BUILDING ON EXPERIENCE, SHAPING THE FUTURE RioCan Investor - - PowerPoint PPT Presentation

BUILDING ON EXPERIENCE, SHAPING THE FUTURE

RioCan Investor Presentation – Third Quarter 2019 November 2019

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, 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 quarter ended September 30, 2019. RioCan uses these measures to better assess the Trust’s underlying performance and provides these additional measures so that investors may do the same.

NON-GAAP MEASURES

RioCan data and statistics are based on the quarter ended September 30, 2019 information. Certain slides contain a peer comparison that is based on the respective issuer’s reported information as at September 30, 2019. Peer group includes: First Capital Realty Corp. (FCR), SmartCentres REIT (SRU), Choice Properties REIT (CHP), CT REIT (CRT), and Crombie REIT (CRR). All information presented is at RioCan’s interest unless otherwise noted. CAGR refers to compound annual growth rate of a specific metric over a period of time.

PEER DATA PRESENTATION

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. The forward looking information contained in this presentation is made as of the date hereof. 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.

FORWARD LOOKING INFORMATION

QUICK FACTS – Q3 2019 Enterprise Value $14.9 B Number of Properties 225 Net Leasable Area (NLA) (M sf) 39.3 Major Market Same Property NOI (SPNOI) 2.3%2 Total Portfolio SPNOI 2.1%2 Major Market Committed Occupancy - Commercial 97.7% Committed Occupancy - Commercial 97.2% Blended New and Renewal Leasing Spread 6.3% Renewal Retention Rate 86.5% Greater Toronto Area (GTA) Focus % of Annualized Revenue

• Peer Average3

49.5% 24.9%

BC

AT A GLANCE

• One of Canada’s first and largest REITs,

focused on the ownership, management and development of high-quality, mixed-use properties with strategic positioning in Canada’s six major markets

• 25-year proven track record of driving success and

adding value with a highly experienced and deep management team

• Diversified and predominantly necessity-based,

service-focused tenant mix

• Robust 27.4M sf development pipeline,

13.3M sf or 48.7% already with zoning approvals. 2,700 residential rental units recently completed or under construction with additional 2,100 units underway by 20211

• Rated BBB with stable outlook by S&P

and BBB (high) with stable trend by DBRS

Growth driven by strategic insight

1. At 100% of project 2. If completed properties under development are included and the disclaimed Bombay/Bowring and Payless Shoes leases are excluded, SPNOI increased by 4.9% and 4.4% for its major market portfolio and total portfolio, respectively, when compared to the same period in 2018 3. Peer group includes: FCR, CHP, and CRT (CRR and SRU do not disclose this information) Investor Presentation | RioCan | 03

Calgary Edmonton Vancouver Toronto Montreal Ottawa 12 12.4% 4% 10.3% 6.4% 5.1% 49 49.5% 5% ANNUALIZED REVENUE FROM SIX MAJOR MARKETS: 88.7% 5.0%

Investor Presentation | RioCan | 04

Concentrate within major markets Drive organic growth Unlock intrinsic value Mitigate risk effectively

Provide unitholders with a reliable and growing cash flow while building and creating value

Key Differentiators

25 years of REIT leadership Leading major market portfolio Robust development pipeline Strong balance sheet

Sustaining success and long term value

RIOCAN’S STRATEGIC PRIORITIES

Edward Sonshine O.Ont, Q.C Chief Executive Officer Jonathan Gitlin President & Chief Operating Officer Qi Tang Senior Vice President & Chief Financial Officer John Ballantyne Senior Vice President, Asset Management Jeff Ross Senior Vice President, Leasing & Tenant Coordination Andrew Duncan Senior Vice President, Development Jennifer Suess Senior Vice President, General Counsel & Corporate Secretary

DEEP EXECUTIVE BENCH

Extensive industry knowledge and unparalleled experience

Oliver Harrison Senior Vice President, Operations

Investor Presentation | RioCan | 05

Metric 2013 Q3 2019 Total Improvement

Major Market Presence (% of Revenue) 71.7% 88.7% +17.0%  GTA Presence (% of Revenue) 41.6% 49.5% +7.9%  Same Property NOI growth 1 1.3% 2.1% 3 +0.8%  Average Net Rent PSF 1 $16.63 $19.49 +17.2%  Occupancy 1,2 96.9% 97.2% +0.3%  Development Costs on the Balance Sheet $583M $1,328M 4 +$745M  Debt to Adjusted EBITDA 7.56x 8.07x +0.51x  Unencumbered Assets $2,068M $8,882M +$6,814M  Leverage 44.0% 43.6% 5

• 0.4% 

FFO Payout Ratio 90.4% 77.4%

• 13.0% 

Net Book Value Per Unit $23.01 $26.01 +13.0%  Debt Service Coverage 2.10x 2.95x +0.85x  Unsecured Debt as % of Total Debt 24.3% 60.9% +36.6% 

OUR QUALITY OF INCOME HAS NEVER BEEN STRONGER

Operating metrics are producing high quality income and are supported by an improved balance sheet

Investor Presentation | RioCan | 06 1. Includes only Canadian operations 2. Committed occupancy 3. If completed properties under development are included and the disclaimed Bombay/Bowring and Payless Shoes leases are excluded, SPNOI increased by 4.4% when compared to the same period in 2018 4. Includes $99M of Residential Inventory 5. Primarily due to the timing of strategic acquisitions in Q3 2019 totaling approximately $500 million. Applying the $220.4 million net proceeds from the recent equity offering to pay down debt, the Trust’s debt to total assets would be in the mid-42% range, while holding everything else constant as of September 30, 2019

HIGH-PERFORMANCE GROWTH ORIENTED PORTFOLIO

Consistently delivering high-quality, growing income High occupancy and strong net rent growth (Canadian commercial only)

Investor Presentation | RioCan | 07

Drive Organic Growth

Strong same property NOI growth in the major market portfolio Net rent CAGR since 2015 ─ 3.5%

94.0% 95.6% 96.6% 97.1% 97.2% $17.11 $17.59 $17.75 $19.07 $19.49 $14.00 $16.00 $18.00 $20.00 90.0% 95.0% 100.0% 2015 2016 2017 2018 Q3 2019

Total Portfolio Same Property NOI Guidance for 2020

STAYING AHEAD OF CHANGING CONSUMER TRENDS

Strategic insights drive long-term growth and high-quality returns

The increasing strength and quality

• f our income is a

result of growth in necessity-based and service-oriented tenants within our portfolio No single tenant represents >5% of annualized rental revenue

Grocery / Pharmacy / Liquor / Restaurants 28.0% Personal Services 21.8% Value Retailers 13.6% Specialty Retailers 10.7% Furniture & Home 9.9% Department Stores & Apparel 8.4% Movie Theatres 4.5% Entertainment & Hobby 3.1%

RENT BREAKDOWN Q3 2019

4% since 2007 6% since 2007 8% since 2007

74.1% OF RENT FROM NECESSITY-BASED AND SERVICE-ORIENTED TENANTS

Investor Presentation | RioCan | 08

• Less retail space per capita in Canada1 (16.4 sf

per capita vs 23.5 sf per capita in the U.S.)

• Canada has one of the fastest rates of

population growth within the OEDC countries

• Retailers in Canada face less competition, and

there are fewer players within each category which means retailers within each category are more viable

• Canada has only two major department

stores (Walmart and Hudson’s Bay Company) and has already gone through the dislocation of Target and Sears exiting the market

• Distribution obstacles create a more

challenging eCommerce environment in Canada

Investor Presentation | RioCan | 09

CANADA vs. U.S.

Retail market differences

Historical Background and Stronger Demand for Yield

• Canadian REITs have a

shorter history and face higher investor demand for yield

• Canadian retail REITS have

lower institutional ownership (~32% in Canada vs. ~87% in the U.S.)

Stronger Retail Operating Environment More Significant Barriers to Entry

• Canada’s largest cities have

limited land supply due to environmental and government restrictions including, development regulations and municipal bylaws

• Recourse borrowing and

higher proportion of secured financing in Canada vs. U.S. non-recourse borrowing and heavier reliance on unsecured financing, which leads to less retail development

• 1. Source: Retail Council of Canada Canadian Shopping Centre Study

STRATEGIC CANADIAN MAJOR MARKET POSITIONING

Concentrate in Major Markets

1. Excludes 14 active properties under development 2. If completed properties under development are included and the disclaimed Bombay/Bowring and Payless Shoes leases are excluded, SPNOI increased by 4.9% when compared to the same period in 2018 3. Excludes 10 active properties under development

Investor Presentation | RioCan | 10

177 assets 1 31.3M SF 88.7% of annualized revenue 13M+ SF zoned for development 2.3% SPNOI growth 2 97.7% committed

• ccupancy

KEY METRICS IN CANADA’S SIX MAJOR MARKETS

Calgary Edmonton Vancouver Toronto Montreal Ottawa

7 assets 1.8M SF 12 assets 2.0M SF 14 assets 3.4M SF 20 assets 3.0M SF 35 assets 4.7M SF 89 assets3 16.4M SF

62% 88.7% >90%

Peer Average

25% 49.5% >50%

Concentrate in Major Markets

SUCCESSFULLY EXECUTING MAJOR MARKET STRATEGY

Investor Presentation | RioCan | 11

% of Revenue in Major Markets % of Revenue in GTA

RioCan Vision RioCan Q3 2019 Peer Average RioCan Vision RioCan Q3 2019

Disposition Progress as of November 5, 2019

Transaction type Value (M)

• Sale prices to-date are materially in line with IFRS value
• $1.6B progress since the October 2017 announcement which

encompasses 83 properties

• Dispositions span a broad range of secondary markets

Closed and Firm $1,556 Conditional / LOI $ 61 Total to Date $1,617 Weighted Average Cap Rate 6.83%

1. Peer group includes: FCR, CHP, and CRT (CRR and SRU do not disclose this information)

The Trust has recognized $287.7M of cumulative fair value gains in connection with the 4.2M sf of PUD projects in this category which are substantially completed, near completion, or under construction

Investor Presentation | RioCan | 12

Unlock Intrinsic Value

ROBUST PIPELINE TO DRIVE CASH FLOW & NAV GROWTH

High percentage of development pipeline zoned, enabling strong incremental NLA increase

~49% or 13.3M sf with zoning approved, 100% located in the six major markets ~98% of projects are mixed-use residential totaling 26.8M sf 10 year head start in the zoning approval process is key competitive advantage in today’s more challenging regulatory environment 2,700 residential units recently completed or under construction with additional 2,100 units underway by 2021

Future est. density, 6.9M sf, 25% Application submitted, 7.1M sf, 26% Zoning approved, 13.3M sf, 49%

Total Pipeline by Zoning Status (27.4M sf)

Zoning approved and active with cost estimates in progress, 8.8M sf Zoning approved and active with detailed cost estimates, 4.5M sf1 No significant fair value gains yet recognized for excess density despite approved zoning No significant fair value gains yet recognized for excess density

1. Includes 4.2M sf for properties under development (PUD) and 0.3M sf of residential inventory

Under Development: 4.7M sf Completed Development: 0.2M sf Future Development Potential: 4.0M sf Total (at RioCan’s Interest): 13.6M sf 1.3M sf 0.8M sf 11.5M sf

UNLOCKING THE FULL POTENTIAL OF HIGH DENSITY TRANSIT-ORIENTED LOCATIONS

RioCan’s selected developments mapped to Toronto’s rapid transit system

• 1. Average demographics within a 3km radius
• f RioCan Urban Toronto development sites

Legend

Demographics, 3km radius

Average population1: 230k Average household income1: $130k+ Post-secondary education: 65%+

Investor Presentation | RioCan | 13 Billy Bishop Toronto City Airport CN Tower

Toronto Pearson International Airport

Union Station

TTC – Existing TTC – Under Development TTC – Station Planned Rapid Transit Line

Unlock Intrinsic Value

1. Maximum permitted is 15%. RioCan targets this metric to be no more than 10% (except for short-term fluctuations as large projects are completed)

As at September 30, 2019 Target

Properties Under Development (“PUD”) & Residential Inventory $1.3B N/A PUD and Residential Inventory as % of Gross Assets – Per Line of Credit and Credit Facilities Agreements 8.8% ~ 10%1 Investment in Greenfield Development and Residential Inventory as % of Unitholder Equity - Per Declaration of Trust 4.0% N/A

Investor Presentation | RioCan | 14

WELL-POSITIONED FOR VALUE CREATION

Prudent approach to development

Current PUD and Inventory Balance Annual Development Spend Annual Development Completions Target PUD and Inventory Balance * $1.3B $400M-$500M < $1.5B $300M-$600M

RioCan plans to self fund development as much as possible

Manage Risk Effectively

DRIVING LONG-TERM GROWTH

43 potential residential projects 20,000 potential units 1 2,100 additional units underway by 2021 1 2,700 units recently completed

• r currently under

construction 1 100% located in Canada’s major markets Delivering best-in-class purpose-built rental units and condos along Canada’s most prominent transit corridors, RioCan Living shapes the communities where Canadians shop, live and work.

Unlock Intrinsic Value

Investor Presentation | RioCan | 15

1. At 100% of project

2018

2019 2020+

Yonge Eglinton Northeast Corner (ePlace) Brentwood Village (Brio) Bathurst College Centre Gloucester Phase I (Frontier) Dupont Street (Litho) College & Manning (Strada) King Portland Centre (Kingly) 491 College St

Unlock Intrinsic Value

TREMENDOUS SOURCE OF CASH FLOW & NAV GROWTH

Mixed-use development in high growth, high population, transit-oriented major markets

Investor Presentation | RioCan | 16

Yonge Sheppard Centre and Pivot, Toronto, ON Scrivener Square, Toronto, ON 11 YV (Yorkville), Toronto, ON RioCan Hall, Toronto, ON

DEVELOPMENT YIELD AND VALUE CREATION

Investor Presentation | RioCan | 17

Unlock Intrinsic Value

• Estimates for five recent development projects that are complete or close to completion:

$573.3M Total Estimated Net Project Costs 1 $32.3M Estimated Stabilized NOI $784.6M Estimated Future Stabilized Value 2 5.6% Estimated Yield on Total Costs $236.5M Total Estimated Incremental Value Creation3

King and Portland Centre, Toronto ePlace, Toronto Frontier, Ottawa Bathurst College Centre, Toronto Sage Hill, Calgary

1. RioCan acquired the remaining 50% co-ownership interest in the residential rental component, eCentral, the retail component and 70 commercial parking stalls of the ePlace mixed-use development in Q3 2019. Upon closing, RioCan now owns 100% of these respective components and the net project costs have included the purchase price of this remaining 50% interest 2. Excludes condo gains 3. Includes $25.2M of condo gains. Of the total estimated incremental value creation of $236.5M, $227.4M has been recognized through property fair market values, applicable interim and fee income and applicable condo gains

1. Primarily due to the timing of strategic acquisitions in Q3 2019 totaling approximately $500 million. Applying the $220.4 million net proceeds from the recent equity offering to pay down debt, the Trust’s debt to total assets would be in the mid-42% range, while holding everything else constant as of September 30, 2019

• Solid balance sheet with strong debt-to-Adjusted

EBITDA, leverage and coverage ratios relative to peers

• Laddered debt maturity profile with mostly fixed-rate

debt to manage interest rate risk

• Access to multiple sources of capital
• Liquidity and financial flexibility with ample

availability on credit facilities and an $8.9B unencumbered assets pool, generating 58.9% of annualized NOI

Investor Presentation | RioCan | 18

DISCIPLINED CAPITAL ALLOCATION STRATEGY

Conservative capital structure provides financial strength and flexibility

• Self-fund development program through a variety
• f accessible sources
• Net proceeds from dispositions
• Sales proceeds from air rights sales and

condominium / townhouse developments

• Strategic alliances
• Excess operating cash flows
• Sale of marketable securities

RioCan Peer Average 8.1x 8.2x

Debt-to-Adjusted EBITDA

43.6% 45.2%

Leverage

3.0x 2.4x

Debt Service

3.5x 3.1x

Interest Coverage

Manage Risk Effectively 1

8.2x

Investor Presentation | RioCan | 19

Manage Risk Effectively

COMMITTED TO ESG

Systematically embed environmental, social, and governance (ESG) considerations

• Published our inaugural Sustainability Report on May 6, 2019. Selected sustainability metrics:

41%

• f management

are female Habitat for Humanity

$100,000 donation made and 140 employees volunteered their time in Build Days

Greenhouse Gas (GHG) Emissions Verified

in accordance with ISO 14064-3

BOMA BEST certified

26 properties certified, as

• f December 31, 2018

99%

• f Operations

spending is from Canadian suppliers Sustainability Policies

Community, Employee Volunteering, Procurement, Business Ethics

Environmental Management System and Utility Data Management System

aligned to ISO 14001

Tenant Engagement Survey

First ever survey of our top 20 tenants in major markets 77% of respondents would recommend RioCan

GRESB Score

Improved Public Disclosure Score and achieved a 16-point increase in survey score compared to prior year

APPENDIX CASE STUDIES

Investor Presentation | RioCan | 20

Ownership

100% On August 30, 2019, RioCan acquired from KingSett its non-managing, 50% interest for approximately $357.7M1. As part of the transaction, KingSett took an equity position in RioCan through an investment of $100M in RioCan units with a one-year lock-up agreement

NLA on Completion (at 100%) ~1.0M sf Leasing Status 86% (retail) 100% (office) Major Tenants LA Fitness, Longo’s, and Cactus Club Cafe (Q1 2020)

Demographics within 3km radius: Population: 155,957 Average income: $122,015

• Located at one of Toronto’s busiest intersections, with

access to the Yonge and Sheppard subway lines

• This mixed-use development will feature 397k sf of office

space, 259k sf of retail space, and 279k sf of residential space (361 units) upon completion (at 100%)

• Two phased redevelopment underway:
• Phase I: A transformative overhaul of the retail and
• ffice space to modernize the overall look and feel of

the property is near completion (2019)

• Phase II: Residential tower under construction (2020)

CASE STUDY | CREATING COMPELLING MIXED-USED CENTRES

Investor Presentation | RioCan | 21

1. Net of certain working capital adjustments

Yonge Sheppard Centre & Pivot

Unlock Intrinsic Value

Unlock Intrinsic Value

• eCentral is a 36 storey, 466-unit rental residential building
• 365 units (78.3%) leased as of November 5, 2019
• Rents averaging $3.90 per square foot (for market rent units)
• Unparalleled access to the Yonge subway and the new Eglinton Crosstown LRT
• Part of mixed-use ePlace which also includes (at 100%):
• 22k sf of retail (flagship TD Bank and foodservice)
• 20k sf commercial condo
• 58 storey, 623 unit eCondos condominium tower (fully sold out,

possession in 2019)

CASE STUDY | ePLACE (eCENTRAL & eCONDOS)

1. RioCan acquired the remaining 50% co-ownership interest in the residential rental component, eCentral, the retail component and 70 commercial parking stalls of the ePlace mixed-use development in Q3 2019. Upon closing, RioCan now owns 100% of these respective components and the net project costs have included the purchase price of this remaining 50% interest

Ownership 100% Construction Start 2015 Construction Completion 2019 Total Cost1 $219.6M Stabilized Value $324.0M Value Creation ($M) $104.4M Value Creation (%) 47.5% Condo Sale Gains (@ 50%) $14.0M Total Project - Value Creation $118.4M Stabilized NOI $11.3M

Estimated $118.4M of value creation

Investor Presentation | RioCan | 22

Demographics within 3km radius: Population: 191,024 Average income: $207,478

Ownership

50% JV with Killam REIT

Construction Start 2018 Construction Completion 2019 Total Cost 1 $33.6M Stabilized Value $52.3M Value Creation ($M) $18.7M Value Creation (%) 55.7% Stabilized NOI $2.0M

Unlock Intrinsic Value

Frontier rental residential phase I:

• 23 storey, 228-unit rental residential

building

• 204 units (89.9%) leased with rent

per square foot averaging $2.50, as

• f November 5, 2019
• Stabilization expected by the end of

2019

• Located on a 7.1 acre portion of

RioCan’s Gloucester Silver City Shopping Centre

• Adjacent to the new Confederation

LRT line at the Blair Station in Ottawa

• Sustainable development including

a geothermal energy system

Investor Presentation | RioCan | 23

CASE STUDY | FRONTIER (PHASE I)

Zoning has been approved for four residential towers on the site with up to 840 units RioCan Gloucester Silver City shopping centre tenant mix is strong and diverse: Cineplex theatre, Chapters, Goodlife and numerous restaurants

Estimated $18.7M of value creation

1. Total costs are net of applicable interim and fee income during the development period Phase 1

Estimated $52.3M of value creation

Investor Presentation | RioCan | 24

CASE STUDY | KING & PORTLAND & KINGLY CONDOS

Unlocking value through urban mixed-use development

• Urban Toronto, transit-oriented location with

frontage on King St

• One of the first projects in the RioCan/Allied

urban intensification joint venture.

• 646k sf mixed-use development (at 100%),

including Kingly, a 132-unit condominium building Ownership

50% JV with Allied Properties REIT

Construction Start 2016 Construction Completion 2019 Total Cost1 $88.8M Stabilized Value $129.9M Value Creation ($M) 2 $41.1M Value Creation (%) 2 46.3% Condo Sale Gains $11.2M Total Project - Value Creation $52.3M Stabilized NOI $5.5M

1. Total cost includes the total project costs of the commercial component of the project net of applicable interim and fee income during the development period 2. Since acquisition date 3. Source: Environics Analytics Data Stats 2018 – assumes a 1km trade area for downtown Toronto

Unlock Intrinsic Value

Newly constructed office space is fully leased to Shopify (183k sf) and Indigo (79k sf). Targeted LEED platinum Existing 55k sf of previously existing adjacent office space is fully leased with significant rent upside potential ~18k sf of retail space fully leased to restaurant and food service curated to suit a dense, growing and desirable demographic Demographics within 3km radius: Population: 298,329 Average income: $110,425 Kingly Condos: 132 condominium units sold out, exceeding price

• expectations. Possession of the units

by purchasers commenced in Q3 2019 with the remaining possessions scheduled to take place in Q4 2019

Proposed

Located in downtown Toronto’s west side, The Well is a ~3.0M sf of net leasable area (at 100%), first-of-its kind take on urban mixed-use in Canada.

• 1.1M sf of office
• 420k sf of retail, food and service
• 90k sf evolved food market
• 1,700 condominium and purpose built rental units
• 11k people to live and work on-site once completed

Investor Presentation | RioCan | 25

CASE STUDY | TRANSFORMING TORONTO’S WEST SIDE

The Well

Unlock Intrinsic Value

• Located at the intersection of the Yonge subway

station and the Eglinton Crosstown LRT

• In 2016 completed the transformation from a

traditional retail/office space into a vibrant mixed- use destination centre: ˗ Full redevelopment and expansion of the retail space ˗ Office tower renovation and façade improvements ˗ Addition of digital screens to drive ancillary revenue

Investor Presentation | RioCan | 26

CASE STUDY | TRANSFORMING AN ICONIC LOCATION

Yonge Eglinton Centre

Driving value through demand in an iconic location: 65.8% increase in office rent since acquisition Driving growth through strategic

• remerchandising. Addition of Sephora,

Cineplex VIP Cinemas, Winners and multiple national food service operators 66% or $9.66 growth in net rent psf since acquisition Perfectly positioned through location & tenant mix to serve a high growth, desirable demographic3 Population: 191,024 Average income: $207,478

1. Total cost includes purchase price and revenue enhancing capital expenditures since acquisition but does not include maintenance capital expenditures 2. Since acquisition date 3. Source: Environics Analytics Data Stats 2018 – assumes a 3km trade area for mid-town Toronto

Acquisition Date 2007 Total GLA 1,058,752 sf Ownership 100% Total Costs 1 $333.0M Valuation Q3 2019 $667.1M Value Creation2 ($M) $334.1M Value Creation

2 (%)

100.3% Value Creation CAGR

2

6.1% NOI growth CAGR

2

8.1%

Estimated $334.1M of value creation since acquisition

Drive Organic Growth

2300 Yonge Street. P.O. Box 2386. Toronto, ON. M4P 1E4 | Email: ir@riocan.com | (T) 1-800-465-2733 or (416) 866-3033