INVESTOR DAY 2018 PROPERTY TOUR - April 18, 2018
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INVESTOR DAY 2018 PROPERTY TOUR April 18, 2018
VALUE PROPOSITION AND FOUR STRATEGIC PILLARS
REAL VISION, SOLID GROUND
CANADA’S MAJOR MARKET PORTFOLIO
• High quality, necessity based retail, and increasingly mixed-use major markets portfolio
• Diversified, strong national tenant base
• Significant upside on rent growth
• Base for significant NAV growth – tremendous intrinsic value to be unlocked
• Strong executive bench with wealth of experience and proven track record
DRIVING ORGANIC UNLOCKING STRATEGIC STRONG
GROWTH INTRINSIC VALUE ACQUISITIONS BALANCE SHEET
• Evolving tenant mix • Focusing on transit- • Acquire only the best • Low leverage
and revenue growth oriented urban locations in the six • Low cost of debt
• Improving operating intensification in major major markets • Laddered debt
efficiency and cost markets • Opportunities to maturity and mostly
structure • Mostly mixed-use with acquire partners’ fixed rate
• Redeveloping prime residential rental interests in today’s • Access to multiple
assets and/or condo tight market sources of capital
• Optimize pads by development • Highly selective • Large
adding additional • Strategic alliances to acquisitions of unencumbered
GLA mitigate risk and development sites, assets pool
• Drive ancillary create steady fee leveraging existing generating 56.7% of
revenues stream properties annualized NOI
• Continuous portfolio • Robust and growing
pruning pipeline of well located
sites with substantial
zoning approved
2
LEADERSHIP TEAM
EXPERIENCE, INTEGRITY AND FORESIGHT
• Strong executive bench
with a wealth of
experience and proven
Ed Sonshine Rags Davloor, Qi Tang,
O.Ont., Q.C. President and COO SVP and CFO
track record
Founder and CEO 25 years in Real Estate, 20 years in
Operations & Finance Finance • Fully integrated REIT
& Real Estate
with all disciplines in-
house including:
o Investments
o Leasing
o Asset Management
Jonathan Gitlin, Jeff Ross, John Ballantyne, o Development &
SVP Investments & SVP Leasing & Tenant SVP Asset Construction
Residential Coordination Management
18 years in Real Estate 24 years in Real Estate
o Property Management
30 years in Real Estate
o Finance, Legal and
Human Resources
• Trusted and respected,
with deep industry
knowledge and
Andrew Duncan Danny Kissoon Jennifer Suess relationships
SVP Developments SVP Operations SVP General Counsel
18 years in 32 years in Real & Corporate Secretary
Development, 12 years Estate 16 years in Law with a 3
in Real Estate focus on Real Estate
PROPERTY TOUR PROPERTIES
INDUSTRY LEADING PRESENCE IN THE TORONTO CORE
Property Name
1 RioCan Hall
2 The Well
3 King Portland Centre (Kingly)
4 Shoppes on Queen West
5 Bathurst College Centre
6 College Ave. & Manning Ave. (Strada)
7 491 College St.
8 740 Dupont Ave. (Litho.)
9 Yonge Eglinton Centre
Northeast Corner Yonge Eglinton
10
(ePlace and eCentral)
11 Sunnybrook Plaza
12 RioCan Leaside
13 Shops on Summerhill
14 Yorkville
4
GREATER TORONTO AREA (GTA) FOCUS
TOUR AGENDA
NLA SF ‘000s
Development
Tour on % Leased/
Name RioCan Interest Completion Page
Stop Completion Preleased
(100%)
1 RioCan Hall 100% TBD TBD 100% 6
50% - Commercial
Commercial - 2021
2 The Well 40% - Residential Air Rights 2,938 N/A 7
Building 6 – 2023
50%- Building 6
3 King Portland Centre (Kingly) 50% 425 2018/2019 94% 10
4 Shoppes on Queen West 100% 89 2011 100% 12
5 Bathurst College Centre 100% 139 2019 79% 13
College Ave. & Manning Ave.
6 50% 113 2021 79% 14
(Strada)
7 491 College St. 50% 24 2018 63% 15
8 740 Dupont Ave. (Litho.) 50% 181 2021 13% 16
9 Yonge Eglinton Centre 100% 1,059 2016 (expansion) 99.3% 18
Northeast Corner Yonge
10 50%* 707 2018/2019 31% 19
Eglinton (ePlace and eCentral)
11 Sunnybrook Plaza 50% 316 2023 84.5% (current) 20
12 RioCan Leaside 100% 1,307 TBD 100% 21
13 Shops on Summerhill 75% TBD TBD 100% 22
14 Yorkville 50% ~500 TBD N/A 23
5
UNPARALLELED GTA ASSETS
PRIME DOWNTOWN LOCATION
RIOCAN HALL
TORONTO ON
Location: Prime location in the heart of
the entertainment district in Toronto’s
Downtown corridor
Intersection: Richmond St. and John St.
NLA: 227,326 sf
Ownership: 100%
Major Tenants
• Cineplex
• Michaels
• Marshalls
• Goodlife Fitness
Potential for future intensification
considering the prime location in
downtown Toronto Proposed
Demographics in 5km radius:
• Population: 526k
• Average household income: $118k+
Proposed
6
UNPARALLELED GTA ASSETS
MIXED-USE DEVELOPMENT
THE WELL TORONTO, ON
Proposed
7
UNPARALLELED GTA ASSETS
MIXED-USE DEVELOPMENT
THE WELL,
TORONTO, ON
Location: 7.7 acre site situated at the gateway to
downtown Toronto, at Front and Spadina. Transit
oriented adjacent to the site of a proposed intercity
GO Train stop.
Ownership Structure:
Commercial: 50% (J.V. with Allied Properties REIT
Residential: 40% (J.V. Allied Properties REIT and
WNUF2*)
Residential Building 6: 50%
(J.V. with Woodbourne )
Property Type: Mixed-use with 500,000 sf retail,
1.1 M sf office and ~1,800 residential units (condo
Proposed
and rental) at 100%
• Demographics 5KM radius:
Zoning Status: Zoned
• Population: 485k
Estimated PUD Costs (RioCan’s interest): • Average household income: $114k+
$675 M, Residential Building 6 - $129 M • Innovative, amenity rich design including a European inspired
food hall
• Office is targeted LEED platinum
Estimated project completion: • Teaming with Enwave for the first low-carbon resilient cooling
Commercial - 2021, Residential Building 6 - 2023 and heating option for the property and surrounding community
*WNUF2 holds a 20% interest in the residential portion until the sale of air rights to Tridel and Woodbourne upon completion of the
underground and podium structures . 8
UNPARALLELED GTA ASSETS
MIXED-USE DEVELOPMENT
THE WELL,
TORONTO ON
Surfacing Value
• RioCan and its partners acquired the
former Globe and Mail head office and
surrounding land for $170 million in 2012
and 2013
• Agreement in place to sell 1.1M sf of air
rights to residential developers Tridel and
Woodbourne for approximately $180 million
upon completion of the underground and
podium structures
• Upon completion, an estimated 10,000
people will live and work at the property
• A comprehensive signage master plan
agreement has been approved by the city.
Interior and exterior digital signage will
generate significant ancillary revenue
Proposed
Proposed
9
UNPARALLELED GTA ASSETS
RESIDENTIAL INTENSIFICATION
KING PORTLAND CENTRE,
TORONTO, ON
Location: A 1.5 acre site in Toronto’s trendy
downtown west with direct access to transit
Property Type: Mixed-use with office, retail and
condominiums
Leasing/Sales: 134 condominium units fully sold out
ahead of price expectations. New office 256,000 sf
(at 100%) 100% leased to Shopify and Indigo: retail
all but 7,000 sf leased. Existing 55,000 sf of office
space adjacent to the building is 100% leased with
substantial rent upside upon project completion
Ownership: 50% (JV with Allied Properties REIT)
Incremental Commercial NLA: 166,000 sf at
RioCan’s Interest
Zoning/Status: Zoned
Proposed
Estimated PUD Costs (at RioCan’s Interest):
$82.4 M • Demographics in 5km radius:
Estimated Project Completion: 2018/2019 • Population: 823k
• Average household income: $115k+
• Office tower is targeted LEED platinum
10UNPARALLELED GTA ASSETS
RESIDENTIAL INTENSIFICATION
KING PORTLAND CENTRE (KINGLY)
TORONTO, ON
Proposed
11UNPARALLELED GTA ASSETS
RESIDENTIAL INTENSIFICATION
SHOPPES ON QUEEN
TORONTO, ON
Location: Prime location in Toronto’s
trendy Queen west with direct access to
transit
Property Type: Mixed-use with three
floors of retail and 90 condominium units
Leasing: Retail component is 100%
occupied.
NLA: 89,419 sf
Major Tenants – Loblaws, Winners, Bank
of Montreal
Ownership: 100%
Demographics in 5km radius: Proposed
NLA: 89,400 sf
• Population: 823k
Completed: 2011 • Average household income: $115k+
12UNPARALLELED GTA ASSETS
MIXED-USE DEVELOPMENT
BATHURST COLLEGE
CENTRE, TORONTO
Location: A 1.3 acre site situated in the
western downtown corridor in Toronto, at
Bathurst Street and College Avenue. Directly
across street from Toronto General Hospital
Ownership Structure: 100%
Property Type: 139,000 sf mixed-use office
and retail
Leasing status: 79% pre-leased
Tenants: UHN, Winners, Sobeys, Bank of
Nova Scotia
Zoning/Status: Zoned
Estimated PUD Costs: $107.4 M
Estimated project completion: 2019
Proposed
Demographics in 5km radius:
• Population: 590k
• Average household income: $117k+
Proposed
13UNPARALLELED GTA ASSETS
RESIDENTIAL INTENSIFICATION
COLLEGE & MANNING (STRADA),
TORONTO, ON
Location: Prime 0.5 acre site located in Toronto’s “Little
Italy” district with direct access to transit
Property Type: Mixed-use, office, retail and rental
residential
Leasing (Commercial Component): 79%
Ownership: 50% (JV with Allied Properties REIT)
Incremental Commercial NLA: 56,000 sf at RioCan’s
Interest (113,000 sf at 100%)
Zoning Status: Zoned
Estimated PUD Costs (at RioCan’s Interest): $30.6 M
Project Start / Anticipated Completion: 2018/ Late 2021 Proposed
Demographics in 5km radius:
• Population: 594k
• Average household income: $117k+
14UNPARALLELED GTA ASSETS
MIXED-USE DEVELOPMENT
491 COLLEGE STREET WEST
TORONTO, ON
Location: Prime site located in Toronto’s
“Little Italy”
Property Type: Mixed-use, office, retail
Leasing: 63%
Major Tenants: LCBO
Ownership: 50% (JV with Allied Properties
REIT)
Commercial NLA: 12,000 sf at RioCan’s
Interest (24,000 sf at 100%)
Estimated PUD Costs (at RioCan’s
Interest): $12.0 M Proposed
Anticipated Completion: 2018 Demographics in 5km radius:
• Population: 597k
• Average household income: $117k+
15UNPARALLELED GTA ASSETS
RESIDENTIAL INTENSIFICATION
740 DUPONT AVE. (LITHO.),
TORONTO, ON
Location: Toronto, Ontario
Property Type: Located on a 1.4 acre site, this mixed-
use retail and residential containing 9-storey project with
210 rental units and 31,000 square feet of retail
GLA. Firm lease with Farm Boy (23,000sf) to anchor the
retail portion of the site.
Ownership: 50% (JV with Woodbourne)
Project Start / Anticipated Completion: 2017 / 2021
Zoning status: Zoned
Estimated PUD Cost (at RioCan’s interest): $70.2 M
Proposed
Surfacing Value
• Site was acquired in 2010, formerly occupied by Grand
Touring automobile until November 2017 Demographics in 5km radius:
• Well located along a busy thoroughfare in a densely • Population: ~700k
populated area of Toronto. A short walk to the Bloor- • Average household income: ~ $120k
Danforth subway line
16UNPARALLELED GTA ASSETS
RESIDENTIAL INTENSIFICATION
740 DUPONT AVE. (LITHO.),
TORONTO, ON
Proposed
17UNPARALLELED GTA ASSETS
STRATEGIC REDEVELOPMENT
RIOCAN YONGE EGLINTON CENTRE,
TORONTO
Intersection: Yonge St. and Eglinton Ave. East
Ownership: 100%
Total GLA: 1,056,285 sf
Property Concept: Mixed-use
Project Completion: 2016
Surfacing Value:
• Purchase Price (2007): $223 million
• Capital Invested: $110 million
• Current Value: $574 million
• NOI at acquisition: $13 million
• Value Stabilized NOI: $26 million
73% increase in value over costs
• Strategically evolved building aesthetics and
tenant mix to meet consumer needs
• Incremental revenue through leasing of the
digital screens on the building interior and
exterior
18UNPARALLELED GTA ASSETS
RESIDENTIAL INTENSIFICATION
YONGE & EGLINTON NORTHEAST
CORNER (eCentral at ePlace)
TORONTO, ON
Location: A 3.2 acre site at the heart of one of Toronto’s
busiest and most popular intersections. Unparalled access to
the Yonge subway and new Eglinton Crosstown LRT
Property Type: Mixed-use with retail, residential tower with
466 units and condominium tower with 623 units
Ownership: 50% (JV with Metropia and Bazis)
Leasing/Sales: All 623 condominium units have been pre-
sold. Retail is 82% leased (anchored by TD Bank)
Rental Residential Units: 466 Units
Zoning Status: Zoned
Anticipated Completion: 2018 & 2019
Surfacing Value
• Agreement in place to acquire the partners’ 50% interest in Proposed
the 466 unit rental residential tower at cost plus $10M
• Agreement in place to acquire partner’s 50% interest in the Demographics in 5km radius:
retail NLA at a 7% capitalization rate upon completion of the • Population: 495k
project • Average household income: $156k+
19UNPARALLELED GTA ASSETS
RESIDENTIAL INTENSIFICATION
SUNNYBROOK PLAZA,
TORONTO, ON
Location: A 2.3 acre site located on new Eglinton LRT in an
affluent neighbourhood in midtown Toronto
Ownership: 50% (JV with Concert Properties)
Property Type: Mixed-use with one 16 storey and one 11
storey rental residential towers (approx. 427 units)
Commercial NLA: 22,000 sf at RioCan’s Interest
Project Start / Anticipated Completion: 2020/2023
Surfacing Value:
• RioCan acquired the centre in 2007 for $22.8 million (100%)
• Concert paid RioCan $26.3 million in June 2017 for a 50%
interest in the development
Proposed
• More than doubled the value in ten years, before significant
value creation upon this project’s completion Demographics in 5km radius:
• Population: 450k
• Average household income: $164k+
20UNPARALLELED GTA ASSETS
RESIDENTIAL INTENSIFICATION
RIOCAN LEASIDE CENTRE,
TORONTO, ON
Location: Approximately 8.8 acre site located on new
Eglinton LRT in an affluent neighbourhood in midtown
Toronto
Ownership: 100%
Property Type: Mixed-use – Retail, office and
residential
Project Start / Anticipated Completion: TBD
Surfacing Value:
• There is significant value to be unlocked at the site
through the conversion of the current 133,000
square feet of retail into approximately 1.3 million
square feet of retail, office and residential uses Proposed
(1,400+ units) Demographics in 5km radius:
• Population: 450k
• The site currently contemplates the inclusion of a • Average household income: $164k+
community centre and public space
21UNPARALLELED GTA ASSETS
POTENTIAL RESIDENTIAL INTENSIFICATION
THE SHOPS OF SUMMERHILL
TORONTO, ON
Location: Located in the heart of the affluent
neighbourhood of Summerhill in a heritage site
near the Summerhill Subway station.
Intersection: Yonge St. and Summerhill
Property Type: Retail
Occupancy: 100%
Ownership: 100%
Tenants: Terroni, Harvest Wagon
Surfacing Value
Site acquired in 2015, and we are in the
Proposed
application stages to intensify the site with
residential uses.
Demographics in 5 km radius:
• Population: 714k
• Average household income: $129k+
22UNPARALLELED GTA ASSETS
MIXED-USE DEVELOPMENT
YORKVILLE, TORONTO, ON
Location: Transit oriented and in the heart of prestigious Yorkville, one of
Toronto’s most high-end shopping and residential areas.
Property Type: Mixed-use with potential for 0.5M sf of luxury
condominium and retail uses and up to 82 rental units
Ownership: 50/25/25 joint venture among RioCan, Metropia and Capital
Developments
Zoning Status: Zoning Bylaw Amendment submitted April 2018
Surfacing Value:
• As of February 2018 the partners have completed acquisitions of
adjacent properties substantially required for the intensification
project
• RioCan has agreed to purchase the partners’ interest in the retail
portion upon completion at a 6% cap rate and has the right of first
opportunity to acquire the residential rental units
Demographics in 5 km radius:
• Population: 683k
• Average household income: $123k+
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