paul godfrey,c.m. chairman riocan’s strong trading performance 264% increase in the unit price...

Paul Godfrey,C.M.Chairman

RioCan’s Strong Trading Performance

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Jan-06

264% increase in the unit price since January 1, 1996

Source - RBC Capital Markets


Relative Price Performance RioCan vs. Major Indices

50%

100%

150%

200%

250%

300%

350%

400%

450%

Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06

RioCan REIT S&P/TSX Composite Index

S&P/TSX Income Trust Index S&P/TSX REIT Index

264%

165%

92%

56%

50%

100%

150%

200%

250%

300%

350%

400%

Jan-96 Jan-97 Jan-98 Jan-99 Jan-00 Jan-01 Jan-02 Jan-03 Jan-04 Jan-05 Jan-06

RioCan REIT Calloway REIT Cominar REIT CREIT

H&R REIT Morguard REIT Summit REIT

264%


164%

149%

105%

99%

11%

89%

Relative Price Performance RioCan vs. REIT Comparables

Total Returns

1996 1997 1998 1999 2000 2001 2002 2003 2004 20051996

to 2005

RioCan REIT

56.6% 35.5% -3.0% 2.8% 22.7% 41.5% 12.3% 33.2% 24.9% 36.9% 25.1%

Morgan Stanley U.S. REIT Index (RMZ)

35.9% 18.6% -16.9% -4.6% 26.8% 12.8% 3.6% 36.7% 31.5% 12.1% 14.3%

S&P 500 TR Index

23.0% 33.4% 28.6% 21.0% -9.1% -11.9% -22.1% 28.7% 10.9% 4.9% 9.1%

Dow Jones Industrial Average TR Index

28.7% 24.9% 18.1% 27.2% -4.7% -5.4% -15.0% 28.3% 5.3% 1.7% 9.8%

NASDAQ Composite Index

22.7% 21.6% 39.6% 85.6% -39.3% -21.1% -31.5% 50.0% 8.6% 1.4% 7.7%


Comparison of RioCan’s Performance to Investment Alternatives

Edward Sonshine, Q.C.President and C.E.O.

Asset Size (thousands)

12 Year Asset Growth

• 14,350,000 square feet of leasable area

• Cost of $1.65 billion• Cap rate of 9.84%• $110 per square foot

Active in Acquisitions (2000-2003)

• Capital had become abundant• Pension funds, realized that retail

real estate properties were excellent investments

Changing Strategies

• In 2005, RioCan sold 22 properties totalling almost 3.4 million square feet

• Annual net operating income in excess of $30 million

Changing Strategies

• A portfolio of properties that will have longevity, security and growth potential

Changing Strategies

• Calgary• Edmonton• Montreal• Ottawa• Toronto• Vancouver

Canada’s Six Urban Markets

Source – Statistics Canada

Province 1990 200415 year %

change

British Columbia 3,290,814 4,196,383 27.52%

Alberta 2,547,166 3,201,895 25.70%

Ontario 10,297,875 12,392,721 20.34%

Quebec 7,003,876 7,542,760 7.69%

Manitoba 1,105,668 1,170,268 5.84%

Prince Edward Island

130,539 137,864 5.61%

Nova Scotia 909,637 936,960 3.00%

New Brunswick 740,120 751,384 1.52%

Saskatchewan 1,007,114 995,391 -1.16%

Newfoundland and Labrador

578,037 517,027 -10.55%

Total Canada 27,697,530 31,946,316 15.34%

Canadian Population Growth

Market 1990 200415 year growth

15 year %

change

Toronto, Ontario 3,988,054 5,203,571 1,215,517 30.48%

Montreal, Quebec 3,269,084 3,606,652 337,568 10.33%

Vancouver, British Columbia

1,608,330 2,159,994 551,664 34.30%

Ottawa-Gatineau, Ontario/Quebec

939,413 1,142,669 203,256 21.64%

Calgary, Alberta 749,781 1,037,136 287,355 38.33%

Edmonton, Alberta 839,254 1,001,636 162,382 19.35%

Total Six Markets 11,393,91614,151,65

82,757,742 24.20%

Total Canada 27,697,53031,946,31

64,248,786 15.34%

Total Six Markets as a % of Canada

41.14% 44.30%Source – Statistics Canada


More people = greater retail sales = more demand for space

and higher rents


Toronto 30.4%

Ottawa 10.0%

Montreal 9.3%

Calgary 6.1%

Vancouver 4.0%

Edmonton 2.6%

Other 37.6%

Gross Revenue from Six Urban Markets

RIOCAN CENTRE, KINGSTON, ON

Other Quality Markets

• Greenfield developments with partners and through in-house capabilities

RioCan’s Development Program

• Total development = 5.5 million square feet, excluding shadow anchors

• RioCan’s owned interest = 3.5 million square feet

RioCan’s Development ProgramGreenfield Development

RIOCAN BEACON HILL, CALGARY, AB

RioCan’s StrategyGreenfield Development

RIOCAN CENTRE BURLOAK, OAKVILLE, ON



• 100 acres zoned for 400,000 square feet of retail use

• Restriction on store sizes and prohibition against supermarket use

Greenfield DevelopmentThe Process


• November 2003 applied to expand retail zoning to 550,000 square feet

• Loosening size restrictions and eliminating supermarket ban

Greenfield DevelopmentThe Process


• City of Oakville• City of Burlington• The Region of Halton• The Halton Conservation

Authority• The Ontario Ministry of

Transportation

RioCan’s StrategyThe Approval Process


Return on investment of

9%


RIOCAN MEADOWS, EDMONTON, AB


RIOCAN CENTRE BURLOAK,OAKVILLE, ON

RIOCAN MEADOWS, EDMONTON, AB

RIOCAN BEACON HILL, CALGARY, AB


New Format Retail 47.5%

Grocery AnchoredCentre 22.9%

Enclosed ShoppingCentre 19.0%

Urban Retail 5.9%

Non-GroceryAnchored Strip 3.9%

Other 0.8%

Asset Type as a % of Gross Revenue

• 2007 – 589,000 square feet• 2008 – 607,000 square feet• 2009 – 749,000 square feet

The Best Real Estate in the Best Markets

New Format Retail Expiries

Rental rates have grownsignificantly in the six

urban markets since we built these facilities

Rental Rates

• $16 persquare foot


RIOCAN BEACON HILL,CALGARY, AB

SIGNAL HILL CENTRE,CALGARY, AB

Rental Rates



RIOCAN CENTRE BURLOAK,OAKVILLE, ON

TRINITY COMMON,BRAMPTON, ON

Rental Rates

TRIBUTE COMMUNITIES,AVENUE ROAD

RioCan’s StrategyRedevelopment and Expansion of Existing Properties

LAWRENCE SQUARE, TORONTO, ON

RioCan’s StrategyRedevelopment and Expansion of Existing Properties

Asset Management Businessis an important contributor

to RDI

RDI Contributor

Return over past year

16.6%

Unitholder Return

paul godfrey,c.m. chairman riocan’s strong trading performance 264% increase in the unit price...

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