MANAGEMENT PRESENTATION August 2009 FORWARD LOOKING STATEMENTS - PDF document

MANAGEMENT PRESENTATION August 2009

FORWARD LOOKING STATEMENTS Certain information included in this presentation contains forward-looking statements within the meaning of applicable securities laws including, among others, statements concerning our 2009 objectives, our 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. Certain material factors, estimates or assumptions were applied in drawing a conclusion or making a forecast or projection as reflected in these statements and actual results could differ materially from such conclusions, forecasts or projections. Additional information on the material risks that could cause our actual results to differ materially from the conclusions, forecast or projections in these statements and the material factors, estimates or assumptions that were applied in drawing a conclusion or making a forecast or projection as reflected in the forward-looking information can be found in our annual information form and annual report that are available on our website and at www.sedar.com. Except as required by applicable law, RioCan undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. 2

ABOUT RIOCAN

ABOUT RIOCAN Enterprise Ownership Largest REIT value of over interests in 247 in Canada $7.1 billion properties Over 59 million 13 properties Revenue of Total tenancies under $187 million in sq ft under 5,600 management development Q2 2009 Over 14% 9.4 million National and compounded anchor tenants sq ft of annual return represent 84.6% development since IPO Experienced and deep Strong Joint $3.5 billion Diversified property Venture of debt under tenant base management Partnerships management team Over $2.3 Distribution per Leader in billion unit increase corporate distributed to unitholders every year governance since the IPO 4

ABOUT RIOCAN • Largest REIT in Canada with 247 properties, including 13 under development, owned interests totalling over 36 million sq. ft. and over $7.1 of enterprise value � Able to prosperously grow in all cycles of the market using prudent strategies, core competencies, right partners and staying ahead of trends in commercial real estate • Focused on retail real estate with experience in office and mixed use real estate � Management team of RioCan has experience in all the sectors of commercial real estate • Full service real estate entity with property management, asset management, leasing, acquisitions, development and financing capabilities with over 600 employees � Able to undertake any task within the real estate business • Conservative use of leverage � Investment grade entity rated “BBB” and “BBB (high)” by S&P and DBRS, respectively • Unmatched breadth of tenant relationships in Canada � Of 5,600 tenants, no tenant representing over 5.3% of annualized rental revenue • Experienced asset manager with strong partners � Completed a number of successful JVs and enjoyed a continued demand for its asset management expertise from existing and new partners 5

MARKET OVERVIEW

Canada. Weathering the Storm • “The effect of the turmoil on the Canadian financial system is, so far, milder than in other G7 economies. Interbank money markets remained functional. No injections of public capital into banks were necessary. The resilience appears particularly striking given the close economic and financial links between Canada and the United States.” Source: International Monetary Fund; Canada: Selected Issues May 2009 • Canadian housing market slowed, but the lack of a “subprime” market and exotic residential mortgage structures limited foreclosures and thus value correction has not been as severe. • Securitization and private equity remained a small portion of the Canadian market, even at its peak, tempering gains and leverage. • Leveraged M&A activity in the REIT sector during the peak was non-existent ie. No transactions like Arden, Equity Office, or General Growth. • Variable rate short term financing in the commercial market was used very rarely. 7

Only six metropolitan markets within Canada have in excess of one m illion people 8

CANADA’S SIX HIGH GROWTH MARKETS 1996-2006 MARKET 1996 2006 % Change Change Toronto, Ontario 4,263,759 5,113,149 19.92% 849,390 Montréal, Quebec 3,326,447 3,635,571 9.29% 309,124 Vancouver, British Columbia 1,831,665 2,116,581 15.56% 284,916 Ottawa-Gatineau, Ontario/Quebec 998,718 1,130,761 13.22% 132,043 Calgary, Alberta 821,628 1,079,310 31.36% 257,682 Edmonton, Alberta 862,597 1,034,945 19.98% 172,348 Total 12,104,814 14,110,317 16.57% 2,005,503 Source - Statistics Canada 9

STABLE GROWTH IN GLA ACROSS TOP 6 MARKETS * Increase in total GLA equal to population growth 16.35 Canadian GLA per Capita: 19.5 U.S. GLA per Capita: NEWFOUNDLAND BRITISH 21.7 SF & COLUMBIA LABRADOR p.c. 13.3 SF ALBERTASASKATCHEWAN p.c. 14.0 SF p.c. Edmonton MANITOBA QUEBEC 15.7 SF 13.5 SF ONTARIO PRINCE 12.6 SF EDWARD ISLAND p.c. p.c. p.c. Calgary 18.6 SF 17.2 SF Vancouver p.c. p.c. Montreal NOVA Ottawa NEW SCOTIA � Space fundamentals are strong with BRUNSWICK 18.2 SF retail inventory per capita at lower Toronto 14.0 SF p.c. levels relative to the US p.c. * Source CBRE - CB Richard Ellis 10

PORTFOLIO FUNDAMENTALS REMAIN STRONG As at June 30, 2009 • High proportion of national tenants � Approximately 85% of our annualized rental revenue is derived from national and anchor tenants • Stable occupancy levels at 97.1% • Solid leasing activity � For the six months ended June 30, 2009, RioCan retained approximately 93.4% or 1.5 million sq. ft. (80.0% for the six months ended June 30, 2008) of our expiring leases at an average net rent increase of 5.8% (9.4% for the six months ended June 30, 2008) • Focus on the six Canadian high growth markets � Approximately two-thirds of our revenue is from properties within the six high growth major Canadian markets Annualized Rental Revenue Net Leasable Area Toronto, Ontario Toronto, Ontario Montreal, Quebec Montreal, Quebec 28.4% 33.8% 34.2% Ottawa, Ontario Ottawa, Ontario 41.1% Calgary, Alberta Calgary, Alberta Vancouver, British Columbia Vancouver, British Columbia Edmonton, Alberta Edmonton, Alberta 2.7% 11.5% 3.7% All other markets 2.5% All other markets 11.0% 6.2% 8.4% 3.2% 5.5% 7.8% 11

GEOGRAPHIC DIVERSIFICATION As a % of Annualized Rental Revenue (As at June 30, 2009) 17.9% Ontario 10.0% Quebec Alberta 2.1% 5.7% British Columbia 0.5% New Brunswick 0.5% Saskatchewan 0.5% Prince Edward Island 0.4% Manitoba 0.1% Newfoundland Nova Scotia 62.3% 12

PORTFOLIO OVERVIEW

TOP TEN TENANTS 14

UNMATCHED BREADTH OF TENANT RELATIONSHIPS • 5,600 tenancies capturing the top Canadian and American retailers • Only two tenants represent more than 5.0% of annualized rental revenue WEIGHTED ANNUALIZED TOTAL AREA AVG TOP NUMBER OF TENANT NAME RENTAL OCCUPIED REMAINING 10 LOCATIONS (sq. ft. in 000s REVENUE LEASE TERM (yrs) 1 Famous Players/Cineplex/Galaxy Cinemas 5.3% 28 1,265 13.7 Metro/A&P/Super C/Loeb/Food Basics 2 5.2% 52 1,982 8.9 3 Canadian Tire/PartSource/Mark's Work Wearhouse 4.0% 57 1,344 11.8 4 Zellers/The Bay/Home Outfitters 3.6% 38 2,530 8.9 5 Wal-Mart 3.4% 20 1,935 9.5 6 Winners/HomeSense 3.2% 53 1,197 5.4 7 Loblaws/No Frills/Fortinos/Zehrs/Maxi 3.0% 23 1,037 5.8 8 Staples/Business Depot 2.5% 44 902 7.9 1.9% 122 500 4.9 Reitmans/Penningtons/Smart Set/Addition-Elle/Thyme 9 Maternity 10 Harvey's/Swiss Chalet/Kelsey's/Montana's/Milestone's 1.8% 85 358 10.2 15

ANNUALIZED RENTAL REVENUE By Property Type (As at June 30, 2009) 4.8% 8.2% New Format Retail 4.2% Grocery Anchored Centre Enclosed Shopping Centre 47.9% 14.6% Non-Grocery Anchored Centre Urban Retail Office 20.3% 16

LEASE ROLLOVER PROFILE As at June 30, 2009 % Square Feet expiring / portfolio NLA ’ 000s Square Feet 4,000 3,748 3,023 2,949 2,917 3,000 11.2% 2,000 8.8% 9.0% 8.7% 995 1,000 3.0% 0 2009 2010 2011 2012 2013 17

STABLE OCCUPANCY Historical Occupancy Rates 1996 to Q2 2009* 97.7% 97.6% 97.1% 97.1% 96.9% 96.9% 96.3% 96.3% 96.1% 95.8% 95.6% 95.4% 95.0% 95.0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009* 18