MANAGEMENT INVESTOR PRESENTATION Year end 2017 Updated: February 27, 2018
NON-GAAP MEASURES RioCan s consolidated financial statements are prepared in accordance with IFRS. Consistent with RioCan s management framework, management uses certain financial measures to assess RioCan s financial performance, which are not generally accepted accounting principles (GAAP) under IFRS. The following measures, RioCan s Proportionate Share (or Interest), Funds From Operations ( FFO ), Net Operating Income ( NOI ), Adjusted Earnings before interest, taxes, depreciation and amortization ( Adjusted EBITDA ), Debt to Adjusted EBITDA, Same Property NOI, Interest Coverage, Debt Service Coverage, Fixed Charge Coverage, and Total Enterprise Value as well as other measures discussed in this presentation, do not have a 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 flow, and profitability. For a full definition of these measures, please refer to the Non-GAAP Measures in RioCan s Management s Discussion and Analysis for the period ended December 31, 2017. RioCan uses these measures to better assess the Trust s underlying performance and provides these additional measures so that investors may do the same. PEER DATA PRESENTATION FORWARD LOOKING INFORMATION Certain information included in this presentation contains forward-looking statements within the meaning of applicable securities laws 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 in our most recent 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 a result of new information, future events or otherwise. RioCan data and statistics are based on December 31, 2017 information. Peer group included published results where provided from First Capital Realty Corp. (FCR), SmartCentres REIT (SRU.UN), Choice Properties REIT (CHP.UN), CT REIT (CRT.UN), and Crombie REIT (CRR.UN). Certain slides contain a peer comparison that was based on the respective issuer s reported information as at December 31, 2017. 2 2
ABOUT RIOCAN GROWTH DRIVEN BY INSIGHT Quick Facts Enterprise Value $13.9 B Annualized Revenue from Six Major Market: 76.1% Number of Properties 289 Net Leasable Area (NLA) BC 44M sf Same Property NOI 2.1% Committed Occupancy 96.6% GTA Focus - % of Annualized Rental Revenue 41% Peer Average 1 23% Revenue from National Tenants 84.8% Average Net Rent $17.75 Renewal Spread full year 2017 5.8% Vancouver 4.7% 4.8% Edmonton Calgary 8.6% 11.6% Ottawa Montreal Toronto 5.4% 40.9% Robust Development Program Tremendous source of future NAV growth Canada s largest REIT, focused on the ownership, management and development of high quality, necessity based retail, increasingly mixed-use properties in Canada s six major markets Founded in 1993 25 year track record Robust 26.3 1 M sf development pipeline, 12.3 M sf or 47% already approved for zoning mostly mixed-use Diversified and evolving tenant mix Rated BBB with stable outlook by S&P and BBB (high) by DBRS 70 60 50 40 30 20 10 0 ON RioCan NLA RioCan NLA including Incremental NLA from Development* 22.2M incremental NLA or 53% of existing NLA 2 41.8M existing IPP NLA 1. Source: company reports; Peers: FCR, CHP, CRT; no data on CRR and SRU 2. Includes incremental NLA of 22.2M sf plus 4.1M sf that is currently income producing. Assumes all development projects per the MD&A for the period ended December 31, 2017 are completed and assumes no additional development, acquisitions, or dispositions
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 STRONG BALANCE SHEET STRATEGIC ACQUISITIONS 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 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 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 4
CANADA S MAJOR MARKET PORTFOLIO WHERE CANADIANS SHOP, LIVE AND WORK CANADA S MAJOR MARKET PORTFOLIO High quality, necessity based retail, and increasingly mixed-use major markets portfolio CANADA S MAJOR MARKET 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 5
CANADA S SIX MAJOR MARKETS WHERE THE POPULATION GROWTH IS Cumulative Population Growth 2006 as Base Year 64.6% 26.2% 8.7% 3.7% 8.1% 17.8% 2006 2011 2017 2036 Forecast Six Major Markets Secondary markets Cumulative population growth between 2006 and: 2017 2036 Forecast Six major markets 26.2% 64.6% Secondary markets 8.1% 17.8% By 2036, more than half of Canadians will live in Canada s six major markets 2006, 2017 Data: Statistics Canada 2036 Data: Statistics Canada, Provincial and Municipal population forecasts 6
CANADA S MAJOR MARKET PORTFOLIO WHERE CANADIANS SHOP, LIVE AND WORK Major Market Revenue 76.1% >90% GTA Revenue Focus 40.9% >50% SP NOI Growth ~2.1% >3% Avg. Age Portfolio (yrs.) 24 19 2017 Vision 2017 Vision 2017 Vision 2017 Vision Improved portfolio quality and resilience to the changing retail environment Enhanced growth profile Improved operating efficiencies, newer assets, and less capex Improved cost structure 7
CANADA S MAJOR MARKET PORTFOLIO WHERE CANADIANS SHOP, LIVE AND WORK Sales prices to-date is in line with IFRS value Disposition Progress as of Feb 13, 2018 Transaction type Value (M) Weighted average cap rate Closed and Firm $511.9 6.1% Conditional $58.0 6.7% Total to Date $569.9 6.1% $569.9M progress to-date in four months since the October 2017 announcement representing approximately 28% of the $2.0B disposition target Disposition progress Feb. 13, 2017 are located in: o o o o Fredericton in New Brunswick Hamilton, Orillia, Sudbury, Collingwood and St. Catharines in Ontario Duncan, Kelowna, Oliver, Vernon, British Columbia and Yorkton in Saskatchewan 8
CONSISTENT GROWTH IN FUNDS FROM OPERATIONS FROM CONTINUING OPERATIONS 3-Year CAGR for Continuing Operations FFO/Unit*: 9.9% $2.50 Well-timed exit from U.S. retail market $2.00 $1.65 $1.94 $1.68 $1.79 $1.50 $1.00 $0.50 $1.34 Includes $88.3M (or $0.28/unit) Target Settlement $1.62 $1.53 $1.78 $0.00 2014 2015 2016 2017 Continuing Operations FFO/Unit Discontinued Operations FFO/Unit (US) * Continuing and discontinued operations FFO per unit is calculated based on disclosed total continuing and discontinued operations FFO, respectively, divided by the weighted average number of units (diluted) for the respective years. 9
STAGGERED LEASE MATURITY WITH RENT GROWTH OPPORTUNITY LEASE MATURITY AND EXPIRING RENT Lease maturity Expiring Rent 20.00% $25.00 18.00% 16.00% 14.00% 12.00% $19.23 $18.44 12.7% $17.51 $18.48 11.8% 11.8% $20.23 $20.00 $15.00 10.00% 8.00% 8.2% 9.7% $10.00 6.00% 4.00% $5.00 2.00% 0.00% 2018 2019 2020 2021 2022 $- Favorable expiry profile that balances stability with opportunity for growth on renewal Average lease term for Top 30 tenants 7.0 years 10
DRIVING GROWTH IN SAME PROPERTY NOI (SPNOI) SAME PROPERTY NOI 4.0 3.0 3.1% Highest since 2010 >3% 2.0 1.0 1.1% 1.0% 1.3% 1.6% Target Departure 0.5% 2.1% 0.0 (1.0) (2.0) Target (1.8)% Departure Highest since 2010 (3.0) 2010 2011 2012 2013 2014 2015 2016 2017 Vision 2017 SPNOI growth for: o RioCan s major market properties: 2.2% o RioCan s secondary market properties: 1.7% 2018 annual SPNOI guidance: 2.0% to 3.0% 11
GREATER TORONTO AREA (GTA) FOCUS PERCENTAGE OF RENT FROM THE GTA EXCEEDS OUR PEERS REI Peer Average 41.9% 42.8% 41.7% 41.7% 40.9% 34.6% 36.8% 32.0% 24.0% CONSISTENTLY 25.2% 25.6% ABOVE 22.0% 95% 23.1% 23.3% 2011 2012 2013 2014 2015 2016 2017 Source: company reports; Peers: FCR, CHP, CRT; no data on CRR and SRU Strong, consistent, industry leading presence in the Greater Toronto Area, which has one of the highest population and economic growth profiles in the country 12
GREATER TORONTO AREA (GTA) FOCUS INDUSTRY LEADING PRESENCE IN THE TORONTO CORE AND RioCan First Capital Realty SmartCentres REIT 13
GREATER TORONTO AREA (GTA) FOCUS ACROSS THE GTA RioCan First Capital Realty SmartCentres REIT 14
EVOLVING & RESILIENT TENANT MIX ADAPTING TO THE EVER CHANGING RETAIL ENVIRONMENT Retailer Category % of Rent 2017 Change since 2007 Key Brands Grocery/ Pharmacy Liquor/ Restaurant 27.8% 3.3% Personal Services 20.3% 4.2% Value Retailers 15.2% 2.6% Specialty Retailers 10.2% 0.1% Department Stores/ Apparel 8.9% (7.4%) Furniture and Home 9.9% 1.5% Entertainment and Hobby 3.1% (2.6%) Movie Theatres 4.6% (1.7%) 15
CONSISTENTLY HIGH OCCUPANCY COUPLED WITH STRONG RENT GROWTH 100.0% 90.0% 97.4% 97.6% 97.4% 96.9% 97.0% Target Departure 95.6% 96.6% $18.00 94.0% $17.75 $17.59 $17.50 80.0% $16.69 $17.11 $17.00 $16.50 70.0% $16.08 $16.00 60.0% $15.70 $15.50 50.0% 40.0% $14.82 $15.21 CONSISTENTLY ABOVE 95% $15.00 $14.50 $14.00 30.0% $13.50 20.0% 2010 2011 2012 2013 2014 2015 2016 2017 Committed occupancy Average net rent rent $13.00 Average net rent growth also reflects the improvements in the overall quality of the portfolio as RioCan increased its major market focus over time 16
STRONG RETENTION RATIO OUTPERFORMING AND WIDENING THE GAP RELATIVE TO PEERS REI Peers - Weighted Average 88.1% 89.7% 91.1% 86.2% 84.8% 85.7% 85.8% 75.9% 78.5% CONSISTENTLY ABOVE 95% 72.5% 2013 2014 2015 2016 2017 Source: company reports; Peers: CHP and SRU (no data for FCR, CRR, CRT) Peer average calculation is weighted by square feet renewed RioCan has maintained a consistent strong retention rate and continues to broaden the gap with our peers Strong track record of tenant retention averaging 89.2% since 2009 relative to 82.9% for the peer average 17
LEASE RENEWAL SPREAD OUTPERFORMING PEERS IN 2017 REI Peers - Weighted Average 11.4% 11.4% 7.2% 8.7% 8.4% 8.1% 6.1% Target 6.0% Departure CONSISTENTLY ABOVE 95% 5.4% 5.8% 2013 2014 2015 2016 2017 Source: company reports; Peers: FCR, CHP, CRR and SRU (no data for CRT) Peer average calculation is weighted by square feet renewed RioCan consistently outperformed peers prior to Target departure in 2015 and returned to outperformance as new tenants are opening in the redeveloped space 18
OPTIMIZING PORTFOLIO FOR CURRENT MARKET ENVIRONMENT GROWING EVOLVING Home Furnishings, Food, Fitness, Beauty and Value Retailers continue to be bright spots in the retail landscape, with numerous brands adding additional physical locations Small format service-oriented retail performing well, numerous tenants expanding Continued urban centre growth from national gym operators and expansion of smaller, boutique-type operators. Quick Service Restaurants aggressively growing Value retailers such as Winners, Marshalls, Dollarama, etc. are rapidly expanding New specialty grocers are appearing and others, such as Nations and Farm Boy are expanding Shifting demand for large formats Some pressure from the larger format tenants upon renewal as they have options to relocate and right-size their existing boxes Relocations open up opportunities for large format, value retailers who are aggressively growing (e.g. TJX and Lowe s) DECLINING Full price fashion continues to struggle Department stores reporting soft fashion sales Bankruptcies continue both north and south of the border Small format fashion retailers not opening new locations 19
WELL DIVERSIFIED NATIONAL TENANT BASE NO SINGLE TENANT OVER-EXPOSURE Top 10 Tenant Name Annualized Rental Revenue Number Of Locations NLA (Sq. Ft. in '000s) Weighted Avg Remaining Lease Term (Yrs) 1 4.8 % 80 2,067 7.5 2 4.3 % 82 2,050 4.8 3 4.2 % 29 3,607 9.3 4 3.9 % 27 1,443 7.4 5 3.9 % 72 1,942 6.8 6 3.4 % 49 1,999 6.7 7 1.8 % 104 504 7.0 8 1.8 % 13 1,517 10.4 9 1.6 % 83 760 6.3 10 1.6 % 25 898 8.4 TOTAL 31.3% 564 16,789 7.3 Peer Average (iii) 67.7% -- -- -- (i) (ii) (iii) Loblaws includes Shoppers Drug Mart, No Frills, Fortinos, Zehrs and Maxi. Canadian Tire Corporation includes Canadian Tire/PartSource/Mark s/sport Mart/ Sport Chek/Sports Experts/National Sports/Atmosphere. Source: company reports; Peers: FCR, CHP, CRT, CRR and SRU 20
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: Investments Leasing Asset Management Development & Construction 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 21
STRATEGIC PILLAR ONE: DRIVING ORGANIC GROWTH OPTIMIZING AND FUTURE PROOFING OUR PORTFOLIO CANADA S MAJOR MARKET PORTFOLIO DRIVING ORGANIC GROWTH Evolving tenant mix and revenue growth Improving operating efficiency and cost structure Redeveloping prime assets Optimize pads and add additional GLA Drive ancillary revenues Continuous portfolio pruning 22
DRIVING ORGANIC GROWTH ENHANCING PRIME ASSETS Burlington Mall, Burlington Ontario 2018 $65M redevelopment and renovation of this iconic centre in Canada s Best Mid-Sized City (voted five years in a row) Rebranded to Burlington Centre Renovated food court Strategically remerchandised (former Target location): Confirmed new tenancies include Indigo, Denninger s Foods of the World, Sportchek and Winners 23
COMPLETED DEVELOPMENTS GREENFIELD DEVELOPMENT SAGE HILL CROSSING, CALGARY AB Location Located in a growing residential suburbs in Northwestern Calgary Ownership Structure 50% (JV with KingSett) Property Type New format retail Substantially completed in Q4 2017 380,000 sf Walmart and Loblaws anchored centre The first Loblaws City Market banner in Calgary Excellent mix of strong national tenants: London Drugs, Dollarama, Scotiabank, McDonalds, Royal Bank of Canada Demographics in 5km radius: Population: 95k Average household income: $145k 24
DRIVING ORGANIC GROWTH STRATEGIC REDEVELOPMENT RIOCAN YONGE EGLINTON CENTRE, TORONTO Intersection: Yonge St. and Eglinton Avenue East Ownership: 100% Total GLA: 1,056,285 sf Property Concept: Mixed-use Project Completion: 2016 Surfacing Value: Purchase Price (2007): $223 million Current Value: $574 million NOI at acquisition: $13 million Value Stabilized NOI: $26 million 257% increase in value since acquisition Strategically evolved tenant mix to meet consumer needs Incremental revenue through leasing of the digital screens on the building interior and exterior 25
CAPITALIZING ON RE-LEASING OPPORTUNITIES TARGET RE-LEASING & SEARS UPDATE Target Re-leasing Re-leasing of former Target space 1.7 M sf Substantially completed Q4 2017 Annual net rent revenue from releasing tenants: $14.0 M Annual rent revenue paid by Target of $10.6 million Annual net rent increase over Target rent: $3.4 million or 32.1% Significant capital recovered by way of settlement with Target of $88.3M (at RioCan s interest) Greater customer appeal and traffic Stronger, more diversified tenants Sears Update Sears departure left 381,000 sf of space to re-lease at RioCan s interest (vs. Target 1.7M sf) Completed leases, conditional leases or leases in advanced negotiations to replace 133% of the net revenue and while only representing 84% of the former Sears GLA Leasing is much less complex than leasing former Target spaces Replacement tenants will be stronger and more diversified Properties will have broader customer appeal and replacement tenants will drive incremental traffic 26
STRATEGIC PILLAR TWO: UNLOCKING INTRINSIC VALUE REALIZING THE POTENTIAL OF OUR CORE ASSETS CANADA S MAJOR MARKET PORTFOLIO UNLOCKING INTRINSIC VALUE Focusing on transit-oriented urban intensification in major markets Mostly mixed-use with residential rental and/or condo development Strategic alliances to mitigate risks and create steady fee stream Robust and growing pipeline of well located sites with substantial zoning approved 27
UNMATCHED PORTFOLIO OF URBAN MIXED-USE DEVELOPMENT PROPERTIES Yonge Eglinton Northeast Corner King & Portland Sunnybrook Plaza Yonge Sheppard Centre Gloucester Residential Phase I 28
SOURCES OF TREMENDOUS NAV GROWTH ROBUST DEVELOPMENT PIPELINE 70 60 50 40 22.2M incremental NLA 1 or 53% of existing NLA 2 30 20 41.8M existing IPP NLA 10 0 Millions sf. RioCan NLA RioCan NLA including Incremental NLA from Development* Strong, major market, urban focused development pipeline with high quality projects in prime locations, predominantly transit oriented Risk mitigation via staggered development starts and the use of strategic alliances Maintain a disciplined approach to capital allocation and maintain leverage in the 38%-42% debt to asset range 1. Total development pipeline of 26.3M sf includes incremental NLA of 22.2M sf plus 4.1M sf that is currently income producing 2. Assumes all development projects per the MD&A for the period ended December 31, 2017 are completed and assumes no additional development, acquisitions, or dispositions 29
TREMENDOUS SOURCES OF CASH FLOW & NAV GROWTH PIPELINE IS EXPECTED TO CONTINUE TO GROW Total Pipeline by Zoning Status (26.3M* sf) Total Pipeline by Project Type Future est. density, 8.7m sf, 33.2% Zoned, 12.3m sf, 46.7% Mixed-Use Residential 25.1m sf, 95.6% Residential & Air Rights 17.2m sf, 65.3% Commercial, 7.0m sf, 27.8% Application submitted, 5.3m sf, 20.1% Commercial 1.1m sf, 4.4% Residential Inventory 1.0m sf, 3.9% Nearly 50% or 12.3M sf with zoning approved and 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 * Includes 22.2M sf of incremental NLA and 4.1M sf of NLA which is currently income producing. All data at RioCan s interest. 30
TREMENDOUS SOURCES OF CASH FLOW & NAV GROWTH SELECTED DEVELOPMENT COMPLETIONS OVER THE NEXT THREE YEARS Bathurst College Centre Gloucester Phase I The Well Phased completion 2020-2023 King Portland Centre Yonge & Eglinton Northeast Corner 740 Dupont Brentwood Village At RioCan s Interest 2018 2019 2020 Annual Completed NLA 693,000 813,000 1,302,000 Cumulative NLA 693,000 1,506,000 2,808,000 % of NLA* 1.7% 3.6% 6.7% Development completions of 2.8M sf through 2020 are expected to generate approximately $54M of annualized NOI at RioCan s interest * Income producing NLA of 41,807k sf as at December 31, 2017 31
UNLOCKING THE VALUE OF TRANSIT-ORIENTED ASSETS URBAN TORONTO HIGHLIGHTS: SELECTED HIGH DENSITY, LOCATIONS Demographics, 5km radius Dense population*: 481,000 people Desirable demographic*: HH Income: $130,000+ Post-secondary education: 65%+ 7 Selected Urban Toronto RioCan Developments 1 2 3 4 5 6 7 8 9 10 11 12 '000s sf (100%) Yonge-Sheppard Centre 412 555 College 113 King Portland Centre 425 Yonge & Eglinton 707 The Well & Building 6 2,938 740 Dupont 181 Sunnybrook Plaza 316 Queensway 614 Dufferin Plaza 582 RioCan Leaside Centre 1,307 Lawrence Square 94 RioCan Hall 736 13 14 491 College 24 Bathurst College Centre 139 SELECTED URBAN TORONTO 8,588 Legend Under Development Future Development Potential TTC Existing TTC Under Development TTC Station Planned Rapid Transit Line *Average demographics within a 5km radius of RioCan Urban Toronto development sites 32
UNLOCKING THE VALUE OF TRANSIT-ORIENTED ASSETS BRAMPTON/MISSISSUAGA HIGHLIGHTS: SELECTED HIGH DENSITY LOCATIONS Selected Brampton/Mississauga RioCan Future Development Potential '000s sf (100%) 1 1 2 3 Shoppers World Brampton 4,200 RioCan Sandalwood Square (Ph. I) 180 RioCan Grand Park 330 Selected Brampton/Mississauga TOTAL 4,710 With three shopping centres and approximately 82 acres of land on this LRT line, RioCan is uniquely positioned to take advantage of future intensification opportunities 2 Demographics, 5km radius Dense population*: 270,000 people+ Desirable demographic*: HH Income: $100,000+ Post-secondary education: 50%+ 3 *Average demographics within a 5km radius of selected RioCan Brampton/Mississauga development sites 33
UNLOCKING THE VALUE OF TRANSIT-ORIENTED ASSETS CALGARY HIGHLIGHTS: SELECTED HIGH DENSITY LOCATIONS 1 2 3 1 2 3 Selected Calgary RioCan Future Development Potential 1 2 3 '000s sf (100%) Brentwood Village 145 5 th & Third East Village 755 Southland Crossing 972 Selected Calgary TOTAL 1,872 Demographics, 5km radius Dense population*: 170,000 people+ Desirable demographic*: HH Income: $137,000+ Post-secondary education: ~60% *Average demographics within a 5km radius of selected RioCan Calgary development sites 34
UNLOCKING THE VALUE OF TRANSIT-ORIENTED ASSETS OTTAWA HIGHLIGHTS: SELECTED HIGH DENSITY LOCATIONS 2 1 Selected Ottawa RioCan Development Potential 1 2 '000s sf (100%) Gloucester/Frontier 667 Lincoln Fields 1,000 SELECTED OTTAWA POTENTIAL TOTAL Legend 1,667 Under Development Future Development Potential Demographics, 5km radius Dense population*: 150,000 people+ Desirable demographic*: HH Income: ~ $100,000 Post-secondary education: ~60% *Average demographics within a 5km radius of selected RioCan Ottawa development sites 35 35
UNLOCKING INTRINSIC VALUE RESIDENTIAL INTENSIFICATION GLOUCESTER RESIDENTIAL PHASE I, OTTAWA Location: Located on a 7.1 acre portion of RioCan's Gloucester Silver City Shopping Centre along new Confederation LRT line at the Blair Station in Ottawa Ownership: 50% (JV with Killam Apartment REIT) Property Type: Rental Residential, Phase I contains a 23 storey tower with 222 units (at 100%) Zoning status: Zoned Project Completion: 2019 Surfacing Value: Zoning approved for three additional residential towers containing the potential for up to 840 units Transitioned use from 77,000 sf of struggling fashion retail to a 23 story desirable rental residential building. Retail mix at our adjacent shopping centre was evolved and now includes a strong, diverse mix of tenants including Cineplex theatre, Indigo, Goodlife and numerous restaurants Proposed Demographics in a 5km radius: Population: 450k Daytime population: 457k Average household income: $164k+ Adjacent to CSIS headquarters: 2,000+ employees Leading edge development that will maximize efficiency via a geothermal energy system for heating and cooling 36
UNLOCKING INTRINSIC VALUE RESIDENTIAL INTENSIFICATION, GLOUCESTER OTTAWA (Including future phases) Proposed Zoning approved for four residential towers containing the potential for up to 840 units on a 7.1 acre portion of RioCan's Gloucester Silver City Shopping Centre 37
UNLOCKING INTRINSIC VALUE RESIDENTIAL INTENSIFICATION 740 DUPONT AVE., TORONTO, ON Location Toronto, Ontario Property Type 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. Ownership - 50% (JV with Woodbourne) Project Start / Anticipated Completion 2017 / 2021 Zoning status: Zoned 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 Proposed Demographics in 5km radius: Population: ~700k Average household income: ~ $120k 38
UNLOCKING INTRINSIC VALUE RESIDENTIAL INTENSIFICATION BRENTWOOD VILLAGE, CALGARY, AB Location Located along the Northwest LRT line and adjacent to the Crowchild Parkway in Northwestern Calgary in close proximity to the University of Calgary Property Type Mixed-use retail residential, 12-storey, 165 rental units with approximately 10,000sf of retail GLA Ownership - 50% (JV with Boardwalk REIT) Zoning status: Zoned Project Start / Anticipated Completion 2018 / 2020 Surfacing Value Extracting additional value through the redevelopment of an underutilized retail portion of the site to include additional residential uses RioCan will retain a 100% interest in the remainder of the shopping centre Proposed Demographics in 5km radius: Population: ~160k Average household income: $141k+ Well located with easy access to downtown Calgary, the University of Calgary, McMahon Stadium and Foothills Hospital 39
UNLOCKING INTRINSIC VALUE RESIDENTIAL INTENSIFICATION YONGE & EGLINTON NORTHEAST CORNER, TORONTO, ON Location: At the heart of one of Toronto s busiest and most popular intersections. Unparalled access to the Yonge subway and new Eglington 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) Proposed Rental Residential Units: ~460 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 Daytime population: 489k Average household income: $156k+ Condo portion of the project is 100% pre-sold Proposed 40
UNLOCKING INTRINSIC VALUE RESIDENTIAL INTENSIFICATION KING PORTLAND CENTRE, TORONTO, ON Location: Prime location in trendy Toronto s 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 Proposed Zoning Status: Zoned Project Start / Anticipated Completion: 2016/ Late 2018 Demographics in 5km radius: Daytime population: 823k Average household income: $115k+ Office tower is targeted LEED platinum 41
UNLOCKING INTRINSIC VALUE RESIDENTIAL INTENSIFICATION SUNNYBROOK PLAZA, TORONTO, ON Location: 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: Concert paid RioCan $26.3 million in June 2017 for a 50% interest in the development. RioCan acquired the centre in 2007 for $22.8 million (100%) More than doubled the value in ten years, before significant value creation upon this project s completion. Demographics in 5km radius: Population: 450k Daytime population: 457k Average household income: $164k+ Proposed 42
UNLOCKING INTRINSIC VALUE RESIDENTIAL INTENSIFICATION 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 Ownership: 50% (JV with KingSett Capital) Zoning Status: Zoned Phased Completion: Retail 2019 Residential - 2020 Surfacing Value Renovation and expansion of retail space Intensification through the addition of a new 39 storey residential tower containing 258,000 square feet of residential rental space Retail anchored by Longo s, LA Fitness, Shoppers Drug Mart, Winners, and three major banks Proposed Demographics in 5km radius: Proposed Population: 340k Daytime population: 489k Average household income: $133k+ 49,000 people pass through the site as part of their daily commute $250M (at RioCan s interest) renovation underway 43
STRONG BALANCE SHEET THE FINANCIAL RESOURCES TO FUEL GROWTH AND WEATHER MARKET TURMOIL CANADA S MAJOR MARKET PORTFOLIO Low leverage Low cost of debt STRONG BALANCE SHEET Laddered debt maturity and mostly fixed rate Access to multiple sources of capital Large unencumbered assets pool generating 56.7% of annualized NOI Multiple Capital Sources Low Leverage Strong Growth 44
STRATEGIC PILLAR THREE: STRONG BALANCE SHEET PRUDENT CAPITAL MANAGEMENT & FLEXIBLE CAPITAL STRUCTURE Leverage Debt/EBITDA Interest Coverage Debt Service Coverage Fixed Coverage Unencumbered Assets Capital Structure Metrics Target 2017 38% - 42% 41.4% <8.0x 7.57x >3.0x 3.84x >2.25x 3.06x CONSISTENTLY ABOVE 95% >1.10x 1.17x N/A $7.7B Unencumbered Assets to Unencumbered Debt >2.0x 2.26x NOI % from Unencumbered Assets FFO Payout Ratio >50% 56.7% <80% 78.8% Recent News & Future Plans January 31, 2018 issued $300 million 5.7-year senior unsecured debentures at 3.209%, maturing September 2023 Repurchased and cancelled 3.9M units at a weighted average price of $25.30 per unit under NCIB Self funding (as opposed to equity issuance) developments through: o Sales proceeds from condominium/townhouse developments or air rights sales o Strategic alliances to reduce capital requirements and mitigate risks o Disposition net proceeds o Excess operating cash flows o Sale of marketable securities o Debt, subject to leverage targets and credit metrics Optimize secured versus unsecured debt and floating versus fixed rate debt 45
INDUSTRY LEADING FINANCIAL PROFILE Leverage Debt to EBITDA 41.4% 46.0% 7.6x 8.3x Debt Service Coverage 3.1x 2.6x Interest Coverage 3.9x 3.1x Source: company reports; Peers: FCR, SRU, CHP, CRR, CRT 46
STAGGERED DEBT MATURITY AND LOW COST OF DEBT LESS IMPACTED BY RISING INTEREST RATES Scheduled principal amortization Floating Rate Mortgages and Lines of Credit Mortgages payable Debentures payable $ 000s Weighted average interest rate 2,400 2,000 1,600 1,200 800 400 0 4.40% 3.37% 3.52% 3.65% 3.36% 2.69% 1,004 963 896 1,201 922 1,080 2018 2019 2020 2021 2022 Thereafter 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Weighted Avg. Interest Rate on Maturing Debt 47
STRATEGIC PILLAR FOUR: STRATEGIC ACQUISITIONS SELECTIVELY SEIZING OPPORTUNITIES CANADA S MAJOR MARKET PORTFOLIO STRATEGIC ACQUISITIONS 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 48
STRATEGIC ACQUISITIONS ACQUISITIONS OF PARTNERS INTERESTS HAVE BEEN A KEY SOURCE OF GROWTH POST SALE OF US PORTFOLIO Over $1.5 Billion of Acquisitions from Partners Since 2015 Acquisitions from other partners, $0.2B Acquisitions from CPPIB of $0.3B Acquisitions from Kimco of $0.9B Proposed Acquired more than $1.5 Billion of assets predominantly in major markets that would otherwise not be available in the market at a weighted average capitalization rate of 5.8% Acquisition from Kimco involved the purchase of a non-managing interest from a motivated seller seeking to re-focus their portfolio in the United States. 49
STRATEGIC ACQUISITIONS MIXED-USE DEVELOPMENT THE WELL TORONTO, ON Proposed 50
STRATEGIC ACQUISITIONS MIXED-USE DEVELOPMENT THE WELL, TORONTO, ON 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 project completion: Commercial - 2021, Residential Building 6-2023 Proposed 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. 51
STRATEGIC ACQUISITIONS 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 partners 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 Proposed Proposed 52
STRATEGIC ACQUISITIONS MIXED-USE DEVELOPMENT YORKVILLE, TORONTO, ON 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 up to 82 rental units Ownership: 50/25/25 joint venture among RioCan, Metropia and Capital Developments Zoning Status: Preparing application for ZBA Zoning Bylaw Amendment Project Start/Anticipated Completion: TBD 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: 450k Daytime population: 457k Average household income: $164k+ 53
STRATEGIC ACQUISITIONS MIXED-USE DEVELOPMENT BATHURST COLLEGE CENTRE, TORONTO Location: 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 Zoning status: Zoned Proposed Estimated project completion: 2019 Proposed 54
STRATEGIC ACQUISITIONS MIXED-USE DEVELOPMENT 5th & THIRD, CALGARY, AB Location: Well located in the East Village area of downtown Calgary with direct access to the LRT Ownership Structure: 100% retail, Residential air rights sold to Embassy BOSA Property Type: Mixed-use with 158,000 sf of retail and 597,000 sf residential sold as air rights Leasing status: 70% pre-leased Zoning status: Zoned Estimated project completion: 2021 Lead Tenants : Loblaw s City Market, Shoppers Drug Mart Proposed Proposed 55
ENVIRONMENTAL SOCIAL AND GOVERNANCE AT RIOCAN Embedding Sustainability Well defined sustainability policy; Established sustainability governance structure; In 2017, RioCan participated in the Global Real Estate Sustainability Benchmark ("GRESB") Survey for the first time; Inclusion of a new performance indicator for management; Completed an employee engagement survey to collect feedback on sustainability drivers; Establishment of a baseline for sustainability: energy, water and Greenhouse Gas ("GHG") emissions; Establishment of sustainability standards for our income producing properties and our development projects; Pursuing Toronto Green Standard (TGS) Tier II for The Well and Sunnybrook Plaza projects, and pursuing LEED Gold & TGS Tier II for its Yonge Sheppard Centre project Extension of Enwave s existing Deep Lake Water Cooling network via a new 12 million-litre energy storage facility at The Well(see image) to provide a low-carbon, resilient cooling and heating Proposed option for the property and the surrounding communities Geothermal energy system for heating and cooling to be incorporated at RioCan s Gloucester project in Ottawa Proposed 56
CONTACT INFORMATION Edward Sonshine, O.Ont., Q.C. Chief Executive Officer Rags Davloor President & Chief Operating Officer Qi Tang Senior Vice President & Chief Financial Officer Proposed Contact Information RioCan Yonge Eglinton Centre 2300 Yonge Street P.O. Box 2386 Toronto, ON M4P 1E4 Email: ir@riocan.com (T) 1-800-465-2733 or (416) 866-3033 Proposed 57