TRANSFORMING… RIOCAN INVESTOR PRESENTATION First Quarter 2013 May 14, 2013
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 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
One of North America’s Largest Retail REITS 84 million 344 sqft total portfolio retail properties in Canada & U.S. 54 million sqft owned $ 8.4 billion $ 14.4 billion market cap enterprise value ~ 7,775 tenancies ~ 86 % revenue generated by national and anchor tenants 3
Investment Highlights Strong, reliable distribution yield provided to investors Stable, dominant, and geographically diversified portfolio of national retail tenants Disciplined growth strategy in Canada and U.S. Conservative balance sheet / financial strength and access to capital Positioned to benefit from robust acquisition activity and development pipeline Experienced, performance driven management team 4
Property Portfolio GTA BC MB SA AB QC NFLD ON QC NB 50 294 MA CT retail properties retail properties PA 8.9 million sqft 45 million sqft 85.7% 14.3% VA annualized rental annualized rental revenue revenue TX 5 As at March 31, 2013 at RioCan’s interest
Property Portfolio – Canada Annualized Rental Revenue by Major Market Rest of Proforma Post Acquisitions & Asset Sales Canada, 29.4% Major markets combined, 70.6% BC 3.7 % 5.9 % 3.8% AB Edmonton 9.1 % QC Vancouver ON 8.3 % Calgary 39.8% Montreal Ottawa Toronto 6
Property Portfolio – U.S. Regional Market Strategy & Focus Annualized Rental Revenue by State 2.3 % 2.1 % 21.6 % 3.0 % 50 NH retail properties 2.8% MA 0.7 % NY RI CT 8.9 million sqft NJ PA 2.1 % MD WV 6.7 % VA 55.1 % 0.9 % 2.7 % TX As at March 31, 2013 7
Property Portfolio – U.S. Regional Market Strategy & Focus Annualized Rental Revenue by State – Proforma RPAI Transaction 2.3 % 2.1 % 21.6 % 3.0 % 45 NH retail properties 2.8% MA 0.7 % NY RI CT 8.9 million sqft NJ PA 2.1 % MD WV 6.6 % VA 55.3 % 0.8 % 2.7 % TX 8
Strong Tenant Relationships 9
Strong Tenant Relationships Top 10 Canada & US Combined As at March 31, 2013 Total Area Weighted Avg Annualized Number Of Occupied Remaining Top 10 Tenant Name Rental Locations (Sq. Ft. In Lease Term Revenue 000s) (Yrs) 1 Walmart 4.4% 34 4,110 13.1 2 Canadian Tire Corporation (i) 3.9% 100 2,044 9.0 3 Famous Players/Cineplex/Galaxy Cinemas 3.6% 30 1,417 10.3 4 Metro/Super C/Loeb/Food Basics 3.4% 57 2,081 7.4 5 Winners/HomeSense/Marshalls 3.0% 74 1,699 7.2 6 Loblaws/No Frills/Fortinos/Zehrs/Maxi 2.6% 32 1,315 7.3 7 Staples/Business Depot 2.1% 57 1,135 6.2 8 Target Corporation 1.9% 24 2,014 9.0 9 Future Shop/Best Buy 1.8% 35 799 6.2 10 Shoppers Drug Mart 1.6% 48 525 9.2 (i) Canadian Tire Corporation includes Canadian Tire/PartSource/Mark's Work Wearhouse/Sport Mart/Sport Chek/Sports Experts/National Sports/Atmosphere 10
Strong Tenant Relationships Top 10 Canada As at March 31, 2013 Weighted Total Area Annualized Avg Top Number Of Occupied Tenant Name Rental Remaining 10 Locations (Sq. Ft. In Revenue Lease Term 000s) (Yrs) 1 Walmart 4.7% 29 3,334 12.7 2 Canadian Tire Corporation (i) 4.6% 100 2,044 9.0 3 Famous Players/Cineplex/Galaxy Cinemas 4.2% 30 1,417 10.3 4 Metro/Super C/Loeb/Food Basics 4.0% 57 2,081 7.4 5 Winners/HomeSense/Marshalls 3.4% 68 1,548 7.2 6 Loblaws/No Frills/Fortinos/Zehrs/Maxi 3.1% 32 1,315 7.3 7 Target Corporation 2.2% 24 2,014 9.0 8 2.1% 48 969 6.3 Staples/Business Depot 9 Shoppers Drug Mart 1.9% 48 525 9.2 Reitmans/Penningtons/Smart Set/Addition-Elle/ 10 1.7% 122 510 4.7 Thyme Maternity (i) Canadian Tire Corporation includes Canadian Tire/PartSource/Mark's Work Wearhouse/Sport Mart/Sport Chek/Sports Experts/National 11 Sports/Atmosphere
Strong Tenant Relationships Top 10 U.S. As at March 31, 2013 Weighted Total Area Annualized Avg Top Number Of Occupied Tenant Name Rental Remaining 10 Locations (Sq. Ft. In Revenue Lease Term 000s) (Yrs) 1 Giant Food Stores/ Stop & Shop (Royal Ahold) 9.7% 20 1,025 12.9 2 3.8% 11 332 7.4 Best Buy 3 3.0% 15 286 5.7 PetSmart 4 2.5% 5 776 15.7 Walmart 5 2.1% 13 233 6.2 Michael’s 6 1.9% 10 235 5.5 Ross Dress for Less 7 1.6% 9 166 5.6 Staples 8 1.4% 9 195 7.2 Bed Bath & Beyond 9 1.3% 3 353 15.3 Lowes 10 1.3% 2 138 10.8 Market Street 12
Lease Rollover Profile Broadly Distributed Lease Expiries % Square Feet expiring / portfolio NLA Canadian Portfolio As at March 31, 2013 4,838 ’ 000s Square Feet 4,193 4,120 4,084 2,424 11.8% 10.2% 10.0% 10.1% 5.9% 2013 2014 2015 2016 2017 U.S. Portfolio As at March 31, 2013 707 610 ’ 000s Square Feet 473 448 331 7.9% 6.9% 5.3% 5.0% 3.7% 2013 2014 2015 2016 2017 13
Occupancy since 1996 Historical Occupancy Rates 1996 to 2012 97.7% 97.6% 97.4% 97.6% 97.4% 97.4% 97.1% 97.0% 96.9% 96.9% 96.3% 96.3% 96.1% 95.6% 95.8% 95.4% 95.0% 95.0% 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Q1 2013 As at March 31, 2013 14
Financial Highlights Q1 2013
Financial Highlights • RioCan’s Operating FFO increased by 20% to $124 million for the three months ending March 31, 2013 (“First Quarter”) compared to $103 million in the first quarter of 2012. On a per unit basis, Operating FFO increased 11% to $0.41 per unit from $0.37 per unit in the same period of 2012; • Overall occupancy was 97.0% at March 31, 2013, compared to 96.9% at March 31, 2012; • RioCan renewed 808,000 square feet in the Canadian portfolio during the First Quarter at an average rent increase of $1.93 per square foot, representing an increase of 13.4%, compared to 10.0% for the same period in 2012; • During the First Quarter, RioCan acquired interests in one income property in Canada and one income property in the US aggregating approximately 169,000 square feet at an aggregate purchase price of $19 million at RioCan’s interest at a weighted average capitalization rate of 6.3%; • Subsequent to the quarter end, RioCan completed the purchase of four properties in Canada at an aggregate purchase price of $418 million and a weighted average capitalization rate of 5.2%, which includes Burlington Mall and Oakville Place, two regional enclosed malls; • Subsequent to the quarter end, RioCan sold or has under firm contract to sell four properties located in secondary markets at a total purchase price of $364 million; 16
Financial Highlights • During the First Quarter, RioCan issued $250 million of Series S five year senior unsecured debentures at interest rate of 2.87%. Subsequent to the quarter end, RioCan has filed a Redemption Notice for the $150 million Series M debentures that carry a coupon of 5.65% and issued $200 million Series T ten year senior unsecured debentures at an interest rate of 3.725%; • On February 7, 2013 RioCan sold its entire position of 9.4 million shares of Cedar for total proceeds of approximately US$48 million and during the quarter RioCan opened its first regional office outside of Canada in Mount Laurel, New Jersey; and • Beginning January 2013, RioCan increased its monthly distribution by 2% to $0.1175 per unit ($1.41 per unit annualized from $1.38 per unit). 17
Financial Highlights Operating FFO* Revenues 440 380 (in millions of $ except per 276 unit amounts) 1,128 315 324 988 882 764 758 2008 2009 2010 2011 2012 Operating FFO* Per Unit 1.52 1.43 1.33 1.32 1.22 2008 2009 2010 2011 2012 2008 2009 2010 2011 2012 Years ended December 31st * Note: FFO reported under IFRS for 2010 onwards, excludes trading gain income 18
Quarterly Financial Highlights Revenues* Operating FFO 83 85 83 90 93 97 100 103 106 115 116 124 (in millions of $ except per unit amounts) 301 306 283 267 274 269 234 237 237 246 220 216 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 2012 2013 Operating FFO Per Unit 0.41 0.40 0.39 0.35 0.36 0.37 0.36 0.37 0.37 0.34 0.34 0.33 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 2010 2011 2012 2013 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 * At RioCan’s interest 2013 2010 2011 2012 As at March 31, 2013 19
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