Q4 2025 RioCan Real Estate Investment Trust Earnings Call

February 18, 2026

A reminder, this conference call is being recorded. I would like to turn the conference over to Miss Jennifer Seuss, senior vice president, general counsel ESG and corporate secretary. Miss you may begin.

Operator: As 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. Ms. Suess, you may begin.

Jennifer Suess: 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. 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.

Thank you and good morning, everyone. I am Jennifer Seuss. Senior vice president, general counsel ESG and corporate Secretary of Rio. Can. Before we begin, I am required to read the following cautionary statements in talking about our financial and operating performance. And in responding to your questions. We may make forward-looking statements including statements concerning rioux, Cannes objective, 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. 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.

Jennifer Suess: 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.

Jennifer Suess: 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 principles measures, GAAP, under IFRS. 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. 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. 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.

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 Gap under IFRS. 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. Non-gaap measures should not be.

Speaker #1: 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.

Jennifer Suess: 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. 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 #1: 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.

Jennifer Suess: 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 thereto, as applicable, together with RioCan's most recent annual information form, that are all available on our website and at www.sedarplus.ca. I will now turn the call over to RioCan's President and CEO, Jonathan Gitlin.

Speaker #1: 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.

Considered as alternatives to net earnings or comparable, metrics, determined in accordance with IFRS as indicators of rioux. Cannes performance, liquidity cash flows and profitability Rio cans management uses these measures to Aid in assessing the trust, underlying core performance and provides these additional measures. So that investors may do the same 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 rioux Cannes, most recent annual information form that are all available on our website and at www.se.com, I will now turn the call over to Rio Camp's president and CEO, Jonathan gitlin.

Speaker #1: 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.

Thank you, Jennifer and good morning to everyone joining us today.

We're pleased to report. Rio can's, fourth quarter and full year results.

Jonathan Gitlin: 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 disciplined strategic capital allocation. 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. This was propelled by the continued outperformance of our core retail assets. We delivered on our capital allocation priorities, repatriating CAD 742 million of capital to strengthen the 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.

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: 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.

We're delivering on those commitments.

In the fourth quarter of the strength of rioux Cannes portfolio. And the effectiveness of our retail Focus strategy. We're once again, demonstrated by 4.5%. Same property. Noi growth.

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.

Jonathan Gitlin: This was propelled by the continued outperformance of our core retail assets. We delivered on our capital allocation priorities, repatriating CAD 742 million of capital to strengthen the 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.

This was propelled by the continued outperformance of our core retail assets. We delivered on our Capital, allocation priorities, repatriating 742 million of capital to strengthen the balance sheet, and support and CIB activities.

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.

Net debt to Eva 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.

Jonathan Gitlin: 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 number one 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. In a market characterized by a shortage of well-located retail space, RioCan continues to deliver consistent and durable growth. RioCan's operating momentum remained strong through Q4.

We're investing in a portfolio with tremendous growth prospects.

Speaker #1: 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%.

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 GNA.

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 and improve portfolio resilience while minimizing capital outlay.

Jonathan Gitlin: RioCan's disciplined execution is complemented by strong ESG performance, including our number one 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. In a market characterized by a shortage of well-located retail space, RioCan continues to deliver consistent and durable growth. RioCan's operating momentum remained strong through Q4.

Rioux, Cannes disciplined execution is complemented by strong ESG performance. Including our number 1 ranking among North. American retail peers in the 2025, gresb real estate assessment

Speaker #1: 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.

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. Rio can continue to deliver consistent and durable growth

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.

Rioux, Cannes, operating momentum remains strong through the fourth quarter.

Retail committed occupancy end of the year at 98.5%.

Jonathan Gitlin: 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. 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.

Leasing performance continued to be exceptional with record. Full year, Blended, leasing spreads of 21.1%.

Speaker #1: 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.

Attention ratio of 93.1%, underscores, the value, tenants place on Rio can's locations, and its operating capabilities.

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.

It also enables us to enhance income quality improve portfolio, resilience while minimizing capital. Outlay.

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.

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.

These results are not coincidental.

Jonathan Gitlin: 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. We're seeing the benefits of what we believe is a leasing super cycle for our portfolio.

Jonathan Gitlin: 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 the Q4 and totaled 3.6% for the full year, highlighting the consistency and resilience of our cash flows. 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. We're seeing the benefits of what we believe is a leasing super cycle for our portfolio.

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: 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're seeing the benefits of what we believe is a leasing super cycle for our portfolio.

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.

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

Jonathan Gitlin: 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. 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. 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.

This gives us flexibility and discretion to shape our tenant base.

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.

We're retaining and resetting rents for high-quality tenants.

We're equally deliberate in replacing those tenants that no longer aligned with our strategic objectives.

A Rio can is an independent Canadian Reit.

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.

Jonathan Gitlin: 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. 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.

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

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.

We can choose the right tenants on the right terms.

Jonathan Gitlin: 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. 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. 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.

Jonathan Gitlin: 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. 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 #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.

Retailers are focused on well-located centers with strong demographic, attributes and compelling, code tendencies.

This precisely describes the centers in Rio cans portfolio.

In recent years, we introduced grocery to a significant number of assets.

Today 86% of our sites include a grocery component.

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.

This anchors daily traffic and supports consistent performance through all Market Cycles.

Jonathan Gitlin: 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. 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.

Beyond grocery. We're deliberately curating. The ideal tenant mix for the communities that we serve.

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.

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 sobies Shoppers Drug Mart, and Dollarama,

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.

These are the retailers that fulfill essential everyday shopping needs and drive reliable, repeat visits.

Jonathan Gitlin: 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. This result isn't a one-off. Rents on new leases since 2022 were, on average, about 27% above those of existing leases.

these attributes create daily, use destinations that generate consistent traffic, strong sales productivity, and resilient income, through all Market Cycles,

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 supercycle.

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: 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 lease and strategy continues to unlock meaningful mark-to-market opportunity throughout our portfolio.

Jonathan Gitlin: 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. This result isn't a one-off. Rents on new leases since 2022 were, on average, about 27% above those of existing leases.

In 2025, we completed leases for 5 million square feet.

The average, net rent for new leases was about $9.65 per square foot, which is approximately 28% higher than our overall average. Rent,

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.

Jonathan Gitlin: 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. This result isn't a one-off. Rents on new leases since 2022 were, on average, about 27% above those of existing leases.

This highlights. The mark-to-market growth potential. Embedded in Rio cans portfolio.

This result isn't a 1-off.

Rents on new leases. Since 2022 were on average about 27% of those of existing leases.

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.

We expect this trend to continue for at least the next 3 years.

Jonathan Gitlin: 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. 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 #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.

During this period, we have 10.1 million square feet of leases maturing hence my reference to a leasing super cycle combined with contractual rent steps and discipline Capital deployment. There's a clear and sustainable runway for continued, core ffo growth,

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.

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: As we look ahead to 2026, we're guiding to same property NOI growth of 3.5%, to $1.60 to $1.62 per unit. This core FFO guidance is in line with the three-year outlook we provided at Investor Day.

Jonathan Gitlin: 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. 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.

Deployment into the high return retail opportunities, flows directly into the durability and predictability captured in our core ffo.

Core ffo provides a clear measure of the durable, earnings power of our retail platform.

Jonathan Gitlin: 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. 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 #1: 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.

It represents an important evolution in how we reflect the performance of our business.

Jonathan Gitlin: 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 the 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. In many ways, Core FFO best captures what differentiates RioCan today.

Core ffo captures, the recurring earnings generated through leasing execution and discipline Capital deployment while removing items that are not representative of the underlying operating strength of the 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.

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 #1: In closing, RioCan enters 2026 with considerable momentum and 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.

As we look ahead to 2026, we're going to see same property. Noi growth of 3.5 to 4% and core ffo of a $1.60 to a $1.62 per unit.

this core ffo guidance is in line with the 3-year Outlook, we provided at investor day

In many ways, core ffo best captures what differentiates Rio can today.

Jonathan Gitlin: 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. In many ways, core FFO best captures what differentiates RioCan today.

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.

Jonathan Gitlin: 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 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.... 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.

high quality necessity based retail portfolio, operating and Supply constrained markets, where leasing momentum and discipline Capital, allocation work together to provide consistent, repeatable results and high risk adjusted returns

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.

Our Outlook reflects confidence in our ability to deliver resilient income sustainable distributions, and long-term value creation.

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.

This quarter's performance is not an outlier. It is another clear validation of the strength of our portfolio and our strategy.

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.

In closing, Rio can enters 2026 with considerable momentum and exceptional portfolio, and a discipline strategy. That consistently generates results.

Jonathan Gitlin: 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.... 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 #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.

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 Rio canan's, current unit price, valuation

Jonathan Gitlin: 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 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. 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 #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.

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 Ludi and then look forward to your questions.

Speaker #2: 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.

Jonathan Gitlin: 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.

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.

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 $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 $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: 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 homesteads, and megacentral Notre Dame's Dollarama and Service Canada.

Starting with ffo. We delivered a187 period 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 Focus strategy.

Dennis Blasutti: 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 $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.

Record operating kpis such as 21.1% Blended leasing spreads were key drivers. This strong organic growth. Excludes 1-time items, such as lease, termination fees and highlights the strengths of our team and portfolio.

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 of condos, for a total of $628.3 million.

Core ffo for the year, was a $1.55 per unit in line with our investor day projections.

We view core ffo as a durable earning space, that we will grow from compounding value as our income grows.

Jonathan Gitlin: 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.

We have reached the national conclusion of our development cycle with several key projects. Now complete, the capital intensity of our business is moderating

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.

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, Parks and Crossings, new Winners in Home Sense, and Mega Centro Notre Dame's Dollarama and Service Canada, as well as residential projects such as Fourth Street Lofts and Queen Astridge. We also made strong progress on capital recycling.

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: Through successful condo closings, we have reduced our residual condo balance to $130 million, which is immaterial in the context of RioCan's balance sheet. In addition, we sold $113.4 million of non-core and lower-growth commercial assets, bringing the total capital repatriation to $788.2 million.

During the year, we delivered 366,000 square feet of completed developments from pod to IPP, this included, 102,000 square feet of retail. These deliveries included finalization of the well parks and crossings new winners and HomeSense.

Dennis Blasutti: This included 102,000 sq ft of retail. These deliveries included finalization of The Well, Parks and Crossings, new Winners in Home Sense, and Mega Centro Notre Dame's Dollarama and Service Canada, as well as residential projects such as Fourth Street Lofts and Queen Astridge. We also made strong progress on capital recycling.

And mega SRA, Noah dams, Dollarama and Service Canada, as well as residential projects such as for Street loss and queen aspri.

Speaker #2: 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.

Speaker #2: 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: 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.

We also made strong progress on Capital recycling. We sold 406.6 million of real living assets and closed 221.7 million of condos, for a total of 628.3 million. Subsequent to year end. We also went firm on the disposition of our Underwood, Residential Building in Calgary for 46.5 million.

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.

Taken together. We are halfway towards our 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 ballots to 130 million, which is immaterial in the context of rioux, Cannes, balance sheet.

Dennis Blasutti: 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: 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.

And lower growth, commercial assets, bringing the total Capital repatriation to 788.2 million.

Speaker #2: At current prices, our units 12 times using 2026 core FFO, representing a 20% discount to our long-term historical average of 15 times. Our IFRS NAB, which is valued bottom-up, also implies a multiple of 15 times, consistent with our long-term average.

Through this disciplined Capital recycling program, we continue to improve our portfolio quality while funding growth and improving our balance sheet.

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.

We allocated much of this Capital to debt reduction and unit repurchases.

As a result, net debt to Eva improved 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: 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.

Our balance sheet is in a strong position supported by a suite of improved credit metrics.

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.

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 increase our unencumbered asset pool by 1 billion dollars to 9.2 billion dollars.

Speaker #2: Reinforcing our focus on long-term value creation for unitholders. Subsequent to year-end, we closed on the previously announced acquisitions from the HBCJV. All backfill tenants at Georgia Mall and Oakville Place are now signed.

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: 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 #2: Total capital for these buildouts 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.

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 9.2 billion.

Our current prices are units and supply of forward, multiple of approximately 12 times using 2026 cor ffo. Representing a 20% discount, to our long-term historical average of 15 times.

Our IFRS nav which is valued bottom up also implies a multiple of 15 times consistent with our long-term average.

Speaker #2: 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.

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: 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%.

Dennis Blasutti: 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 #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.

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 youth holders.

Subsequent to year end. We closed on the previously announced Acquisitions from the HBC JV.

All backflow tenants at Georgian Mall in Oakville Place are now signed

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 in line 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 #2: We also continue to see opportunities to invest within our existing portfolio. In 2026, we expect to invest $95 million to $150 million into retail-focused projects, including the Young 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 demalling and addition of a grocery store, and additional infill pad density at Winfield Farms.

Total capital capital for. These builds 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.

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.

Dennis Blasutti: 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. 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 #2: Consistent with our Investor Day framework, we apply a 9% unleavered 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% plus future growth averaging approximately 3%.

We expect Court ffo per unit of $160 to $162 representing a growth rate consistent with our investor day projections.

This is supported by same property. Noi growth of 3.5% to 4%.

We have strong visibility into this target. Given that approximately 75% is contractually. Secured through rent steps and ramp up of previously signed leases.

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 square foot, 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 CAD 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%.

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 Center de-malling and 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: 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.

With the strong operating backdrop. We expect to steadily grow. This high-quality earning stream?

Speaker #2: Maintenance capex is expected to return to normalized levels of approximately $55 million, a decrease of $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.

We also continue to see opportunities to invest within our existing portfolio in 2026. We expect to invest 95 to 150 million into retail Focus projects, including young Edington Center Improvement plan. The new Costco at berlo Georgia mall and Oakville Place back bills including the addition of grocery to both those centers.

Westgate Shopping Center D mauling, in addition of a grocery store and additional info pad density at Winfield Farms.

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 #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: 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 Center 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.

Consistent with our investor day framework. We apply 9% unlevered irr hurdle rate for these types of projects for the projects included in our 2026 plan. We expect to outperform this target where they're going and yield averaging 8 to 9% plus future growth averaging. Approximately 3%.

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.

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.

We expect mixed-use development expenditures plus 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 #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.

maintenance capex is expected to return to normalized levels of approximately 55 million, a decrease of 16 million from 2025

Dennis Blasutti: 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 #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 target. In closing, we have a highly productive retail portfolio that is positioned to deliver resilient, durable cash flows.

Note that we report our afo using a normalized capex. So this decrease in spend will not impact our reported afo growth rate which will approximate our ffo growth rate. However, for any of you who use actual capex when calculating afo results, this lower spend will lead to a higher year-on-year growth rate in this metric.

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: 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.

We are reaffirming our target range for net debt to Eva of 8 to 9 times our range that when taking together with our suite of balance sheet metrics results in low Financial Risk.

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.

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

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 IR telephone keypad.

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: 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.

Lastly, we continue to advance our riocan living disposition program.

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.

Dennis Blasutti: 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.

While execution and timing remain Market dependent. The quality of this portfolio gives us confidence to achieve our 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.

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

we have the capital to grow and a strong balance sheet that de-risks our growth trajectory

Dennis Blasutti: We are reaffirming our target range for Net Debt to EBITDA of 8x 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 to 1.4 billion target. In closing, we have a highly productive retail portfolio that is positioned to deliver resilient, durable cash flows.

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

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.

As the execute, our plan over time, we will believe the value of our business will be appropriately reflected in our unit price.

Speaker #3: So it 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 $1.60 to $1.62.

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

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.

With that, I'll turn the call back over to the operator for questions. Of course, we will now begin the question and answer session. If you would like to ask a question, please press star, followed by 1 on your telephone keypad. If for any reason, you'd like to remove that question, please. Press star. Followed by 2 again. Ask a question, press star 1.

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.

As a reminder, if you are using a speaker-phone, please remember to pick up your handset before asking a question, we will pause here briefly as questions or registered.

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.

Our first question comes from the line of Sam domane with CDC.

Sam your line is now open.

Thank you. Good morning everyone. Um, just want to say it's great to see.

Results.

coming in with expectations and

Speaker #4: So that's the backdrop.

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 160 to 162. I'm just wondering if there's any reason why you didn't start with a wider range?

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

Operator: 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. 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.

Ability of the new core ffo metric so it's uh, it just makes following the company much, much easier. Thank you very much. Um, I guess first off just on the guidance for core ffo. It's a very tight range of uh, 160 to 1 162. I'm just wondering if there's any reason why you didn't start with a wider range.

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

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, and 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: 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.

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: 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.

Sure. Thanks Hammond. Thanks for your earlier, comment. The, um, the reason is because, uh, core ffo is quite predictable. It's quite hard to come by, uh, 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. Um, and in giving that tighter guidance range, uh, we felt this would help shape uh, a lot of analysts views as well as investor views, and uh, we have a quite a bit of confidence in in that tighter range. So, that's the backdrop.

Speaker #3: No, I wouldn’t, of timing items—on whether it’s costs or other things as well. So it’s just a few little small things like that.

Speaker #3: 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.

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

Uh, appreciate that and uh, and just I guess going back to, to Q4, uh, the core ffo print. You know, came in sort of right at sort of the, the Outlook the guys, but I think the guidance was technically for, at a minimum of of a dollar 55 for, for 2025,

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 #5: 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?

Um, is there any reason why the results didn't didn't exceed the minimum of that, uh, of that, guidance for 2025?

Um,

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 #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.

I I think that uh ultimately the the guidance was in line with what we suggested an investor day. Uh, it might have been on the lower end of the guidance, but I think it was just uh, a matter of timing on certain um, you know, certain income that we had coming in. I don't think there's any, uh, technical reasons and that I can give you at this point. Dennis, I don't know if there's anything you can offer.

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 is very much achievable.

Sam Damiani: Appreciate that. And just, I guess, going back to Q4, the Core FFO print, you know, came in sort of right at sort of 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?

Dennis Blasutti: No, I wouldn't have said 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 155 anyway. So we're just, I think, pleased that it came in as expected.

Uh, no, I wouldn't say much on that. I think there's just be maybe a bit of timing uh 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 uh, you know, it was never expected to be that much different than 155 anyway. So we're just, uh,

I think please let it came in as expected.

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.

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

Speaker #4: Thanks, Sam.

For for sure. And it was a small, small amount regardless. Uh so so so so thank you very much. Last 1 for me, just on. And you did address this, Dennis in your comments but any any more specific commentary? You can offer in terms of the quantity and Cadence of real can living dispositions in 2026, you know, beyond the Underwood of course.

Speaker #1: Thank you for your questions. Our next question comes from the 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. Wondering if you can give us an idea of the quantum of non-core commercial dispositions you expect to do in 2026.

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 target.

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 #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.

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, beyond the Underwood, of course?

Uh, 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 uh preliminary. Actually, I'd say Advanced discussions on a number of the existing Rio and living assets. And so we feel quite confident that there's going to be a nice uh consistent Cadence throughout the course of the year. And um you know, as Dennis suggested in his remarks earlier, uh, we feel confident that the ultimate Target of approximately 1.3 billion dollars is very much achievable. Whether that falls on either side of 26 or early 27, again, like I said, some of it is Market dependent, but, uh, as a whole we feel quite confident that, we'll achieve that number.

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.

That's great. Thank you and I'll turn it back. Thanks, Sam.

Thank you for your questions.

Our next question comes from the line of Lauren Belmar with Dish Gardens.

Mario Saric: ... That's great. Thank you, and I'll turn it back.

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

Your line is now open.

Jonathan Gitlin: 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 going to 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.

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

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

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

Thanks good morning um maybe just sticking with the disposition side, but switching over to the commercial side because you guys have done this done, some good work there. Wondering if you can give us an idea of the Quantum of non-core commercial disposition, you expect to do in 2026.

Jonathan Gitlin: We haven't put out guidance in that regard. We are, you know, 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. 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. But we did not provide any specific guidance along, along the lines of how much we would dispose of any commercial assets.

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.

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

Jonathan Gitlin: Thanks, Sam.

Operator: Thank you for your questions. Our next question comes from the line of Lauren Belkmar with Desjardins. 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.

We, uh, we haven't put out guidance in that regard. Um, we are, you know, obviously always in, uh, 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. And, um, 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, uh, if there are certain low growth, uh assets, then we would, uh, we would consider entering into either joint ventures or selling them uh, on a on a wholesale basis. Uh, and but we did not provide any specific guidance along uh, along the lines of how much we would dispose of any commercial assets.

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.

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 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 acquisitions or prioritize debt.

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. But we did not provide any specific guidance along, along the lines of how much we would dispose of any commercial assets.

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 Berlock, where we're in the process of erecting a Costco.

Jonathan Gitlin: 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. 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 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.

Jonathan Gitlin: 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.

Okay, fair enough. Um and then I guess with, you know with all this repatriation of capital, um the few levers to pull here, obviously debt is 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. Well, the first priority is keeping the, uh, 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 that debt to EBA along with the 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. 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, a logical use of capital. Uh, it's really a way of giving back to our shareholders. And, and I really do feel that we are, and obviously, it's a bias to you, but I do believe that Rio can's unit.

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

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 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 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.

Jonathan Gitlin: 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, in certain properties, like at Burloak, where we've, 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.

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, including 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.

Are undervalued relative to the Future performance perspective, uh, perspective. The prospective we have. And therefore, we thought that buying back units in that type of pricing, uh, 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. Uh, 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

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

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.

Out pads and strips, and also just, uh, you know, reshuffling tendencies in certain, uh, in certain properties like at berlo where we've, uh, we're in the process of erecting, a Costco. Uh, and I think those will also be part of the decision-making process. But in this type of Market it is definitely uh ncib stands out as a very clear-cut uh creative use of capital.

Jonathan Gitlin: 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 perspec-- perspective, the prospective we have. Therefore, we thought that buying back units 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.

Speaker #3: 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.

Dennis Blasutti: The only thing I'd add there-

Lorne Kalmar: Okay, thank you very much.

Dennis Blasutti: So the only thing I'd add there is that-

Lorne Kalmar: Yep.

Dennis Blasutti: I mean, 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 #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.

Jonathan Gitlin: 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 I'd add there. Thank you very much. So the only thing I'd add there is that I think 1 thing to to kind of think about in this environment is race of come down, uh, with spreads tightening in the underlying is moving to a level where, um, paying down debt is simply not a creative to ffo per unit or value. Um, and so, it's something to just sort of think about, um, when we have so many other stronger opportunities from an accretion perspective,

Speaker #3: 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.

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 entity EBITDA or you don't see much point in that?

Dennis Blasutti: And then really thinking about the balance sheet, you know, from a financial risk perspective, anywhere inside that range in conjunction with a, 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 do, you know, we've intentionally left ourselves flexibility to take advantage of accretive opportunities. You know, things like, you know, acquiring Georgian in Oakville, those are accretive opportunities. We're going to add a ton of value through the re-leasing 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?

Dennis Blasutti: The only thing I'd add there-

Speaker #3: 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.

Lorne Kalmar: Okay, thank you very much.

Dennis Blasutti: So the only thing I'd add there is that-

Lorne Kalmar: Yep.

Dennis Blasutti: 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.

That, um, you know, we've kept our range intentionally a little wide to uh on net debt to allow for us, to take advantage of opportunities um, to reinvest in our own portfolio Etc. Um, and then really thinking about the balance sheet as, you know, from a Financial Risk perspective, anywhere inside that range in conjunction with a, you know, our ladder uh and all the other Suite of metrics that Jonathan mentioned is a low-risk balance sheet uh in our view. Um so we do you know we've intentionally left ourselves flexibility to take advantage of a creative opportunity

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.

Dennis Blasutti: You know, things like, you know, acquiring Georgian in Oakville, those are accretive opportunities. We're going to add a ton of value through the re-leasing 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 #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 #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.

Series, um, you know, things like um, you know, acquiring Georgian and Oakville, those are a creative opportunities. We're going to add a ton of value to the releasing effort. Um, but in day 1, um, it is a negative impact on net, debt deck because you have to wait for the IBA data ramp up, but 4 quarters later, it's a positive impact, right? So there's a, you can get a timing lag in the metrics. But ultimately, you know, we think buying those assets was, was, is going to be a very good is going to Bear out to be a very good decision.

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

Dennis Blasutti: And then really thinking about the balance sheet, 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 do, you know, we've intentionally left ourselves flexibility to take advantage of accretive opportunities. You know, things like, you know, acquiring Georgian Oakville, those are accretive opportunities. We're going to add a ton of value through the re-leasing effort. 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, but 4 quarters later, it's a positive impact, right?

Um and then maybe just sticking with that 1. Last 1 is, is there a reality where you guys go below?

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

Speaker #3: Thanks, Lauren.

Point in that.

Speaker #1: Thank you for your questions. Our next question comes from a line of Mike Marketis. With BMO, your line is now open.

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 debt to EBITDA, or you don't see much point in that?

Speaker #6: Thanks, operator. Good morning, team RioCan. Just a quick question on the reinvestment CapEx of $95 to $115 million for the existing portfolio. Is that sort of what we should be thinking about in terms of what you're capable of delivering, or is there a potential for that to ramp higher in '27 and '28?

Jonathan Gitlin: 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. And, we see that, you know, we have a runway with respect to our, 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, it's not something in the short, to medium term that we see happening.

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.

Dennis Blasutti: 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.

Jonathan Gitlin: 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, it's not something in the short, to medium term that we see happening.

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

Uh, anything is possible. It really depends on what the other, um, what the other opportunities are. Um, but when we have such a creative and, uh, logical uses of capital outside of just paying down debt, we are going to take advantage of those and, uh, we see that, you know, we have a Runway with respect to our, 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, uh, improvements and build that set. I was talking about before. Um, but again, we're committed to that range of 8 to 9 times going below that. Um, it's, it's not something in the short to medium term that we see happening.

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

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 debt to EBITDA, or you don't see much point in that?

Speaker #6: Okay, great, thanks for that. And then, Jonathan, you had mentioned—or you alluded to—strong demand for the types of assets RioCan owns.

Thank you for your questions.

Our next question comes from the line of Mike Marcus with BMO

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

the Line is now open.

Jonathan Gitlin: Thanks, Lauren.

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 eight to nine times. Going below that, it's not something in the short to medium term that we see happening.

Speaker #6: 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?

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

Thanks operator. Good morning, team Rio can, um, just a quick question on the

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?

Reinvestment capex of 95 to 1115 million of the uh existing portfolio. Is that sort of what we should be thinking about what you're capable of delivering? Or is there a potential for that to ramp higher in 27 and 28?

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

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.

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.

So I think it it is a, a fairly good uh, estimate for going forward. Um, it will depend mic on what the opportunity set is in 27 and 28. Uh, but right now, I think that as a run rate is is a reasonable assessment.

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.

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

Jonathan Gitlin: Thanks, Lauren.

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

Okay, great, thanks for that. Um and then Jonathan, you had mentioned some um or you alluded to strong demand for the types of asset Rio can owns.

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: 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.

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?

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 can put to work in a very accretive manner.

What's the acquisition market like out there? I mean, obviously the price is tight, um, is there a lot of product available for sale? And um, if so, would Rio can potentially look at doing, I mean, I think you mentioned, um, JVS on some non-core assets, but what about on core Assets in terms of trying to extend your, your platform

uh, sorry to to to buy or to sell my

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

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.

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 interest in assets.

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.

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 extend your, your platform?

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.

Well, I could go both ways as you can see the JB and then continue to expand. Right? So, yeah, the, um, the market is tight at this point. There's a lot of very strong retail that's held by a lot of very well-healed entities, whether they're rats or Pension funds, uh, 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 Rio Camp's existing high-quality retail profile available to to acquire. And when they do become available, they're at cap rates that are

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.

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

Jonathan Gitlin: 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. 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. 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: 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.

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-

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 #4: 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.

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.

Are extremely, uh, tight and they're, and they're generally getting those. So that allows me to flip to the other perspective, which is, um, the ability to sell, uh, certain interests, and assets. And that's something we definitely, uh, are exploring where we take, uh, let's say, lower growth assets, that are of high quality bringing in a, a partner. And we use our platform to create value through a fee stream, but also repatriate Capital that we could 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 mdna that there are certain discussions taking place at this point in time in that regard. And I think that's a model that is definitely, again, it really it shows the strength of rioux Cannes platform and I think a lot of Partners would covet that type of management oversight. 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-healed institutional partner who has equal sensibility around.

Jonathan Gitlin: 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, you know, what is good to own. So I do think if, 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: Hence, the $175 million of NCIB that we participated in since early 2025.

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. 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 #6: 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?

Jonathan Gitlin: 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, because you're just-- You know, 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. 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-

What uh, you know, what is good to own. So I do think if, if we are uh, if we have Capital available to us and we have the opportunity to utilize someone else's balance sheet, uh, 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 to press to, uh, to go over our 9% on levered Hurdle. Um, because you're just, you know, if you

Speaker #4: I mean, again, 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 we could do with the capital and what the type of accretion would be from a fee stream perspective.

Finding an asset that has 3% growth. It's not going to be at a 6 cap. It's going to be something lower. So that's that's the the quantity that would be in from just a straight out acquisition perspective.

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 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: 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.

Mike Markidis: Sure.

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

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 175 million event that we participated in since early 2025

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.

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?

Jonathan Gitlin: 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, 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.

Okay. Got it. Um and then last 1 before I turn it back, I know you said exploring and discussions. That's probably you may want to punch this question but what would be the sort of potential range of quantum of assets that you would be looking to potentially sell to a JB partner?

Speaker #5: Thank you, and good morning. And 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.

Jonathan Gitlin: I mean, again, it's 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: Relative to your kind of three-year three-and-a-half percent kind of same part and wide target, what would you kind of consider as being low-growth? And what percentage of the portfolio could that comprise?

Speaker #4: Yeah. So, we've put out guidances, Mario, of between 3.5% to 4%. We said at our investor day that for us, we expect to get at least 3.5% same property NOI.

Um, I mean, again, it's it's, um, it it really we don't have it in our business plan at this point. So there's no specific number. Uh, we would just balance as we always do the considerations around, what could we do with the capital? And what the what the type of accretion would be, um, 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.

Jonathan Gitlin: Hence, the CAD 175 million of NCIB that we participated in since early 2025.

No, I I get it. I understood can't uh can't help for trying. All right. I'll turn it back. Thanks so much. Congratulations. Thanks Mike.

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.

Thank you for your questions, Mike.

Mike Markidis: No, I get it. I understood. Can't help for trying. All right, I'll turn it back. Thanks so much. Great having quarters.

Mike Markidis: Okay, got it. Last one before I turn it back. I know you said exploring and discussions, so it'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?

Our next question comes from the line of Mario cerak with Scotia Bank.

Jonathan Gitlin: Thanks, Mike.

How are you? You line is now open?

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.

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

uh, thank you and good morning and just sticking to

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.

Uh, the potential kind of dispositions that are not in the plan, Johnson, you mentioned or referenced kind of low growth.

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 ROI target. What would you kind of consider as being low growth, and what percentage of the portfolio could that comprise?

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.

Assets as being a possibility, you know, relative to your kind of 3 year 3 and a half percent kind of same problem. Why Target uh, what would you kind of consider as being low growth and what percentage of the portfolio could that comprise?

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%.

Jonathan Gitlin: Yeah, so we've 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 3 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.

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

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: 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.

Mario Saric: Thank you, and good morning. Just sticking to the potential kind of dispositions that are not in the plan. Jonathan, you mentioned to reference 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 #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.

Yeah, so we put out guidance as you know um Mario of of between 3 and a half to 4%, we said it our investor day that we you know for us we expect to get at least 3 and a half percent same property. I know why. And that came through that those guys that those guidance numbers came through a very uh, in-depth review of the entire portfolio, every single property, every single Tenney 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 3 years. And what assets are going to um 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 um projections going forward, I'll give you a for instance, Walmart. We know that a lot of their historic leases have limited growth if any and but their high quality, their excellent. Um, and

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, 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 gonna 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.

Jonathan Gitlin: I'll give you, for instance, Walmart. We know that a lot of their historic leases have limited growth, if any, 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 #3: Okay. And it may or may not be related, but I was hoping you could expand on the commentary pertaining to RioCan tenant independence.

Speaker #3: I think you also highlighted that in the letter to unitholders. This quarter, perhaps, maybe set an example where you think that benefit's been crystallized.

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.

Jonathan Gitlin: 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: 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: 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: So for us, that's, there are 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, 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. So for us, that's...

Predictable, uh, creators of of, 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 and a half percent, but from a qualitative perspective, they're good, they're predictable. Um, and and they're, 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 um, aggressively growth oriented because of the fee stream, that is attached to it. So for us, that's uh, there. 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 are acquisitions.

Okay.

and it may or may not be related, but you're

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 constituents.

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 unitholders, this quarter, you know, perhaps maybe some examples where you think that benefit's been crystallized. Just curious on some expanded thoughts on the niche.

Uh, I was hoping you could expand on the commentary pertaining to real can. Can it Independence? I think you also highlighted that in the letter to you know holders of this quarter you know probably be studying an example where you think that benefits to crystallized. It's just curious. If I come some extended thoughts on

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.

I'm

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. Operationally, I 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. There is absolutely no influence from any other entity other than our own.

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.

Jonathan Gitlin: 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: 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.

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 unitholders, this quarter. You know, perhaps maybe some example where you think that benefit has been crystallized. Just curious on some expanded thoughts on the niche.

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.

Jonathan Gitlin: 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, it really, I think it, it puts us in a very, in a very, advantageous position going forward, relative to some of those that might have to take a, a much deeper view and consideration of their anchor tenants' wishes and desires.

Speaker #3: Got it. Okay, my last question is more of a qualitative question. Your comments on expected strong budget lease spreads over the next three years—you talked a little bit about this at the investor day.

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. 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. There is absolutely no influence from any other entity other than our own.

Speaker #3: How much of that confidence would you say is RioCan-specific versus a call on the broader market expectations, and can you delve into a couple of the 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: 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 a 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, there's 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 lifts than we get, and I think that's now starting to be demonstrative of the fact pattern I just talked about.

Speaker #3: Thanks.

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?

A a much deeper View and consideration of their anchor tenants, which is in desires. And it just mean, 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 a, an anchor tenant who, 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 there's, there's little things like that, um, but of course, it also Drive rents as as aggressively as possible.

Jonathan Gitlin: 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 unit holders without having consideration to any other, to any other constituents. So it, it really I think, it, it puts us in a very, in a very, advantageous position going forward, relative to some of those that might have to take a, a much deeper view and consideration of their anchor tenants' wishes and desires.

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.

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

Speaker #5: How much of that is RioCan-specific versus the broader market?

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.

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 3 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 sustain these types of blended lease spreads for that long? 3 years is not a short time frame. Thanks.

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.

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 there's 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 rates, 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.

Got it. Okay. Um my last my last question more of a qualitative question, your comments on expected strong, bloody spreads uh, over the next 3 years. I talked about a bit of the investor day. Um, how how much of that confidence would you say is real, can't specific versus a call on a broader Market, expectations and kind of delve into a couple of the doctors at the top of the factors or trends.

That you think consisting these types of blood at least spreads for that long 3 years is is not a short time thing.

Speaker #4: 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.

So Mary, 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 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.

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?

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

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.

So right now, um, I was just, I was asking about your comment on the call earlier. Just talking about expectation for strong Blended. Lead spreads sure. How much of that is real can specific, uh, versus a broader Market.

Sure, confident.

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, is not a short time frame. Thanks.

Jonathan Gitlin: Oh, lease spreads. Sure.

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

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.

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 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 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: 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.

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?

Jonathan Gitlin: 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.

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

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 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?

Jonathan Gitlin: Oh, leasing spreads. Sure.

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

Jonathan Gitlin: 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. We're, 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.

Jonathan Gitlin: Sure

Mario Saric: -confidence?

Sure. So I feel very I mean the team feels very confident in our ability to continue to generate at least Express. 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 Rio can because we do start from a bit of a, you know, the, 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, that really helps us. I also think we've got, um, you know, a very, um, significant improvements to our portfolio over the last little while and and a high demographic profile, that tenants are really, really following. And in favor of, and I think that allows us to really, um, 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. We're as I said,

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

Uh, we've gone through each 1 of our assets. Each 1 of our Tendencies 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 #5: Dennis, you want to take that?

Okay, thank you.

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.

Thank you for your questions.

Our next question comes from the line of Dean Wilkinson with CIBC

Mario Saric: Okay. Thank you.

Team, your line is now open.

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

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.

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.

Everybody, um, just want to hook back on the the, The Leverage, the share buyback. And and some of the other stuff around that

Dean Wilkinson: Thanks, everybody. Just want to hook back on the leverage, the share buyback, and some of the other stuff around that.

Fred Blondeau: ... 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?

Dean Wilkinson: ... 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 #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.

Would it be fair to say as you drift more towards 8, times on that debt to ibida that we could see a ramp up in in that share buyback. And you know 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, absent, any other opportunities and is that factored into that, uh, guidance number, Dennis,

Speaker #3: And of course, 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.

Dennis, you want to take that?

Mario Saric: Okay. Thank you.

Jonathan Gitlin: Dennis, you want to take that?

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. Um,

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

you know, as uh,

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. So, we haven't put a specific number out on, 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. So, 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 #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.

You know based on the opportunities in front of us. Um so um,

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 #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?

We haven't put a specific number on on ncib. Um, we did put a number out in our investor day just looking at our ability to allocate excess Capital every year. Um, as well as, you know, we still would have another

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.

Um you know nearly 700 million dollars of capital coming back from real cat living. Um so um certainly um

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.

Uh, share BuyBacks with via 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. And, of course, uh, trading off against, you know, we're constantly trading off as you'd imagine against other opportunities. So that's, uh, that's how I would. I would explain that.

Jonathan Gitlin: Dennis, you want to take that?

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

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 unitholders.

you give you a sense um you know, in terms of the the sale you have to

Write right.

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.

Fred Blondeau: 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?

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 #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.

Um, I guess the other 1 to look at then. In just terms of retain capital is, 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 and how are you thinking about sort of the dividend or distribution as we go forward?

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: Yeah, so the target we’d put out, just as a reminder, is approximately 70% core FFO and approximately 80% core AFFO. So I think that’s just—and we should be able to stick around that range.

Jonathan Gitlin: The target payout ratio is, we had projected that at Investor Day. I think, you know, that is a number that we fully anticipate sticking with. We, 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 unitholders. 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.

Dennis Blasutti: And 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 gives you a sense, you know, in terms of the sale, the asset sales.

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.

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

Jonathan Gitlin: At this point, we have a pretty robust distribution relative to our peers, and given the strength of our portfolio.

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

So the the target payout ratio is, we we had projected that at at investor day. Um, and I think, uh, you know, that that is the number that we fully anticipate, uh, sticking with um, we, you know, our our dividend or distribution policy is something that is, uh, going to be a year-by-year consideration. And it really depends on, uh, what else we could do with those funds for us. It's all about having a high amount of discipline. And, um, 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 uh, as to whether or not the distribution gets raised. 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 but it's going to be something that we will revisit next year for sure. And uh we will make the appropriate recommendation to our board based on where things sit

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. We, 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.

Fred Blondeau: Yes.

Dean Wilkinson: Yes.

Jonathan Gitlin: 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 #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 building some vacancy in the portfolio to allow for potential purchasers to have a bit more of attractive upside 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, that's just 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, 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 some, certain unitholders out there.

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

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

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.

Jonathan Gitlin: At this point, we have a pretty robust distribution relative to our peers and given the strength of our portfolio. 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.

Dennis Blasutti: 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 some, certain unitholders out there.

At that point in time. Yeah, so the target we put out is, um, just a reminder is 70 approximately 70%, uh, core ffo and Approximately 80% core affo. Um, so I think that's, that's just and, you know, we should be able to stick in around that range. And then, as our income grows, potentially grow the distribution, our jobs and said, there's other ways to return Capital shareholders, um, and ncib. Um, uh, right now appears to be the more efficient and, uh, Value accretive method of, of, doing that. And our yields, we do as Charles and said, believe our yield is quite attractive and, um, it's actually reasonably tax efficient as well. We're about 60% taxable um, which uh matters to some certain unit holders out there.

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.

Dennis Blasutti: Yeah. So the target we put out is, just a reminder, approximately 70% core FFO and approximately 80% core AFFO. So I think that's, that's just, 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 some certain unitholders out there.

Fred Blondeau: Oh, for sure. It's a big, it's a big consideration. Just then the last one for me, just as 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?

Dean Wilkinson: Oh, for sure. It's a big, it's a big consideration. Just then the last one for me, just as 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, 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.

Oh, for sure. It's a big, it's a big consideration. Um just then the last 1 for me just as looking at at the real can living and and you know, obviously there's been a lot of talk to 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.

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

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.

Dean Wilkinson: 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?

Are you looking at sort of, 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, uh, offload.

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

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 byproduct of a market that is tougher, given the face of a lot of condo deliveries, which serve as competition-

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

Speaker #5: Thanks, Dean.

Dean Wilkinson: Oh, for sure. It's a big, it's a big consideration. Just then the last one for me, just as looking at, 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, so, 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 #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.

Fred Blondeau: Mm-hmm.

Jonathan Gitlin: -for some of the RioCan Living assets at this point. But no, we're not, 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 two quarters, and I think that's plenty. But John, do you have any further?

Jonathan Gitlin: But no, we're not, 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 two quarters, and I think that's plenty. But John, do you have any further?

Speaker #6: Thank you. And good morning. On the yard day at HBC Sublise Manor, 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?

Sure I'll start and I can hand it over to John Valentin if he has any further color. But, uh, no, we operate these assets. Uh, as though we'll own them forever. We are not creating vacancy. Uh, whatever vacancy you're seeing is a byproduct of a, a market that is tougher given the face of a lot of condo deliveries, which serve as uh as a competition for some of the ryohin living assets at this point. Uh but no we're not we're not. Um, going about creating vacancy to create more upside for uh 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 that's plenty but John, I do have any further.

No, I would just add to what you said, Jonathan. Uh, you know, we're managing these these properties. Very carefully. Um, both on the efficiency basis. Uh, uh,

[Company Representative] (RioCan REIT): No, I would just add to what you said, Jonathan. You know, 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. So no, we're actually looking to maximize the revenues where we can on these properties and making them sale-ready.

John Ballantyne: No, I would just add to what you said, Jonathan. You know, 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. So no, we're actually looking to maximize the revenues where we can on these properties and making them sale-ready.

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.

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 byproduct 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 two quarters, and I think that's plenty. But, John, do you have any further?

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

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

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

Speaker #4: Yeah. And 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.

Thank you for your questions.

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

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

Jonathan Gitlin: Thanks, Dean.

Our next question comes from the line of France, Fred Blondo with Green Street, Fred your line is now open.

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: Going forward.

Thank you and uh, good morning.

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

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.

Gaurav Mathur: 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 receivers' 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 receivers' proposed tenant, Fairweather, 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.

On on the Yorkdale HBC subl matter. How do you see solvency proceedings? Uh, moving ahead. Uh, now that the court has uh this allowed the uh the receivers proposed plan and uh fair weather uh to take up the vacation space.

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.

That's all I would comment about.

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-

It and again, as we've already suggested Fred will. Okay. Well, that's absolutely fine. But

Dean Wilkinson: Great. That's it for me. I'll 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.

Jonathan Gitlin: Thanks, Dean.

Gaurav Mathur: Okay. Well, that's absolutely fair, but-

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

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

Jonathan Gitlin: Yeah. And 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.

Yeah, and and we from a financial perspective, we've already threw a combination of of um offsets and and write Downs. Um, we we think it has the minimum impact. If any, on on Rio can financially

Speaker #6: Yeah. 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?

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?

Going forward and just a really fast on that. Sorry, just a quick summary on just the overall JV, not just that your bill asset every other asset. Um,

[Company Representative] (RioCan REIT): Just a really fast summary on that, Fred.

Fred Blondeau: Just a really fast summary on that.

Speaker #6: And it looks like, from your previous answer, it's pretty much dealt with at the moment.

Jonathan Gitlin: Fred. I guess-

Gaurav Mathur: I guess-

[Company Representative] (RioCan REIT): 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 13 assets, this Yorkdale one is the only one that's sort of left to be dealt with. And as Jonathan said, there is-

Fred Blondeau: 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 13 assets, this Yorkdale one is the only one that's sort of left to be dealt with. And as Jonathan said, there is-

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

Speaker #6: Okay, and one last for me—maybe 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, two to three years.

Jonathan Gitlin: Mm-hmm.

[Company Representative] (RioCan REIT): 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.

Fred Blondeau: 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.

Is either sold or for sale, or we foreclosed on it. So out of the 13 assets does Yorkdale 1 is the only 1 that sort of left to be dealt with. And as Jonathan said there is uh no expected Financial uh impact from this JV going forward. So um from our perspective, um this uh chapter is behind us. Um and the assets have been been uh

Frédéric Blondeau: Okay. No, that's absolutely fair, but-

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.

Dealt with or you know there's a couple that are still in the sale process with a broker um that's easy enough to deal with and really that's in the hands of the creditors. Um so from a Rio Camp perspective, this is uh closed chapter

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.

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

Frédéric Blondeau: I guess-

Dennis Blasutti: 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 13 assets, this Yorkdale 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. 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 #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.

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

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

Yep. Absolutely. But I guess my real question was, was more like, should a tenant, uh, not be found in time? Uh, would there be any damages that the wreck could possibly face and looks like from your, your previous answer? I could, you know, that's pretty much dealt with at the moment.

That is correct, no damages.

Okay.

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 T&T. For Sobeys, I'd say the same thing with FreshCo.

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

Gaurav Mathur: Okay. And one last from 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 2, 3 years?

Fred Blondeau: Okay. And one last from 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 2, 3 years?

And 1 last for me, uh, maybe a bit more a bit easier, um, given that the, uh, Canadian tenant pool is not that deep. I was wondering, uh,

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 banner.

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.

Particular tenant types would allow for the growth uh, in new lease rents over the next, call it over the next 2, 3 years.

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

Gaurav Mathur: 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, 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, 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 No Frills or they're TNT. For, you know, Sobeys, I'd say the same thing-

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.

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

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?

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.

Jonathan Gitlin: 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, 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. And we're seeing a lot of, you know, tenants like TJX thrive in this kind of environment because they do offer.

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. And I think, you know, our our given that our tenant pool is pretty deep and growing. Uh, and so we think that there's a lot of very strong tenants that are expanding in scope. But also very I, I would say very intelligently, if you look at a lot of the new stores that we're doing, they are grocery stores. But there are the, you know, the, 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 No Frills or they're TNT. Uh, for, you know, Soviets I'd say the same thing with FreshCo and that's the theme across

Gaurav Mathur: Mm-hmm.

Jonathan Gitlin: -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. 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?

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

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%-

Frédéric 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: 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?

Our portfolio. We're doing a lot of Dollarama deals, a lot of Good Life Fitness deals, or their discount banner. And we're seeing a lot of, uh, you know, uh, tenants like TJX thrive in this kind of environment because they do offer an well, they do offer products that are going to be, uh, attainable in any type of economic backdrop. And that's really the type of tenant that we seek out to fill our, our our centers, but Oliver. Uh Harrison, do you have any further commentary on on some of the other retailers that are that are really providing strength to our growth profile?

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 Alain de Pamber with RBC. Your line is now open.

No it's more of a portfolio uh opportunity which is just we also have this as Jonathan. Jonathan said earlier the the uh leasing super cycle we do have

[Company Representative] (RioCan REIT): No, it's more of a portfolio opportunity, which is just we also have, as Jo- as Jonathan, Jonathan said earlier, the, 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. A lot of them are grocers. A lot of them are value retailers that have performed extremely well, you know, over the leasing opportunity while still ensuring that they are financially stable.

John Ballantyne: No, it's more of a portfolio opportunity, which is just we also have, as Jonathan said earlier, the, 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. A lot of them are grocers. A lot of them are value retailers that have performed extremely well, you know, over the leasing opportunity while still ensuring that they are financially stable.

Speaker #4: Hey, Pammy.

Speaker #5: Thanks. Good morning. Good 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 #5: What were some of the drivers there that drove some of the costs down?

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 landlords' work and NTIs was generally reduced.

Jonathan Gitlin: And we're seeing a lot of, you know, tenants like TJX thrive in this kind of environment because they do offer, and, 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?

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.

A number of long-term leases that are now sort of coming to maturity. Uh, and as a result, you know, we have a substantial opportunity to bring those up to Market. A lot of them are brochures. A lot of them are value retailers that have performed extremely well. Uh, you know, over the, uh, the period of time, where they've been in this fixed brand structure. Um, which creates a great opportunity for us to, uh, to maximize uh, the uh, the um, leasing opportunity while still ensuring that they are financially stable.

Thank you. I appreciate the caller.

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.

Thanks, Brad.

Thank you for.

Oliver Harrison: 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. As a result, you know, 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, you know, over the leasing opportunity while still ensuring that they are financially stable.

Thank you for your questions, Brad.

Gaurav Mathur: Mm-hmm. Thank you. I appreciate the color.

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

Our next question comes from the line of Premier with RBC.

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.

Jonathan Gitlin: Thanks, Fred.

Your line is now open. Hey Tommy.

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

Thanks, good morning.

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: Hey, Pammi.

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?

Morning just I just want to come back to the comments around the the lower capex uh at Georgian Mall and Oakville on some of those Replacements what were um what were some of the drivers there that uh that drill some of the cost down?

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.

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 landlord's 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 landlord's 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.

Dennis Blasutti: 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. 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 #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 in the 3% to 4% range?

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

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.

Dennis Blasutti: 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 landlord's 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 #3: Or is it still early days there?

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.

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?

To the fact that the space was so desirable that we had a bit of Leverage in those negotiations. Uh, but then also it was uh, our our construction team who's done a good job of showing that we're getting the best possible pricing on any of the landlord's work. We we have to do so it's a combination of 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. So, it's a really big win for Rio can and it's just made bigger by the fact that the costs have been reduced.

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.

So I miss anything Oliver or is that great? Um okay.

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,

Dennis Blasutti: 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,

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.

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 landlord's 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 landlord's 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.

Pammi Bir: Great. Okay, sorry. And 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 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 early days there?

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.

Okay. Okay sorry and just maybe um I just wanted to come back to uh the well actually um in terms of the retailer to you know it has been a few years. Can you maybe just talk about how the performance has how how the performance has sort of gone relative to maybe your underwriting? And I'm just curious. If it might be approaching perhaps the, in terms of the retail, at least the, um, you know, that that Target organic growth guidance, that you've set for the, uh, for the overall portfolio and that 3 that's 4% of injuries. Is it still? It's still early days. Yeah.

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.

Jonathan Gitlin: Sure. Thanks, Tommy. 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 gonna 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.

Dennis Blasutti: Sure. Thanks, Tommy. 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 gonna take some shots on tenancies that just don't work out, and we knew that going in.

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...

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.

Pammi Bir: Great. Okay. Sorry. And 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, the, 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 early days there?

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.

Dennis Blasutti: 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 #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.

Jonathan Gitlin: 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 gonna be of higher quality, far more durable, and also, I think, more in fitting with that community. 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. 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.

Dennis Blasutti: 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 gonna be of higher quality, far more durable, and also, I think, more in fitting with that community. 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. 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: 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.

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.

Sure. Thanks pommy. 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 that we ultimately get it right when you're starting denovo. 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, uh, we knew that going into our plan when going in had a, a fairly, um, uh, liberal view on 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 and some of the good news is that it's created so much momentum and and specifically over. Um, 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 at a good.

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 #3: Both from an upgrade from a 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.

Good point with the well, uh, where we are getting, um, we're getting to a point where it is is is close to stabilization. Um, and and I think that the again, the continued traffic, the continued, uh, kind of like attention. It gets in that downtown west neighborhood. We'll continue to improve the um, the visits there and the last thing I'd say is that we've done a, you know a good job of filling up the office. We had at least up but now we've actually got it uh occupied and I think that will also help.

Jonathan Gitlin: And the last thing I'd say is that we've done a, you know, a 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, 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, in the offices there. Oliver, do you have any further color on that?

Dennis Blasutti: And the last thing I'd say is that we've done a, you know, a 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, 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, in the offices there. Oliver, do you have any further color on that?

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, at a good point with The Well, where we are getting, where we're getting to a point where it is, is, is close to stabilization. And I think that the, again, the continued traffic, the continued, kind of like, attention it gets in that downtown West neighborhood will continue to improve the, the visits there.

Um, move some of the retail a little bit more, uh, you know, a little bit more aggressively but I I, again, we've never relied on the office Tendencies to make the retail work, but it's not the worst thing that we get. Um, we get people actually in in the offices there. Oliver, do you have any further color on that?

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.

[Company Representative] (RioCan REIT): Just that, you know, we've, you know, we've been doing this for a long time 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.

Jonathan Gitlin: Just that, you know, we've, you know, we've been doing this for a long time 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 #5: So as the site traffic trapped to the site continues to grow, those revenues are growing as well.

Just that, you know, we, 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 Visa V. A lot of these Tendencies. Uh, whether it was rent structure, whether it was control options in the landlord's favor. Um, you know, so we've we've created a situation where we now have the ability, you know, to

Speaker #3: No, it's great. Just last one. Are these next-generation tenants more 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?

Jonathan Gitlin: The last thing I'd say is that we've done a you know a 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 again, we've never relied on the office tenancies to make the retail work, but it's not the worst thing that we get people actually in the offices there. Oliver, do you have any further color on that?

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.

[Company Representative] (RioCan REIT): 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 gonna be a great performer from a same property NOI perspective.

Jonathan Gitlin: 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 gonna be a great performer from a same property NOI perspective.

Capitalize on the traffic that this site is driving. Um, you know, both from a an upgrade from uh, Tenney perspective. But also, you know, significant lifts from a rent perspective. Um, you know, and as a result of that, we're very confident that in addition to improving, um, 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.

Oliver Harrison: ... Just that, you know, we, 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-à-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: But that's not going to happen for a little while.

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

[Company Representative] (RioCan REIT): Yeah, and 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 site traffic to the site continues to grow, those revenues are growing as well.

John Ballantyne: Yeah, and 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 site traffic to the site continues to grow, those revenues are growing as well.

Speaker #4: Thanks, Pammy.

Yeah, and 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 site traffic trapped, to the site continues to grow. Uh those revenues are growing as well.

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.

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.

That's great. Um, just the last 1 on are these next generation of tenants, uh, are more than on net lease deals as opposed to points or

Pammi Bir: That's great. Just a last one. On are these next generation of tenants on more than 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 #6: 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.

Are you seeing that at this point, still kind of maybe leaning a bit more to a percentage percentage?

Oliver Harrison: You know, and 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 gonna be a great performer from a same-property NOI perspective.

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.

[Company Representative] (RioCan REIT): No, it would be a more conventional, rent structure, i.e., minimum rent plus additionals, less reliant on percentage rent, you know, save and except for, you know, them outperforming their natural breakpoints. But, that's not gonna happen for a little while.

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

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

Except for uh, you know, them outperforming their natural break points. But uh, you know, that's

John Ballantyne: And 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 site traffic, traffic to the site continues to grow, those revenues are growing as well.

That's not going to happen for a little while, right?

Speaker #6: 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.

Sounds good. Thanks so much. I'll turn it back. Thanks pami.

Thank you for your questions.

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

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, disciplined capital allocation, and a platform that is built for the future.

Our next question is a follow-up from Sam domane with TV securities.

Jonathan Gitlin: Thanks, Tommy.

Samuel and is now open.

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.

[Analyst]: That's great. Just last one. On, are these next generation of tenants are 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 percentage rent?

Sam Damiani: Thank you. Just had a quick follow-up. I understand your comment that Yorkdale is kind of the last, 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 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.

Thank you just, uh, not a quick follow-up, understand. If you comment that New York deals, come to the last, the last location being dealt with, but wasn't the Ottawa property. Also, uh, you had some plans there, I'm just curious, uh, if those plans are still moving forward, if you're if you've kind of walked away their

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

Jonathan Gitlin: 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.

So we got um, in fact, um, could not get to a position where we thought we could get a sufficient return on incremental Capital that would be required to uh move that business plan forward. So it is actually been moved into a sale process.

Okay, very good. Thank you.

You're welcome, thanks.

Thank you for your question, Sam.

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

Sam Damiani: Okay, very good. Thank you.

Oliver Harrison: Thanks, Tommy.

Jonathan Gitlin: 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.

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.

Jonathan Gitlin: 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.

Sam Damiani: Thank you. Just had a quick follow-up. Dennis, your comment that Yorkdale is kind of the last, 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.

I am showing no further questions at this time. I would now like to pass the conference back to president and CEO, Jonathan gitlin. Thanks very much and uh, thanks everyone for joining. I just wanted to, uh, end with saying the Rio can is entering its next chapter, from a position of strength. We focused on our retail core, resilient assets, discipline Capital, allocation, and a platform.

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.

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.

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

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

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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