Management Presentation December 8, 2008 , Forward Looking - PDF document

Management Presentation December 8, 2008 ,

Forward Looking Statements g Certain information included in this presentation contains forward-looking statements within the meaning of Certain information included in this presentation contains forward-looking statements within the meaning of applicable securities laws including, among others, statements concerning our 2008 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 g g p j 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 or 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 i f ti b f d i l i f ti f d l t th t il bl b it d t 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. 2

Market Overview

Only six metropolitan markets within Canada have in Only six metropolitan markets within Canada have in excess of one million people 4

Canada’s Six High Growth Markets g 1996 2006 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 12,104,814 14,110,317 16.57% 2,005,503 Source - Statistics Canada 5

Stable Growth in GLA Across the Top 6 Markets * Increase in total GLA equal to population growth Canadian GLA per Capita: 16.35 U.S. GLA per Capita: 19.5 � Space fundamentals are strong with retail inventory per capita at lower levels relative to the US *Edmonton Vancouver * *Calgary * Montreal Montreal * Ottawa * Toronto *Source CBRE - CB Richard Ellis 6

Sales Productivity * Canada consistently outperforms the US in mall sales productivity Canada & US Enclosed Mall Sales Productivity Per SF (2000 to 2007) Sales Productivity (PSF) $600 $600 $700 $643 $616 $568 $500 $600 $542 $480 $457 $500 $400 $421 $400 $300 $300 $300 $200 $200 $100 $100 $- $- Canada B.C. Alberta Praries Ontario Quebec Atlantic 2000 2001 2002 2003 2004 2005 2006 2007 Canada US Change in Canadian Retail Sales (Aug 2008 YoY) 14.00% • Aug-2007 – Aug-2008 figures: AB posting negative 1 1 .67% 12.00% growth and SK & MF coming into their own growth and SK & MF coming into their own. 10.00% 8.87% • Forecast – weaker central and stronger east coast 7.38% 8.00% 6.44% 6.08% 5.61 % 5.61 % 5.49% as Hibernia and other oil strengthens. 6.00% 4.93% 4.09% 4.00% 2.99% 2.81 % • In Canada, there is considerable stability in our 2.00% 0.63% largest tenants largest tenants – 25% of the retail market is under 25% of the retail market is under 0 00% 0.00% -0.42% the control of three groups (Weston Group, Wal- -2.00% PEI AB BC NWT CAN ON YK NS QU NB NUN MB NFLD SK Mart, Sobeys). *Source CBRE - CB Richard Ellis 7

Market Share of Retailers * Wal-Mart rapidly became dominant in department store sales Market Share of Grocery Stores in Canada Market Share of General Merchandise Stores in Canada (2007) ( ) 30% 45.00% 25% 40.00% 35.00% 20% Share 30.00% are Market S Market Sh 25.00% 15% 20.00% 10% 15.00% 10.00% 5% 5.00% 0.00% 0 00% 0% 0% L oblaw S obeys Metro S afeway Other Wal-Mart Wal-Mart Costco Canadian Tire S ears Department Store Sales Market Share LATEST AVAILABLE 1995 E E atons atons The Bay The Bay 13% 18% 20% S ears 21% Wal-Mart a a t S S ears ea s Wal-Mart Wal Mart 50% 20% 21% Zellers Zellers 27% *Source CBRE - CB Richard Ellis 20% 8

Retail Space Fundamentals – Power Retail* Growth of Power Centres in Canada Power Centre Distribution in Canada (1999 to 2007) (2007) 160 000 160,000 160 135 MSF 135,000 140,000 410 PC 129,540 140 116,418 120,000 120 99,276 90,296 100,000 millions) 100 (000s) 80,714 80,000 80 SF (m 70 241 70,241 51.4 MSF 51 4 MSF SF 176 PC 60 60,000 46,388 25 MSF 24 MSF 40 40,000 61 PC 15.2 MSF 10.9 MSF 8 MSF 66 PC 28,095 58 PC 29 PC 20 PC 20 20,000 0 - Canada Ontario Alberta Quebec BC Prarie Atlantic 1999 1999 2000 2000 2001 2001 2002 2002 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 Growth in Size of the Big Boxes 1400 1200 xes Change Change 1000 1000 Number of Big Box Big Box Location Type 1999 2007 Change % SF 800 Freestanding 45,067 57,284 12,217 27% 600 Located in a Mall 30,734 29,589 -1,145 -4% 400 200 Located in a P ower Centre C 33,237 33,029 -208 -1% % 0 1999 2000 2001 2002 2003 2004 2005 2006 2007 All Big Boxes 33,789 34,642 853 3% Total # of Big Boxes Freestanding In Malls In Power Nodes *Source CBRE - CB Richard Ellis 9

Retailers Store Growth by Type of Unit* Retailers are focused on Power Centre Growth 2001 Stores 2006 Stores Store Change 2001 - 2006 Free P ower Chain Free P ower Free P ower Mall % Total Mall Total Mall # % change Standing Centre % Standing Centre Standing Centre change % change change A&P 93 59 31 3 70 46 22 2 -23 -25% -22% -29% -33% American Eagle Outfitters 6 6 0 0 66 66 0 0 60 1000% 1000% 0% 0% Black's P hotography 181 164 11 6 135 117 11 7 -46 -25% -29% 0% 17% Business Depot / Staples 183 42 52 89 252 65 67 120 69 38% 55% 29% 35% Canadian Tire 451 82 292 77 468 76 279 113 17 4% -7% -4% 47% Costco 60 0 32 28 68 1 35 32 8 13% + 1 9% 14% Food Basics 80 64 16 0 116 83 27 6 36 45% 30% 69% + 6 Future Shop 91 22 20 49 122 21 24 77 31 34% -5% 20% 57% Grand & Toy G a d & oy 98 98 63 63 35 35 0 0 60 60 48 8 10 0 2 -38 38 -39% 39% -24% % -71% % + 2 Home Outfitters 14 5 1 8 56 12 3 41 42 300% 140% 200% 413% HomeSense 9 1 0 8 58 17 3 38 49 544% 1600% + 3 375% La Senza 156 155 1 0 185 164 5 16 29 19% 6% 400% + 16 Loblaws 84 38 32 14 91 28 47 16 7 8% -26% 47% 14% No Frills 105 57 45 3 133 64 65 4 28 27% 12% 44% 33% Office Depot 37 8 15 14 31 5 13 13 -6 -16% -38% -13% -7% Old Navy Old Navy 16 16 11 11 0 0 5 5 60 60 31 31 6 6 23 23 44 44 275% 275% 182% 182% + 6 + 6 360% 360% P rice Chopper 64 44 20 0 118 67 49 2 54 84% 52% 145% + 2 Shoppers Drug Mart / P harmaprix 819 466 338 15 935 465 437 33 116 14% 0% 29% 120% Sport Chek 91 74 4 13 116 82 6 28 25 27% 11% 50% 115% Winners 124 65 9 50 186 91 14 81 62 50% 40% 56% 62% Zehrs 58 36 16 6 51 31 14 6 -7 -12% -14% -13% 0% Zellers 327 291 13 23 292 257 10 25 -35 -11% -12% -23% 9% Total 3,147 1,753 983 411 3,669 1,837 1,147 685 522 17% 5% 17% 67% *Source CBRE - CB Richard Ellis 10

About RioCan

About RioCan Ownership Enterprise Largest REIT interests in value of over in Canada in Canada 238 238 $6.2 billion $ properties Revenue of 14 properties 58.5 million Over 5,500 $719.9 sq ft under sq ft under under under tenancies t i million in illi i development management 2007 National and Over 19% 3.1 million anchor tenants compounded p sq ft of sq ft of represent annual return development 83.6% since IPO Experienced Managing 3.3 million and deep $3.2 billion billions of $ billions of $ sq ft of sq ft of property of debt under for JV development management management partners pipeline team Over $1.8 Distribution billion Leader in Leader in per unit it distributed to di t ib t d t corporate unitholders increase governance since the every year IPO 12