PowerPoint Presentation · Conference Call Presentation ... Yonge Sheppard Centre, Toronto, ON Location: Located at the thriving intersection Yonge & Sheppard, with access to 2 subway

Q1 2018

Conference Call Presentation

May 9, 2018

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In talking about our financial and operating performance and in responding to your questions we may make forward-looking statements

including statements concerning RioCan’s objectives, its 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. These statements are based on our current estimates and

assumptions and are subject to risks and uncertainties that could cause our actual results to differ materially from the conclusions in these

forward-looking statements.

In discussing our financial and operating performance and in responding to your questions we will also be referencing certain financial

measures that are not generally accepted accounting principle measures (“GAAP”) under IFRS. These measures do not have any

standardized definition prescribed by IFRS and are, therefore, unlikely to be comparable to similar measures presented by other reporting

issuers. Non-GAAP measures should not be considered as alternatives to net earnings or comparable metrics determined in accordance

with IFRS as indicators of RioCan’s performance, liquidity, cash flows and profitability. RioCan’s management uses these measures to aid

in assessing the Trust’s underlying core performance and provides these additional measures so that investors may do the same.

Additional information on the material risks that could impact our actual results and the estimates and assumptions we applied in making

these forward looking statements, together with details on our use of non-GAAP financial measures, can be found in the financial

statements for the period ended March 31, 2018 and management's discussion and analysis related thereto, as applicable, together with

RioCan’s current Annual Information Form that are all available on our website and at www.sedar.com.

FORWARD LOOKING ADVISORY

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Same Property NOI

(“SPNOI”)

2.6%

Major Markets SPNOI

3.3%

Major Markets Committed

Occupancy

97.9% 96.6% Overall

FFO Per Unit - $0.46

6.1%

RELATIVE TO Q1 2017

Q1 2018 HIGHLIGHTS

* Effective Jan 1 2018, the Trust includes Hamilton in the GTA as the Trust believes that Hamilton is a high growth market that forms part of the contiguous urban

region and has strong rapid transit connections to Toronto. The inclusion of Hamilton in the GTA has little impact on the major markets SPNOI and increases major

markets committed occupancy by 10bps (otherwise 97.8%).

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FUNDS FROM OPERATIONS (“FFO”) & PAYOUT RATIO

FFO per Unit FFO Payout Ratio*

Increased 6.1%Target is to be

below 80%

* For the twelve months ended

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SAME PROPERTY NOI GROWTH

• Same property NOI

increased $4.3 million

• $2.7 million or 63% of the

increase is related to higher

occupancy, renewal rate

growth and contractual rent

increases

• $1.5 million is due to Target

backfills and other

development completions,

net of $0.7 million negative

impact of Sears closures

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ACCELERATION OF MAJOR MARKET STRATEGY

• Sales prices to-date are in line with IFRS value

• Including conditional transactions total dispositions to

date represent 40% of disposition target

• Improved portfolio quality and resilience to the changing

retail environment

• Enhanced growth profile

• Newer assets and less capex

Disposition Progress as of May 8, 2018

Transaction type Value (M)

Closed and Firm $583.4

Conditional $224.8

Total to date $808.2

Capitalization Rate 6.40%

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• Major Market Portfolio

o Higher tenant

retention

o Lower average age

o Lower maintenance

Capex per square

foot

• Lower Portfolio Net

Leasable Area (“NLA”)

o Given on-going

dispositions as part

of the $2.0 billion

disposition program

2018 NORMALIZED CAPITAL EXPENDITURES

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DEVELOPMENT PIPELINE

As of March 31, 2018

• Nearly 50% or 12.2M sf with zoning approved and nearly 100% is located in the six major

markets

• Particularly valuable in today’s more challenging regulatory environment• Uncertainty in Ontario regarding transition to the newly implemented Local Planning Appeal

Tribunals given that its mandate is unclear

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PRUDENT MANAGEMENT OF DEVELOPMENT RISKS

• Laddered development

• Pre-leasing requirement for commercial development and sound market

studies for residential development

• Well-established internal control process for development approvals and

construction management

• Strategic alliances to reduce capital requirements and mitigate risks

• Dedicated and experienced development team but not over-staffed

o No overhead pressure to take on projects

o Residential property management currently outsourced until we reach scale

• Already own the assets, which are income producing

o We can better control development starts especially in today’s environment of rising

construction costs

• Limited condominium development

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SELF FUNDING DEVELOPMENTNOT DEPENDENT ON EQUITY OFFERINGS OR INCREASING LEVERAGE

Sources of Funding for Development:

• Disposition net proceeds

• Sales proceeds from condominium/townhouse developments or

air rights sales

• Strategic alliances to reduce capital requirements and mitigate

risks

• Excess operating cash flows

• Sale of marketable securities

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LEVERAGE METRICS

Debt to Adj. EBITDA Debt to Assets Ratio

Target 42%Target <8.0x

• 12 months ended March 31, 2018

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• Slight increase to leverage in Q1 2018 as:

• The Trust maximized NCIB purchases prior to entering the blackout period in late March for quarter end reporting, and in anticipation of receiving substantial net disposition proceeds in April 2018

• Since the renewal of the Trust’s NCIB program in October 2017, RioCan purchased and cancelled 9.8 million Trust units at a total cost of $240 million

NCIB PROGRAM UPDATE

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CONSISTENTLY ABOVE 95%

STRONG BALANCE SHEETPRUDENT CAPITAL MANAGEMENT & FLEXIBLE CAPITAL STRUCTURE

Capital Structure Metrics

Target Q1 2018*

Leverage 38% - 42% 42.4%

Debt/EBITDA <8.0x 7.63x

Interest Coverage >3.0x 3.85x

Debt Service Coverage >2.25x 3.12x

Fixed Coverage >1.10x 1.18x

Unencumbered Assets N/A $8.1B

Unencumbered Assets to Unencumbered Debt >2.0x 2.20x

NOI % from Unencumbered Assets >50% 58.4%

Unsecured vs. Secured Debt 60%/40% 59%/41%

FFO Payout Ratio <80% 78.0%

* Coverage and payout ratios calculated on a rolling 12 month basis

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SAME PROPERTY NOI GROWTH

Primary Markets - 3.3%

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COMMITTED AND IN-PLACE OCCUPANCYDESPITE SEARS CLOSURES IN Q4 2017

130 bps increase

40 bps increase

2016 2017 2018

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SEARS LEASING UPDATE

• Leases completed or in advanced negotiations representing 324,000

sf. or 85% of the former Sears spaces would replace 133% of the total

former Sears revenues

• Dynamic new retailers

• Less complex than former Target locations

• Anticipate tenants will be operating and paying rent in early 2019

• Oakville Place lease buyout removes past development restrictions

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Renewal Leasing

• $17.22 psf, an increase of 4.3%

1.1 million square feet in Q1 2018

• Higher percentage of fixed rate

renewals in 2017 (53% Q1 2018

vs. 31% Q4 2017)

New Leasing

• $23.28 psf – 417,000 square feet

in Q1 2018

LEASING RESULTS

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Development Progress

491 College Street, Toronto, ON

Partner: Allied (50%)

LCBO’s relocation from 555 College Street allows us to

proceed with the development of a 56k sf rental residential

development on their former site.

Major Tenants: LCBO

Commercial NLA: 12,000 sf at RioCan’s Interest (24,000 sf

at 100%)

Estimated PUD Costs (at RioCan’s Interest): $12.0 M

Demographics in 5km radius:

• Population: 594k

• Average household income: $117k+

642 King Street West, Toronto, ON

Partner: Allied (50%)

Property Type: Four storey restored mixed-use office and retail at

grade with 26,000 sf

Leasing: 100% Leased





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East Hills, Calgary AB King Portland Centre, Toronto, ON

Partner: CPPIB Partner: Allied (50%)

Leasing: Shopify and Indigo have leased all 14 floors of the

office tower and are expected to take possession in Q3 2018

• All 132 condominium units are sold – taking occupancy in

March 2019





Major Tenants: Walmart, Cineplex, Costco (shadow)

Commercial NLA: 288,000 sf, (140,000 sf at RioCan’s

Interest)

Pre-Leased: 57%




• Average household income: $89k

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Yonge Sheppard Centre, Toronto, ON

Location: Located at the thriving intersection

Yonge & Sheppard, with access to 2 subway lines

and highway 401

Property Type: Mixed-use with incremental 156k

sf retail, as well as 258k sf of rental residential

Phased Completion: Retail – 2019, Residential-

2020

Leasing: LA Fitness and Longo’s expected to

take possession in Q2 and Q3 2018

Partner: KingSett Capital (50%)

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Partner: Woodbourne (50%)

Litho. (Dupont Street), Toronto, ON

Commercial NLA: Mixed-use retail and residential. 9-storey

project with 210 rental units and 31,000 square feet of retail

GLA. Firm lease with Farm Boy (23,000sf) to anchor the

retail portion of the site.





Brio (Brentwood Village), Calgary AB

Partner: Boardwalk (50%)

Extracting additional value through the redevelopment of an

underutilized retail portion of the site to include additional

residential uses

Commercial NLA: Mixed-use retail residential, 12-storey,

163 rental units with approximately 10,000sf of retail GLA

Estimated PUD Costs (at RioCan’s Interest): $38.1M




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TREMENDOUS SOURCES OF CASH FLOW & NAV GROWTH

SELECTED DEVELOPMENT COMPLETIONS OVER THE NEXT THREE YEARS

At RioCan’s Interest 2018 Q2-Q4 2019 2020

Est. Completed NLA (‘000s sf)1 546 784 372

Est. PUD Completions (millions)2 $367 $435 $190

1. Estimated NLA completions are NLA transferred to IPP upon projects’ completion in each period, which are estimated as 90% of gross floor area (GFA)

2. Estimated PUD cost completions are fully loaded IFRS costs including land that are to be transferred to IPP upon projects’ completion in each period, net of land

and air rights sales for active projects with detailed cost estimates

Brentwood Village

(Brio)

King Portland

Centre (Kingly)

Bathurst College Centre

Yonge & Eglinton

Northeast Corner

(eCentral)

Gloucester Phase

I (Frontier)

The Well – Phased

completion 2020-2023

Annualized stabilized NOI from active projects with detailed costs estimates to be completed between Q2 2018 and end of 2020, including Expansion &

Redevelopment projects, is expected to be in the $50 million to $55 million range at RioCan's interest. The annualized stabilized NOI of a project is an

estimate of stabilized NOI following completion of a project on a full year basis. NOI to be reported for the remainder of 2018 to 2020 will be different

from this range, due to the partial year effect in a given year as a result of project completion timing and the effect of property lease up period.

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Edward Sonshine, O.Ont., Q.C.Chief Executive Officer

CEO Comments

•

Edward Sonshine, O.Ont., Q.C.

Chief Executive Officer

Rags Davloor

President & Chief Operating Officer

Qi Tang

Senior Vice President & Chief Financial Officer

Contact Information RioCan Yonge Eglinton Centre 2300 Yonge Street P.O. Box 2386 Toronto, ON M4P 1E4

(T) 1-800-465-2733 or (416) 866-3033

Documents

PowerPoint Presentation · Conference Call Presentation ... Yonge Sheppard Centre, Toronto, ON Location: Located at the thriving intersection Yonge & Sheppard, with access to 2 subway