RioCan Real Estate Investment Trust (REI-UN) Q1 2026 earnings summary

Executive summary

• Strategy centers on retail core, delivering organic growth, financial flexibility, and long-term value for unitholders, with a focus on necessity-based retail and stable cash flows in major Canadian markets.

• Demonstrates over 30 years of operational excellence, prioritizing high-income, densely populated urban areas and necessity-based tenants.

• Strong operational momentum with record leasing spreads, high occupancy, and disciplined capital recycling, especially through RioCan Living asset sales.

• Completed mixed-use development cycle, now prioritizing retail-focused investments and portfolio optimization.

• Q1 results in line with expectations, reflecting progress on organic growth and capital allocation priorities.

Financial highlights

• Core FFO per unit (diluted) was $0.39 in Q1, flat year-over-year, with FY2025 at $1.55 and 2026 guidance of $1.60–$1.62; driven by 4.7% commercial Same Property NOI growth, offset by higher interest expense and lower NOI from asset sales.

• Commercial Same Property NOI grew 4.7% year-over-year in Q1, marking the third consecutive quarter at or above 4.5%.

• Blended leasing spreads reached 25.8% in Q1 2026, with new leasing spreads at 58.5% and renewal spreads at 20.1%.

• Committed retail occupancy was 98.6% in Q1, with a 92.4% retention ratio.

• Liquidity stood at $1.3 billion, with $9.4 billion in unencumbered assets at quarter end.

Outlook and guidance

• 2026 Core FFO per unit guidance reaffirmed at $1.60–$1.62, with ≥3.5% annual growth targeted through 2028.

• Commercial Same Property NOI growth guidance reaffirmed at 3.5%–4% for 2026 and ≥3.5% through 2028.

• Committed occupancy expected to remain between 97–98%.

• Portfolio investment spending projected at $95–$115 million in 2026, with a ≥9% unlevered IRR target.

• Core FFO expected to ramp up over the balance of the year.