In the 1990s 12 pro pe rtie s Curre nt Situa tion Ove r 200 pro - - PowerPoint PPT Presentation

In the 1990’s

• 12 pro pe rtie s
• 880,000 square fe e t
• $13 millio n re ntal re ve nue

Curre nt Situa tion

• Ove r 200 pro pe rtie s
• 52 millio n square fe e t
• $646 millio n re ntal re ve nue

Re la tive Pric e Pe rforma nc e RioCa n

• vs. RE

IT Compa ra ble s

So urc e – RBC Capital Marke ts

Compa rison of RioCa n’s Pe rforma nc e to Inve stme nt Alte rna tive s

So urc e – RBC Capital Marke ts Total Return (1)

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006

36.9% 16.8% 24.7% 35.9%

• 2.8%

17.3% 15.8% 19.0% 9.5% 3.8% 4.2% 2.2% 3.2% 25.3% 12.1% 31.0% 24.1% 4.9% 1.7% 1.4% 7.1% 3.0% 2.8% 0.6% 24.9% 14.0% 31.5% 26.8% 14.5% 10.9% 5.3% 8.6% 8.2% 6.0% 4.6% 1.7% 33.2% 25.9% 36.7% 38.3% 26.7% 28.7% 28.3% 50.0% 6.6% 5.5% 0.1% 0.4% 12.3% 7.4% 3.6% 13.0%

• 12.4%
• 22.1%
• 15.0%
• 31.5%

10.3% 8.6% 15.2% 11.5% 41.5% 29.9% 12.8% 22.2%

• 12.6%
• 11.9%
• 5.4%
• 21.1%

6.1% 8.6% 5.6% 7.6% 22.7% 21.4% 26.8% 29.3% 7.4%

• 9.1%
• 4.7%
• 39.3%

12.4% 9.5% 17.3% 12.8% 2.8% 14.8%

• 4.6%

13.3% 31.7% 21.0% 27.2% 85.6%

• 3.8%

0.0%

• 7.8%
• 2.3%
• 3.0%
• 8.5%
• 16.9%
• 13.1%
• 1.6%

28.6% 18.1% 39.6% 10.7% 7.5% 14.4% 10.7% 35.5% n/a 18.6% n/a 15.0% 33.4% 24.9% 21.6% 12.5% 6.5% 11.7% 8.6% 56.6% n/a 35.9% n/a 28.3% 23.0% 28.7% 22.7% 12.6% 12.0% 0.2% 2.7%

1996 to 2006(2)

RioCan REIT 24.3% S&P/TSX Capped REIT TR Index 16.6%

Morgan Stanley U.S. REIT Index (RMZ)

16.2% 5 Year GoC Bond 6.4% 10 Year U.S. TSY Bond(3) 5.8% S&P/TSX Income Trust TR Index 16.4% S&P/TSX Composite TR Index 11.5% S&P 500 TR Index(3) 9.7% Dow Jones Industrial Avg. TR Index(3) 10.6% NASDAQ Composite Index(3) 7.8% 10 Year GoC Bond 7.8% 5.1% 5 Year U.S. TSY Bond(3)

(1) Returns are calculated assuming reinvestment of dividend, distributions or coupon payments (2) Represents the average annual return over the holding period from Jan. 1, 1996 to Dec. 31, 2006. In the case of both the S&P/TSX Capped REIT Total Return Index and the S&P/TSX Income Trust Total Return, this figure represents the average annual return over the holding period from Jan. 1, 1998 to Dec. 31, 2006 (3) US$ denominated returns

RioCa n’s Strong T ra ding Pe rforma nc e

So urc e – RBC Capital Marke ts

$4.00 $6.00 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 $24.00 $26.00 $28.00

Ja n- 96 Ja n- 97 Ja n- 98 Ja n- 99 Ja n- 00 Ja n- 01 Ja n- 02 Ja n- 03 Ja n- 04 Ja n- 05 Ja n- 06 Ja n- 07

$26.78 Curre nt Unit Pric e +349% Inc re ase Sinc e Ja nua ry 1, 1996

Of note, Unit prices prior to February 10, 1998 reflect the Company’s 2 for 1 stock split that became effective on that date

Building a Gre a t Bra nd

• A gre at brand kno ws itse lf
• Gre at brands are in it fo r the lo ng haul… the y

build re latio nships o ve r time

• Gre at brands make pro mise s… and the y

always ke e p the ir pro mise s

Our Goa l & Philosophy

• T
• c o nse rvative ly build a po rtfo lio o f quality re al e state .

T he c o nse rvative part o f that de sc riptio n re fe rre d to the many re stric tio ns we vo luntarily put upo n o urse lve s inc luding de bt le ve ls, dive rsific atio n o f re ve nue so urc e s, minimizing flo at rate de bt and re stric ting the amo unt o f no n inc o me pro duc ing asse ts we c o uld o wn at any o ne time .

• T
• distribute c ash flo w to o ur unitho lde rs, the o wne rs o f the

po rtfo lio we we re building and asse mbling, o n a re gular, re liable and e ve r inc re asing basis.

Me e ting Our Goa l

At Ma rc h 31, 2007

• De bt c o mprise d le ss than 55% o f the histo ric al c o st o f o ur asse ts
• Pe rc e ntage de bt le ve l in the mid 30’ s o n fair marke t basis
• L

arge st te nant e xpo sure o f 5.7% o f re ve nue

Me e ting Our Goa l

At Ma rc h 31, 2007

• 97.4% o f o ur de bt is fixe d rate s
• We have ne ve r appro ac he d o ur se lf-impo se d

limit o f 15% o f bo o k e quity

Me e ting Our Goa l

At Ma rc h 31, 2007

• T

wo thirds o f o ur re ve nue c o me s fro m Canada’ s six high gro wth marke ts

• 82.4% o f o ur re ve nue is fro m natio nal te nants
• Ove rall o c c upanc y rate is in e xc e ss o f 97%

Me e ting Our Goa l

• I

n e ac h o f o ur thirte e n ye ars we have inc re ase d

• ur distributio n to the unitho lde rs
• In our short life spa n we ha ve distribute d

a lmost $1.7 billion

T he Be st Re ta il Portfolio in Ca na da

• We o wn almo st 33 millio n square fe e t
• I

nc luding partne rs, inte re sts and shado w anc ho rs we c o ntro l 52 millio n square fe e t in the aggre gate

• Ove r 10% o f all re tail flo o r spac e in Canada

Popula tion Growth

1996-2006 PROVINCE 1996 2006 % change change

Ontario 10,753,573 12,160,282 13.08% 1,406,709 Quebec 7,138,795 7,546,131 5.71% 407,336 British Columbia 3,724,500 4,113,487 10.44% 388,987 Alberta 2,696,826 3,290,350 22.01% 593,524 Manitoba 1,113,898 1,148,401 3.10% 34,503 Saskatchewan 990,237 968,157

• 2.23%

(22,080) Nova Scotia 909,282 913,462 0.46% 4,180 New Brunswick 738,133 729,997

• 1.10%

(8,136) Newfoundland and Labrador 551,792 505,469

• 8.40%

(46,323) Prince Edward Island 134,557 135,851 0.96% 1,294 Northwest Territories 39,672 41,464 4.52% 1,792 Yukon Territory 30,766 30,372

• 1.28%

(394) Nunavut 24,730 29,474 19.18% 4,744

Total Canada 28,846,761 31,612,897 9.59% 2,766,136

1996-2006 MARKET 1996 2006 % change change

Toronto, Ontario 4,263,759 5,113,149 19.92% 849,390 Montréal, Quebec 3,326,447 3,635,571 9.29% 309,124 Vancouver, British Columbia 1,831,665 2,116,581 15.56% 284,916 Ottawa-Gatineau, Ontario/Quebec 998,718 1,130,761 13.22% 132,043 Calgary, Alberta 821,628 1,079,310 31.36% 257,682 Edmonton, Alberta 862,597 1,034,945 19.98% 172,348

Total Top 6 Markets 12,104,814 14,110,317 16.57% 2,005,503

Popula tion Growth

T he Be st Re ta il Portfolio in Ca na da

Yong e E g linton Ce ntre

Yong e E g linton Ce ntre

F uture Growth Drive rs

• Organic gro wth
• I

nte nsific atio n pro gram

• Gre e nfie ld de ve lo pme nt pro gram

Org a nic Growth

• Re financ ing o f e xisting de bt
• Re ntal gro wth o n re ne wals and re le asing

Org a nic Growth

• Curre nt we ighte d ave rage inte re st rate unde r 6%
• Able to so urc e ne w 10 ye ar financ ing at 5%
• With $1 billio n in de bt maturitie s, the annualize d savings by 2010

will amo unt to almo st $12 millio n pe r ye ar

Org a nic Growth

• T

hro ugh 2010, almo st 3 millio n square fe e t o f ne w fo rmat spac e will be up fo r re ne wal

• Re ntal inc re ase s c o uld to tal almo st $40 millio n annualize d by

e nd o f 2010

F uture Growth Drive rs

• Organic gro wth
• I

nte nsific atio n pro gram

• Gre e nfie ld de ve lo pme nt pro gram

Inte nsific a tion Prog ra m

Ave nue Roa d & L a wre nc e Ave nue

Inte nsific a tion Prog ra m

Ave nue Roa d & L a wre nc e Ave nue

Inte nsific a tion Prog ra m

Ave nue Roa d & L a wre nc e Ave nue

Inte nsific a tion Prog ra m

Ave nue Roa d & L a wre nc e Ave nue

F uture Growth Drive rs

• Organic gro wth
• I

nte nsific atio n pro gram

• Gre e nfie ld de ve lo pme nt pro gram

Gre e nfie ld De ve lopme nt Prog ra m

RioCa n Be a c on Hill

Gre e nfie ld De ve lopme nt Prog ra m

RioCa n Sig na l Hill Ce ntre

Gre e nfie ld De ve lopme nt Prog ra m

Bre ntwood Villa g e

Gre e nfie ld De ve lopme nt Prog ra m

RioCa n Ce ntre Burloa k

Re turn Ove r the Pa st Ye a r

33.6%