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RioCan's Strong Trading Performance - 264% Increase Since 1996

Explore RioCan's impressive trading performance, with a 264% increase in unit price since 1996. Discover their changing strategies, development program, and the best real estate in Canada's urban markets.

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RioCan's Strong Trading Performance - 264% Increase Since 1996

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  1. Paul Godfrey,C.M.Chairman

  2. RioCan’s Strong Trading Performance 264% increase in the unit price since January 1, 1996 Source - RBC Capital Markets

  3. Relative Price Performance RioCan vs. Major Indices 264% 165% 92% 56% Source - RBC Capital Markets

  4. Relative Price Performance RioCan vs. REIT Comparables 264% 164% 149% 105% 99% 89% 11% Source - RBC Capital Markets

  5. Comparison of RioCan’s Performance to Investment Alternatives Source - RBC Capital Markets

  6. Edward Sonshine, Q.C.President and C.E.O.

  7. Asset Size (thousands) 12 Year Asset Growth

  8. Active in Acquisitions (2000-2003) • 14,350,000 square feet of leasable area • Cost of $1.65 billion • Cap rate of 9.84% • $110 per square foot

  9. Changing Strategies • Capital had become abundant • Pension funds, realized that retail real estate properties were excellent investments

  10. Changing Strategies • In 2005, RioCan sold 22 properties totalling almost 3.4 million square feet • Annual net operating income in excess of $30 million

  11. Changing Strategies • A portfolio of properties that will have longevity, security and growth potential

  12. Canada’s Six Urban Markets • Calgary • Edmonton • Montreal • Ottawa • Toronto • Vancouver

  13. Canadian Population Growth Source – Statistics Canada

  14. Canada’s Six Urban Markets Source – Statistics Canada

  15. Canada’s Six Urban Markets More people = greater retail sales = more demand for space and higher rents

  16. Gross Revenue from Six Urban Markets Toronto 30.4% Ottawa 10.0% Montreal 9.3% Calgary 6.1% Vancouver 4.0% Edmonton 2.6% Other 37.6%

  17. Other Quality Markets RIOCAN CENTRE, KINGSTON, ON

  18. RioCan’s Development Program • Greenfield developments with partners and through in-house capabilities

  19. RioCan’s Development ProgramGreenfield Development • Total development = 5.5 million square feet, excluding shadow anchors • RioCan’s owned interest = 3.5 million square feet

  20. RioCan’s StrategyGreenfield Development RIOCAN BEACON HILL, CALGARY, AB

  21. RioCan’s StrategyGreenfield Development

  22. RioCan’s StrategyGreenfield Development RIOCAN CENTRE BURLOAK, OAKVILLE, ON

  23. Greenfield DevelopmentThe Process RIOCAN CENTRE BURLOAK, OAKVILLE, ON • 100 acres zoned for 400,000 square feet of retail use • Restriction on store sizes and prohibition against supermarket use

  24. Greenfield DevelopmentThe Process RIOCAN CENTRE BURLOAK, OAKVILLE, ON • November 2003 applied to expand retail zoning to 550,000 square feet • Loosening size restrictions and eliminating supermarket ban

  25. RioCan’s StrategyThe Approval Process RIOCAN CENTRE BURLOAK, OAKVILLE, ON • City of Oakville • City of Burlington • The Region of Halton • The Halton Conservation Authority • The Ontario Ministry of Transportation

  26. RioCan’s StrategyGreenfield Development RIOCAN CENTRE BURLOAK, OAKVILLE, ON Return on investment of9%

  27. RioCan’s StrategyGreenfield Development RIOCAN MEADOWS, EDMONTON, AB

  28. RioCan’s StrategyGreenfield Development RIOCAN BEACON HILL, CALGARY, AB RIOCAN CENTRE BURLOAK,OAKVILLE, ON RIOCAN MEADOWS, EDMONTON, AB

  29. Asset Type as a % of Gross Revenue New Format Retail 47.5% Grocery AnchoredCentre 22.9% Enclosed ShoppingCentre 19.0% Urban Retail 5.9% Non-GroceryAnchored Strip 3.9% Other 0.8%

  30. The Best Real Estate in the Best MarketsNew Format Retail Expiries • 2007 – 589,000 square feet • 2008 – 607,000 square feet • 2009 – 749,000 square feet

  31. Rental Rates Rental rates have grownsignificantly in the six urban markets since we built these facilities

  32. Rental Rates SIGNAL HILL CENTRE,CALGARY, AB RIOCAN BEACON HILL,CALGARY, AB • $16 persquare foot • $25 persquare foot

  33. Rental Rates RIOCAN CENTRE BURLOAK,OAKVILLE, ON TRINITY COMMON,BRAMPTON, ON • $17 persquare foot • $27 persquare foot

  34. RioCan’s StrategyRedevelopment and Expansion of Existing Properties TRIBUTE COMMUNITIES, AVENUE ROAD

  35. RioCan’s StrategyRedevelopment and Expansion of Existing Properties LAWRENCE SQUARE, TORONTO, ON

  36. RDI Contributor Asset Management Businessis an important contributorto RDI

  37. Unitholder Return Return over past year 16.6%

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