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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 | |
---|---|---|---|---|---|---|---|---|---|---|
-0.11 | -0.62% | 17.56 | 17.52 | 17.60 | 17.72 | 17.46 | 17.72 | 822,843 | 21:12:41 |
RioCan Real Estate Investment Trust (“RioCan" or the "Trust”) (TSX: REI.UN) announced today its financial results for the three and nine months ended September 30, 2023 (the "Third Quarter").
“RioCan had a strong quarter as extensive demand for our space drove leasing velocity, standout leasing spreads and record occupancy. Our performance reflects the quality of our locations as well as the track-record and cycle-tested experience of RioCan's team,” said Jonathan Gitlin, President and CEO of RioCan. “We are perfectly positioned to benefit from Canada's favourable retail real estate landscape that will continue to be strong due to the limited supply of quality space. RioCan continues to actively manage risk, improve our balance sheet and further strengthen our foundation to drive future growth and value creation."
Financial Highlights
Three months ended September 30
Nine months ended September 30
(in millions, except where otherwise noted, and per unit values)
2023
2022
2023
2022
FFO 1
$
135.4
$
134.8
$
398.4
$
397.0
FFO per unit - diluted 1
$
0.45
$
0.44
$
1.33
$
1.29
Net income (loss)
$
(73.5)
$
3.2
$
156.5
$
241.7
Weighted average Units outstanding - diluted (in thousands)
300,471
304,005
300,508
307,534
September 30,
December 31,
As at
2023
2022
Net book value per unit
$
25.49
$
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.
FFO per Unit and Net Income
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
Three months ended September 30
Nine months ended September 30
2023
2022
2023
2022
Operation Highlights (i)
Occupancy - committed (ii)
97.5 %
97.3 %
97.5 %
97.3 %
Retail occupancy - committed (ii)
98.3 %
97.8 %
98.3 %
97.8 %
Blended leasing spread
12.9 %
7.9 %
11.2 %
9.0 %
New leasing spread
21.0 %
15.9 %
14.9 %
12.4 %
Renewal leasing spread
11.2 %
6.6 %
10.2 %
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.
Development Highlights
Three months ended September 30
Nine months ended September 30
(in millions except square feet)
2023
2022
2023
2022
Development Highlights
Development Completions - sq. ft. in thousands (i)
151.0
179.0
327.0
393.0
Development Spending
$
114.2
$
81.0
$
305.6
$
312.5
Development Projects Under Construction - sq. ft. in thousands (ii)
1,685.0
2,152.0
1,685.0
2,152.0
(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
September 30, 2023
December 31, 2022
Balance Sheet Strength Highlights
Liquidity (i) 1
$
1,634
$
1,548
Adjusted Debt to Adjusted EBITDA (i) 1
9.45x
9.51x
Total Adjusted Debt to Total Adjusted Assets (i) 1
46.5 %
45.2 %
Unencumbered Assets (i) 1
$
8,549
$
8,257
Unencumbered Assets to Unsecured Debt (i) 1
211 %
218 %
(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 Friday, November 3, 2023 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: 176245.
For those unable to participate in the live mode, a replay will be available at 1-866-813-9403 with access code: 613637.
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 September 30, 2023, our portfolio is comprised of 192 properties with an aggregate net leasable area of approximately 33.6 million square feet (at RioCan's interest) including office, residential rental and 10 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 unaudited interim condensed consolidated financial statements ("Condensed 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 Condensed Consolidated Financial Statements and MD&A for the three and nine months ended September 30, 2023, which are available on RioCan's website at www.riocan.com and on SEDAR at www.sedar.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, Development Spending, Total Acquisitions, Ratio of floating rate debt to total debt, Liquidity, Adjusted Debt to Adjusted EBITDA, Total Adjusted Debt to Total Adjusted Assets, RioCan's Proportionate Share, Unencumbered Assets to Unsecured Debt 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 and nine months ended September 30, 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 September 30, 2023 and December 31, 2022:
As at
September 30, 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
$
13,696,048
$
422,424
$
14,118,472
$
13,807,740
$
398,701
$
14,206,441
Equity-accounted investments
395,924
(395,924)
—
364,892
(364,892)
—
Mortgages and loans receivable
229,877
—
229,877
269,339
—
269,339
Residential inventory
198,913
397,063
595,976
272,005
214,536
486,541
Assets held for sale
230,000
—
230,000
42,140
—
42,140
Receivables and other assets
292,421
51,258
343,679
259,514
37,779
297,293
Cash and cash equivalents
43,220
9,355
52,575
86,229
8,001
94,230
Total assets
$
15,086,403
$
484,176
$
15,570,579
$
15,101,859
$
294,125
$
15,395,984
Liabilities
Debentures payable
$
3,240,680
$
—
$
3,240,680
$
2,942,051
$
—
$
2,942,051
Mortgages payable
2,641,601
171,182
2,812,783
2,659,180
172,100
2,831,280
Lines of credit and other bank loans
1,007,059
207,680
1,214,739
1,141,112
89,187
1,230,299
Accounts payable and other liabilities
540,135
105,314
645,449
630,624
32,838
663,462
Total liabilities
$
7,429,475
$
484,176
$
7,913,651
$
7,372,967
$
294,125
$
7,667,092
Equity
Unitholders’ equity
7,656,928
—
7,656,928
7,728,892
—
7,728,892
Total liabilities and equity
$
15,086,403
$
484,176
$
15,570,579
$
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 and nine months ended September 30, 2023 and 2022:
Three months ended September 30, 2023
Three months ended September 30, 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
$
269,001
$
8,052
$
277,053
$
265,895
$
7,405
$
273,300
Residential inventory sales
—
48,977
48,977
33,812
—
33,812
Property management and other service fees
2,408
—
2,408
5,553
—
5,553
271,409
57,029
328,438
305,260
7,405
312,665
Operating costs
Rental operating costs
Recoverable under tenant leases
87,274
884
88,158
89,405
769
90,174
Non-recoverable costs
7,880
588
8,468
7,318
627
7,945
Residential inventory cost of sales
—
38,972
38,972
26,045
—
26,045
95,154
40,444
135,598
122,768
1,396
124,164
Operating income
176,255
16,585
192,840
182,492
6,009
188,501
Other income (loss)
Interest income
5,988
672
6,660
5,684
581
6,265
Income from equity-accounted investments
14,229
(14,229)
—
958
(958)
—
Fair value loss on investment properties, net
(199,528)
(167)
(199,695)
(118,783)
(3,537)
(122,320)
Investment and other income (loss)
(502)
(99)
(601)
(519)
162
(357)
(179,813)
(13,823)
(193,636)
(112,660)
(3,752)
(116,412)
Other expenses
Interest costs, net
52,051
3,012
55,063
46,620
2,201
48,821
General and administrative
14,444
—
14,444
13,729
19
13,748
Internal leasing costs
3,020
—
3,020
3,088
—
3,088
Transaction and other costs
417
(250)
167
2,346
37
2,383
69,932
2,762
72,694
65,783
2,257
68,040
Income (loss) before income taxes
$
(73,490)
$
—
$
(73,490)
$
4,049
$
—
$
4,049
Current income tax expense
20
—
20
834
—
834
Net income (loss)
$
(73,510)
$
—
$
(73,510)
$
3,215
$
—
$
3,215
Nine months ended September 30, 2023
Nine months ended September 30, 2022
(in thousands)
IFRS basis
Equity-accounted investments
RioCan's proportionate share
IFRS basis
Equity-accounted investments
RioCan's proportionate share
Revenue
Rental revenue
$
814,595
$
25,485
$
840,080
$
805,328
$
21,703
$
827,031
Residential inventory sales
—
51,857
51,857
84,786
936
85,722
Property management and other service fees
12,366
—
12,366
17,546
—
17,546
826,961
77,342
904,303
907,660
22,639
930,299
Operating costs
Rental operating costs
Recoverable under tenant leases
279,704
2,668
282,372
281,656
2,053
283,709
Non-recoverable costs
18,923
1,733
20,656
18,895
1,789
20,684
Residential inventory cost of sales
—
40,359
40,359
69,838
422
70,260
298,627
44,760
343,387
370,389
4,264
374,653
Operating income
528,334
32,582
560,916
537,271
18,375
555,646
Other income (loss)
Interest income
18,730
1,940
20,670
14,630
1,726
16,356
Income from equity-accounted investments
25,573
(25,573)
—
6,213
(6,213)
—
Fair value loss on investment properties, net
(227,487)
(618)
(228,105)
(125,621)
(7,803)
(133,424)
Investment and other income (loss)
4,042
(313)
3,729
(2,082)
(44)
(2,126)
(179,142)
(24,564)
(203,706)
(106,860)
(12,334)
(119,194)
Other expenses
Interest costs, net
150,008
8,231
158,239
132,045
5,849
137,894
General and administrative
44,908
32
44,940
41,592
50
41,642
Internal leasing costs
8,763
—
8,763
8,898
—
8,898
Transaction and other costs
2,399
(245)
2,154
5,038
142
5,180
206,078
8,018
214,096
187,573
6,041
193,614
Income before income taxes
$
143,114
$
—
$
143,114
$
242,838
$
—
$
242,838
Current income tax (recovery) expense
(13,347)
—
(13,347)
1,105
—
1,105
Net income
$
156,461
$
—
$
156,461
$
241,733
$
—
$
241,733
NOI and Same Property NOI
The following table reconciles operating income to NOI and Same Property NOI to NOI for the three and nine months ended September 30, 2023 and 2022:
Three months ended September 30
Nine months ended September 30
(thousands of dollars)
2023
2022
2023
2022
Operating Income
$
176,255
$
182,492
$
528,334
$
537,271
Adjusted for the following:
Property management and other service fees
(2,408)
(5,553)
(12,366)
(17,546)
Residential inventory gains
—
(7,767)
—
(14,948)
Operational lease revenue from ROU assets
1,650
1,419
5,079
4,149
NOI
$
175,497
$
170,591
$
521,047
$
508,926
Three months ended September 30
Nine months ended September 30
(thousands of dollars)
2023
2022
2023
2022
Same Property NOI
$
153,808
$
148,346
$
457,539
$
438,706
NOI from income producing properties:
Acquired (i)
358
7
787
376
Disposed (i)
338
8,111
1,867
26,485
696
8,118
2,654
26,861
NOI from completed properties under development
8,668
3,813
22,698
12,060
NOI from properties under de-leasing (ii)
4,586
5,481
14,683
15,889
Lease cancellation fees
442
1,175
5,183
4,729
Straight-line rent adjustment
1,660
(196)
3,260
1,078
NOI from commercial properties
15,356
10,273
45,824
33,756
NOI from residential rental
5,637
3,854
15,030
9,603
NOI
$
175,497
$
170,591
$
521,047
$
508,926
(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.
FFO
The following table reconciles net income (loss) attributable to Unitholders to FFO for the three and nine months ended September 30, 2023 and 2022:
Three months ended September 30
Nine months ended September 30
(thousands of dollars, except where otherwise noted)
2023
2022
2023
2022
Net income attributable to Unitholders
$
(73,510)
$
3,215
$
156,461
$
241,733
Add back/(Deduct):
Fair value losses, net
199,528
118,783
227,487
125,621
Fair value losses included in equity-accounted investments
167
3,537
618
7,803
Internal leasing costs
3,020
3,088
8,763
8,898
Transaction (gains) losses on investment properties, net (i)
(77)
(270)
35
465
Transaction gains on equity-accounted investments
(69)
—
(69)
—
Transaction (recoveries) costs on sale of investment properties
(4)
1,769
507
3,084
ERP implementation costs
2,121
—
8,530
—
Change in unrealized fair value on marketable securities
1,898
1,999
2,711
3,400
Current income tax expense (recovery)
20
834
(13,347)
1,105
Operational lease revenue from ROU assets
1,283
1,035
3,833
2,964
Operational lease expenses from ROU assets in equity-accounted investments
(14)
(12)
(39)
(34)
Capitalized interest on equity-accounted investments (ii)
1,059
825
2,902
1,994
FFO
$
135,422
$
134,803
$
398,392
$
397,033
Add back:
Restructuring costs
720
—
1,344
3,779
FFO Adjusted
$
136,142
$
134,803
$
399,736
$
400,812
FFO per unit - basic
$
0.45
$
0.44
$
1.33
$
1.29
FFO per unit - diluted
$
0.45
$
0.44
$
1.33
$
1.29
FFO Adjusted per unit - diluted
$
0.45
$
0.44
$
1.33
$
1.30
Weighted average number of Units - basic (in thousands)
300,405
303,912
300,384
307,332
Weighted average number of Units - diluted (in thousands)
300,471
304,005
300,508
307,534
FFO for last 4 quarters
$
526,035
$
543,556
Distributions paid for last 4 quarters
$
317,500
$
308,221
FFO Payout Ratio
60.4%
56.7%
(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 and PR Bloor Street 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 and nine months ended September 30, 2023 and 2022 is as follows:
Three months ended September 30
Nine months ended September 30
(thousands of dollars)
2023
2022
2023
2022
Development expenditures on balance sheet:
Properties under development
$
57,470
$
62,856
$
191,992
$
220,127
Residential inventory
51,052
15,258
100,243
78,966
RioCan's share of Development Spending from equity-accounted joint ventures
5,711
2,913
13,345
13,423
Total Development Spending
$
114,233
$
81,027
$
305,580
$
312,516
Total Acquisitions
Total Acquisitions for the three and nine months ended September 30, 2023 and 2022 are as follows:
Three months ended September 30
Nine months ended September 30
(thousands of dollars)
2023
2022
2023
2022
Income producing properties
$
5,202
$
1,072
$
75,473
$
91,020
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
$
5,202
$
1,072
$
110,056
$
188,903
Total Adjusted Debt and Total Contractual Debt
The following tables reconcile total debt to Total Adjusted Debt, total assets to Total Adjusted Assets, and total debt to Total
Contractual Debt as at September 30, 2023 and December 31, 2022:
As at
September 30, 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
$
3,240,680
$
—
$
3,240,680
$
2,942,051
$
—
$
2,942,051
Mortgages payable
2,641,601
171,182
2,812,783
2,659,180
172,100
2,831,280
Lines of credit and other bank loans
1,007,059
207,680
1,214,739
1,141,112
89,187
1,230,299
Total debt
$
6,889,340
$
378,862
$
7,268,202
$
6,742,343
$
261,287
$
7,003,630
Cash and cash equivalents
43,220
9,355
52,575
86,229
8,001
94,230
Total Adjusted Debt
$
6,846,120
$
369,507
$
7,215,627
$
6,656,114
$
253,286
$
6,909,400
Total assets
$
15,086,403
$
484,176
$
15,570,579
$
15,101,859
$
294,125
$
15,395,984
Cash and cash equivalents
43,220
9,355
52,575
86,229
8,001
94,230
Total Adjusted Assets
$
15,043,183
$
474,821
$
15,518,004
$
15,015,630
$
286,124
$
15,301,754
Total Adjusted Debt to Total Adjusted Assets
45.5 %
46.5 %
44.3 %
45.2 %
As at
September 30, 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
Total debt
$
6,889,340
$
378,862
$
7,268,202
$
6,742,343
$
261,287
$
7,003,630
Less:
Unamortized debt financing costs, premiums and discounts on origination and debt assumed, and modifications
(23,797)
(547)
(24,344)
(15,634)
(690)
(16,324)
Total Contractual Debt
$
6,913,137
$
379,409
$
7,292,546
$
6,757,977
$
261,977
$
7,019,954
Floating Rate Debt and Fixed Rate Debt
As at
September 30, 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
$
6,510,510
$
181,982
$
6,692,492
$
6,301,054
$
141,720
$
6,442,774
Total floating rate debt
378,830
196,880
575,710
441,289
119,567
560,856
Total debt
$
6,889,340
$
378,862
$
7,268,202
$
6,742,343
$
261,287
$
7,003,630
Ratio of floating rate debt to total debt
5.5%
7.9%
6.5%
8.0%
Liquidity
As at September 30, 2023, RioCan had approximately $1.6 billion of Liquidity as summarized in the following table:
As at
September 30, 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
$
1,139,000
$
—
$
1,139,000
$
1,116,351
$
—
$
1,116,351
Undrawn construction lines and other bank loans
251,907
190,416
442,323
267,562
70,094
337,656
Cash and cash equivalents
43,220
9,355
52,575
86,229
8,001
94,230
Liquidity
$
1,434,127
$
199,771
$
1,633,898
$
1,470,142
$
78,095
$
1,548,237
Adjusted EBITDA
The following table reconciles consolidated net income attributable to Unitholders to Adjusted EBITDA:
Twelve months ended
September 30, 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
$
151,500
$
—
$
151,500
$
236,772
$
—
$
236,772
Add (deduct) the following items:
Income tax (recovery) expense:
Current
(13,531)
—
(13,531)
921
—
921
Fair value losses on investment properties, net
342,994
9,023
352,017
241,128
16,208
257,336
Change in unrealized fair value on marketable securities (i)
3,094
—
3,094
3,783
—
3,783
Internal leasing costs
12,069
—
12,069
12,204
—
12,204
Non-cash unit-based compensation expense
10,002
—
10,002
9,056
—
9,056
Interest costs, net
198,328
10,624
208,952
180,365
8,242
188,607
Restructuring costs
1,854
—
1,854
4,289
—
4,289
ERP implementation costs
8,530
—
8,530
—
—
—
Depreciation and amortization
2,712
—
2,712
4,774
—
4,774
Transaction losses (gains) on the sale of investment properties, net (ii)
594
(69)
525
1,024
—
1,024
Transaction costs on investment properties
3,162
(1)
3,161
5,734
3
5,737
Operational lease revenue (expenses) from ROU assets
4,955
(51)
4,904
4,086
(46)
4,040
Adjusted EBITDA
$
726,263
$
19,526
$
745,789
$
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:
Twelve months ended
September 30, 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
$
6,875,311
$
292,517
$
7,167,828
$
6,756,628
$
251,888
$
7,008,516
Less: average cash and cash equivalents
(106,768)
(10,343)
(117,111)
(74,871)
(8,791)
(83,662)
Average Total Adjusted Debt
$
6,768,543
$
282,174
$
7,050,717
$
6,681,757
$
243,097
$
6,924,854
Adjusted EBITDA (i)
$
726,263
$
19,526
$
745,789
$
704,136
$
24,407
$
728,543
Adjusted Debt to Adjusted EBITDA
9.32
9.45
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 to Unsecured Debt and Percentage of Normalized NOI Generated from Unencumbered Assets as at September 30, 2023 and December 31, 2022:
As at
September 30, 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
Unencumbered Assets
$
8,488,425
$
60,958
$
8,549,383
$
8,200,280
$
56,228
$
8,256,508
Total Unsecured Debt
$
4,061,000
$
—
$
4,061,000
$
3,783,649
$
—
$
3,783,649
Unencumbered Assets to Unsecured Debt
> 200%
209 %
211 %
217 %
218 %
Annual Normalized NOI - total portfolio (i)
$
683,240
$
25,440
$
708,680
$
646,540
$
23,488
$
670,028
Annual Normalized NOI - Unencumbered Assets (i)
$
421,432
$
3,740
$
425,172
$
370,804
$
3,440
$
374,244
Percentage of Normalized NOI Generated from Unencumbered Assets
> 50.0%
61.7 %
60.0 %
57.4 %
55.9 %
(i)
Annual Normalized NOI are reconciled in the table below.
Three months ended September 30, 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)
$
175,497
$
6,360
$
181,857
$
166,062
$
5,872
$
171,934
Adjust the following:
Miscellaneous revenue
(1,366)
—
(1,366)
(802)
—
(802)
Percentage rent
(2,879)
—
(2,879)
(3,234)
—
(3,234)
Lease cancellation fees
(442)
—
(442)
(391)
—
(391)
Normalized NOI - total portfolio
$
170,810
$
6,360
$
177,170
$
161,635
$
5,872
$
167,507
Annual Normalized NOI - total portfolio(ii)
$
683,240
$
25,440
$
708,680
$
646,540
$
23,488
$
670,028
NOI from Unencumbered Assets
$
108,288
$
935
$
109,223
$
94,957
$
860
$
95,817
Adjust the following for Unencumbered Assets:
Miscellaneous revenue
(795)
—
(795)
(518)
—
(518)
Percentage rent
(1,943)
—
(1,943)
(1,430)
—
(1,430)
Lease cancellation fees
(192)
—
(192)
(308)
—
(308)
Normalized NOI - Unencumbered Assets
$
105,358
$
935
$
106,293
$
92,701
$
860
$
93,561
Annual Normalized NOI - Unencumbered Assets (ii)
$
421,432
$
3,740
$
425,172
$
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 and nine months ended September 30, 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/20231102702168/en/
RioCan Real Estate Investment Trust Dennis Blasutti Chief Financial Officer 416-866-3033 | www.riocan.com
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