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 i f ti b f d i l i f ti f d l t th t il bl b it d t 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.

2

Market Overview

Only six metropolitan markets within Canada have in Only six metropolitan markets within Canada have in excess of

• ne million people

4

Canada’s Six High Growth Markets g

1996 2006 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

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 *Calgary Vancouver * * Montreal

*Source CBRE - CB Richard Ellis

* Toronto * Ottawa Montreal 6

Sales Productivity*

Canada & US Enclosed Mall Sales Productivity Per SF (2000 to 2007)

$600

Sales Productivity (PSF)

Canada consistently outperforms the US in mall sales productivity

$300 $400 $500 $600

$542 $616 $643 $480 $568 $457 $421

$300 $400 $500 $600 $700 $- $100 $200 2000 2001 2002 2003 2004 2005 2006 2007 $- $100 $200 $300 Canada B.C. Alberta Praries Ontario Quebec Atlantic

• Aug-2007 – Aug-2008 figures: AB posting negative

growth and SK & MF coming into their own

Canada US Change in Canadian Retail Sales (Aug 2008 YoY)

1 1 .67%

12.00% 14.00%

growth and SK & MF coming into their own.

• Forecast – weaker central and stronger east coast

as Hibernia and other oil strengthens.

• In Canada, there is considerable stability in our

largest tenants 25% of the retail market is under

0.63% 2.81 % 2.99% 4.09% 4.93% 5.49% 5.61 % 5.61 % 6.08% 6.44% 7.38% 8.87%

0 00% 2.00% 4.00% 6.00% 8.00% 10.00%

largest tenants – 25% of the retail market is under the control of three groups (Weston Group, Wal- Mart, Sobeys).

• 0.42%
• 2.00%

0.00% AB BC PEI NWT CAN ON YK NS QU NB NUN MB NFLD SK

*Source CBRE - CB Richard Ellis

7

Market Share of Retailers*

Market Share of Grocery Stores in Canada (2007) Market Share of General Merchandise Stores in Canada

Wal-Mart rapidly became dominant in department store sales

( )

30.00% 35.00% 40.00% 45.00% are 20% 25% 30% Share 0 00% 5.00% 10.00% 15.00% 20.00% 25.00% Market Sh 0% 5% 10% 15% Market S

1995 E atons

LATEST AVAILABLE

0.00% L

• blaw

S

• beys

Metro S afeway Other Wal-Mart 0% Wal-Mart Costco Canadian Tire S ears

Department Store Sales Market Share

E atons 13% S ears 21% Wal-Mart The Bay 18%

Wal-Mart S ears The Bay 20%

Zellers 27% Wal Mart 21%

a a t 50% Zellers 20% S ea s 20%

*Source CBRE - CB Richard Ellis

8

Retail Space Fundamentals – Power Retail*

Power Centre Distribution in Canada (2007) Growth of Power Centres in Canada (1999 to 2007) 160 000

51 4 MSF 135 MSF 410 PC

80 100 120 140 160 millions)

80,714 116,418 135,000 129,540 99,276 90,296 70 241

80,000 100,000 120,000 140,000 160,000 (000s)

8 MSF 20 PC 10.9 MSF 29 PC 15.2 MSF 58 PC 24 MSF 66 PC 25 MSF 61 PC 51.4 MSF 176 PC

20 40 60 Canada Ontario Alberta Quebec BC Prarie Atlantic SF (m

70,241 46,388 28,095

• 20,000

40,000 60,000 1999 2000 2001 2002 2003 2004 2005 2006 2007 SF 1999 2000 2001 2002 2003 2004 2005 2006 2007

Growth in Size of the Big Boxes

Change

1000 1200 1400 xes

1999 2007 Change SF Change % Freestanding 45,067 57,284 12,217 27% Located in a Mall 30,734 29,589

• 1,145
• 4%

C % Big Box Location Type

200 400 600 800 1000 Number of Big Box

Located in a P

• wer Centre

33,237 33,029

• 208
• 1%

All Big Boxes 33,789 34,642 853 3%

1999 2000 2001 2002 2003 2004 2005 2006 2007 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

Total Mall Free Standing P

• wer

Centre Total Mall Free Standing P

• wer

Centre # % change Mall % change Free Standing % change P

• wer

Centre % change A&P 93 59 31 3 70 46 22 2

• 23
• 25%
• 22%
• 29%
• 33%

American Eagle Outfitters 6 6 66 66 60 1000% 1000% 0% 0% Chain 2001 Stores 2006 Stores Store Change 2001 - 2006 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 32 28 68 1 35 32 8 13% + 1 9% 14% Food Basics 80 64 16 116 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 98 63 35 60 48 10 2

• 38
• 39%
• 24%
• 71%

+ 2 G a d & oy 98 63 35 60 8 38 39% % % Home Outfitters 14 5 1 8 56 12 3 41 42 300% 140% 200% 413% HomeSense 9 1 8 58 17 3 38 49 544% 1600% + 3 375% La Senza 156 155 1 185 164 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 16 11 5 60 31 6 23 44 275% 182% + 6 360% Old Navy 16 11 5 60 31 6 23 44 275% 182% + 6 360% P rice Chopper 64 44 20 118 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

Largest REIT in Canada Enterprise value of over $ Ownership interests in 238 in Canada $6.2 billion 238 properties 14 properties under 58.5 million sq ft under Over 5,500 t i Revenue of $719.9 illi i under development sq ft under management tenancies million in 2007 3.1 million sq ft of Over 19% compounded National and anchor tenants sq ft of development p annual return since IPO represent 83.6% Experienced and deep Managing billions of $ 3.3 million sq ft of $3.2 billion property management team billions of $ for JV partners sq ft of development pipeline

• f debt under

management Over $1.8 billion di t ib t d t Leader in Distribution it distributed to unitholders since the IPO Leader in corporate governance per unit increase every year

12

About RioCan

• Largest REIT in Canada with 238 properties, including 14 under development, totalling 58.5 million sq. ft.

$

1

and over $6.2 B of enterprise value1

• 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

M t t f Ri C h i i ll th t f i l l t t

• 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 640 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
• Over 5,500 tenants with no tenant representing over 5.4% of annualized rental revenue

Over 5,500 tenants with no tenant representing over 5.4% 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

13

1 Calculated using unit price of $13.43 at December 5, 2008

Portfolio Overview

Portfolio Overview

• High proportion of national tenants
• Approximately 83% of our annualized rental revenue is derived from national and anchor tenants

The fundamentals of RioCan’s portfolio remain strong

pp y

• Largest exposure to any single tenant comprises only 5.4% of our annualized rental revenue
• High occupancy levels, which have been stable at 97.0%
• Strong leasing activity

D i h hi d Ri C i d i l 93 9% (84% d ) f i i l

• During the third quarter, RioCan retained approximately 93.9% (84% year to-date) of our expiring leases at an average net

rent increase of 12% (11.7% year to-date)

• Approximately 2.3 million square feet have been renewed during 2008 to-date
• 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

T

• ronto, Ontario

34% Montreal, Quebec 10% T

• ronto, Ontario

28% Montreal, Quebec 11%

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

10% Ottawa, Ontario 9% Calgary, Alberta 6% Vancouver British All other markets 34% Ottawa, Ontario 8% Calgary, Alberta 6% Vancouver, British Columbia 3% All other markets 42% Vancouver, British Columbia 4% Edmonton, Alberta 3% 3% Edmonton, Alberta 2%

Net Leasable Area As at September 30, 2008

Rental revenue for the nine months ended September 30, 2008

15

15

Unmatched Breadth of Tenant Relationships p

% of Weighted Average

• 5,600 tenancies capturing the top Canadian and American retailers
• No tenant represents over 5.4% of annualized rental revenue

Tenant Name % of Annualized Rental Revenue Total Area Occupied # of Locations Average Remaining Lease Term (in years)

1 Metro/A&P/Super C/Loeb/Food Basics 5.4% 1,983,625 52 9.4 2 Famous Players/Cineplex/Galaxy Cinemas 5.4% 1,265,413 28 14.4 3 Canadian Tire/Mark's Work Wearhouse/PartSource 4.0% 1,331,904 57 12.2 4 Zellers/The Bay/Home Outfitters 3 6% 2 556 003 37 9 3 4 Zellers/The Bay/Home Outfitters 3.6% 2,556,003 37 9.3 5 Loblaws/No Frills/Fortinos/Zehrs/Maxi 3.4% 1,172,280 27 6.6 6 Wal-Mart 3.3% 1,803,547 19 9.6 7 Winners/HomeSense 3.3% 1,197,953 53 5.8 8 Staples/Business Depot 2.5% 902,188 44 8.6 9 Reitmans/Penningtons/Smart Set/Addition-Elle/Thyme Maternity 2.0% 495,852 121 5.1 10 Harvey's/Swiss Chalet/Kelsey's/Montana's/Milestone's 1.7% 322,905 77 9.9 11 Shoppers Drug Mart 1 7% 381 921 36 11 1 11 Shoppers Drug Mart 1.7% 381,921 36 11.1 12 Future Shop/Best Buy 1.6% 429,755 20 7.7 13 Chapters/Indigo 1.4% 317,744 24 5.3 14 Sport Mart/Sport Chek/Sports Experts/National Sports/Coast Mountain Sports 1.3% 365,469 41 6.1 15 Sears 1.1% 547,562 15 4.1 16 Bluenotes/Stitches/Suzy Shier/Urban Planet 1.0% 230,254 57 7.6 17 Petsmart 1.0% 264,390 20 6.2 18 Safeway 1.0% 377,637 12 7.9 y , 19 Dollarama 1.0% 350,928 43 7.1 20 Premier Fitness 0.8% 276,235 9 9.5 21 Rona/Revy/Reno 0.8% 325,833 5 14.8 22 TD Canada Trust 0.6% 108,063 29 8.8 23 LCBO 0.6% 129,638 18 6.1 24 Michaels 0.6% 187,836 14 6.6 25 London Drugs 0.6% 204,775 10 8.8 Total 49.7% 17,529,710 Total NLA (at September 30, 2008) 32,763,689 % of Total NLA 53.5%

16

Top Ten Tenants

17

Geographic Diversification as a % of Annualized Rental Revenue

As at September 30, 2008 As at September 30, 2008 Ontario 63.6% Quebec 16.5% Alberta 10.1% British Columbia 5.8% New Brunswick 2.1% Saskatchewan 0.5% Manitoba 0.5% PEI 0.4% Newfoundland 0.4% Nova Scotia 0.1%

18

Annualized Rental Revenue by Property Type

As at September 30, 2008 As at September 30, 2008 New Format Retail 52.4% Grocery Anchored Centre 20.3% Enclosed Shopping Centre 13.8% Urban Retail 5.8% Non-Grocery Anchored Centre 4.1% Office 3.6%

19

Lease Rollover Profile

(As at September 30, 2008) ( p , ) 11.4%

3 000 000 3,500,000 4,000,000

7.5% 9.7% 8.9%

1 500 000 2,000,000 2,500,000 3,000,000 500,000 1,000,000 1,500,000

530,127 2,453,574 3,182,961 3,727,404 2,927,380

1.6%

2008(i) 2009 2010 2011 2012

(1) T t l i i f th th th d d D b 31 2008 (1) Tenant lease expiries for the three months ended December 31, 2008 20

Stable Occupancy

100%

Historical Occupancy Rates 1996 to Q3 2008

p y

94% 96% 98%

96.0% 95.0% 95.0% 95.4% 96.1% 95.6% 95.8% 96.3% 96.3% 97.1% 97.7% 97.0% 97.0%

86% 88% 90% 92% 80% 82% 84% 86% 21

Strong Development Pipeline

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

Investment Board (CPPIB)

g p p

• At September 30, 2008
• Total greenfield developments comprise 8.8 million square feet, excluding shadow anchors
• RioCan’s owned interest consists of 3.5 million square feet
• Total estimated project cost is $1.6 billion

p j $

• Total acquisition and development expenditures incurred to-date are $442 million
• Total estimated remaining construction expenditures to complete:
• RioCan - $489.5 million
• Partners’ - $653.9 million

G % % f % %

• 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 g y p

• 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 $1.0 billion
• 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
• The sales further strengthened our existing relationship to Canada s largest pension fund

22

22

Capital Structure

Conservative Debt Profile

As at September 30, 2008 As at September 30, 2008

• Debt to Gross Book Value of 54.6% at September 30, 2008 (55.4% at December 5, 2008)
• Total operating lines - $290 million ($240 million available)
• 15% of properties unencumbered by debt on a net leasable area basis
• At September 30, 2008, interest coverage was in excess of 2.6x, well above the current 1.65x maintenance test
• In October 2008, repurchased $25.7 million of Series D debentures maturing in September 2009 and $5 million Series

J debentures maturing in March 2010

• Repaid $110,000,000 Series E debentures at their maturity in January 2008
• At September 30, 2008, S&P provided RioCan with an entity credit rating of BBB and a credit rating of BBB- relating to

its senior unsecured debentures payable; DBRS provided a credit rating of BBB (high) relating to RioCan’s debentures

24

Capital Structure p

Book Value = $5 0 billion Book Value $5.0 billion Enterprise Value = $6.2 billion*

13.7% 38.0% 47.1%

51.7%

48.3% 35.7% 16.9% Mortgages Debentures E quity

*Based on a share price of $13.43 on December 5, 2008 25

Liquidity and Debt Maturity Profile

In millions

$700 $800 $900 $1,000 $300 $400 $500 $600 $840 $- $100 $200 $300 2008 $0 $84 $95 $200 $220 $150 $37 $301 $320 $126 $273 $315 $127 2008 2009 2010 2011 2012 2013 2014 2015+ $0 $100 $127 Mortgages g g Unsecured Debentures

26 26

2009 Business Plan, Board of Trustees, December 3, 2008

Consistent Moderate Leverage

60.0%

56.6% 56.3% 54 6%

45.0% 50.0% 55.0%

47.3% 48.2% 51.9% 53.1% 53.8% 53.9% 54.6%

30 0% 35.0% 40.0% 20.0% 25.0% 30.0% 000 001 002 003 004 005 006 007

• 08

20 20 20 20 20 20 20 20 30-Sep-

• Declaration of Trust limits max. indebtedness to <60% of Aggregate Assets on a book value basis

27

Leverage at Historic Cost and Market

As at December 5, 2008 60 0% As at December 5, 2008 50.0% 55.0% 60.0%

55.4% 52.4%

40.0% 45.0% 30.0% 35.0% 20.0% 25.0%

Historic Cost Market*

Notes: * Market Value per unit of $13.43 based on the closing price of RioCan’s units on the TSX on Friday December 5, 2008 28

Fiscal Conservatism

• From 1999 to present, RioCan has decreased its payout ratio

Note: 2005 FFO adjusted to exclude impact of costs of early extinguishment of debentures 29

Q3 2008 Highlights

Q3 2008 Highlights

Operating Highlights

(unaudited 000s, except per share amounts)

Q3 2008 Q3 2007 Change YTD 2008 YTD 2007 Change Net Operating Income $ 116,430 $ 107,549 8% $ 335,027 $ 319,040 5% Fees and Other Income 6,981 3,784 84% 14,316 $ 10,456 37% Gains on Properties Held for Resale 1,472 4,389 (66%) 20,430 $ 21,088 (3%) General and Administrative 6,257 5,352 17% 22,249 $ 18,561 20% General and Administrative Expense 6,257 5,352 17% 22,249 $ 18,561 20% Funds from Operations (FFO) 81,308 76,029 7% 235,373 $ 227,120 4% FFO per unit $ 0.37 $ 0.36 $ 1.09 $ 1.09

31

Q3 2008 Highlights (continued)

NOI on Same Property Basis

Increase Increase 2008 2007 (decrease) 2008 2007 (decrease) Same properties 103 056 $ 100 097 $ 3 0% 298 171 $ 291 175 $ 2 4% Three months ended September 30, Nine months ended September 30,

(thousands of dollars)

Same properties 103,056 $ 100,097 $ 3.0% 298,171 $ 291,175 $ 2.4% 2008 and 2007 acquisitions 4,492 115 3,806.1% 12,018 1,916 527.2% 2008 and 2007 dispositions 199 532 (62.6%) 594 1,966 (69.8%) Greenfield development 5,727 2,492 129.8% 15,226 6,634 129.5% NOI before adjustments 113,474 103,236 9.9% 326,009 301,691 8.1% Lease cancellation fees 367 260 41.2% 1,276 9,151 (86.1%) Straight-lining of rents 1,696 3,004 (43.5%) 5,137 6,221 (17.4%) 893 1 049 (14 9%) 2 605 1 977 31 8% Differential between contractual and market rents

• 93 9% renewal/retention in Q3 (84 1% year-to date)

893 1,049 (14.9%) 2,605 1,977 31.8% NOI 116,430 $ 107,549 $ 8.3% 335,027 $ 319,040 $ 5.0% market rents

• 93.9% renewal/retention in Q3 (84.1% year-to date)
• 12% increase in rents on renewals in Q3 and year-to-date

32

Q3 2008 Highlights (continued) g g

( )

Stable Occupancy Rates Over Past Eight Quarters

33

Future Growth Drivers

• Organic growth
• Land use intensification

G fi ld d l t

• Greenfield development
• Acquisitions

34

Organic Growth – Lease Expiries

As at September 30, 2008 p ,

Total NLA 2008 (1) 2009 2010 2011 2012 Lease expiries (NLA) Total NLA 2008 2009 2010 2011 2012 Total square feet 32,763,689 530,127 2,453,574 3,182,961 3,727,404 2,927,380 1.6% 7.5% 9.7% 11.4% 8.9% Average net rent per square foot (psf) $14.32 $16.04 $15.47 $14.16 $14.32 $15.98 Square feet expiring/portfolio NLA

Lease expiries (NLA)

Total NLA 2008 (1) 2009 2010 2011 New Format Retail 14,839,988 118,536 754,768 999,620 1,407,679 0.8% 5.1% 6.7% 9.5% Grocery Anchored Centre 6,878,721 106,777 830,632 912,076 987,612 1.6% 12.1% 13.3% 14.4%

Lease expiries (NLA)

Enclosed Shopping Centre 6,410,150 148,662 491,618 802,662 777,746 2.3% 7.7% 12.5% 12.1% Non-Grocery Anchored Centre 1,739,930 18,050 108,346 124,165 141,079 1.0% 6.2% 7.1% 8.1% Urban Retail 1,311,509 103,913 86,716 71,630 77,061 7 9% 6 6% 5 5% 5 9% 7.9% 6.6% 5.5% 5.9% Office 1,583,391 34,189 181,494 272,808 336,227 2.2% 11.5% 17.2% 21.2% (1) T t l i i f th th th d d D b 31 2008 (1) Tenant lease expiries for the three months ended December 31, 2008 35

Organic Growth – Lease Expiries

As at September 30, 2008

Lease expiries

(in thousands, except psf and percentage amounts)

Portfolio NLA 2008 (i) 2009 2010 2011 2012 Square feet: New Format Retail 14,840 118 755 999 1,408 1,086 Grocery Anchored Centre 6,879 107 831 912 987 1,057 Enclosed Shopping Centre 6,410 149 491 803 778 458 Lease expiries Non-Grocery Anchored Centre 1,740 18 108 124 141 127 Urban Retail 1,312 104 87 72 77 136 Office 1,583 34 182 273 336 63 Total 32,764 530 2,454 3,183 3,727 2,927 Square feet expiring/portfolio NLA 1.6% 7.5% 9.7% 11.4% 8.9% Average rent psf (ii): New Format Retail 15.86 $ 18.97 $ 17.40 $ 18.43 $ 16.64 $ 17.42 $ Grocery Anchored Centre 13.77 16.15 14.50 13.68 14.22 13.82 Enclosed Shopping Centre 11.07 13.22 14.76 9.88 10.60 14.00 Non-Grocery Anchored Centre 12 42 21 67 12 66 14 46 13 30 13 02 Non Grocery Anchored Centre 12.42 21.67 12.66 14.46 13.30 13.02 Urban Retail 20.10 15.32 26.43 28.70 21.60 32.00 Office 10.65 13.51 10.28 8.70 12.23 13.05 Total weighted average psf 14.32 $ 16.04 $ 15.47 $ 14.16 $ 14.32 $ 15.98 $ (i) Tenant lease expiries for the three months ending December 31, 2008. (ii) Net rent is primarily contractual basic rent pursuant to tenant leases.

36

Organic Growth – Leasing Activity

For the nine months ended September 30, 2008

New Grocery Enclosed Non-grocery format anchored shopping anchored Urban (in thousands, except psf amounts) Total retail centre centre centre retail Office Renewals at market rental rates: Square feet expired 871 148 288 240 97 23 75 Average net rent psf 20 14 $ 29 13 $ 18 51 $ 18 67 $ 15 61 $ 30 84 $ 15 91 $ Average net rent psf 20.14 $ 29.13 $ 18.51 $ 18.67 $ 15.61 $ 30.84 $ 15.91 $ Increase in average net rent psf 2.92 $ 6.47 $ 1.96 $ 2.25 $ 1.16 $ 6.61 $ 2.88 $ Fixed rental rate options in favour of tenants: Square feet expired 1,411 468 180 595 54 114

• Average net rent psf

10.78 $ 16.80 $ 10.33 $ 6.53 $ 13.94 $ 7.50 $

• $

Increase in average net rent psf 0.63 $ 1.27 $ 0.54 $ 0.23 $ 0.98 $

• $
• $

Total: Square feet expired 2,282 616 468 835 151 137 75 Average net rent psf 14.36 $ 19.77 $ 15.37 $ 10.02 $ 15.01 $ 11.41 $ 15.91 $ Increase in average net rent psf 1.50 $ 2.53 $ 1.41 $ 0.81 $ 1.10 $ 1.11 $ 2.88 $

37

Yonge Eglinton Centre, Toronto, Ontario

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

January 2007)

• 750,126 sq. ft. of office area and 264,479 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 office

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 $18.6

million by year-end 2008 (ROI increasing from 5.85% to 7.71%)

• combined office and retail occupancy rate has increased from

87.8% at purchase, to forecasted 97.8% by year-end of 2008

38

Creating New Cash Flow Sources

RioCan Yonge Eglinton Centre, Toronto, ON g g , ,

39

Creating New Cash Flow Sources

RioCan Yonge Eglinton Centre, Toronto, ON – Proposed Retail Addition RioCan Yonge Eglinton Centre, Toronto, ON Proposed Retail Addition 40

Creating New Cash Flow Sources

RioCan Yonge Eglinton Centre, Toronto, ON – Proposed Retail Addition RioCan Yonge Eglinton Centre, Toronto, ON Proposed Retail Addition

41

Creating New Cash Flow Sources

RioCan Yonge Eglinton Centre, Toronto, ON – Proposed Vertical Addition g g p Potential to add 210,000 square feet of office space

42

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

43

1717 Avenue Road, Toronto – Urban Intensification ,

• 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 of rezoning potential stage Avenue Road, Toronto

• Assembled a city block over four year period located in one
• f the busiest nodes in Toronto on Avenue Road, between

Fairlawn Avenue and St Germain Avenue Fairlawn Avenue and St. Germain Avenue

• The block is made up of four, one story, properties, the

largest being 25,000 sq. ft. strip centre anchored by an LCBO and Blockbuster

• Ideal property for redevelopment into a mixed-use facility, in
• In 2005, commenced an application to rezone the property to

permit five stories of condominium above ground floor retail R id ti l i i ht ld t T ib t C iti h ill keeping with the trend of urban intensification

• 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 of the condominiums

• The residential component is 79% sold

44

Land Use Intensification

1717 Avenue Road Toronto ON 1717 Avenue Road, Toronto, ON

45

Queen & Portland, Toronto – Urban Intensification

,

Queen & Portland Toronto Queen & Portland, Toronto

• One acre parking lot acquired in January 2006
• Southwest corner of Queen and Portland Streets, occupying

the entire length of the block

• Ideal property for redevelopment into a mixed use facility in
• Ideal property for redevelopment into a mixed-use facility, in

keeping with the trend of urban intensification and the demand from “big-box retailers” for stores in urban locations

• Obtained the necessary zoning amendments to permit a

mixed-use development of 91,000 sq ft retail space over three levels and a five-storey residential condominium, above the retail

Queen St. W P

• 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 of the condominiums

Portland St.

• Property will be anchored by 75,000 sq. ft. Home Depot

Richmond St. W

46

Land Use Intensification

Queen and Portland, Toronto, ON

47

Tillicum Centre, Victoria, British Columbia , ,

• Acquired in July 2002, expansion initiated in 2004
• 62,000 sq. ft. addition anchored by introduction of two

, q y 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. of residential

• In addition to improving tenant quality and aesthetics, the return
• n 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 $7.2 million in 2008 (36% increase) $ ( )

• ccupancy increased from 96.1% at purchase to 99.1%

48

Greenfield Development

• Greenfield developments through in-house capabilities and with partners
• At September 30, 2008:
• Total greenfield developments = 8.8 million square feet, excluding shadow anchors
• RioCan’s owned interest = 3.5 million square feet
• Total estimated project cost = $1,585,778,000
• Total acquisition and development expenditures incurred to date = $442,334,000
• Total estimated remaining construction expenditures to complete = RioCan $489,550,000 /

Partners’ $653,894,000

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

49

Greenfield Development

RioCan Centre Burloak, Oakville, ON – pre-development

50

Greenfield Development

RioCan Centre Burloak, Oakville, ON – post-development

51

Greenfield Development

RioCan Elgin Mills Crossing Richmond Hill ON RioCan Elgin Mills Crossing, Richmond Hill, ON

52

Greenfield Development

East Hills, Calgary, AB

53

Greenfield Development

East Hills, Calgary, AB , g y,

54

Acquisition Activity

As at September 30, 2008 p ,

Quarter NLA (sq. ft.) at RioCan's RioCan's Ownership Cap Purchase Property Name & Location

1650-1600 Carling Avenue, Ottawa Q3 142,188 100.0% 6.40% $40.0 Cara Portfolio of 12 properties located in central and eastern Canada and one in western Canada Q3 66,958 100.0% 7.50% 21.0 Total Q3 209 146 61 0

Acquired Interest Interest Rate Price (mil)

Total Q3 209,146 61.0 H&R REIT 10 property portfolio located in central & eastern Canada Q2 543,645 50.0% 7.70% 78.0 RioCan Elgin Mills Crossing, Richmond Hill, ON (additional 12.5%) Q2 31,016 62.5% 6.25% 9.4 Total Q2 574,661 87.4 Sh T il St J h NF Q1 29 689 100 0% 7 62% 5 6 Shoppers on Topsail, St. Johns, NF Q1 29,689 100.0% 7.62% 5.6 Quartier DIX30, Autoroute 10 & 30, Brossard, QC Q1 43,326 50.0% 6.83% 153.0 Total Q1 73,015 158.6 Total Acquisitions To-Date 856,822 $307.0

• To-date, RioCan has completed total acquisitions in the amount of $307 million
• In June 2008, a second joint venture partnership with Kimco Realty Corporation was created (“RioKim II) for the purposes of

acquiring, on a 50/50 basis, a ten property portfolio located in central and eastern Canada aggregating 1.1 million square feet

• Purchase price for the portfolio was $156 million, with a cap rate of 7.7%
• $82.6 million of mortgages were assumed with a weighted average term of 8.1 years and a weighted average interest

rate of 6.17% 55

55

RioCan’s Proven Track Record - Strong Partnerships

Proven Track Record – Strong Partnerships g p

• 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

Partner Type of Partner Total Property GLA (sf) Partner GLA (sf)

Kimco Public 9,242,391 4,566,534 CMHC Private 370,454 185,227 CPPIB Institutional 1,167,470 631,188 RRVLP (TIAA-CREF, OMERS) Public / Institutional 590,713 502,106 Sun Life Institutional 443,263 310,984 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 Trinity Private 3,467,889 1,207,640 The Wynn Group Private 98,580 49,290 First Gulf Private 386,974 193,487 Frum Development Group Private 276,330 138,165 Total 18,113,714 8,990,663

57

Proven Track Record – RioKim

RioKim Joint Venture

• RioCan REIT and Kimco Realty Corporation, a U.S. REIT listed on the NYSE which also focuses on the
• wnership of shopping centres, each have a 50% interest in RioKim joint venture
• Invested over $1.3 billion in 45 properties since 2001 comprising over 9.2 million sq. ft. of 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

Brentwood Village Tillicum Centre

58

Proven Track Record – CPPIB

CPPIB Strategic Alliance

• 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 T d Ri C d CPPIB t i 1 1 illi ft f l t d i l

• Today, RioCan and CPPIB are partners in over 1.1 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 - Before RioCan Centre Burloak - After

59

Summary Summary

• Canada’s largest REIT
• Seasoned management team
• Excellent portfolio, solid tenants and diversified
• Focus on urban markets
• Over 80% national tenants
• Conservative debt profile and access to capital

St i tit ti l l ti hi

• Strong institutional relationships
• Solid development pipeline

60

Appendix

Appendix

i

Experienced Management Team

• 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 $8 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

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

Edward Sonshine, Q.C. – President & Chief Executive Officer, RioCan REIT Frederic Waks – Senior Vice President & Chief Operating 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 over 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.

Rags Davloor, CA – Senior Vice President & Chief Financial Officer, RioCan REIT

Extensive experience in Canadian real estate market

• Multi-disciplinary team with experience across a wide spectrum of real estate classes

Appendix – Greenfield Development Projects

As at September 30, 2008

ii

Appendix – Greenfield Development Projects (continued)

As at September 30, 2008

iii

Appendix– Greenfield Development Projects Descriptions (continued)

As at September 30, 2008

iv

v

Appendix– Greenfield Development Projects Descriptions (continued)

As at September 30, 2008

RioCan Yonge Eglinton Centre 2300 Yonge Street, Suite 500, PO Box 2386 T t ON Toronto, ON 416-866-3033 / 1-800-465-2733 www.riocan.com