Real Estate — November 6, 2012

RioCan Real Estate Investment Trust Announces Record Operating FFO Per Unit for the Third Quarter 2012

TORONTO, ONTARIO--(Marketwire - Nov. 6, 2012) - RioCan Real Estate Investment Trust (TSX:REI.UN) -

HIGHLIGHTS for the Third Quarter of 2012:

All figures in Canadian dollars unless otherwise noted. RioCan's results are prepared in accordance with International Financial Reporting Standards ("IFRS").

  • RioCan's Operating FFO increased by 19% to $115 million for the three months ending September 30, 2012 ("Third Quarter") compared to $97 million in the third quarter of 2011. On a per unit basis, Operating FFO increased 8% to $0.40 per unit from $0.37 per unit in the same period of 2011;
  • RioCan's Operating FFO increased by 16% to $325 million for the nine months ended September 30, 2012 compared to $280 million for the same period in 2011. On a per unit basis, Operating FFO increased 6% to $1.13 per unit from $1.07 per unit for the same period in 2011;
  • Overall occupancy was 97.3% at September 30, 2012 compared to 97.4% at June 30, 2012;
  • During the quarter, RioCan acquired Georgian Mall, a 604,600 square foot regional mall. The property features tenants such as The Bay, H&M, and Disney Store and was purchased for $318 million at a 5.5% capitalization rate. The acquisition was financed with a first mortgage in the amount of $185 million with an interest rate of 3.09% for a term of six years;
  • During the Third Quarter, RioCan acquired interests in three properties in Canada and the US aggregating to 768,000 square feet at a purchase price of approximately $369 million at RioCan's interest at a weighted average capitalization rate of 5.7%;
  • RioCan renewed 879,000 square feet in the Canadian portfolio during the Third Quarter at an average rent increase of $2.32 per square foot, representing an increase of 12.9%, compared to 7.2% for the same period in 2011;
  • RioCan renewed 2.9 million square feet in the Canadian portfolio during the nine months ended September 30, 2012 at an average rent increase of $1.96 per square foot, representing an increase of 12.0%, compared to 10.1% for the same period in 2011;
  • Subsequent to the quarter end, RioCan has dissolved its joint venture agreement with Cedar Realty Trust ("Cedar") and acquired the remaining 20% interest in 21 properties previously owned jointly with Cedar. Concurrently, RioCan sold its 80% interest in Franklin Village, also previously owned with Cedar. RioCan expects to assume the property management activities in the first quarter of 2013; and
  • During the Third Quarter, RioCan issued 6,925,000 units at a price of $27.90 for aggregate proceeds of $193.2 million.

RioCan Real Estate Investment Trust ("RioCan") today announced its financial results for the three and nine months ended September 30, 2012.

"We are very pleased with how the year has progressed to date. RioCan's operating metrics are strong, the Trust has been successful in further strengthening its balance sheet, and RioCan's acquisition group has continued to secure high quality assets for RioCan's continued growth," said Edward Sonshine, Chief Executive Officer of RioCan. "We believe that RioCan is very well positioned to generate additional growth next year through continued organic growth in the portfolio, additional interest cost savings, and our outlook for long term growth is secured by RioCan's strong acquisition platform and ongoing development completions."

Financial Highlights

Operating Funds from operations ("Operating FFO")

RioCan's Operating FFO represents the recurring cash flow generated through the ownership and management of income properties. This is the basis for determining RioCan's Adjusted Funds From Operations. In contrast to FFO, Operating FFO also excludes transactional gains from the sale of real estate as well as certain expenditures related to development activities that are not capitalized during the development period for accounting purposes that, in management's view, forms part of its development projects.

Operating FFO for the Third Quarter was $115 million ($0.40 per unit) compared to $97 million ($0.37 per unit) in the third quarter of 2011. The primary reasons for this increase were: a $26 million increase in net operating income ("NOI"), which was due to acquisitions, lease cancelation fees of $7 million, same property growth of 0.3% in Canada, and the completion of greenfield developments. These increases to Operating FFO were partially offset by increased preferred unit distributions of $2 million, higher interest expense of $1 million, and higher general and administrative expenses of $1 million during the Third Quarter.

Operating FFO for the nine months ended September 30, 2012 was $325 million ($1.13 per unit) compared to $280 million ($1.07 per unit) in the same period of 2011. The primary reasons for this increase were: a $71 million increase in NOI, which was due to higher lease cancelation fees of $8 million, along with same property growth of 1.1% in Canada and 0.1% in the US, and the completion of greenfield developments. These increases to Operating FFO were partially offset by increased interest expense of $7 million, which included $2.3 million of costs associated with the early repayment of $90 million of secured debt in the second quarter (which carried an interest rate of 5.9%), increased preferred unit distributions of $6 million, higher general and administrative expenses of $4 million, and lower fee and other income of $6 million during the first nine months of 2012.

Net Earnings

RioCan reported net earnings attributable to unitholders for the Third Quarter of $125 million ($0.42 per common unit) compared to $168 million ($0.63 per common unit) for the same period in 2011, a decrease of $43 million ($0.21 on a per common unit basis). The decrease is primarily the result of lower fair value gains on investment properties of $7 million in the Third Quarter compared to $73 million in the third quarter of 2011. Transactional gains in the Third Quarter of $1 million partially offset the decline in net earnings compared to 2011. Capitalization rates decreased by 2 bps, on average, as compared to June 30, 2012. Excluding the impact of fair value gains on investment properties, net earnings for the three months ended September 30, 2012 was $120 million as compared to $97 million during the same period in 2011.

RioCan reported net earnings attributable to unitholders for the nine months ended September 30, 2012 of $876 million ($3.02 per common unit) compared to $632 million ($2.39 per common unit) for the same period in 2011, an increase of $244 million ($0.63 on a per common unit basis). The increase is primarily the result of higher fair value gains on investment properties of $567 million in the first nine months of 2012 compared to $387 million in the same period of 2011. Excluding the impact of fair value gains on investment properties, net earnings for the nine months ended September 30, 2012 was $323 million as compared to $254 million in the same period of 2011.

Same Store and Same Property NOI

Same store NOI was stable during the Third Quarter in Canada and same property NOI increased by 0.3%, compared to the same period in 2011, due largely to new leasing which favourably impacted NOI by $3.9 million, renewal and fixed rent steps which increased NOI by $1.5 million, and the leasing of space vacated due to bankruptcy or lease cancellations, which increased NOI by $1.2 million. The increases to same store and same property NOI were partially offset by the impact of vacancy caused by normal course turnover of $3.8 million, unanticipated vacancies that reduced NOI by $1.5 million, and $0.5 million in lower NOI from lease buyouts that have occurred in the last 12 months.

Same store and same property NOI for the nine months ended September 30, 2012 in Canada increased by 1.0% and 1.1% respectively, compared to the same period in 2011, due largely to new leasing which favourably impacted NOI by $11.7 million, renewal and fixed rent steps which increased NOI by $4.4 million, and leasing of space vacated due to bankruptcy or lease cancellations which increased NOI by $3.9 million. The increases to same store and same property NOI were partially offset by the impact of vacancy caused by normal course turnover of $11.1 million, unanticipated vacancies that reduced NOI by $3.8 million and $1.3 million of lower NOI from lease buyouts that have occurred in the last 12 months.

Sequentially, same store and same property NOI in Canada decreased by 0.4% and 0.3% respectively for the Third Quarter compared to the first quarter of 2012 primarily due to an increase in NOI of $1.2 million due to new, renewal leasing and fixed rent steps which positively impacted NOI by $0.3 million, and leasing of space vacated due to bankruptcy or lease cancellations, which increased NOI by $0.3 million. The increases to same store and same property NOI were offset by reduced NOI due to vacancy caused by normal course turnover of $1.2 million, NOI was reduced by $0.2 million from lease buyouts that have occurred in the last 12 months, and adjustments related to tenant recoverable expenses increased by $0.7 million.

Excluding the impact of foreign exchange, the US same store and same property NOI during the Third Quarter decreased by 0.3% when compared to the same period in 2011. Same property NOI for the nine months ended September 30, 2012 increased by 0.1% when compared to the same period in 2011 due to new and renewal leasing and fixed rent steps. Same store and same property NOI increased by 1.4% for the Third Quarter compared to the second quarter of 2012 primarily due to the timing of property tax and operating cost recoveries.

Portfolio Stability

As at September 30, 2012:

  • RioCan's Canadian occupancy rate declined to 97.2%, from 97.5% at June 30, 2012;
  • RioCan's US occupancy rate was flat compared to June 30, 2012 at 97.8%;
  • RioCan's overall occupancy rate was stable at 97.3% compared to June 30, 2012 at 97.4%, and relatively flat compared to 97.5% as at September 30, 2011;
  • The portfolio economic occupancy rate represents the occupied net leaseable area for which tenants are paying rent. The portfolio economic occupancy rate was unchanged at 95.5% compared to June 30, 2012. There is approximately 855,000 square feet for which lease payments are scheduled to start at future dates. The annualized rental revenue for this space is expected to be $18 million, with 91% of this revenue expected to begin paying rent during the next three quarters;
  • In the Third Quarter, RioCan's retention ratio was 84.8% of expiring leases, compared to a retention ratio of approximately 88.9% in the third quarter of 2011. For the nine months ended September 30, 2012, RioCan's retention ratio was 88.8% of expiring leases;
  • RioCan renewed 879,000 square feet in the Canadian portfolio during the Third Quarter at an average rent increase of $2.32 per square foot, representing an increase of 12.9%, compared to 7.2% for the same period in 2011. RioCan renewed 2.9 million square feet in the Canadian portfolio during the nine months ended September 30, 2012 at an average rent increase of $1.96 per square foot, representing an increase of 12.0%, compared to 10.1% for the same period in 2011;
  • RioCan renewed approximately 65,000 square feet of space in the US portfolio during the Third Quarter, at an average rent increase of $1.21 per square foot, representing an increase of 6%. The retention ratio for expiring leases was 96.3%. RioCan renewed approximately 332,000 square feet of space in the US portfolio for the nine months ended September 30, 2012, at an average rent increase of $1.09 per square foot, representing an increase of 7% with a retention rate of 85.8%;
  • During the Third Quarter, at RioCan's interest, new vacancies excluding lease buyouts were 179,000 square feet, (186,000 square feet in the third quarter of 2011). During the quarter, 142,000 square feet of vacant space was leased to new tenants;
  • For the nine months ended, at RioCan's interest, new vacancies were 856,000 square feet (613,000 square feet in the first nine months of 2011). During the nine months, approximately 473,000 square feet of vacant space was leased to new tenants;
  • RioCan's Canadian portfolio is concentrated in Canada's six high growth markets (consisting of Calgary, Edmonton, Montreal, Ottawa, Toronto and Vancouver). Assets in these markets contribute about 67.4% of RioCan's Canadian annualized rental revenue (65.9% at Dec. 31, 2011);
  • National and anchor tenants represented about 85.9% of RioCan's total annualized rental revenue at September 30, 2012, relatively flat compared to 86.0% at September 30, 2011;
  • No individual tenant comprised more than 4.3% of annualized rental revenue. At September 30, 2012, Walmart was RioCan's largest tenant; and
  • Following the recent storm activity in the northeast there was no material damage to RioCan's portfolio, one US shopping centre experienced minor damage to one of the tenant's spaces and no Canadian centres experienced any material damage.

Portfolio Activity and Acquisition Pipeline

During the Third Quarter, RioCan completed three acquisitions of interests in income producing properties (two in Canada and one in the US) at an aggregate purchase price of $369 million, at RioCan's interest (calculated taking into account the US dollar transaction at an average exchange rate of $0.986 CAD per $1 USD), with a weighted average capitalization rate of 5.7%.

Subsequent to quarter end, not including RioCan's transaction with Cedar, RioCan completed the acquisitions of six income properties (four in Canada and two in the US) at a purchase price of $162 million at RioCan's interest (calculated taking into account the US dollar transactions at an exchange rate of $0.990 CAD per $1 USD), comprised of approximately 862,000 additional square feet, at a weighted average capitalization rate of 6.6%.

Subsequent to quarter end and in accordance with the terms of the dissolution of the RioCan/Cedar joint venture, Cedar conveyed its 20% interest in 21 properties owned by the RioCan/Cedar joint venture to RioCan for a gross purchase price of US$119.5 million, representing a capitalization rate of 6.5%.

In addition, RioCan has two income producing properties (one in Canada and one in the US) with an aggregate purchase price of $39.5 million (calculated taking into account the US dollar transactions at an exchange rate of par) under contract where conditions have been waived pursuant to purchase and sale agreements that are expected to be completed during the fourth quarter of 2012.

Acquisitions Completed in the Third Quarter

Canada

On August 31, 2012, RioCan completed its previously announced acquisition of a 100% interest in Georgian Mall in Barrie, Ontario. As previously disclosed in its press release on July 26, 2012 and as described in its Interim Financial Report, the purchase price for the property was $318 million, which equates to a capitalization rate of 5.5% for the income producing components, and in connection with the acquisition, RioCan has arranged six-year mortgage financing in the amount of $185 million which carries an interest rate of 3.09%.

On August 31, 2012, RioCan completed its acquisition from Trinity Development Group of the remaining 50% interest in Trinity Crossing in Ottawa, Ontario. The acquisition increases RioCan's ownership of this property to 100%. Trinity Crossing is a 191,448 square foot shopping centre anchored by Winners/HomeSense, Value Village, Michael's and LCBO with Loblaws as a shadow anchor. The purchase price for RioCan's additional interest was $29 million, which equates to a capitalization rate of 6.00%. In connection with its purchase from its partner, RioCan has assumed its proportionate share of the existing mortgage debt that is in place for this property, representing an additional aggregate principal amount of $14.5 million that carries an interest rate of 5.29% and matures in September 2016.

RioCan completed the acquisition of the remaining 25% interest in Elgin Mills Crossing in Richmond Hill, Ontario. The acquisition increases RioCan's ownership of this property to 100%. Elgin Mills Crossing is a 425,157 square foot new format retail shopping centre (320,328 square feet owned by RioCan; the remainder owned by a tenant) anchored by Costco, Michael's and Staples with Home Depot as a shadow anchor. The purchase price for RioCan's additional interest was $20 million, which equates to a capitalization rate of 5.8%. In connection with the purchase, RioCan has assumed its proportionate share of the existing mortgage debt that is in place for this property, representing an additional principal amount of $11 million that carries an interest rate of 6.05% and matures in October 2018. RioCan benefited from a mark to market adjustment of $1 million in consideration of the above market interest rate.

United States

On August 31, 2012, RioCan acquired from Dunhill Partners, Inc. ("Dunhill") an 85% joint venture interest in Las Colinas Village in Irving (Dallas), Texas. Las Colinas Village is a 104,741 square foot, unenclosed new format shopping centre tenanted by Staples, State Farm Insurance, Starbucks and H&R Block among other tenants. Dunhill has retained a 15% interest in the property and will manage the property on behalf of the joint venture. RioCan acquired its interest in the property for US$23 million, which equates to a capitalization rate of 7.83%. In connection with its purchase, RioCan assumed its proportionate share of the existing mortgage debt that is in place for this property, representing a principal amount of US$15 million that carries an interest rate of 6.23% and matures in February 2021. RioCan benefited from a mark-to-market adjustment in the amount of $3 million in consideration of the above market interest rate.

Acquisitions Completed Subsequent to the Quarter ended September 30, 2012

Canada

Subsequent to quarter end, RioCan and Tanger completed the purchase of Les Factories St. Sauveur and Bromont Outlet Mall on a 50/50 basis at an aggregate purchase price of $95 million, at a capitalization rate of 5.9%. RioCan will provide development and property management services and Tanger will provide leasing and marketing services. The co-owners will assume the aggregate in place financing of $19 million which carries a weighted average interest rate of 5.7% and matures in 2015 and 2020.

Les Factories St. Sauveur is located approximately 60 kms northwest of Montreal, Quebec directly off of Highway 15 in the town of St. Sauveur, Quebec. The property was built in 1980, and expanded in 2006, and is approximately 116,000 square feet with the potential to expand the property on the adjacent 1.1 acres of land which will also be acquired. This well established outlet centre features many national brands such as, Nike, Tommy Hilfiger Outlet, Reebok, Guess and Parasuco.

Bromont Outlet Mall, is located approximately 85 kms east of Montreal, Quebec near the eastern townships directly off of Highway 10 in the town of Bromont, Quebec. The property was built in 2004 and expanded through 2011, and is approximately 162,000 square feet with the potential to expand the property to approximately 251,000 square feet. This well established outlet centre features many national brands such as, Point Zero, Tommy Hilfiger Outlet, Puma, Mexx, and Urban Planet.

RioCan completed the acquisition of the remaining 50% interest in the land lease at Westgate Shopping Centre at a purchase price of $9 million. Westgate Shopping Centre is 165,842 square foot non-grocery anchored retail outlet located in Ottawa, Ontario. RioCan now has a 100% interest in the property, including the land portion.

United States

Subsequent to quarter end and in accordance with the terms of the dissolution of the RioCan/Cedar joint venture, Cedar conveyed its 20% interest in 21 properties owned by the RioCan/Cedar joint venture to RioCan for a gross purchase price of US$119.5 million, representing a capitalization rate of 6.5%. RioCan has assumed Cedar's share of the existing in-place mortgage financing of US$54.4 million in respect of such 21 properties, which carries a weighted average interest rate of 5.2% and a weighted average term to maturity of 5.2 years.

In turn, RioCan conveyed its 80% interest in Franklin Village (located in Franklin, MA) to Cedar for a gross sale price of US$60.1 million (less debt assumed by Cedar from RioCan in the amount of US$34.7 million). Cedar contracted to provide property management services to RioCan for a period of up to one year, cancellable by RioCan on 90 days notice, under similar terms as the property management services previously provided by Cedar. RioCan is in the process of establishing a property management platform in the northeastern US that will allow it to take over property management from Cedar by January 31, 2013. On October, 31, 2012, RioCan served Cedar with a notice of cancellation under the property management agreement, such that RioCan will commence property management of the northeastern US portfolio no later than January 31, 2012.

RioCan completed the previously disclosed acquisition of a 100% interest in Deptford Landing, a 517,057 square foot new format retail centre located in Deptford Township, New Jersey. The purchase price for the property was US$64 million, which equates to a capitalization rate of 7.6%. Cedar will initially manage the property on behalf of RioCan. As part of the acquisition, RioCan assumed the existing mortgage in the amount of US$33 million with an interest rate of 6.1% and maturity date of January 1, 2021.

RioCan's total portfolio in the northeastern US includes 25 properties totalling 5.3 million square feet (including shadow anchors) in the states of Connecticut, New Hampshire, New Jersey, New York, Massachusetts, Maryland, Pennsylvania, and Virginia.

RioCan completed the acquisition of an 85% non-managing interest in Arbor Park with Dunhill for a purchase price of US$26 million at 100% (US$22 million at RioCan's interest) which equates to a capitalization rate of 6.7%. Dunhill, who currently owns a 100% managing interest in the property, will retain a 15% interest and will manage the property on behalf of the joint venture. Arbor Park is a 139,700 square foot new format retail centre located in San Antonio, Texas. Arbor Park is located near the downtown core. The property, which is currently 98% occupied, was built in 1998 and has a weighted average remaining lease term of 4.7 years. The property is anchored by Sprouts Grocery Store, Ross Dress for Less, Office Max and Michaels. Other notable tenants include Dress Barn, GameStop and Payless Shoesource. As part of the acquisition, the joint venture will assume the existing mortgage in the amount of US$17 million (US$14 million at RioCan's interest) with an interest rate of 4.6% and maturity date of July 6, 2016. The amortization period is 30 years.

Acquisitions Under Contract (Firm)

RioCan currently has two income properties (one in Canada and one in the US) under contract where conditions have been waived that, if completed, represent $39.5 million of acquisitions at RioCan's interest, at a weighted average capitalization rate of 6.2%.

Canada

In Canada, RioCan has waived conditions pursuant to a purchase and sale agreement with respect to one property as follows:

The previously disclosed acquisition of a 100% interest in 649 Queen Street West, a 14,200 square foot single-tenant property occupied by CB2, the urban version of Crate & Barrel (there is an additional 6,450 square feet of basement space). The purchase price for the property is $14 million, which equates to a capitalization rate of 4.89% and will be acquired free and clear of financing.

United States

In the US, RioCan has waived conditions pursuant to a purchase and sale agreement with respect to one property as follows:

The acquisition of an 85% non-managing interest in Louetta Central for a purchase price of US$31 million at 100% (US$26 million at RioCan's interest) which equates to a capitalization rate of 6.9%. Dunhill will acquire the other 15% interest and will manage the property on behalf of the joint venture. Louetta Central is a 179,995 square foot non-grocery anchored retail centre located in Spring, Texas. The property, which is currently 100% occupied, has a weighted average remaining lease term of 6.4 years and is anchored by Kohl's, Ross Dress for Less and Michael's. The property will be acquired free and clear of financing.

Acquisition Pipeline

RioCan is currently in negotiations regarding property acquisitions in Canada and the US that, if completed, represent approximately $30 million of additional acquisitions at RioCan's interest (calculated taking into account the US dollar transactions at an exchange rate of par). These transactions are in various stages of negotiations and while efforts will be made to complete these negotiations, no assurance can be given.

Liquidity and Capital

The 12 month rolling EBITDA interest coverage for RioCan at September 30, 2012 was 2.62x (2.77x for the Third Quarter) compared to 2.45x at December 31, 2011. As at September 30, 2012, RioCan's indebtedness net of cash was 43.2% of total assets a decrease of 320 bps from year end (46.4%). RioCan's Net Debt to Adjusted EBITDA at September 30, 2012 was 7.33x, up slightly from 7.30x at December 31, 2011. RioCan's Net Operating Debt to Adjusted Operating EBITDA, which excludes debt related to properties under development, was 7.07x at September 30, 2012 compared to 7.04x at December 2011. As part of RioCan's capital management strategy, it is RioCan's objective to strengthen its balance sheet as well as improve its coverage ratios over time.

RioCan has the continued flexibility to generate additional funds in 2012 through financing maturing loan balances as well as repay additional balloon balances to increase the size of RioCan's pool of unencumbered assets. As at September 30, 2012, RioCan had 62 properties (including 12 unencumbered properties under development) that are unencumbered with a fair value of approximately $647 million.

Mortgage Financing

Canada

In the Third Quarter, RioCan obtained approximately $233 million of fixed-rate mortgage financing at a weighted average interest rate of 3.2% with a weighted average term to maturity of about 5.7 years.

US

In the Third Quarter, RioCan did not obtain any fixed-rate mortgage financing.

Unsecured Debentures

As at September 30, 2012, RioCan had seven series of Debentures outstanding totalling $1.0 billion (December 31, 2011 - six series totalling $827 million).

Lines of Credit

RioCan has four revolving lines of credit in place with three Canadian chartered banks, having an aggregate capacity of $429 million against which, none has been drawn and $25 million has been drawn as letters of credit leaving $404 million available for cash draws under the lines of credit.

Term facilities

During the Third Quarter, RioCan obtained a US$150 million senior secured term facility arranged by Raymond James Bank N.A. The term facility was syndicated to US Bank, N.A. and Bank of America, N.A. The facility is for a term of five years and will carry a floating interest rate of LIBOR plus 150bps. The facility is secured by a portfolio of Canadian assets. As at September 30, 2012, 50% of the facility was drawn.

Development Portfolio

As at September 30, 2012, RioCan had ownership interests in 10 greenfield development projects that will, upon completion, comprise about 8.8 million square feet (4.6 million square feet at RioCan's interest). In addition to its development projects, RioCan continues its urban intensification activities, primarily in the Toronto, Ontario market.

During the Third Quarter, RioCan acquired interests in development properties in Canada at a purchase price of $31 million, at RioCan's interest. During the nine months ended September 30, 2012, RioCan acquired interests in development properties in Canada at a purchase price of $34 million, at RioCan's interest.

RioCan has one development site under firm contract for a purchase price of $16 million, at RioCan's interest. Conditions have been waived and it is expected that this acquisition will close in the fourth quarter of 2012. Additionally, RioCan has $80 million of development property acquisitions (at RioCan's interest) under contract where conditions have not yet been waived. These transactions are in various stages of due diligence and while efforts will be made to complete these transactions, no assurance can be given.

RioCan's Unaudited Interim Consolidated Financial Statements, Management's Discussion and Analysis and a Supplemental Information Package for the three and nine months ended September 30, 2012 are available on RioCan's website at www.riocan.com.

Conference Call and Webcast

Interested parties are invited to participate in a conference call with management on Tuesday, November 6, 2012 at 11:00 a.m. eastern time. You will be required to identify yourself and the organization on whose behalf you are participating.

In order to participate, please dial 416-340-8018 or 1-866-223-7781. If you cannot participate in the live mode, a replay will be available until December 5, 2012. To access the replay, please dial 905-694-9451 or 1-800-408-3053 and enter passcode 9981143#.

Scheduled speakers include Edward Sonshine, O.Ont. Q.C., Chief Executive Officer, Fred Waks, President and Chief Operating Officer and Rags Davloor, Executive Vice President and Chief Financial Officer. Management's presentation will be followed by a question and answer period. To ask a question, press "star 1" on a touch-tone phone. The conference call operator will be notified of all requests in the order in which they are made, and will introduce each questioner.

Alternatively, to access the simultaneous webcast, go to the following link on RioCan's website http://investor.riocan.com/Investor-Relations/Events-Webcasts/default.aspx and click on the link for the webcast. The webcast will be archived 24 hours after the end of the conference call and can be accessed for 120 days.

About RioCan

RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $13.9 billion as at September 30, 2012. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 338 retail properties containing more than 80 million square feet, including 49 grocery anchored and new format retail centres containing 12.4 million square feet in the United States through various joint venture arrangements as at September 30, 2012 . RioCan's portfolio also includes 10 properties under development in Canada. For further information, please refer to RioCan's website at www.riocan.com.

Forward-Looking Information

This news release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, statements made in this News Release (including the sections entitled "Highlights for the third quarter of 2012", "Financial Highlights", "Portfolio Stability", "Portfolio Activity and Acquisition Pipeline", "Liquidity and Capital", and "Development Portfolio"), and other 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. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "outlook", "objective", "may", "will", "would", "expect", "intend", "estimate", "anticipate", "believe", "should", "plan", "continue", or similar expressions suggesting future outcomes or events. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management. All forward-looking statements in this News Release are qualified by these cautionary statements.

These forward-looking statements are not guarantees of future events or performance and, by their nature, are based on RioCan's current estimates and assumptions, which are subject to risks and uncertainties, including those described under "Risks and Uncertainties" in RioCan's Management's Discussion and Analysis for the period ended September 30, 2012, which could cause actual events or results to differ materially from the forward-looking statements contained in this News Release. Those risks and uncertainties include, but are not limited to, those related to: liquidity in the global marketplace associated with economic conditions, tenant concentrations, occupancy levels, access to debt and equity capital, interest rates, joint ventures/partnerships, the relative illiquidity of real property, unexpected costs or liabilities related to acquisitions, construction, environmental matters, legal matters, reliance on key personnel, unitholder liability, income taxes, the investment in the United States of America ("US"), fluctuations in the currency exchange rate between the Canadian and US dollar and RioCan's qualification as a real estate investment trust for tax purposes. Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include, but are not limited to: a stable retail environment; relatively low and stable interest costs; a continuing trend toward land use intensification in high growth markets; access to equity and debt capital markets to fund, at acceptable costs, the future growth program to enable the Trust to refinance debts as they mature; the availability of purchase opportunities for growth in Canada and the US; and the impact of accounting principles adopted by the Trust effective January 1, 2011 under International Financial Reporting Standards ("IFRS"). Although the forward-looking information contained in this News Release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with these forward-looking statements. Certain statements included in this News Release may be considered "financial outlook" for purposes of applicable securities laws, and such financial outlook may not be appropriate for purposes other than this News Release.

The Income Tax Act (Canada) contains provisions which potentially impose tax on publicly traded trusts (the "SIFT Provisions"). However, the SIFT Provisions do not impose tax on a publicly traded trust which qualifies as a real estate investment trust ("REIT"). RioCan currently qualifies as a REIT and intends to continue to qualify for future years. Should this not occur, certain statements contained in this News Release may need to be modified.

Except as required by applicable law, RioCan under takes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise.

Contact Information

RioCan Real Estate Investment Trust
Rags Davloor
Executive Vice President & CFO
(416) 642-3554
www.riocan.com

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New Affordable Housing Open in Regina (2014-04-14)

New Emergency Shelter in Melfort (2014-04-11)

Media Advisory: Canada Mortgage and Housing Corporation (2014-04-11)

Avis aux médias : De nouveaux logements locatifs abordables ouvrent leurs portes à Regina (2014-04-11)

Media Advisory: New Affordable Rental Housing Opens in Regina (2014-04-11)

Toromont to Announce First Quarter 2014 Results on April 24 (2014-04-11)

Nouvelle maison d'hébergement d'urgence à Melfort (2014-04-11)

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TODAY’S TOP CONSTRUCTION PROJECTS

These projects have been selected from 481 projects with a total value of $2,274,238,471 that Reed Construction Data Building Reports reported on Wednesday.

CONDOMINIUM, RETAIL AND OFFICE DEVELOPMENT

$150,000,000 Ottawa ON Negotiated

ROADWORK, DRAINAGE, BRIDGE

$135,000,000 Toronto ON Tenders

ROADWORK, DRAINAGE, BRIDGE

$82,000,000 Toronto ON Tenders

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