TORONTO, Nov. 09, 2021 (GLOBE NEWSWIRE) -- RioCan Real Estate Investment Trust (“RioCan" or the "Trust”) announced today its financial results for the three and nine months ended September 30, 2021 (the "Third Quarter").

“RioCan has created one of Canada's preeminent portfolios by strategically curating our asset mix through capital recycling initiatives. The strength of our high-quality properties is clearly reflected in our third quarter results with leasing activity, leasing spreads and occupancy continuing to trend favourably," said Jonathan Gitlin, President and CEO of RioCan. "We are committed to operating and growing our business in a responsible and sustainable way. Our 2021 GRESB assessments demonstrate our ESG leadership status and I am extremely proud of our second consecutive 5 Star rating for Real Estate."

 Three months ended
September 30		 Nine months ended
September 30
(in millions, except where otherwise noted, and per unit values) 2021  2020  2021  2020
            
Financial Highlights           
Net income (loss) $137.6  $117.6  $389.6  $(130.4)
Weighted average Units outstanding - diluted (in thousands) 317,961  317,728  317,818  317,721
 FFO (i) $126.9  $128.8  $360.5  $383.3
 FFO (excluding debenture prepayment costs) (i) $126.9  $128.8  $367.5  $383.3
 FFO per unit - diluted (i) $0.40  $0.41  $1.13  $1.21
 FFO per unit - diluted (excluding debenture prepayment costs) (i) $0.40  $0.41  $1.16  $1.21
            


(i)A Non-GAAP measurement. For definitions and the basis of presentation of RioCan's Non-GAAP measures, refer to the Non-GAAP Measures section in RioCan's Management's Discussion and Analysis (MD&A) for the three and nine months ended September 30, 2021.
  

FFO per Unit and Net Income

ESG Update

Capital Recycling

Capital Management Update

Operation Highlights

 Three months ended
September 30		 Nine months ended
September 30
  2021  2020  2021  2020
            
Operation Highlights (i)           
Same property NOI growth (decline) (ii) 6.6%  (9.1)%  2.8%  (6.0)%
Occupancy - committed (iii) 96.4%  96.0%  96.4%  96.0%
Blended leasing spread 7.5%  5.5%  6.8%  5.6%
New leasing spread 7.2%  9.2%  10.5%  9.2%
Renewal leasing spread 7.6%  4.6%  5.5%  4.9%
Rent Collection (iv) 98.1%  90.8%  98.1%  90.8%
            


(i)Includes commercial overall portfolio only.
(ii)A Non-GAAP measurement. For definitions and the basis of presentation of RioCan's Non-GAAP measures, refer to the Non-GAAP Measures section in RioCan's Management's Discussion and Analysis (MD&A) for the three and nine months ended September 30, 2021.
(iii)Information presented as at respective periods then ended.
(iv)Represents percentage of total billed gross rents for the Third Quarter which has been collected in cash as of November 9, 2021.
  

RioCan Living Update

               
Residential Rental Buildings in Operation Number of
total units		  Date of
lease launch		  % of leased units
as of
November 9, 2021		  % of leased units
as of
August 4, 2021		  % increase
               
eCentral (Yonge Eglinton Northeast Corner, Toronto) (i) 466  December 2018  92.5%  88.4%  4.1%
Frontier (Gloucester, Ottawa) 228  May 2019  97.4%  97.4%  —%
Brio (Brentwood Village, Calgary) 163  April 2020  97.5%  93.8%  3.7
%
Pivot (Yonge Sheppard Centre, Toronto) (ii) 361  October 2020  72.0
%  44.9%  27.1%
Litho. (Dupont Street, Toronto) (iii) 210  July 2021  37.1%  12.9%  24.2%
               
               
Condominium Projects in Pre-construction (iv) Number of
total units		  Date of
sales launch		  % of pre-sold units
released as of
November 9, 2021		  % of pre-sold units
released as of
August 4, 2021		  % increase
               
U.C. Towns 2, Oshawa, ON 65  August 2021  100.0%  —%  100.0%
U.C. Tower 2, Oshawa, ON (v) 993  August 2021  78.4%  —%  78.4%
Queen & Ashbridge, Toronto, ON 399  September 2020  95.1%  91.8%  3.3%
Verge West (phase one), Toronto, ON (vi) 197  July 2021  96.0%  —%  96.0%
Verge East (phase two), Toronto, ON (vii) 335  October 2021  88.4%  —%  88.4%
               


(i)As of November 9, 2021, the 431 leased units included 376 market rent units.
(ii)As of November 9, 2021, the 260 leased units included 254 market rent units.
(iii)Litho, which was substantially complete in Q4 2021, had a number of early move-ins during the quarter.
(iv)Excludes a total of 1,242 condominium units under construction at the 11 YV, U.C. Uptowns and U.C. Tower projects for which sales launched in September 2019, March 2017 and November 2018, respectively.
(v)U.C. Tower 2 consists of two condominium towers and 18 townhomes. The pre-sold percentage is calculated on the total 606 units in phase one, consisting of 588 condominium units and 18 townhomes. The second phase of U.C. Tower 2 is expected to be released for sale in April 2022.
(vi)176 of these units have been released for sale.
(vii)251 of these units have been released for sale.
  

Development Highlights

 Three months ended
September 30		 Nine months ended
September 30
(in millions except square feet) 2021  2020  2021  2020
            
Development Highlights           
Development completions - sq. ft. in thousands 97.0  72.0  157.0  209.0
Development expenditures (i) $136.0  $134.5  $333.7  $352.0
Under Active Development - sq. ft. in thousands (ii) 3,436.0  3,661.0  3,436.0  3,661.0
            

(i)   Includes costs incurred for various properties under development and for residential inventory in respective reporting periods.
(ii)  Information presented as at respective periods then ended and includes properties under development and residential inventory.

Balance Sheet Strength

(in millions except percentages)
As at		     September 30,
2021		 December 31,
2020
           
Balance Sheet Strength Highlights          
 Liquidity (i)      $ 1,136 $1,577
 Debt to Adjusted EBITDA (i) (ii)      9.97x  9.47x
 Ratio of total debt to total assets (i) (ii) (iii)      44.4%  45.0%
 Unencumbered assets (i) (ii) (iii)     $ 8,570 $8,727
 Unencumbered assets to unsecured debt (i) (ii) (iii)      226%  215%
           


(i)At RioCan's proportionate share.
(ii)A Non-GAAP measurement. For definitions and the basis of presentation of RioCan's Non-GAAP measures, refer to the Non-GAAP Measures section in RioCan's Management's Discussion and Analysis (MD&A) for the three and nine months ended September 30, 2021.
(iii)Information presented as at respective periods then ended.
  

Conference Call and Webcast

Interested parties are invited to participate in a conference call with management on Wednesday, November 10, 2021 at 10:00 a.m. (ET). Participants will be required to identify themselves and the organization on whose behalf they are participating.

In order to participate, please dial 647-427-3230 or 1-877-486-4304. For those unable to participate in the live mode, a replay will be available at 1-855-859-2056, passcode 1167207#.

For a copy of the slides to be used for the conference call or to access the simultaneous webcast, visit RioCan’s website at http://investor.riocan.com/investor-relations/events-and-presentations/ and click on the link for the webcast.

About RioCan

RioCan is one of Canada’s largest real estate investment trusts. RioCan owns, manages and develops retail-focused, increasingly mixed-use properties located in prime, high-density transit-oriented areas where Canadians want to shop, live and work. As at September 30, 2021, our portfolio is comprised of 210 properties with an aggregate net leasable area of approximately 36.9 million square feet (at RioCan's interest) including office, residential rental and 15 development properties. To learn more about us, please visit www.riocan.com.

Basis of Presentation and Non-GAAP Measures

All figures included in this News Release are expressed in Canadian dollars unless otherwise noted. RioCan’s unaudited interim condensed consolidated financial statements ("Condensed Consolidated Financial Statements") are prepared in accordance with International Financial Reporting Standards (IFRS). Financial information included within this News Release does not contain all disclosures required by IFRS, and accordingly should be read in conjunction with the Trust's Condensed Consolidated Financial Statements and MD&A for the three and nine months ended September 30, 2021, which is available on RioCan's website at www.riocan.com and on SEDAR at www.sedar.com.

Consistent with RioCan’s management framework, management uses certain financial measures to assess RioCan’s financial performance, which are not in accordance with generally accepted accounting principles (GAAP) under IFRS. Funds From Operations (“FFO”) and FFO (excluding debenture prepayment costs), Same Property NOI, Debt to Adjusted EBITDA, Ratio of Total Debt to Total Assets, RioCan's Proportionate Share and Unencumbered Assets to Unsecured Debt, as well as other measures that may be discussed elsewhere in this News Release, do not have a standardized definition prescribed by IFRS and are, therefore, unlikely to be comparable to similar measures presented by other reporting issuers. RioCan supplements its IFRS measures with these Non-GAAP measures to aid in assessing the Trust’s underlying performance and reports these additional measures so that investors may do the same. 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 flow, and profitability. For full definitions of these measures, please refer to the "Non-GAAP Measures” section in RioCan’s MD&A for the three and nine months ended September 30, 2021.

Forward-Looking Information

This News Release contains forward-looking information within the meaning of applicable Canadian securities laws. This information reflects RioCan’s objectives, our strategies to achieve those objectives, as well as statements with respect to management’s beliefs, estimates and intentions concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking information generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plan”, “continue”, or similar expressions suggesting future outcomes or events. Such forward-looking information reflects management’s current beliefs and is based on information currently available to management. All forward-looking information in this News Release is qualified by these cautionary statements. Forward-looking information is not a guarantee of future events or performance and, by its nature, is based on RioCan’s current estimates and assumptions, which are subject to numerous risks and uncertainties, including those described in the “Risks and Uncertainties” section in RioCan's MD&A for the three and nine months ended September 30, 2021 and in our most recent Annual Information Form, which could cause actual events or results to differ materially from the forward-looking information contained in this News Release. General economic conditions, including interest rate fluctuations, may also have an effect on RioCan’s results of operations. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include, but are not limited to: a gradual recovery and growth of the retail environment and the general economy over 2021; relatively historically low interest costs; a continuing trend toward land use intensification at reasonable costs and development yields, including residential development in urban markets; access to equity and debt capital markets to fund, at acceptable costs, future capital requirements and to enable our refinancing of debts as they mature; the availability of investment opportunities for growth in Canada; the timing and ability for RioCan to sell certain properties; the valuations to be realized on property sales relative to current IFRS values; and the Trust's ability to utilize the capital gain refund mechanism. Although the forward-looking information contained in this News Release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with this forward-looking information.

Given the current level of uncertainty arising from the COVID-19 pandemic, there can be no assurance regarding the impact of COVID-19 on the business, operations, and financial performance of RioCan and its tenants, as well as on consumer behaviors and the economy in general. General risks and uncertainties related to the COVID-19 pandemic also include, but are not limited to, the length, spread and severity of the pandemic; the timing of the roll out and efficacy of the vaccines, the nature and length of the restrictive measures implemented or to be implemented, including any loosening of the restrictive measures, by various levels of government in Canada; RioCan's tenants' ability to pay rents as required under their leases; the availability of various support programs that are or may be offered by the various levels of government in Canada; the introduction or extension of temporary or permanent rent control or other forms of regulation or legislation that may limit the Trust's ability or the extent to which it can raise rents based on market conditions upon lease renewals or restrict existing landlord rights or a landlord's ability to reinforce such rights; domestic and global supply chains; timelines and costs related to the Trust’s development projects; the pace of property lease-up and rents and yields achieved upon development completion; potential changes in leasing activities, market rents and property valuations; the capitalization rates that arm's length buyers and sellers are willing to transact on properties; the availability and extent of rent deferrals offered or to be offered by the Trust; domestic and global credit and capital markets, and the Trust's ability to access capital on favourable terms or at all and its ability to maintain its credit ratings; the total return and dividend yield of RioCan's Units; and the health and safety of our employees, tenants and people in the communities that our properties serve.

The forward-looking statements contained in this News Release are made as of the date hereof, and should not be relied upon as representing RioCan’s views as of any date subsequent to the date of this News Release. Management undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.