TRANSFORMING… RIOCAN INVESTOR PRESENTATION Fourth Quarter and Year End 2013 March 6, 2014
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 82 million 340 sqft total portfolio retail properties in Canada & U.S. 54 million sqft owned $ 7.5 billion $ 13.8 billion market cap enterprise value ~ 7,600 tenancies ~ 86 % revenue generated by national and anchor tenants 3
Core Strengths Dominant platform, geographically diversified Conservative balance sheet / financial strength Strong, reliable distribution yield provided to investors Stable, diversified portfolio of national retail tenants Disciplined growth strategy in Canada and U.S. 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 47 293 MA CT retail properties retail properties PA 9.9 million sqft 44 million sqft 15% 85% VA annualized rental annualized rental revenue revenue TX 5 As at December 31, 2013 at RioCan’s interest
Property Portfolio – Canada Annualized Rental Revenue by Major Market Rest of Canada, 28.3% Major markets combined, 71.7% BC 4.0 % 6.1 % 3.8% AB Edmonton 7.2 % QC Vancouver ON 8.7 % Calgary 41.9% Montreal Ottawa Toronto 6
Property Portfolio – U.S. Regional Market Strategy & Focus Annualized Rental Revenue by State 2.2 % 2.5 % 21.1 % 3.2 % 47 NH retail properties 2.2% MA 0.7 % NY RI CT 9.9 million sqft NJ PA 2.2 % MD WV 6.7 % VA 54.4 % 1.8% 2.6 % TX As at December 31, 2013 at RioCan’s interest 7
Strong Tenant Relationships 8
Strong Tenant Relationships Top 10 Canada & US Combined As at December 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 3.7% 32 3,915 12.8 2 Canadian Tire Corporation (i) 3.4% 91 1,984 8.6 3 Cineplex/Galaxy Cinemas 3.2% 30 1,388 10.2 4 Metro/Super C/Loeb/Food Basics 3.2% 57 2,100 7.1 5 Winners/HomeSense/Marshalls 2.6% 72 1,612 7.1 6 Loblaws/No Frills/Fortinos/Zehrs/Maxi (ii) 2.5% 32 1,438 7.4 7 Target Corporation 1.8% 25 2,076 8.4 8 1.7% 51 1,009 5.9 Staples/Business Depot 9 Shoppers Drug Mart 1.6% 51 554 8.7 10 Cara/Prime Restaurants 1.6% 113 476 7.2 (i) Canadian Tire Corporation includes Canadian Tire/PartSource/Mark's Work Wearhouse/Sport Mart/Sport Chek/Sports Experts/National Sports/Atmosphere (ii) Lowblaws has entered into an agreement to purchase Shoppers Drug Mart, that when completed will make Loblaws RioCan’s largest tenant by gross revenue. 9
Strong Tenant Relationships Top 10 U.S. As at December 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 10.1% 22 1,113 12.1 Giant Food Stores/ Stop & Shop (Royal Ahold) 2 3.8% 11 359 6.6 Best Buy 3 PetSmart 2.8% 13 281 4.9 4 Walmart 2.6% 5 880 15.0 5 Michael’s 2.6% 14 291 5.4 6 Ross Dress for Less 2.0% 9 266 5.2 7 Office Depot / Max 2.0% 11 215 5.3 8 1.7% 9 237 6.4 Bed Bath & Beyond 9 1.5% 3 476 13.8 Lowes 10 1.3% 4 338 11.8 Kohls 10
Lease Rollover Profile Broadly Distributed Lease Expiries % Square Feet expiring / portfolio NLA Canadian Portfolio As at December 31, 2013 4,752 4,592 ’ 000s Square Feet 4,395 4,108 3,568 11.7% 11.2% 9.1% 10.4% 12.1% 2014 2015 2016 2017 2018 U.S. Portfolio 1,146 As at December 31, 2013 ’ 000s Square Feet 732 700 482 494 11.6% 7.4% 7.1% 4.9% 5.0% 2014 2015 2016 2017 2018 11
Occupancy since 1996 Historical Occupancy Rates 1996 to 2013 97.7% 97.6% 97.4% 97.6% 97.4% 97.4% 97.1% 96.9% 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 2012 2013 12
Financial Highlights Q4 & 2013
Financial Highlights 492 Operating FFO* Revenues 440 (at RioCan’s interest in millions of $ except per unit amounts) 15% CAGR 380 1,114 1,195 329 280 12% CAGR 988 882 758 2009 2010 2011 2012 2013 Operating FFO* Per Unit 1.63 7.5% CAGR 1.52 1.43 1.33 1.22 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 Years ended December 31st * Note: FFO reported under IFRS for 2010 onwards, excludes trading gain income 14
Quarterly Financial Highlights Revenues* Operating FFO 90 93 97 100 103 106 115 116 124 121 124 124 (in millions of $ except per unit amounts) 306 300 292 283 285 267 274 269 271 237 237 246 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 Operating FFO Per Unit 0.41 0.40 0.41 0.41 0.40 0.39 0.35 0.36 0.37 0.36 0.37 0.37 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 * At RioCan’s interest 2013 2011 2012 15
Financial Highlights Net Operating Income* 2009 –2013 Net Operating Income* Q1 2011 – Q4 2013 (in millions of $) 758 704 196 622 187 186 187 188 551 182 466 171 172 167 156 148 151 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2011 2012 2013 2009 2010 2011 2012 2013 * At RioCan’s interest 16
Financial Highlights Distributions to Unitholders Distributions to Unitholders per Unit (in millions) 1.3275 1.36 1.38 1.38 1.38 1.38 1.41 426 401 318 343 367 297 0.99 1.04 1.13 1.14 1.07 1.01 1.04 228 261 281 285 293 316 2007 2008 2009 2010 2011 2012 2013* 2008 2009 2010 2011 2012 2013 Distributions to Unitholders net of DRIP Distributions per Unit net of DRIP 17
Financial Highlights $ per unit Payout Ratio % Change 2013 2012 2013 2012 Distribution 2.2% 1.41 1.38 n/a n/a FFO 6.1% 1.56 1.47 90.4% 93.9% OFFO 7.2% 1.63 1.52 86.5% 91.8% AFFO 6.5% 1.48 1.39 95.3% 99.3% Canada United States 2013 2012 2013 2012 Same Store NOI Growth 1.7% 0.9% 1.7% 0.5% Same Property NOI Growth 1.3% 1.0% 1.7% 0.5% 18
Financial Highlights • During 2013, RioCan consolidated its ownership of virtually all of the US properties that were previously owned through joint venture arrangements. RioCan has opened regional offices in Mount Laurel, New Jersey and Dallas, Texas which are supported by RioCan’s headquarters in Toronto, Canada, to manage RioCan’s American portfolio; • On January 29, 2014, RioCan and its partners, Allied Properties REIT and Diamond Corporation, announced The Well. This mixed use development project, located at the corner of Front Street and Spadina Avenue in close proximity to downtown Toronto on a 7.7 acre site, is expected to comprise of up to 3.2 million square feet of retail, office and residential properties; As at December 31, 2013, RioCan had ownership interests in 16 properties under development that • will, upon completion, comprise approximately 5 million square feet at RioCan’s interest; For the year, RioCan acquired interests in 32 income properties in Canada and the US aggregating to • 3.0 million square feet at an aggregate purchase price of approximately $849 million at RioCan’s interest at a weighted average capitalization rate of 5.7%; 19
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