RIOCAN INVESTOR PRESENTATION First Quarter 2013 May 14, 2013 - - PowerPoint PPT Presentation

RIOCAN INVESTOR PRESENTATION First Quarter 2013

May 14, 2013

TRANSFORMING…

Forward Looking Statements

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

• ur 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 differ materially from such conclusions, forecasts

• r 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 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.

One of North America’s Largest Retail REITS

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344

retail properties in Canada & U.S.

84 million

sqft total portfolio

$8.4 billion

market cap

54 million

sqft owned

$14.4 billion

enterprise value

~86%

revenue generated by national and anchor tenants

~7,775

tenancies

Investment Highlights

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Strong, reliable distribution yield provided to investors Stable, dominant, and geographically diversified portfolio of national retail tenants Disciplined growth strategy in Canada and U.S. Positioned to benefit from robust acquisition activity and development pipeline Experienced, performance driven management team Conservative balance sheet / financial strength and access to capital

QC

PA VA

Property Portfolio

5

As at March 31, 2013 at RioCan’s interest

CT MA

BC AB ON QC SA MB NB NFLD

294

retail properties

45 million sqft 85.7%

annualized rental revenue

TX GTA

50

retail properties

8.9 million sqft 14.3%

annualized rental revenue

Property Portfolio – Canada

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Calgary Edmonton Vancouver Toronto Montreal Ottawa

BC AB ON QC

Annualized Rental Revenue by Major Market Proforma Post Acquisitions & Asset Sales

8.3%

Major markets combined, 70.6% Rest of Canada, 29.4%

5.9% 3.8% 3.7% 9.1% 39.8%

PA VA

Property Portfolio – U.S.

7 RI

CT NH MA

TX

Regional Market Strategy & Focus Annualized Rental Revenue by State

NY MD NJ

WV

55.1% 2.7% 0.9% 6.7% 2.1% 0.7% 3.0% 2.8% 21.6% 2.1% 2.3%

As at March 31, 2013

50

retail properties

8.9 million sqft

PA VA

Property Portfolio – U.S.

8 RI

CT NH MA

TX

Regional Market Strategy & Focus Annualized Rental Revenue by State – Proforma RPAI Transaction

NY MD NJ

WV

55.3% 2.7% 0.8% 6.6% 2.1% 0.7% 3.0% 2.8% 21.6% 2.1% 2.3%

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retail properties

8.9 million sqft

Strong Tenant Relationships

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Strong Tenant Relationships

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Top 10 Canada & US Combined

Top 10 Tenant Name Annualized Rental Revenue Number Of Locations Total Area Occupied (Sq. Ft. In 000s) Weighted Avg Remaining Lease Term (Yrs)

1

Walmart

4.4% 34 4,110 13.1

2

Canadian Tire Corporation (i)

3.9% 100 2,044 9.0

3

Famous Players/Cineplex/Galaxy Cinemas

3.6% 30 1,417 10.3

4

Metro/Super C/Loeb/Food Basics

3.4% 57 2,081 7.4

5

Winners/HomeSense/Marshalls

3.0% 74 1,699 7.2

6

Loblaws/No Frills/Fortinos/Zehrs/Maxi

2.6% 32 1,315 7.3

7

Staples/Business Depot

2.1% 57 1,135 6.2

8

Target Corporation

1.9% 24 2,014 9.0

9

Future Shop/Best Buy

1.8% 35 799 6.2

10 Shoppers Drug Mart

1.6% 48 525 9.2

(i) Canadian Tire Corporation includes Canadian Tire/PartSource/Mark's Work Wearhouse/Sport Mart/Sport Chek/Sports Experts/National Sports/Atmosphere

As at March 31, 2013

Strong Tenant Relationships

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Top 10 Canada

Top 10 Tenant Name Annualized Rental Revenue Number Of Locations Total Area Occupied (Sq. Ft. In 000s) Weighted Avg Remaining Lease Term (Yrs)

1

Walmart

4.7% 29 3,334 12.7

2

Canadian Tire Corporation (i)

4.6% 100 2,044 9.0

3

Famous Players/Cineplex/Galaxy Cinemas

4.2% 30 1,417 10.3

4

Metro/Super C/Loeb/Food Basics

4.0% 57 2,081 7.4

5

Winners/HomeSense/Marshalls

3.4% 68 1,548 7.2

6

Loblaws/No Frills/Fortinos/Zehrs/Maxi

3.1% 32 1,315 7.3

7

Target Corporation

2.2% 24 2,014 9.0

8

Staples/Business Depot

2.1% 48 969 6.3

9

Shoppers Drug Mart

1.9% 48 525 9.2

10

Reitmans/Penningtons/Smart Set/Addition-Elle/ Thyme Maternity

1.7% 122 510 4.7

(i) Canadian Tire Corporation includes Canadian Tire/PartSource/Mark's Work Wearhouse/Sport Mart/Sport Chek/Sports Experts/National Sports/Atmosphere

As at March 31, 2013

Strong Tenant Relationships

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Top 10 U.S.

Top 10 Tenant Name Annualized Rental Revenue Number Of Locations Total Area Occupied (Sq. Ft. In 000s) Weighted Avg Remaining Lease Term (Yrs)

1

Giant Food Stores/ Stop & Shop (Royal Ahold)

9.7% 20 1,025 12.9

2

Best Buy

3.8% 11 332 7.4

3

PetSmart

3.0% 15 286 5.7

4

Walmart

2.5% 5 776 15.7

5

Michael’s

2.1% 13 233 6.2

6

Ross Dress for Less

1.9% 10 235 5.5

7

Staples

1.6% 9 166 5.6

8

Bed Bath & Beyond

1.4% 9 195 7.2

9

Lowes

1.3% 3 353 15.3

10

Market Street

1.3% 2 138 10.8 As at March 31, 2013

Lease Rollover Profile

Broadly Distributed Lease Expiries

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2,424 4,120 4,193 4,838 4,084

2013 2014 2015 2016 2017

331 707 473 448 610

2013 2014 2015 2016 2017

% Square Feet expiring / portfolio NLA

Canadian Portfolio

As at March 31, 2013 U.S. Portfolio As at March 31, 2013

’000s Square Feet ’000s Square Feet

5.9% 10.1% 10.2% 11.8% 10.0%

3.7%

7.9% 5.3% 5.0% 6.9%

Occupancy since 1996

Historical Occupancy Rates 1996 to 2012

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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% 97.4% 97.4% 97.6% 97.4% 97.0%

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Q1 2013 As at March 31, 2013

Financial Highlights Q1 2013

Financial Highlights

• RioCan’s Operating FFO increased by 20% to $124 million for the three months ending March 31,

2013 (“First Quarter”) compared to $103 million in the first quarter of 2012. On a per unit basis, Operating FFO increased 11% to $0.41 per unit from $0.37 per unit in the same period of 2012;

• Overall occupancy was 97.0% at March 31, 2013, compared to 96.9% at March 31, 2012;
• RioCan renewed 808,000 square feet in the Canadian portfolio during the First Quarter at an

average rent increase of $1.93 per square foot, representing an increase of 13.4%, compared to 10.0% for the same period in 2012;

• During the First Quarter, RioCan acquired interests in one income property in Canada and one

income property in the US aggregating approximately 169,000 square feet at an aggregate purchase price of $19 million at RioCan’s interest at a weighted average capitalization rate of 6.3%;

• Subsequent to the quarter end, RioCan completed the purchase of four properties in Canada at an

aggregate purchase price of $418 million and a weighted average capitalization rate of 5.2%, which includes Burlington Mall and Oakville Place, two regional enclosed malls;

• Subsequent to the quarter end, RioCan sold or has under firm contract to sell four properties located

in secondary markets at a total purchase price of $364 million;

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Financial Highlights

• During the First Quarter, RioCan issued $250 million of Series S five year senior unsecured

debentures at interest rate of 2.87%. Subsequent to the quarter end, RioCan has filed a Redemption Notice for the $150 million Series M debentures that carry a coupon of 5.65% and issued $200 million Series T ten year senior unsecured debentures at an interest rate of 3.725%;

• On February 7, 2013 RioCan sold its entire position of 9.4 million shares of Cedar for total proceeds
• f approximately US$48 million and during the quarter RioCan opened its first regional office outside
• f Canada in Mount Laurel, New Jersey; and
• Beginning January 2013, RioCan increased its monthly distribution by 2% to $0.1175 per unit ($1.41

per unit annualized from $1.38 per unit).

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Financial Highlights

(in millions of $ except per unit amounts)

Revenues 764 758 882 988 1,128 2008 2009 2010 2011 2012 Operating FFO* 315 324 276 380 440

2008 2009 2010 2011 2012

Operating FFO* Per Unit 1.32 1.22 1.33 1.43 1.52

2008 2009 2010 2011 2012

18 Years ended December 31st

* Note: FFO reported under IFRS for 2010 onwards, excludes trading gain income

Quarterly Financial Highlights

(in millions of $ except per unit amounts)

Revenues*

220 216 234 237 237 246 267 274 269 283 301 306

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Operating FFO

83 85 83 90 93 97 100 103 106 115 116 124

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Operating FFO Per Unit

0.34 0.34 0.33 0.35 0.36 0.37 0.36 0.37 0.37 0.40 0.39 0.41

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

19 As at March 31, 2013

2010 2011 2012 2010 2011 2012 2010 2011 2012 2013

* At RioCan’s interest

2013 2013

Financial Highlights

(in millions of $)

452 466 551 622 713

2008 2009 2010 2011 2012

Net Operating Income* Q1 2010 – Q1 2013

136 138 147 148 151 156 167 171 172 182 188 186

Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1

Net Operating Income 2007 –2012

20 As at March 31, 2013

2010 2011 2012

* At RioCan’s interest

2013

Financial Highlights

(in millions of $ except per unit amounts)

Distributions to Unitholders 228 261 281 285 293 277 297 318 343 367 2008 2009 2010 2011 2012

0.99 1.04 1.13 1.14 1.07 1.01 1.04

1.3275 1.36 1.38 1.38 1.38 1.38 1.41

2007 2008 2009 2010 2011 2012 2013*

Distributions to Unitholders per Unit

21 As at Dec. 31, 2012

Distributions to Unitholders net of DRIP Distributions per Unit net of DRIP

* Effective January 2013, RioCan increased its distribution 2% to $1.41 annualized

Financial Summary

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Period Ended March. 31,

(in millions of $ except per unit amounts)

% Change

2013 vs. 2012

2013 2012

Total Revenues - consolidated 11.9% $292 $261 Total Revenues – at RioCan’s interest 14.2% $306 $268 Operating FFO 20.4% $124 $103 Operating FFO per Unit 10.8% $0.41 $0.37 Distributions to unitholders 10.4% $106 $96 Distributions to unitholders per Unit (annualized) 2.2% $1.41 $1.38 Distributions to unitholders net of distribution reinvestment plan (DRIP) 6.8% $78 $73 Distributions to unitholders net of DRIP per Unit

• $0.26

$0.26 Unit issue proceeds under distribution reinvestment plan 21.7% $28 $23 Distribution reinvestment plan participation rate 11.0% 26.3% 23.7%

As at

Total assets - consolidated 16.8% $12,713 $10,884 Total assets – at RioCan’s interest 17.9% $12,975 $11,001 Debt – consolidated 12.2% $5,477 $4,881 Debt – at RioCan’s interest 13.4% $5,748 $5,069 Debt to Total Assets – (at RioCan’s interest)

• 43.7%

45.9% Debt Service Coverage (at RioCan’s interest)* 8.0% 2.03x 1.88x Market capitalization 10.3% $8,374 $7,590 Total capitalization (incl. Preferred Units) 11.4% $14,411 $12,937

*Coverage figures calculated on a twelve month rolling basis

Financial Summary

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Occupancy and Leasing Profile

(i) – Includes impact of the vacancy of Zellers totalling 188,000 sq ft at 100% (100,500 sq ft at RioCan’s interest) during the quarter. Retention rate excluding Zellers is 81.1%. (ii) – Refers to the growth in same store on a year over year basis

2013

(thousands of square feet, First Fourth Third Second First Fourth Third Second millions of dollars) quarter quarter quarter quarter quarter quarter quarter quarter Committed occupancy 97.0% 97.4% 97.3% 97.4% 96.9% 97.6% 97.5% 97.5% Economic occupancy 95.8% 95.9% 95.5% 95.5% 95.7% 96.6% 96.3% 96.3% NLA leased but not paying rent 615 711 855 871 542 466 541 485 Annualized rental impact 15.0 $ 15.0 $ 18.0 $ 18.0 $ 12.0 $ 11.0 $ 12.0 $ 13.0 $ Retention rate – Canada (i) 68.3% 94.3% 84.8% 89.9% 91.2% 90.5% 88.9% 92.1% % increase in average net rent per sq ft – Canada 13.4% 18.4% 12.9% 13.4% 10.0% 14.5% 7.2% 13.9% Retention rate – US 98.8% 87.6% 96.3% 84.2% 83.1% 95.7% 89.9% 96.9% % increase in average net rent per sq ft – US 2.3% 5.1% 6.0% 7.3% 7.2% 8.9% 6.4% 9.3% Average in place rent 15.77 $ 15.70 $ 15.85 $ 15.33 $ 15.37 $ 15.14 $ 15.09 $ 14.91 $ Same store growth (ii) – Canada 0.1% 0.2% 0.0% 1.5% 1.5% 1.9% 1.3% 0.3% Same store growth (ii) – US 1.4% 1.9% (0.3%) 1.3% (0.6%) 1.3% 1.0% 1.4%

2011 2012

Financial Summary

24 (thousands of dollars)

Three Months Ended March 31, 2013

2013 2012 Increase (decrease)

Net Operating Income Same store1 $139,387 $139,266 0.1% Land use intensification $1,205 $951 nm Same properties2 $140,592 $140,217 0.3% Acquisitions & Dispositions $8,060 44 nm Greenfield development $3,497 $3,348 4.5% NOI before adjustments $152,149 $143,609 5.9% Lease cancellation fees $3,754 $783 nm Straight-lining of rents $1,337 $472 nm NOI – At RioCan’s interest $157,240 $144,864 8.5%

“nm” – not meaningful. 1 Same store refers to those income properties that were owned by RioCan and had consistent leasable area in both periods. 2 Same properties refer to those income properties that were owned by RioCan throughout both periods.

Net Operating Income – Three months ended March 31 Canadian Portfolio

Financial Summary

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(thousands of dollars)

Three Months ended March 31,

2013 2012 Increase (decrease)

Base rent – US$ $22,255 $21,849 1.9% Property tax and operating cost recoveries – US$ 7,286 6,417 13.5% Other – US$ 195 415 nm Rental revenue – US$ 29,736 28,681 3.7% Property operating costs – US$ 8,640 7,869 9.8% Same store and same properties 12– US$ $21,096 $20,812 1.4% Foreign currency translation adjustment 159 99 nm Same store and same properties 12 – CDN$ 21,255 20,911 1.6% Acquisitions 6,767 12 nm NOI before adjustments $28,022 $20,923 33.9% Dispositions – 978 nm Lease cancellation fee 301 – nm Straight-lining of rents 896 915 nm NOI – At RioCan’s interest $29,219 $22,816 28.1%

“nm” – not meaningful. 1 Same store refers to those income properties that were owned by RioCan and had consistent leasable area in both periods. 2 Same properties refer to those income properties that were owned by RioCan throughout both periods..

Net Operating Income

US Portfolio

Conservative Debt Profile

• Debt‐to‐Total Assets of 43.7% at March 31, 2013;
• Total operating lines $429 million with

approximately $405 million available at March 31, 2013

• Unencumbered pool has a fair value of $1.6 billion
• Floating rate debt 6.3% of total debt
• Strong coverage ratios in Q1 2013
• EBITDA interest coverage of 3.02x
• Debt service coverage of 2.21x and
• Fixed charge coverage of 1.10x

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* At RioCan’s interest

RioCan Capital Structure

34.4% 11.0% 2.1% 52.5%

0% 25% 50% 75% 100% Book Value*

Common Units - 301 million units outstanding, $8.4 billion market capitalization Preferred Units - $289 million market capitalization Debentures - $1.4 billion Mortgages & Lines of Credit - $4.4 billion 27

28.8% 9.9% 2.1% 59.2%

0% 25% 50% 75% 100% Market Value

Total Assets – $13.0 Billion Total Enterprise Value* – $14.4 Billion * At RioCan’s interest

Conservative Debt Structure

Growth in Asset vs Debt

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Modest Leverage, Strong Interest Coverage

• RioCan has consistently adhered to a conservative debt policy even

through periods of considerable growth

• 60% max permitted under covenant
• Interest coverage well in excess of the 1.65x maintenance covenant

47.3% 48.2% 51.9% 53.1% 53.8% 53.9% 56.6% 56.3% 54.9% 55.6% 49.1% 46.4% 43.5% 43.7%

2.9x 2.9x 2.6x 2.6x 2.7x 2.8x 2.9x 2.7x 2.6x 2.2x 2.5x 2.5x 2.7x 3.0x 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012Q1 2013 Leverage Interest Coverage

29

* At RioCan’s interest

Debt Maturity Schedule

30

• Includes redemption of Series M, and Series T offering completed after the quarter end.
• Long‐term, staggered debt maturity profile
• 4.5% Overall WAIR and 4.7 Year weighted avg. term to maturity at RioCan’s interest
• Low floating rate debt exposure (6.3% of total debt) at RioCan’s interest
• Mortgage financings currently sub 3.0% (dependent on term)

5.7% 4.5% 4.7% 4.7% 3.9% 4.1%

3.00% 4.00% 5.00% 6.00% 7.00%

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

2013 2014 2015 2016 2017 Thereafter Scheduled principal amortization Mortgages payable

$ Millions

Weighted Avg. Interest Rate on Maturing Debt 342 482 803 845 1,092 2,261

Leverage and Coverage Ratios & Targets

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3 Months Rolling 12 Months Targeted Ratios March 31/13 5 March 31/13 March 31/13 Dec. 31/12* Dec. 31/12 Interest coverage ratio1 >2.75x 3.02x 2.84x 2.76x 2.69x 2.69x Debt service coverage ratio2 >2.25x 2.21 2.11 2.03 1.98 1.99 Fixed charge coverage ratio3 >1.1x 1.10 1.08 1.06 1.04 1.05 Net operating debt to adjusted operating EBITDA ratio4 <6.5x 7.05 7.05 7.04 7.09 7.08 Unencumbered Assets ($millions) $1,611 $1,353 Unsecured Debentures ($millions) $1,402 $1,299 Unencumbered Assets to Unsecured Debt >130% 115% 104%

(1) Interest coverage defined as: Adjusted EBITDA for the period, divided by total interest expense (including interest that has been capitalized). (2) Debt service coverage defined as: Adjusted EBITDA for the period, divided by total interest expense and scheduled mortgage principal amortization (including interest that has been capitalized). (3) Fixed charge coverage is defined as: Adjusted EBITDA for the period, divided by total interest expense (including interest that has been capitalized) and distributions to common and preferred unitholders. (4) Net operating debt to Adjusted Operating EBITDA is defined as: the average debt outstanding (net of cash) for the period less debt related to property under development divided by Adjusted EBITDA excluding amounts related to property under development (5) Adjusted to exclude interest capitalized. * Restated on same basis as March 31, 2013

* At RioCan’s interest

Growth Strategy

Future Growth Drivers

33

Future Growth Drivers

Institutional Relationships Organic Growth Acquisitions Development Pipeline Land Use Intensification

Acquisitions

34

2010 2011 2012 $986 $1,100 $926 Annual Acquisitions – Canada & US

Purchase price at RioCan’s interest (millions)

Total

$3.01 Billion

Acquisitions

Track Record – Acquisitions 2011 – Q1 2013

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Location Cap Rate RioCan’s Purchase Price (millions) Canada 6.4% 506 United States 6.9% 567 2011 Acquisitions 6.6% $1,073 Canada 5.7% 543 United States 6.8% 383 2012 Acquisitions 6.1% $926 Canada 6.0% 16 United States 7.6% 3 Q1 2013 6.3% $19 Grand Total 2011-Q1 2013 6.4% $2,018

Dissolution of JV with Retail Properties of America, Inc. (“RPAI”)

Transaction Highlights

• RioCan and RPAI have agreed to dissolve their joint venture arrangement formed in 2010;
• RPAI to acquire from RioCan a 80% interest in 5 properties to increase their ownership to

100%.

• When completed, RioCan will own a 100% interest in eight high quality retail assets in Texas,

including the dominant power centres in Austin and San Antonio. The portfolio includes four Target shadow anchored centres in Austin, San Antonio and Temple, as well as four exceptional grocery anchored or shadow anchored centres in Houston and Dallas.

• The additional 20% interest will provide RioCan with a 100% ownership interest for 2.5 million

square feet of RioCan’s 4.3 million square foot portfolio in Texas.

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Transaction Highlights

• The gross purchase price for the 8 properties is $96.6 million, representing a

capitalization rate of 6.9%. Under the terms, RioCan will assume RPAI’s share of the currently in place mortgage financing of $41.8 million, which carries an average interest rate of 3.7% and has an average term to maturity of 2.9 years. The purchase price for the 8 properties net of financing and mark to market adjustment on debt is $53.7 million.

• RioCan will sell its 80% ownership in five assets at a gross purchase price of $102.8

million ($45.6 million net of financing and mark to market adjustment on debt).

• RioCan’s US portfolio is composed of 26 properties containing 4.6 million square feet in

the Northeastern US and 4.3 million square feet in 24 properties (19 properties containing 4.3 million square feet on completion) in Texas.

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Transaction Highlights

39

High quality assets with a focus towards grocery anchored centres

Transaction Highlights

Assets Acquired

40 Property Name Location NLA

Occupancy

Major Tenants

1890 Ranch Austin 486,896 90.5% Super Target (shadow), Ross Dress for Less, Beall’s, PetSmart Alamo Ranch San Antonio 465,371 89.4% Super Target (shadow), Ross Dress for Less, Dick’s Sporting Goods, PetSmart, Michaels Bear Creek Shopping Center Houston 87,912 98.8% HEB Bird Creek Crossing Temple 124,941 100.0% Target (Shadow), Home Depot (Shadow), PetSmart, Michaels, Office Max Great Southwest Crossing Dallas 92,270 100.0% Sam’s Club (shadow), Kroger (Shadow), PetSmart, Office Depot Riverpark Phase I,II Houston 253,011 95.9% HEB, LA Fitness, Dollar Tree Southpark Meadows Austin 921,141 97.0% Walmart (ground lease), Super Target (Shadow), Bed Bath & Beyond, Marshalls, Ross Dress for Less, Sports Authority Suntree Square Dallas 99,269 94.2% Tom Thumb (Safeway),

TOTAL / W.A.

2,530,811 94.4%

RioCan Cedar Dissolution Transaction Highlights

• In October 2012, RioCan and Cedar Realty Trust entered into an agreement to dissolve their joint

venture formed in late 2009.

• RioCan acquired from Cedar a 20% interest in 21 properties to increase its ownership to 100% and Cedar

has acquired from RioCan an 80% interest in Franklin Village to increase its ownership to 100% in the property.

• The gross purchase price for the 21 properties is $120 million, representing a capitalization rate of 6.5%.

Under the terms, RioCan assumed Cedar’s share of the currently in place mortgage financing of $54.4 million, which carries an average interest rate of 5.2% and has an average term to maturity of 5.2 years. The purchase price for the 21 properties net of financing and mark to market adjustment on debt was $64.4 million.

• RioCan sold its 80% ownership in Franklin Village at a gross purchase price of $60.1 million ($25.4 million

net of financing).

• Net cash investment by RioCan of approximately $39 million.
• In February 2013, RioCan sold its entire position of 9.4 million shares of Cedar for $48 million.
• In January 2013, RioCan opened a regional office in Mount Laurel, New Jersey and effective February 1,

2013 RioCan assumed property and asset management functions for its Northeast portfolio.

41

Figures in US dollars

Recent Enclosed Mall Acquisitions

42

Burlington Mall, Burlington, Ontario Oakville Place, Oakville, Ontario Georgian Mall, Barrie, Ontario

Recent Enclosed Mall Acquisitions

Impact on Property Type Mix

43

RioCan plans to actively increase its presence in two sectors; enclosed regional malls and urban retail centers, as a means of leveraging its retail tenant base across the US and Canada.

The 2012 purchase of Georgian Mall along with the acquisitions of Oakville Place and a 50% interest in Burlington Mall in April 2013, complement RioCan’s strategic purchases and the redevelopment and development of certain retail centers such as Yonge Eglinton Center, Sheppard Center, Lawrence Square, Shoppers World Brampton and the Globe and Mail lands. RioCan considers these sectors to have strong growth and value creation potential. There are additional opportunities for organic growth within the acquired shopping centres, which RioCan believes it can realize with its deep infrastructure and management strength.

Office, 4.3% Urban Retail, 8.6% Non-Grocery Anchor, 5.0% Enclosed Shopping Centre, 15.1% Grocery Anchored Centre, 18.3% New Format Retail, 48.7%

As at March 31, 2013

Office, 4.3% Urban Retail, 8.7% Non-Grocery Anchor, 5.0% Enclosed Shopping Centre, 18.0% Grocery Anchored Centre, 18.8% New Format Retail, 45.2%

Proforma Annualized rental revenue by property type

RioCan Primaris Acquisitions

• RioCan completed the purchase of a 50% interest in Burlington Mall in Burlington, Ontario, and a 100% interest in Oakville

Place in Oakville, Ontario.

– The gross purchase price for these two properties was approximately $362 million (at RioCan’s interest) at a cap rate of approximately 5.2%. In connection with the purchase, RioCan assumed, at its interest, the in place mortgage financing of approximately $165 million. The purchase price was reduced by a mark-to-market adjustment on closing in consideration of the debt’s above market interest rate, which is currently estimated at approximately $9.8 million.

• Extends RioCan’s retail reach to develop deeper relationships with fashion tenants and could create additional
• pportunities at RioCan’s urban properties and Outlet Centres.
• RioCan also acquired a third asset, South Cambridge Centre from H&R REIT at a purchase price of $35 million at a cap rate
• f approximately 6.7%.

44

Burlington Mall, Burlington, Ontario Oakville Place, Oakville, Ontario

Recent Acquisitions Georgian Mall

• In Q3 2012, RioCan

purchased Georgian Mall in Barrie, Ontario for $318 million at a 5.4% cap rate

• Obtained first

mortgage financing of $185 million at a 3.1% interest rate

45

• RioCan’s largest single acquisition by dollar amount
• A dominant regional mall in a quickly growing market with solid

demographics

Extracting Value by Recycling Capital

• RioCan is currently in various stages of selling eleven non-core Canadian properties located in secondary markets. During

the first quarter, RioCan sold one property at a sales price of $10.5 million and subsequent to the quarter, RioCan sold four properties at a sales price of $363.8 million. Additionally, RioCan has four property dispositions under conditional contract where conditions have not been waived pursuant to purchase and sale agreements at an aggregate sales price of $35.7 million. RioCan is also in the process of marketing for sale two other non-core Canadian properties;

• Current asset sales plan involves selling institutional grade, unenclosed centres, in lower growth markets and secondary

assets in tertiary markets;

• These asset sales will further enhance RioCan’s strategy to be focused in Canada’s high population, high growth markets;

– RioCan’s proforma concentration in Canada’s six high growth markets if completed will exceed 70% (Year end 2012 68%) – Capital from asset sales redeployed into enclosed mall acquisitions.

46

RioCan’s plan to recycle capital into higher growth assets will provide for enhanced returns to unitholders and a reduced need for access to public equity markets to raise capital.

Extracting Value by Recycling Capital

Growth in Canada’s 6 Major Markets

RioCan’s program of recycling capital is to shift the portfolio’s geographic allocation away from low growth markets into Canada’s six high growth major markets. Markets with highest population growth will outperform smaller markets with little growth or negative populations statistics.

2008 2012 Proforma*

65.9% 67.5% 70.6%

* Includes recent Regional Enclosed Mall acquisitions and secondary market property dispositions 47

Development Activity

At March 31, 2013

• Total developments comprise 10.5 million square feet, including shadow anchors
• RioCan’s interest consists of 4.8 million square feet (9.2 million square feet with partners)
• Total estimated project cost is $2.5 billion, with RioCan’s interest being approx. $1.3 billion
• Invested $516 million in these projects
• RioCan’s funding obligations, before construction financing, is $723 million ($90 million is for current development and

$633 million is for potential future development)

– In addition, RioCan will fund approx. $115 million under mezzanine lending program to certain partners, primarily Trinity Developments ($22 million is for current development and $93 million is for potential future development)

• Generate unlevered yield between 7% to 11%, at a weighted average of 8.5% to 9.5%
• Recent Urban Development acquisitions include Yonge & Eglinton Northeast corner, Bathurst & College, and 740 Dupont in

the GTA and Herongate Mall in Ottawa, ON

• In July 2012, RioCan formed a JV with Allied Property REIT to develop sites in major markets across Canada
• RioCan, Allied Properties and Diamond Corp entered into a joint venture arrangement and have acquired two parcels which

comprise the Globe and Mail site in downtown Toronto 48

Development Pipeline

Greenfield developments through in‐house capabilities and with partners, such as Trinity and Canada Pension Plan Investment Board (CPPIB) and Allied Properties

• 250

250 750 1,250 1,750 2,250

2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Square feet (‘000s)

Development Buildout History & Pipeline

at RioCan’s Interest

Development Activity Development History

49 From 2006 through Dec. 31, 2012:

• RioCan’s development pipeline has

added 4.3 million square feet to the portfolio

• Invested $1.2 billion of total capital

(development costs and land acquisition costs)

• Average cost psf including land of

projects completed from 2006 to 2012 was approximately $280 psf

Pipeline*

* Subject to preleasing and market conditions

RioCan’s development portfolio is expected to add considerable value to the overall investment property portfolio over the next 3-5 years. These assets are expected to generate higher yields than what can currently be achieved in the acquisition market.

Development Activity - Current Portfolio

69% 19% 1% 11%

Property Type as a % of Development Portfolio

Power Centre Main Street/Urban Convenience Retail Excess Land 50

Alberta 14% New Brunswick 5% Toronto 13% Ottawa 12% Suburban GTA 38% Other Ontario 18% Ontario 81%

Development Portfolio by Geographic Diversification

Development Pipeline

51

• RioCan, Allied Properties and Diamond Corp announced in

November 2012 that they had entered into a joint venture arrangement to acquire the Globe and Mail site in downtown

• Toronto. In April 2013, the partners also purchased an

adjacent parcel.

• Acquired at a purchase price of $136 million (at 100%).

Second parcel (highlighted in red) acquired at a purchase price of $37 million (at 100%).

• Project is expected to be mixed use retail, office and

residential.

• The joint venture will be structured on a 40/40/20 basis

between RioCan, Allied and Diamond. RioCan and Allied would act as joint development and construction managers. Upon completion of any projects RioCan would act as property manager for any retail portion of the property and Allied would act as property manager for any office portion

RioCan & Allied Properties REIT Joint Venture

Globe & Mail Lands

Source: RBC

Development Pipeline

52

• RioCan and Allied Properties announced in July

2012 that they had entered into a joint venture arrangement to acquire sites in the urban areas of major Canadian cities that are suitable for mixed use intensification

• The joint venture will be structured on a 50/50

basis between RioCan and Allied. RioCan and Allied would act as joint development and construction

• managers. Upon completion of any projects RioCan

would act as property manager for any retail portion of the property and Allied would act as property manager for any office portion

• First two sites to be developed are:

– College and Manning which will be developed into a mixed use complex with approx. 125,000 square feet and – King and Portland which will be developed into a mixed use complex with approx. 400,000 square feet in Toronto, Ontario.

RioCan & Allied Properties REIT Joint Venture

King Street College and Manning

Development Activity

53

Target will open 24 locations in RioCan’s portfolio

• First 15 locations,
• Eight have opened year to date
• The majority to open throughout the

remainder of 2013

• Target will be the anchor tenant at RioCan’s St Clair

and Weston road project Stockyards

• Canada’s first purpose built Target location
• pening spring 2014
• RioCan employing an extensive capital

improvement program for those locations where it feels the cash flow can be improved

• RioCan expects to spend approximately $18 million

to upgrade existing shopping center infrastructure and aesthetics

Development Pipeline

54

• St. Clair & Weston, Toronto

555,000 sqf. two storey retail – Projected Completion 2014

Anchor Tenant - Target

Development Partners: Trinity and Canada Pension Plan Investment Board (“CPPIB”)

Development Pipeline

• 2.8 acre site located in the East

Village area of downtown Calgary, Alberta.

• The site was acquired on a 50/50

joint venture basis with KingSett at a purchase price of $20 million.

• The joint venture is

contemplating the development

• f 526,000 square feet of mixed

use retail and office space.

• Development is anticipated to

commence in the spring of 2014.

55

Calgary East Village

Development Pipeline

• This 160 acre site located in Oshawa, Ontario is

currently being developed into a 1.2 million square foot regional new format retail centre.

• RioCan acquired its partners’ interests in July 2011.

RioCan now owns 100% of this development site. 56

Sage Hill, Calgary Windfield Farms, Oshawa

RioCan has completed the acquisition of Sage Hill Crossing, a 34 acre greenfield development site in Northwest Calgary. The purchase price for the lands, which will be serviced and zoned at the time of closing, will be $32 million ($16 million at RioCan’s interest). RioCan will own the development on a 50/50 basis with KingSett Capital. Once completed, the anticipated gross leasable area is 378,000 square feet

• f retail use. A letter of intent is in place with Walmart

for a land lease and a binding offer to lease has been executed with Loblaws for a 45,000 square foot store. Development is expected to commence in 2013.

Canadian Outlet Centre Development

• In 2011, RioCan entered into an exclusive joint venture for the acquisition, development and

leasing of sites across Canada that are suitable for development or redevelopment as outlet shopping centres similar in concept and design to those within the existing Tanger U.S. portfolio.

• In December 2011, RioCan and Tanger acquired the Cookstown Outlet Mall, located about 45

minutes north of Toronto. A 161,000 square foot outlet centre with the potential to add a further 160,000 square feet of retail space.

• In November 2012, RioCan and Tanger acquired two sites in the Montreal area, Les

Factoreries Saint-Sauveur, and Le Carrefour Champetre (Bromont Outlet Centre). The Montreal sites are existing centres which will be expanded and re-branded as Tanger Outlet Centers.

• The joint venture currently has a 52.5 acre site in Kanata, Ontario, which the partners expect

to break ground on during the second quarter 2013.

• Also pursuing a site in the Calgary market.

57

Development Pipeline

• 161,000 square foot outlet centre with the potential to add a further 160,000 square feet of retail space
• Expect to break ground on expansion in Q2 2013.

58

Cookstown Outlet Mall

Purchased in December 2011 with Tanger Factory Outlet Centers.

Development Pipeline

• 52.5 acre site, approximately 20 kilometres west of Ottawa
• To be developed into a 347,000 square foot outlet centre
• Expect to break ground on development in Q2 2013.

59

West Kanata Lands

On April 23, 2013 RioCan and Tanger purchased the West Kanata Lands

Development Pipeline Tanger Opportunities

• 116,000 square foot outlet centre with the potential to add a further 15,000 square feet of retail space
• Well established outlet centre in suburban Montreal

60

Les Factoreries, St-Sauveur Tanger Outlet Centre

Development Pipeline Tanger Opportunities

• 162,000 square foot outlet centre with the potential to add a further 89,000 square feet of retail space
• Established outlet centre located 85kms east of Montreal, near the eastern townships

61

Bromont Tanger Outlet Centre – Bromont, Quebec

Land Use Intensification and Urban Development

• 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

62

“Densifying” existing urban locations

63

Yonge Eglinton Centre - Toronto, Ontario

• RioCan’s acquired the property for $223 million
• launched revitalization and expansion plan to

capitalize on area’s residential intensification

• significant increases in NOI and occupancy

Creating New Cash Flow Sources

64

RioCan Yonge Eglinton Centre –The Cube

Location: Toronto, Ontario Intersection: Yonge & Eglinton Total Proposed GLA: 45,000 square feet Design Concept: Urban Retail Construction Start: 2013

Today Proposed

Creating New Cash Flow Sources

65

The Sheppard Centre, Toronto

Location: Toronto, Ontario Intersection: Yonge & Sheppard Total Proposed GLA: 672,854 square feet Design Concept: Urban Retail

Today

• Potential for both

retail and residential expansion

• Fast growing area of

North Toronto

Proposed

Creating New Cash Flow Sources

66 Location: Toronto, Ontario Intersection: Yonge & Eglinton Total Proposed GLA: 54,000 square feet Design Concept: Urban Retail Anticipated Completion: 2017

NE Yonge Eglinton - Toronto, Ontario

Today Proposed

Creating New Cash Flow Sources

67 Location: Toronto, Ontario Intersection: 740 Dupont Street Total Proposed GLA: 184,000 square feet Design Concept: Urban Retail Anticipated Completion: 2017

740 Dupont - Toronto, Ontario

Creating New Cash Flow Sources

68

420 Bathurst Street, Toronto

Location: Toronto, Ontario Intersection: Bathurst & Dundas Total Proposed GLA: 133,000 square feet Design Concept: Urban Retail Anticipated Completion: 2015

Urban Intensification

• Located at the busy intersection of Bayview Avenue and

Eglinton Avenue in midtown Toronto

• The site benefits from excellent demographics and is a

probable location for a stop along the proposed Eglinton subway line

• The property is an excellent location for a redevelopment

project similar to what has been accomplished at 1717 Avenue Road 69

RioCan has a number of Urban Intensification opportunities in the GTA market

Sunnybrook Plaza, Toronto, ON Queensway Cineplex, Toronto, ON

• Located in Western Toronto at the corner of The Queensway

and Islington Avenue with access to the Queen Elizabeth Way (QEW)

• The Currently anchored by Cineplex, which will be expanded

to include VIP screens. This centre is an ideal property for additional density and potential redevelopment into a mixed‐use facility, in keeping with the trend of urban intensification

Urban Intensification – Completed Projects

70

Queen & Portland, Toronto, ON

Before After

Location: Toronto, Ontario Intersection: Portland & Queen Total Proposed GLA: 91,000 square feet Design Concept: Mixed‐use facility Construction Completed: 2011

Urban Intensification – Completed Projects

71

1717 Avenue Road, Toronto, ON

Location: Toronto, Ontario Intersection: 1717 Avenue Road Total Proposed GLA: 91,000 square feet Design Concept: Mixed‐use facility Construction Completed: 2011

72 Leasing of the Zellers stores not taken by Target should, in aggregate provide an opportunity for RioCan to generate additional rental income going forward, as the lease income previously generated by Zellers was considerably below current market rental rates.

• RioCan has nine locations leased by Zellers that were not selected by Target comprising approximately 727,000 square feet (640,000

square feet at RioCan’s interest) contributing $6.6 million of annual gross revenue ($6 million at RioCan’s interest).

• Average base rent on this space of $5.28 per square foot contributing $6.6 million of annual gross revenue ($6 million at RioCan’s

interest).

• RioCan negotiated a lease termination fee on these five remaining Zellers locations of $9.3 million.

RioCan has negotiated firm leases and conditional LOI’s for 350,000 square feet or 55% of the former Zeller’s space (at RioCan’s ownership interest) accounting for $5.4MM of gross revenue or 90% of the gross rent formerly paid by Zellers (at RioCan’s ownership interest). The average base rent on the re-leased space is $10.17 per square foot compared to the $5.28 per square foot formerly received from Zellers representing a 93% increase. Depending on the terms of the leases with new tenants, RioCan expects to spend a total of between $30 million and $40 million to redevelop and reposition the properties vacated by Zellers that will not be occupied by Target. The majority of this expense is projected to be incurred for construction costs associated with demolition and demising of premises, replacement of the store interiors, replacement of electrical, mechanical and plumbing systems, replacement of the exterior façade storefronts and loading areas as well as tenant allowances for the new tenancies. Given the significant amount of work required to redevelop and reposition the properties, RioCan estimates that the construction and tenant fixturing period will average approximately one year.

Zellers update

Organic Growth

Canadian Portfolio

73 Lease Expires

(thousands except psf and % amounts Portfolio NLA 2013 2014 2015 2016 2017 Total 40,914 2,424 4,120 4,193 4,838 4,084 Square Feet expiring/portfolio NLA 5.9% 10.1% 10.2% 11.8% 10.0%

Total average net rent psf

$16.17 $18.51 $16.26 $16.06 $16.89 $17.81

Ability to add growth through rental renewals with 48% of leases renewing over next five years.

• In Q1 2013 achieved renewal rent increases of 13% or $1.93 psf with an average renewal rate of $16.34.
• Retention rate of 81.1% excluding Zellers vacancies.

$12 $13 $14 $15 $16 $17 $18 $19 $20 700 1,400 2,100 2,800 3,500 4,200 4,900 2008 2009 2010 2011 2012 2013 2014 2015 2016

Rent PSF Square Feet (‘000s)

RioCan Lease Maturity Schedule and Renewal History

Square feet renewed/expiring (left axis) Achieved Renewal Rent PSF Expiring Rent PSF

Organic Growth

U.S. Portfolio

74

Lease Expires

(thousands except psf and % amounts

Portfolio NLA 2013 2014 2015 2016 2017 Total 8,902 331 707 473 448 610

Square Feet expiring/portfolio NLA 3.7% 7.9% 5.3% 5.0% 6.9%

0% 20% 40% 60% 80% 100% 2013 2014 2015 2016 2017

Leases Expiring Total Portfolio Cumulative

Square Feet expiring/portfolio NLA Ability to add growth through rental renewals with 29% of leases renewing over next five years.

• In Q1 2013 achieved renewal rent increases of 2.3% or $0.36 psf with an average renewal rental rate of $15.99
• Maintained a retention rate of 98.8%

Strong Institutional Relationships

• Through the years RioCan has developed strong institutional relationships
• Leverage RioCan’s capital to enhance returns and increase scale of

investments

• Generate additional revenue streams Property and asset management fees
• RioCan recently entered into a Joint Venture arrangement with KingSett

Capital when it acquired the Sheppard Centre

– RioCan manages the property, acts as leasing manager for the property and will be the development manager in connection with any redevelopment of the property. – Currently partnered with KingSett on the acquisition of the Sage Hill development site. – Currently partnered with KingSett on the acquisition of Burlington Mall as part of the Primaris acquisition

• RioCan has also developed a strong relationship with Allied properties

– RioCan has partnered with Allied on the urban development sites of King & Portland and College street in Toronto. – RioCan, Allied, and Diamond Corp. have entered into a joint venture to develop the Globe and Mail lands at Front Street and Spadina in downtown Toronto.

75

Strong Institutional Relationships

• 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 including a 10 property portfolio in

central and eastern Canada purchased in September 2008.

• RioCan provides asset and property

management, development and leasing services to RioKim in Canada.

• RioCan recently acquired an 80% interest in

Montgomery Plaza in Fort Worth, Texas from Kimco, who remains a 20% owner in the property and provides property management and leasing services.

76

RioKim Joint Venture

Brentwood Village Tillicum Centre

Strong Institutional Relationships

• 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 over

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

77

CPPIB Joint Venture

RioCan Centre Burloak ‐ Before RioCan Centre Burloak ‐ After

Strong Institutional Relationships

• Acquired in December 2009 on a 50‐50 basis
• Unique asset located in the Greater

Vancouver Area market of Surrey

• Diverse and strong tenant mix
• 529,827 sq. ft. anchored by a 217,278 sq. ft.

Walmart 78

CPPIB Strategic Alliance

Grandview Corners

• RioCan completed the rezoning for its St.

Clair and Weston Road development with Trinity and Canada Pension Plan Investment Board (“CPPIB”) in Toronto.

• Site work commenced in the fourth quarter
• f 2011. Expected completion in first half
• f 2014
• St. Clair & Weston

Strong Institutional Relationships

• RioCan has successfully completed the rezoning

requirements for its East Hills development with Trinity, CPPIB and the original vendor in Calgary, Alberta.

• The East Hills development consists of three phases.

Phase I and III comprise approximately 111 acres and Phase II comprises approximately 37 acres. 79

CPPIB Strategic Alliance

East Hills

• Jacksonport, located at 36th Street NE and Country Hills Boulevard NE

in Calgary, is a 105 acre development site.

• Will be developed into a new format retail centre with CPPIB and

Trinity

• Upon completion, the development is expected to feature

approximately 1.1 million square feet of retail space.

Jacksonport

Investment Highlights

80

Strong, reliable distribution yield provided to investors Stable, diversified portfolio of national retail tenants Disciplined growth strategy in Canada and U.S. Positioned to benefit from robust acquisition activity and development pipeline Experienced, performance driven management team Dominant platform, geographically diversified Conservative balance sheet / financial strength

RioCan Yonge Eglinton Centre 2300 Yonge Street, Suite 500 PO Box 2386 Toronto, Ontario M4P 1E4

TRANSFORMING…