Management Presentation Presentation October 2010
Management Presentation Presentation October 2010
Forward Looking StatementsForward Looking StatementsCertain information included in this presentation contains forward-looking statements within the meaning of applicable securities laws including, among others, statements concerning our objectives, our 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 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 to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.
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Overview
About RioCanAbout RioCan• Largest REIT in Canada with 289 properties, including 11 under
development, owned interests totalling over 41 million sq. ft. and an enterprise value in excess of $10.0 billion
• Able to prosperously grow in all cycles of the market using prudent • 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 585 employees
• Able to undertake any task within the real estate business• Conservative use of leverage• Unmatched breadth of tenant relationships in Canada• Approximately 6,400 tenants, no tenant representing over 4.7% 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
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Portfolio FundamentalsPortfolio Fundamentals
• High proportion of national tenants• Approximately 86.0% of our annualized rental revenue is derived from national and
anchor tenants
As at September 30, 2010
anchor tenants• Stable occupancy levels at 97.1% (total portfolio) and solid leasing activity• For the quarter ended September 30, 2010, RioCan retained approximately 95.4% of our
expiring leases at an average net rent increase of 9.7%• Focus on the six Canadian high growth markets, which are: Toronto, Ottawa, Montreal,
Calgary, Edmonton, and VancouverCalgary, Edmonton, and Vancouver• Only six metropolitan markets within Canada have in excess of one million people• Approximately two-thirds of our revenue is from properties within the six high growth
major Canadian markets• US Expansion:
– RioCan has acquired 15 properties in the northeast United States and 6 properties subsequent to quarter end
– RioCan has acquired 3 properties in Texas and an additional 3 properties subsequent to quarter end
Annualized Rental RevenueAnnualized Rental Revenue Net Leasable AreaNet Leasable Area
6.3% 3.2%
30 6%
38.3%
Calgary, Alberta
Edmonton, Alberta
Toronto, Ontario
Montreal Quebec
4.7% 2.6%
23.7%
50 0%
Calgary, Alberta
Edmonton, Alberta
Toronto, Ontario
Montreal Quebec
Annualized Rental RevenueAnnualized Rental Revenue
30.6%
9.8%7.5%4.3%
Montreal, Quebec
Ottawa, Ontario
Vancouver, BC
All other markets 9.4%
6.5%3.1%
50.0% Montreal, Quebec
Ottawa, Ontario
Vancouver, BC
All other markets5
Geographic and Property Type DiversificationDiversification
As a % of annualized rental revenue
Quebec16 5%
Western Canada18 9% Grocery16.5% 18.9%
Eastern Canada2.8%
US5.6%
New Format Retail50.5%
Grocery Anchored
Centre21.4%
Enclosed Shopping
Centre13.1%
Ontario56.2%
Non-Grocery Anchored
Centre4.5%Urban Retail
6.1%Office 4.4%
September 30, 2010
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p
Top Ten TenantsTop Ten Tenants
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Unmatched Breadth of Tenant RelationshipsRelationships
• 6,400 tenancies capturing the top Canadian and American retailers
• No tenant represents more than 4.7% of annualized rental revenue
WEIGHTED TOP 10 TENANT NAME
ANNUALIZED RENTAL
REVENUENUMBER OF LOCATIONS
TOTAL AREA OCCUPIED
(sq. ft. in 000s)
AVG REMAINING
LEASE TERM (yrs)
1 Famous Players/Cineplex/Galaxy Cinemas 4.7% 28 1,263 12.62 Metro/A&P/Super C/Loeb/Food Basics 4.6% 55 2,034 8.63 Wal-Mart 4.4% 25 2,842 13.24 Canadian Tire/PartSource/Mark's Work Wearhouse 3.8% 59 1,438 11.65 Zellers/The Bay/Home Outfitters 3.3% 40 2,662 9.16 Winners/HomeSense 2.8% 55 1,207 4.87 Loblaws/No Frills/Fortinos/Zehrs/Maxi 2.7% 25 1,112 5.7,8 Staples/Business Depot 2.2% 46 939 7.4
9 Reitmans/Penningtons/Smart Set/Addition-Elle/Thyme Maternity1.9% 128 530 5.1
10 Shoppers Drug Mart 1.7% 38 429 10.4
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Unmatched Breadth of Tenant Relationships – US Top Ten TenantsRelationships US Top Ten Tenants
As at September 30, 2010, RioCan’s Ten largest tenants in the US for completed acquisitions:
TOP 10 TENANT NAME
ANNUALIZED RENTAL NUMBER OF
LOCATIONSTOTAL AREA
OCCUPIED
WEIGHTED AVG
REMAINING 10 REVENUE LOCATIONS (sq. ft. in 000s) LEASE TERM (yrs)
1 Giant Food Stores/ Stop & Shop (Royal Ahold) 18.3% 16 735 16.0
2 Bed Bath & Beyond 3.5% 7 161 8.6
3 Lowes 3.5% 3 294 16.7
4 Safeway 3.4% 3 141 12.54 Safeway 3.4% 3 141 12.5
5 HEB Supermarket 2.9% 2 114 10.4
6 PetSmart 2.9% 7 115 7.8
7 Best Buy 2.4% 3 79 8.7
8 Sports Authority 1.9% 2 68 7.39 Kohl's 1.8% 4 224 17.5
10 Old Navy 1.8% 4 60 2.9
42.4% 51 1,991 12.9
Giant Food Stores, RioCan’s largest US tenant ranks as #16 overall in RioCan’s overall portfolio and represents 1.2% of total annualized rental revenue.
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Lease Rollover ProfileLease Rollover Profile
As at September 30, 2010 – Canadian PortfolioPortfolio
4,0054,000
% Square Feet expiring / portfolio NLA’000s Square Feet
3,232 3,199 3,189
2,000
3,000
,
8.9%8.9% 8.8%8.8% 8.8%8.8% 11.0%11.0%767
0
1,000
2010 2011 2012 2013 2014
2.1%2.1%
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Stable OccupancyStable Occupancy
Historical Occupancy Rates 1996 to 2010
96.9%
95.0% 95.0% 95.4%96.1% 95.6% 95.8% 96.3% 96.3%
97.1% 97.7% 97.6%96.9% 97.4%
97.0%
1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 09/30/2010
Canadian Portfolio
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Financial HighlightsQ3 2010 HighlightsQ3 2010 Highlights
• Funds from operations (“FFO”) increased by 25% to $89.3 million in the third quarter of 2010 compared to $71.6 million in the third quarter of 2009. On a per unit basis FFO increased 20% to $0.36 per unit from $0.30 per unit in the same period of 2009;
• FFO increased by 28% in the first nine months of 2010 to $268.4 million compared to $210.1 million for the same period in 2009. On a per unit basis FFO increased 20% to $1.10 per unit from $0.92 per unit in the same period of 2009;
• Completed the acquisition of sixteen properties; six properties in Canada and ten properties in the US, that at RioCan’s interest aggregate over 2.3 million square feet at a purchase price of approximately $372 million at a weighted average cap rate of 7.4%;
• During the quarter RioCan issued US $100 million of Series N unsecured debentures at 4.1% with a five year term, to facilitate continued purchases of Canadian and US properties;
• During the quarter RioCan issued 7.2 million units for gross proceeds of $149.4 g q g p $million to facilitate continued acquisitions of Canadian and US properties;
• Announced fair value increase of $1.6 billion as of January 1, 2010 on the value of Investment Properties under International Financial Reporting Standards compared with the carrying value under GAAP; andy g ;
• Maintained strong occupancy rate of 97.1%.12
Financial HighlightsIFRS UpdateIFRS Update
• RioCan has elected to use the “fair value” model for the valuation of its income properties and properties under development (collectively, “Investment Property”) as provided under International Financial Reporting Standards (“IFRS”) ;
• The transition to IFRS is expected to increase the carrying value of RioCan’s Investment Properties, as at January 1, 2010, by approximately $1.6 billion, to $6.9 billion. This $6.9 billion value compares to the historical cost amount under current Canadian GAAP (“GAAP”) of $5.3 billion as at January 1, 2010;
• RioCan primarily used the Direct Capitalization Income Approach method to value its income properties. Individual properties were valued using capitalization rates in the range of 6.0% to 9.0% applied to stabilized net operating income (“NOI”), resulting in an overall weighted average capitalization rate for the portfolio of approximately 7.1%.
As at January 1, 2010 Overall Portfolio Primary Market Secondary Market Retail Class Weighted
Average Cap. Rate*
Range Weighted Average Cap.
Rate*
Range Weighted Average Cap.
Rate*
Range
Enclosed Shopping Centre 8.00% 7.0% - 9.0% 7.80% 7.5% - 8.8% 8.10% 7.0% - 9.0%Mixed Use 7.20% 6.0% - 8.8% 7.00% 6.0% - 7.9% 8.30% 7.8% - 8.8%Grocery Anchored Shopping 7.30% 6.5% - 9.0% 7.20% 6.5% - 8.5% 7.50% 6.8% - 9.0%y pp gCentreNon-Grocery Anchored Centre 7.30% 6.0% - 9.0% 6.90% 6.0% - 7.5% 7.70% 7.0% - 9.0%New Format Retail 6.80% 6.3% - 8.5% 6.70% 6.3% - 7.3% 7.20% 6.4% - 8.5%Urban Retail 6.70% 6.0% - 7.3% 6.70% 6.0% - 7.3% n/a n/aTotal Weighted Average 7.10% 6.0% - 9.0% 6.90% 6.0% - 8.8% 7.50% 6.4% - 9.0%
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* at RioCan’s Interest
Financial HighlightsFinancial Highlights
• ContentThree months ended (in $’000s except per unit amounts)
Sept. 30,2010
June 30,2010
Sept. 30,2009
% Change YoY
Total Revenues $216,643 $220,989 $189,022 14.6%
FFO $89 331 $92 750 $71 600 24 8%FFO $89,331 $92,750 $71,600 24.8%
FFO per Unit $0.36 $0.38 $0.30 20.0%
Sept. 30, 2010June 30,
2010 Sept. 30,2009
Distributions to unitholders $85,220 $84,091 $81,036
Distributions to unitholders per Unit $0.35 $0.35 $0.35
Distributions per Unit (annualized) $1.38 $1.38 $1.38
Distributions to unitholders net of distribution reinvestment plan $71,574 $71,671 $66,592
Distributions to unitholders net of distribution reinvestment plan per Unit $0.29 $0.29 $0.28
Unit issue proceeds under distribution reinvestment plan $13,646 $12,420 $14,444
Distribution reinvestment plan participation rate 16.0% 14.8% 17.8%
Total assets 6,500,777 6,108,605 5,649,857
Debt (mortgages and debentures payable) 4 188 620 3 936 205 3 533 360Debt (mortgages and debentures payable) 4,188,620 3,936,205 3,533,360
Debt to Aggregate Assets 57.1% 57.0% 55.7%
Debt to total capitalization 42.0% 45.9% 45.5%Market capitalization 5,781,685 4,646,674 4,233,672
Total capitalization 9,970,305 8,582,879 7,767,032
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Financial HighlightsFinancial Highlights
2010 2009 2010 2009Rental revenue 205,800$ 179,928$ 14% 610,954$ 542,921$ 13%
Three Months Ended Sept. 30, Nine Months Ended Sept. 30,
Property operating costs 66,354 62,238 7% 202,432 195,561 4%Net operating income 139,446 117,690 18% 408,522 347,360 18%Fees and other income 4,410 3,931 12% 12,622 11,223 12%Interest income 3,573 4,966 (28%) 11,603 13,237 (12%)Gains (loss) on properties held for resale 2,860 197 nm 17,064 67 nm
150,289 126,784 449,811 371,887Interest expense 53,201 49,616 7% 158,368 142,130 11%General and administrative expense 6,011 5,464 10% 19,282 18,095 7%IFRS and SIFT implementation costs 1,144 39 nm 2,217 230 nmRestructuring costs – 65 nm – 1,357 nmg ,Non‐controlling interest 602 – nm 1,572 – nmFFO 89,331 71,600 25% 268,372 210,075 28%Amortization expense 45,596 41,260 11% 135,545 123,054 10%Future income tax expense (recovery) 4,900 1,900 nm 9,994 700 nmNon‐controlling interest (337) – nm (720) – nmNon controlling interest (337) nm (720) nmNet earnings 39,172 28,440 38% 123,553 86,321 43%Net earnings per Unit – basic 0.16$ 0.12$ 33% 0.51$ 0.38$ 34%Net earnings per Unit – diluted 0.16$ 0.12$ 33% 0.50$ 0.38$ 32%FFO per Unit 0.36$ 0.30$ 20% 1.10$ 0.92$ 20%
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Financial HighlightsNet Operating Income – Year over YearNet Operating Income – Year over Year
Three Months Ended Sept. 30, Nine Months Ended Sept. 30,
(thousands of dollars) 2010 2009 2010 2009
Same store (i) $112,003 $110,708 1.2% $333,568 $326,462 2.2%
Land use intensification 1,082 600 nm 4,149 1,780 nm
Same properties (ii) 113,085 111,308 1.6% 337,717 328,242 2.9%
2010 and 2009 acquisitions 8,424 – nm 24,213 – nmq , ,
Greenfield development 5,273 4,216 25.0% 14,360 11,662 23.1%
NOI before adjustments 126,781 115,525 9.7% 376,290 339,904 10.7%
Lease cancellation fees 4,704 232 nm 12,378 1,045 nm
Straight‐lining of rents 1,306 1,180 10.7% 5,191 4,071 27.5%
Differential between contractual and market rents 751 753 (0.2%) 2,347 2,340 0.3%
NOI $133,542 $117,690 13.5% $396,206 $347,360 14.1%
(i) Same store refers to those properties that were owned by RioCan and had consistent leasable area in both periods
(ii) Same properties refer to those income properties that were owned by RioCan throughout both periods.
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Financial HighlightsNet Operating Income – Sequential Quarter over QuarterNet Operating Income – Sequential Quarter over Quarter
(thousands of dollars)
Three months endedSeptember 30, 2010 June 30, 2010 Increase /
(decrease)
Same store (i) $121,694 $121,689 0.0%
Land use intensification 889 721 23.3%
Same properties (ii) 122,583 122,410 0.1%p p ( ) , ,
Acquisitions 1,324 325 nm
Greenfield development 2,874 2,620 9.7%
NOI before adjustments 126 781 125 355 1 1%NOI before adjustments 126,781 125,355 1.1%
Lease cancellation fees 4,704 5,752 nm
Straight‐lining of rents 1,306 1,489 (12.3%)
Differential between contractual and market rents 751 769 (2 3%)Differential between contractual and market rents 751 769 (2.3%)
NOI $133,542 $133,365 0.1%
“nm” – not meaningful.
(i) S f h i i h d b Ri C d h d
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(i) Same store refers to those income properties that were owned by RioCan and had consistent leasable area in both periods.
(ii) Same properties refer to those income properties that were owned by RioCan throughout both periods.
Financial HighlightsQ4 of 2010 OutlookQ4 of 2010 Outlook
• Robust acquisition activity that was completed in the nine months of 2010 and late 2009 will have an impact in the remainder of 2010 and 2011.
• In the fourth quarter of 2009 RioCan completed total acquisitions of $257 million at an average cap rate of 7.5%
• To Sept. 30 RioCan completed total acquisitions of $663 million at an average cap rate of 7.7%
– $324.5 million Canadian Acquisitions at 7.3% cap rate– $338.6 million US Acquisitions at 8.0% cap rate
• RioCan is very well positioned with a strong balance sheet to continue to capitalize on acquisition opportunities expected in the remainder of 2010 and into 2011
• Contractual Rent Steps• Interest savings on maturing debt are expected to continue in 2011• Mortgage debt maturing for the remainder of 2010 and in 2011 currently
carries an average interest rate of 5.8% providing an opportunity for g p g pp yRioCan to reduce interest expense at current interest rates
• Closing the gap – economic occupancy versus committed occupancy• High quality, clean core income
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Acquisition Activityq y
Acquisition ActivityYTD AcquisitionsYTD Acquisitions
Capitalization Purchase Price NLA CapitalizationRate
Purchase Price ($’000s)
NLA
Canada7.3% 334,987 1,432,854
US7 9% 479 552 3 303 786
US7.9% 479,552 3,303,786
Total 7.7% 814,539 4,736,640
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Acquisition ActivityYTD Acquisitions - Canada
• Content
YTD Acquisitions - Canada
Property name and location Capitalization rate
RioCan's purchase price
(i) ('000s) NLA (in sqft) at
RioCan's interest Year Built Asset class Major tenants
RioCan's ownership
interest
Acquisitions Completed in Q1 2010Market at Citadel Village, St. Albert, AB
7.5% 17,413 51,029 2007/2008 Non-Grocery Anchored
Shoppers Drug Mart 100%
Summerwood Centre, Sherwood Park, AB
7.5% 29,524 83,911 2008/2009 Grocery Anchored
Save On Foods, Shoppers Drug Mart
100%
Timberlea Landing, Fort McMurray, AB
8.2% 63,063 105,467 2008 Mixed use ATB, Regional Municipality of Wood Buffalo
100%
Chapman Mills Marketplace, Ottawa, ON (Additional 12.5% interest)
6.8% 11,884 53,979 -- New Format Retail
Walmart, Galaxy Cinemas, Winners, Staples
75%
Total Canadian Acquisitions Q1
7.8% 121,884 294,386
Acquisitions Completed i Q2 2010in Q2 2010Halton Hills, Georgetown, ON
7.2% 10,275 75,366 1979 Grocery Anchored
Food Basics (36,002), Dollarama (10,970),TD Bank (10,000),Bulk Barn (5,000)
100%
Clappison Crossing, Flamborough ON
7.3% 20,554 133,628 2007 New Format Retail
Walmart (151,448),Rona (98 546) LCBO
100%Flamborough, ON (Additional 50%interest)
Retail Rona (98,546), LCBO,(11,882), Bank of NovaScotia (5,380)
Corbett Centre, Fredericton, NB (Additional 37.5%interest)
7.3% 8,728 36,515 2008 New Format Retail
HomeDepot*,Costco*,Michael’s(17,438),Winners(29,948), Dollarama
100%
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37.5%interest) (29,948), Dollarama(10,301), PetSmart (9,589)
Total Canadian Acquisitions Q2
7.3% 39,557 245,509
(i) Excludes closing costs and other acquisition related costs.
Acquisition ActivityYTD Acquisitions - Canada
• INSERT Q3 Acquisitions
YTD Acquisitions - Canada
Property name and location Capitalization rate
RioCan's purchase price (i) ('000s)
NLA (in sqft) at RioCan's
interest Asset class Major tenants
RioCan's ownership
interest Gatineau Walmart 6.7% 51,239 287,765 2006New Walmart (158,801), 100%Centre, Gatineau, QC
Format Retail
Golf Town (18,761)
Hamilton Walmart Centre, Hamilton, ON
6.7% 49,436 214,486 2008/2009New Format Retail
Walmart (133,555), Dollar Giant (10,118)
100%
Niagara Square, Niagara Falls, ON (Additional 15%
8.4% 7,050 57,343 1977/1987/2008
Enclosed Shopping Center
Cineplex (45,853), Winners (31,967), Sport Chek
30%
(Additional 15% interest)
Center Sport Chek (20,160), Future Shop (20,027)
RioCan Centre Gravenhurst, Gravenhurst, ON (Additional 66 67%
7.5% 19,508 99,395 2008/2009New Format Retail
Canadian Tire (76,403), Sobeys (41,360)
100%
(Additional 66.67% interest)Vaudreuil Shopping Centre, Vaudreuil-Dorion, QC
7.6% 23,144 118,330 2006/2007New Format Retail
Super C*, Canadian Tire*, Bureau en Gros (20,000), Golf Town (15,000)
100%
Wharncliffe Centre, 7.0% 12,687 60,711 1991Grocery No Frills (40,140) 100%,London, ON
, , yAnchored
( , )
Total Canadian Acquisitions Q3
7.0% 163,064 838,030
March Road,Ottawa, ON
n/a 10,482 54,929 2010/2011New Format Retail
Sobeys (50,836),Pharma Plus (11,953)
50%
Total Canadian 7 3% 334 987 1 432 854
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Total Canadian Acquisitions YTD
7.3% 334,987 1,432,854
Acquisition Activityq y
Investment in the US
Rationale for US InvestmentRationale for US Investment
• RioCan’s objective is to take a measured and defensive approach to its investment in the U.S.– The U.S. market has yielded a greater number of attractive
opportunities than what were available in Canada– Targeting defensive retail assets (primarily grocery-anchored retail)
• Grocery anchored retail traditionally viewed as most defensive category due to non-discretionary naturey
• Attractive Cap rate of 8.5% for the initial portfolio transaction with Cedar• Subsequent Cedar JV acquisitions at a cap rate range of 7.5% to 8.3%• Attractive Cap rate of 7.7% for the portfolio transaction with Inland Western
– JV allows RioCan to partner with a strong, experienced and well-connected U S management team that maintains an equity interest connected U.S. management team that maintains an equity interest to best align interests
– Total proposed and completed property acquisitions represent less than 10% of gross real estate assets
– RioCan has sought transactions where its position as a strong capital RioCan has sought transactions where its position as a strong capital partner can provide an enhanced liquidity position for future growth for our partners and in return RioCan has the benefit of local expertise and an experienced partner
– Expanded relationship with recent acquisitions with Kimco
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Acquisition ActivityYTD Acquisitions – United StatesYTD Acquisitions United States
Property name and location Capitalization
rate RioCan's purchase price (i) ('000s)
NLA (in sqft) at RioCan's
interest Year Built Asset class Major tenants
RioCan's ownership
interest
Acquisitions Completed in Q1 2010Franklin Village Plaza, Franklin, MA 8.5% 45,995 306,217 1987/2005Grocery
Anchored /Office
Stop&Shop (75,000),Marshalls (26,890),Bath & Body Works (2,500),Bank of America (2,550)
80%
Columbus Crossing, Philadelphia, PA
8.5% 20,645 113,734 2001Grocery Anchored
Super Fresh (61,506),Old Navy (25,000),ACMoore (22,000)
80%
( , )
Town Square Plaza, Reading, PA 8.3% 16,064 102,109 2008New Format Retail
Giant FoodSupermarkets (73,727),ACMoore (21,600)
80%
Total US Acquisitions Q1 8.5% 82,704 522,060
Acquisitions Completed in Q2 2010Loyal Plaza, Williamsport, PA 8.5% 22,963 235,060 1969/2000Grocery
AnchoredGiant FoodSupermarkets (66,935),K-Mart (102,558),Staples (20,555),Eckerd Drugs (10,908)
80%
Stop&Shop Plaza Bridgeport CT 8 5% 7 304 43 609 2006Grocery Stop&Shop (54 510) 80%Stop&Shop Plaza, Bridgeport, CT 8.5% 7,304 43,609 2006Grocery Anchored
Stop&Shop (54,510) 80%
Shaw’s Plaza, Raynham, MA 8.5% 16,572 141,288 1984Grocery Anchored
Shaw’sSupermarkets (60,748),Marshalls (25,752),CVS (10,125)
80%
Total US Acquisitions Q2 8.5% 46,839 419,957
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(i) Excludes closing costs and other acquisition related costs.
Acquisition ActivityYTD Acquisitions – United StatesYTD Acquisitions United States
Property name and location Cap rate
RioCan's purchase price
(i) ('000s)
NLA (in sqft) at RioCan's
interest Year Built Asset class Major tenants
RioCan's ownership
interest
Acquisitions Completed in Q3 2010
Inland WesternInland WesternBear Creek Shopping Center, Houston, TX
7.7% 12,987 70,330 2001Grocery Anchored
HEB Supermarket (61,805), GNC (1,300), Papa John's (1,500)
80%
Cypress Mill Plaza, Houston, TX
7.7% 12,228 93,125 2005New Format Retail
Walmart*, Home Depot*, Hobby Lobby (59,898), Palais Royale (24,000), Dollar Tree (9,998)
80%
New Forest Crossing, H t TX
7.7% 13,683 118,452 2005New Format Retail
Lowe's*, Walmart*, Big Lots (34 076) Ross Dress for Less
80%Houston, TX Retail (34,076), Ross Dress for Less
(30,047), Petsmart (18,975)7.7% 38,898 281,907
CedarCreekview Centre, Warrington, PA
7.6% 21,653 108,869 2001New Format Retail
Target*, Lowe's*, Genuardi's Supermarket (Safeway) (48,966), LA Fitness (38,000). Bed, Bath & Beyond (25,000)
80%
Monroe Marketplace, 7.6% 35,392 272,814 2008New Format R il
Target*, Giant Foods S k (127 000)
80%Sellinsgrove, PA Retail Supermarket (127,000),
Kohl's (68,430), Dick's Sporting Goods (51,119), Best Buy (22,504), Michael's (20,649), PetSmart (18,156), Staples (14,730)
New River Valley Centre, Christiansburg, VA
7.6% 22,751 131,730 2007New Format Retail
Best Buy (30,041), Ross Dress for Less (30,037), Bed Bath & Beyond (24,152), Staples (20 443) PetSma t (17 878)
80%
(20,443), PetSmart (17,878), Old Navy (15,413)
Pitney Road Plaza, Lancaster, PA
7.6% 9,127 36,732 2009New Format Retail
Costco*, Lowe's*, Best Buy (45,915)
80%
Sunrise Plaza, Forked River, NJ
7.6% 21,766 203,168 2007New Format Retail
Home Depot (130,601), Kohl's (96,171), Staples (20,388)
80%
Montville Commons Shopping Center, Montville, CT
7.7% 15,844 94,333 2007Grocery Anchored
Home Depot*, Stop & Shop (63,000)
80%
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CT Exeter Commons, Reading, PA
7.8% 43,630 287,257 2009New Format Retail
Target*, Lowe's (171,069), Giant Foods Supermarket (81,715), Staples (18,008)
80%
7.7% 170,163 1,134,904Total US Acquisitions Q3 7.7% 209,061 1,416,811
(i) Excludes closing costs and other acquisition related costs.
Acquisition ActivityYTD Acquisitions – United States Subsequent to Quarter EndYTD Acquisitions United States Subsequent to Quarter End
Property name and location Cap rate
RioCan's purchase price
(i) ('000s)
NLA (in sqft) at RioCan's
interest Year Built Asset class Major tenants
RioCan's ownership
interest
Acquisitions Completed Subsequent to the Quarter End
CedarCedarCross Keys Place,Turnersville, NJ
8.3% $21,120 118,538 2007 New Format Retail
Home Depot*, Sports Authority (42,000), Bed Bath & Beyond (35,005), AC Moore (21,305), Old Navy (19,234)
80%
Gettysburg Marketplace,Gettysburg, PA
7.8% 16,198 68,640 1998 GroceryAnchored
Giant Food (66,674), Blockbuster (5,010), Hallmark (4,500)
80%
Marlboro Crossing,U M lb MD
7.8% 10,200 52,278 1993 GroceryA h d
Giant Food (60,951) 80%Upper Marlboro, MD Anchored
Northland Center,State College, PA
7.8% 8,362 86,608 1988 GroceryAnchored
Giant Food (65,075), CVS (10,920)
80%
Towne Crossing,Richmond, VA
7.8% 15,504 83,134 1980 Non-GroceryAnchored
Bed Bath & Beyond (40,000), Michael’s (20,000)
80%
York Marketplace,York PA
7.8% 23,827 244,568 1955/2004 GroceryAnchored
Lowe’s Home (125,353), Giant Food (74,600), Office Max
80%York, PA Anchored Food (74,600), Office Max
(23,500), Super Shoes (20,000)
7.9% 95,211 653,766
Inland WesternCoppell Town Center,Dallas-Fort Worth, TX
7.7% 9,312 73,086 2000GroceryAnchored
Tom Thumb (63,150), Starbucks (2,050), UPS Store (1,500)
80%
Suntree Square 7.7% 9,426 77,112 1993/2001Grocery Tom Thumb (63,556), Starbucks 80%qDallas-Fort Worth
, , / yAnchored (1,960), Subway (1,200),
T-mobile (2,000)
7.7% 18,738 150,198KimcoLas Palmas Marketplace,El Paso, TX
2002/2008 New Format Retail
Lowe’s (179,421), Kohl’s (86,800), Ross Dress for Less (33,419), Babies R’Us (30,570),Bed Bath & Beyond (30,172),
31.7%
27
Office Depot (29,491), Michael’s (23,694)
Total US Acquisitions Subsequentto 09/30
7.8% $140,948 1,006,201
Total US Acquisitions YTD 7.9% $479,552 3,303,786(i) Excludes closing costs and other acquisition related costs.
Acquisition ActivityMap of Northeastern US acquisitions*Map of Northeastern US acquisitions*
* completed or under contract28
Acquisition ActivityMap of Texas acquisitions*Map of Texas acquisitions*
* completed or under contract29
Acquisition ActivityRecently Completed Acquisitions – Exeter CommonsRecently Completed Acquisitions – Exeter Commons
• Recently developed (2009) new format retail centre in Reading, PA
• 361,000 Square feet on 37 acres
• Well anchored centre with strong Target shadow anchor
• 98% LeasedL t l • Low near term lease rollover, with only 3.6% of leases set to expire over next five yearsy
• Attractive cap rate 7.75%
• Total purchase price $53 million ($42.4 million at RioCan’s 80% interest)
30
Acquisition ActivityNew Markets – Inland Western Retail REITNew Markets – Inland Western Retail REIT
• Eight Grocery-anchored and New Format Retail centres in Texas
• Major urban markets of Dallas-Fort Worth, Houston, Austin
– These three cities combined have a population in excess of 14 million people
• Well anchored centres 5 of 8 are grocery anchored and one is a Walmart anchored property
• 100% Leased• Attractive cap rate 7.7%• Total purchase price $123
million at RioCan’s 80% interest
31
Acquisition ActivityRecently Announced Acquisitions – Inland Western Retail REITRecently Announced Acquisitions – Inland Western Retail REIT
NLA (i ft) t
Property name and location
NLA (in sqft) at RioCan's interest Asset class Major tenants Year Built
Southpark Meadows I, Austin213,472
New Format Retail Walmart 2004
Riverpark Shopping Center I & II, Houston 197,524
New Format Retail HEB Supermarket 2002
Bear Creek Shopping Center, 70 330
Grocery Anchored HEB Supermarket 2001Bear Creek Shopping Center, Houston 70,330
Grocery Anchored HEB Supermarket 2001
Suntree Square, Dallas- Fort Worth 77,112
Grocery Anchored Tom Thumb (Safeway) 1991
Coppell Town Center, Dallas-Fort Worth 73,086
Grocery Anchored Tom Thumb (Safeway) 1998
Great Southwest Crossing, Dallas-Fort Worth
73,816New Format Retail Kroger (shadow) , Office
Depot, PetSmart 1997/2002
New Forest Crossing, Dallas-Fort Worth
118,452New Format Retail Walmart , Lowe’s
(shadow)2001
Big Lots, PetSmart
Cypress Mill Plaza, Houston 93,125
New Format Retail Walmart, Home Depot (Shadow), Hobby Lobby
2004
Total US Acquisitions 916,917
32
Acquisition Activity Recently Announced Acquisitions – Inland Western REITSelected PhotosSelected Photos
Riverpark Shopping Center, Houston Suntree Square, Dallas-Fort Worth
Coppell Town Center Dallas-Fort WorthSouthpark Meadows Austin
33
Coppell Town Center, Dallas Fort WorthSouthpark Meadows, Austin
US PartnersInland Western Retail Real Estate Trust IncInland Western Retail Real Estate Trust, Inc.
• Transaction with Inland Western represents an opportunity to expand into Texas with an experienced partnerexperienced partner
– Self administered, publically registered, non listed real estate investment trust• Owns and operates a portfolio of 294 primarily multi tenant shopping centres
aggregating ~46 million SF of GLA• Total Assets = US$6.0B
L t t ti i T 20% b GLA• Large asset concentration in Texas ~ 20% by GLA• Diversified portfolio of predominantly multi-tenant retail (Neighbourhood Centres,
Community Centres, Power Centres, and Lifestyle Centres make up approximately ¾ of GLA)
• Diversified tenant base no single tenant represents more than 2.6% of annualized base rent – Largest tenant is Targetg g
• Announced acquisition of eight new format and grocery-anchored retail centres
– Dominant local grocersHEB l l i t l d • HEB – local privately owned grocer
– 300 stores in Texas and Mexico– Has been in operation for over 100 years
• Tom Thumb– One of two banners operated by Safeway in Texas– Safeway is one of North America’s leading food and drug retailers operating over Safeway is one of North America s leading food and drug retailers operating over
1,700 stores in Canada and the US– Operates 112 stores under the Randall’s and Tom Thumb banner
in Texas34
US PartnersCedar Shopping Centers IncCedar Shopping Centers, Inc.
• Transaction with Cedar was a first step towards growing a US platform with an experienced partner. Cedar is a fully integrated U.S. REIT with an experienced partner. Cedar is a fully integrated U.S. REIT
– Owns and operates a portfolio of 131 primarily supermarket-anchored shopping centres aggregating ~15 million SF of GLA
– Equity Market Cap = US$576MM; Total Enterprise Value = US$2.2B Total Assets = US$1.6B
– Large asset concentration in eastern 2/3rds of Pennsylvania with a presence in – Large asset concentration in eastern 2/3rds of Pennsylvania, with a presence in Massachusetts, Connecticut, NJ, Virginia and Maryland
– Diversified tenant base – with the exception of Royal Ahold, no single tenant represents more than 2.8% of annualized base rent
• Cedar, like a number of U.S. REITs in the current environment, required b l h t it li ti t ith t di th t it d l i l a balance sheet recapitalization, notwithstanding that its underlying real
estate assets have continued to perform well• Transaction with RioCan provided Cedar with an enhanced liquidity
position and a strong capital partner for future growth and in return RioCan has the benefit of local expertise and an experienced partnerRioCan has the benefit of local expertise and an experienced partner.
• To date RioCan has acquired or announced the acquisition of nine properties that total approximately 1.6 million square feet
• RioCan has an equity ownership position in Cedar of approximately 14% or 9.4 million common shareso 9 o o o s a s
35
Capital Structurep
Conservative Debt ProfileConservative Debt Profile
• Debt-to-Gross Book Value (historical cost) of 57.1% at September 30, 2010 (56.9% net of cash);
• Total operating lines - $303 million with approximately $247.4 million available
• 73 properties unencumbered by debt• For the quarter ended September 30, 2010,
interest coverage was approximately 2.48x and g pp ydebt service coverage was 1.92x
• Approximately 75% of RioCan’s debt was secured • Floating rate debt - 3 5% of total debt• Floating rate debt 3.5% of total debt
37
Unsecured Debenture CovenantsUnsecured Debenture Covenants
• Maintain at all times a ratio of Consolidated • Maintain at all times a ratio of Consolidated EBITDA to Consolidated Interest Expense of not less than 1.65 to 1
• Maintain a debt to gross book value of assets ratio of less than or equal to 60%assets ratio of less than or equal to 60%
• Maintain at all times an Adjusted Unitholders’ Equity of at least $1 billion.
38
Modest Leverage, Strong Interest CoverageModest Leverage, Strong Interest Coverage
• RioCan has consistently adhered to a conservative debt policy even through periods of considerable growth– Leverage of 57.1% at September 30, 2010; – 60% max permitted under covenant– Interest coverage well in excess of the 1.65x maintenance
covenantcovenant
2 9x 2 9x 2.6x 2.6x 2.7x 2.8x2 9x
2.7x
47.3% 48.2%51.9% 53.1% 53.8% 53.9%
56.6% 56.3% 54.9% 55.6% 57.1%
2.9x 2.9x 2.9x 2.6x 2.2x 2.5xLeverage Interest Coverage
39
Debt Maturity ScheduleDebt Maturity Schedule
• Long-term, staggered debt maturity profile• 5 6% Overall WAIR• 5.6% Overall WAIR• 4.4 Year weighted avg. term to maturity• Minimal floating rate debt exposure (3.5% of total debt)• Financing mortgages today at well below 5% (4.25%-4.5%)
8.00%1,200,000 Wtd
$000s
Debentures payableMortgages payableScheduled principal amortization
5.82%5.30% 5.65% 5.42%
6.46%
5.81%5.00%
6.00%
7.00%
600,000
800,000
1,000,000
. Avg. Interest Rate
5.01%
3.00%
4.00%
0
200,000
400,000
2010 2011 2012 2013 2014 2015 Thereafter
e on Maturing D
ebt
40 As at September 30, 2010
Leverage at Historic Cost & Stock Market ValueLeverage at Historic Cost & Stock Market Value
• As at September 30, 2010
57.1% 56.9%
42.1%
Historic Cost Market Net of Cash
41
Capital StructureCapital Structure
Book Value = $6.5 billion Gross Book Value = $7.4 billion Enterprise Value = $10.0 $ $ p $billion
50.8%42.2%
11.0%
31.1%
18.0%
14.9%
57.9%
31.3%42.9%
42Mortgages= $3.1 billion
Debentures = $1.1 billion
Equity = 252 million units outstanding
Conservative Commitments to Development PipelineDevelopment Pipeline
As at September 30, 2010
$1$50
$60Co-Ownerships - Other
in millions
$25
$2$1
$20
$30
$40
$50 Co-Ownerships - Trinity/CPPIBCo-Ownerships - TrinityRioCan Owned Developments
$5$21
$0
$9$3
$0
$3
$1
$0
$10
2010 2011 2012+
43
Debt Maturities by LenderDebt Maturities by Lender
Contractual
Principal Balance by Type of Lender
(thousands of dollars)
Scheduled Principal
Amortization
Life Insurance
IndustryMortgage
Conduit BanksPension
Funds OtherUnsecured
Debentures Total
As at As at September 30, 2010: For the year ended Dec. 31 2010 17,537 12,598 – – – 847 – 30,982
2011 72,294 8,941 53,952 26,787 4,679 65,649 200,000 432,302
2012 71,366 59,682 107,374 69,810 – – 220,000 528,232
2013 66,425 110,351 107,513 186,723 – 8,926 150,000 629,938
2014 56,707 115,821 6,592 261,675 5,922 34,772 180,000 661,489
2015 45,174 133,462 99,751 249,399 55,471 107,942 253,150 944,349
Thereafter 89,633 370,177 146,108 134,946 92,070 39,534 100,000 972,468
Total 419 136 811 032 521 290 929 340 158 142 257 670 1 103 150 4 199 760Total 419,136 811,032 521,290 929,340 158,142 257,670 1,103,150 4,199,760
44
Borrowings YTD in 2010Borrowings YTD in 2010
Mortgages Payable Quarter ended September 30, 2010
Nine months ended September 30, 2010
(thousands of dollars, h d )
Weighted A
Weighted A
Average Texcept other data)
Contractual Debt
Average Contractual
Interest RateContractual
Debt
Average Contractual
Interest Rate
Term to Maturity
(years)
New borrowings:Fixed rate term mortgages $242,740 4.72% $584,833 5.01% 5.77
Floating rate term mortgages - - 12,450 2.91% 5.00
Construction 5,667 3.85% 16,359 3.42% 1.34
Total $248,387 4.70% $613,642 4.92% 5.64
45
Assets Available to FinanceAssets Available to Finance
• Content PRINCIPAL BALANCE OF DEBT MONITORING
(in thousands) NUMBER OF NBV of IPPAt September 30
2009 ANNUALIZED 2010 2011(in thousands) PROPERTIES At September 30,
2010ANNUALIZED
NOI (1)2010 2011
Collateral – Income Properties
Encumbered Assets with Debt Maturing in 2010 2 61,943 6,463 12,598 -g
Encumbered Assets with Debt Maturing in 2011 8 224,696 19,945 - 121,977
Unencumbered Assets at September 30, 2010 73 791,799 66,355 - -
Construction Financing on Properties Under Development (2)
2 - - - 19,630
VTB on Properties Under Development 1 33,957 2,581 847 -Development
Unsecured Debt Maturity- - - - 200,000
TOTAL 86 1,112,395 95,344 13,445 341,607
46(1) Excluding impact of straight-line rents and the differential between contractual and market rents. (2) Projects include components that are income producing at September 30, 2010. NBV shown represents amounts in IPP only
Looking Aheadg
Future Growth DriversFuture Growth Drivers• Organic Growth
– Contractual Rent Steps – contractual rent steps should generate $1.4 million in 2010 and $3.6 million in 2011
– Positive leasing spreads on maturing leases should provide positive same property NOI growth
– Interest savings on maturing debt: 2010 and 2011 maturities currently carry an average interest rate of 5.8% providing an opportunity for RioCan to reduce interest expense at current interest rates
– Closing the gap – economic occupancy versus committed occupancy provides an annual NOI impact of approximately $11.6 million
• Acquisition Activity – RioCan intends to continue to be an active acquirer in 2011
$663 million was completed in the first three quarters of 2010– $663 million was completed in the first three quarters of 2010– $349 million completed or under contract after Sept. 30, 2010– RioCan is very well positioned with a strong balance sheet to capitalize on
acquisition opportunities expected in 2010 and 2011
• Greenfield Development p– completions from 2009 will provide additional income in 2010– As at September 30, 2010, Greenfield Development projects comprise
approximately 8.4 million square feet, of which RioCan’s ownership interest is approximately 3.4 million square feet. Once complete these developments should generate strong returns and improve the overall quality of the portfolio.g g p q y p
48
Future Growth Drivers
Organic Growth Institutional Relationships
Land Use Intensification
Greenfield DevelopmentAcquisitions
Interest SavingsInterest Savings
• RioCan’s debt ladder staggers maturities such that there are i l ith l t t i d btno single years with a large exposure to maturing debt.
• This enables RioCan to take advantage of low interest rate environments and insulates the impact of higher interest rate p genvironments.
• In 2010 by refinancing maturing debt with an interest rate in excess of 7% into debt with an average interest rate of excess of 7% into debt with an average interest rate of 4.96% RioCan has generated annual interest savings $6.7 million on refinanced mortgage debt.
50
Debt Maturity ScheduleDebt Maturity Schedule• Long-term, staggered debt maturity
profile• 5.6% Overall WAIR
4 4 Yea eighted a g te m to
In $000’s
Mortgage Maturities in 2011
AverageInterest Rate
Potential Interest Savings if refinanced at
4 25% 4 50% 4 75%• 4.4 Year weighted avg. term to maturity
• Minimal floating rate debt exposure (3.5% of total debt)
• Financing mortgages today at well below 5% (4.25%-4.5%)
4.25% 4.50% 4.75%
$232,302 5.78% $3,554 $2,973 $2,393
below 5% (4.25% 4.5%)
8.00%1,200,000 Wtd
$000s
Debentures payableMortgages payableScheduled principal amortization
5.82%5.30% 5.65% 5.42%
6.46%
5.81%5.00%
6.00%
7.00%
600,000
800,000
1,000,000
. Avg. Interest Rate
5.01%
3.00%
4.00%
0
200,000
400,000
2010 2011 2012 2013 2014 2015 Thereafter
e on Maturing D
ebt
51 As at September 30, 2010
Occupancy AnalysisOccupancy Analysis
• RioCan’s committed occupancy rate of 97.1%. Included in thi t i 492 000 f t f l d b t t t
As at September 30, 2010
this rate is 492,000 square feet of leased but not yet open space, resulting in an economic occupancy rate of 95.8%
• The gap of leased but not yet paying rent represents an additional $11.6 million of annualized rental revenue
97 5%
100.0% Occupied
Occupancy1000
1200
'000s
95.8%
1.30%
92.5%
95.0%
97.5%
97.1%
0
200
400
600
800
90.0%
30‐Jun‐10
Q4 2010 Q1 Q2 Q3
Monthly rent commencing Cumulative monthly rent commencing
2010 2011
52
Portfolio Leasing ActivityPortfolio Leasing Activity
• YTD in Canada RioCan has renewed 2.8 million square feet at and average rent increase of $1.53 per square f t 9 7%foot or 9.7%
• Retained 95% of expiring leases• Vacancies YTD as a result of unanticipated vacancies
were 322 000 square feet at RioCan’s interest a were 322,000 square feet at RioCan s interest, a significant improvement from the 655,000 square feet at RioCan’s interest incurred in the same period in 2009
53
Portfolio Leasing ActivityPortfolio Leasing Activity
quarter ended Sept. 30, 2010Total
New Format
Retail
Grocery Anchored
Centre
Enclosed Shopping
Centre
Non-Grocery Anchored
Centre
Urban Retail Office
(sq ft in thousands) Retail Centre Centre Centre(sq t t ousa ds)Renewals at market rental ratesSquare feet renewed 456 97 182 100 66 10 1Average net rent psf 21.43 24.35 20.83 20.30 17.02 44.26 19.50
Increase in average net rent psf 2.39 3.61 1.87 1.37 2.24 11.26 0.90
Fixed rental rate options in favour of our t ttenantsSquare feet renewed 485 213 52 219 – 1 –Average net rent psf 10.72 14.98 13.57 5.84 – 33.00 –Increase in average net rent psf 0.37 0.70 0.05 0.12 – 1.00 –
Total:Square feet renewed 941 310 234 319 66 11 1Average net rent psf 15.91 17.92 19.21 10.36 17.02 43.58 19.5
Increase in average net rent psf 1.35 1.61 1.47 0.51 2.24 10.63 0.90
Percent Increase 9.3% 9.9% 8.3% 5.2% 15.2% 32.3% 4.8%
Canadian portfolio
54
Organic Growth – Lease ExpiresOrganic Growth Lease Expires
LEASE EXPIRIES(in thousands, except psf and percentage amounts)
Portfolio NLA
2010 (i) 2011 2012 2013 2014
Square Feet:New Format Retail 17,635 220 1,186 1,216 1,445 1,501Grocery Anchored Centre 7,571 170 966 1,003 560 1,229Enclosed Shopping Centre 6,297 237 675 631 675 721Non-Grocery Anchored Centre 1,873 40 87 119 201 138Urban Retail 1,295 9 58 136 165 314Office 1,583 91 260 94 143 102Total 36,254 767 3,232 3,199 3,189 4,005Square feet expiring/portfolio NLA 2 10% 8 90% 8 80% 8 80% 11 00%NLA 2.10% 8.90% 8.80% 8.80% 11.00%Average rent psf :New Format Retail 16.33 18.2 17.30 17.30 17.67 18.09Grocery Anchored Centre 14.33 17.71 14.16 14.40 17.21 13.59Enclosed Shopping Centre 11.13 13.41 11.97 12.35 14.58 13.60Non-Grocery Anchored Centre 12.21 14.52 15.83 14.35 14.28 15.34Urban Retail 22 36 25 63 19 43 29 20 15 11 16 97Urban Retail 22.36 25.63 19.43 29.20 15.11 16.97Office 12.84 9.58 13.14 11.43 10.90 12.72Total average net rent psf 14.86 15.49 14.91 15.63 16.28 15.58
55 (i) for the remainder of 2010
Future Growth Drivers
Organic Growth Institutional Relationships
Land Use Intensification
Greenfield DevelopmentAcquisitions
Future Growth DriversAcquisitionsAcquisitions
• RioCan has completed over $800 million of acquisitions year to date and over $1.2 billion over the past 12
thmonths
• Year to date acquisitions have been completed at a weighted average cap rate of 7 7%weighted average cap rate of 7.7%
• Financing used to complete these acquisitions has been completed at interest rates below 5%completed at interest rates below 5%
CapitalizationRate
Purchase Price ($’000s)
NLA
C n dCanada 7.3% 334,987 1,432,854
US 7.9% 479,552 3,303,786
Total 7.7% 814,539 4,736,640
Acquisition ActivityAssets Under ContractAssets Under Contract
C it li tiRioCan’s
h
NLA (in sq.ft.) at Ri C ’ A t Y
RioCan’s hi
Property name and locationCapitalization Rate
purchase price (‘000s)
RioCan’s interest
Asset class
Year builtMajor tenant(s) and NLA
ownership interest
CANADAKeswick Walmart, Keswick, ON 7.0% 20,942 122,061New
Format Retail
2010Walmart (151,000) 75%
Brant Power Centre, 7.4% 15,050 57,539New 2004Home Outfitters (32,000), Best 50%Burlington, ON Format
RetailBuy (31,000)
Millwoods Town CentreEdmonton, AB
7.7% 26,070 160,460Enclosed ShoppingCentre
1975Canadian Tire (88,000),Safeway (49,000), Zellers (123,000)
Repentigny Shoppers Drug Mart, Montreal, QC
7.0% 5,450 17,000Non‐Grocery
2009Shoppers Drug Mart (17,000) 100%
AnchoredQueensway,Toronto, ON
6.0% 15,725 55,366New Format Retail
2000Cineplex (87,510) 50%
Total Canada 7.1% 83,237 412,426
UNITED STATES
Inland Portfolio (remaining) 7 7% 69 142 484 812Various VariousVarious 80%Inland Portfolio (remaining) 7.7% 69,142 484,812Various VariousVarious 80%Red Rose Commons,Lancaster, PA
7.6% 28,471 210,762New Format Retail
1998Home Depot*, Weis Markets*, Sports Authority (43,091), HH Greg (32,296), Office Max (30,078), PetSmart (28,710),Barnes & Noble (26,306)
80%
Whitehall Mall,Whitehall PA
7.6% 16,296 278,751New Format
1965/1998
Sears (212,850), Kohl’s (81 785) Bed Bath & Beyond
50%
58
Whitehall, PA Format Retail
/1998 (81,785), Bed Bath & Beyond (43,971), Gold’s Gym (27,213),Michael’s (22,965)
Total US 7.7% 113,909 974,325
Total 7.4% 197,146 1,386,751
Future Growth Drivers
Organic Growth Institutional Relationships
Land Use Intensification
Greenfield DevelopmentAcquisitions
Strong Development PipelineStrong Development Pipeline• Greenfield developments through in-house capabilities and with partners, such as Trinity and
Canada Pension Plan Investment Board (CPPIB)At September 30, 2010
Total G eenfield de elopments comp ise 8 5 million sq a e feet incl ding shado ancho s• Total Greenfield developments comprise 8.5 million square feet, including shadow anchors• RioCan’s owned interest consists of 3.6 million square feet• Total estimated project cost is $1.6 billion, with RioCan’s interest being approx. $743 million• Invested $363 million in these projects• RioCan’s funding obligations, before construction financing is $379 million ($46 million is for
current development and $333 million is for potential future development)current development and $333 million is for potential future development)– In addition, RioCan will fund approx. $166 million under mezzanine lending program to
certain partners, primarily Trinity Developments ($24 million is for current development and $142 million is for potential future development)
• Generate unlevered yield between 7% to 11%, at a weighted average of 8.5% to 9.5%Strategic sales to CPPIBStrategic sales to CPPIB• In Q1 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 Q1 2010 RioCan successfully completed the rezoning of St Clair and Weston, which generated a total gain of $3.3 million
• In October 2008, CPPIB purchased at 37.5% non-managing ownership interest in two of h h i E Hill i C l I Q1 2010 Ri C f ll l d h i three phases in East Hills in Calgary. In Q1 2010 RioCan successfully completed the rezoning
of East Hills, which generated a total gain of $4.0 million• Significantly reduced development exposure on the three projects of $667 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
60
Strong Development PipelineStrong Development PipelineLowe’s Centre Orleans
RioCan is currently developing its 39 acre site at Lowe’s Centre Orleans at Innes Road and Belcourt Boulevard in Ottawa, Ontario into a 417,000 square foot new format retail centre. This joint venture development with our partner, Trinity, is anchored by Lowe’s Home Improvement Warehouse which owns its own location and has commenced operations. Other major tenants at the property include Allstate j p p yInsurance, CIBC, and Empire Theatres, which have all commenced operations. Construction is expected to commence in 2011 on an additional phase, which will feature a national supermarket tenant of approximately 35,000 square feet.
HazeldeanConstruction has commenced at RioCan’s joint venture development on Hazeldean Road, in Ottawa. This 33 acre site is currently being d l d i t 393 000 f t f tdeveloped into a 393,000 square foot new format retail centre. The site will be anchored by Lowe’s Home Improvement Warehouse, which will own its own store. Lowe’s is expected to open in late 2010. RioCan has also commenced construction of the first phase of this property which will include
61
Michael’s, Winners, HomeSense, and Bouclair.
Strong Development PipelineStrong Development PipelineOkotoks
RioCan has commenced construction at its Okotoks site in Okotoks, Alberta, located approximately 40 kilometres south of Calgary. This 31 acre property is a joint venture development with g y p p y j pTrinity and is currently being developed into a 434,000 square foot new format retail centre. The site is anchored by a 93,000 square foot Home Depot, which owns its own store. Costco, which will also own its own location, has begun construction and expects to open in the third quarter of 2010.
62
Future Growth Drivers
Organic Growth Institutional Relationships
Land Use Intensification
Greenfield DevelopmentAcquisitions
Land Use IntensificationLand Use Intensification
• Capitalize on trend in Canada’s six high growth markets towards “densifying” growth markets towards densifying existing urban locations, driven by:
• Prohibitive costs of expanding infrastructure beyond urban boundariesbeyond urban boundaries
• Environmental concerns • Maximizing use of mass transitMaximizing use of mass transit• Generate high yields as land is already
owned
64
Yonge Eglinton CentreToronto OntarioToronto, Ontario
• One of RioCan’s largest acquisitions at $223 million (acquired in January 2007)o (acqu ed Ja ua y 00 )
– 750,126 sq. ft. of office area and 264,391 sq. ft. of retail area
• RioCan has launched a thorough revitalization and expansion plan that will capitalize on the area’s residential pintensification
– Improvements to parking increased revenues by $500,000
– 46,000 sq. ft. of new retail, and a connection to the office towers and i / t th f d t d ingress/egress to the food court and subway
– A combined 12-storey, 210,000 sq. ft. expansion of the office towers
– received Toronto City Council approval for received Toronto City Council approval for its development plans and is currently submitting plans for site plan approval, and subject to receipt of all approvals, it is expected that construction can begin in 2011
Ri C ’ l i d it l i t
65
• RioCan’s leasing and capital improvement efforts have resulted in significant increases in NOI and occupancy
Creating New Cash Flow Sources RioCan Yonge Eglinton CentreRioCan Yonge Eglinton Centre
66
Creating New Cash Flow Sources RioCan Yonge Eglinton Centre – Proposed Retail AdditionRioCan Yonge Eglinton Centre – Proposed Retail Addition
67
Creating New Cash Flow Sources RioCan Yonge Eglinton Centre – Proposed Vertical AdditionRioCan Yonge Eglinton Centre – Proposed Vertical Addition
Potential to add 210,000 square feet of office space
68
Potential to add 210,000 square feet of office space
Urban 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
• 1717 Avenue Road, Toronto
Assembled 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 AvenueThe block was made up of four, one storey, properties, the largest being 21,000 sq. ft. strip centre anchored by an LCBO and BlockbusterIdeal property for redevelopment into a
i d f ili i k i i h h dmixed-use facility, in keeping with the trend of urban intensificationResidential air rights sold to Tribute Communities, who are developing this mixed-use propertyRioCan REIT retained o nership of theRioCan REIT retained ownership of the retail portion and shares in a portion of the profits created on the sale of the condominiumsThe residential component is 89% soldThe retail component is 90% leased
69
The retail component is 90% leased
Urban IntensificationQueen & Portland Toronto ONQueen & Portland, Toronto, ON
• One acre parking lot acquired in January 2006
S f Q S• Southwest corner of Queen and Portland Streets, occupying the entire length of the block
• Ideal property for redevelopment into a mixed-use facility, in keeping with the trend of urban intensification
• Development includes retail footprint - Loblaws occupying the bulk of the ground floor and all of the second floor, with a flagship Joe Fresh store and a Loblaws supermarket, while Winners will be occupying the third floor
• Total retail space is 92,000 sq ft over three levels - 100% leased
• Five-storey residential condominium, above the retail, unaffected by change – 85% sold
• 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
70
Tillicum CentreVictoria BCVictoria, BC
• Acquired in July 2002, expansion initiated in 2004
• 62,000 sq. ft. addition anchored 62,000 sq. ft. addition anchored by introduction of two marquee tenants
• Fabricland relocated to a larger store and TD Bank also took occupancy during phase 2
• Despite various construction challenges owing to site’s geography, RioCan’s development team was able to development team was able to deliver on schedule and within budget
• Mixed-use expansion scheduled for commencement in 2009, ,and will feature 294,000 sq. ft.
• In addition to improving tenant quality and aesthetics, the
t i t t (“ROI”) return on investment (“ROI”) since acquisition has increased by more than 100 bps71
Future Growth Drivers
Organic Growth Institutional Relationships
Land Use Intensification
Greenfield DevelopmentAcquisitions
Institutional RelationshipsInstitutional Relationships
• Through the years RioCan has developed strong institutional relationshipsstrong institutional relationships
• Leverage RioCan’s capital to enhance returns and increase scale of investments
• Generate additional revenue streams – Property and asset management fees
73
Institutional RelationshipsInstitutional Relationships
Strong PartnershipsPartner Type
of PartnerTotal Property
GLA (sf)Partner
GLA (sf)o a t e G (s ) G (s )
Cedar Public 2,717,091 543,418
Inland Western Public 352,383 70,477
Kimco Public 8,885,608 4,442,804
CPPIB Institutional 1,793,971 896,986
Trinity Private 2 174 530 812 355Trinity Private 2,174,530 812,355
Kimco/Trinity Public/Private 331,283 220,855
Kimco/Fieldgate Public/Private 28,222 23,848
RRVLP (TIAA-CREF, OMERS) Public / Institutional 382,291 324,947
Sun Life Institutional 758,597 499,585
CMHC Private 370 454 185 227CMHC Private 370,454 185,227
Devimco – Quebec Hydro Private 1,128,134 564,067
Effort Properties Private 147,234 73,617
Bayfield Private 1,357,645 950,352
The Wynn Group Private 98,580 73,935
Fi t G lf P i t 386 718 193 359First Gulf Private 386,718 193,359
Tawse Private 244,409 122,205
Trinity / Shenkman / Tamuz Private 378,055 158,608
Frum Development Group Private 276,330 138,165
Dale-Vest Marketvest Private 66,720 40,352
74
Total 21,878,255 10,335,162
In addition to RioKim JV and CPPIB strategic alliance, RioCan REIT maintains numerous other partnerships where partners rely on RioCan’s expertise in leasing, property management and development
Institutional RelationshipsInstitutional RelationshipsRioKim Joint Venture
Ri C REIT d Ki R lt
Brentwood Village
• 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 50% interest in RioKim joint venture
• Invested over $1.2 billion in 45 properties since 2001 comprising over 9.3 million sq. ft. of GLA
Tillicum Centreof GLA
• In September 2008, created a second joint venture partnership with Kimco (RioKim II) with the acquisition of a 10 properties portfolio in central and eastern pCanada
• RioCan provides asset and property management, development and leasing services to RioKim
75
Institutional RelationshipsInstitutional RelationshipsCPPIB Joint Venture
I O t b 2004 Ri C REIT d
RioCan Centre Burloak - Before
• In October 2004, RioCan REIT and CPPIB announced an agreement to acquire premier regional power centres in Canada on a 50/50 basis as a core, long-term holding strategystrategy
• Today, RioCan and CPPIB are partners in over 1.3 million sq. ft. of completed regional power centres and approximately 3.0 million sq. ft. of planned development projects
RioCan Centre Burloak - Afterof planned development projects
• RioCan provides property and asset management, leasing, development and construction management services for the co-ownershipp
76
Institutional RelationshipsInstitutional RelationshipsCPPIB Strategic AllianceGrandview Corners• Acq i ed in Decembe 2009 on a • Acquired in December 2009 on a
50-50 basis• Unique asset located in the
Greater Vancouver Area market of Surrey
• Diverse and strong tenant mixDiverse and strong tenant mix• 42 acre site • 529,827 sq. ft. anchored by a
217,278 sq. ft. Walmart• Other major tenants include The
Brick, Future Shop, Indigo
St. Clair & Weston• RioCan has completed the rezoning for its St.
Clair and Weston Road development with Trinity and Canada Pension Plan Investment Board (“CPPIB”) in Toronto Board ( CPPIB ) in Toronto.
• Construction is anticipated to commence in the fourth quarter of 2010.
• The 19 acre site is ultimately expected to feature a 570,000 square foot property situated within a unique two storey retail. f t
77
format
Institutional RelationshipsInstitutional RelationshipsCPPIB Strategic AllianceIn September 2008 the Trust and Trinity sold a 50% non-managing interest in two developments to CPP Investment Board. The two developments are Jacksonport located in Calgary, Alberta and St. Clair Avenue and Weston Road located in Toronto, Ontario. Additionally, in October 2008 RioCan and Trinity sold a 37.5% non-managing ownership interest in East Hills phases I and III a development featuring approximately 115 acres in Calgary Alberta to CPP interest in East Hills, phases I and III, a development featuring approximately 115 acres in Calgary, Alberta, to CPP Investment Board.
• RioCan has successfully completed the rezoning requirements for its E t Hill d l t ith T i it
East Hills
East Hills development with Trinity, CPPIB and the original vendor in Calgary, Alberta.
• The East Hills development consists of three phases. Phase I and III comprise approximately 111 acres
Jacksonport• Jacksonport, located at 36th Street NE and
Country Hills Boulevard NE in Calgary is a
and Phase II comprises approximately 37 acres.
Country Hills Boulevard NE in Calgary, is a 105 acre development site.
• Will be developed into a new format retail centre
• Upon completion, the development is expected to feature approximately 1.1 million square feet of retail space
78
square feet of retail space.
SummarySummary
• Canada’s largest REIT• Seasoned management team• Seasoned management team• Excellent portfolio, solid tenants and
diversified• Focus on urban markets• 86% of annualized rental revenue from
national tenantsnational tenants• Conservative debt profile and access to
capital • Strong institutional relationships• Solid development pipeline
79
Appendix App
Senior Management
Experienced Management TeamExperienced Management Team• Extensive experience in Canadian real estate market
– Multi-disciplinary team with experience across a wide spectrum of real estate classes
EDWARD SONSHINE, Q.CEDWARD 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 $8 billion • 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 y ,
Income Fund and Chair of Mount Sinai Hospital FoundationFREDERIC WAKSFREDERIC 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 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 took on the position of Senior Vice President. From 1993 to 1995, acted as Vice-President, Retail Leasing for Confederation Life.
RAGS DAVLOOR CARAGS DAVLOOR CA – Senior Vice President & Chief Financial Officer RioCan REITRAGS DAVLOOR, CARAGS 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 p io to coming to RioCan at TD Sec ities as a Vice P esident 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.81
Appendix Bpp
Supplemental Information Package
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AFTER THE STORM
REALESTATEINVESTMENTTRUSTQ3
THIRD QUARTER 2010Supplemental Information PackageTable of Contents
Real Estate Portfolio Fact Sheet.........................................1
FINANCIAL INFORMATION
Operational and Financial Highlights..................................2Consolidated Balance Sheets..............................................3Consolidated Statement of Earnings...................................4Consolidated Statement of Cash Flows.............................. 5Results of Operations..........................................................6Summary of Consolidated Debt...........................................7
INVESTMENT ACTIVITY
Acquisitions.........................................................................8Greenfield Development Projects................................11–15Expansion and Redevelopment Projects...........................16
REAL ESTATE INFORMATION
Leasing Activity..................................................................18Renewal Activity.................................................................19Property Ownership by Geographic Area..........................23Portfolio Geographic Diversification ................................. 24Occupancy..........................................................................24Economic Versus Committed Occupancy..........................24Top 50 Tenants .................................................................. 25Top 10 Tenants – Canada...................................................26Top 10 Tenants – US..........................................................26Lease Expiries by Geographic Area...................................27
GENERAL
General Information..........................................................28
REAL ESTATE PORTFOLIO FACT SHEETFact Sheet as at Sept 30, 2010
Canadian Properties US Properties GrandTotalTotal Net Leaseable Area ("NLA") (sq. ft.): Retail Office Total Retail Office Total
Income Producing Properties 34,671,228 1,583,434 36,254,662 2,403,823 51,758 2,455,581 38,710,243Properties Under Development 2,438,232 – 2,438,232 – – – 2,438,232Total 37,109,460 1,583,434 38,692,894 2,403,823 51,758 2,455,581 41,148,475
Number of Tenancies 6,400
OccupancyCanadian Properties American Properties Total
Retail 97.2% 98.4% 97.3%Office 92.2% 85.5% 91.9%Total: 97.0% 98.1% 97.1%
Geographic Diversification
Number of properties
Percentageof annualized
rental revenue
Incomeproducingproperties
Propertiesunder
development TotalOntario 56.3% 155 7 162Quebec 16.5% 42 42Alberta 11.6% 26 3 29British Columbia 6.1% 14 14New Brunswick 1.9% 6 1 7Saskatchewan 0.5% 1 1Manitoba 0.7% 2 2Prince Edward Island 0.4% 1 1Newfoundland 0.3% 2 2Nova Scotia 0.1% 1 1USA 5.6% 18 18
100.0% 268 11 279
Anchor and National Tenants (including US)
Percentage of annualized rental revenue Percentage of total NLAAnchor and National Tenants 86.0% 83.9%
Top Ten Sources of Revenue by Tenant (including US)
Ranking TenantPercentage of
annualized rental revenueWeighted average remaining
lease term (yrs)1. Famous Players/Cineplex/Galaxy Cinemas 4.7% 12.62. Metro/A&P/Super C/Loeb/Food Basics 4.6% 8.63. Walmart 4.4% 13.24. Canadian Tire/PartSource/Mark's Work Wearhouse 3.8% 11.65. Zellers/The Bay/Home Outfitters 3.3% 9.16. Winners/HomeSense 2.8% 4.87. Loblaws/No Frills/Fortinos/Zehrs/Maxi 2.7% 5.78. Staples/Business Depot 2.2% 7.49. Reitmans/Penningtons/Smart Set/Addition-Elle/Thyme Maternity 1.9% 5.1
10. Shoppers Drug Mart 1.7% 10.4Total 32.1%
Lease Expiries – Canada
Lease expiries (NLA)
Retail Class Total NLA 2010 2011 2012 2013 2014New Format Retail 17,635,189 220,178 1,185,950 1,215,433 1,444,571 1,500,515
31.6% 1.2% 6.7% 6.9% 8.2% 8.5%Grocery Anchored Centre 7,570,736 170,447 966,236 1,003,289 559,559 1,229,087
51.9% 2.3% 12.8% 13.3% 7.4% 16.2%Enclosed Shopping Centre 6,297,125 236,555 674,690 631,282 675,400 721,438
46.7% 3.8% 10.7% 10.0% 10.7% 11.5%Non-Grocery Anchored Centre 1,873,343 40,077 87,452 118,952 201,054 137,723
31.2% 2.1% 4.7% 6.3% 10.7% 7.4%Urban Retail 1,294,833 9,171 58,215 136,161 165,060 314,474
52.8% 0.7% 4.5% 10.5% 12.7% 24.3%Office 1,583,434 90,495 259,876 93,739 143,163 102,111
43.5% 5.7% 16.4% 5.9% 9.0% 6.4%Total 36,254,662 766,923 3,232,419 3,198,856 3,188,807 4,005,348
2.1% 8.9% 8.8% 8.8% 11.0%Average net rent per square foot $ 14.86 $ 15.49 $ 14.91 $ 15.63 $ 16.28 $ 15.58
Lease Expiries – US
Lease expiries (NLA)
Retail Class Total NLA 2010 2011 2012 2013 2014New Format Retail 1,354,257 1,072 5,886 23,394 62,145 19,744
8.3% 0.1% 0.4% 1.7% 4.6% 1.5%Grocery Anchored Centre 1,049,566 45,089 71,780 91,724 45,489 93,079
40.9% 4.3% 14.7% 8.7% 4.3% 8.9%Enclosed Shopping Centre 0 0 0 0 0 0
0.0% 0.0% 0.0% 0.0% 0.0%Non-Grocery Anchored Centre 0 0 0 0 0 0
0.0% 0.0% 0.0% 0.0% 0.0%Urban Retail 0 0 0 0 0 0
0.0% 0.0% 0.0% 0.0% 0.0%Office 51,758 4,645 11,159 4,329 9,932 3,654
65.1% 9.0% 21.6% 8.4% 19.2% 7.1%Total 2,455,581 50,806 88,825 119,447 117,566 116,477
2.1% 3.6% 4.8% 4.8% 4.8%Average net rent per square foot $ 17.10 $ 21.61 $ 19.64 $ 17.25 $ 15.01 $ 16.73
1 Third Quarter Ended September 30, 2010 Supplemental Information Package
OPERATIONAL AND FINANCIAL HIGHLIGHTSOperational Information
(thousands of square feet, except other data)
As at September 30, 2010 June 30, 2010 December 31,2009
September 30,2009 **US Canada Total US Canada Total
Number of properties:Income properties 18 250 268 8 246 254 243 234Under development (i) – 11 11 – 11 11 12 13
Portfolio occupancy 98.1% 97.0% 97.1% 96.2% 97.0% 97.0% 97.4% 97.3%Net leasable area (“NLA”) at
100%* 4,002 55,193 59,185 1,425 54,549 55,974 54,301 52,102Net leasable area (“NLA”) at
RioCan’s interest:Total portfolio 2,455 36,255 38,710 1,039 35,476 36,515 35,103 33,920Average in place rent $ 17.10 $ 14.86 $ 14.99 $ 18.02 $ 14.97 15.06 $ 14.40 $ 14.33Completed Greenfield
Development and land useintensification activitiesduring the quarter ended – 9 9 – 10 10 39 230
Acquired during the quarterended 1,417 838 2,255 420 245 665 1,194 231
Greenfield Developmentpipeline upon completion:
Total project NLA – 8,446 8,446 – 8,493 8,493 8,480 8,623RioCan’s interest of project
NLA – 3,397 3,397 – 3,289 3,289 2,956 3,044Percentage of portfolio rental
revenue derived from:Six Canadian high growth
markets (annualized) (ii) n/a 61.7% 61.7% n/a 63.8% 63.8% 66.3% 66.4%US market (annualized) 5.6% n/a 5.6% 3.1% n/a 3.1% n/a n/aNational and anchor tenants
(annualized) 86.0% 85.5% 84.5% 84.2%Largest tenant (annualized) 18.3% 4.9% 4.7% 33.3% 5.0% 4.9% 5.0% 5.1%
Number of employees(excluding seasonal) 585 591 592 574
(i) The number of properties under development excludes those properties with phased development where tenancies have already commencedoperations. These properties are included in the number of income properties.
(ii) See discussion in “About RioCan”.* Includes retail owned anchors** US portfolio information is only applicable beginning in the fourth quarter of 2009.
Financial Information
Three months ended September 30, Nine months ended September 30,2010 2009 2010 2009
Total revenue $ 216,643 $ 189,022 $ 652,243 $ 567,448Net earnings $ 39,172 $ 28,440 $ 123,553 $ 86,321Net earnings per Unit – basic $ 0.16 $ 0.12 $ 0.51 $ 0.38Net earnings per Unit – diluted $ 0.16 $ 0.12 $ 0.50 $ 0.38FFO (i) $ 89,331 $ 71,600 $ 268,372 $ 210,075FFO per Unit $ 0.36 $ 0.30 $ 1.10 $ 0.92Distributions to unitholders $ 85,220 $ 81,036 $ 253,043 $ 236,284Distributions to unitholders per Unit $ 0.345 $ 0.345 $ 1.035 $ 1.035Distributions per Unit (annualized) $ 1.38 $ 1.38 $ 1.38 $ 1.38Distributions to unitholders net of distribution
reinvestment plan $ 71,574 $ 66,592 $ 211,988 $ 194,128Distributions to unitholders net of distribution
reinvestment plan per Unit $ 0.29 $ 0.28 $ 0.87 $ 0.85Unit issue proceeds under distribution reinvestment
plan $ 13,646 $ 14,444 $ 41,055 $ 42,156Distribution reinvestment plan (“DRIP”)
participation rate $ 16.0% 17.8% 16.2% 17.8%
(i) A non generally accepted accounting principle (“GAAP”) measurement for which a reconciliation to net earnings can be found in RioCan’sdiscussion under “FFO”.
2 Third Quarter Ended September 30, 2010 Supplemental Information Package
CONSOLIDATED BALANCE SHEETS(unaudited – in thousands)
As at September 30,2010
As at December 31,2009
ASSETS
Real estate investmentsIncome properties $ 5,683,339 $ 5,042,151Properties under development 360,522 263,293Investments 59,236 50,219Properties held for resale 9,433 8,730Mortgages and loans receivable 208,283 235,683
6,320,813 5,600,076Receivables and other assets 147,593 114,633Cash and equivalents 32,371 146,842
$ 6,500,777 $ 5,861,551
LIABILITIESMortgages payable and lines of credit $ 3,090,721 $ 2,669,054Debentures payable 1,097,899 994,167Accounts payable and other liabilities 218,345 192,644Future income taxes 143,987 140,158
4,550,952 3,996,023NON-CONTROLLING INTEREST 37,898 8,443
UNITHOLDERS’ EQUITYUnitholders’ equity 1,911,927 1,857,085
$ 6,500,777 $ 5,861,551
Debt Ratio AnalysisAt September 30, 2010
(unaudited – in thousands of dollars, except percentage amounts)September 30,
2010
Leverage ratio (Note 1) 57.1%% of debt at fixed rates 96.5%% of debt at floating rates 3.5%
Note 1Leverage Ratio CalculationContractual debt
Mortgages payable per balance sheet $ 3,090,721Debentures payable per balance sheet 1,097,899
Add: Unamortized debt financing costs 16,412Less: Unamortized differential between contractual and market interest rates on liabilities
assumed at the acquisition of properties (5,272)
$ 4,199,760
Aggregate assetsTotal assets per balance sheet $ 6,500,777
Add: Accumulated amortization of income properties 849,580
$ 7,350,357
Leverage Ratio (Defined by RioCan's Declaration of Trust)$ 4,199,760 / $ 7,350,357 57.14%
Additional debt permitted to be at 60% leverage(($7,350,357 X 60%) – $4,199,760) / (1 – 60%) $ 526,136
Additional debt permitted to be at 59% leverage(($7,350,357 X 59%) – $4,199,760) / (1 – 59%) $ 334,026
The accompanying notes are an integral part of the consolidated financial statements
3 Third Quarter Ended September 30, 2010 Supplemental Information Package
CONSOLIDATED STATEMENTS OF EARNINGS(unaudited – in thousands, except per unit amounts)
For the three months ended September 30, For the nine months ended September 30,2010 2009 2010 2009
Revenue
Rentals $ 205,800 $ 179,928 $ 610,954 $ 542,921Fees and other income 4,410 3,931 12,622 11,223Interest 3,573 4,966 11,603 13,237Gain on properties held for resale 2,860 197 17,064 67
Total revenue 216,643 189,022 652,243 567,448
Expenses
Property operating costs 66,354 62,238 202,432 195,561Interest 53,201 49,616 158,368 142,130General and administrative 6,011 5,464 19,282 18,095Transition costs 1,144 104 2,217 1,587Amortization 45,596 41,260 135,545 123,054
Total expenses 172,306 158,682 517,844 480,427
Earnings before income taxes andnon-controlling interest 44,337 30,340 134,399 87,021
Future income tax expense 4,900 1,900 9,994 700Non-controlling interest 265 – 852 –
Net earnings $ 39,172 $ 28,440 $ 123,553 $ 86,321
Net earnings per unit – basic $ 0.16 $ 0.12 $ 0.51 $ 0.38
Net earnings per unit – diluted $ 0.16 $ 0.12 $ 0.50 $ 0.38
Weighted average number of units
outstanding – basic 246,314 234,806 244,284 227,836
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME(unaudited – in thousands)
For the three months ended September 30, For the nine months ended September 30,2010 2009 2010 2009
Net earnings $ 39,172 $ 28,440 $ 123,553 $ 86,321
Other comprehensive income (loss),
net of tax
Unrealized (loss) gain on interest rateswap agreements (3,657) (443) (2,992) 1,173
Unrealized loss on translation of self-sustaining foreign operations (4,536) – (1,960) –
Unrealized gain (loss) onavailable-for-sale securities 94 – (7,056) –
Reclassification of available-for-salemarketable securities to netearnings upon disposition – 622 – –
Other comprehensive (loss) income (8,099) 179 (12,008) 1,173
Comprehensive income $ 31,073 $ 28,619 $ 111,545 $ 87,494
The accompanying notes are an integral part of the consolidated financial statements
4 Third Quarter Ended September 30, 2010 Supplemental Information Package
CONSOLIDATED STATEMENTS OF CASH FLOWS(unaudited – in thousands, except per unit amounts)
For the three monthsended September 30,
For the nine monthsended September 30,
2010 2009 2010 2009
CASH FLOWS PROVIDED BY (USED IN):Operating activities
Net earnings $ 39,172 $ 28,440 $ 123,553 $ 86,321Items not affecting cashAmortization 46,116 41,626 136,685 124,102Recognition of rents on a straight-line basis (1,544) (1,181) (5,705) (4,074)Unit based compensation expense 634 476 1,592 1,567Amortization of the differential between contractual
and market rents on in-place leases (1,143) (752) (2,940) (2,340)Future income tax expense 4,900 1,900 9,994 700Properties held for resale 2,593 1,141 (1,380) 6,815Acquisition and development of properties held for resale (1,229) (1,585) (2,721) (8,695)Changes in non-cash operating items and other 11,267 (5,773) (9,379) (22,536)Non-controlling interest 265 – 852 –
Cash flows provided by operating activities 101,031 64,292 250,551 181,860
Investing activities
Acquisition of income properties and properties underdevelopment (344,500) (24,532) (560,516) (78,720)
Capital expenditures on income properties (44) (362) (1,903) (1,613)Capital expenditures on properties under development (31,553) (32,845) (59,645) (68,232)Maintenance capital expenditures recoverable from tenants (2,066) (1,207) (5,579) (2,105)Maintenance capital expenditures not recoverable from tenants (1,876) (768) (2,761) (2,179)Tenant installation costs (11,815) (5,445) (26,073) (17,483)Mortgages and loans receivable
Advances (13,591) (7,254) (41,078) (55,847)Repayments 3,815 24,712 54,760 41,001
Investment in available-for-sale securities – 14,567 (19,559) 1,105
Cash flows used in investing activities (401,630) (33,134) (662,354) (184,073)
Financing activities
Mortgages payableBorrowings 245,927 89,780 607,549 385,243Repayments (144,130) (59,730) (338,771) (173,009)Advances drawn against line of credit (3,044) – (3,044) –Issue of debentures payable 102,416 (71) 102,416 178,538Repayment of debentures payable – (79,681) – (134,681)Distributions paid (84,276) (80,926) (251,962) (234,676)Distributions paid to non controlling interest (6,808) – (6,808) –Units issued under distribution reinvestment plan 13,895 14,757 41,799 43,170Units repurchased under normal course issuer bid – – – (3,426)Issue of units 143,663 (137) 146,153 143,761
Cash flows provided by (used in) financing activities 267,643 (116,008) 297,332 204,920
Increase (decrease) in cash and equivalents during the period (32,956) (84,850) (114,471) 202,707Cash and equivalents, beginning of period 65,327 298,934 146,842 11,377
Cash and equivalents, end of period $ 32,371 $ 214,084 $ 32,371 $ 214,084
Supplemental cash flow information
Acquisition of real estate investments through assumption ofliabilities and mortgages given by vendors $ 51,936 $ 15,978 $ 157,798 $ 15,978
Acquisition of real estate in settlement of mortgage receivable 14,298 – 23,136 –Mortgages taken back on property dispositions – – – (4,361)Interest paid 62,273 57,159 173,990 154,981Cash equivalents, end of period 1,733 97,987 1,733 97,987Distributions to unitholders per unit 0.345 0.345 1.035 1.035
The accompanying notes are an integral part of the consolidated financial statements
5 Third Quarter Ended September 30, 2010 Supplemental Information Package
RESULTS OF OPERATIONSThe components of RioCan’s consolidated net earnings for each respective period are as follows:
Three months endedSeptember 30, Increase
(decrease)
Nine months endedSeptember 30, Increase
(decrease)(thousands of dollars, except per Unit amounts) 2010 2009 2010 2009
Rental revenue $ 205,800 $ 179,928 14% $ 610,954 $ 542,921 13%Property operating costs 66,354 62,238 7% 202,432 195,561 4%
Net operating income 139,446 117,690 18% 408,522 347,360 18%Fees and other income 4,410 3,931 12% 12,622 11,223 12%Interest income 3,573 4,966 (28%) 11,603 13,237 (12%)Gains on properties held for resale 2,860 197 nm 17,064 67 nm
150,289 126,784 449,811 371,887
Interest expense 53,201 49,616 7% 158,368 142,130 11%General and administrative expense 6,011 5,464 10% 19,282 18,095 7%IFRS and SIFT implementation costs 1,144 39 nm 2,217 230 nmRestructuring costs – 65 nm – 1,357 nmNon-controlling interest 602 – nm 1,572 – nm
FFO (i) 89,331 71,600 25% 268,372 210,075 28%Amortization expense 45,596 41,260 11% 135,545 123,054 10%Future income tax expense 4,900 1,900 nm 9,994 700 nmNon-controlling interest – amortization expense (337) – (720) – nm
Net earnings $ 39,172 $ 28,440 38% $ 123,553 $ 86,321 43%
Net earnings per Unit – basic $ 0.16 $ 0.12 33% $ 0.51 $ 0.38 34%
Net earnings per Unit – diluted 0.16 0.12 33% 0.50 0.38 32%
FFO per Unit (i) $ 0.36 $ 0.30 20% $ 1.10 $ 0.92 20%
“nm” – not meaningful(i) Refer to the discussion under FFO.
NET OPERATING INCOMEConsolidated NOI for the three and nine months ended September 30, 2010 and 2009 is as follows:
Three months endedSeptember 30, Increase
(decrease)
Nine months endedSeptember 30, Increase
(decrease)(thousands of dollars) 2010 2009 2010 2009
Base rent $ 135,515 $ 117,820 15% $ 397,741 $ 350,538 13%Percentage rent 821 965 (15%) 2,282 2,357 (3%)Rents subject to tenants’ sales thresholds 1,316 1,482 (11%) 4,067 4,430 (8%)Property taxes and operating cost recoveries 63,444 59,430 7% 194,486 184,551 5%
201,096 179,697 598,576 541,876Lease cancellation fees 4,704 231 nm 12,378 1,045 nm
Rental revenue 205,800 179,928 14% 610,954 542,921 13%
Recoverable property taxes and operating costs 64,580 59,369 9% 198,121 185,927 7%Non-recoverable property operating and site
administration costs 1,774 2,869 (38%) 4,311 9,634 (55%)
Property operating costs 66,354 62,238 7% 202,432 195,561 4%
NOI $ 139,446 $ 117,690 18% $ 408,522 $ 347,360 18%
NOI as a percentage of rental revenue(excluding the impact of lease cancellation fees) 67% 65% 2% 66% 64% 2%
“nm” – not meaningful.
6 Third Quarter Ended September 30, 2010 Supplemental Information Package
SUMMARY OF CONSOLIDATED DEBTAs at September 30, 2010 and December 31, 2009, RioCan’s capital structure was as follows:
(thousands of dollars, except percentage amounts)September 30,
2010December 31,
2009Increase
(decrease)
Capital:Mortgages payable $ 3,090,721 $ 2,669,054 $ 421,667Debentures payable 1,097,899 994,167 103,732Unitholders’ equity 1,911,927 1,857,085 54,842
Total capital $ 6,100,547 $ 5,520,306 $ 580,241
Debt to Aggregate Assets ratio 57.1% 55.6% 1.5%
CONTRACTUAL DEBT REPAYMENT
Contractual
Principal maturities
(thousands of dollars, exceptpercentage amounts)As at September 30, 2010
Scheduledprincipal
amortizationMortgages
payable
Weightedaverageinterest
rateDebentures
payable
Weightedaverageinterest
rate Total
Weightedaverageinterest
rate
Year ending December 31:2010 (i) $ 17,537 $ 13,455 5.82% $ – – $ 30,982 5.82%
2011 72,294 160,008 5.78% 200,000 4.91% 432,302 5.30%2012 71,366 236,866 6.01% 220,000 5.25% 528,232 5.65%2013 66,425 413,513 5.49% 150,000 5.23% 629,938 5.42%2014 56,707 424,782 5.75% 180,000 8.33% 661,489 6.46%2015 45,174 646,025 5.01% 253,150 5.02% 944,349 5.01%
Thereafter 89,633 782,835 5.79% 100,000 5.95% 972,468 5.81%
$ 419,136 $ 2,677,474 $ 1,103,150 $ 4,199,760
(i) Amounts pertain to the remaining three months of 2010
Interest coverage and debt service coverage ratios are as follows:
Interest Coverage and Debt Service Coverage Ratios
Rolling 12 month Analysisfor the period ended (i) (ii)
Q3 2010 AnnualizedSeptember 30,
2010June 30,
2010September 30,
2009
Interest coverage ratio 2.48 2.42 2.36 2.38Debt service coverage ratio 1.92 1.87 1.82 1.82
(i) Interest coverage defined as: GAAP net earnings for a rolling twelve month period, before net interest expense, income taxes and incomeproperty amortization (including provisions for impairment) divided by total interest expense (including interest that has been capitalized).
(ii) Debt service coverage defined as: GAAP net earnings for a rolling twelve month period, before net interest expense, income taxes and incomeproperty amortization (including provisions for impairment) divided by total interest expense and scheduled mortgage principal amortization(including interest that has been capitalized).
7 Third Quarter Ended September 30, 2010 Supplemental Information Package
ACQUISITIONS DURING 2010
During the three months ended September 30, 2010, RioCan completed total acquisitions of $ 372 million, representing RioCan’sproportionate share of the purchase price, ($ 427.7 million, representing 100% of the purchase price and including closing costs)comprised of approximately 2.3 million additional square feet.
During the nine months ended September 30, 2010, RioCan completed total acquisitions of $ 663 million, representing RioCan’sproportionate share of the purchase price, ($ 752.3 million, representing 100% of the purchase price and including closing costs)comprised of approximately 3.7 million additional square feet.
Property name and locationCapitalization
rate
RioCan’spurchase
price (i)(‘000s)
NLA (insqft) at
RioCan’sinterest
Assetclass (ii)
YearBuilt
%Leased
WeightedAverageRemainingLeaseTerm(years) (iii)
Largesttenant(s)and NLA
RioCan’sownership
interest
CANADA
Gatineau Walmart Centre,Gatineau, QC
6.7% $ 51,239 287,765 NFR 2006 98.5% 12 Walmart (158,801),Golf Town (18,761)
100%
Hamilton Walmart Centre,Hamilton, ON
6.7% 49,436 214,486 NFR 2008/2009
99.3% 11 Walmart (133,555),Dollar Giant (10,118)
100%
Niagara Square,Niagara Falls, ON(Additional 15% interest)
8.4% 7,050 57,343 ESC 1977/1987/2008
83.3% 13 Cineplex (45,853),Winners (31,967),Sport Chek (20,160),Future Shop (20,027)
30%
RioCan Centre Gravenhurst,Gravenhurst, ON (Additional66.67% interest)
7.5% 19,508 99,395 NFR 2008/2009
100% 18 Canadian Tire (76,403),Sobeys (41,360)
100%
Vaudreuil Shopping Centre,Vaudreuil-Dorion, QC
7.6% 23,144 118,330 NFR 2006/2007
100% 9 Super C*, Canadian Tire*,Bureau en Gros (20,000),Golf Town (15,000)
100%
Wharncliffe Centre,London, ON
7.0% 12,687 60,711 GA 1991 100% 7 No Frills (40,140) 100%
Total Canada 7.0% 163,064 838,030
UNITED STATES
Inland Western Portfolio Acquisitions:
Bear Creek Shopping Center,Houston, TX
7.7% 12,987 70,330 GA 2001 100% 5 HEB Supermarket(61,805), GNC (1,300),Papa John’s (1,500)
80%
Cypress Mill Plaza, Houston, TX 7.7% 12,228 93,125 NFR 2005 100% 7 Walmart*, Home Depot*,Hobby Lobby (59,898),Palais Royale (24,000),Dollar Tree (9,998)
80%
New Forest Crossing, Houston,TX
7.7% 13,683 118,452 NFR 2005 100% 4 Lowe’s*, Walmart*, BigLots (34,076), Ross Dressfor Less (30,047),Petsmart (18,975)
80%
7.7% 38,898 281,907
Cedar
Creekview Centre, Warrington,PA
7.6% 21,653 108,869 NFR 2001 100% 7 Target*, Lowe’s*,Genuardi’s Supermarket(Safeway) (48,966), LAFitness (38,000). Bed,Bath & Beyond (25,000)
80%
Monroe Marketplace,Sellinsgrove, PA
7.6% 35,392 272,814 NFR 2008 100% 12 Target*, Giant FoodsSupermarket (127,000),Kohl’s (68,430), Dick’sSporting Goods (51,119),Best Buy (22,504),Michael’s (20,649),PetSmart (18,156),Staples (14,730)
80%
8 Third Quarter Ended September 30, 2010 Supplemental Information Package
Property name andlocation
Capitalizationrate
RioCan’spurchase
price (i)(‘000s)
NLA (insqft) at
RioCan’sinterest
Assetclass (ii)
YearBuilt
%Leased
WeightedAverageRemainingLeaseTerm(years) (iii)
Largesttenant(s)and NLA
RioCan’sownership
interest
New River Valley Centre,Christiansburg, VA
7.6% 22,751 131,730 NFR 2007 100% 7 Best Buy (30,041),Ross Dress for Less (30,037),Bed Bath & Beyond (24,152),Staples (20,443),PetSmart (17,878),Old Navy (15,413)
80%
Pitney Road Plaza,Lancaster, PA
7.6% 9,127 36,732 NFR 2009 100% 9 Costco*, Lowe’s*,Best Buy (45,915)
80%
Sunrise Plaza,Forked River, NJ
7.6% 21,766 203,168 NFR 2007 97.3% 22 Home Depot (130,601),Kohl’s (96,171),Staples (20,388)
80%
Montville CommonsShopping Center,Montville, CT
7.7% 15,844 94,333 GA 2007 100% 10 Home Depot*,Stop & Shop (63,000)
80%
Exeter Commons,Reading, PA
7.8% 43,630 287,257 NFR 2009 100% 15 Target*, Lowe’s (171,069),Giant Foods Supermarket(81,715), Staples (18,008)
80%
7.7% 170,163 1,134,904
Total US 7.7% 209,061 1,416,811
Third Quarter 2010
Acquisitions
7.4% 372,125 2,254,841
CANADA
Halton HillsGeorgetown, ON
7.2% 10,275 75,366 GA 1979 100% 9 Food Basics (36,002),Dollarama (10,970),TD Bank (10,000),Bulk Barn (5,000)
100%
Clappison CrossingFlamborough, ON(Additional 50% interest)
7.3% 20,554 133,628 NFR 2007 100% 18 Walmart (151,448),Rona (98,546),LCBO (11,882),Bank of Nova Scotia (5,380)
100%
Corbett CentreFredericton, NB(Additional 37.5% interest)
7.3% 8,728 36,515 NFR 2008 100% 9 Home Depot*, Costco*,Michael’s (17,438),Winners (29,948), Dollarama(10,301), PetSmart (9,589)
100%
Total Canada 7.2% 39,557 245,509
UNITED STATES
Cedar “Initial Portfolio” Acquisitions:
Loyal PlazaWilliamsport, PA
8.5% 22,963 235,060 GA 1969/2000
100% 22 Giant Food Supermarkets(66,935),K-Mart (102,558),Staples(20,555),Eckerd Drugs (10,908)
80%
Stop & Shop PlazaBridgeport, CT
8.5% 7,304 43,609 GA 2006 100% 20 Stop & Shop (54,510) 80%
Shaw’s PlazaRaynham, MA
8.5% 16,572 141,288 GA 1984 93.7% 22 Shaw’s Supermarkets(60,748),Marshalls (25,752),CVS (10,125)
80%
Total US 8.5% 46,839 419,957
Second Quarter 2010
Acquisitions
7.9% 86,396 665,466
9 Third Quarter Ended September 30, 2010 Supplemental Information Package
Property name andlocation
Capitalizationrate
RioCan’spurchase
price (i)(‘000s)
NLA (insqft) at
RioCan’sinterest
Assetclass (ii)
YearBuilt
%Leased
WeightedAverageRemainingLeaseTerm(years) (iii)
Largesttenant(s)and NLA
RioCan’sownership
interest
CANADA
Portfolio Acquisition:
Market at Citadel VillageSt. Albert, AB
7.5% 17,413 51,029 NGA 2007/2008
97.4% 10 Shoppers Drug Mart (17,020) 100%
Summerwood CentreSherwood Park, AB
7.5% 29,524 83,911 GA 2008/2009
100% 16 Save-On-Foods (41,265),Shoppers Drug Mart (16,911)
100%
Timberlea LandingFort McMurray, AB
8.2% 63,063 105,467 MIX 2008 100% 13 ATB, Regional Municipality ofWood Buffalo
100%
7.9% 110,000 240,407
Chapman Mills MarketplaceOttawa, ON (Additional12.5% interest)
6.8% 11,884 53,979 NFR 100% 8 Walmart (130,000),Galaxy Cinemas (26,905),Winners (26,240),Staples (25,890),Loblaws* (115,000)
75%
Total Canada 7.8% 121,884 294,386
UNITED STATES
Cedar “Initial Portfolio” Acquisitions:
Franklin Village PlazaFranklin, MA
8.5% 45,995 244,974 GA/Office 1987/2005
87.2% 14 Stop & Shop (75,000),Marshalls (26,890),Bath & Body Works (2,500),Bank of America (2,550)
80%
Columbus CrossingPhiladelphia, PA
8.5% 20,645 113,734 GA 2001 100% 14 Super Fresh (61,506),Old Navy (25,000),AC Moore (22,000)
80%
8.5% 66,640 358,708
Town Square PlazaReading, PA
8.3% 16,064 102,109 NFR 2008 100% 16 Giant Food Supermarkets(73,727),AC Moore (21,600)
80%
Total US 8.5% 82,704 460,817
First Quarter 2010
Acquisitions
8.1% $204,588 755,203
YTD 2010 Acquisitions:
Canada 7.3% 324,505 1,377,925
US 8.0% 338,604 2,297,585
YTD 2010 Acquisitions 7.7% 663,109 3,675,510
(i) Excludes closing costs and other acquisition related costs.(ii) “GA” – Grocery Anchored; “NGA” – Non Grocery Anchored; “MIX” – Mixed Use; “NFR” – New Format Retail; “ESC” – Enclosed Shopping
Centre(iii) Weighted average based on gross rental revenue.* – Shadow Anchor
10 Third Quarter Ended September 30, 2010 Supplemental Information Package
GREENFIELD DEVELOPMENT PROJECTSHighlights of RioCan’s development pipeline as at September 30, 2010, are as follows:As at September 30, 2010
Estimated square feet upon completion of the development project
RioCan’s interest
(thousands of square feet, except percentage amounts)RioCan’s %ownership
Totalestimated
development
Retailerowned
anchors(ii)
RioCan’sand
partners’interests
Incomeproducing
(“IPP”)
Underdevelopment
(“PUD”)
PotentialFuture
Developments(iii)
TotalRioCan
Totalpartner
RioCan owned:Avenue Road, Toronto, ON 100% 21 – 21 – 21 – 21 –RioCan Centre Barrie, Barrie, ON 100% 261 – 261 220 20 21 261 –Clappison’s Crossing, Hamilton, ON 100% 317 – 317 267 44 6 317 –Corbett Centre, Fredericton, NB 100% 474 242 232 100 42 90 232 –Eglinton Avenue & Warden Avenue,
Toronto, ON 100% 169 – 169 116 28 25 169 –RioCan Gravenhurst, Gravenhurst, ON 100% 301 – 301 150 – 151 301 –Queen Street & Portland Street,
Toronto, ON 100% 91 – 91 – 91 – 91 –RioCan Renfrew Centre, Renfrew, ON 100% 210 74 136 53 – 83 136 –
1,844 316 1,528 906 246 376 1,528 –
Co-ownerships:Trinity
Grant Crossing, Ottawa, ON 33.3% 401 128 273 – 57 34 91 182Highway 401 & Thickson Road – Phase I,
Whitby, ON 25% 205 – 205 24 – 26 50 155Lowe’s Centre Orleans, Ottawa, ON 33.3% 397 142 255 19 45 22 86 169Cimarron Shopping Centre, Okotoks, AB 50% 433 244 189 – 39 56 95 94RioCan Centre Vaughan, Vaughan, ON
Ph 2 & 3 (i) 31.25% 300 – 300 – – 94 94 206Stouffville, ON 83.5% 179 – 179 – – 149 149 30
1,915 514 1,401 43 141 381 565 836
CPPIB/TrinityEast Hills, Calgary, AB 37.5% 1,586 – 1,586 – – 595 595 991Jacksonport, Calgary, AB 25% 1,141 427 (iv) 714 – – 179 179 535St. Clair Avenue & Weston Road,
Toronto, ON 25% 570 – 570 – – 142 142 428
3,297 427 2,870 – – 916 916 1,954
OtherWestney Road & Taunton Road, Ajax, ON 20% 173 – 173 9 4 22 35 138Windfield Farms, Oshawa, ON 33.3% 1,217 156 1,061 – – 354 354 707
1,390 156 1,234 9 4 376 389 845
Total Development NLA 8,446 1,413 7,033 958 391 2,049 3,398 3,635
Lands Under Conditional ContractAlberta 370Ontario 971PEI 660
Total Lands Under Conditional Contract 2,001
Total Development Projects 10,447
RioCan is committed to property development and redevelopment opportunities, and is focused on completing the construction ofthe development pipeline underway, on time and on budget, and continuing to make progress on leasing. As a result of the currenteconomic environment, it is expected that the commencement of construction for several of the development projects will bedeferred until economic conditions warrant. Potential anchor tenants are currently more cautious in committing to newdevelopments, which will impact the timing of several developments, as RioCan will not commence construction until it hassecured the requisite leasing commitments and appropriate risk-adjusted returns.Our estimated development project square footage and development costs are subject to change, which may be material, asassumptions regarding, among other items, anchor tenants, land sales to shadow anchors, tenant rents, building sizes, projectcompletion timelines and project costs, are updated periodically based on revised site plans, our cost tendering process andcontinuing tenant negotiations.(i) RioCan purchased Trinity and Strathallen’s interests in Phase 1 of this property in September 2009.(ii) Retailer owned anchors include both completed and sale transactions under contract.(iii) Future development projects will be deferred until economic conditions warrant. RioCan will not commence construction until it has secured
the requisite leasing commitments and appropriate risk-adjusted returns.(iv) Retailer owned anchor contemplated in the site plan (for projection purposes only).
11 Third Quarter Ended September 30, 2010 Supplemental Information Package
As at September 30, 2010Anticipated date of development
completion
(thousands of square feet, except percentage amounts)
RioCan’s%
ownership
Leasingactivity
(i) % leasedCurrent
development
Potentialfuture
developments Anticipated anchors (ii)
RioCan owned:
Avenue Road, Toronto, ON 100% 19 90% Q2 2011 –
RioCan Centre Barrie, Barrie, ON 100% 240 92% Q4 2010 2013 Loblaws, Lowe’s
Clappison’s Crossing, Hamilton, ON 100% 296 93% Q1 2012 2012 Rona, Wal-Mart, Staples
Corbett Centre, Fredericton, NB 100% 108 47% Q3 2011 2012-2013 Home Depot *, Costco *,Winners
Eglinton Avenue & Warden Avenue,Toronto, ON
100% 144 85% Q4 2010 2012 Zellers
RioCan Gravenhurst, Gravenhurst, ON 100% 150 50% – 2012-2013 Canadian Tire, Sobeys
Queen Street & Portland Street, Toronto, ON 100% 91 100% Q3 2011 – Loblaws, Winners
RioCan Renfrew Centre, Renfrew, ON 100% 53 39% – 2012-2013 Loblaws *, Staples
1,101 72%
Co-ownerships:
Trinity
Grant Crossing, Ottawa, ON 33.3% 149 55% 2010-2011 2011-2012 Lowe’s*, Winners
Highway 401 & Thickson Road – Phase I,Whitby, ON
25% 99 48% – 2011-2013 Rona
Lowe’s Centre Orleans, Ottawa, ON 33.3% 178 70% 2010-2011 2011-2012 Lowe’s*, Food Basics
Cimarron Shopping Centre, Okotoks, AB 50% 65 34% Q1 2011 2011-2012 Home Depot *, Costco *,Winners
RioCan Centre Vaughan, Vaughan, ON Ph 2 & 3 31.25% – 0% – 2012-2013
Stouffville, ON 83.5% – 0% – 2012-2013
491 35%
CPPIB/Trinity
East Hills, Calgary, AB 37.5% – – – 2012-2014 (iii) -
Jacksonport, Calgary, AB 25% – – – 2012-2014 (iii) -
St. Clair Avenue & Weston Road, Toronto, ON 25% – – – 2011-2013 (iii) -
– –
Other
Westney Road & Taunton Road, Ajax, ON 20% 65 38% Q2 2011 2012-2013 Sobeys
Windfield Farms, Oshawa, ON 33.3% – – – 2014 (iii) -
65 38%
1,657 24%
RioCan is committed to property development and redevelopment opportunities, and is focused on completing the construction ofthe development pipeline underway, on time and on budget, and continuing to make progress on leasing. As a result of the currenteconomic environment, it is expected that the commencement of construction for several of the development projects will bedeferred until economic conditions warrant. Potential anchor tenants are currently more cautious in committing to newdevelopments, which will impact the timing of several developments, as RioCan will not commence construction until it hassecured the requisite leasing commitments and appropriate risk-adjusted returns.
Our estimated development project square footage and development costs are subject to change, which may be material, asassumptions regarding, among other items, anchor tenants, land sales to shadow anchors, tenant rents, building sizes, projectcompletion timelines and project costs, are updated periodically based on revised site plans, our cost tendering process andcontinuing tenant negotiations.
(i) Leasing activity includes leasing that is conditional on receiving municipal approvals and meeting construction deadlines.(ii) Anchors that are retailer owned are designated with an asterisk (*).(iii) The first phases are expected to be substantially complete by the dates indicated.
12 Third Quarter Ended September 30, 2010 Supplemental Information Package
As at September 30, 2010
Acquisition and development expenditures incurred to dateEstimated remaining construction
expenditures to complete
RioCan’s interest
(thousands of dollars)
RioCan’s%
ownership
Estimatedproject cost
(100%) (i)
Amountincluded
in IPP
Amountincluded in
PUD TotalPartners’
interest TotalRioCan’sinterest
Partners’interest Total
RioCan owned:Avenue Road, Toronto, ON 100% $ 24,431 $ – $ 22,210 $ 22,210 $ – $ 22,210 $ 2,221 $ – $ 2,221RioCan Centre Barrie,
Barrie, ON 100% 38,605 27,632 4,042 31,674 – 31,674 6,931 – 6,931Clappison’s Crossing,
Hamilton, ON 100% 52,209 33,767 8,288 42,055 – 42,055 10,154 – 10,154Corbett Centre,
Fredericton, NB 100% 45,287 18,668 6,122 24,790 – 24,790 20,497 – 20,497Eglinton Avenue & Warden
Avenue, Toronto, ON 100% 44,624 23,270 15,799 39,069 – 39,069 5,556 – 5,556RioCan Gravenhurst,
Gravenhurst, ON 100% 61,036 30,539 8,762 39,301 – 39,301 21,735 – 21,735Queen Street & Portland
Street, Toronto, ON 100% 38,078 (ii) – 27,029 27,029 – 27,029 11,049 – 11,049RioCan Renfrew Centre,
Renfrew, ON 100% 29,198 11,098 3,150 14,248 – 14,248 14,950 – 14,950
333,468 144,974 95,402 240,376 – 240,376 93,093 – 93,093
Co-ownerships:Trinity
Grant Crossing, Ottawa, ON 33.3% 68,699 – 10,682 10,682 21,365 32,047 12,217 24,434 36,651Highway 401 & Thickson
Road – Phase I,Whitby, ON 25% 40,465 4,768 671 5,439 16,318 21,757 4,677 14,031 18,708
Lowe’s Centre Orleans,Ottawa, ON 33.3% 60,131 4,948 7,109 12,057 24,116 36,173 7,987 15,971 23,958
Cimarron Shopping Centre,Okotoks, AB 50% 46,208 – 9,631 9,631 9,630 19,261 13,475 13,472 26,947
RioCan Centre Vaughan,Vaughan, ON Ph 2 & 3 31.25% 60,577 – 6,930 6,930 20,708 27,638 10,293 22,646 32,939
Stouffville, ON 83.5% 41,931 – 20,091 20,091 3,970 24,061 14,921 2,949 17,870
318,011 9,716 55,114 64,830 96,107 160,937 63,570 93,503 157,073
CPPIB/TrinityEast Hills, Calgary, AB 37.5% 339,765 – 21,497 21,497 35,829 57,326 105,916 176,524 282,440Jacksonport, Calgary, AB 25% 183,044 – 13,045 13,045 39,136 52,181 32,715 98,148 130,863St. Clair Avenue & Weston
Road, Toronto, ON 25% 135,622 – 8,088 8,088 24,264 32,352 25,817 77,453 103,270
658,431 – 42,630 42,630 99,229 141,859 164,448 352,125 516,573
OtherWestney Road & Taunton
Road, Ajax, ON 20% 48,115 2,450 2,339 4,789 19,154 23,943 4,834 19,338 24,172Windfield Farms,
Oshawa, ON 33.3% 192,244 – 10,708 10,708 21,416 32,124 53,374 106,746 160,120
240,359 2,450 13,047 15,497 40,570 56,067 58,208 126,084 184,292
$ 1,550,269 $ 157,140 $ 206,193 $ 363,333 $ 235,906 $ 599,239 $ 379,319 $ 571,712 $ 951,031
RioCan is committed to property development and redevelopment opportunities, and is focused on completing the construction ofthe development pipeline underway, on time and on budget, and continuing to make progress on leasing. As a result of the currenteconomic environment, it is expected that the commencement of construction for several of the development projects will bedeferred until economic conditions warrant. Potential anchor tenants are currently more cautious in committing to newdevelopments, which will impact the timing of several developments, as RioCan will not commence construction until it hassecured the requisite leasing commitments and appropriate risk-adjusted returns.
Our estimated development project square footage and development costs are subject to change, which may be material, asassumptions regarding, among other items, anchor tenants, land sales to shadow anchors, tenant rents, building sizes, projectcompletion timelines and project costs, are updated periodically based on revised site plans, our cost tendering process andcontinuing tenant negotiations.
(i) Proceeds from sale to shadow anchors reduce projected cost.(ii) Estimated project cost has been reduced by a $11.5 million lease termination payment in January 2009.
13 Third Quarter Ended September 30, 2010 Supplemental Information Package
As at September 30, 2010Estimated remaining development activity to be funded by RioCan
2010 2011 2012 & Thereafter Future Development
(thousands of dollars)
RioCan’s%
ownershipRioCan’sinterest
Mezzaninefinancing
RioCan’sinterest
Mezzaninefinancing
RioCan’sinterest
Mezzaninefinancing
RioCan’sinterest
Mezzaninefinancing
RioCan owned:
Avenue Road, Toronto, ON 100% $ 834 $ – $ 1,386 $ – $ – $ – $ – $ –RioCan Centre Barrie, Barrie, ON 100% 285 – 62 – 62 – 6,522 –Clappison’s Crossing, Hamilton, ON 100% 1,039 – 7,409 – – – 1,706 –Corbett Centre, Fredericton, NB 100% 334 – 1,289 – 141 – 18,733 –Eglinton Avenue & Warden Avenue,
Toronto, ON 100% 1,764 – 81 – – – 3,709 –RioCan Gravenhurst,
Gravenhurst, ON 100% 118 – 86 – 68 – 21,462 –Queen Street & Portland Street,
Toronto, ON 100% 869 – 10,180 – – – – –RioCan Renfrew Centre,
Renfrew, ON 100% 47 – 192 – 177 – 14,534 –
5,290 – 20,685 – 448 – 66,666 –
Co-ownerships:
TrinityGrant Crossing, Ottawa, ON 33.3% 1,188 2,376 3,883 7,767 491 982 6,654 13,308Highway 401 & Thickson Road –
Phase I, Whitby, ON 25% 2 2 1 1 – – 4,675 4,675Lowe’s Centre Orleans,
Ottawa, ON 33.3% 684 1,367 3,554 7,107 251 502 3,497 6,995Cimarron Shopping Centre,
Okotoks, AB 50% 2,002 1,001 1,028 514 342 171 10,101 5,050RioCan Centre Vaughan,
Vaughan, ON Ph 2 & 3 31.25% 64 – 1,306 – 94 – 8,830 –Stouffville, ON 83.5% 199 39 178 35 178 35 14,366 2,839
4,139 4,785 9,950 15,424 1,356 1,690 48,123 32,867
CPPIB/TrinityEast Hills, Calgary, AB 37.5% 135 67 536 268 990 495 104,254 52,127Jacksonport, Calgary, AB 25% 134 134 262 262 502 502 31,817 31,817St. Clair Avenue & Weston Road,
Toronto, ON 25% 9 9 298 298 287 287 25,224 25,224
278 210 1,096 828 1,779 1,284 161,295 109,168
OtherWestney Road & Taunton Road,
Ajax, ON 20% 182 – 281 – 41 – 4,167 –Windfield Farms, Oshawa, ON 33.3% 416 – 375 – 335 – 52,246 –
598 – 656 – 376 – 56,413 –
$ 10,305 $ 4,995 $ 32,387 $16,252 $3,959 $ 2,974 $ 332,497 $ 142,035
RioCan is committed to property development and redevelopment opportunities, and is focused on completing the construction ofthe development pipeline underway, on time and on budget, and continuing to make progress on leasing. As a result of the currenteconomic environment, it is expected that the commencement of construction for several of the development projects will bedeferred until economic conditions warrant. Potential anchor tenants are currently more cautious in committing to newdevelopments, which will impact the timing of several developments, as RioCan will not commence construction until it hassecured the requisite leasing commitments and appropriate risk-adjusted returns.
Our estimated development project square footage and development costs are subject to change, which may be material, asassumptions regarding, among other items, anchor tenants, land sales to shadow anchors, tenant rents, building sizes, projectcompletion timelines and project costs, are updated periodically based on revised site plans, our cost tendering process andcontinuing tenant negotiations.
14 Third Quarter Ended September 30, 2010 Supplemental Information Package
As at September 30, 2010Development financing
RioCan and partners
Third party RioCan
(thousands of dollars)
RioCan’s%
ownership
Total inplace
financingAdvanced
to date
Remainingto be
advancedRioCan’sinterest
RioCan onbehalf ofpartners
TotalRioCanfunded Partners Total
RioCan owned:
Avenue Road, Toronto, ON 100% $21,000 (i) $ 7,120 $ 13,880 $ – $ – $ – $ – $ –
RioCan Centre Barrie, Barrie, ON 100% – – – 6,931 – 6,931 – 6,931
Clappison’s Crossing, Hamilton, ON 100% – – – 10,154 – 10,154 – 10,154
Corbett Centre, Fredericton, NB 100% – – – 20,497 – 20,497 – 20,497
Eglinton Avenue & Warden Avenue,Toronto, ON 100% – – – 5,556 – 5,556 – 5,556
RioCan Gravenhurst, Gravenhurst, ON 100% – – – 21,735 – 21,735 – 21,735
Queen Street & Portland Street,Toronto, ON 100% 28,000 (ii) 18,177 9,823 1,226 – 1,226 – 1,226
RioCan Renfrew Centre, Renfrew, ON 100% – – – 14,950 – 14,950 – 14,950
49,000 25,297 23,703 81,049 – 81,049 – 81,049
Co-ownerships:
Trinity
Grant Crossing, Ottawa, ON 33.3% – – – 12,218 24,434 36,652 – 36,652
Highway 401 & Thickson Road –Phase I, Whitby, ON 25% – – – 4,677 4,677 9,354 9,354 18,708
Lowe’s Centre Orleans, Ottawa, ON 33.3% – – – 7,987 15,971 23,958 – 23,958
Cimarron Shopping Centre,Okotoks, AB 50% – – – 13,474 6,736 20,210 6,736 26,946
RioCan Centre Vaughan, Vaughan, ONPh 2 & 3 31.25% – – – 10,293 – 10,293 22,646 32,939
Stouffville, ON 83.5% – – – 14,921 2,949 17,870 – 17,870
– – – 63,570 54,767 118,337 38,736 157,073
CPPIB/Trinity
East Hills, Calgary, AB 37.5% – – – 105,916 52,957 158,873 123,567 282,440
Jacksonport, Calgary, AB 25% – – – 32,715 32,716 65,431 65,432 130,863
St. Clair Avenue & Weston Road,Toronto, ON 25% – – – 25,817 25,818 51,635 51,635 103,270
– – – 164,448 111,491 275,939 240,634 516,573
Other
Westney Road & Taunton Road,Ajax, ON 20% – – – 4,834 – 4,834 19,338 24,172
Windfield Farms, Oshawa, ON 33.3% – – – 53,374 – 53,374 106,746 160,120
– – – 58,208 – 58,208 126,084 184,292
$ 49,000 $ 25,297 $ 23,703 $ 367,275 $ 166,258 $ 533,533 $ 405,454 $ 938,987
RioCan is committed to property development and redevelopment opportunities, and is focused on completing the construction ofthe development pipeline underway, on time and on budget, and continuing to make progress on leasing. As a result of the currenteconomic environment, it is expected that the commencement of construction for several of the development projects will bedeferred until economic conditions warrant. Potential anchor tenants are currently more cautious in committing to newdevelopments, which will impact the timing of several developments, as RioCan will not commence construction until it hassecured the requisite leasing commitments and appropriate risk-adjusted returns.
Our estimated development project square footage and development costs are subject to change, which may be material, asassumptions regarding, among other items, anchor tenants, land sales to shadow anchors, tenant rents, building sizes, projectcompletion timelines and project costs, are updated periodically based on revised site plans, our cost tendering process andcontinuing tenant negotiations.
(i) RioCan’s estimated share of the $52M facility.(ii) RioCan’s estimated share of the $52M facility.
15 Third Quarter Ended September 30, 2010 Supplemental Information Package
EXPANSION AND REDEVELOPMENT ACTIVITIESHighlights of RioCan’s expansion and redevelopment projects are as follows:
As at September 30, 2010
Estimated projectcost including land
Developmentexpenditures
to date atRioCan’sinterest
Estimated remainingdevelopment
activity atRioCan’s interest(thousands, except RioCan’s % Project RioCan’s Partners’
percentage amounts) ownership Tenant(s) NLA interest interest Total 2010 2011
RioCan owned:Shoppers World
Brampton,Brampton, ON 100%
Bad Boy, ImperialBuffet, Designer Depot,Bulk Barn 77 $ 26,324 $ – $ 26,324 $ 13,543 $ 450 $ 12,331
Co-ownerships:
404 Town Centre,Newmarket, ON 50% Shoppers Drug Mart 24 2,081 2,081 4,162 296 941 844
101 28,405 2,081 30,486 13,839 1,391 13,175
DEVELOPMENT PROJECTS
Avenue Road
Toronto, Ontario
Construction is well underway onRioCan’s development located at thenortheast corner of Avenue Road andFairlawn Avenue in one of the busiestnodes in the City of Toronto.Comprising over 1.5 acres, the formerretail facility has been demolished andis being redeveloped to accommodate amixed-use building featuring a 5.5storey residential component, alongwith 21,000 square feet of single storeyretail street-front space. The projectwill be co-developed by RioCan andTribute Communities.
Barrie Essa Road
11 Bryne Drive,
Barrie, Ontario
The centre currently consists of a72,000 square foot single-storeyfreestanding Zehrs (Loblaws) store, a142,000 square foot Lowe’s and a 6,000square foot Royal Bank. The centre islocated in one of the busiest areas inBarrie and benefits from excellentvisibility from Highway 400. Uponcompletion, this new format retailcentre will feature an additional 41,000square feet of retail space including a20,000 square foot MountainEquipment Co-Op that will commenceoperations in the fourth quarter of2010.
Cimarron Shopping Centre
Okotoks, Alberta
This 31 acre site is currently beingdeveloped into a 433,000 square footnew format retail centre as a jointventure with Trinity and Tristar. Thesite is anchored by a 93,000 square footHome Depot which owns its own storeand operates as part of the overall site.A 151,000 square foot Costco, whichalso owns its own store, commencedoperations in the third quarter of 2010.RioCan’s ownership interest in theproperty is 50%.
Clappison’s Crossing
Flamborough, Ontario
This site is currently being developedinto a 317,000 square foot new formatretail centre. The site is anchored by a99,000 square foot Rona, whichcommenced operations in the fourthquarter of 2007 and a 151,000 squarefoot Wal-Mart which commencedoperations in the third quarter of 2009.An additional 50,000 square feet ofretail space will be developed at theproperty. RioCan purchased Trinity’sinterest in the property in the secondquarter of 2010.
Corbett Centre Fredericton,
New Brunswick
This 26 acre site, acquired by way of a66-year long-term lease, is currentlybeing developed into a 474,000 squarefoot new format retail centre. The siteis anchored by Home Depot, whichowns its own store and operates as
part of the overall site. A Costco, whichalso owns its own store, willcommence operations in 2011. RioCanpurchased Trinity’s interest in theproperty in the second quarter of 2010.
East Hills
Calgary, Alberta
This 145 acre site is currently beingdeveloped into a 1.6 million square footregional new format retail centre. InOctober 2008, RioCan, Trinity and theoriginal vendor reduced theirownership interests to 37.5%, 12.5%and 12.5% respectively, with CPPIBacquiring a 37.5% non-managinginterest. The site is being developedwith our partner, Trinity.
Eglinton Avenue and Warden Avenue
Toronto, Ontario
Located at the northeast corner ofEglinton Avenue East and WardenAvenue, the site is currently beingdeveloped into a 169,000 square footnew format retail centre anchored by a116,000 square foot Zellers whichcommenced operations in the thirdquarter of 2009. An additional 53,000square feet of retail space will bedeveloped at the property including a23,000 square foot Petsmart and a5,000 square foot TD Bank that arescheduled to commence operations inthe fourth quarter of 2010.
16 Third Quarter Ended September 30, 2010 Supplemental Information Package
DEVELOPMENT PROJECTS (CONT’D)
Grant Crossing
Ottawa, Ontario
This 33 acre site is currently beingdeveloped into a 401,000 square footnew format retail centre as a jointventure with Trinity and ShenkmanCorporation. The site will be anchoredby Lowe’s, which will own its own storeand operate as part of the overall site.Lowe’s will commence operations inlate-2010. RioCan’s ownership interestin the property is 33.3%.
Highway 401 and Thickson Road
Whitby, Ontario
This site is currently being developedinto a 205,000 square foot new formatretail centre as a joint venture withTrinity and The Wynn Group. RioCan’sownership interest in the property is25%. The property is well located witheasy access off Highway 401. The site isanchored by a 99,000 square foot Ronastore, which commenced operations inthe fourth quarter of 2007.
Jacksonport
Calgary, Alberta
Jacksonport, located at 36th Street NEand Country Hills Bouelvard NE inCalgary, is a 105 acre development thatwill consist predominately of newformat retail. Upon completion, thedevelopment is expected to featureapproximately 1.1 million square feetof retail space. A 50% interest in thisproperty was sold to the CPPIB in June2008 and a 25% interest has beenretained by each of Trinity and RioCan.
Lowe’s Centre Orleans
Ottawa, Ontario
This 39 acre site is currently beingdeveloped into a 397,000 square footnew format retail centre as a jointventure with Trinity and ShenkmanCorporation. The site is anchored by a142,000 square foot Lowe’s thatcommenced operations in the fourthquarter of 2009. Lowe’s own its ownstore which operates as part of theoverall site. In addition, a 41,000square foot Empire Theatrescommenced operations in December2009. RioCan’s ownership interest inthe property is 33.3%.
Queen Street and Portland Street
Toronto, Ontario
Construction has begun on a one acresite in downtown Toronto, located in anarea bound by Richmond Street to thesouth, Portland Street to the east, andQueen Street to the north. This site willbe developed into a mixed-use buildingfeaturing a four-storey residentialcomponent as well as approximately91,000 square feet of retail space onthree storeys. Loblaws and Winnerswill anchor the site. The site will bedeveloped with Tribute Communities,which owns the residential component.
RioCan Centre Vaughan
Vaughan, Ontario
This 54 acre site is currently beingdeveloped into a 561,000 square footnew format retail centre that isanchored by a 213,000 square footWal-Mart Supercentre that opened inthe first quarter of 2009. The site isbeing developed with our partners,Trinity and Strathallen CapitalCorporation. RioCan purchased Trinityand Strathallen Capital Corporation’sinterests in phase one of the propertyin September 2009. Phase one of theproject features approximately 261,000square feet and is substantiallycomplete. RioCan’s ownership interestin phase two of the property is 31.25%.
RioCan Gravenhurst Talisman Drive and
Edward Street,
Gravenhurst, Ontario
This 29 acre site is currently beingdeveloped into a 301,000 square footnew format retail centre. The site isanchored by a 76,000 square footCanadian Tire and a 41,000 square footSobeys. RioCan purchased Trinity’s andThe Otis Group of Companies’ interestsin the third quarter of 2010.
RioCan Renfrew Centre O’Brien Road and
Gillan Street,
Renfrew, Ontario
This 14 acre site is currently beingdeveloped into a 210,000 square footretail strip plaza. The site is anchoredby a 74,000 square foot Loblaws (which
owns its own lands) and is expected tobe accompanied by 136,000 square feetof ancillary retail space. Tenantstotalling approximately 53,000 squarefeet commenced operations as atSeptember 2010.
St. Clair Avenue and Weston Road
Toronto, Ontario
The St. Clair and Weston developmentbenefits from a well-established urbannode at the intersection of St. ClairAvenue and Weston Road. The 19 acresite is expected to ultimately featureapproximately 570,000 square feet ofspace. The project concept features aunique urban, two-storey retailprototype that has been successfullyutilized in the United States. A 50%interest in this property was sold to theCPPIB in June 2008 and a 25% interesthas been retained by each of Trinityand RioCan.
Stouffville
Stouffville, Ontario
This 30 acre site is currently beingdeveloped into a 179,000 square footretail centre. The site was originally ajoint venture between RioCan, Trinityand Rice/Fryberg. RioCan purchasedRice/Fryberg’s interest in the site inthe first quarter of 2010. RioCan’sownership interest in the property isnow 83.5%.
Westney Road and Taunton Road
Ajax, Ontario
This site is currently being developedinto a 173,000 square foot new formatretail centre as a joint venture with theSun Life Assurance Company ofCanada. A 46,000 square foot Sobeyswill anchor the property. RioCan’sownership interest in the property is20%.
Windfield Farms
Oshawa, Ontario
This 160 acre site is currently beingdeveloped into a 1.2 million square footregional new format retail centre.RioCan’s ownership interest in theproperty is 33.3%. The site is beingdeveloped with two partners.
17 Third Quarter Ended September 30, 2010 Supplemental Information Package
LEASING ACTIVITYA summary of RioCan’s 2010 and 2009 new leasing on the existing portfolio by property type is as follows:
Canadian Portfolio
New Leasing2010 2010 2010 2010 2009
(in thousands, except per sqft amounts)Year to
dateThird
quarterSecondquarter
Firstquarter
Thirdquarter
Square feet leased:
New format retail 473 108 260 105 189
Grocery anchored centre 327 99 133 95 114
Enclosed shopping centre 227 89 86 52 125
Non-grocery anchored centre 17 15 2 – 35
Urban retail 52 30 13 9 16Office 73 1 13 59 25
Total 1,169 342 507 320 504
Average net rent per square foot:
New format retail $ 18.33 $ 18.05 $ 17.14 $ 21.56 $ 17.93Grocery anchored centre 14.41 13.32 14.64 15.24 13.07
Enclosed shopping centre 13.60 15.51 11.63 13.56 13.58
Non-grocery anchored centre 12.06 11.22 18.57 – 14.01
Urban retail 19.44 17.01 19.71 27.08 22.30Office 11.56 12.50 12.28 11.39 16.50
Total $ 15.85 $ 15.61 $ 15.50 $ 16.66 $ 15.55
United States Portfolio
New Leasing
2010 2010 2010 2010 2009
(in thousands, except per sqft amounts)Year to
dateThird
quarterSecondquarter
Firstquarter
Thirdquarter
Square feet leased:
New format retail 2 2 – n/a n/a
Grocery anchored centre 17 10 7 n/a n/aOffice 1 – 1 n/a n/a
Total 20 12 8 n/a n/a
Average net rent per square foot (US dollars):
New format retail $ 19.91 19.91 – n/a n/a
Grocery anchored centre 19.06 19.41 18.48 n/a n/aOffice 22.91 – 22.91 n/a n/a
Total 19.40 19.50 19.23 n/a n/a
18 Third Quarter Ended September 30, 2010 Supplemental Information Package
RENEWAL ACTIVITYA summary of RioCan’s 2010 and 2009 renewals by property type is as follows:
Canadian Portfolio
Renewals
2010 2010 2010 2010 2009
(in thousands, except per sqft amounts)Year to
dateThird
quarterSecondquarter
Firstquarter
Thirdquarter
Square feet renewed:
New format retail 1,074 310 361 403 144
Grocery anchored centre 658 234 140 284 138
Enclosed shopping centre 875 319 344 212 156
Non-grocery anchored centre 131 66 45 20 35
Urban retail 55 11 24 20 11Office 22 1 10 11 39
Total 2,815 941 924 950 523
Average net rent per square foot:
New format retail $ 20.20 $ 17.92 $ 19.25 $ 22.81 $ 15.76
Grocery anchored centre 16.03 19.21 17.28 12.80 20.10
Enclosed shopping centre 9.90 10.36 9.72 9.51 19.24
Non-grocery anchored centre 16.29 17.02 16.58 13.17 19.11
Urban retail 36.50 43.58 45.08 22.55 15.19Office 12.48 19.50 14.69 10.06 9.85
Total $ 16.10 $ 15.91 $ 15.88 $ 16.49 $ 17.71
United States Portfolio
Renewals
2010 2010 2010 2010 2009
(in thousands, except per sqft amounts)Year to
dateThird
quarterSecondquarter
Firstquarter
Thirdquarter
Square feet renewed*:
Grocery anchored centre 119 104 2 13 n/aOffice 2 – – 2 n/a
Total 121 104 2 15 n/a
Average net rent per square foot (US dollars):
Grocery anchored centre $ 4.32 2.95 16.88 12.20 n/aOffice 23.94 – – 23.94 n/a
Total $ 4.72 2.95 16.88 15.32 n/a
Average net increase rent per square foot (US dollars) $ 0.20 $ 0.02 $ 2.50 $ 1.15 n/aPercentage increase in average net rent per sqft 4.4% 0.7% 17.4% 8.1% n/a
*All renewals were made at market rates.
19 Third Quarter Ended September 30, 2010 Supplemental Information Package
Including anchor tenants, the components of renewal activity for the Canadian portfolio for the three months ended September 30,2010 by property type are as follows:
(in thousands, except per sqft amounts) Total
Newformat
retail
Groceryanchored
centre
Enclosedshopping
centre
Non-grocery
anchoredcentre
Urbanretail Office
Renewals at market rental rates:
Square feet renewed 456 97 182 100 66 10 1
Average net rent per sqft $ 21.43 $ 24.35 $ 20.83 $ 20.30 $ 17.02 $ 44.26 $ 19.50Increase in average net rent per sqft $ 2.39 $ 3.61 $ 1.87 $ 1.37 $ 2.24 $ 11.26 $ 0.90
Fixed rental rate options in favour of our tenants:
Square feet renewed 485 213 52 219 – 1 –
Average net rent per sqft $ 10.72 $ 14.98 $ 13.57 $ 5.84 $ – $ 33.00 $ –Increase in average net rent per sqft $ 0.37 $ 0.70 $ 0.05 $ 0.12 $ – $ 1.00 $ –
Total:
Square feet renewed 941 310 234 319 66 11 1
Average net rent per sqft $ 15.91 $ 17.92 $ 19.21 $ 10.36 $ 17.02 $ 43.58 $ 19.50
Increase in average net rent per sqft $ 1.35 $ 1.61 $ 1.47 $ 0.51 $ 2.24 $ 10.63 $ 0.90Percentage increase in average net rent
per sqft 9.3% 9.9% 8.3% 5.2% 15.2% 32.3% 4.8%
Including anchor tenants, the components of renewal activity for the Candadian portfolio for the nine months ended September 30,2010 by property type are as follows:
(in thousands, except per sqft amounts) Total
Newformat
retail
Groceryanchored
centre
Enclosedshopping
centre
Non-grocery
anchoredcentre
Urbanretail Office
Renewals at market rental rates:
Square feet renewed 1,655 676 374 418 118 47 22Average net rent per sqft $ 20.20 $ 22.73 $ 21.11 $ 14.81 $ 16.42 $ 37.54 $ 12.48Increase in average net rent per sqft $ 2.12 $ 2.28 $ 1.74 $ 1.72 $ 2.05 $ 7.03 $ 1.53
Fixed rental rate options in favour of our tenants:
Square feet renewed 1,160 398 284 457 13 8 –Average net rent per sqft $ 10.24 $ 15.92 $ 9.35 $ 5.41 $ 15.12 $ 29.70 $ –Increase in average net rent per sqft $ 0.43 $ 0.77 $ 0.31 $ 0.19 $ 1.00 $ 0.09 $ –
Total:
Square feet renewed 2,815 1,074 658 875 131 55 22Average net rent per sqft $ 16.10 $ 20.20 $ 16.03 $ 9.90 $ 16.29 $ 36.50 $ 12.48Increase in average net rent per sqft $ 1.43 $ 1.72 $ 1.12 $ 0.92 $ 1.95 $ 6.11 $ 1.53Percentage increase in average net rent
per sqft 9.7% 9.3% 7.5% 10.2% 13.6% 20.1% 14.0%
20 Third Quarter Ended September 30, 2010 Supplemental Information Package
Lease Expires
RioCan’s lease expiries for the Canadian portfolio by property type as at September 30, 2010 are as follows:
Lease expiries
(in thousands, except per sqft and percentage amounts)Portfolio
NLA 2010 (i) 2011 2012 2013 2014
Square feet:
New format retail 17,635 220 1,186 1,216 1,445 1,501
Grocery anchored centre 7,571 170 966 1,003 560 1,229
Enclosed shopping centre 6,297 237 675 631 675 721
Non-grocery anchored centre 1,873 40 87 119 201 138
Urban retail 1,295 9 58 136 165 314Office 1,583 91 260 94 143 102
Total 36,254 767 3,232 3,199 3,189 4,005
Square feet expiring/Portfolio NLA 2.1% 8.9% 8.8% 8.8% 11.0%
Average net rent per occupied square foot:
New format retail $ 16.33 $ 18.20 $ 17.30 $ 17.30 $ 17.67 $ 18.09
Grocery anchored centre 14.33 17.71 14.16 14.40 17.21 13.59
Enclosed shopping centre 11.13 13.41 11.97 12.35 14.58 13.60
Non-grocery anchored centre 12.21 14.52 15.83 14.35 14.28 15.34
Urban retail 22.36 25.63 19.43 29.20 15.11 16.97Office 12.84 9.58 13.14 11.43 10.90 12.72
Total average net rent per sqft $ 14.86 $ 15.49 $ 14.91 $ 15.63 $ 16.28 $ 15.58
(i) Lease expiries for the remaining three months of 2010.
RioCan’s lease expiries for the US portfolio, at RioCan’s interest, as at September 30, 2010 are as follows:
Lease expiries
(in thousands, except per sqft and percentage amounts)Portfolio
NLA (i) 2010 (ii) 2011 2012 2013 2014
Square feet:
New format retail 1,354 1 6 23 62 20
Grocery anchored centre 1,050 46 72 92 45 93Office 52 4 11 4 10 4
Total 2,456 51 89 119 117 117
Square feet expiring/Portfolio NLA 2.1% 3.6% 4.8% 4.8% 4.8%
Average net rent per occupied square foot (US$):
New format retail $ 14.12 $ 24.00 $ 14.10 $ 15.64 $ 11.79 $ 25.12
Grocery anchored centre 21.01 21.13 18.33 17.23 15.82 14.67Office 23.56 25.76 30.99 26.20 31.52 23.76
Total average net rent per square foot $ 17.10 $ 21.61 $ 19.64 $ 17.25 $ 15.01 $ 16.73
(i) Represents 80% ownership share.(ii) Lease expiries for the remaining three months of 2010.
21 Third Quarter Ended September 30, 2010 Supplemental Information Package
The components of RioCan’s Canadian and US lease expiries for the remaining three months of 2010 by property type are asfollows:
(in thousands, except per sqft amounts) Total
Newformat
retail
Groceryanchored
centre
Enclosedshopping
centre
Non-grocery
anchoredcentre
Urbanretail Office
2010 expiries at market rental rates:
Square feet expiring 679 203 180 201 40 9 46Average net rent per sqft $ 17.14 $ 18.65 $ 19.21 $ 14.88 $ 14.52 $ 25.63 $12.88
2010 expiries with fixed rental rate optionsin favour of our tenants:
Square feet expiring 139 18 36 36 – – 49
Average in-place net rent per sqft $ 9.65 $ 13.50 $ 14.50 $ 5.04 $ – $ – $ 7.98
Average renewal net rent per sqft $ 10.13 $ 13.74 $ 16.15 $ 5.14 $ – $ – $ 7.98Increase in average net rent per sqft $ 0.48 $ 0.24 $ 1.65 $ 0.10 $ – $ – $ –
Total
Square feet expiring 818 221 216 237 40 9 95Average net rent per sqft $ 15.49 $ 18.20 $ 17.71 $ 13.41 $ 14.52 $ 25.63 $ 9.58
CONTRACTUAL RENT ACTIVITIES
Contractual Rent Increases
Certain of RioCan’s leases allow for periodic increases in rates during the term of the leases. Contractual rent increases in eachyear for the next five years are as follows:
For the years ending
(in thousands) 2010 (i) 2011 2012 2013 2014
Net increase in contractual rent receipts $ 1,394 $ 3,557 $ 2,449 $ 2,635 $ 3,139
(i) Increases for the remaining three months of 2010.
22 Third Quarter Ended September 30, 2010 Supplemental Information Package
PROPERTY OWNERSHIP by GEOGRAPHIC AREAProperty Ownership by Geographic Area (square feet)At Sept 30, 2010
Provincial
RioCan’sinterests
NLAPartners’interests
Retailerowned
anchorsTotal site
NLA
Ontario Central 14,261,774 3,423,760 3,046,016 20,731,550Ontario East 4,460,406 982,643 1,157,045 6,600,094Ontario West 2,694,545 80,817 650,187 3,425,549Total Ontario 21,416,725 4,487,220 4,853,248 30,757,193
Quebec 6,932,305 1,286,596 1,656,634 9,875,535Alberta 3,808,416 1,613,719 1,995,915 7,418,050British Columbia 2,037,932 1,459,932 426,074 3,923,938New Brunswick 1,073,919 138,165 470,615 1,682,699Saskatchewan 267,667 – – 267,667Newfoundland 212,331 – – 212,331Manitoba 269,603 211,695 92,604 573,902Prince Edward Island 166,717 166,717 – 333,434Nova Scotia 69,047 69,047 – 138,094USA 2,455,581 613,893 932,367 4,001,841
Income Producing Properties 38,710,243 10,046,984 10,427,457 59,184,684
Properties Under Development 2,438,232 3,487,768 1,413,000 7,339,000
Total 41,148,475 13,534,752 11,840,457 66,523,684
Six High Growth Markets
RioCan'sinterests
NLAPartners'interests
Retailerowned
anchorsTotal site
NLA
Calgary, Alberta 1,984,717 715,238 1,021,735 3,721,690Edmonton, Alberta 1,091,638 866,775 822,680 2,781,093Montreal, Quebec 3,976,190 1,144,658 349,553 5,470,401Ottawa, Ontario 1 2,731,031 712,723 1,297,000 4,740,754Toronto, Ontario 2 10,036,582 2,626,778 2,007,941 14,671,301Vancouver, British Columbia 3 1,319,732 1,037,275 373,074 2,730,081
Income Producing Properties 21,139,890 7,103,447 5,871,983 34,115,320
Properties Under Development 1,981,232 3,487,768 935,000 6,404,000
Total 23,121,122 10,591,215 6,806,983 40,519,320
Notes:1. Area extends from Nepean and Vanier, to Gatineau, Quebec.2. Area extends north to Newmarket, west to Burlington and east to Ajax.3. Area extends east to Abbotsford.
23 Third Quarter Ended September 30, 2010 Supplemental Information Package
PORTFOLIO GEOGRAPHIC DIVERSIFICATIONAt Sept 30, 2010
Area
Percentageof annualized
rental revenueOccupancy
percentage
Percentageof area
occupied byanchor and
national tenants
Percentageof annualized
rental revenuefrom anchor andnational tenants
Ontario Central 36.9% 38.5% 96.4% 85.6% 86.8%Ontario East 11.5% 11.6% 98.0% 85.3% 86.5%Ontario West 7.0% 6.2% 96.7% 80.8% 87.8%
Total Ontario 55.4% 56.3% 96.8% 84.9% 86.9%Quebec 17.9% 16.5% 97.6% 79.1% 83.8%Alberta 9.1% 11.6% 99.4% 83.3% 81.7%British Columbia 6.0% 6.1% 98.8% 84.9% 86.2%New Brunswick 2.8% 1.9% 89.4% 82.9% 89.0%Saskatchewan 0.7% 0.5% 83.7% 75.0% 92.7%Newfoundland 0.5% 0.3% 95.9% 87.1% 87.2%Manitoba 0.7% 0.7% 96.2% 65.0% 73.3%Prince Edward Island 0.4% 0.4% 98.0% 70.4% 74.8%Nova Scotia 0.2% 0.1% 97.7% 98.9% 98.7%USA 6.3% 5.6% 98.1% 93.4% 93.8%
Total Portfolio 100.0% 100.0% 97.1% 83.9% 86.0%
OCCUPANCY – MOST RECENT EIGHT QUARTERSThe occupancy rate of the Canadian portfolio has remained relatively stable over the most recent eight fiscal quarters:
95.0%
100.0%
Q4 2008 Q1 2009 Q2 2009 Q3 2009 Q4 2009 Q2 2010Q1 2010 Q3 2010
96.9%97.5%
97.1% 97.3% 97.4%97.0% 97.0% 97.0%
The occupancy rate of the US portfolio has increased over the most recent four fiscal quarters:
95.0%
100.0%
Q4 2009 Q1 2010 Q2 2010 Q3 2010
95.8%95.1%
96.2%
98.1%
ECONOMIC VERSUS COMMITTED OCCUPANCYAt September 30, 2010, RioCan’s committed occupancy rate of the total portfolio is 97.0%. Included in this rate is 492,000 squarefeet of NLA that has been leased but is not paying rent, resulting in an economic occupancy rate of 95.8% which represents theoccupied NLA for which tenants are paying rent. A rent commencement timeline for the NLA which has been leased but is notcurrently open is as follows:
(in thousands, except percentage amounts) Total Q4 2010 Q1 2011 Q2 2011 Q3 2011 Q4 2011
Square feet:NLA commencing 492 227 123 102 36 4Cumulative NLA commencing 492 227 350 452 488 492% of NLA commencing 100% 46% 25% 21% 7% 1%Cumulative % total 46% 71% 92% 99% 100%Average net rent:Monthly rent commencing $ 967 $ 499 $ 245 $ 181 $ 35 $ 7Cumulative monthly rent commencing 967 $ 499 $ 744 $ 925 $ 960 $ 967% of rent for NLA commencing 100% 52% 25% 19% 4% 1%Cumulative % total rent commencing 52% 77% 96% 99% 100%
The annualized rental impact once these tenants take occupancy and commence paying rent is approximately $11.6 million.
24 Third Quarter Ended September 30, 2010 Supplemental Information Package
TOP FIFTY TENANTS – CANADA AND US
As at September 30, 2010, RioCan’s fifty largest tenants in Canada and the US have the following profile:
Rank Tenant name
Annualizedrental
revenueNumber of
locationsNLA
(in thousands)Percentageof total NLA
Weightedaverage
remaininglease term
(years)
1 Famous Players/Cineplex/Galaxy Cinemas 4.7% 28 1,263 3.3% 12.6
2 Metro/Super C/Loeb/Food Basics 4.6% 55 2,034 5.4% 8.6
3 Walmart 4.4% 25 2,842 7.5% 13.2
4 Canadian Tire/PartSource/Mark’s Work Wearhouse 3.8% 59 1,438 3.8% 11.6
5 Zellers/The Bay/Home Outfitters 3.3% 40 2,662 7.0% 9.1
6 Winners/HomeSense/TJX Companies 2.8% 55 1,207 3.2% 4.8
7 Loblaws/No Frills/Fortinos/Zehrs/Maxi 2.7% 25 1,112 2.9% 5.7
8 Staples/Business Depot 2.2% 46 939 2.5% 7.4
9 Reitmans/Penningtons/Smart Set/Addition-Elle/Thyme Maternity 1.9% 128 530 1.4% 5.1
10 Shoppers Drug Mart 1.7% 38 429 1.1% 10.4
11 Harvey’s/Swiss Chalet/Kelsey’s/Montana’s/Milestone’s (Cara) 1.7% 87 372 1.0% 9.0
12 Future Shop/Best Buy 1.5% 23 475 1.3% 6.8
13 Sobeys/IGA/Price Chopper/Empire Theatres 1.5% 23 637 1.7% 10.7
14 Sport Mart/ Sport Chek/Sports Experts/National Sports/Atmosphere 1.4% 42 451 1.2% 5.8
15 Chapters/Indigo 1.2% 23 317 0.8% 4.0
16 Giant Food Stores/ Stop & Shop (Royal Ahold) 1.2% 12 521 1.4% 17.2
17 Dollarama 1.1% 54 465 1.2% 6.9
18 PetSmart 1.1% 27 350 0.9% 5.9
19 TD Bank 1.0% 49 195 0.5% 8.3
20 Safeway 0.9% 12 418 1.1% 7.9
21 The Brick 0.9% 16 325 0.9% 9.6
22 Lowes 0.8% 4 564 1.5% 17.2
23 Blue Notes/Stitches/Suzy Shier/Urban Planet (YM Inc.) 0.8% 49 211 0.6% 5.9
24 Sears 0.8% 13 350 0.9% 3.2
25 Premier Fitness 0.7% 9 285 0.8% 7.7
26 Liquor Control Board of Ontario (LCBO) 0.7% 20 161 0.4% 10.2
27 Bank of Nova Scotia 0.6% 32 121 0.3% 6.0
28 Michael’s 0.6% 15 202 0.5% 5.6
29 Rona/Revy/Reno 0.5% 5 246 0.7% 15.3
30 Liz Claiborne/Mexx 0.5% 31 127 0.3% 6.1
31 CIBC 0.5% 26 99 0.3% 6.3
32 London Drugs 0.5% 10 205 0.5% 8.2
33 Tim Horton’s/Wendy’s 0.5% 44 122 0.3% 7.4
34 Jysk Linen 0.5% 11 187 0.5% 6.2
35 Bell/The Source 0.5% 68 97 0.3% 4.9
36 Golf Town 0.5% 12 142 0.4% 7.2
37 East Side Mario’s/Casey’s (Prime Restaurants) 0.4% 20 94 0.2% 6.5
38 BouClair 0.4% 18 146 0.4% 6.1
39 Rogers Video 0.4% 47 103 0.3% 3.0
40 Sleep Country Canada 0.4% 21 94 0.2% 5.7
41 The Shoe Company 0.4% 24 119 0.3% 5.2
42 Moores 0.4% 22 104 0.3% 5.1
43 Bank of Montreal 0.4% 22 80 0.2% 6.2
44 Royal Bank of Canada 0.4% 20 81 0.2% 6.9
45 Blockbuster Video 0.4% 23 102 0.3% 3.3
46 Ardene 0.4% 36 95 0.3% 6.4
47 La Senza 0.4% 21 83 0.2% 5.7
48 International Clothiers 0.3% 18 93 0.2% 7.8
49 Boston Pizza 0.3% 17 82 0.2% 13.0
50 Subway 0.3% 71 76 0.2% 5.359.9% 1,596 23,453 61.9% 8.7
25 Third Quarter Ended September 30, 2010 Supplemental Information Package
TOP TEN TENANTS CANADATop Ten Tenants – Canada
As at September 30, 2010, RioCan’s ten largest tenants in Canada have the following profile:
Rank Tenant name
Annualizedrental
revenueNumber of
locationsNLA
(in thousands)Percentageof total NLA
Weightedaverage
remaininglease term
(years)
1 Famous Players/Cineplex/Galaxy Cinemas 4.9% 28 1,263 3.6% 12.62 Metro/Super C/Loeb/Food Basics 4.9% 55 2,034 5.7% 8.63 Walmart 4.7% 25 2,842 8.0% 13.24 Canadian Tire/PartSource/Mark’s Work Wearhouse 4.0% 59 1,438 4.1% 11.65 Zellers/The Bay/Home Outfitters 3.5% 40 2,662 7.5% 9.16 Winners/HomeSense/TJX Companies 2.9% 54 1,185 3.4% 4.87 Loblaws/No Frills/Fortinos/Zehrs/Maxi 2.9% 25 1,112 3.1% 5.78 Staples/Business Depot 2.3% 45 924 2.6% 7.39 Reitmans/Penningtons/Smart Set/Addition-Elle/Thyme Maternity 2.0% 128 530 1.5% 5.1
10 Shoppers Drug Mart 1.8% 38 429 1.2% 10.433.9% 497 14,419 40.7% 9.4
Top Ten Tenants—US
As at September 30, 2010, RioCan’s Ten largest tenants in the US have the following profile:
Rank Tenant name
Annualizedrental
revenueNumber of
locationsNLA
(in thousands)Percentageof total NLA
Weightedaverage
remaininglease term
(years)
1 Giant Food Stores/ Stop & Shop (Royal Ahold) 18.3% 16 735 15.8% 16.02 Bed Bath & Beyond 3.5% 7 161 3.5% 8.63 Lowes 3.5% 3 294 6.3% 16.74 Safeway 3.4% 3 141 3.0% 12.55 HEB Supermarket 2.9% 2 114 2.5% 10.46 PetSmart 2.9% 7 115 2.5% 7.87 Best Buy 2.4% 3 79 1.7% 8.78 Sports Authority 1.9% 2 68 1.5% 7.39 Kohl’s 1.8% 4 224 4.8% 17.5
10 Old Navy 1.8% 4 60 1.3% 2.942.4% 51 1,991 42.9% 12.9
26 Third Quarter Ended September 30, 2010 Supplemental Information Package
LEASE EXPIRIES BY GEOGRAPHICAL AREAAt Sept 30, 2010
Propertyownership
NLA (sq. ft.)
Expiries
Year 2010 2011 2012 2013 2014 Total
Ontario Central Square feet 14,261,774 315,357 1,233,915 1,067,685 1,440,328 1,637,461 5,694,746Percentage 2.2% 8.7% 7.5% 10.1% 11.5% 51.3%
Ontario East Square feet 4,460,406 58,676 355,326 318,754 296,915 421,476 1,451,147Percentage 1.3% 8.0% 7.1% 6.7% 9.4% 32.5%
Ontario West Square feet 2,694,545 25,347 173,415 324,372 256,020 421,950 1,201,104Percentage 0.9% 6.4% 12.0% 9.5% 15.7% 44.6%
Total Ontario Square feet 21,416,725 399,380 1,762,656 1,710,811 1,993,263 2,480,887 8,346,997Percentage 1.9% 8.2% 8.0% 9.3% 11.6% 50.2%
Quebec Square feet 6,932,305 202,706 674,526 776,767 436,237 602,994 2,693,230Percentage 2.9% 9.7% 11.2% 6.3% 8.7% 38.9%
Alberta Square feet 3,808,416 66,722 317,164 356,402 327,667 409,974 1,477,929Percentage 1.8% 8.3% 9.4% 8.6% 10.8% 38.8%
British Columbia Square feet 2,037,932 21,540 197,104 231,136 313,005 225,204 987,989Percentage 1.1% 9.7% 11.3% 15.4% 11.1% 48.5%
New Brunswick Square feet 1,073,919 45,255 131,253 66,102 64,521 62,752 369,883Percentage 4.2% 12.2% 6.2% 6.0% 5.8% 34.4%
Saskatchewan Square feet 267,667 6,093 124,317 8,083 6,755 47,384 192,632Percentage 2.3% 46.4% 3.0% 2.5% 17.7% 74.8%
Newfoundland Square feet 212,331 5,342 10,935 2,378 7,155 73,763 99,573Percentage 2.5% 5.1% 1.1% 3.4% 34.7% 79.5%
Manitoba Square feet 269,603 18,629 13,240 20,980 25,777 88,056 166,682Percentage 6.9% 4.9% 7.8% 9.6% 32.7% 54.0%
Prince Edward Island Square feet 166,717 1,256 1,224 25,353 13,106 14,334 55,273Percentage 0.8% 0.7% 15.2% 7.9% 8.6% 52.4%
Nova Scotia Square feet 69,047 – – 844 1,321 – 2,165Percentage 0.0% 0.0% 1.2% 1.9% 0.0% 3.1%
Total Square feet 36,254,662 766,923 3,232,419 3,198,856 3,188,807 4,005,348 14,392,353Percentage 2.1% 8.9% 8.8% 8.8% 11.0% 39.7%
27 Third Quarter Ended September 30, 2010 Supplemental Information Package
GENERAL INFORMATIONAt September 30, 2010
Distributions per Unit:
Distributions are paid monthly
Year
2010 YTD $1.035002009 $1.380002008 $1.360002007 $1.327502006 $1.297502005 $1.272502004 $1.227502003 $1.140002002 $1.105002001 $1.075002000 $1.071251999 $1.040001998 $0.950001997 $0.775001996 $0.650001995 $0.580001994 $0.43000
Unitholder Distribution Reinvestment Plan:
RioCan has a unitholder distribution reinvestment plan which allows distributions to be automatically reinvested withoutcommissions and provides participants with a number of bonus units equal to 3.1% of the number of units acquired upon thereinvestment.
Average Daily Volume of Units Traded:
2010 2009 2008 2007 2006
4th quarter 504,418 568,328 441,883 552,4923rd quarter 500,554 601,290 444,161 524,291 351,5762nd quarter 507,743 690,923 495,014 500,470 478,7401st quarter 647,952 588,563 534,105 560,320 410,957
Annual 596,329 513,692 506,883 448,263
Unit Prices ($):
Q3 2010 Q2 2010 Q1 2010 Q4 2009 Q3 2009 Q2 2009 Q1 2009 Q4 2008
High $ 23.12 $ 20.00 $ 20.07 $ 20.05 $ 18.94 $ 15.74 $ 15.69 $ 20.80Low $ 18.80 $ 17.25 $ 17.45 $ 17.15 $ 14.00 $ 12.20 $ 11.23 $ 12.10Close $ 22.92 $ 19.04 $ 18.48 $ 19.85 $ 18.00 $ 15.28 $ 12.55 $ 13.66
Non-resident Ownership*:
Q3 2010 Q2 2010 Q1 2010 Q4 2009 Q3 2009 Q2 2009 Q1 2009 Q4 2008
Canadian 65.69% 63.27% 65.84% 68.13% 70.37% 68.72% 66.67% 68.98%Non-resident 34.31% 36.73% 34.16% 31.87% 29.63% 31.28% 33.33% 31.02%
Total 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
* Estimate based on mailing addresses at September 30, 2010.
28 Third Quarter Ended September 30, 2010 Supplemental Information Package
SENIOR MANAGEMENT AND UNITHOLDER INFORMATION
Head Office:
RioCan Real Estate Investment Trust2300 Yonge Street, Suite 500PO Box 2386, Toronto, Ontario M4P 1E4Tel: (416) 866-3033 or 1 (800) 465-2733Fax: (416) 866-3020Website: www.riocan.comE-mail: [email protected]
Senior Management:
Edward Sonshine, Q.C. President & Chief Executive OfficerFrederic A. Waks Executive Vice President & Chief Operating OfficerRaghunath Davloor Senior Vice President, Corporate Secretary & Chief Financial OfficerJohn Ballantyne Senior Vice President, Asset ManagementDanny Kissoon Senior Vice President, OperationsDonald MacKinnon Senior Vice President, Real Estate FinanceJordan Robins Senior Vice President, Planning & DevelopmentJeff Ross Senior Vice President, LeasingMichael Connolly Vice President, ConstructionTherese Cornelissen Vice President Accounting Standards & TaxationJonathan Gitlin Vice President, InvestmentsOliver Harrison Vice President, Asset ManagementSuzanne Marineau Vice President, Human ResourcesJane Plett Vice President, Operations – Western CanadaMaria Rico Vice President, Financial ReportingKenneth Siegel Vice President, Leasing
Investor Relations Contact:
Christian GreenDirector, Investor Relations and ComplianceTel: (416) 864-6483 or 1 (800) 465-2733Fax: (416) 866-3128E-mail: [email protected]
Stock Exchange Listing: The Toronto Stock Exchange
Trading Symbol: REI.UN
Transfer Agent & Registrar:
CIBC Mellon Trust CompanyP.O. Box 7010 Adelaide Street Postal Station, Toronto, ON M5C 2W9Answerline: (416) 643-5500/Toll free North America: 1 (800) 387-0825Website: www.cibcmellon.comE-mail: [email protected]
29 Third Quarter Ended September 30, 2010 Supplemental Information Package
RioCan Yonge Eglinton RioCan Yonge Eglinton Centre
2300 Yonge StreetSuite 500 PO Box 2386 Suite 500, PO Box 2386, Toronto, ON416-866-3033 / 1-800-465-2733416 866 3033 / 1 800 465 2733
www.riocan.com