Canada's RioCan REIT Q4 commercial NOI rises

Overview

• Canada retail property owner's Q4 commercial same property NOI grew 4.5% yr/yr

• Net income per unit for 2025 fell due to net valuation losses

Outlook

• RioCan expects 2026 Core FFO per unit between C$1.60 and C$1.62

• Company projects 2026 Commercial Same Property NOI growth of 3.5% to 4.0%

• RioCan plans C$45 mln to C$55 mln in development spending for 2026

Result Drivers

• LEASING SPREADS - New leasing spreads of 37.3% for the year drove blended leasing spreads to 21.1%, reflecting strong supply/demand fundamentals

• CAPITAL REPATRIATION - C$741.7 mln of Total Capital Repatriation helped reduce Adjusted Spot Debt to Adjusted EBITDA to 8.6x

• SAME PROPERTY NOI - Commercial Same Property NOI growth of 4.5% for the fourth quarter supported full year growth of 3.6%

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 7 "strong buy" or "buy", 3 "hold" and 1 "sell" or "strong sell"

• The average consensus recommendation for the commercial reits peer group is "buy"

• Wall Street's median 12-month price target for RioCan Real Estate Investment Trust is C$21.00, about 6.6% above its February 13 closing price of C$19.70

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Press Release: ID:nBw4067Ca

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