Key Points
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Retail performance remained strong: Occupancy reached a record 98.8%, commercial same-property NOI rose 4.3% year over year, and blended leasing spreads were 23.1%. RioCan raised its 2026 commercial same-property NOI growth forecast to 4%–4.5%.
RioCan Living monetization is nearly complete: The trust has sold or contracted to sell approximately C$1.26 billion of residential assets, close to its C$1.3 billion capital-repatriation target. Unsold condo inventory declined to C$86 million, or about 1% of net asset value.
Balance-sheet flexibility improved: RioCan repaid major debt obligations, leaving only C$30 million of maturities for the rest of 2026, while reporting about C$700 million of liquidity and a C$9.7 billion unencumbered asset pool.
RioCan Real Estate Investment Trust (TSE:REI.UN) reported second-quarter results marked by record retail occupancy, continued leasing-spread strength and progress toward monetizing its RioCan Living portfolio, while raising its 2026 commercial same-property net operating income outlook.
President and CEO Jonathan Gitlin said the quarter reflected progress across operations, leasing, capital recycling and balance-sheet management. He said RioCan’s retail portfolio continues to benefit from constrained supply and retailer demand in the Canadian markets where it operates.
Retail occupancy and leasing spreads
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Retail occupancy reached a record 98.8% in the quarter. Commercial same-property NOI increased 4.3% year over year, marking the fourth consecutive quarter in which the measure grew by at least 4%, according to Gitlin.
The trust reported a blended leasing spread of 23.1%, including new-lease spreads of 40.8% and renewal spreads of 20.7%. Average net rent on new leases was C$37.73 per square foot, which Gitlin said was 60% above the average net rent per occupied square foot.
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RioCan has about 1 million square feet of lease maturities remaining in 2026 and roughly 3.7 million square feet maturing in each of 2027 and 2028. Approximately 30% of the portfolio’s leases roll through 2028, providing additional opportunities to capture differences between in-place and market rents, management said.
Gitlin cited a Greater Toronto Area grocery-store renewal in which rent was doubled. Oliver Harrison, RioCan’s senior vice president of leasing and tenant experience, said the lease had last been negotiated at market about 30 years earlier and had been relatively flat under its prior fixed-option structure.
Read More: RioCan Real Estate Investment Trust Q2 Earnings Call Highlights
