INVESTOR DAY 2018 PROPERTY TOUR April 18, 2018 VALUE PROPOSITION - - PowerPoint PPT Presentation

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INVESTOR DAY 2018 PROPERTY TOUR April 18, 2018 VALUE PROPOSITION - - PowerPoint PPT Presentation

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INVESTOR DAY 2018 PROPERTY TOUR April 18, 2018 VALUE PROPOSITION AND FOUR STRATEGIC PILLARS REAL VISION, SOLID GROUND CANADAS MAJOR MARKET PORTFOLIO High quality, necessity based retail, and increasingly mixed-use major markets

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INVESTOR DAY 2018 PROPERTY TOUR

April 18, 2018

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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
  • Focusing on transit-
  • riented 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

UNLOCKING INTRINSIC VALUE 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

DRIVING ORGANIC GROWTH

  • 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

  • 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

STRONG BALANCE SHEET

VALUE PROPOSITION AND FOUR STRATEGIC PILLARS

REAL VISION, SOLID GROUND

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LEADERSHIP TEAM

Ed Sonshine O.Ont., Q.C. Founder and CEO John Ballantyne, SVP Asset Management 24 years in Real Estate Jeff Ross, SVP Leasing & Tenant Coordination 30 years in Real Estate Andrew Duncan SVP Developments 18 years in Development, 12 years in Real Estate Rags Davloor, President and COO 25 years in Real Estate, Operations & Finance Qi Tang, SVP and CFO 20 years in Finance & Real Estate Jonathan Gitlin, SVP Investments & Residential 18 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

  • Strong executive bench

with a wealth of experience and proven track record

  • Fully integrated REIT

with all disciplines in- house including:

  • Investments
  • Leasing
  • Asset Management
  • Development &

Construction

  • Property Management
  • Finance, Legal and

Human Resources

  • Trusted and respected,

with deep industry knowledge and relationships

EXPERIENCE, INTEGRITY AND FORESIGHT

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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) 7 491 College St. 8 740 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

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GREATER TORONTO AREA (GTA) FOCUS

TOUR AGENDA

Tour Stop Name RioCan Interest NLA SF ‘000s

  • n

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 - 2021 Building 6 – 2023 N/A 7 3 King Portland Centre (Kingly) 50% 425 2018/2019 94% 10 4 Shoppes on Queen West 100% 89 2011 100% 12 5 Bathurst College Centre 100% 139 2019 79% 13 6 College Ave. & Manning Ave. (Strada) 50% 113 2021 79% 14 7 491 College St. 50% 24 2018 63% 15 8 740 Dupont Ave. (Litho.) 50% 181 2021 13% 16 9 Yonge Eglinton Centre 100% 1,059 2016 (expansion) 99.3% 18 10 Northeast Corner Yonge Eglinton (ePlace and eCentral) 50%* 707 2018/2019 31% 19 11 Sunnybrook Plaza 50% 316 2023 84.5% (current) 20 12 RioCan Leaside 100% 1,307 TBD 100% 21 13 Shops on Summerhill 75% TBD TBD 100% 22 14 Yorkville 50% ~500 TBD N/A 23

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PRIME DOWNTOWN LOCATION

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Proposed

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

Proposed

UNPARALLELED GTA ASSETS

Demographics in 5km radius:

  • Population: 526k
  • Average household income: $118k+
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MIXED-USE DEVELOPMENT

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Proposed

THE WELL TORONTO, ON

UNPARALLELED GTA ASSETS

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MIXED-USE DEVELOPMENT

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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

THE WELL, TORONTO, ON

Location: 7.7 acre site situated at the gateway to downtown Toronto, at Front and Spadina. Transit

  • riented 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 - 2021, Residential Building 6 - 2023

*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 .

UNPARALLELED GTA ASSETS

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MIXED-USE DEVELOPMENT

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Proposed

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

Proposed

UNPARALLELED GTA ASSETS

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UNPARALLELED GTA ASSETS

RESIDENTIAL INTENSIFICATION

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

KING PORTLAND CENTRE, TORONTO, ON

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Proposed

  • Demographics in 5km radius:
  • Population: 823k
  • Average household income: $115k+
  • Office tower is targeted LEED platinum
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UNPARALLELED GTA ASSETS

RESIDENTIAL INTENSIFICATION KING PORTLAND CENTRE (KINGLY) TORONTO, ON

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Proposed

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UNPARALLELED GTA ASSETS

RESIDENTIAL INTENSIFICATION

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%

  • ccupied.

NLA: 89,419 sf Major Tenants – Loblaws, Winners, Bank

  • f Montreal

Ownership: 100% NLA: 89,400 sf Completed: 2011

SHOPPES ON QUEEN TORONTO, ON

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Proposed

Demographics in 5km radius:

  • Population: 823k
  • Average household income: $115k+
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MIXED-USE DEVELOPMENT

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Proposed

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

Proposed

UNPARALLELED GTA ASSETS

Demographics in 5km radius:

  • Population: 590k
  • Average household income: $117k+
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UNPARALLELED GTA ASSETS

RESIDENTIAL INTENSIFICATION

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

COLLEGE & MANNING (STRADA), TORONTO, ON

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Proposed Demographics in 5km radius:

  • Population: 594k
  • Average household income: $117k+
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SLIDE 15

UNPARALLELED GTA ASSETS

MIXED-USE DEVELOPMENT

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

491 COLLEGE STREET WEST TORONTO, ON

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Proposed

Demographics in 5km radius:

  • Population: 597k
  • Average household income: $117k+
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SLIDE 16

Demographics in 5km radius:

  • Population: ~700k
  • Average household income: ~ $120k

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UNPARALLELED GTA ASSETS

RESIDENTIAL INTENSIFICATION 740 DUPONT AVE. (LITHO.), TORONTO, ON

Location: Toronto, Ontario Property Type: Located on a 1.4 acre site, this mixed- use 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

Proposed

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UNPARALLELED GTA ASSETS

RESIDENTIAL INTENSIFICATION 740 DUPONT AVE. (LITHO.), TORONTO, ON

Proposed

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UNPARALLELED GTA ASSETS

STRATEGIC REDEVELOPMENT

RIOCAN YONGE EGLINTON CENTRE, TORONTO

18 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

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UNPARALLELED GTA ASSETS

RESIDENTIAL INTENSIFICATION YONGE & EGLINTON NORTHEAST CORNER (eCentral at ePlace) TORONTO, ON

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 pre-

  • sold. 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+

Proposed

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RESIDENTIAL INTENSIFICATION

SUNNYBROOK PLAZA, TORONTO, ON

20 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

Proposed

Demographics in 5km radius:

  • Population: 450k
  • Average household income: $164k+

UNPARALLELED GTA ASSETS

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RESIDENTIAL INTENSIFICATION

RIOCAN LEASIDE CENTRE, TORONTO, ON

21 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

Proposed

Demographics in 5km radius:

  • Population: 450k
  • Average household income: $164k+

UNPARALLELED GTA ASSETS

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UNPARALLELED GTA ASSETS

POTENTIAL RESIDENTIAL INTENSIFICATION THE SHOPS OF SUMMERHILL TORONTO, ON

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.

Proposed

Demographics in 5 km radius:

  • Population: 714k
  • Average household income: $129k+
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UNPARALLELED GTA ASSETS

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 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

  • pportunity to acquire the residential rental units

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Demographics in 5 km radius:

  • Population: 683k
  • Average household income: $123k+

MIXED-USE DEVELOPMENT