RioCan Real Estate Investment Trust Announces Record

RioCan Real Estate Investment Trust Announces Record Operating FFO
Per Unit for the Third Quarter 2012 
TORONTO, ONTARIO -- (Marketwire) -- 11/06/12 -- RioCan Real Estate
Investment Trust (TSX:REI.UN) - 
HIGHLIGHTS for the Third Quarter of 2012: 
All figures in Canadian dollars unless otherwise noted. RioCan's
results are prepared in accordance with International Financial
Reporting Standards ("IFRS"). 


 
--  RioCan's Operating FFO increased by 19% to $115 million for the three
    months ending September 30, 2012 ("Third Quarter") compared to $97
    million in the third quarter of 2011. On a per unit basis, Operating FFO
    increased 8% to $0.40 per unit from $0.37 per unit in the same period of
    2011; 
--  RioCan's Operating FFO increased by 16% to $325 million for the nine
    months ended September 30, 2012 compared to $280 million for the same
    period in 2011. On a per unit basis, Operating FFO increased 6% to $1.13
    per unit from $1.07 per unit for the same period in 2011; 
--  Overall occupancy was 97.3% at September 30, 2012 compared to 97.4% at
    June 30, 2012; 
--  During the quarter, RioCan acquired Georgian Mall, a 604,600 square foot
    regional mall. The property features tenants such as The Bay, H&M, and
    Disney Store and was purchased for $318 million at a 5.5% capitalization
    rate. The acquisition was financed with a first mortgage in the amount
    of $185 million with an interest rate of 3.09% for a term of six years; 
--  During the Third Quarter, RioCan acquired interests in three properties
    in Canada and the US aggregating to 768,000 square feet at a purchase
    price of approximately $369 million at RioCan's interest at a weighted
    average capitalization rate of 5.7%; 
--  RioCan renewed 879,000 square feet in the Canadian portfolio during the
    Third Quarter at an average rent increase of $2.32 per square foot,
    representing an increase of 12.9%, compared to 7.2% for the same period
    in 2011; 
--  RioCan renewed 2.9 million square feet in the Canadian portfolio during
    the nine months ended September 30, 2012 at an average rent increase of
    $1.96 per square foot, representing an increase of 12.0%, compared to
    10.1% for the same period in 2011; 
--  Subsequent to the quarter end, RioCan has dissolved its joint venture
    agreement with Cedar Realty Trust ("Cedar") and acquired the remaining
    20% interest in 21 properties previously owned jointly with Cedar.
    Concurrently, RioCan sold its 80% interest in Franklin Village, also
    previously owned with Cedar. RioCan expects to assume the property
    management activities in the first quarter of 2013; and 
--  During the Third Quarter, RioCan issued 6,925,000 units at a price of
    $27.90 for aggregate proceeds of $193.2 million. 

 
RioCan Real Estate Investment Trust ("RioCan") today announced its
financial results for the three and nine months ended September 30,
2012. 
"We are very pleased with how the year has progressed to date.
RioCan's operating metrics are strong, the Trust has been successful
in further strengthening its balance sheet, and RioCan's acquisition
group has continued to secure high quality assets for RioCan's
continued growth," said Edward Sonshine, Chief Executive Officer of
RioCan. "We believe that RioCan is very well positioned to generate
additional growth next year through continued organic growth in the
portfolio, additional interest cost savings, and our outlook for long
term growth is secured by RioCan's strong acquisition platform and
ongoing development completions." 
Financial Highlights 
Operating Funds from operations ("Operating FFO") 
RioCan's Operating FFO represents the recurring cash flow generated
through the ownership and management of income properties. This is
the basis for determining RioCan's Adjusted Funds From Operations. In
contrast to FFO, Operating FFO also excludes transactional gains from
the sale of real estate as well as certain expenditures related to
development activities that are not capitalized during the
development period for accounting purposes that, in management's
view, forms part of its development projects.  
Operating FFO for the Third Quarter was $115 million ($0.40 per unit)
compared to $97 million ($0.37 per unit) in the third quarter of
2011. The primary reasons for this increase were: a $26 million
increase in net operating income ("NOI"), which was due to
acquisitions, lease cancelation fees of $7 million, same property
growth of 0.3% in Canada, and the completion of greenfield
developments. These increases to Operating FFO were partially offset
by increased preferred unit distributions of $2 million, higher
interest expense of $1 million, and higher general and administrative
expenses of $1 million during the Third Quarter.  
Operating FFO for the nine months ended September 30, 2012 was $325
million ($1.13 per unit) compared to $280 million ($1.07 per unit) in
the same period of 2011. The primary reasons for this increase were:
a $71 million increase in NOI, which was due to higher lease
cancelation fees of $8 million, along with same property growth of
1.1% in Canada and 0.1% in the US, and the completion of greenfield
developments. These increases to Operating FFO were partially offset
by increased interest expense of $7 million, which included $2.3
million of costs associated with the early repayment of $90 million
of secured debt in the second quarter (which carried an interest rate
of 5.9%), increased preferred unit distributions of $6 million,
higher general and administrative expenses of $4 million, and lower
fee and other income of $6 million during the first nine months of
2012.  
Net Earnings 
RioCan reported net earnings attributable to unitholders for the
Third Quarter of $125 million ($0.42 per common unit) compared to
$168 million ($0.63 per common unit) for the same period in 2011, a
decrease of $43 million ($0.21 on a per common unit basis). The
decrease is primarily the result of lower fair value gains on
investment properties of $7 million in the Third Quarter compared to
$73 million in the third quarter of 2011. Transactional gains in the
Third Quarter of $1 million partially offset the decline in net
earnings compared to 2011. Capitalization rates decreased by 2 bps,
on average, as compared to June 30, 2012. Excluding the impact of
fair value gains on investment properties, net earnings for the three
months ended September 30, 2012 was $120 million as compared to $97
million during the same period in 2011.  
RioCan reported net earnings attributable to unitholders for the nine
months ended September 30, 2012 of $876 million ($3.02 per common
unit) compared to $632 million ($2.39 per common unit) for the same
period in 2011, an increase of $244 million ($0.63 on a per common
unit basis). The increase is primarily the result of higher fair
value gains on investment properties of $567 million in the first
nine months of 2012 compared to $387 million in the same period of
2011. Excluding the impact of fair value gains on investment
properties, net earnings for the nine months ended September 30, 2012
was $323 million as compared to $254 million in the same period of
2011.  
Same Store and Same Property NOI 
Same store NOI was stable during the Third Quarter in Canada and same
property NOI increased by 0.3%, compared to the same period in 2011,
due largely to new leasing which favourably impacted NOI by $3.9
million, renewal and fixed rent steps which increased NOI by $1.5
million, and the leasing of space vacated due to bankruptcy or lease
cancellations, which increased NOI by $1.2 million. The increases to
same store and same property NOI were partially offset by the impact
of vacancy caused by normal course turnover of $3.8 million,
unanticipated vacancies that reduced NOI by $1.5 million, and $0.5
million in lower NOI from lease buyouts that have occurred in the
last 12 months.  
Same store and same property NOI for the nine months ended September
30, 2012 in Canada increased by 1.0% and 1.1% respectively, compared
to the same period in 2011, due largely to new leasing which
favourably impacted NOI by $11.7 million, renewal and fixed rent
steps which increased NOI by $4.4 million, and leasing of space
vacated due to bankruptcy or lease cancellations which increased NOI
by $3.9 million. The increases to same store and same property NOI
were partially offset by the impact of vacancy caused by normal
course turnover of $11.1 million, unanticipated vacancies that
reduced NOI by $3.8 million and $1.3 million of lower NOI from lease
buyouts that have occurred in the last 12 months.  
Sequentially, same store and same property NOI in Canada decreased by
0.4% and 0.3% respectively for the Third Quarter compared to the
first quarter of 2012 primarily due to an increase in NOI of $1.2
million due to new, renewal leasing and fixed rent steps which
positively impacted NOI by $0.3 million, and leasing of space vacated
due to bankruptcy or lease cancellations, which increased NOI by $0.3
million. The increases to same store and same property NOI were
offset by reduced NOI due to vacancy caused by normal course turnover
of $1.2 million, NOI was reduced by $0.2 million from lease buyouts
that have occurred in the last 12 months, and adjustments related to
tenant recoverable expenses increased by $0.7 million.  
Excluding the impact of foreign exchange, the US same store and same
property NOI during the Third Quarter decreased by 0.3% when compared
to the same period in 2011. Same property NOI for the nine months
ended September 30, 2012 increased by 0.1% when compared to the same
period in 2011 due to new and renewal leasing and fixed rent steps.
Same store and same property NOI increased by 1.4% for the Third
Quarter compared to the second quarter of 2012 primarily due to the
timing of property tax and operating cost recoveries. 
Portfolio Stability 
As at September 30, 2012: 


 
--  RioCan's Canadian occupancy rate declined to 97.2%, from 97.5% at June
    30, 2012; 
--  RioCan's US occupancy rate was flat compared to June 30, 2012 at 97.8%; 
--  RioCan's overall occupancy rate was stable at 97.3% compared to June 30,
    2012 at 97.4%, and relatively flat compared to 97.5% as at September 30,
    2011; 
--  The portfolio economic occupancy rate represents the occupied net
    leaseable area for which tenants are paying rent. The portfolio economic
    occupancy rate was unchanged at 95.5% compared to June 30, 2012. There
    is approximately 855,000 square feet for which lease payments are
    scheduled to start at future dates. The annualized rental revenue for
    this space is expected to be $18 million, with 91% of this revenue
    expected to begin paying rent during the next three quarters; 
--  In the Third Quarter, RioCan's retention ratio was 84.8% of expiring
    leases, compared to a retention ratio of approximately 88.9% in the
    third quarter of 2011. For the nine months ended September 30, 2012,
    RioCan's retention ratio was 88.8% of expiring leases; 
--  RioCan renewed 879,000 square feet in the Canadian portfolio during the
    Third Quarter at an average rent increase of $2.32 per square foot,
    representing an increase of 12.9%, compared to 7.2% for the same period
    in 2011. RioCan renewed 2.9 million square feet in the Canadian
    portfolio during the nine months ended September 30, 2012 at an average
    rent increase of $1.96 per square foot, representing an increase of
    12.0%, compared to 10.1% for the same period in 2011; 
--  RioCan renewed approximately 65,000 square feet of space in the US
    portfolio during the Third Quarter, at an average rent increase of $1.21
    per square foot, representing an increase of 6%. The retention ratio for
    expiring leases was 96.3%. RioCan renewed approximately 332,000 square
    feet of space in the US portfolio for the nine months ended September
    30, 2012, at an average rent increase of $1.09 per square foot,
    representing an increase of 7% with a retention rate of 85.8%; 
--  During the Third Quarter, at RioCan's interest, new vacancies excluding
    lease buyouts were 179,000 square feet, (186,000 square feet in the
    third quarter of 2011). During the quarter, 142,000 square feet of
    vacant space was leased to new tenants; 
--  For the nine months ended, at RioCan's interest, new vacancies were
    856,000 square feet (613,000 square feet in the first nine months of
    2011). During the nine months, approximately 473,000 square feet of
    vacant space was leased to new tenants; 
--  RioCan's Canadian portfolio is concentrated in Canada's six high growth
    markets (consisting of Calgary, Edmonton, Montreal, Ottawa, Toronto and
    Vancouver). Assets in these markets contribute about 67.4% of RioCan's
    Canadian annualized rental revenue (65.9% at Dec. 31, 2011); 
--  National and anchor tenants represented about 85.9% of RioCan's total
    annualized rental revenue at September 30, 2012, relatively flat
    compared to 86.0% at September 30, 2011; 
--  No individual tenant comprised more than 4.3% of annualized rental
    revenue. At September 30, 2012, Walmart was RioCan's largest tenant; and
--  Following the recent storm activity in the northeast there was no
    material damage to RioCan's portfolio, one US shopping centre
    experienced minor damage to one of the tenant's spaces and no Canadian
    centres experienced any material damage. 

 
Portfolio Activity and Acquisition Pipeline 
During the Third Quarter, RioCan completed three acquisitions of
interests in income producing properties (two in Canada and one in
the US) at an aggregate purchase price of $369 million, at RioCan's
interest (calculated taking into account the US dollar transaction at
an average exchange rate of $0.986 CAD per $1 USD), with a weighted
average capitalization rate of 5.7%. 
Subsequent to quarter end, not including RioCan's transaction with
Cedar, RioCan completed the acquisitions of six income properties
(four in Canada and two in the US) at a purchase price of $162
million at RioCan's interest (calculated taking into account the US
dollar transactions at an exchange rate of $0.990 CAD per $1 USD),
comprised of approximately 862,000 additional square feet, at a
weighted average capitalization rate of 6.6%.  
Subsequent to quarter end and in accordance with the terms of the
dissolution of the RioCan/Cedar joint venture, Cedar conveyed its 20%
interest in 21 properties owned by the RioCan/Cedar joint venture to
RioCan for a gross purchase price of US$119.5 million, representing a
capitalization rate of 6.5%. 
In addition, RioCan has two income producing properties (one in
Canada and one in the US) with an aggregate purchase price of $39.5
million (calculated taking into account the US dollar transactions at
an exchange rate of par) under contract where conditions have been
waived pursuant to purchase and sale agreements that are expected to
be completed during the fourth quarter of 2012.  
Acquisitions Completed in the Third Quarter 
Canada  
On August 31, 2012, RioCan completed its previously announced
acquisition of a 100% interest in Georgian Mall in Barrie, Ontario.
As previously disclosed in its press release on July 26, 2012 and as
described in its Interim Financial Report, the purchase price for the
property was $318 million, which equates to a capitalization rate of
5.5% for the income producing components, and in connection with the
acquisition, RioCan has arranged six-year mortgage financing in the
amount of $185 million which carries an interest rate of 3.09%.  
On August 31, 2012, RioCan completed its acquisition from Trinity
Development Group of the remaining 50% interest in Trinity Crossing
in Ottawa, Ontario. The acquisition increases RioCan's ownership of
this property to 100%. Trinity Crossing is a 191,448 square foot
shopping centre anchored by Winners/HomeSense, Value Village,
Michael's and LCBO with Loblaws as a shadow anchor. The purchase
price for RioCan's additional interest was $29 million, which equates
to a capitalization rate of 6.00%. In connection with its purchase
from its partner, RioCan has assumed its proportionate share of the
existing mortgage debt that is in place for this property,
representing an additional aggregate principal amount of $14.5
million that carries an interest rate of 5.29% and matures in
September 2016.  
RioCan completed the acquisition of the remaining 25% interest in
Elgin Mills Crossing in Richmond Hill, Ontario. The acquisition
increases RioCan's ownership of this property to 100%. Elgin Mills
Crossing is a 425,157 square foot new format retail shopping centre
(320,328 square feet owned by RioCan; the remainder owned by a
tenant) anchored by Costco, Michael's and Staples with Home Depot as
a shadow anchor. The purchase price for RioCan's additional interest
was $20 million, which equates to a capitalization rate of 5.8%. In
connection with the purchase, RioCan has assumed its proportionate
share of the existing mortgage debt that is in place for this
property, representing an additional principal amount of $11 million
that carries an interest rate of 6.05% and matures in October 2018.
RioCan benefited from a mark to market adjustment of $1 million in
consideration of the above market interest rate. 
United States 
On August 31, 2012, RioCan acquired from Dunhill Partners, Inc.
("Dunhill") an 85% joint venture interest in Las Colinas Village in
Irving (Dallas), Texas. Las Colinas Village is a 104,741 square foot,
unenclosed new format shopping centre tenanted by Staples, State Farm
Insurance, Starbucks and H&R Block among other tenants. Dunhill has
retained a 15% interest in the property and will manage the property
on behalf of the joint venture. RioCan acquired its interest in the
property for US$23 million, which equates to a capitalization rate of
7.83%. In connection with its purchase, RioCan assumed its
proportionate share of the existing mortgage debt that is in place
for this property, representing a principal amount of US$15 million
that carries an interest rate of 6.23% and matures in February 2021.
RioCan benefited from a mark-to-market adjustment in the amount of $3
million in consideration of the above market interest rate. 
Acquisitions Completed Subsequent to the Quarter ended September 30,
2012 
Canada 
Subsequent to quarter end, RioCan and Tanger completed the purchase
of Les Factories St. Sauveur and Bromont Outlet Mall on a 50/50 basis
at an aggregate purchase price of $95 million, at a capitalization
rate of 5.9%. RioCan will provide development and property management
services and Tanger will provide leasing and marketing services. The
co-owners will assume the aggregate in place financing of $19 million
which carries a weighted average interest rate of 5.7% and matures in
2015 and 2020.  
Les Factories St. Sauveur is located approximately 60 kms northwest
of Montreal, Quebec directly off of Highway 15 in the town of St.
Sauveur, Quebec. The property was built in 1980, and expanded in
2006, and is approximately 116,000 square feet with the potential to
expand the property on the adjacent 1.1 acres of land which will also
be acquired. This well established outlet centre features many
national brands such as, Nike, Tommy Hilfiger Outlet, Reebok, Guess
and Parasuco.  
Bromont Outlet Mall, is located approximately 85 kms east of
Montreal, Quebec near the eastern townships directly off of Highway
10 in the town of Bromont, Quebec. The property was built in 2004 and
expanded through 2011, and is approximately 162,000 square feet with
the potential to expand the property to approximately 251,000 square
feet. This well established outlet centre features many national
brands such as, Point Zero, Tommy Hilfiger Outlet, Puma, Mexx, and
Urban Planet. 
RioCan completed the acquisition of the remaining 50% interest in the
land lease at Westgate Shopping Centre at a purchase price of $9
million. Westgate Shopping Centre is 165,842 square foot non-grocery
anchored retail outlet located in Ottawa, Ontario. RioCan now has a
100% interest in the property, including the land portion.  
United States 
Subsequent to quarter end and in accordance with the terms of the
dissolution of the RioCan/Cedar joint venture, Cedar conveyed its 20%
interest in 21 properties owned by the RioCan/Cedar joint venture to
RioCan for a gross purchase price of US$119.5 million, representing a
capitalization rate of 6.5%. RioCan has assumed Cedar's share of the
existing in-place mortgage financing of US$54.4 million in respect of
such 21 properties, which carries a weighted average interest rate of
5.2% and a weighted average term to maturity of 5.2 years.  
In turn, RioCan conveyed its 80% interest in Franklin Village
(located in Franklin, MA) to Cedar for a gross sale price of US$60.1
million (less debt assumed by Cedar from RioCan in the amount of
US$34.7 million). Cedar contracted to provide property management
services to RioCan for a period of up to one year, cancellable by
RioCan on 90 days notice, under similar terms as the property
management services previously provided by Cedar. RioCan is in the
process of establishing a property management platform in the
northeastern US that will allow it to take over property management
from Cedar by January 31, 2013. On October, 31, 2012, RioCan served
Cedar with a notice of cancellation under the property management
agreement, such that RioCan will commence property management of the
northeastern US portfolio no later than January 31, 2012.  
RioCan completed the previously disclosed acquisition of a 100%
interest in Deptford Landing, a 517,057 square foot new format retail
centre located in Deptford Township, New Jersey. The purchase price
for the property was US$64 million, which equates to a capitalization
rate of 7.6%. Cedar will initially manage the property on behalf of
RioCan. As part of the acquisition, RioCan assumed the existing
mortgage in the amount of US$33 million with an interest rate of 6.1%
and maturity date of January 1, 2021.  
RioCan's total portfolio in the northeastern US includes 25
properties totalling 5.3 million square feet (including shadow
anchors) in the states of Connecticut, New Hampshire, New Jersey, New
York, Massachusetts, Maryland, Pennsylvania, and Virginia. 
RioCan completed the acquisition of an 85% non-managing interest in
Arbor Park with Dunhill for a purchase price of US$26 million at 100%
(US$22 million at RioCan's interest) which equates to a
capitalization rate of 6.7%. Dunhill, who currently owns a 100%
managing interest in the property, will retain a 15% interest and
will manage the property on behalf of the joint venture. Arbor Park
is a 139,700 square foot new format retail centre located in San
Antonio, Texas. Arbor Park is located near the downtown core. The
property, which is currently 98% occupied, was built in 1998 and has
a weighted average remaining lease term of 4.7 years. The property is
anchored by Sprouts Grocery Store, Ross Dress for Less, Office Max
and Michaels. Other notable tenants include Dress Barn, GameStop and
Payless Shoesource. As part of the acquisition, the joint venture
will assume the existing mortgage in the amount of US$17 million
(US$14 million at RioCan's interest) with an interest rate of 4.6%
and maturity date of July 6, 2016. The amortization period is 30
years. 
Acquisitions Under Contract (Firm) 
RioCan currently has two income properties (one in Canada and one in
the US) under contract where conditions have been waived that, if
completed, represent $39.5 million of acquisitions at RioCan's
interest, at a weighted average capitalization rate of 6.2%.  
Canada 
In Canada, RioCan has waived conditions pursuant to a purchase and
sale agreement with respect to one property as follows: 
The previously disclosed acquisition of a 100% interest in 649 Queen
Street West, a 14,200 square foot single-tenant property occupied by
CB2, the urban version of Crate & Barrel (there is an additional
6,450 square feet of basement space). The purchase price for the
property is $14 million, which equates to a capitalization rate of
4.89% and will be acquired free and clear of financing. 
United States 
In the US, RioCan has waived conditions pursuant to a purchase and
sale agreement with respect to one property as follows: 
The acquisition of an 85% non-managing interest in Louetta Central
for a purchase price of US$31 million at 100% (US$26 million at
RioCan's interest) which equates to a capitalization rate of 6.9%.
Dunhill will acquire the other 15% interest and will manage the
property on behalf of the joint venture. Louetta Central is a 179,995
square foot non-grocery anchored retail centre located in Spring,
Texas. The property, which is currently 100% occupied, has a weighted
average remaining lease term of 6.4 years and is anchored by Kohl's,
Ross Dress for Less and Michael's. The property will be acquired free
and clear of financing. 
Acquisition Pipeline 
RioCan is currently in negotiations regarding property acquisitions
in Canada and the US that, if completed, represent approximately $30
million of additional acquisitions at RioCan's interest (calculated
taking into account the US dollar transactions at an exchange rate of
par). These transactions are in various stages of negotiations and
while efforts will be made to complete these negotiations, no
assurance can be given. 
Liquidity and Capital 
The 12 month rolling EBITDA interest coverage for RioCan at September
30, 2012 was 2.62x (2.77x for the Third Quarter) compared to 2.45x at
December 31, 2011. As at September 30, 2012, RioCan's indebtedness
net of cash was 43.2% of total assets a decrease of 320 bps from year
end (46.4%). RioCan's Net Debt to Adjusted EBITDA at September 30,
2012 was 7.33x, up slightly from 7.30x at December 31, 2011. RioCan's
Net Operating Debt to Adjusted Operating EBITDA, which excludes debt
related to properties under development, was 7.07x at September 30,
2012 compared to 7.04x at December 2011. As part of RioCan's capital
management strategy, it is RioCan's objective to strengthen its
balance sheet as well as improve its coverage ratios over time.  
RioCan has the continued flexibility to generate additional funds in
2012 through financing maturing loan balances as well as repay
additional balloon balances to increase the size of RioCan's pool of
unencumbered assets. As at September 30, 2012, RioCan had 62
properties (including 12 unencumbered properties under development)
that are unencumbered with a fair value of approximately $647
million. 
Mortgage Financing 
Canada 
In the Third Quarter, RioCan obtained approximately $233 million of
fixed-rate mortgage financing at a weighted average interest rate of
3.2% with a weighted average term to maturity of about 5.7 years.  
US 
In the Third Quarter, RioCan did not obtain any fixed-rate mortgage
financing. 
Unsecured Debentures 
As at September 30, 2012, RioCan had seven series of Debentures
outstanding totalling $1.0 billion (December 31, 2011 - six series
totalling $827 million).  
Lines of Credit 
RioCan has four revolving lines of credit in place with three
Canadian chartered banks, having an aggregate capacity of $429
million against which, none has been drawn and $25 million has been
drawn as letters of credit leaving $404 million available for cash
draws under the lines of credit.  
Term facilities 
During the Third Quarter, RioCan obtained a US$150 million senior
secured term facility arranged by Raymond James Bank N.A. The term
facility was syndicated to US Bank, N.A. and Bank of America, N.A.
The facility is for a term of five years and will carry a floating
interest rate of LIBOR plus 150bps. The facility is secured by a
portfolio of Canadian assets. As at September 30, 2012, 50% of the
facility was drawn.  
Development Portfolio 
As at September 30, 2012, RioCan had ownership interests in 10
greenfield development projects that will, upon completion, comprise
about 8.8 million square feet (4.6 million square feet at RioCan's
interest). In addition to its development projects, RioCan continues
its urban intensification activities, primarily in the Toronto,
Ontario market.  
During the Third Quarter, RioCan acquired interests in development
properties in Canada at a purchase price of $31 million, at RioCan's
interest. During the nine months ended September 30, 2012, RioCan
acquired interests in development properties in Canada at a purchase
price of $34 million, at RioCan's interest. 
RioCan has one development site under firm contract for a purchase
price of $16 million, at RioCan's interest. Conditions have been
waived and it is expected that this acquisition will close in the
fourth quarter of 2012. Additionally, RioCan has $80 million of
development property acquisitions (at RioCan's interest) under
contract where conditions have not yet been waived. These
transactions are in various stages of due diligence and while efforts
will be made to complete these transactions, no assurance can be
given. 
RioCan's Unaudited Interim Consolidated Financial Statements,
Management's Discussion and Analysis and a Supplemental Information
Package for the three and nine months ended September 30, 2012 are
available on RioCan's website at www.riocan.com. 
Conference Call and Webcast 
Interested parties are invited to participate in a conference call
with management on Tuesday, November 6, 2012 at 11:00 a.m. eastern
time. You will be required to identify yourself and the organization
on whose behalf you are participating.  
In order to participate, please dial 416-340-8018 or 1-866-223-7781.
If you cannot participate in the live mode, a replay will be
available until December 5, 2012. To access the replay, please dial
905-694-9451 or 1-800-408-3053 and enter passcode 9981143#.  
Scheduled speakers include Edward Sonshine, O.Ont. Q.C., Chief
Executive Officer, Fred Waks, President and Chief Operating Officer
and Rags Davloor, Executive Vice President and Chief Financial
Officer. Management's presentation will be followed by a question and
answer period. To ask a question, press "star 1" on a touch-tone
phone. The conference call operator will be notified of all requests
in the order in which they are made, and will introduce each
questioner.  
Alternatively, to access the simultaneous webcast, go to the
following link on RioCan's website http://investor.riocan.com/Investo
r-Relations/Events-Webcasts/default.aspxand click on the link for the webcast. 
The webcast will be archived
24 hours after the end of the conference call and can be accessed for
120 days.  
About RioCan 
RioCan is Canada's largest real estate investment trust with a total
capitalization of approximately $13.9 billion as at September 30,
2012. It owns and manages Canada's largest portfolio of shopping
centres with ownership interests in a portfolio of 338 retail
properties conta
ining more than 80 million square feet, including 49
grocery anchored and new format retail centres containing 12.4
million square feet in the United States through various joint
venture arrangements as at September 30, 2012 . RioCan's portfolio
also includes 10 properties under development in Canada. For further
information, please refer to RioCan's website at www.riocan.com. 
Forward-Looking Information 
This news release contains forward-looking statements within the
meaning of applicable securities laws. These statements include, but
are not limited to, statements made in this News Release (including
the sections entitled "Highlights for the third quarter of 2012",
"Financial Highlights", "Portfolio Stability", "Portfolio Activity
and Acquisition Pipeline", "Liquidity and Capital", and "Development
Portfolio"), and other statements concerning RioCan's objectives, its
strategies to achieve those objectives, as well as statements with
respect to management's beliefs, plans, estimates, and intentions,
and similar statements concerning anticipated future events, results,
circumstances, performance or expectations that are not historical
facts. Forward-looking statements generally can 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 statements
reflect management's current beliefs and are based on information
currently available to management. All forward-looking statements in
this News Release are qualified by these cautionary statements.  
These forward-looking statements are not guarantees of future events
or performance and, by their nature, are based on RioCan's current
estimates and assumptions, which are subject to risks and
uncertainties, including those described under "Risks and
Uncertainties" in RioCan's Management's Discussion and Analysis for
the period ended September 30, 2012, which could cause actual events
or results to differ materially from the forward-looking statements
contained in this News Release. Those risks and uncertainties
include, but are not limited to, those related to: liquidity in the
global marketplace associated with economic conditions, tenant
concentrations, occupancy levels, access to debt and equity capital,
interest rates, joint ventures/partnerships, the relative illiquidity
of real property, unexpected costs or liabilities related to
acquisitions, construction, environmental matters, legal matters,
reliance on key personnel, unitholder liability, income taxes, the
investment in the United States of America ("US"), fluctuations in
the currency exchange rate between the Canadian and US dollar and
RioCan's qualification as a real estate investment trust for tax
purposes. Material factors or assumptions that were applied in
drawing a conclusion or making an estimate set out in the
forward-looking information may include, but are not limited to: a
stable retail environment; relatively low and stable interest costs;
a continuing trend toward land use intensification in high growth
markets; access to equity and debt capital markets to fund, at
acceptable costs, the future growth program to enable the Trust to
refinance debts as they mature; the availability of purchase
opportunities for growth in Canada and the US; and the impact of
accounting principles adopted by the Trust effective January 1, 2011
under International Financial Reporting Standards ("IFRS"). 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 these
forward-looking statements. Certain statements included in this News
Release may be considered "financial outlook" for purposes of
applicable securities laws, and such financial outlook may not be
appropriate for purposes other than this News Release.  
The Income Tax Act (Canada) contains provisions which potentially
impose tax on publicly traded trusts (the "SIFT Provisions").
However, the SIFT Provisions do not impose tax on a publicly traded
trust which qualifies as a real estate investment trust ("REIT").
RioCan currently qualifies as a REIT and intends to continue to
qualify for future years. Should this not occur, certain statements
contained in this News Release may need to be modified. 
Except as required by applicable law, RioCan under takes no
obligation to publicly update or revise any forward-looking
statement, whether as a result of new information, future events or
otherwise. 
Contacts:
RioCan Real Estate Investment Trust
Rags Davloor
Executive Vice President & CFO
(416) 642-3554
www.riocan.com