this point, we have a pretty robust distribution relative to our peers and given the strength of our portfolio. So we feel pretty confident about it, but it's going to be something that we will revisit next year for sure, and we will make the appropriate recommendation to our board based on where things sit at that point in time.

Speaker #3: And our yield, we do as Jonathan said, believe our yield is quite attractive. And it's actually reasonably tax-efficient as well. We're about 60% taxable.

Speaker #3: So, no, we're actually looking to maximize the revenues where we can on these properties, and making them sale-ready.

Speaker #3: Which matters to some to certain unit holders out there.

Speaker #9: Great. That's it for me. I hand it back. Thanks, guys.

Speaker #4: Thanks, Dean.

[Company Representative] (RioCan Real Estate Investment Trust): Yeah. So the target we put out is, just a reminder, 70%, approximately 70% Core FFO and approximately 80% Core AFFO. So I think that's. And, you know, we should be able to stick it around that range, and then as our income grows, potentially grow the distribution, or as Jonathan said, there's other ways to return capital to shareholders. And NCIB right now appears to be the more efficient and value accretive method of doing that. And our yield, we do, as Jonathan said, believe our yield is quite attractive. And, it's actually reasonably tax efficient as well. We're about 60% taxable, which matters to certain unitholders out there.

Dennis Blasutti: Yeah. So the target we put out is, just a reminder, 70%, approximately 70% Core FFO and approximately 80% Core AFFO. So I think that's. And, you know, we should be able to stick it around that range, and then as our income grows, potentially grow the distribution, or as Jonathan said, there's other ways to return capital to shareholders. And NCIB right now appears to be the more efficient and value accretive method of doing that. And our yield, we do, as Jonathan said, believe our yield is quite attractive. And, it's actually reasonably tax efficient as well. We're about 60% taxable, which matters to certain unitholders out there.

Speaker #6: Oh, for sure. It's a big consideration. Just then the last one for me, just looking at the RIOCAN Living and obviously, there's been a lot of talk, the condos, all the rest, that stuff.

Speaker #1: Thank you for your questions. Our next question comes from the line of Fred Blondeau with Green Street. Fred, your line is now open.

Speaker #6: Yeah, we don't need to go through that. You've got some operating weakness there, which would be expected given the environment that we're in. Are you looking at sort of kind of building some vacancy in the portfolio to allow for potential purchasers to have a bit more of attractive upside there?

Speaker #10: Thank you. And good morning. On the yard day LHVC sublease matter, how do you see insolvency proceedings moving ahead now that the court has disallowed the receiver's proposed tenant fair weather to take up the vacated space?

Speaker #6: Or just how are you thinking of managing that over the next 12 months or so, given that it's something that you're looking to offload?

Speaker #4: I think the court rendered its decisions. Now we're considering next steps, and we'll keep everyone apprised. But I think at this point, that's all I would comment about it.

Speaker #4: Sure. I'll start and I can hand it over to John Ballantyne if he has any further color. But no, we operate these assets as though we'll own them forever.

Speaker #4: And again, as we've already suggested, Fred, we've—

Dean Wilkinson: Oh, for sure. It's a big, it's a big consideration. Just then the last one for me, just looking at the RioCan Living and, and, you know, obviously there's been a lot of talk, the condos, all the rest of that stuff. Yeah, yeah, we don't need to go through that. You've got some operating weakness there, which would be expected given the environment that we're in. Are you looking at sort, you know, kind of building some vacancy in the portfolio to allow for potential purchasers to have a bit more of attractive upside there? Or just how are you thinking of managing that over the next 12 months or so, given that it's, it's something that you're looking to offload?

Speaker #10: Okay. No, that's absolutely fair. But.

Speaker #4: Yeah. And from a financial perspective, we've already threw a combination of offsets and write-downs we think it has de minimis impact if any on RIOCAN financially.

Speaker #4: But no, we're not going about creating vacancy to create more upside for potential purchasers. Quite frankly, the market's sort of doing that for us.

Speaker #4: Going forward.

Speaker #3: And just to really fast forward on that, Fred, oh, sorry, just a quick summary on just the overall JV, not just the Yorktale asset.

Speaker #4: If you could see our occupancy, it has flipped over the last few quarters. And I think that's plenty. But John, do you have any further?

Speaker #3: Every other asset is either sold or for sale, or we've foreclosed on it. So out of the 13 assets, this Yorktale one is the only one that's sort of left to be dealt with.

Jonathan Gitlin: Sure. I'll start, and I can hand it over to John Valentine if he has any further color. But, no, we operate these assets as though we'll own them forever. We are not creating vacancy. Whatever vacancy you're seeing is a by-product of a market that is tougher, given the pace of a lot of condo deliveries, which serve as competition for some of the RioCan Living assets at this point. But no, we're not going about creating vacancy to create more upside for potential purchasers. Quite frankly, the market's sort of doing that for us. If you could see our occupancy, it has slipped over the last few quarters, and I think that's plenty. But, John, do you have any further?

Speaker #3: And as Jonathan said, there is no expected financial impact from this JV going forward. So from our perspective, this chapter is behind us. And the assets have been dealt with or there's a couple that are still in the sale process with a broker.

Speaker #3: So no, we're actually looking to maximize the revenues where we can on these properties. And making them sale-ready.

Speaker #6: Great. That's it for me. I hand it back. Thanks, guys.

Speaker #3: That's easy enough to deal with. And really, that's in the hands of the creditors. So from a RIOCAN perspective, this is a closed chapter.

Speaker #5: Thanks, Dean.

Speaker #1: Thank you for your questions. Our next question comes from the line of Fred Blondeau, with Green Street. Fred, your line is now open.

Speaker #10: Yep. Absolutely. But I guess my real question would was more like, should a tenant not be found in time? Would there be any damages that they really could possibly face?

Speaker #7: Thank you. And good morning. On the yard day LHVC sublease matter, how do you see insolvency proceedings moving ahead now that the court has disallowed the receiver's proposed tenant fair weather to take up the vacated space?

John Ballantyne: No, I would just add to what you said, Jonathan. You know, we're managing these, these properties very carefully, both on the efficiency basis, on the cost, but as well as working incentives and really keeping a close eye on market rates, particularly in the GTA, where it has been very volatile. So no, we're actually looking to maximize the revenues where we can on these properties and, and making them sale ready.

Speaker #10: And it looks like from your previous answer, it's pretty much dealt with at the moment.

Speaker #4: That is correct. No damages that are of any materiality.

Speaker #10: Okay. And one last for me, maybe a bit easier. Given that the Kenyon tenant pool is not that deep, I was wondering which particular tenant types would allow for the growth in new lease rents over the next, call it, over the next two or three years.

Speaker #4: I think the court rendered its decisions. Now we're considering next steps. And we'll keep everyone apprised. But I think at this point, that's all I would comment about it.

Dean Wilkinson: Great. That's it for me. I'll hand it back. Thanks, guys.

Jonathan Gitlin: Thanks, Dean.

Speaker #4: And again, as we've already suggested, Fred, we.

Speaker #6: Okay. No, that's absolutely fair. But.

Operator: Thank you for your questions. Our next question comes from the line of Fred Blondeau with Green Street. Fred, your line is now open.

Speaker #4: So the Canadian tenant pool, I mean, I think it is pretty deep relative to the amount of retail space we have. If you're comparing it to the United States, we have about 60% of the retail space that they have per capita.

Speaker #4: Yeah. And from a financial perspective, we've already threw a combination of offsets and write-downs we think it has de minimis impact if any on RIOCAN financially.

Speaker #4: And I think, given that, our tenant pool is pretty deep and growing. And so we think that there are a lot of very strong tenants that are expanding in scope.

Frédéric Blondeau: Thank you, and good morning. On the Yorkdale HBC sublease matter, how do you see insolvency proceedings moving ahead now that the court has disallowed the receiver's proposed tenant, Fairweather, to take up the vacated space?

Fred Blondeau: Thank you, and good morning. On the Yorkdale HBC sublease matter, how do you see insolvency proceedings moving ahead now that the court has disallowed the receiver's proposed tenant, Fairweather, to take up the vacated space?

Speaker #4: Going forward.

Speaker #3: And just to really fast forward on that, Fred, sorry, just a quick summary on just the overall JV, not just the Yorktale asset. Every other asset is either sold or for sale or we've foreclosed on it.

Speaker #4: But also very, I would say, very intelligently. If you look at a lot of the new stores that we're doing, they are grocery stores, but they're the discount banners for a lot of the existing incumbent grocery stores.

Speaker #3: So out of the 13 assets, this Yorktale one is the only one that's sort of left to be dealt with. And as Jonathan said, there is no expected financial impact from this JV going forward.

Jonathan Gitlin: I think the court rendered its decisions. Now we're considering next steps, and we'll keep everyone apprised, but I think at this point, that's all I would comment about it. And again, as we've already suggested, Fred, we-

Speaker #4: So for instance, a lot of the new Loblaws deals we're doing, they're not full-line Loblaws. They're either no frills or they're TNT. For Sobe's, I'd say the same thing with Freshco.

Speaker #4: And that's the theme across our portfolio. We're doing a lot of Dollarama deals, a lot of GoodLife Fitness deals, or they're discount banners.

Speaker #3: So from our perspective, this chapter is behind us. And the assets have been dealt with or there's a couple that are still in the sale process with a broker.

Frédéric Blondeau: Okay, well, that's absolutely fair, but-

Fred Blondeau: Okay, well, that's absolutely fair, but-

Jonathan Gitlin: Yeah. From a financial perspective, we've already, through a combination of offsets and write downs, we think it has de minimis impact, if any, on RioCan financially going forward.

Speaker #4: And we're seeing a lot of tenants like TJX thrive in this kind of environment because they do offer well, they do offer products that are going to be attainable in any type of economic backdrop.

Speaker #3: That's easy enough to deal with. And really, that's in the hands of the creditors. So from a RIOCAN perspective, this is a closed chapter.

[Company Representative] (RioCan Real Estate Investment Trust): Just a really fast summary on that, Fred.

Dennis Blasutti: Just a really fast summary on that, Fred.

Speaker #4: And that's really the type of tenant that we seek out to fill our centers. But Oliver, Harrison, do you have any further commentary on some of the other retailers that are really providing strength to our growth profile?

Frédéric Blondeau: I guess-

Fred Blondeau: I guess-

[Company Representative] (RioCan Real Estate Investment Trust): Oh, sorry. Just a quick summary on just the overall JV, not just the Yorkdale asset. Every other asset is either sold or for sale or we've foreclosed on it. So out of the thirteen assets, this Yorkdale one is the only one that's sort of left to be dealt with. And as Jonathan said, there is,

Dennis Blasutti: Oh, sorry. Just a quick summary on just the overall JV, not just the Yorkdale asset. Every other asset is either sold or for sale or we've foreclosed on it. So out of the thirteen assets, this Yorkdale one is the only one that's sort of left to be dealt with. And as Jonathan said, there is,

Speaker #7: Yep. Absolutely. But I guess my real question was more like, should a tenant not be found in time? Would there be any damages that they really could possibly face?

Speaker #3: No, it's more of a portfolio opportunity which is just we also have this as Jonathan said earlier, the leasing super cycle. We do have a number of long-term leases that are now sort of coming to maturity.

Speaker #7: And it looks like from your previous answer, it's pretty much dealt with at the moment.

Speaker #4: That is correct. No damages. That are of any materiality.

Frédéric Blondeau: Mm-hmm

Fred Blondeau: Mm-hmm

[Company Representative] (RioCan Real Estate Investment Trust): ... no expected financial impact from this JV going forward. So, from our perspective, this chapter is behind us, and the assets have been dealt with or, you know, there's a couple that are still in the sale process with a broker. That's easy enough to deal with, and really that's in the hands of the creditors. So from a RioCan perspective, this is a closed chapter.

Dennis Blasutti: No expected financial impact from this JV going forward. So, from our perspective, this chapter is behind us, and the assets have been dealt with or, you know, there's a couple that are still in the sale process with a broker. That's easy enough to deal with, and really that's in the hands of the creditors. So from a RioCan perspective, this is a closed chapter.

Speaker #7: Okay.

Speaker #3: And one last for me, maybe a bit more easier. Given that the Kenyon tenant pool is not that deep, I was wondering which particular tenant types would allow for the growth in new lease rents over the next call it over the next two, three years.

Speaker #3: And as a result, we have a substantial opportunity to bring those up to market. A lot of them are grocers. A lot of them are value retailers that have performed extremely well over the period of time where they've been in this fixed rent structure.

Speaker #3: Which creates a great opportunity for us to maximize the leasing opportunity while still ensuring that they are financially stable.

Frédéric Blondeau: Yep, absolutely. But I guess my real question was more like, should a tenant not be found in time, would there be any damages that they could possibly face? And looks like from your previous answers, like, you know, it's pretty much dealt with at the moment.

Fred Blondeau: Yep, absolutely. But I guess my real question was more like, should a tenant not be found in time, would there be any damages that they could possibly face? And looks like from your previous answers, like, you know, it's pretty much dealt with at the moment.

Speaker #4: And I think given that, our tenant pool is pretty deep and growing. And so we think that there's a lot of very strong tenants that are expanding in scope.

Speaker #10: Thank you, I appreciate the caller.

Speaker #4: Thanks, Fred.

Jonathan Gitlin: That is correct. No damages that are of any materiality.

Speaker #1: Thank you for your questions, Fred. Our next question comes from Aline Pamber with RBC. Your line is now open.

Frédéric Blondeau: Okay. And one last for me, maybe a bit more, a bit easier. Given that the Canadian tenant pool is not that deep, I was wondering which particular tenant types would allow for the growth in new lease rents over the next, call it over the next two, three years?

Fred Blondeau: Okay. And one last for me, maybe a bit more, a bit easier. Given that the Canadian tenant pool is not that deep, I was wondering which particular tenant types would allow for the growth in new lease rents over the next, call it over the next two, three years?

Speaker #4: Hey, Pammy.

Speaker #4: So for instance, a lot of the new Loblaws deals we're doing, they're not full-line Loblaws. They're either no frills or they're TNT. For Sobe's, I'd say the same thing with Freshco.

Speaker #11: Thanks. Good morning. Morning. Just wanted to come back to the comments around the lower capex at Georgia Mall and Oakville on some of those replacement tenants.

Speaker #11: What were some of the drivers there that drove some of the costs down?

Speaker #4: And that's the theme across our portfolio. We're doing a lot of dollarama deals, a lot of good life fitness deals, or they're discount banner.

Jonathan Gitlin: So the Canadian tenant pool, I mean, I think it is pretty deep relative to the amount of retail space we have if you're comparing it to the United States. We have about 60%-

Speaker #4: Well, I think we ended up doing a single tenancy at Oakville, which really spares us of any demising costs. And it was really just some good work by our leasing team in ensuring that the commitment for landlord’s work and NTIs was generally reduced.

Frédéric Blondeau: Okay

Fred Blondeau: Okay

Jonathan Gitlin: ... of the retail space that they have per capita. And I think, you know, our, given that, our tenant pool is pretty deep and growing. And so we think that there's a lot of very strong tenants that are expanding in scope, but also very, I would say, very intelligently. If you look at a lot of the new stores that we're doing, they are grocery stores, but they're the, you know, the discount banners for a lot of the existing incumbent grocery stores. So for instance, a lot of the new Loblaws deals we're doing, they're not full-line Loblaws. They're either NoFrills or they're TNT. For, you know, Sobeys, I'd say the same thing with FreshCo. And that's the theme across our portfolio. We're doing a lot of Dollarama deals, a lot of GoodLife Fitness deals or their discount banner.

Jonathan Gitlin: Of the retail space that they have per capita. And I think, you know, our, given that, our tenant pool is pretty deep and growing. And so we think that there's a lot of very strong tenants that are expanding in scope, but also very, I would say, very intelligently. If you look at a lot of the new stores that we're doing, they are grocery stores, but they're the, you know, the discount banners for a lot of the existing incumbent grocery stores. So for instance, a lot of the new Loblaws deals we're doing, they're not full-line Loblaws. They're either NoFrills or they're TNT. For, you know, Sobeys, I'd say the same thing with FreshCo. And that's the theme across our portfolio. We're doing a lot of Dollarama deals, a lot of GoodLife Fitness deals or their discount banner.

Speaker #4: And I think that's a byproduct of the fact that the space was so desirable that we had a bit of leverage in those negotiations.

Speaker #4: But then also, it was our construction team who's done a good job of ensuring that we're getting the best possible pricing on any of the landlords' work we have to do.

Speaker #4: So it's a combination of factors, but ultimately, we're very pleased with the result because it attaches to a significant lift in both the tenant quality as well as the income coming in from that space now.

Speaker #4: So, it's a really big win for RioCan. And it's just made bigger by the fact that the costs have been reduced. Did I miss anything, Oliver, or is that?

Jonathan Gitlin: And we're seeing a lot of, you know, tenants like TJX thrive in this kind of environment because they do offer... Well, they do offer products that are going to be attainable in any type of economic backdrop. And that's really the type of tenant that we seek out to fill our centers. But Oliver Harrison, do you have any further commentary on some of the other retailers that are really providing strength to our growth profile? No, it's more of a portfolio opportunity, which is just we also have, as Jonathan said earlier, the leasing super cycle. We do have a number of long-term leases that are now sort of coming to maturity. And as a result, you know, we have a substantial opportunity to bring those up to market.

Jonathan Gitlin: And we're seeing a lot of, you know, tenants like TJX thrive in this kind of environment because they do offer. Well, they do offer products that are going to be attainable in any type of economic backdrop. And that's really the type of tenant that we seek out to fill our centers. But Oliver Harrison, do you have any further commentary on some of the other retailers that are really providing strength to our growth profile? No, it's more of a portfolio opportunity, which is just we also have, as Jonathan said earlier, the leasing super cycle. We do have a number of long-term leases that are now sort of coming to maturity. And as a result, you know, we have a substantial opportunity to bring those up to market.

Speaker #3: Great. Okay. Okay. Sorry. And just—maybe I just wanted to come back to the well, actually. In terms of the retailer, it has been a few years.

Speaker #3: Which creates a great opportunity for us to maximize the leasing opportunity while still ensuring that they are financially stable.

Speaker #3: Can you maybe just talk about how the performance has how the performance has sort of gone relative to maybe your underwriting? And I'm just curious if it might be approaching perhaps in terms of the retail at least, the target organic growth guidance that you've set for the overall portfolio and the three-and-a-half-four percent range, or is it still early days there?

Speaker #6: Thank you, I appreciate the caller.

Speaker #4: Thanks, Fred.

Speaker #1: Thank you for your questions, Fred. Our next question comes from a line of Pammi Burke with RBC. Your line is now open.

Speaker #4: Sure. Thanks, Pammy. So as expected, the first generation tenants, we knew there would be some volatility in it or at least some opportunity to play around with that mix to ensure that we ultimately get it right.

Speaker #4: Hey, Pammi.

Speaker #3: Thanks for morning. Morning. Just wanted to come back to the comments around the lower capex at Georgia Mall and Oakville on some of those replacement tenants.

Jonathan Gitlin: A lot of them are grocers, a lot of them are value retailers that have performed extremely well, you know, over the period of time where they've been in this fixed rent structure, which creates a great opportunity for us to maximize the leasing opportunity while still ensuring that they are financially stable.

Speaker #4: When you're starting de novo and you're creating a unique space like that, you know that you're going to take some shots on tenancies that just don't work out.

Speaker #3: What were some of the drivers there that drove some of the costs down?

Speaker #4: And we knew that going in. So our plan, when going in, had a fairly liberal view on what could happen in terms of certain tenants not working out.

Speaker #4: And I think what we've seen is actually very much in line with that liberal view. And the good news is that it's created so much momentum and specifically over the last year, we've seen so much foot traffic increase that the second generation tenants that we are bringing in or we expect to bring in over the short term are going to be of higher quality far more durable and also, I think, more in fitting with that community.

Oliver Harrison: Mm-hmm. Thank you. I appreciate the color.

Fred Blondeau: Mm-hmm. Thank you. I appreciate the color.

Speaker #4: And I think that's a byproduct of the fact that the space was so desirable that we had a bit of leverage in those negotiations.

Jonathan Gitlin: Thanks, Fred.

Operator: Thank you for your questions, Fred. Our next question comes from the line of Pammi Bir with RBC. Your line is now open.

Speaker #4: But then also, it was our construction team who's done a good job of ensuring that we're getting the best possible pricing on any of the landlords' work we have to do.

Jonathan Gitlin: Hey, Pami.

Pammi Bir: Thanks, good morning. Morning. Just, I just wanted to come back to the comments around the, the lower CapEx at Georgian Mall and Oakville on some of those replacement tenants. What were, what were some of the drivers there that, that drove some of the costs down?

Speaker #4: So we feel very strongly that we're actually at a good point with the well where we are getting where we're getting to a point where it is close to stabilization.

Speaker #4: So it's a really big win for RIOCAN. And it's just made bigger by the fact that the costs have been reduced. Did I miss anything, Oliver, or is that?

Jonathan Gitlin: Well, I think we ended up doing a single tenancy at Oakville, which really spares us of any demising costs. And it was really just some good work by our leasing team in ensuring that the commitment for landlords work and NTIs was generally reduced. And I think that's a byproduct of the fact that the space was so desirable that we had a bit of leverage in those negotiations. But then also it was our construction team, who's done a good job of ensuring that we're getting the best possible pricing on any of the landlords work we have to do. So it's a combination of factors, but ultimately, we're very pleased with the result because it attaches to a significant lift in both the tenant quality as well as the income coming in from that space now.

Speaker #4: And I think that, again, the continued traffic, the continued kind of attention it gets in that downtown West neighborhood will continue to improve the visits there.

Speaker #3: Great. Okay. Okay. Sorry. And just maybe I just wanted to come back to the well, actually. In terms of the retailer, it has been a few years.

Speaker #4: And the last thing I'd say is that we've done a good job of filling up the office we had at least up, but now we've actually got it occupied.

Speaker #4: And I think that will also help move some of the retail a little bit more a little bit more aggressively. But again, we've never relied on the office tenancies to make the retail work.

Speaker #3: Can you maybe just talk about how the performance has how the performance has sort of gone relative to maybe your underwriting? And I'm just curious if it might be approaching perhaps in terms of the retail at least, the target organic growth guidance that you've set for the overall portfolio and the three to four percent range, or is it still early days there?

Speaker #4: But it's not the worst thing that we've got people actually in the offices there. Oliver, do you have any further color on that?

Speaker #3: Just that we've been doing this for a long time. And having kind of experienced opening up new shopping centers, we were very intentional in terms of the structures that we put in place vis-à-vis a lot of these tenancies.

Speaker #4: Sure. Thanks, Pammi. So as expected, the first generation tenants, we knew there would be some volatility in it or at least some opportunity to play around with that mix to ensure that we ultimately get it right.

Jonathan Gitlin: So it's a really big win for RioCan, and it's just made bigger by the fact that the costs have been reduced. Did I miss anything, Oliver, or is that-

Pammi Bir: Great. Okay. Okay, sorry. Just maybe, I just wanted to come back to The Well, actually. In terms of the retailer, you know, it has been a few years. Can you maybe just talk about how the performance has, you know, how the performance has sort of gone relative to maybe your underwriting? And I'm just curious if it might be approaching, perhaps, in terms of the retail, at least, you know, that target organic growth guidance that you've set for the overall portfolio in that 3 to 4% range, or is it still, it's, still early days there?

Speaker #4: When you're starting de novo and you're creating a unique space like that, you know that you're going to take some shots on tenancies that just don't work out.

Speaker #3: Whether it was rent structure, whether it was control options in the landlord's favor. So, we've created a situation where we now have the ability to capitalize on the traffic that this site is driving.

Speaker #4: And we knew that going in. So our plan when going in had a fairly liberal view on what could happen in terms of certain tenants not working out.

Speaker #3: Both from an upgrade from tenancy perspective, but also significant lifts from a rent perspective. And as a result of that, we're very confident that in addition to improving the tenant mix in the retail at the well, over the short to medium term, it's also going to be a great performer from a same property NOI perspective.

Jonathan Gitlin: Sure. Thanks, Pami. So as expected, the first generation tenants, we knew there would be some volatility in it, or at least some opportunity to play around with that mix to ensure that we ultimately get it right. When you're starting de novo and you're creating a unique space like that, you know that you're going to take some shots on tenancies that just don't work out, and we knew that going in. So our plan when going in had a fairly liberal view on what could happen in terms of certain tenants not working out. And I think what we've seen is actually very much in line with that liberal view.

Speaker #11: Yeah, and I would just add to that, in addition to the lifts, we're seeing on the tenant side, we are seeing significant ups in both activations, digital signage, and parking revenues as well.

Speaker #4: So we feel very strongly that we're actually at a good point with the well where we are getting where we're getting to a point where it is close to stabilization.

Speaker #11: So, as the site traffic trapped to the site continues to grow, those revenues are growing as well.

Speaker #4: And I think that the again, the continued traffic, the continued kind of attention it gets in that downtown West neighborhood will continue to improve the visits there.

Speaker #3: That's great. Just the last one. Are these next generation of tenants more on net lease deals as opposed to points, or are you seeing that at this—or still kind of maybe leaning a bit more to a percentage rent?

Speaker #4: And the last thing I'd say is that we've done a good job of filling up the office we had at least up, but now we've actually got it occupied.

Jonathan Gitlin: And the good news is that it's created so much momentum, and specifically over the last year, we've seen so much foot traffic increase, that the second generation tenants that we are bringing in or we expect to bring in over the short term, are going to be of higher quality, far more durable, and also, I think, more in fitting with that community. So we feel very strongly that we're actually at a good point with The Well, where we are getting to a point where it is close to stabilization. And I think that again, the continued traffic, the continued kind of like attention it gets in that downtown West neighborhood, will continue to improve the visits there.

Speaker #4: No, it would be a more conventional rent structure, i.e., minimum rent plus additionals, less reliant on percentage rent—save and except for them outperforming their natural breakpoints.

Speaker #4: But it's not the worst thing that we've got people actually in the offices there. Oliver, do you have any further color on that?

Speaker #4: But that's not going to happen for a little while.

Speaker #3: Right. Sounds good. Thanks so much. I'll turn it back.

Speaker #4: Thanks, Pammy.

Speaker #3: Whether it was rent structure, whether it was control options in the landlord's favor, so we've created a situation where we now have the ability to capitalize on the traffic that this site is driving.

Speaker #1: Thank you for your questions. Our next question is a follow-up from Sam Demani with TV Securities. Sam, your line is now open.

Jonathan Gitlin: And the last thing I'd say is that we've done a you know good job of filling up the office. We had it leased up, but now we've actually got it occupied, and I think that will also help move some of the retail a little bit more you know a little bit more aggressively. But I again, we've never relied on the office tenancies to make the retail work, but it's not the worst thing that we get we get people actually in the offices there. Oliver, do you have any further color on that?

Speaker #5: Thank you. Just had a quick follow-up. I think Dennis should comment that New York Dell is kind of the last location being dealt with.

Speaker #5: But wasn't the Ottawa property also— you had some plans there? I'm just curious if those plans are still moving forward, or if you've kind of walked away there.

Speaker #4: So we had, in fact, could not get to a position where we thought we could get a sufficient return on incremental capital. That would be required to move that business plan forward.

Oliver Harrison: Just that, you know, we've, you know, we've been doing this for a long time and, and having kind of experienced opening up new shopping centers, you know, we were very intentional in terms of the structures that we put in place vis-a-vis a lot of these tenancies, you know, whether it was rent structure, whether it was control options in the landlord's favor. You know, so we've, we've created a situation where we now have the ability, you know, to capitalize on the traffic that this site is driving, you know, both from an upgrade from a tenancy perspective, but also, you know, significant lifts from a rent perspective.

Speaker #4: So it is actually been moved into a sale process.

Speaker #5: Yeah. And I would just add to that, in addition to the lifts, we're seeing on the tenant side we are seeing significant ups in both activations digital signage and parking revenues as well.

Speaker #5: Okay. Very good. Thank you.

Speaker #4: You're welcome. Thanks.

Speaker #1: Thank you for your question, Sam. I am showing no further questions at this time. I would now like to pass the conference back to President and CEO, Jonathan Gitlin.

Speaker #5: So as the site traffic trapped through the site continues to grow, those revenues are growing as well.

Speaker #4: Thanks very much. And thanks, everyone, for joining. I just wanted to end with saying the RIOCAN is entering its next chapter. From a position of strength, we focused on our retail core resilient assets discipline capital allocation and a platform that is built for the future.

Speaker #3: Oh, that's great. Just last one. Are these next generation of tenants more than on net lease deals as opposed to points or are you seeing that at this point or still kind of maybe leaning a bit more to a percentage rent?

Oliver Harrison: You know, as a result of that, we're very confident that in addition to improving the tenant mix in the retail at The Well, you know, over the short to medium term, it's also going to be a great performer from a same-property NOI perspective.

Speaker #4: We believe the conditions are firmly in place to deliver steady, durable growth and lasting value. Thanks, everyone. And we'll speak to you next quarter.

Speaker #4: No, it would be a more conventional rent structure. I.e., minimum rent plus additionals less reliant on percentage rent. Save and except for them outperforming their natural breakpoints.

Jonathan Gitlin: I would just add to that, you know, in addition to the lifts we're seeing on the tenant side, we are seeing significant ups in both activations, digital signage, and parking revenues as well. So, you know, as the traffic to the site continues to grow, those revenues are growing as well.

Speaker #4: But that's not going to happen for a little while.

Speaker #3: Right. Sounds good. Thanks so much. I'll turn it back.

Speaker #4: Thanks, Pammi.

[Analyst]: ... Great. Just a last one. Are these next generation of tenants more on net lease deals as opposed to points, or are you seeing that at this, or still kind of maybe leaning a bit more to a percentage percentage rent?

Pammi Bir: Great. Just a last one. Are these next generation of tenants more on net lease deals as opposed to points, or are you seeing that at this, or still kind of maybe leaning a bit more to a percentage percentage rent?

Speaker #1: Thank you for your questions. Our next question is a follow-up from Sam Damiani with TD Securities. Sam, your line is now open.

Speaker #6: Yeah. Thank you. Just had a quick follow-up. I think Dennis should comment that New York Dell is kind of the last location being dealt with.

Oliver Harrison: No, it would be a more conventional, rent structure, i.e., minimum rent plus additionals, less reliant on, on percentage rent. You know, save and except for, you know, them outperforming their natural breakpoints. But, that's, that's not going to happen for a little while.

Speaker #6: But wasn't the Ottawa property also you had some plans there? I'm just curious if those plans are still moving forward, if you've kind of walked away there.

Speaker #4: So we had, in fact, could not get to a position where we thought we could get a sufficient return on incremental capital. That would be required to move that business plan forward.

Speaker #4: So it is actually been moved into a sale process.

[Analyst]: Right. Sounds good. Thanks so much. I'll turn it back.

Pammi Bir: Right. Sounds good. Thanks so much. I'll turn it back.

Speaker #6: Okay. Very good. Thank you.

Oliver Harrison: Thanks, Tommy.

Oliver Harrison: Thanks, Pammi.

Speaker #4: You're welcome. Thanks.

Operator: Thank you for your questions. Our next question is a follow-up from Sam Damiani with TD Securities. Sam, your line is now open.

Speaker #1: Thank you for your question, Sam. I am showing no further questions at this time. I would now like to pass the conference back to president and CEO, Jonathan Gitlin.

Speaker #4: Thanks very much. And thanks, everyone, for joining. I just wanted to end with saying the RIOCAN is entering its next chapter from a position of strength.

Sam Damiani: Thank you. Just had a quick follow-up. I understand it's your comment that Yorkdale is kind of the last location being dealt with. But wasn't the Ottawa property also, you had some plans there? I'm just curious, if those plans are still moving forward or if you've kind of walked away there.

Speaker #4: We focused on our retail core resilient assets discipline capital allocation and a platform that is built for the future. We believe the conditions are firmly in place to deliver steady, durable growth and lasting value.

Oliver Harrison: So we, in fact, could not get to a position where we thought we could get a sufficient return on incremental capital that would be required to move that business plan forward. So it has actually been moved into a sale process.

Speaker #4: Thanks, everyone. And we'll speak to you next quarter.

Sam Damiani: Okay, very good. Thank you.

Oliver Harrison: You're welcome. Thanks.

Operator: Thank you for your question, Sam. I am showing no further questions at this time. I would now like to pass the conference back to President and CEO, Jonathan Gitlin.

Oliver Harrison: Thanks very much, and thanks, everyone, for joining. I just wanted to end with saying that RioCan is entering its next chapter from a position of strength. We focused on our retail core, resilient assets, disciplined capital allocation, and a platform that is built for the future. We believe the conditions are firmly in place to deliver steady, durable growth and lasting value. Thanks, everyone, and we'll speak to you next quarter.

Operator: That concludes today's call. Thank you for your participation, and have a wonderful rest of your day.

Q4 2025 RioCan Real Estate Investment Trust Earnings Call

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