MANAGEMENT PRESENTATION August 2009 FORWARD LOOKING STATEMENTS - - PDF document

MANAGEMENT PRESENTATION

August 2009

2

FORWARD LOOKING STATEMENTS

Certain information included in this presentation contains forward-looking statements within the meaning of applicable securities laws including, among others, statements concerning our 2009 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

• r 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

• r making a forecast or projection as reflected in the forward-looking information can

be found in our 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.

ABOUT RIOCAN

4

ABOUT RIOCAN

Largest REIT in Canada Enterprise value of over $7.1 billion Ownership interests in 247 properties 13 properties under development Over 59 million sq ft under management Total tenancies 5,600 Revenue of $187 million in Q2 2009 9.4 million sq ft of development Over 14% compounded annual return since IPO National and anchor tenants represent 84.6% Experienced and deep property management team Strong Joint Venture Partnerships Diversified tenant base $3.5 billion

• f debt under

management Over $2.3 billion distributed to unitholders since the IPO Leader in corporate governance Distribution per unit increase every year

5

ABOUT RIOCAN

• Largest REIT in Canada with 247 properties, including 13 under development,
• wned interests totalling over 36 million sq. ft. and over $7.1 of enterprise value

Able to prosperously grow in all cycles of the market using prudent strategies, core competencies, right partners and staying ahead of trends in commercial real estate

• Focused on retail real estate with experience in office and mixed use real estate

Management team of RioCan has experience in all the sectors of commercial real estate

• Full service real estate entity with property management, asset management,

leasing, acquisitions, development and financing capabilities with over 600 employees

Able to undertake any task within the real estate business

• Conservative use of leverage

Investment grade entity rated “BBB” and “BBB (high)” by S&P and DBRS, respectively

• Unmatched breadth of tenant relationships in Canada

Of 5,600 tenants, no tenant representing over 5.3% of annualized rental revenue

• Experienced asset manager with strong partners

Completed a number of successful JVs and enjoyed a continued demand for its asset management expertise from existing and new partners

MARKET OVERVIEW

• Canada. Weathering the Storm
• “The effect of the turmoil on the Canadian financial system is, so far, milder than in other G7
• economies. Interbank money markets remained functional. No injections of public capital into banks

were necessary. The resilience appears particularly striking given the close economic and financial links between Canada and the United States.” Source: International Monetary Fund; Canada: Selected Issues May 2009

• Canadian housing market slowed, but the lack of a “subprime” market and exotic residential

mortgage structures limited foreclosures and thus value correction has not been as severe.

• Securitization and private equity remained a small portion of the Canadian market, even at its peak,

tempering gains and leverage.

• Leveraged M&A activity in the REIT sector during the peak was non-existent ie. No transactions like

Arden, Equity Office, or General Growth.

• Variable rate short term financing in the commercial market was used very rarely.

7

8

Only six metropolitan markets within Canada have in excess

• f one m illion people

9

CANADA’S SIX HIGH GROWTH MARKETS

Source - Statistics Canada

MARKET 1996 2006 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 12,104,814 14,110,317 16.57% 2,005,503

10

STABLE GROWTH IN GLA ACROSS TOP 6 MARKETS*

BRITISH COLUMBIA ALBERTASASKATCHEWAN MANITOBA ONTARIO QUEBEC NEWFOUNDLAND & LABRADOR PRINCE EDWARD ISLAND NOVA SCOTIA NEW BRUNSWICK

Vancouver

14.0 SF p.c. 21.7 SF p.c. 15.7 SF p.c. 13.5 SF p.c. 18.6 SF p.c. 12.6 SF p.c. 13.3 SF p.c. 17.2 SF p.c. 18.2 SF p.c. 14.0 SF p.c.

Edmonton Calgary Toronto Ottawa Montreal * Source CBRE - CB Richard Ellis

Space fundamentals are strong with retail inventory per capita at lower levels relative to the US Increase in total GLA equal to population growth

Canadian GLA per Capita: 16.35 U.S. GLA per Capita: 19.5

28.4% 11.5% 7.8% 5.5% 3.2% 2.5% 41.1%

Toronto, Ontario Montreal, Quebec Ottawa, Ontario Calgary, Alberta Vancouver, British Columbia Edmonton, Alberta All other markets

34.2% 11.0% 8.4% 6.2% 3.7% 2.7% 33.8%

Toronto, Ontario Montreal, Quebec Ottawa, Ontario Calgary, Alberta Vancouver, British Columbia Edmonton, Alberta All other markets 11

PORTFOLIO FUNDAMENTALS REMAIN STRONG

• High proportion of national tenants

Approximately 85% of our annualized rental revenue is derived from national and anchor tenants

• Stable occupancy levels at 97.1%
• Solid leasing activity

For the six months ended June 30, 2009, RioCan retained approximately 93.4% or 1.5 million sq. ft. (80.0% for the six months ended June 30, 2008) of our expiring leases at an average net rent increase of 5.8% (9.4% for the six months ended June 30, 2008)

• Focus on the six Canadian high growth markets

Approximately two-thirds of our revenue is from properties within the six high growth major Canadian markets

Annualized Rental Revenue Net Leasable Area

As at June 30, 2009

12

GEOGRAPHIC DIVERSIFICATION

62.3% 17.9% 10.0% 5.7% 2.1% 0.5% 0.5% 0.5% 0.4% 0.1%

Ontario Quebec Alberta British Columbia New Brunswick Saskatchewan Prince Edward Island Manitoba Newfoundland Nova Scotia

As a % of Annualized Rental Revenue (As at June 30, 2009)

PORTFOLIO OVERVIEW

14

TOP TEN TENANTS

15

UNMATCHED BREADTH OF TENANT RELATIONSHIPS

• 5,600 tenancies capturing the top Canadian and American retailers
• Only two tenants represent more than 5.0% of annualized rental revenue

TOP 10 TENANT NAME ANNUALIZED RENTAL REVENUE NUMBER OF LOCATIONS TOTAL AREA OCCUPIED (sq. ft. in 000s WEIGHTED AVG REMAINING LEASE TERM (yrs)

1 Famous Players/Cineplex/Galaxy Cinemas 5.3% 28 1,265 13.7 2 Metro/A&P/Super C/Loeb/Food Basics 5.2% 52 1,982 8.9 3 Canadian Tire/PartSource/Mark's Work Wearhouse 4.0% 57 1,344 11.8 4 Zellers/The Bay/Home Outfitters 3.6% 38 2,530 8.9 5 Wal-Mart 3.4% 20 1,935 9.5 6 Winners/HomeSense 3.2% 53 1,197 5.4 7 Loblaws/No Frills/Fortinos/Zehrs/Maxi 3.0% 23 1,037 5.8 8 Staples/Business Depot 2.5% 44 902 7.9 9 Reitmans/Penningtons/Smart Set/Addition-Elle/Thyme Maternity 1.9% 122 500 4.9 10 Harvey's/Swiss Chalet/Kelsey's/Montana's/Milestone's 1.8% 85 358 10.2

16

ANNUALIZED RENTAL REVENUE

By Property Type (As at June 30, 2009)

47.9% 20.3% 14.6% 4.2% 8.2% 4.8%

New Format Retail Grocery Anchored Centre Enclosed Shopping Centre Non-Grocery Anchored Centre Urban Retail Office

17

LEASE ROLLOVER PROFILE

995 3,023 3,748 2,917 2,949

1,000 2,000 3,000 4,000

2009 2010 2011 2012 2013

3.0% 9.0% 11.2% 8.7% 8.8%

% Square Feet expiring / portfolio NLA

’000s Square Feet

As at June 30, 2009

18

STABLE OCCUPANCY

96.9% 95.0% 95.0% 95.4% 96.1% 95.6% 95.8% 96.3% 96.3% 97.1% 97.7% 97.6% 96.9% 97.1%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009*

Historical Occupancy Rates 1996 to Q2 2009*

19

FINANCIAL HIGHLIGHTS

Three Months Ended June 30, 2009 Six Months Ended June 30, 2009 Six Months Ended June 30, 2008

Total Revenue ($) $187,352 378,426 377,752 Net Operating Income 117,004 229,670 218,285 Operating Margin 62.5% 60.7% 57.8% Same Property NOI Growth (Year Over Year) 1.5% 0.7% 0.7% FFO (in thousands) 67,922 138,475 155,152 FFO per unit 0.30 0.62 0.72 AFFO Payout Ratio (net of DRIP) 107.7% 95.0% 74.8% Expiring Lease Rate Growth 7.0% 5.8% 9.4% Tenant Retention Ratio 93.2% 92.4% 80.0% DRIP Participation 16.4% 18.3% 25.3%

June 30, 2009

• Dec. 31, 2008

June 30, 2009

Total Assets 5,721,699 5,337,491 5,339,442 Debt 3,567,355 3,260,295 3,200,783 Debt to Aggregate Assets 55.8% 54.9% 54.5% Debt to Total Capitalization 49.9% 51.8% 42.3% Interest Coverage Ratio 2.5x 2.6x 2.7x Debt Service Ratio 1.9x 2.0x 2.0x Market Capitalization 3,579,264 3,033,094 4,371,305 Total Capitalization 7,146,619 6,293,389 7,572,088

FINANCIAL HIGHLIGHTS

(thousands of dollars, except per Unit amounts) Three months ended June 30, Increase (decrease) 2009 2008 Rental revenue $ 180,574 $ 169,863 6% Property operating costs 63,570 59,980 6% Net operating income 117,004 109,883 6% Fees and other income 3,041 3,690 (18%) Interest income 4,311 4,037 7% Gains on properties held for resale (574) 16,795 (103%) 123,782 134,405 (8%) Interest expense 48,532 41,575 17% General and administrative expense 7,328 5,965 23% FFO 67,922 86,865 (22%) Amortization expense 41,910 36,414 15% Future income tax expense (recovery) (1,200) 5,700 (121%) Net earnings $ 27,212 $ 44,751 (39%) Net earnings per Unit - basic and diluted $ 0.12 $ 0.21 FFO per Unit $ 0.30 $ 0.40

20

FINANCIAL HIGHLIGHTS

(thousands of dollars) Three months ended June 30, Increase (decrease) Six months ended June 30, Increase (decrease) 2009 2008 2009 2008 Same properties (i) $ 104,181 $ 102,599 1.5% $ 203,726 $ 202,349 0.7% 2009 and 2008 acquisitions 3,890 86 nm 6,912 86 nm 2009 and 2008 dispositions 19 90 nm 36 178 nm Greenfield development 5,852 4,193 39.6% 13,705 9,611 42.6% NOI before adjustments 113,942 106,968 6.5% 224,379 212,224 5.7% Lease cancellation fees 776 360 nm 814 909 nm Straight-lining of rents 1,480 1,729 (14.4%) 2,890 3,441 (16.0%) Differential between contractual and market rents 806 826 (2.4%) 1,587 1,711 (7.2%) NOI $ 117,004 $ 109,883 6.5% $ 229,670 $ 218,285 5.2% "nm" - not meaningful. (i) Same properties refer to those income properties that were owned by RioCan throughout both periods.

21

Same Property Net Operating Income

FINANCIAL HIGHLIGHTS

(thousands of dollars, except per Unit amounts) June 30, 2009 March 31,2009 Increase (decrease) Same properties (i) $ 107,833 $ 105,661 2.1% Acquisitions 1,311 342 nm Dispositions (2)

• nm

Greenfield development 4,800 4,434 8.3% NOI before adjustments 113,942 110,437 3.2% Lease cancellation fees 776 38 nm Straight-lining of rents 1,480 1,410 5.0% Differential between contractual and market rents 806 781 3.2% NOI $ 117,004 $ 112,666 3.9%

22

Net Operating Income Quarter over Quarter

“nm” – not meaningful. (i) Same properties refer to those income properties that were owned by RioCan throughout both periods.

CAPITAL STRUCTURE

24

CONSERVATIVE DEBT PROFILE

• Debt-to-Gross Book Value (historical cost) of 55.8% at June 30, 2009
• Total operating lines - $293.5 million with approximately $193 million

available

• Cash on hand as at June 30, 2009 approximately $300 million
• 11% of properties unencumbered by debt on a net leasable area basis
• At June 30, 2009, interest coverage was in excess of 2.5x and debt service

coverage was 1.9x

• In April 2009, repurchased $4.6 million of Series D debentures maturing in

September 2009 and $50.4 million Series J debentures maturing in March 2010

• In 2009, S&P affirmed RioCan’s issuer credit rating of BBB and issue rating
• f BBB- relating to its senior unsecured debentures payable; DBRS

provided a credit rating of BBB (high) relating to RioCan’s debentures

25

FISCAL CONSERVATISM

97.4% 93.0% 88.9% 87.1% 86.7% 88.2% 88.9% 89.6% 87.9% 92.1% 76.3% 72.0% 66.7% 72.5% 72.4% 80.0% 73.0% 70.5% 65.9% 70.2% 60% 65% 70% 75% 80% 85% 90% 95% 100%

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

% Payout of FFO % Payout of FFO excl DRIP

Note: 2005 FFO adjusted to exclude impact of costs of early extinguishment of debentures

26

47.3% 48.2% 51.9% 53.1% 53.8% 53.9% 56.6% 56.3% 54.9% 55.8% 55.3% 2.9x 2.9x 2.6x 2.6x 2.7x 2.8x 2.9x 2.7x 2.6x 2.5x

Leverage Interest Coverage

MODEST LEVERAGE, STRONG INTEREST COVERAGE

• RioCan has consistently adhered to a conservative debt policy even through periods
• f considerable growth
• Leverage of 55.8% at June 30, 2009; 55.3% proforma** based on historic cost
• 60% max permitted under covenant
• Interest coverage well in excess of the 1.65x maintenance covenant

Historical Leverage (@ Book) And EBITDA Interest Coverage

* June 30, 2009 ** June 30, 2009 adjusted for repayment from cash of debentures due September 2009

27

55.8% 55.3% 53.5% 50.0% Historic Cost* Proforma** Proforma** net

• f cash

Market

LEVERAGE AT HISTORIC COST & STOCK MARKET VALUE

As at June 30, 2009

* June 30, 2009 ** June 30, 2009 adjusted for debenture repayments on maturity

28 1) Based on a unit price of $15.28

CAPITAL STRUCTURE

48.2% 18.0% 33.8%

Book Value = $5.4 billion1 Enterprise Value = $7.1 billion1

50.1% 13.6% 36.4%

Mortgages= $2.6 billion Debentures = $969 million Equity = 234 million units

• utstanding

42.9% 16.0% 41.2%

Gross Book Value = $6.1 billion1

29

LIQUIDITY & DEBT MATURITY PROFILE

In millions

As at June 30, 2009

$80 $45 $200 $220 $150 $180 $100 $185 $311 $137 $335 $386 $301 $942

$0 $200 $400 $600 $800 $1,000 $1,200

2009 2010 2011 2012 2013 2014 2015+

Mortgages Unsecured Debentures

7.4% 10.0% 9.4% 15.5% 15.0% 13.5%

30

CONSERVATIVE COMMITMENTS TO DEVELOPMENT PIPLINE

In millions

As at June 30, 2009

$31 $30 $2 $17 $18 $3

$11 $2 $2 $1 $2

$0 $10 $20 $30 $40 $50 $60 $70

2009 2010 2011+

Co-Ownerships - Other Co-Ownerships - CPPIB Co-Ownerships - Trinity RioCan Owned Developments

31

DEBT MATURITIES BY LENDER

Contractual Principal Balance by Type of Lender

(thousands of dollars) Scheduled Principal Amortization Life Insurance Industry Mortgage Conduit Banks Pension Funds Other Unsecured Debentures Total As at June 30, 2009: For the year ended

• Dec. 31

2009 33,476 57,306

• 87,082
• 7,067

79,681 264,612 2010 60,204 44,690 159,904 11,750 13,975 20,938 44,619 356,080 2011 56,736 8,940 53,952 12,651 4,679

• 200,000

336,958 2012 55,123 59,682 107,374 112,810

• 220,000

554,989 2013 49,213 110,351 107,513 110,450

• 8,926

150,000 536,453 2014 39,402 62,080 6,592 181,510

• 11,000

180,000 480,584 Thereafter 109,870 336,131 245,859 206,867 41,862 1,000 100,000 1,041,589 404,024 679,180 681,194 723,120 60,516 48,931 974,300 3,571,265

ACCESS TO CAPITAL MARKETS

• Closed $180 million principal amount of Series L senior unsecured

debentures issued on April 3, 2009

Debentures carry a coupon rate of 8.33% and will mature on April 3, 2014

• Closed $150 million Trust Unit Offering on June 10, 2009

Issued 10,345,000 Units

• The net proceeds from the offerings were used to:

Repurchase, at par, $4.6 million of its September 21, 2009, 5.29% Series D and $50.4 million of its March 24, 2010, 4.938% Series J senior unsecured debentures; Provide additional financial flexibility to its substantial liquidity position; Repay indebtedness incurred under its operating credit facilities; Fund development activities and future property acquisitions, and; General trust purposes.

32

Unsecured Debenture Offering: Trust Unit Offering:

33

BORROWINGS TO JUNE 30, 2009

Mortgages Payable As at June 30, 2009 Six months ended June 30, 2009

(thousands of dollars, except other data) Contractua Debt l Weighted Average Contractual Interest Rate Contractua Debt l Weighted Average Contractual Interest Rate Average Term to Maturity (years)

New borrowings: Fixed rate term mortgages

94,170 5.95% 203,598 5.44% 5.7

Floating rate term mortgages

84,400 4.88% 84,400 4.88% 3.0

Construction

7,154 2.35% 10,627 2.18% 1.1

Assumed/granted on the acquisition of properties

$185,724 5.32% $298,625 5.16%

• At outset of 2009, RioCan had $230.5 million of mortgage principal

maturities at a weighted average contractual interest rate of 5.9% and $849.3 million of unsecured debentures maturing between 2009 and 2026

• Remaining maturities for balance of the year $264.5 million

34

ASSETS AVAILABLE TO FINANCE

PRINCIPAL BALANCE OF DEBT MONITORING (in thousands) NUMBER OF PROPERTIES NBV of IPP At June 30, 2009 2008 ANNUALIZED NOI (1) 2009 2010 Collateral – Income Properties Encumbered Assets with Debt Maturing in 2009 13 263,821 25,796 130,692 Encumbered Assets with Debt Maturing in 2010 28 514,576 52,980 246,701 Unencumbered Assets at June 30,2009 52 386,814 33,442 Construction Financing on Properties Under Development (2) 3 17,413 1,352 13,695 3,709 VTB on Properties Under Development 2 5,236 398 7,068 847 Unsecured Debt Maturity 79,681 44,619 TOTAL 98 1,187,860 113,968 231,136 295,876

(1) Excluding impact of straight-line rents and the differential between contractual and market rents (2) Projects include components that are income producing at December 31, 2008. NBV shown represents amounts in IPP only.

CAPITAL STRUCTURE LOOKING AHEAD

36

SIFT LEGISLATION

• In order to qualify for the REIT Exemption commencing in 2011, RioCan is

developing a REIT exemption “Qualification Plan”

• The Qualification Plan will identify permitted assets and activities that would not

qualify under the REIT Exemption and potential restructuring solutions

• Under the Qualification Plan, RioCan will continue, directly or indirectly through

subsidiary entities, to hold such assets and engage in such activities that are permitted to be held and/or performed by RioCan under the REIT Exemption.

• As part of the Qualification Plan, RioCan is currently considering the establishment
• f a new entity (the "New Entity") which will, directly or indirectly through subsidiary

entities, hold such assets and engage in such activities that RioCan is not permitted to engage in under the REIT Exemption (i.e., non-compliant assets and activities)

• Under the current version of the Qualification Plan that RioCan is considering, it is

contemplated that RioCan’s unitholders will hold securities of RioCan and the New Entity in the form of stapled units

36

37

FUTURE GROWTH DRIVERS

Organic Growth Land use Intensification Greenfield Development Acquisitions Fund Activities

Six Months ended June 30, 2009 (in thousands, except per square foot (psf) amounts) Total New Format Retail Grocery Anchored Centre Enclosed Shopping Centre Non-Grocery Anchored Centre Urban Retail Office Renewals at market rental rates Square feet renewed 713 164 291 148 10 21 79 Average net rent psf 17.92 19.24 16.61 18.64 18.66 36.53 13.54 Increase in average net rent psf 1.22 2.38 0.56 0.54 1.16 7.22 0.86 Fixed rental rate options in favour

• f our tenants

Square feet renewed 747 349 239 110 49 Average net rent psf 12.31 15.35 10.31 9.08 7.64 Increase in average net rent psf 0.43 0.76 0.08 0.36 Total: Square feet renewed 1,460 513 530 258 59 21 79 Average net rent psf 15.05 16.59 13.77 14.56 9.54 36.53 13.54 Increase in average net rent psf 0.82 1.28 0.34 0.47 0.20 7.22 0.86 Percent Increase 5.7 8.4 2.5 3.3 2.1 24.6 6.8

PORTFOLIO LEASING ACTIVITY

38

For the Six Months Ended June 30, 2009

39 39

ORGANIC GROWTH – LEASING ACTIVITY

in thousands, except per square foot (psf) amounts Total New Format Retail Grocery Anchored Centre Enclosed Shopping Centre Non-Grocery Anchored Centre Urban Retail Office Renewals at market rates Square feet renewed 400 93 165 87 7 14 34 Average net rent psf 18.22 22.90 15.42 16.06 20.44 34.70 16.99 Increase in average net rent psf 1.51 4.02 0.05 0.82 1.11 4.90 2.13 Fixed rental rate options in favour

• f our tenants

Square feet renewed 314 198 58 33 25 Average renewal net rent psf 13.58 14.31 14.90 11.29 7.77 Increase in average net rent psf 0.49 0.66 0.00 0.65 0.00 Total: Square feet renewed 714 291 223 120 32 14 34 Average net rent psf 16.19 17.06 15.29 14.76 10.64 34.70 16.99 Increase in average net rent psf 1.06 1.74 0.04 0.78 0.25 4.90 2.13 Percent Increase 7.0 4.5 0.3 5.6 2.4 16.4 14.3

For the Quarter Ended June 30, 2009

40

ORGANIC GROWTH – LEASE EXPIRIES

LEASE EXPIRIES

(in thousands, except psf and percentage amounts)

Portfolio NLA 2009(1) 2010 2011 2012 2013

Square Feet: New Format Retail 15,447 265 911 1,442 1,032 1,309 Grocery Anchored Centre 7,353 301 814 981 1,112 532 Enclosed Shopping Centre 6,266 285 774 808 477 614 Non-Grocery Anchored Centre 1,610 56 115 145 98 177 Urban Retail 1,277 41 64 75 137 156 Office 1,583 47 345 297 61 161 Total 33,536 995 3,023 3,748 2,917 2,949 Square feet expiring/portfolio NLA 3.0% 9.0% 11.2% 8.7% 8.8% Average rent psf : New Format Retail 15.68 21.01 18.42 16.63 17.77 17.11 Grocery Anchored Centre 13.80 16.61 14.37 14.39 13.60 16.90 Enclosed Shopping Centre 11.12 14.79 10.14 11.03 14.04 15.16 Non-Grocery Anchored Centre 12.55 14.25 14.37 13.25 13.81 13.88 Urban Retail 20.35 24.12 30.67 21.79 29.67 15.41 Office 11.32 10.71 9.18 12.24 12.95 11.20 Total average net rent psf 14.32 17.16 14.26 14.46 15.89 16.06

(1) Tenant expiries for the remaining six months of 2009.

As at June 30, 2009

41

FUTURE GROWTH DRIVERS

Organic Growth Land use Intensification Greenfield Development Acquisitions Fund Activities

42

STRONG DEVELOPMENT PIPELINE

• Greenfield developments through in-house capabilities and with partners, such as Trinity and Canada

Pension Plan Investment Board (CPPIB)

At June 30, 2009

• Total greenfield developments comprise 9.4 million square feet, including shadow anchors
• RioCan’s owned interest consists of 3.3 million square feet
• Total estimated project cost is $ 1.6 billion, with RioCan’s interest being approx. $ 690 million
• Invested $ 261 million in these projects
• RioCan’s funding obligations, before construction financing is $ 645 million ($ 121 million is for current

development and $ 524 million is for potential future development)

RioCan’s share is $ 428 million ($ 94 million is for current development and $ 334 million is for potential future development) In addition, RioCan will fund approx. $ 217 million under mezzanine lending program to certain partners, primarily Trinity Developments ($27 million is for current development and $190 million is for potential future development)

• Generate unlevered yield between 7% to 11%, at a weighted average of 8.5% to 9.5%

Strategic sales to CPPIB

• In June 2008, RioCan and Trinity sold a 50% non-managing interest in the Jacksonport development in

Calgary and St. Clair Avenue and Weston Road in Toronto development to CPPIB

• In October 2008, CPPIB purchased at 37.5% non-managing ownership interest in two of three phases in

East Hills in Calgary

• Significantly reduced development exposure on the three projects of $700 million
• The sales to CPPIB enabled RioCan to recoup 100% of its equity in these projects
• The sales further strengthened our existing relationship to Canada’s largest pension fund

43

GREENFIELD DEVELOPMENT

RioCan Centre Burloak, Oakville, ON – Pre-development

44

GREENFIELD DEVELOPMENT

RioCan Centre Burloak, Oakville, ON – Post-development

45

GREENFIELD DEVELOPMENT

RioCan Elgin Mills Crossing, Richmond Hill, ON

46

GREENFIELD DEVELOPMENT

East Hills, Calgary, AB

47

GREENFIELD DEVELOPMENT

East Hills, Calgary, AB

48

FUTURE GROWTH DRIVERS

Organic Growth Land use Intensification Greenfield Development Acquisitions Fund Activities

49

LAND USE INTENSIFICATION

• Capitalize on trend in Canada’s six high growth markets towards

“densifying” existing urban locations, driven by:

Prohibitive costs of expanding infrastructure beyond urban boundaries Environmental concerns Maximizing use of mass transit

• Generate high yields as land is already owned

50

YONGE EGLINTON CENTRE

• One of RioCan’s largest acquisitions at $223 million

(acquired in January 2007)

750,126 sq. ft. of office area and 264,391 sq. ft. of retail area

• RioCan has launched a thorough revitalization and

expansion plan that will capitalize on the area’s residential intensification

Improvements to parking increased revenues by $500,000 46,000 sq. ft. of new retail, and a connection to the office towers and ingress/egress to the food court and subway A combined 12-storey, 210,000 sq. ft. expansion of the

• ffice towers
• RioCan’s leasing and capital improvement efforts have

resulted in significant increases in NOI and occupancy

NOI of $13.3 million at purchase, forecast to increase to $18.2 million for the year ended December 31, 2009 (ROI increasing from 5.95% to 7.50%) Combined office and retail occupancy rate has increased from 88% at purchase, to 97% at June 30, 2009

Toronto, Ontario

51

CREATING NEW CASH FLOW SOURCES

RioCan Yonge Eglinton Centre, Toronto, ON

52

CREATING NEW CASH FLOW SOURCES

RioCan Yonge Eglinton Centre – Proposed Retail Addition

53

CREATING NEW CASH FLOW SOURCES

RioCan Yonge Eglinton Centre – Proposed Retail Addition

54

CREATING NEW CASH FLOW SOURCES

Potential to add 210,000 square feet of office space

RioCan Yonge Eglinton Centre – Proposed Vertical Addition

55

LAND USE INTENSIFICATION

1717 Avenue Road, Toronto, ON

56

URBAN INTENSIFICATION

1717 Avenue Road, Toronto, ON

• Rezoning urban properties to accommodate mixed use projects became RioCan REIT’s

focus in the last several years

Currently almost 100 acres of urban property in either active rezoning process or in the exploration

• f rezoning potential stage
• 1717 Avenue Road, Toronto

Assembled a city block over four year period located in one of the busiest nodes in Toronto on Avenue Road, between Fairlawn Avenue and St. Germain Avenue The block was made up of four, one storey, properties, the largest being 21,000 sq. ft. strip centre anchored by an LCBO and Blockbuster Ideal property for redevelopment into a mixed-use facility, in keeping with the trend of urban intensification Residential air rights sold to Tribute Communities, who are developing this mixed-use property RioCan REIT retained ownership of the retail portion and shares in a portion of the profits created on the sale of the condominiums The residential component is 81% sold

57

LAND USE INTENSIFICATION

Queen and Portland, Toronto, ON

58

URBAN INTENSIFICATION

Queen & Portland, Toronto, ON

• One acre parking lot acquired in January 2006
• Southwest corner of Queen and Portland Streets,
• ccupying the entire length of the block
• Ideal property for redevelopment into a mixed-use

facility, in keeping with the trend of urban intensification

• January 2009, announced $11.5 million lease

termination payment from Home Depot in connection with its proposed 75,000 sq ft store on which construction had not yet begun

• Development to continue with new retail footprint -

conditional agreements in place with Loblaws occupying the bulk of the ground floor and all of the second floor, with a flagship Joe Fresh store and a Loblaws supermarket, while Winners will be occupying the third floor

• Total retail space is 92,000 sq ft over three levels
• Five-storey residential condominium, above the retail,

unaffected by change – 74% sold

• Residential air rights sold to Tribute Communities, who

will develop this mixed-use property

• RioCan REIT retained ownership of the retail portion

and shares in a portion of the profits created on the sale

• f the condominiums

Queen St. W Richmond St. W Portland St.

59

TILLICUM CENTRE

Victoria, British Columbia

• Acquired in July 2002, expansion initiated in 2004

62,000 sq. ft. addition anchored by introduction of two marquee tenants Fabricland relocated to a larger store and TD Bank also took occupancy during phase 2

• Despite various construction challenges owing to

site’s geography, RioCan’s development team was able to deliver on schedule and within budget

• Mixed-use expansion scheduled for

commencement in 2009, and will feature 300,000 sq. ft.

• In addition to improving tenant quality and

aesthetics, the return on investment (“ROI”) since acquisition has increased by more than 100 bps

NOI increased from $5.3 million at purchase to a budgeted annualized NOI of $7.0 million in 2008 (36% increase) Occupancy increased from 96.1% at purchase to 99.6%

60

FUTURE GROWTH DRIVERS

Organic Growth Land use Intensification Greenfield Development Acquisitions Fund Activities

61

ACQUISITION OF ING PORTFOLIO

• In March 2009, acquired interest in six grocery anchored retail properties in Greater Montreal Area

totalling 454,000 square feet for total purchase price of $67.5 million

RioCan holds a 100% interest in two of the properties and a 50% interest in four properties RioCan’s interest in the properties totals 332,000 square feet Annualized net operating income expected to be generated from the portfolio is

• approx. $6.1 million (9.1% cap rate)

Net purchase price of RioCan’s interest in the portfolio was approx. $47.5 million Average price per square foot is $142.78, well below replacement cost for assets of this nature Average age of the portfolio is 14 years

Portfolio profile

• Total occupancy 99%

83% national and regional tenants 74% Supermarket/Pharmacy/Banks

• Average remaining lease term on grocery leases is 7.9 years

Properties

Concord Centre, Laval (IGA, Desjardins and Jean Coutu) La Prairie Centre, La Prairie (IGA, Familiprix and Laurentian Bank) Rene-A.-Robert Centre, Ste-Therese (IGA) Sicard Centre, Ste-Therese (IGA, Jean Coutu and Scores)

• St. Jean, St-Jean-sur-Richelieu (IGA, National Bank and Uniprix)

Ste Julie, Ste Julie (IGA)

62

ACQUISITION ACTIVITY

Property Name & Location Quarter Acquired NLA (sq. ft.) at Riocan’s Interest RioCan's Ownership Interest Cap Rate Purchase Price ($M)

Portfolio of Six Grocery Anchored Properties in Greater Montreal Area:

• St. Jean, St. Jean sur Richeliu, QC

Q1 103,396 100% Sicard Centre, Ste. Therese, QC Q1 106,948 100% Cancord Tre, Laval, QC Q1 31,649 50% La Prairie, La Prairie. QC Q1 34,541 50%

• St. Julie Centre, St. Julie, QC

Q1 30,097 50% Rene A. Robert Centre, Ste Therese, QC Q1 25,919 50% TOTAL 332,550 9.1% $47,483 Portfolio Acquisition: Hespeler Road, Cambridge, ON Q1 10,790 100% 17004/17008 107th Avenue, Edmonton, AB Q1 11,963 100% TOTAL 22,753 8.5% $5,392 Total Q1 355,303 Total Acquisitions To-Date 2009 355,303

• In 2008, RioCan completed total acquisitions in the amount of $162.8 million,

comprising approximately 857,000 additional square feet

As at June 30, 2009

63

FUTURE GROWTH DRIVERS

Organic Growth Land use Intensification Greenfield Development Acquisitions Fund Activities

RIOCAN’S PROVEN TRACK RECORD STRONG PARTNERSHIPS

65

PROVEN TRACK RECORD – RRVLP

• RRVLP formed in 2003 with RioCan REIT, TIAA-CREF and OMERS together

committing $200 million of equity

TIAA-CREF is one of the largest privately owned investment managers in the U.S. with over $420 billion of assets under management which includes over $70 billion of real estate assets OMERS is one of Canada’s leading pension funds with over $43 billion in net investment assets

• RRVLP focuses on the investment in retail assets with the potential for significant

value added, redevelopment or repositioning opportunities

• Invested in 12 properties comprising 3.4 million sq ft over a period of less than 24

months and to date has sold ten properties generating a return of approximately 23% after fees

• A subsidiary of RioCan REIT acts as a General Partner and provided asset

management, property management, leasing, financing and development services to the fund

• RioCan REIT’s performance and the success of RRVLP led to further working

relationship between RioCan REIT and a leading investor in this fund

RioCan Retail Value LP (“RRVLP”)

66 66

PROVEN TRACK RECORD

Partner Type

• f Partner

Total Property GLA (sf) Partner GLA (sf) Kimco Public 8,899,809 4,449,905 CPPIB Institutional 754,121 377,061 Trinity Private 2,666,400 1,063,326 CPPIB/Trinity Institutional/Private 527,934 316,760 Kimco/Trinity Public/Private 331,283 220,866 Kimco/Fieldgate Public/Private 28,100 23,745 RRVLP (TIAA-CREF, OMERS) Public / Institutional 663,811 564,239 Sun Life Institutional 444,263 310,984 CMHC Private 370,454 185,227 Dale-Vest/Marketvest Private 66,720 40,032 Devimco – Quebec Hydro Private 1,117,346 558,673 Effort Properties Private 147,234 73,617 Bayfield Private 391,413 273,989 The Wynn Group Private 98,580 73,935 First Gulf Private 386,718 193,359 Tawse Private 244,409 122,205 Trinity / Otis Private 135,850 90,571 Strathallen Private 240,126 165,087 Frum Development Group Private 276,330 138,165 Total 17,790,901 9,241,745

Strong Partnerships

• In addition to RioKim JV and CPPIB strategic alliance, RioCan REIT maintains numerous other

partnerships where partners rely on RioCan’s expertise in leasing, property management and development

67

PROVEN TRACK RECORD

RioKim Joint Venture

Brentwood Village

• RioCan REIT and Kimco Realty Corporation,

a U.S. REIT listed on the NYSE which also focuses on the ownership of shopping centres, each have a 50% interest in RioKim joint venture

• Invested over $1.2 billion in 45 properties

since 2001 comprising over 9.3 million sq. ft.

• f GLA
• In June 2008, created a second joint venture

partnership with Kimco (RioKim II) with the acquisition of a 10 properties portfolio in central and eastern Canada

• RioCan provides asset and property

management, development and leasing services to RioKim

Tillicum Centre

68

PROVEN TRACK RECORD

CPPIB Strategic Alliance

RioCan Centre Burloak - Before

• In October 2004, RioCan REIT and CPPIB

announced an agreement to acquire premier regional power centres in Canada on a 50/50 basis as a core, long-term holding strategy

• Today, RioCan and CPPIB are partners in
• ver 1.3 million sq. ft. of completed regional

power centres and approximately 3.0 million

• sq. ft. of planned development projects
• RioCan provides property and asset

management, leasing, development and construction management services for the co-ownership

RioCan Centre Burloak - After

69

SUMMARY

• Canada’s largest REIT
• Seasoned management team
• Excellent portfolio, solid tenants and diversified
• Focus on urban markets
• 85% of annualized rental revenue from national tenants
• Conservative debt profile and access to capital
• Strong institutional relationships
• Solid development pipeline

APPENDIX I

71

EXPERIENCED MANAGEMENT TEAM

• Extensive experience in Canadian real estate market
• Multi-disciplinary team with experience across a wide spectrum of real estate classes

EDWARD SONSHINE, Q.C. – President & Chief Executive Officer, RioCan REIT

• CEO of RioCan REIT since late 1993 and has overseen its growth from an asset base of under $100 million to its

current enterprise value which is in excess of $7 billion

• Previously practiced law for 15 years, during which he was awarded his Queen’s Counsel in 1983
• Member of the board of directors of Royal Bank of Canada, Chair of Chesswood Income Fund and Chair of Mount

Sinai Hospital Foundation

FREDERIC WAKS – Senior Vice President & Chief Operating Officer, RioCan REIT

• COO of RioCan REIT since 1995
• Began real estate career in 1981 with Royal LePage, where he earned the honourable designation of Rookie of the

Year in the Commercial Division and President’s Round Table

• In 1984, he joined First Plazas as Vice President of Leasing/Marketing. Moved to Dominion Trust in 1988, where he

took on the position of Senior Vice President. From 1993 to 1995, acted as Vice-President, Retail Leasing for Confederation Life.

RAGS DAVLOOR, CA – Senior Vice President & Chief Financial Officer, RioCan REIT

• CFO of RioCan REIT since 2008
• Over 25 years of real estate, management, finance, accounting and tax experience
• Began his career with Arthur Anderson & Co where he spent 8 years in audit, tax and advisory roles, followed by
• ver 10 years at O&Y Properties and O&Y REIT ultimately becoming CFO, and prior to coming to RioCan at TD

Securities as a Vice President and Director in corporate finance for two years, where he was focused on real estate industry coverage.

APPENDIX II

Property Ownership by Geographic Area

(square feet)

Provincial RioCan’s interest NLA Partners’ interests Retailer owned anchors Total site NLA Ontario Central 13,161,230 3,744,225 3,046,016 19,951,471 Ontario East 4,344,026 1,040,173 1,015,045 6,399,244 Ontario West 2,654,682 80,817 650,187 3,385,686 Total Ontario 20,159,938 4,865,215 4,711,248 29,736,401 Quebec 6,605,023 1,281,203 1,656,634 9,542,860 Alberta 3,021,559 1,481,943 1,727,805 6,231,307 British Columbia 1,785,043 1,207,044 341,074 3,333,161 New Brunswick 1,069,578 170,936 470,615 1,711,129 Saskatchewan 267,667

• 267,667

Newfoundland 212,331

• 212,331

Manitoba 178,877

• 178,877

Prince Edward Island 166,717 166,717

• 333,434

Nova Scotia 69,047 69,047

• 138,094

Income Producing Properties 33,535,780 9,242,105 8,907,376 51,685,261 Properties Under Development 2,619,440 4,108,560 1,412,000 8,140,000 Total 36,155,220 13,350,665 10,319,376 59,825,261

73

As at June 30, 2009

RioCan Yonge Eglinton Centre

2300 Yonge Street, Suite 500, PO Box 2386, Toronto, ON 416-866-3033 / 1-800-465-2733

www.riocan.com