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Name | Symbol | Market | Type |
---|---|---|---|
RioCan Real Estate Investment Trust | TSX:REI.UN | Toronto | Trust |
Price Change | % Change | Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
0.27 | 1.66% | 16.56 | 16.52 | 16.59 | 16.61 | 16.31 | 16.31 | 807,265 | 21:12:42 |
RioCan Real Estate Investment Trust (“RioCan" or the "Trust”) (TSX: REI.UN) announced today its financial results for the three months and year ended December 31, 2023.
“RioCan continued to capitalize on Canada's short supply of quality space and robust retailer demand, generating some of the best operational results we have ever seen, and achieved our financial objectives for 2023,” said Jonathan Gitlin, President and CEO of RioCan. “Our performance speaks to the reliability and quality of our open air retail, prime locations, and foundation of necessity-based retailers. As we celebrate our 30th anniversary, we cement our position as a valuable long-term investment and Canada's premier REIT. RioCan's third consecutive annual distribution increase to Unitholders reflects our confidence in delivering continued operational excellence and meaningful value creation."
Financial Highlights
Three months ended December 31
Years ended December 31
(in millions, except where otherwise noted, and per unit values)
2023
2022
2023
2022
FFO 1
$
132.9
$
127.6
$
531.3
$
524.7
FFO per unit - diluted 1
$
0.44
$
0.42
$
1.77
$
1.71
Net income (loss)
$
(117.7)
$
(5.0)
$
38.8
$
236.8
Weighted average Units outstanding - diluted (in thousands)
300,417
302,423
300,479
306,247
As at
December 31, 2023
December 31, 2022
Net book value per unit
$
24.76
$
25.73
1. A non-GAAP measurement. For definitions, reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release.
Distribution Increase and Outlook
1. A non-GAAP measurement. For definitions, reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release.
Operation Highlights (i)
Three months ended December 31
Years ended December 31
2023
2022
2023
2022
Occupancy - committed (ii)
97.4 %
97.4 %
97.4 %
97.4 %
Retail occupancy - committed (ii)
98.4 %
97.9 %
98.4 %
97.9 %
Blended leasing spread
9.0 %
8.8 %
10.7 %
9.0 %
New leasing spread
13.2 %
11.8 %
14.7 %
12.3 %
Renewal leasing spread
8.7 %
8.3 %
9.8 %
8.2 %
(i) Includes commercial portfolio only.
(ii) Information presented as at respective periods then ended.
RioCan Living Update 1
1. Units at 100% ownership interest.
2. A non-GAAP measurement. For definitions, reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release.Development Highlights
Three months ended December 31
Years ended December 31
(in millions except square feet)
2023
2022
2023
2022
Development Completions - sq. ft. in thousands (i)
272.0
258.0
599.0
651.0
Development Spending
$
94.4
$
114.6
$
399.9
$
427.1
Development Projects Under Construction - sq. ft. in thousands (ii)
1,235.0
1,945.0
1,235.0
1,945.0
(i) At RioCan's ownership. Represents net leasable area (NLA) of property under development completions. Excludes NLA of residential inventory completions.
(ii) Information presented as at the respective periods then ended, includes properties under development and residential inventory, equity-accounted joint ventures and represents gross floor area of the respective projects.
Investing and Capital Recycling
1. A non-GAAP measurement. For definitions, reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release.
2. Focus Five projects are large scale, transit-oriented, mixed-use developments in the Greater Toronto Area that the Trust is currently advancing through zoning and the site plan approval process.
Capital Management Update
Balance Sheet Strength
(in millions except percentages)
As at
December 31, 2023
December 31, 2022
Liquidity (i) 1
$
1,964
$
1,548
Adjusted Debt to Adjusted EBITDA (i) 1
9.28x
9.51x
Unencumbered Assets (i) 1
$
8,090
$
8,257
(i) At RioCan's proportionate share.
1. A non-GAAP measurement. For definitions, reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release.
Conference Call and Webcast
Interested parties are invited to participate in a conference call with management on Wednesday, February 14, 2024 at 10:00 a.m. (ET). Participants will be required to identify themselves and the organization on whose behalf they are participating.
To access the conference call, click on the following link to register at least 10 minutes prior to the scheduled start of the call: Pre-registration link. Participants who pre-register at any time prior to the call will receive an email with dial-in credentials including a login passcode and PIN to gain immediate access to the live call. Those that are unable to pre-register may dial-in for operator assistance by calling 1-833-950-0062 and entering the access code: 218112.
For those unable to participate in the live mode, a replay will be available at 1-866-813-9403 with access code: 539726.
To access the simultaneous webcast, visit RioCan’s website at Events and Presentations and click on the link for the webcast.
About RioCan
RioCan is one of Canada’s largest real estate investment trusts. RioCan owns, manages and develops retail-focused, increasingly mixed-use properties located in prime, high-density transit-oriented areas where Canadians want to shop, live and work. As at December 31, 2023, our portfolio is comprised of 188 properties with an aggregate net leasable area of approximately 32.6 million square feet (at RioCan's interest) including office, residential rental and 9 development properties. To learn more about us, please visit www.riocan.com.
Basis of Presentation and Non-GAAP Measures
All figures included in this News Release are expressed in Canadian dollars unless otherwise noted. RioCan’s annual audited consolidated financial statements ("2023 Annual Consolidated Financial Statements") are prepared in accordance with International Financial Reporting Standards (IFRS). Financial information included within this News Release does not contain all disclosures required by IFRS, and accordingly should be read in conjunction with the Trust's 2023 Annual Consolidated Financial Statements and MD&A for the three months and year ended December 31, 2023, which are available on RioCan's website at www.riocan.com and on SEDAR+ at www.sedarplus.com.
Consistent with RioCan’s management framework, management uses certain financial measures to assess RioCan’s financial performance, which are not in accordance with generally accepted accounting principles (GAAP) under IFRS. Funds From Operations (“FFO”), FFO per unit, Net Operating Income ("NOI"), Same Property NOI, Commercial Same Property NOI, Residential Same Property NOI, Development Spending, Total Acquisitions to February 13, 2024, Ratio of floating rate debt to total debt, Liquidity, Adjusted Debt to Adjusted EBITDA, RioCan's Proportionate Share, Unencumbered Assets and Percentage of Normalized NOI Generated from Unencumbered Assets, as well as other measures that may be discussed elsewhere in this News Release, do not have a standardized definition prescribed by IFRS and are, therefore, unlikely to be comparable to similar measures presented by other reporting issuers. RioCan supplements its IFRS measures with these Non-GAAP measures to aid in assessing the Trust’s underlying performance and reports these additional measures so that investors may do the same. Non-GAAP measures should not be considered as alternatives to net income or comparable metrics determined in accordance with IFRS as indicators of RioCan’s performance, liquidity, cash flow, and profitability. For full definitions of these measures, please refer to the "Non-GAAP Measures” section in RioCan’s MD&A for the three months and year ended December 31, 2023.
The reconciliations for non-GAAP measures included in this News Release are outlined as follows:
RioCan's Proportionate Share
The following table reconciles the consolidated balance sheets from IFRS to RioCan's proportionate share basis as at December 31, 2023 and December 31, 2022:
As at
December 31, 2023
December 31, 2022
(in thousands of dollars)
IFRS basis
Equity-accounted investments
RioCan's proportionate share
IFRS basis
Equity-accounted investments
RioCan's proportionate share
Assets
Investment properties
$
13,561,718
$
411,811
$
13,973,529
$
13,807,740
$
398,701
$
14,206,441
Equity-accounted investments
383,883
(383,883)
—
364,892
(364,892)
—
Mortgages and loans receivable
289,533
(6,707)
282,826
269,339
—
269,339
Residential inventory
217,186
407,946
625,132
272,005
214,536
486,541
Assets held for sale
19,075
—
19,075
42,140
—
42,140
Receivables and other assets
246,652
50,681
297,333
259,514
37,779
297,293
Cash and cash equivalents
124,234
14,506
138,740
86,229
8,001
94,230
Total assets
$
14,842,281
$
494,354
$
15,336,635
$
15,101,859
$
294,125
$
15,395,984
Liabilities
Debentures payable
$
3,240,943
$
—
$
3,240,943
$
2,942,051
$
—
$
2,942,051
Mortgages payable
2,740,924
158,292
2,899,216
2,659,180
172,100
2,831,280
Lines of credit and other bank loans
879,246
231,963
1,111,209
1,141,112
89,187
1,230,299
Accounts payable and other liabilities
543,398
104,099
647,497
630,624
32,838
663,462
Total liabilities
$
7,404,511
$
494,354
$
7,898,865
$
7,372,967
$
294,125
$
7,667,092
Equity
Unitholders’ equity
7,437,770
—
7,437,770
7,728,892
—
7,728,892
Total liabilities and equity
$
14,842,281
$
494,354
$
15,336,635
$
15,101,859
$
294,125
$
15,395,984
The following tables reconcile the consolidated statements of income (loss) from IFRS to RioCan's proportionate share basis for the three months and years ended December 31, 2023 and 2022:
Three months ended December 31, 2023
Three months ended December 31, 2022
(in thousands of dollars)
IFRS basis
Equity-accounted investments
RioCan's proportionate share
IFRS basis
Equity-accounted investments
RioCan's proportionate share
Revenue
Rental revenue
$
276,510
$
8,124
$
284,634
$
268,864
$
7,516
$
276,380
Residential inventory sales
13,789
11,365
25,154
33,873
—
33,873
Property management and other service fees
6,611
—
6,611
3,450
—
3,450
296,910
19,489
316,399
306,187
7,516
313,703
Operating costs
Rental operating costs
Recoverable under tenant leases
94,445
881
95,326
95,258
836
96,094
Non-recoverable costs
7,397
605
8,002
9,060
606
9,666
Residential inventory cost of sales
8,994
9,117
18,111
26,448
—
26,448
110,836
10,603
121,439
130,766
1,442
132,208
Operating income
186,074
8,886
194,960
175,421
6,074
181,495
Other income (loss)
Interest income
6,401
618
7,019
6,272
599
6,871
Income (loss) from equity-accounted investments
(7,190)
7,190
—
(3,864)
3,864
—
Fair value loss on investment properties, net
(222,921)
(13,506)
(236,427)
(115,507)
(8,404)
(123,911)
Investment and other income (loss)
4,459
(25)
4,434
240
324
564
(219,251)
(5,723)
(224,974)
(112,859)
(3,617)
(116,476)
Other expenses
Interest costs, net
58,940
3,108
62,048
48,320
2,394
50,714
General and administrative
15,459
23
15,482
12,845
23
12,868
Internal leasing costs
3,156
—
3,156
3,306
—
3,306
Transaction and other costs
6,945
32
6,977
3,236
40
3,276
84,500
3,163
87,663
67,707
2,457
70,164
Loss before income taxes
$
(117,677)
$
—
$
(117,677)
$
(5,145)
$
—
$
(5,145)
Current income tax recovery
(18)
—
(18)
(184)
—
(184)
Net loss
$
(117,659)
$
—
$
(117,659)
$
(4,961)
$
—
$
(4,961)
Year ended December 31, 2023
Year ended December 31, 2022
(in thousands)
IFRS basis
Equity-accounted investments
RioCan's proportionate share
IFRS basis
Equity-accounted investments
RioCan's proportionate share
Revenue
Rental revenue
$
1,091,105
$
33,609
$
1,124,714
$
1,074,192
$
29,221
$
1,103,413
Residential inventory sales
13,789
63,222
77,011
118,659
936
119,595
Property management and other service fees
18,977
—
18,977
20,996
—
20,996
1,123,871
96,831
1,220,702
1,213,847
30,157
1,244,004
Operating costs
Rental operating costs
Recoverable under tenant leases
374,149
3,549
377,698
376,914
2,889
379,803
Non-recoverable costs
26,320
2,338
28,658
27,955
2,394
30,349
Residential inventory cost of sales
8,994
49,476
58,470
96,286
422
96,708
409,463
55,363
464,826
501,155
5,705
506,860
Operating income
714,408
41,468
755,876
712,692
24,452
737,144
Other income (loss)
Interest income
25,131
2,559
27,690
20,902
2,326
23,228
Income from equity-accounted investments
18,383
(18,383)
—
2,349
(2,349)
—
Fair value loss on investment properties, net
(450,408)
(14,123)
(464,531)
(241,128)
(16,208)
(257,336)
Investment and other income (loss)
8,501
(339)
8,162
(1,842)
277
(1,565)
(398,393)
(30,286)
(428,679)
(219,719)
(15,954)
(235,673)
Other expenses
Interest costs, net
208,948
11,339
220,287
180,365
8,242
188,607
General and administrative
60,367
56
60,423
54,437
74
54,511
Internal leasing costs
11,919
—
11,919
12,204
—
12,204
Transaction and other costs
9,344
(213)
9,131
8,274
182
8,456
290,578
11,182
301,760
255,280
8,498
263,778
Income before income taxes
$
25,437
$
—
$
25,437
$
237,693
$
—
$
237,693
Current income tax (recovery) expense
(13,365)
—
(13,365)
921
—
921
Net income
$
38,802
$
—
$
38,802
$
236,772
$
—
$
236,772
NOI and Same Property NOI
The following table reconciles operating income to NOI and Same Property NOI to NOI for the three months and years ended December 31, 2023 and 2022:
Three months ended December 31
Years ended December 31
(thousands of dollars)
2023
2022
2023
2022
Operating Income
$
186,074
$
175,421
$
714,408
$
712,692
Adjusted for the following:
Property management and other service fees
(6,611)
(3,450)
(18,977)
(20,996)
Residential inventory gains
(4,795)
(7,425)
(4,795)
(22,373)
Operational lease revenue from ROU assets
1,638
1,516
6,717
5,666
NOI
$
176,306
$
166,062
$
697,353
$
674,989
Three months ended December 31
Years ended December 31
(thousands of dollars)
2023
2022
2023
2022
Commercial:
Commercial Same Property NOI
$
150,698
$
142,019
$
596,558
$
569,416
NOI from income producing properties:
Acquired (i)
566
8
2,010
462
Disposed (i)
2,494
8,830
15,351
46,709
3,060
8,838
17,361
47,171
NOI from completed commercial developments
9,181
4,878
31,964
16,948
NOI from properties under de-leasing (ii)
4,213
5,111
18,842
20,829
Lease cancellation fees
70
391
5,253
5,119
Straight-line rent adjustment
2,638
806
5,898
1,884
NOI from commercial properties
169,860
162,043
675,876
661,367
Residential:
Residential Same Property NOI
4,088
3,507
7,123
6,260
NOI from income producing properties:
Acquired (i)
401
—
2,975
1,667
Disposed (i)
—
—
48
(7)
401
—
3,023
1,660
NOI from completed residential developments
1,957
512
11,331
5,702
NOI from residential rental
6,446
4,019
21,477
13,622
NOI
$
176,306
$
166,062
$
697,353
$
674,989
(i) Includes properties acquired or disposed of during the periods being compared.
(ii) NOI from limited number of properties undergoing significant de-leasing in preparation for redevelopment or intensification
Three months ended December 31
Years ended December 31
(thousands of dollars)
2023
2022
2023
2022
Commercial Same Property NOI
$
150,698
$
142,019
$
596,558
$
569,416
Residential Same Property NOI
4,088
3,507
7,123
6,260
Same Property NOI
$
154,786
$
145,526
$
603,681
$
575,676
FFO
The following table reconciles net income (loss) attributable to Unitholders to FFO for the three months and years ended December 31, 2023 and 2022:
Three months ended December 31
Years ended December 31
(thousands of dollars, except where otherwise noted)
2023
2022
2023
2022
Net income (loss) attributable to Unitholders
$
(117,659)
$
(4,961)
$
38,802
$
236,772
Add back/(Deduct):
Fair value losses, net
222,921
115,507
450,408
241,128
Fair value losses included in equity-accounted investments
13,506
8,404
14,124
16,207
Internal leasing costs
3,156
3,306
11,919
12,204
Transaction losses on investment properties, net (i)
1,147
560
1,182
1,027
Transaction gains on equity-accounted investments
(14)
—
(83)
—
Transaction costs on sale of investment properties
5,094
2,652
5,601
5,734
ERP implementation costs
3,503
—
12,032
—
Change in unrealized fair value on marketable securities
(1,846)
382
865
3,782
Current income tax (recovery) expense
(18)
(184)
(13,365)
921
Operational lease revenue from ROU assets
1,283
1,120
5,116
4,086
Operational lease expenses from ROU assets in equity-accounted investments
(16)
(12)
(55)
(46)
Capitalized interest on equity-accounted investments (ii)
1,833
869
4,735
2,863
FFO
$
132,890
$
127,643
$
531,281
$
524,678
Add back:
Restructuring costs
24
510
1,368
4,289
FFO Adjusted
$
132,914
$
128,153
$
532,649
$
528,967
FFO per unit - basic
$
0.44
$
0.42
$
1.77
$
1.71
FFO per unit - diluted
$
0.44
$
0.42
$
1.77
$
1.71
FFO Adjusted per unit - diluted
$
0.44
$
0.42
$
1.77
$
1.73
Weighted average number of Units - basic (in thousands)
300,417
302,321
300,392
306,069
Weighted average number of Units - diluted (in thousands)
300,417
302,423
300,479
306,247
FFO for last 4 quarters
$
531,281
$
524,678
Distributions paid for last 4 quarters
$
321,414
$
309,416
FFO Payout Ratio
60.5%
59.0%
(i) Represents net transaction gains or losses connected to certain investment properties during the period.
(ii) This amount represents the interest capitalized to RioCan's equity-accounted investment in WhiteCastle New Urban Fund 2, LP, WhiteCastle New Urban Fund 3, LP, WhiteCastle New Urban Fund 4, LP, WhiteCastle New Urban Fund 5, LP, RioCan-Fieldgate JV, RC (Queensway) LP, RC (Leaside) LP - Class B, PR Bloor Street LP and RC Yorkville LP. This amount is not capitalized to properties under development under IFRS but is allowed as an adjustment under REALPAC’s definition of FFO.
Development Spending
Total Development Spending for the three months and years ended December 31, 2023 and 2022 is as follows:
Three months ended December 31
Years ended December 31
(thousands of dollars)
2023
2022
2023
2022
Development expenditures on balance sheet:
Properties under development
$
52,267
$
78,282
$
244,260
$
298,409
Residential inventory
26,875
33,631
127,118
112,597
RioCan's share of Development Spending from equity-accounted joint ventures
15,223
2,639
28,568
16,062
Total Development Spending
$
94,365
$
114,552
$
399,946
$
427,068
Three months ended December 31
Years ended December 31
(thousands of dollars)
2023
2022
2023
2022
Mixed-use projects
$
83,271
$
88,642
$
346,956
$
394,926
Retail projects
11,094
25,910
52,990
32,142
Total Development Spending
$
94,365
$
114,552
$
399,946
$
427,068
Total Acquisitions
Total Acquisitions for the three months and years ended December 31, 2023 and 2022 are as follows:
Three months ended December 31
Years ended December 31
(thousands of dollars)
2023
2022
2023
2022
Income producing properties
$
—
$
5,011
$
75,473
$
96,031
Properties under development
—
—
34,583
11,946
Residential inventory
—
—
—
19,440
RioCan's share of acquisitions from equity-accounted joint ventures
—
—
—
66,497
Total Acquisitions
$
—
$
5,011
$
110,056
$
193,914
Subsequent event acquisitions to February 13, 2024
153,089
n.a
153,089
n.a
Total Acquisitions to February 13, 2024
$
153,089
n.a
$
263,145
n.a
Total Contractual Debt
The following table reconciles total debt to Total Contractual Debt as at December 31, 2023 and December 31, 2022:
As at
December 31, 2023
December 31, 2022
(thousands of dollars, except where otherwise noted)
IFRS basis
Equity- accounted investments
RioCan's proportionate share
IFRS basis
Equity- accounted investments
RioCan's proportionate share
Debentures payable
$
3,240,943
$
—
$
3,240,943
$
2,942,051
$
—
$
2,942,051
Mortgages payable
2,740,924
158,292
2,899,216
2,659,180
172,100
2,831,280
Lines of credit and other bank loans
879,246
231,963
1,111,209
1,141,112
89,187
1,230,299
Total debt
$
6,861,113
$
390,255
$
7,251,368
$
6,742,343
$
261,287
$
7,003,630
Less:
Unamortized debt financing costs, premiums and discounts on origination and debt assumed, and modifications
(24,019)
(484)
(24,503)
(15,634)
(690)
(16,324)
Total Contractual Debt
$
6,885,132
$
390,739
$
7,275,871
$
6,757,977
$
261,977
$
7,019,954
Floating Rate Debt and Fixed Rate Debt
The following table summarizes RioCan's Ratio of floating rate debt to total debt as at December 31, 2023 and December 31, 2022:
As at
December 31, 2023
December 31, 2022
(thousands of dollars, except where otherwise noted)
IFRS basis
Equity- accounted investments
RioCan's proportionate share
IFRS basis
Equity- accounted investments
RioCan's proportionate share
Total fixed rate debt
$
6,543,106
$
212,554
$
6,755,660
$
6,301,054
$
141,720
$
6,442,774
Total floating rate debt
318,007
177,701
495,708
441,289
119,567
560,856
Total debt
$
6,861,113
$
390,255
$
7,251,368
$
6,742,343
$
261,287
$
7,003,630
Ratio of floating rate debt to total debt
4.6%
6.8%
6.5%
8.0%
Liquidity
As at December 31, 2023, RioCan had approximately $2.0 billion of Liquidity as summarized in the following table:
As at
December 31, 2023
December 31, 2022
(thousands of dollars)
IFRS basis
Equity- accounted investments
RioCan's proportionate share
IFRS basis
Equity- accounted investments
RioCan's proportionate share
Undrawn revolving unsecured operating line of credit
$
1,250,000
$
—
$
1,250,000
$
1,116,351
$
—
$
1,116,351
Undrawn construction lines and other bank loans
385,715
189,563
575,278
267,562
70,094
337,656
Cash and cash equivalents
124,234
14,506
138,740
86,229
8,001
94,230
Liquidity
$
1,759,949
$
204,069
$
1,964,018
$
1,470,142
$
78,095
$
1,548,237
Adjusted EBITDA
The following table reconciles consolidated net income attributable to Unitholders to Adjusted EBITDA:
Year endedDecember 31, 2023
December 31, 2022
(thousands of dollars)
IFRS basis
Equity-accounted investments
RioCan's proportionate share
IFRS basis
Equity-accounted investments
RioCan's proportionate share
Net income attributable to Unitholders
$
38,802
$
—
$
38,802
$
236,772
$
—
$
236,772
Add (deduct) the following items:
Income tax (recovery) expense:
Current
(13,365)
—
(13,365)
921
—
921
Fair value losses on investment properties, net
450,408
14,123
464,531
241,128
16,208
257,336
Change in unrealized fair value on marketable securities (i)
865
—
865
3,783
—
3,783
Internal leasing costs
11,919
—
11,919
12,204
—
12,204
Non-cash unit-based compensation expense
10,154
—
10,154
9,056
—
9,056
Interest costs, net
208,948
11,339
220,287
180,365
8,242
188,607
Restructuring costs
1,368
—
1,368
4,289
—
4,289
ERP implementation costs
12,032
—
12,032
—
—
—
Depreciation and amortization
2,632
—
2,632
4,774
—
4,774
Transaction losses (gains) on the sale of investment properties, net (ii)
1,180
(83)
1,097
1,024
—
1,024
Transaction costs on investment properties
5,606
1
5,607
5,734
3
5,737
Operational lease revenue (expenses) from ROU assets
5,116
(55)
5,061
4,086
(46)
4,040
Adjusted EBITDA
$
735,665
$
25,325
$
760,990
$
704,136
$
24,407
$
728,543
(i) The fair value gains and losses on marketable securities may include both the change in unrealized fair value and realized gains and losses on the sale of marketable securities. By adding back the change in unrealized fair value on marketable securities, RioCan effectively continues to include realized gains and losses on the sale of marketable securities in Adjusted EBITDA and excludes unrealized fair value gains and losses on marketable securities in Adjusted EBITDA.
(ii) Includes transaction gains and losses realized on the disposition of investment properties.
Adjusted Debt to Adjusted EBITDA Ratio
Adjusted Debt to Adjusted EBITDA is calculated as follows:
Year ended
December 31, 2023
December 31, 2022
(thousands of dollars, except where otherwise noted)
IFRS basis
Equity- accounted investments
RioCan's proportionate share
IFRS basis
Equity- accounted investments
RioCan's proportionate share
Adjusted Debt to Adjusted EBITDA
Average total debt outstanding
$
6,879,087
$
317,231
$
7,196,318
$
6,756,628
$
251,888
$
7,008,516
Less: average cash and cash equivalents
(120,952)
(11,408)
(132,360)
(74,871)
(8,791)
(83,662)
Average Total Adjusted Debt
$
6,758,135
$
305,823
$
7,063,958
$
6,681,757
$
243,097
$
6,924,854
Adjusted EBITDA (i)
$
735,665
$
25,325
$
760,990
$
704,136
$
24,407
$
728,543
Adjusted Debt to Adjusted EBITDA
9.19
9.28
9.49
9.51
(i) Adjusted EBITDA is reconciled in the immediately preceding table above.
Unencumbered Assets
The tables below summarize RioCan's Unencumbered Assets and Percentage of Normalized NOI Generated from Unencumbered Assets as at December 31, 2023 and December 31, 2022:
As at
December 31, 2023
December 31, 2022
(thousands of dollars, except where otherwise noted)
Targeted
Ratios
IFRS basis
Equity-accounted investments
RioCan's proportionate share
IFRS basis
Equity-accounted investments
RioCan's proportionate share
Investment Properties$
13,561,718
$
411,811
$
13,973,529
$
13,807,740
$
398,701
$
14,206,441
Less: Encumbered Investment Properties
5,531,177
352,425
5,883,602
5,607,460
342,473
5,949,933
Unencumbered Assets$
8,030,541
$
59,386
$
8,089,927
$
8,200,280
$
56,228
$
8,256,508
Annual Normalized NOI - total portfolio (i)
$
692,092
$
25,664
$
717,756
$
646,540
$
23,488
$
670,028
Annual Normalized NOI - Unencumbered Assets (i)
$
396,888
$
3,736
$
400,624
$
370,804
$
3,440
$
374,244
Percentage of Normalized NOI Generated from Unencumbered Assets
> 50.0%
57.3 %
55.8 %
57.4 %
55.9 %
(i) Annual Normalized NOI is reconciled in the table below.
Three months ended December 31, 2023
Three months ended December 31, 2022
(thousands of dollars)
IFRS basis
Equity- accounted investments
RioCan's proportionate share
IFRS basis
Equity- accounted investments
RioCan's proportionate share
NOI (i)
$
176,306
$
6,416
$
182,722
$
166,062
$
5,872
$
171,934
Adjust the following:
Miscellaneous revenue
(874)
—
(874)
(802)
—
(802)
Percentage rent
(2,339)
—
(2,339)
(3,234)
—
(3,234)
Lease cancellation fees
(70)
—
(70)
(391)
—
(391)
Normalized NOI - total portfolio
$
173,023
$
6,416
$
179,439
$
161,635
$
5,872
$
167,507
Annual Normalized NOI - total portfolio(ii)
$
692,092
$
25,664
$
717,756
$
646,540
$
23,488
$
670,028
NOI from Unencumbered Assets
$
101,349
$
934
$
102,283
$
94,957
$
860
$
95,817
Adjust the following for Unencumbered Assets:
Miscellaneous revenue
(796)
—
(796)
(518)
—
(518)
Percentage rent
(1,331)
—
(1,331)
(1,430)
—
(1,430)
Lease cancellation fees
—
—
—
(308)
—
(308)
Normalized NOI - Unencumbered Assets
$
99,222
$
934
$
100,156
$
92,701
$
860
$
93,561
Annual Normalized NOI - Unencumbered Assets (ii)
$
396,888
$
3,736
$
400,624
$
370,804
$
3,440
$
374,244
(i) Refer to the NOI and Same Property NOI table of this section for reconciliation from NOI to operating income.
(ii) Calculated by multiplying Normalized NOI by a factor of 4.Forward-Looking Information
This News Release contains forward-looking information within the meaning of applicable Canadian securities laws. This information reflects RioCan’s objectives, our strategies to achieve those objectives, as well as statements with respect to management’s beliefs, estimates and intentions concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking information can generally be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, “would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plan”, “continue”, or similar expressions suggesting future outcomes or events. Such forward-looking information reflects management’s current beliefs and is based on information currently available to management. All forward-looking information in this News Release is qualified by these cautionary statements. Forward-looking information is not a guarantee of future events or performance and, by its nature, is based on RioCan’s current estimates and assumptions, which are subject to numerous risks and uncertainties, including those described in the “Risks and Uncertainties” section in RioCan's MD&A for the three months and year ended December 31, 2023 and in our most recent Annual Information Form, which could cause actual events or results to differ materially from the forward-looking information contained in this News Release. Although the forward-looking information contained in this News Release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with this forward-looking information.
The forward-looking statements contained in this News Release are made as of the date hereof, and should not be relied upon as representing RioCan’s views as of any date subsequent to the date of this News Release. Management undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240213409741/en/
RioCan Real Estate Investment Trust Dennis Blasutti Chief Financial Officer 416-866-3033 | www.riocan.com
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