INVESTOR DAY 2018 PROPERTY TOUR. April 18, 2018

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1 INVESTOR DAY 2018 PROPERTY TOUR April 18, 2018

2 VALUE PROPOSITION AND FOUR STRATEGIC PILLARS REAL VISION, SOLID GROUND CANADA S MAJOR MARKET PORTFOLIO High quality, necessity based retail, and increasingly mixed-use major markets portfolio Diversified, strong national tenant base Significant upside on rent growth Base for significant NAV growth tremendous intrinsic value to be unlocked Strong executive bench with wealth of experience and proven track record DRIVING ORGANIC GROWTH UNLOCKING INTRINSIC VALUE STRATEGIC ACQUISITIONS STRONG BALANCE SHEET Evolving tenant mix and revenue growth Improving operating efficiency and cost structure Redeveloping prime assets Optimize pads by adding additional GLA Drive ancillary revenues Continuous portfolio pruning Focusing on transitoriented urban intensification in major markets Mostly mixed-use with residential rental and/or condo development Strategic alliances to mitigate risk and create steady fee stream Robust and growing pipeline of well located sites with substantial zoning approved Acquire only the best locations in the six major markets Opportunities to acquire partners interests in today s tight market Highly selective acquisitions of development sites, leveraging existing properties Low leverage Low cost of debt Laddered debt maturity and mostly fixed rate Access to multiple sources of capital Large unencumbered assets pool generating 56.7% of annualized NOI 2

3 LEADERSHIP TEAM EXPERIENCE, INTEGRITY AND FORESIGHT Ed Sonshine O.Ont., Q.C. Founder and CEO Jonathan Gitlin, SVP Investments & Residential 18 years in Real Estate Rags Davloor, President and COO 25 years in Real Estate, Operations & Finance Jeff Ross, SVP Leasing & Tenant Coordination 30 years in Real Estate Qi Tang, SVP and CFO 20 years in Finance & Real Estate John Ballantyne, SVP Asset Management 24 years in Real Estate Strong executive bench with a wealth of experience and proven track record Fully integrated REIT with all disciplines inhouse including: o Investments o Leasing o Asset Management o Development & Construction o o Property Management Finance, Legal and Human Resources Andrew Duncan SVP Developments 18 years in Development, 12 years in Real Estate Danny Kissoon SVP Operations 32 years in Real Estate Jennifer Suess SVP General Counsel & Corporate Secretary 16 years in Law with a focus on Real Estate Trusted and respected, with deep industry knowledge and relationships 3

4 PROPERTY TOUR PROPERTIES INDUSTRY LEADING PRESENCE IN THE TORONTO CORE Property Name 1 RioCan Hall 2 The Well 3 King Portland Centre (Kingly) 4 Shoppes on Queen West 5 Bathurst College Centre 6 College Ave. & Manning Ave. (Strada) College St Dupont Ave. (Litho.) 9 Yonge Eglinton Centre 10 Northeast Corner Yonge Eglinton (eplace and ecentral) 11 Sunnybrook Plaza 12 RioCan Leaside 13 Shops on Summerhill 14 Yorkville 4

5 GREATER TORONTO AREA (GTA) FOCUS TOUR AGENDA Tour Stop Name RioCan Interest NLA SF 000s on Completion (100%) Development Completion % Leased/ Preleased Page 1 RioCan Hall 100% TBD TBD 100% 6 2 The Well 50% - Commercial 40% - Residential Air Rights 50%- Building 6 2,938 Commercial Building N/A 7 3 King Portland Centre (Kingly) 50% / % 10 4 Shoppes on Queen West 100% % 12 5 Bathurst College Centre 100% % 13 6 College Ave. & Manning Ave. (Strada) 50% % College St. 50% % Dupont Ave. (Litho.) 50% % 16 9 Yonge Eglinton Centre 100% 1, (expansion) 99.3% Northeast Corner Yonge Eglinton (eplace and ecentral) 50%* / % Sunnybrook Plaza 50% % (current) RioCan Leaside 100% 1,307 TBD 100% Shops on Summerhill 75% TBD TBD 100% Yorkville 50% ~500 TBD N/A 23 5

6 PRIME DOWNTOWN LOCATION RIOCAN HALL TORONTO ON Location: Prime location in the heart of the entertainment district in Toronto s Downtown corridor Intersection: Richmond St. and John St. NLA: 227,326 sf Ownership: 100% Major Tenants Cineplex Michaels Marshalls Goodlife Fitness Potential for future intensification considering the prime location in downtown Toronto Demographics in 5km radius: Population: 526k Average household income: $118k+ 6

7 MIXED-USE DEVELOPMENT THE WELL 7

8 MIXED-USE DEVELOPMENT THE WELL, Location: 7.7 acre site situated at the gateway to downtown Toronto, at Front and Spadina. Transit oriented adjacent to the site of a proposed intercity GO Train stop. Ownership Structure: Commercial: 50% (J.V. with Allied Properties REIT Residential: 40% (J.V. Allied Properties REIT and WNUF2*) Residential Building 6: 50% (J.V. with Woodbourne ) Property Type: Mixed-use with 500,000 sf retail, 1.1 M sf office and ~1,800 residential units (condo and rental) at 100% Zoning Status: Zoned Estimated PUD Costs (RioCan s interest): $675 M, Residential Building 6 - $129 M Estimated project completion: Commercial , Residential Building Demographics 5KM radius: Population: 485k Average household income: $114k+ Innovative, amenity rich design including a European inspired food hall Office is targeted LEED platinum Teaming with Enwave for the first low-carbon resilient cooling and heating option for the property and surrounding community *WNUF2 holds a 20% interest in the residential portion until the sale of air rights to Tridel and Woodbourne upon completion of the underground and podium structures. 8

9 MIXED-USE DEVELOPMENT THE WELL, TORONTO ON Surfacing Value RioCan and its partners acquired the former Globe and Mail head office and surrounding land for $170 million in 2012 and 2013 Agreement in place to sell 1.1M sf of air rights to residential developers Tridel and Woodbourne for approximately $180 million upon completion of the underground and podium structures Upon completion, an estimated 10,000 people will live and work at the property A comprehensive signage master plan agreement has been approved by the city. Interior and exterior digital signage will generate significant ancillary revenue 9

10 RESIDENTIAL INTENSIFICATION KING PORTLAND CENTRE, Location: A 1.5 acre site in Toronto s trendy downtown west with direct access to transit Property Type: Mixed-use with office, retail and condominiums Leasing/Sales: 134 condominium units fully sold out ahead of price expectations. New office 256,000 sf (at 100%) 100% leased to Shopify and Indigo: retail all but 7,000 sf leased. Existing 55,000 sf of office space adjacent to the building is 100% leased with substantial rent upside upon project completion Ownership: 50% (JV with Allied Properties REIT) Incremental Commercial NLA: 166,000 sf at RioCan s Interest Zoning/Status: Zoned Estimated PUD Costs (at RioCan s Interest): $82.4 M Estimated Project Completion: 2018/2019 Demographics in 5km radius: Population: 823k Average household income: $115k+ Office tower is targeted LEED platinum 10

11 RESIDENTIAL INTENSIFICATION KING PORTLAND CENTRE (KINGLY) 11

12 RESIDENTIAL INTENSIFICATION SHOPPES ON QUEEN Location: Prime location in Toronto s trendy Queen west with direct access to transit Property Type: Mixed-use with three floors of retail and 90 condominium units Leasing: Retail component is 100% occupied. NLA: 89,419 sf Major Tenants Loblaws, Winners, Bank of Montreal Ownership: 100% NLA: 89,400 sf Completed: 2011 Demographics in 5km radius: Population: 823k Average household income: $115k+ 12

13 MIXED-USE DEVELOPMENT BATHURST COLLEGE CENTRE, TORONTO Location: A 1.3 acre site situated in the western downtown corridor in Toronto, at Bathurst Street and College Avenue. Directly across street from Toronto General Hospital Ownership Structure: 100% Property Type: 139,000 sf mixed-use office and retail Leasing status: 79% pre-leased Tenants: UHN, Winners, Sobeys, Bank of Nova Scotia Zoning/Status: Zoned Estimated PUD Costs: $107.4 M Estimated project completion: 2019 Demographics in 5km radius: Population: 590k Average household income: $117k+ 13

14 RESIDENTIAL INTENSIFICATION COLLEGE & MANNING (STRADA), Location: Prime 0.5 acre site located in Toronto s Little Italy district with direct access to transit Property Type: Mixed-use, office, retail and rental residential Leasing (Commercial Component): 79% Ownership: 50% (JV with Allied Properties REIT) Incremental Commercial NLA: 56,000 sf at RioCan s Interest (113,000 sf at 100%) Zoning Status: Zoned Estimated PUD Costs (at RioCan s Interest): $30.6 M Project Start / Anticipated Completion: 2018/ Late 2021 Demographics in 5km radius: Population: 594k Average household income: $117k+ 14

15 MIXED-USE DEVELOPMENT 491 COLLEGE STREET WEST Location: Prime site located in Toronto s Little Italy Property Type: Mixed-use, office, retail Leasing: 63% Major Tenants: LCBO Ownership: 50% (JV with Allied Properties REIT) Commercial NLA: 12,000 sf at RioCan s Interest (24,000 sf at 100%) Estimated PUD Costs (at RioCan s Interest): $12.0 M Anticipated Completion: 2018 Demographics in 5km radius: Population: 597k Average household income: $117k+ 15

16 RESIDENTIAL INTENSIFICATION 740 DUPONT AVE. (LITHO.), Location: Toronto, Ontario Property Type: Located on a 1.4 acre site, this mixeduse retail and residential containing 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. Ownership: 50% (JV with Woodbourne) Project Start / Anticipated Completion: 2017 / 2021 Zoning status: Zoned Estimated PUD Cost (at RioCan s interest): $70.2 M Surfacing Value Site was acquired in 2010, formerly occupied by Grand Touring automobile until November 2017 Well located along a busy thoroughfare in a densely populated area of Toronto. A short walk to the Bloor- Danforth subway line Demographics in 5km radius: Population: ~700k Average household income: ~ $120k 16

17 RESIDENTIAL INTENSIFICATION 740 DUPONT AVE. (LITHO.), 17

18 STRATEGIC REDEVELOPMENT RIOCAN YONGE EGLINTON CENTRE, TORONTO Intersection: Yonge St. and Eglinton Ave. East Ownership: 100% Total GLA: 1,056,285 sf Property Concept: Mixed-use Project Completion: 2016 Surfacing Value: Purchase Price (2007): $223 million Capital Invested: $110 million Current Value: $574 million NOI at acquisition: $13 million Value Stabilized NOI: $26 million 73% increase in value over costs Strategically evolved building aesthetics and tenant mix to meet consumer needs Incremental revenue through leasing of the digital screens on the building interior and exterior 18

19 RESIDENTIAL INTENSIFICATION YONGE & EGLINTON NORTHEAST CORNER (ecentral at eplace) Location: A 3.2 acre site at the heart of one of Toronto s busiest and most popular intersections. Unparalled access to the Yonge subway and new Eglinton Crosstown LRT Property Type: Mixed-use with retail, residential tower with 466 units and condominium tower with 623 units Ownership: 50% (JV with Metropia and Bazis) Leasing/Sales: All 623 condominium units have been presold. Retail is 82% leased (anchored by TD Bank) Rental Residential Units: 466 Units Zoning Status: Zoned Anticipated Completion: 2018 & 2019 Surfacing Value Agreement in place to acquire the partners 50% interest in the 466 unit rental residential tower at cost plus $10M Agreement in place to acquire partner s 50% interest in the retail NLA at a 7% capitalization rate upon completion of the project Demographics in 5km radius: Population: 495k Average household income: $156k+ 19

20 RESIDENTIAL INTENSIFICATION SUNNYBROOK PLAZA, Location: A 2.3 acre site located on new Eglinton LRT in an affluent neighbourhood in midtown Toronto Ownership: 50% (JV with Concert Properties) Property Type: Mixed-use with one 16 storey and one 11 storey rental residential towers (approx. 427 units) Commercial NLA: 22,000 sf at RioCan s Interest Project Start / Anticipated Completion: 2020/2023 Surfacing Value: RioCan acquired the centre in 2007 for $22.8 million (100%) Concert paid RioCan $26.3 million in June 2017 for a 50% interest in the development More than doubled the value in ten years, before significant value creation upon this project s completion Demographics in 5km radius: Population: 450k Average household income: $164k+ 20

21 RESIDENTIAL INTENSIFICATION RIOCAN LEASIDE CENTRE, Location: Approximately 8.8 acre site located on new Eglinton LRT in an affluent neighbourhood in midtown Toronto Ownership: 100% Property Type: Mixed-use Retail, office and residential Project Start / Anticipated Completion: TBD Surfacing Value: There is significant value to be unlocked at the site through the conversion of the current 133,000 square feet of retail into approximately 1.3 million square feet of retail, office and residential uses (1,400+ units) The site currently contemplates the inclusion of a community centre and public space Demographics in 5km radius: Population: 450k Average household income: $164k+ 21

22 POTENTIAL RESIDENTIAL INTENSIFICATION THE SHOPS OF SUMMERHILL Location: Located in the heart of the affluent neighbourhood of Summerhill in a heritage site near the Summerhill Subway station. Intersection: Yonge St. and Summerhill Property Type: Retail Occupancy: 100% Ownership: 100% Tenants: Terroni, Harvest Wagon Surfacing Value Site acquired in 2015, and we are in the application stages to intensify the site with residential uses. Demographics in 5 km radius: Population: 714k Average household income: $129k+ 22

23 MIXED-USE DEVELOPMENT YORKVILLE, Location: Transit oriented and in the heart of prestigious Yorkville, one of Toronto s most high-end shopping and residential areas. Property Type: Mixed-use with potential for 0.5M sf of luxury condominium and retail uses and up to 82 rental units Ownership: 50/25/25 joint venture among RioCan, Metropia and Capital Developments Zoning Status: Zoning Bylaw Amendment submitted April 2018 Surfacing Value: As of February 2018 the partners have completed acquisitions of adjacent properties substantially required for the intensification project RioCan has agreed to purchase the partners interest in the retail portion upon completion at a 6% cap rate and has the right of first opportunity to acquire the residential rental units Demographics in 5 km radius: Population: 683k Average household income: $123k+ 23