MANAGEMENT PRESENTATION April 2009 MANAGEMENT PRESENTATION April 2009
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MANAGEMENT PRESENTATIONApril 2009
MANAGEMENT PRESENTATIONApril 2009
FORWARD LOOKING STATEMENTSFORWARD LOOKING STATEMENTS
Certain information included in this presentation contains forward looking statementsCertain information included in this presentation contains forward looking statementsCertain 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
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 circumstancessimilar 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 f h l i f t j ti
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 f h l i f t j tifrom 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
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 conclusionmaterial 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.E cept as req ired b applicable la RioCan ndertakes no obligation to p blicl
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.E cept as req ired b applicable la RioCan ndertakes no obligation to p bliclExcept 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.
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.
22
MARKET OVERVIEWMARKET OVERVIEWMARKET OVERVIEWMARKET OVERVIEW
Only six metropolitan markets
within Canada have in excess
Only six metropolitan markets
within Canada have in excess within Canada have in excess
of one million people
within Canada have in excess
of one million peoplep pp p
44
CANADA’S SIX HIGH GROWTH MARKETSCANADA’S SIX HIGH GROWTH MARKETS
MARKET 1996 20061996-2006
% 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 682Calgary, 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
55
Source - Statistics CanadaSource - Statistics Canada
STABLE GROWTH IN GLA ACROSS TOP 6 MARKETS*STABLE GROWTH IN GLA ACROSS TOP 6 MARKETS*
Increase in total GLA equal to population growthIncrease in total GLA equal to population growth
C di GLA C it 16 35C di GLA C it 16 35Canadian GLA per Capita: 16.35U.S. GLA per Capita: 19.5Canadian GLA per Capita: 16.35U.S. GLA per Capita: 19.5
BRITISH COLUMBIA
BRITISH COLUMBIA
ALBERTAALBERTA
NEWFOUNDLAND&
LABRADOR
NEWFOUNDLAND&
LABRADOR21.7 SF
p.c.21.7 SF
p.c.13.3 SF13.3 SFALBERTAALBERTASASKATCHEWANSASKATCHEWAN
MANITOBAMANITOBA
ONTARIOONTARIO
QUEBECQUEBEC
PRINCE EDWARD ISLAND
PRINCE EDWARD ISLAND
14.0 SFp.c.
14.0 SFp.c.
15.7 SF15.7 SF 13.5 SFp c
13.5 SFp c 12.6 SF12.6 SF
p.c.p.c.EdmontonEdmonton
EDWARD ISLANDEDWARD ISLAND
VancouverVancouver
p.c.p.c. p.c.p.c.18.6 SF
p.c.18.6 SF
p.c.
12.6 SFp.c.
12.6 SFp.c.
17.2 SFp.c.
17.2 SFp.c.
CalgaryCalgary
MontrealMontrealNOVA
SCOTIANOVA
SCOTIANEW BRUNSWICK
NEW BRUNSWICK
18.2 SFp.c.
18.2 SFp.c.14.0 SF14.0 SFTorontoToronto
OttawaOttawaSpace fundamentals are strong with retail inventory per capita at lower levels relative to the US
Space fundamentals are strong with retail inventory per capita at lower levels relative to the US
66
p.c.p.c.
* Source CBRE - CB Richard Ellis* Source CBRE - CB Richard Ellis
levels relative to the USlevels relative to the US
ABOUT RIOCANABOUT RIOCANABOUT RIOCANABOUT RIOCAN
ABOUT RIOCANABOUT RIOCAN
Largest REIT in Canada
Enterprise value of over
Ownership interests in 247 in Canada $6.1 billion properties
13 properties Over 59 million Over 5 500 Revenue of under
developmentsq ft under
management
Over 5,500 tenancies $763.8 million
in 2008
Over 14% 3.4 million sq ft of
development
Over 14% compounded annual return
since IPO
National and anchor tenants
represent 83.6%
Experienced and deep property
management team
Managing billions of $ for
JV partners
3.3 million sq ft of
development pipeline
$2.6 billion of debt under management
Over $1.8 billion
distributed to unitholders
since the IPO
Leader in corporate
governance
Distribution per unit increase every year
88
since the IPO
ABOUT RIOCANABOUT RIOCAN
• Largest REIT in Canada with 247 properties, including 13 under development, t t lli 59 illi ft d $6 1B f t i l
• Largest REIT in Canada with 247 properties, including 13 under development, t t lli 59 illi ft d $6 1B f t i ltotalling 59 million sq. ft. and over $6.1B 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
totalling 59 million sq. ft. and over $6.1B of enterprise valueAble 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 estateFocused on retail real estate with experience in office and mixed use real estateManagement 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 640
Focused on retail real estate with experience in office and mixed use real estateManagement 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 640 employees
Able to undertake any task within the real estate business• Conservative use of leverage
employeesAble to undertake any task within the real estate business
• Conservative use of leverageInvestment grade entity rated “BBB” and “BBB (high)” by S&P and DBRS, respectively
• Unmatched breadth of tenant relationships in CanadaOver 5,500 tenants with no tenant representing over 5.4% of annualized rental revenue
Investment grade entity rated “BBB” and “BBB (high)” by S&P and DBRS, respectively• Unmatched breadth of tenant relationships in Canada
Over 5,500 tenants with no tenant representing over 5.4% 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
• Experienced asset manager with strong partnersCompleted a number of successful JVs and enjoyed a continued demand for its asset management expertise from existing and new partners
99
PORTFOLIO OVERVIEWPORTFOLIO OVERVIEWPORTFOLIO OVERVIEWPORTFOLIO OVERVIEW
PORTFOLIO FUNDAMENTALS REMAIN STRONGPORTFOLIO FUNDAMENTALS REMAIN STRONG
• High proportion of national tenantsApproximately 83% of our annualized rental revenue is derived from national and anchor tenants
• High proportion of national tenantsApproximately 83% of our annualized rental revenue is derived from national and anchor tenants
As at December 31, 2008As at December 31, 2008
pp y• Stable occupancy levels at 96.9%• Strong leasing activity
At December 31, 2008, RioCan retained approximately 85.8% (86.1% as at December 31, 2007) of our expiring leases at an average net rent increase of 11 7% (9 5% as at December 31 2007)
pp y• Stable occupancy levels at 96.9%• Strong leasing activity
At December 31, 2008, RioCan retained approximately 85.8% (86.1% as at December 31, 2007) of our expiring leases at an average net rent increase of 11 7% (9 5% as at December 31 2007)of our expiring leases at an average net rent increase of 11.7% (9.5% as at December 31, 2007)Approximately 2.9 million square feet have been renewed as at December 31, 2008
• Focus on the six Canadian high growth marketsApproximately two-thirds of our revenue is from properties within the six high growth major Canadian markets
of our expiring leases at an average net rent increase of 11.7% (9.5% as at December 31, 2007)Approximately 2.9 million square feet have been renewed as at December 31, 2008
• Focus on the six Canadian high growth marketsApproximately two-thirds of our revenue is from properties within the six high growth major Canadian marketsCanadian marketsCanadian markets
Rental RevenueRental Revenue Net Leasable AreaNet Leasable Area
Toronto, Ontario Toronto, OntarioNet Leasable Area
As at September 30, 2008Rental revenue for the year months
ended September 30, 2008
34.7%32.9%Montreal, Quebec
Ottawa, Ontario
C l Alb t
27.9%
42.0%
Montreal, Quebec
Ottawa, Ontario
C l Alb t
10 5%3.8%2.8%
Calgary, Alberta
Vancouver, British Columbia
Edmonton, Alberta10.8%
Calgary, Alberta
Vancouver, British Columbia
Edmonton, Alberta
1111
10.5%9.0%6.3% All other markets 8.0%
5.6%3.3%2.4% All other markets
UNMATCHED BREADTH OF TENANT RELATIONSHIPSUNMATCHED BREADTH OF TENANT RELATIONSHIPS
ANNUALIZED TOTAL AREA # OF WEIGHTED AVG
• Over 5,500 tenancies capturing the top Canadian and American retailers • No tenant represents over 5.4% of annualized rental revenue• Over 5,500 tenancies capturing the top Canadian and American retailers • No tenant represents over 5.4% of annualized rental revenue
RANK TENANT NAME RENTAL REVENUE
OCCUPIED (sq. ft. in 000s)
# OF LOCATIONS REMAINING LEASE
TERM (yrs)
1 Famous Players/Cineplex/Galaxy Cinemas 5.4% 1,265 28 14.2
2 Metro/A&P/Super C/Loeb/Food Basics 5.4% 2,000 53 9.3
3 Canadian Tire/PartSource/Mark's Work Wearhouse 4.0% 1,319 56 12.0
4 Zellers/The Bay/Home Outfitters 3.6% 2,552 37 9.2
5 Wal-Mart 3.3% 1,804 19 9.3
6 Winners/HomeSense 3.3% 1,037 53 5.6
7 Loblaws/No Frills/Fortinos/Zehrs/Maxi 3.0% 1,037 22 6.4
8 Staples/Business Depot 2.5% 902 44 8.4
9 Reitmans/Penningtons/Smart Set/Addition-Elle/Thyme Maternity 2.0% 504 123 5.0
10 Harvey's/Swiss Chalet/Kelsey's/Montana's/Milestone's 1.7% 333 77 9.8
11 Shoppers Drug Mart 1.7% 373 35 10.9
12 Best Buy/Future Shop 1.6% 443 21 7.6
13 Sport Mart/ Sport Chek/Sports Experts/National Sports/Coast Mountain Sports 1.5% 424 46 6.0 13 Spo t a t/ Spo t C e /Spo ts pe ts/ at o a Spo ts/Coast ou ta Spo ts 5% 6 6 0
14 Chapters/Indigo 1.4% 317 23 5.2
15 Sobeys/Empire 1.1% 398 14 9.1
16 PetSmart 1.1% 275 21 5.8
17 Blue Notes/Stitches/Suzy Shier/Urban Planet 1.0% 231 57 11.0
18 Sears 1 0% 410 14 4 018 Sears 1.0% 410 14 4.0
19 Safeway 1.0% 378 11 7.6
20 Dollarama 1.0% 360 43 6.9
21 Rona/Revy/Reno 0.8% 328 5 14.6
22 TD Bank 0.8% 144 39 8.8
1212
23 Premier Fitness 0.8% 261 8 9.3
24 The Brick 0.6% 222 12 10.7
25 Michael's 0.6% 191 15 6.4
TOP TEN TENANTSTOP TEN TENANTS
1313
GEOGRAPHIC DIVERSIFICATIONGEOGRAPHIC DIVERSIFICATIONAs a % of Annualized Rental Revenue (As at December 31, 2008)As a % of Annualized Rental Revenue (As at December 31, 2008)
0.5%0.6%
4.0%
0.5%0.8% 0.2%
9.1%
5.4%4.0%
OntarioQuebecAlbertaB iti h C l biBritish ColumbiaNew BrunswickSaskatchewanNewfoundland
60.0%18.9%
NewfoundlandManitobaPrince Edward Island Nova Scotia
1414
ANNUALIZED RENTAL REVENUEANNUALIZED RENTAL REVENUEBy Property Type (As at December 31, 2008)By Property Type (As at December 31, 2008)
8.1%4.4%
4.6%New Format Retail
Grocery Anchored Centre
48.9%14.4%Enclosed Shopping Centre
Non-Grocery AnchoredCentreCentreUrban Retail
Office
19.6%
1515
LEASE ROLLOVER PROFILELEASE ROLLOVER PROFILEAs at December 31, 2008
3,7764,000
% Square Feet expiring / portfolio NLA000s Square Feet
2 203
3,2222,926 2,8953,000
2,203
2,0009.8%9.8%
11.5%11.5%8.9%8.9% 8.8%8.8%
1,0006.7%6.7%
02009 2010 2011 2012 2013
$34,905 $45,651 $53,945 $46,470 $46,690Total Net Rent(000s)
1616
(000s)
Q4 & YEAR END 2008 HIGHLIGHTSQ4 & YEAR END 2008 HIGHLIGHTS
(In thousands of dollars, except per unit amounts)
Q4 2008 Q4 2007 CHANGE YEAR END 2008
YEAR END 2007 CHANGE
Net Operating Income $ 118,568 $108,443 9% $453,595 $427,483 6%
Fees and Other Income 2,948 3,446 (14%) 17,264 13,902 24%Income
Interest Income 3,718 4,652 (20%) 16,186 15,774 3%
Gains on Properties Held for Resale
14,016 20,129 (30%) 34,446 41,217 (16%)
Interest Expense 42,922 40,729 5% 167,541 156,754 7%
General and Administrative Expense
9,078 8,448 7% 31,327 27,009 16%
Funds from 87 250 87 493 - 322 623 314 613 3%Operations (FFO) 87,250 87,493 - 322,623 314,613 3%
FFO per unit $0.39 $0.42 $1.48 $1.51
1717
Q4 & YEAR END 2008 HIGHLIGHTSQ4 & YEAR END 2008 HIGHLIGHTS(Continued) (Continued)
(3 months ended December 31)(In thousands of dollars)
2008 2007 CHANGE
Same properties $104 425 $100 816 3 6%Same properties $104,425 $100,816 3.6%
2008 and 2007 acquisitions 4,095 - 100%
2008 and 2007 dispositions 140 339 (58.7%)
Greenfield development 6,166 4,015 53.6%
NOI before adjustments 114,826 105,170 9.2%
Lease cancellation fees 630 623 1.1%
Straight-lining of rents 1,841 1,929 (4.6%)
Differential between contractual and market rents 1 271 721 76 3%Differential between contractual and market rents 1,271 721 76.3%
NOI $118,568 $108,443 9.3%
(Year ended December 31)(In thousands of dollars)
2008 2007 CHANGE
Same properties $404 527 $394 117 2 6%Same properties $404,527 $394,117 2.6%
2008 and 2007 acquisitions 14,365 27 nm
2008 and 2007 dispositions 761 2,208 (65.5%)
Greenfield development 21,182 10,509 101.6%
NOI before adjustments 440,835 406,861 8.4%
Lease cancellation fees 1,906 9,774 (80.5%)
Straight-lining of rents 6,978 8,150 (14.4%)
Differential between contractual and market rents 3 876 2 698 43 7%
1818
‘nm’ means not meaningful‘nm’ means not meaningful
Differential between contractual and market rents 3,876 2,698 43.7%
NOI $453,595 $427,483 6.1%
STABLE OCCUPANCYSTABLE OCCUPANCYHistorical Occupancy Rates 1996 to 2008Historical Occupancy Rates 1996 to 2008
96.9%96 1% 95 6% 95 8% 96.3% 96.3%
97.1% 97.7% 97.0% 96.9%
95.0% 95.0% 95.4% 96.1% 95.6% 95.8% 96.3% 96.3%
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
1919
ACQUISITION OF ING PORTFOLIO ACQUISITION OF ING PORTFOLIO • On January 22, 2009, announced acquisition of portfolio of six grocery-anchored retail properties in Greater
Montreal Area from ING Real Estate Canada LPTotal square footage of approx. 454,000 square feet
• On January 22, 2009, announced acquisition of portfolio of six grocery-anchored retail properties in Greater Montreal Area from ING Real Estate Canada LP
Total square footage of approx. 454,000 square feetAverage price per square foot is $148.58, well below replacement cost for assets of this natureAverage age of the portfolio is 14.5 years
Portfolio profile• Total occupancy 99.04%
Average price per square foot is $148.58, well below replacement cost for assets of this natureAverage age of the portfolio is 14.5 years
Portfolio profile• Total occupancy 99.04%Total occupancy 99.04%
82.8% national and regional tenants73.72% Supermarket/Pharma/Banks
• Average remaining lease term on grocery leases is 7.9 yearsProperties
Total occupancy 99.04%82.8% national and regional tenants73.72% Supermarket/Pharma/Banks
• Average remaining lease term on grocery leases is 7.9 yearsPropertiesProperties
Concorde Centre, Laval (IGA/Sobeys, Desjardins, Jean Coutu)La Prairie Centre, La Prairie (IGA/Sobeys, Laurentian Bank, Natrem Pharma)Rene Robert Centre, Ste-Therese (IGA/Sobeys, Pharmacie Catherine)Sicard Centre Ste Therese (IGA/Sobeys Jean Coutu TD Bank)
PropertiesConcorde Centre, Laval (IGA/Sobeys, Desjardins, Jean Coutu)La Prairie Centre, La Prairie (IGA/Sobeys, Laurentian Bank, Natrem Pharma)Rene Robert Centre, Ste-Therese (IGA/Sobeys, Pharmacie Catherine)Sicard Centre Ste Therese (IGA/Sobeys Jean Coutu TD Bank)Sicard Centre, Ste-Therese (IGA/Sobeys, Jean Coutu, TD Bank)St. Jean, St. Jean Sur Richelieu (IGA/Sobeys, National Bank, Uniprix)Ste Julie, Ste Julie (IGA/Sobeys)
• Purchase price $67.5 millionA li d t ti i t d t b t d f th tf li i
Sicard Centre, Ste-Therese (IGA/Sobeys, Jean Coutu, TD Bank)St. Jean, St. Jean Sur Richelieu (IGA/Sobeys, National Bank, Uniprix)Ste Julie, Ste Julie (IGA/Sobeys)
• Purchase price $67.5 millionA li d t ti i t d t b t d f th tf li i• Annualized net operating income expected to be generated from the portfolio is approx. $6.1 million (9.0% cap rate)
• Have entered into an agreement to sell a 50% interest in four of the six properties, to a private investor, concurrent with the closing of the acquisition on or about February 26, 2009N t h i f Ri C ’ i t t i th tf li ill b $47 5 illi
• Annualized net operating income expected to be generated from the portfolio is approx. $6.1 million (9.0% cap rate)
• Have entered into an agreement to sell a 50% interest in four of the six properties, to a private investor, concurrent with the closing of the acquisition on or about February 26, 2009N t h i f Ri C ’ i t t i th tf li ill b $47 5 illi
2020
• Net purchase price of RioCan’s interest in the portfolio will be approx. $47.5 million• Net purchase price of RioCan’s interest in the portfolio will be approx. $47.5 million
STRONG DEVELOPMENT PIPELINESTRONG DEVELOPMENT PIPELINE
• Greenfield developments through in-house capabilities and with partners, such as Trinity and Canada Pension Plan Investment Board (CPPIB)
• Greenfield developments through in-house capabilities and with partners, such as Trinity and Canada Pension Plan Investment Board (CPPIB)
At December 31, 2008• Total greenfield developments comprise 9.6 million square feet, including shadow anchors• RioCan’s owned interest consists of 3.4 million square feet
T t l ti t d j t t i $1 7 billi ith Ri C ’ i t t b i $700 illi
At December 31, 2008• Total greenfield developments comprise 9.6 million square feet, including shadow anchors• RioCan’s owned interest consists of 3.4 million square feet
T t l ti t d j t t i $1 7 billi ith Ri C ’ i t t b i $700 illi• Total estimated project cost is $1.7 billion, with RioCan’s interest being approx. $700 million• Invested $250 million in these projects, with cost-to-complete, before construction financing, for
RioCan’s share being $450 million• In addition, RioCan will fund approx. $230 million under mezzanine lending program to certain
• Total estimated project cost is $1.7 billion, with RioCan’s interest being approx. $700 million• Invested $250 million in these projects, with cost-to-complete, before construction financing, for
RioCan’s share being $450 million• In addition, RioCan will fund approx. $230 million under mezzanine lending program to certain , pp $ g p g
partners, primarily Trinity Developments• Generate unlevered yield between 7% to 11%, at a weighted average of 8.5% to 9.5%
Strategic sales to CPPIB
, pp $ g p gpartners, primarily Trinity Developments
• Generate unlevered yield between 7% to 11%, at a weighted average of 8.5% to 9.5%
Strategic sales to CPPIB• In June 2008, RioCan and Trinity sold a 50% non-managing interest in the Jacksonport
development in Calgary and St. Clair Avenue and Weston Road in Toronto development to CPPIB • In October 2008, CPPIB purchased at 37.5% non-managing ownership interest in two of three
phases in East Hills in Calgary
• In June 2008, RioCan and Trinity sold a 50% non-managing interest in the Jacksonport development in Calgary and St. Clair Avenue and Weston Road in Toronto development to CPPIB
• In October 2008, CPPIB purchased at 37.5% non-managing ownership interest in two of three phases in East Hills in Calgaryp g y
• Significantly reduced development exposure on the three projects of $700 million• The sales to CPPIB enabled RioCan to recoup 100% of its equity in these projects• The sales further strengthened our existing relationship to Canada’s largest pension fund
p g y• Significantly reduced development exposure on the three projects of $700 million• The sales to CPPIB enabled RioCan to recoup 100% of its equity in these projects• The sales further strengthened our existing relationship to Canada’s largest pension fund
2121
CAPITAL STRUCTURECAPITAL STRUCTURECAPITAL STRUCTURECAPITAL STRUCTURE
CONVERTIBLE DEBENTURE ISSUE CONVERTIBLE DEBENTURE ISSUE CO U UCO U U
• Closed $180 million principal amount of Series L senior unsecured • Closed $180 million principal amount of Series L senior unsecured p pdebentures issue on April 3
Debentures carry a coupon rate of 8.33% and will mature on April 3, 2014 • The net proceeds from the offering will be used to:
p pdebentures issue on April 3
Debentures carry a coupon rate of 8.33% and will mature on April 3, 2014 • The net proceeds from the offering will be used to:p g
Repurchase, at par, $4.62 million of its September 21, 2009 5.29% Series D and $50.38 million of its March 24, 2010 4.938% Series J senior unsecured debentures;
p gRepurchase, at par, $4.62 million of its September 21, 2009 5.29% Series D and $50.38 million of its March 24, 2010 4.938% Series J senior unsecured debentures;Provide additional financial flexibility to its substantial liquidity position;Repay indebtedness incurred under its operating credit facilities;Fund development activities and future property acquisitions, and;
Provide additional financial flexibility to its substantial liquidity position;Repay indebtedness incurred under its operating credit facilities;Fund development activities and future property acquisitions, and; General trust purposes.
• The covenant pattern for the Debentures will be identical to that of RioCan’sSeries K debenture and reflect the stability and maturity of RioCan’s balance
General trust purposes.
• The covenant pattern for the Debentures will be identical to that of RioCan’sSeries K debenture and reflect the stability and maturity of RioCan’s balanceSeries K debenture, and reflect the stability and maturity of RioCan s balance sheet and operationsSeries K debenture, and reflect the stability and maturity of RioCan s balance sheet and operations
2323
CONSERVATIVE DEBT PROFILECONSERVATIVE DEBT PROFILE
• Debt-to-Gross Book Value (historical cost) of 54.9% at December 31, 2008• Debt-to-Gross Book Value (historical cost) of 54.9% at December 31, 2008• Total operating lines - $200 million ($150 million available, with another $90
million under negotiations)• 15% of properties unencumbered by debt on a net leasable area basis
• Total operating lines - $200 million ($150 million available, with another $90 million under negotiations)
• 15% of properties unencumbered by debt on a net leasable area basis15% of properties unencumbered by debt on a net leasable area basis• At December 31, 2008, interest coverage was in excess of 2.6x, well above
the current 1.65x maintenance test• In October 2008 repurchased $25 7 million of Series D debentures
15% of properties unencumbered by debt on a net leasable area basis• At December 31, 2008, interest coverage was in excess of 2.6x, well above
the current 1.65x maintenance test• In October 2008 repurchased $25 7 million of Series D debentures• In October 2008, repurchased $25.7 million of Series D debentures
maturing in September 2009 and $5 million Series J debentures maturing in March 2010
• Repaid $110 million Series E debentures at their maturity in January 2008
• In October 2008, repurchased $25.7 million of Series D debentures maturing in September 2009 and $5 million Series J debentures maturing in March 2010
• Repaid $110 million Series E debentures at their maturity in January 2008• Repaid $110 million Series E debentures at their maturity in January 2008• At December 31, 2008, S&P provided RioCan with an entity credit rating of
BBB and a credit rating of BBB- relating to its senior unsecured debentures payable; DBRS provided a credit rating of BBB (high) relating to RioCan’s
• Repaid $110 million Series E debentures at their maturity in January 2008• At December 31, 2008, S&P provided RioCan with an entity credit rating of
BBB and a credit rating of BBB- relating to its senior unsecured debentures payable; DBRS provided a credit rating of BBB (high) relating to RioCan’spayable; DBRS provided a credit rating of BBB (high) relating to RioCan sdebenturespayable; DBRS provided a credit rating of BBB (high) relating to RioCan sdebentures
2424
CAPITAL STRUCTURECAPITAL STRUCTURE
Book Value = $5.1 billion1Book Value = $5.1 billion1 Enterprise Value = $6.1 billion1,2Enterprise Value = $6.1 billion1,2
49.1%41.1%MORTGAGES
$2.5 billion
16.6%
13.9%DEBENTURES$849 million
34.3%45.0%
$
UNITS OUTSTANDING 223 million
Mortgages Debentures Equity
2525
1) Proforma December 31, 20082) Based on a unit price of $12.37
LIQUIDITY & DEBT MATURITY PROFILELIQUIDITY & DEBT MATURITY PROFILE
In millions
$1,400Unsecured Debentures Mortgages
$1,000
$1,200g g
$1,099$600
$800
$84 $95$200 $220 $150 $100
$237 $262 $76$223 $380
$229$200
$400
$84 $95 $ $100$0
2009 2010 2011 2012 2013 2014 2015+(1)
2626
(1) Includes $102.3M in Feb. 2009
MODEST LEVERAGE, STRONG INTEREST COVERAGEMODEST LEVERAGE, STRONG INTEREST COVERAGE,,
• RioCan has consistently adhered to a conservative debt policy even through periods of considerable growth
• RioCan has consistently adhered to a conservative debt policy even through periods of considerable growth
Leverage of 54.9% (@ YE2008) based on historic cost • 60% max permitted under covenant
Interest coverage well in excess of the 1.65x maintenance covenant
Leverage of 54.9% (@ YE2008) based on historic cost • 60% max permitted under covenant
Interest coverage well in excess of the 1.65x maintenance covenant
2.9x 2.9x2 7x 2.8x 2.9x
2 7x
Historical Leverage (@ Book) And EBITDA Interest Coverage
53.1% 53.8% 53.9%
56.6% 56.3%54.9%
2.6x 2.6x 2.7x 2.7x 2.6x
Leverage Interest Coverage
47.3% 48.2%
51.9%53.1%
2727
2000 2001 2002 2003 2004 2005 2006 2007 2008
LEVERAGE AT HISTORIC COST LEVERAGE AT HISTORIC COST & STOCK MARKET VALUE& STOCK MARKET VALUEAs at December 31, 2008
54.9%51.8%
Historic Cost Market
2828
ADDITIONAL BORROWINGSADDITIONAL BORROWINGS
• At outset of 2008, RioCan had $220 million of mortgate principal t iti t i ht d t t l i t t t f 5 98%
• At outset of 2008, RioCan had $220 million of mortgate principal t iti t i ht d t t l i t t t f 5 98%maturities at a weighted average contractual interest rate of 5.98%
• In 2008, RioCan had new borrowings of $427.6 million, resulting in additional proceeds of $147.8 million after considering the effect of the $59 8 million in sched led amorti ation
maturities at a weighted average contractual interest rate of 5.98%• In 2008, RioCan had new borrowings of $427.6 million, resulting in
additional proceeds of $147.8 million after considering the effect of the $59 8 million in sched led amorti ation
3 months ended December 31, 2008 12 months ended December 31, 2008
$59.8 million in scheduled amortization$59.8 million in scheduled amortization
(thousands of dollars, except other data)
Weighted Average
Contractual Interest Rate
Average Term to Maturity
(years)
Weighted Average
Contractual Interest Rate
Average Term to Maturity
(years)
New borrowings:New borrowings:Fixed rate term mortgage $106,900 5.52% 5.7 $427,645 5.67% 6.7
Construction 2,244 3.58% 0.8 21,823 4.73% 0.6
$109,144 $449,468
A d/ t d thAssumed/granted on the acquisition of properties $- - - $83,634 4.80% 4.8
2929
DEBT MATURITIES BY LENDERDEBT MATURITIES BY LENDER
ContractualPrincipal Balance by Type of Lender
Lif(thousands of dollars)
Life Insurance
IndustryMortgage
Conduit BanksPension
Funds OtherUnsecured
Debentures Total
Year Ending Dec. 31: 2009 $102,268 $2,299 $98,678 $27,566 $7,068 $84,300 $322,179
2010 49,078 164,478 26,659 14,639 8,465 95,000 358,319
2011 9,418 59,501 1,550 5,531 - 200,000 276,000
2012 65,656 119,442 38,299 - - 220,000 443,397
2013 127,404 122,587 121,040 - 10,041 150,000 531,072
Thereafter 591 063 307 094 279 358 33 511 19 000 100 000 1 330 026Thereafter 591,063 307,094 279,358 33,511 19,000 100,000 1,330,026
$944,887 $775,401 $565,584 $81,247 $44,574 $849,300 $3,260,993
3030
ASSETS AVAILABLE TO FINANCEASSETS AVAILABLE TO FINANCE
PRINCIPAL BALANCE OF DEBT MONITORING
2008(in thousands) NUMBER OF
PROPERTIESNBV of IPP
At December 31, 20082008
ANNUALIZED NOI (1)
2009 2010
Collateral – Income Properties
Encumbered Assets with Debt Maturing in 2009 20 $428,911 $43,399 $208,694 $ -
Encumbered Assets with Debt Maturing in 2010 30 526,545 54,428 - 246,701Maturing in 2010
Unencumbered Assets at December 31,2008 (2) 51 423,342 35,329 - -
Construction Financing on 3 13 808 471 14 787Construction Financing on Properties Under Development 3 13,808 471 14,787 -
VTB on Properties Under Development 2 - - 7,068 847
Unsecured Debt Maturity - - - 84,300 95,000
TOTAL 106 $1,392,606 $133,627 $314,849 $342,548
3131
(1) Excluding impact of straight-line rents and the differential between contractual and market rents(2) Excludes assets pledged as security for the $102 million mortgage financing arranged with a chartered bank in 2009(3) Projects include components that are income producing at December 31, 2008. NBV shown represents amounts in IPP only.
FISCAL CONSERVATISMFISCAL CONSERVATISM
% Payout of FFO % Payout of FFO excl DRIP
97.4%100%
105%
y y
93.0%
88.9%87.1% 86.7%
88.2% 88.9% 89.6%87.9%
92.1%
90%
95%
76.3%
72 0% 72 5% 72 4%
80.0%
73.0%75%
80%
85%
72.0%
66.7%
72.5% 72.4%70.5%
65.9%
70.2%
65%
70%
75%
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
• From 1999 to present, RioCan has decreased its payout ratio• From 1999 to present, RioCan has decreased its payout ratio
3232
Note: 2005 FFO adjusted to exclude impact of costs of early extinguishment of debentures
SIFT LEGISLATIONSIFT LEGISLATION
• In order to qualify for the REIT Exemption commencing in 2011, RioCan is developing a REIT exemption “Qualification Plan”
• The Qualification Plan will identify permitted assets and activities that would not
• In order to qualify for the REIT Exemption commencing in 2011, RioCan is developing a REIT exemption “Qualification Plan”
• The Qualification Plan will identify permitted assets and activities that would not• The Qualification Plan will identify permitted assets and activities that would not qualify under the REIT Exemption and potential restructuring solutions
• Under the Qualification Plan, RioCan will continue, directly or indirectly through subsidiary entities to hold such assets and engage in such activities that are
• The Qualification Plan will identify permitted assets and activities that would not qualify under the REIT Exemption and potential restructuring solutions
• Under the Qualification Plan, RioCan will continue, directly or indirectly through subsidiary entities to hold such assets and engage in such activities that aresubsidiary entities, to hold such assets and engage in such activities that are permitted to be held and/or performed by RioCan under the REIT Exemption.
• As part of the Qualification Plan, RioCan is currently considering the establishment of a new entity (the "New Entity") which will, directly or indirectly through subsidiary
subsidiary entities, to hold such assets and engage in such activities that are permitted to be held and/or performed by RioCan under the REIT Exemption.
• As part of the Qualification Plan, RioCan is currently considering the establishment of a new entity (the "New Entity") which will, directly or indirectly through subsidiaryof a new entity (the New Entity ) which will, directly or indirectly through subsidiary entities, hold such assets and engage in such activities that RioCan is not permitted to engage in under the REIT Exemption (i.e., non-compliant assets and activities)
• Under the current version of the Qualification Plan that RioCan is considering, it is
of a new entity (the New Entity ) which will, directly or indirectly through subsidiary entities, hold such assets and engage in such activities that RioCan is not permitted to engage in under the REIT Exemption (i.e., non-compliant assets and activities)
• Under the current version of the Qualification Plan that RioCan is considering, it is gcontemplated that RioCan’s unitholders will hold securities of RioCan and the New Entity in the form of stapled units
gcontemplated that RioCan’s unitholders will hold securities of RioCan and the New Entity in the form of stapled units
33333333
FUTURE GROWTH DRIVERSFUTURE GROWTH DRIVERS
Organic Organic Land use Land use Greenfield Greenfield Fund Fund Organic GrowthOrganic Growth
Land use Intensification
Land use Intensification
Greenfield Development
Greenfield Development AcquisitionsAcquisitions
Fund Activities
Fund Activities
3434
ORGANIC GROWTH – LEASE EXPIRIESORGANIC GROWTH – LEASE EXPIRIES
LEASE EXPIRIES
As at December 31, 2008
(in thousands, except psf and percentage amounts) Portfolio
NLA 2009 2010 2011 2012 2013
Square Feet:New Format Retail 14,903 597 1,005 1,442 1,086 1,299New Format Retail 14,903 597 1,005 1,442 1,086 1,299Grocery Anchored Centre 6,879 685 910 987 1,057 493Enclosed Shopping Centre 6,410 539 816 788 458 596Non-Grocery Anchored Centre 1,740 110 128 145 126 184Urban Retail 1,292 80 73 77 136 154,Office 1,583 192 290 337 63 169Total 32,807 2,203 3,222 3,776 2,926 2,895Square feet expiring/portfolio NLA 6.7% 9.8% 11.5% 8.9% 8.8%Average rent psf (1):New Format Retail $16.01 $18.64 $18.38 $16.53 $17.44 $17.20Grocery Anchored Centre 13.95 15.19 13.71 14.23 13.82 17.00Enclosed Shopping Centre 11.80 14.74 9.96 10.65 14.04 15.21Non-Grocery Anchored Centre 12.54 12.60 14.37 13.23 13.00 13.96Urban Retail 20.17 25.16 29.23 21.17 29.67 15.53Office 11.32 10.60 8.93 12.23 13.05 11.50Total average net rent psf $14.61 $15.85 $14.17 $14.29 $15.88 $16.13
3535
(1) Net rent is primarily contractual basic rent pursuant to tenant leases.
2008 PORTFOLIO LEASING ACTIVITY2008 PORTFOLIO LEASING ACTIVITY
Year ended December 31, 2008 (i th d t f t ) T t l New Format Grocery
A h dEnclosed Sh i
Non-Grocery A h d U b R t il Offi(in thousands, except psf amounts) Total New Format
Retail Anchored Centre
Shopping Centre
Anchored Centre
Urban Retail Office
Renewals at market rental ratesSquare feet renewed 1,218 226 364 300 111 118 99Average net rent psf $19 91 $25 88 $18 38 $19 97 $16 44 $19 33 $16 32Average net rent psf $19.91 $25.88 $18.38 $19.97 $16.44 $19.33 $16.32Increase in average net rent psf 2.84 5.13 2.06 2.38 1.26 3.04 3.40
Fixed rental rate options in favour of our tenantsSquare feet renewed 1,696 616 290 610 54 126 -Average net rent psf $11.30 $16.37 $10.51 $6.76 $13.94 $9.23 $ -Increase in average net rent psf $ 0.64 $ 1.15 $ 0.38 $0.22 $ 0.98 $0.57 $ -
Total:Square feet expiring 2,914 842 654 910 165 244 99Average net rent psf $14.90 $18.92 $14.88 $11.11 $15.63 $14.11 $16.32Increase in average net rent psf 1.56 2.22 1.31 0.93 1.17 1.77 3.40
36363636
ORGANIC GROWTH – LEASING ACTIVITYORGANIC GROWTH – LEASING ACTIVITYFor the Year Ended December 31, 2008
(in thousands, except psf amounts) Total New Format Retail
Grocery Anchored
Centre
Enclosed Shopping
Centre
Non-Grocery Anchored
CentreUrban Retail Office
2009 expiries with market rate renewal optionspSquare feet expiring 1,484 370 460 410 86 65 93Average net rent psf $17.68 $21.38 $16.48 $16.47 $13.99 $26.32 $11.65
2009 expiries with fixed rental rate options in favour of our tenantsSquare feet expiring 719 227 225 129 24 15 99Average in-place net rent psf $12.05 $14.18 $12.54 $9.20 $7.50 $20.16 $9.61Average renewal net rent psf $12.79 $15.38 $12.67 $10.26 $8.00 $25.00 $9.74I i f $0 74 $1 20 $0 13 $1 06 $0 50 $4 84 $0 13Increase in average net rent psf $0.74 $1.20 $0.13 $1.06 $0.50 $4.84 $0.13
Total:Square feet expiring 2,203 597 685 539 110 80 192A t t f $15 85 $18 94 $15 19 $14 74 $12 60 $25 16 $10 60Average net rent psf $15.85 $18.94 $15.19 $14.74 $12.60 $25.16 $10.60
37373737
YONGE EGLINTON CENTREYONGE EGLINTON CENTRE
• One of RioCan’s largest acquisitions at $223 million• One of RioCan’s largest acquisitions at $223 million
Toronto, OntarioToronto, Ontario
• One of RioCan s largest acquisitions at $223 million (acquired in January 2007)
750,126 sq. ft. of office area and 264,479 sq. ft. of retail area• RioCan has launched a thorough revitalization and
• One of RioCan s largest acquisitions at $223 million (acquired in January 2007)
750,126 sq. ft. of office area and 264,479 sq. ft. of retail area• RioCan has launched a thorough revitalization andRioCan has launched a thorough revitalization and
expansion plan that will capitalize on the area’s residential intensification
Improvements to parking increased revenues by $500,000
RioCan has launched a thorough revitalization and expansion plan that will capitalize on the area’s residential intensification
Improvements to parking increased revenues by $500,00046,000 sq. ft. of new retail, and a connection to the office towers and ingress/egress to the food court and subwayA combined 12-storey, 210,000 sq. ft. expansion of the office towers
46,000 sq. ft. of new retail, and a connection to the office towers and ingress/egress to the food court and subwayA combined 12-storey, 210,000 sq. ft. expansion of the office towers
• RioCan’s leasing and capital improvement efforts have resulted in significant increases in NOI and occupancy
NOI of $13.3 million at purchase, forecast to increase to $18 8 million for the year ended December 31 2009
• RioCan’s leasing and capital improvement efforts have resulted in significant increases in NOI and occupancy
NOI of $13.3 million at purchase, forecast to increase to $18 8 million for the year ended December 31 2009$18.8 million for the year ended December 31, 2009(ROI increasing from 5.85% to 7.71%)Combined office and retail occupancy rate has increased from 87.8% at purchase, to forecasted 97.8% by year-end of 2008
$18.8 million for the year ended December 31, 2009(ROI increasing from 5.85% to 7.71%)Combined office and retail occupancy rate has increased from 87.8% at purchase, to forecasted 97.8% by year-end of 2008
3838
year-end of 2008year-end of 2008
CREATING NEW CASH FLOW SOURCES CREATING NEW CASH FLOW SOURCES RioCan Yonge Eglinton Centre, Toronto, ONRioCan Yonge Eglinton Centre, Toronto, ON
3939
CREATING NEW CASH FLOW SOURCES CREATING NEW CASH FLOW SOURCES RioCan Yonge Eglinton Centre – Proposed Retail AdditionRioCan Yonge Eglinton Centre – Proposed Retail Addition
4040
CREATING NEW CASH FLOW SOURCES CREATING NEW CASH FLOW SOURCES RioCan Yonge Eglinton Centre – Proposed Retail AdditionRioCan Yonge Eglinton Centre – Proposed Retail Addition
4141
CREATING NEW CASH FLOW SOURCESCREATING NEW CASH FLOW SOURCESRioCan Yonge Eglinton Centre – Proposed Vertical AdditionRioCan Yonge Eglinton Centre – Proposed Vertical Addition
Potential to add 210,000 square feet of office spacePotential to add 210,000 square feet of office space
4242
LAND USE INTENSIFICATIONLAND USE INTENSIFICATION
• Capitalize on trend in Canada’s six high growth markets towards “densifying” existing urban locations driven by:
• Capitalize on trend in Canada’s six high growth markets towards “densifying” existing urban locations driven by:densifying existing urban locations, driven by:
Prohibitive costs of expanding infrastructure beyond urban boundaries
Environmental concerns
densifying existing urban locations, driven by:
Prohibitive costs of expanding infrastructure beyond urban boundaries
Environmental concerns
Maximizing use of mass transit
• Generate high yields as land is already owned
Maximizing use of mass transit
• Generate high yields as land is already owned
4343
URBAN INTENSIFICATIONURBAN INTENSIFICATION1717 Avenue Road, Toronto, ON1717 Avenue Road, Toronto, ON
• Rezoning urban properties to accommodate mixed use projects became RioCan REIT’s focus in the last several years
• Rezoning urban properties to accommodate mixed use projects became RioCan REIT’s focus in the last several yearsfocus in the last several years
Currently almost 100 acres of urban property in either active rezoning process or in the exploration of rezoning potential stage
focus in the last several years
Currently almost 100 acres of urban property in either active rezoning process or in the exploration of rezoning potential stage
• 1717 Avenue Road, TorontoAssembled a city block over four year period located in one of the busiest nodes in Toronto on Avenue Road, between Fairlawn Avenue and St Germain Avenue
• 1717 Avenue Road, TorontoAssembled a city block over four year period located in one of the busiest nodes in Toronto on Avenue Road, between Fairlawn Avenue and St Germain AvenueFairlawn Avenue and St. Germain AvenueThe block is made up of four, one storey, properties, the largest being 25,000 sq. ft. strip centre anchored by an LCBO and BlockbusterIdeal property for redevelopment into a mixed-use facility,
Fairlawn Avenue and St. Germain AvenueThe block is made up of four, one storey, properties, the largest being 25,000 sq. ft. strip centre anchored by an LCBO and BlockbusterIdeal property for redevelopment into a mixed-use facility, in keeping with the trend of urban intensificationDevelopment to continue with new retail footprint for the 75,000 sq ft space - currently in discussions with several potential replacement tenantsResidential air rights sold to Tribute Communities who will
in keeping with the trend of urban intensificationDevelopment to continue with new retail footprint for the 75,000 sq ft space - currently in discussions with several potential replacement tenantsResidential air rights sold to Tribute Communities who willResidential air rights sold to Tribute Communities, who will develop this mixed-use propertyRioCan REIT retained ownership of the retail portion and shares in a portion of the profits created on the sale of the condominiums
Residential air rights sold to Tribute Communities, who will develop this mixed-use propertyRioCan REIT retained ownership of the retail portion and shares in a portion of the profits created on the sale of the condominiums
4444
The residential component is 81% soldThe residential component is 81% sold
LAND USE INTENSIFICATION LAND USE INTENSIFICATION 1717 Avenue Road, Toronto, ON1717 Avenue Road, Toronto, ON
4545
URBAN INTENSIFICATIONURBAN INTENSIFICATIONQueen & Portland, Toronto, ONQueen & Portland, Toronto, ON
• One acre parking lot acquired in January 2006• One acre parking lot acquired in January 2006One acre parking lot acquired in January 2006• Southwest corner of Queen and Portland Streets,
occupying the entire length of the block• Ideal property for redevelopment into a mixed-use
facilit in keeping ith the trend of rban intensification
One acre parking lot acquired in January 2006• Southwest corner of Queen and Portland Streets,
occupying the entire length of the block• Ideal property for redevelopment into a mixed-use
facilit in keeping ith the trend of rban intensificationfacility, in keeping with the trend of urban intensification• January 2009, announced $11.5 million lease
termination payment from Home Depot in connection with proposed 75,000 sq ft store on which construction has not yet begun
facility, in keeping with the trend of urban intensification• January 2009, announced $11.5 million lease
termination payment from Home Depot in connection with proposed 75,000 sq ft store on which construction has not yet begunhas not yet begun
• Development to continue with new retail footprint for the 75,000 sq ft space - currently in discussions with several potential replacement tenants
has not yet begun• Development to continue with new retail footprint for the
75,000 sq ft space - currently in discussions with several potential replacement tenants
Queen St. W
Po
• Total retail space is 91,000 sq ft over three levels • Five-storey residential condominium, above the retail,
unaffected by change – 61% sold• Residential air rights sold to Tribute Communities, who
• Total retail space is 91,000 sq ft over three levels • Five-storey residential condominium, above the retail,
unaffected by change – 61% sold• Residential air rights sold to Tribute Communities, who
rtland St.
Residential air rights sold to Tribute Communities, who will develop this mixed-use property
• RioCan REIT retained ownership of the retail portion and shares in a portion of the profits created on the sale of the condominiums
Residential air rights sold to Tribute Communities, who will develop this mixed-use property
• RioCan REIT retained ownership of the retail portion and shares in a portion of the profits created on the sale of the condominiums
Richmond St. W
4646
LAND USE INTENSIFICATION LAND USE INTENSIFICATION Queen and Portland, Toronto, ONQueen and Portland, Toronto, ON
4747
TILLICUM CENTRETILLICUM CENTREVictoria, British ColumbiaVictoria, British Columbia
• Acquired in July 2002 expansion initiated in 2004• Acquired in July 2002 expansion initiated in 2004• Acquired in July 2002, expansion initiated in 2004 62,000 sq. ft. addition anchored by introduction of two marquee tenantsFabricland relocated to a larger store and TD Bank also took occupancy during phase 2
• Acquired in July 2002, expansion initiated in 2004 62,000 sq. ft. addition anchored by introduction of two marquee tenantsFabricland relocated to a larger store and TD Bank also took occupancy during phase 2also took occupancy during phase 2
• Despite various construction challenges owing to site’s geography, RioCan’s development team was able to deliver on schedule and within budget
also took occupancy during phase 2
• Despite various construction challenges owing to site’s geography, RioCan’s development team was able to deliver on schedule and within budget
• Mixed-use expansion scheduled for commencement in 2009, and will feature 300,000 sq. ft.
• In addition to improving tenant quality and
• Mixed-use expansion scheduled for commencement in 2009, and will feature 300,000 sq. ft.
• In addition to improving tenant quality andIn addition to improving tenant quality and aesthetics, the return on investment (“ROI”) since acquisition has increased by more than 100 bps
NOI increased from $5.3 million at purchase to a budgeted annualized NOI of $7 2 million in 2008
In addition to improving tenant quality and aesthetics, the return on investment (“ROI”) since acquisition has increased by more than 100 bps
NOI increased from $5.3 million at purchase to a budgeted annualized NOI of $7 2 million in 2008budgeted annualized NOI of $7.2 million in 2008 (36% increase) Occupancy increased from 96.1% at purchase to 99.1%
budgeted annualized NOI of $7.2 million in 2008 (36% increase) Occupancy increased from 96.1% at purchase to 99.1%
4848
GREENFIELD DEVELOPMENTGREENFIELD DEVELOPMENT
• Greenfield developments through in-house capabilities and with partners At December 31 2008:
• Greenfield developments through in-house capabilities and with partners At December 31 2008:• At December 31, 2008:
Total greenfield developments = 9.6 million square feet, including shadow anchorsRioCan’s owned interest = 3.4 million square feetTotal estimated project cost = $1 66 billion
• At December 31, 2008:Total greenfield developments = 9.6 million square feet, including shadow anchorsRioCan’s owned interest = 3.4 million square feetTotal estimated project cost = $1 66 billionTotal estimated project cost = $1.66 billionTotal acquisition and development expenditures incurred to date = $504.6 millionTotal estimated remaining construction expenditures to complete = RioCan $449.5 million / Partners’ $708.8 million
Total estimated project cost = $1.66 billionTotal acquisition and development expenditures incurred to date = $504.6 millionTotal estimated remaining construction expenditures to complete = RioCan $449.5 million / Partners’ $708.8 millionGenerate unlevered yield between 7% to 11%, at a weighted average of 8.5% to 9.5%Generate unlevered yield between 7% to 11%, at a weighted average of 8.5% to 9.5%
4949
GREENFIELD DEVELOPMENT GREENFIELD DEVELOPMENT RioCan Centre Burloak, Oakville, ON – Pre-developmentRioCan Centre Burloak, Oakville, ON – Pre-development
5050
GREENFIELD DEVELOPMENT GREENFIELD DEVELOPMENT RioCan Centre Burloak, Oakville, ON – Post-developmentRioCan Centre Burloak, Oakville, ON – Post-development
5151
GREENFIELD DEVELOPMENT GREENFIELD DEVELOPMENT RioCan Elgin Mills Crossing, Richmond Hill, ONRioCan Elgin Mills Crossing, Richmond Hill, ON
5252
GREENFIELD DEVELOPMENT GREENFIELD DEVELOPMENT East Hills, Calgary, ABEast Hills, Calgary, AB
5353
GREENFIELD DEVELOPMENT GREENFIELD DEVELOPMENT East Hills, Calgary, ABEast Hills, Calgary, AB
5454
ACQUISITION ACTIVITYACQUISITION ACTIVITY
P t N & L ti Quarter NLA (sq. ft.) at Ri ’
RioCan's O hi C R t Purchase Price
As at December 31, 2008
Property Name & Location Quarter Acquired Riocan’s
InterestOwnership
InterestCap Rate Purchase Price
($M)
1650-1660 Carling Avenue, Ottawa Q3 142,188 100. 0% 6.4% $40.0
Cara Portfolio of 12 properties located 100 0%Cara Portfolio of 12 properties located in central and eastern Canada Q3 66,958 100. 0% 7.5% $16.3
Total Q3 209,146 $56.3H&R REIT 10 property portfolio located in central & eastern Canada Q2 543,645 50.0% 7.7% $78.1located in central & eastern CanadaRioCan Elgin Mills Crossing, Richmond Hill, ON (additional 12.5%) Q2 31,016 62.5% 6.3% $9.4
Total Q2 574,661 $87.5
Shoppers on Topsail, St. Johns, NF Q1 29,689 100. 0% 7.6% $5.6
Quartier DIX30, Autoroute 10 & 30, Brossard, QC Q1 43,326 50.0% 6.8% $153.0
Total Q1 73,015 $158.6
Total Acquisitions To-Date 856,822 $302.4
I 2008 Ri C h l t d t t l i iti i th t f $162 8 illiI 2008 Ri C h l t d t t l i iti i th t f $162 8 illi
5555
• In 2008, RioCan has completed total acquisitions in the amount of $162.8 million, comprising approximately 857,000 additional square feet
• In 2008, RioCan has completed total acquisitions in the amount of $162.8 million, comprising approximately 857,000 additional square feet
RIOCAN’S PROVEN TRACK RECORD RIOCAN’S PROVEN TRACK RECORD STRONG PARTNERSHIPSSTRONG PARTNERSHIPS
PROVEN TRACK RECORD – RRVLPPROVEN TRACK RECORD – RRVLP
• RRVLP formed in 2003 with RioCan REIT TIAA CREF and OMERS together• RRVLP formed in 2003 with RioCan REIT TIAA CREF and OMERS together
RioCan Retail Value LP (“RRVLP”)RioCan Retail Value LP (“RRVLP”)
• RRVLP formed in 2003 with RioCan REIT, TIAA-CREF and OMERS together committing $200 million of equity
TIAA-CREF is one of the largest privately owned investment managers in the U.S. with over $400 billion of assets under management which includes over $70 billion of real estate assets
• RRVLP formed in 2003 with RioCan REIT, TIAA-CREF and OMERS together committing $200 million of equity
TIAA-CREF is one of the largest privately owned investment managers in the U.S. with over $400 billion of assets under management which includes over $70 billion of real estate assetsassetsOMERS is one of Canada’s leading pension funds with over $50 billion in net investment assets
• RRVLP focuses on the investment in retail assets with the potential for significant
assetsOMERS is one of Canada’s leading pension funds with over $50 billion in net investment assets
• RRVLP focuses on the investment in retail assets with the potential for significant p gvalue added, redevelopment or repositioning opportunities
• Invested in 12 properties comprising 3.4 million sq ft over a period of less than 24 months and to date has sold ten properties generating a return of approximately 23% after fees
p gvalue added, redevelopment or repositioning opportunities
• Invested in 12 properties comprising 3.4 million sq ft over a period of less than 24 months and to date has sold ten properties generating a return of approximately 23% after fees23% after fees
• A subsidiary of RioCan REIT acts as a General Partner and provided asset management, property management, leasing, financing and development services to the fund
23% after fees• A subsidiary of RioCan REIT acts as a General Partner and provided asset
management, property management, leasing, financing and development services to the fund
• RioCan REIT’s performance and the success of RRVLP led to further working relationship between RioCan REIT and a leading investor in this fund
• RioCan REIT’s performance and the success of RRVLP led to further working relationship between RioCan REIT and a leading investor in this fund
5757
PROVEN TRACK RECORDPROVEN TRACK RECORD
Partner Type of Partner
Total Property GLA (sf)
Partner GLA (sf)
Strong PartnershipsStrong Partnerships
Kimco Public 9,242,391 4,566,534
CMHC Private 370,454 185,227
CPPIB Institutional 1,167,470 631,188
RRVLP (TIAA CREF OMERS) P bli / I tit ti l 590 713 502 106RRVLP (TIAA-CREF, OMERS) Public / Institutional 590,713 502,106
Sun Life Institutional 443,263 310,984
Dale-Vest/Marketvest Private 66,720 40,032
Devimco – Quebec Hydro Private 1 117 346 558 673Devimco Quebec Hydro Private 1,117,346 558,673
Effort Properties Private 147,234 73,617
Bayfield Private 391,413 273,989
Trinity Private 3,467,889 1,207,640
The Wynn Group Private 98,580 49,290
First Gulf Private 386,974 193,487
Frum Development Group Private 276,330 138,165
Total Public 18,113,714 8,990,663
• In addition to RioKim JV and CPPIB strategic alliance, RioCan REIT maintains numerous other partnerships where partners rely on RioCan’s expertise in leasing,
• In addition to RioKim JV and CPPIB strategic alliance, RioCan REIT maintains numerous other partnerships where partners rely on RioCan’s expertise in leasing,
58585858
property management and developmentproperty management and development
PROVEN TRACK RECORDPROVEN TRACK RECORDRioKim Joint VentureRioKim Joint Venture
Brentwood VillageBrentwood VillageBrentwood VillageBrentwood Village• RioCan REIT and Kimco Realty Corporation,
a U.S. REIT listed on the NYSE which also focuses on the ownership of shopping centres,
• RioCan REIT and Kimco Realty Corporation, a U.S. REIT listed on the NYSE which also focuses on the ownership of shopping centres, each have a 50% interest in RioKim joint venture
• Invested over $1.3 billion in 45 properties since 2001 comprising over 9 2 million sq ft
each have a 50% interest in RioKim joint venture
• Invested over $1.3 billion in 45 properties since 2001 comprising over 9 2 million sq ftsince 2001 comprising over 9.2 million sq. ft. of GLA
• In June 2008, created a second joint venture partnership with Kimco (RioKim II) with the
i i i f 10 i f li i
since 2001 comprising over 9.2 million sq. ft. of GLA
• In June 2008, created a second joint venture partnership with Kimco (RioKim II) with the
i i i f 10 i f li i
Tillicum CentreTillicum Centre
acquisition of a 10 properties portfolio in central and eastern Canada
• RioCan provides asset and property management development and leasing
acquisition of a 10 properties portfolio in central and eastern Canada
• RioCan provides asset and property management development and leasingmanagement, development and leasing services to RioKimmanagement, development and leasing services to RioKim
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PROVEN TRACK RECORDPROVEN TRACK RECORDCPPIB Strategic AllianceCPPIB Strategic Alliance
Ri C C t B l k B fRi C C t B l k B fRioCan Centre Burloak - BeforeRioCan Centre Burloak - Before
• In October 2004, RioCan REIT and CPPIB announced an agreement to acquire premier
• In October 2004, RioCan REIT and CPPIB announced an agreement to acquire premier a ou ced a ag ee e o acqu e p e eregional power centres in Canada on a 50/50 basis as a core, long-term holding strategy
• Today, RioCan and CPPIB are partners in over 1 1 million sq ft of completed regional
a ou ced a ag ee e o acqu e p e eregional power centres in Canada on a 50/50 basis as a core, long-term holding strategy
• Today, RioCan and CPPIB are partners in over 1 1 million sq ft of completed regionalover 1.1 million sq. ft. of completed regional power centres and approximately 3.0 million sq. ft. of planned development projects
• RioCan provides property and asset
over 1.1 million sq. ft. of completed regional power centres and approximately 3.0 million sq. ft. of planned development projects
• RioCan provides property and asset RioCan Centre Burloak - AfterRioCan Centre Burloak - After
p p p ymanagement, leasing, development and construction management services for the co-ownership
p p p ymanagement, leasing, development and construction management services for the co-ownership
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SUMMARYSUMMARY
• Canada’s largest REIT
• Seasoned management team
• Canada’s largest REIT
• Seasoned management team
• Excellent portfolio, solid tenants and diversified
• Focus on urban markets
• Excellent portfolio, solid tenants and diversified
• Focus on urban marketsFocus on urban markets
• Over 80% national tenants
C ti d bt fil d t it l
Focus on urban markets
• Over 80% national tenants
C ti d bt fil d t it l• Conservative debt profile and access to capital
• Strong institutional relationships
• Conservative debt profile and access to capital
• Strong institutional relationships
• Solid development pipeline• Solid development pipeline
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APPENDIXAPPENDIXAPPENDIXAPPENDIX
EXPERIENCED MANAGEMENT TEAMEXPERIENCED MANAGEMENT TEAM
• Extensive experience in Canadian real estate marketMulti-disciplinary team with experience across a wide spectrum of real estate classes
• Extensive experience in Canadian real estate marketMulti-disciplinary team with experience across a wide spectrum of real estate classes
EDWARD SONSHINE, Q.C. – President & Chief Executive Officer, RioCan REIT• CEO of RioCan REIT since late 1993 and has overseen its growth from an asset base of under $100 million to its
current enterprise value which is in excess of $6 billion P i l ti d l f 15 d i hi h h d d hi Q ’ C l i 1983
EDWARD SONSHINE, Q.C. – President & Chief Executive Officer, RioCan REIT• CEO of RioCan REIT since late 1993 and has overseen its growth from an asset base of under $100 million to its
current enterprise value which is in excess of $6 billion P i l ti d l f 15 d i hi h h d d hi Q ’ C l i 1983• Previously practiced law for 15 years, during which he was awarded his Queen’s Counsel in 1983
• Member of the board of directors of Royal Bank of Canada, Chair of Chesswood Income Fund and Chair of Mount Sinai Hospital Foundation
FREDERIC WAKS – Senior Vice President & Chief Operating Officer, RioCan REIT
• Previously practiced law for 15 years, during which he was awarded his Queen’s Counsel in 1983• Member of the board of directors of Royal Bank of Canada, Chair of Chesswood Income Fund and Chair of Mount
Sinai Hospital Foundation
FREDERIC WAKS – Senior Vice President & Chief Operating Officer, RioCan REIT• COO of RioCan REIT since 1995• Began real estate career in 1981 with Royal LePage, where he earned the honourable designation of Rookie of the
Year in the Commercial Division and President’s Round Table • In 1984, he joined First Plazas as Vice President of Leasing/Marketing. Moved to Dominion Trust in 1988, where he
t k th iti f S i Vi P id t F 1993 t 1995 t d Vi P id t R t il L i f
• COO of RioCan REIT since 1995• Began real estate career in 1981 with Royal LePage, where he earned the honourable designation of Rookie of the
Year in the Commercial Division and President’s Round Table • In 1984, he joined First Plazas as Vice President of Leasing/Marketing. Moved to Dominion Trust in 1988, where he
t k th iti f S i Vi P id t F 1993 t 1995 t d Vi P id t R t il L i ftook on the position of Senior Vice President. From 1993 to 1995, acted as Vice-President, Retail Leasing for Confederation Life.
RAGS DAVLOOR, CA – Senior Vice President & Chief Financial Officer, RioCan REIT• CFO of RioCan REIT since 2008
took on the position of Senior Vice President. From 1993 to 1995, acted as Vice-President, Retail Leasing for Confederation Life.
RAGS DAVLOOR, CA – Senior Vice President & Chief Financial Officer, RioCan REIT• CFO of RioCan REIT since 2008• Over 25 years of real estate, management, finance, accounting and tax experience• Began his career with Arthur Anderson & Co where he spent 8 years in audit, tax and advisory roles, followed by
over 10 years at O&Y Properties and O&Y REIT ultimately becoming CFO, and prior to coming to RioCan at TD Securities as a Vice President and Director in corporate finance for two years, where he was focused on real estate industry coverage
• Over 25 years of real estate, management, finance, accounting and tax experience• Began his career with Arthur Anderson & Co where he spent 8 years in audit, tax and advisory roles, followed by
over 10 years at O&Y Properties and O&Y REIT ultimately becoming CFO, and prior to coming to RioCan at TD Securities as a Vice President and Director in corporate finance for two years, where he was focused on real estate industry coverage
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industry coverage.industry coverage.
Ri C Y E li t C tRioCan Yonge Eglinton Centre2300 Yonge Street, Suite 500, PO Box 2386, Toronto, ON
416-866-3033 / 1-800-465-2733
www riocan comwww.riocan.com
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