RioCan Real Estate Investment Trust (“RioCan" or the "Trust”) (TSX: REI.UN) announced today its financial results for the three and six months ended June 30, 2022 (the "Second Quarter").

“Our strong results for the quarter reflect our capacity to generate quality income and growth in any environment,” said Jonathan Gitlin, President and CEO of RioCan. “Focused on our strategy to drive growth and create value over the long-term, we will continuously evolve our portfolio to meet ever-changing market demands with more essential and resilient tenants. The quality and positioning of our portfolio combined with our balance sheet strength will continue to drive performance. As we enter into the second half of the year, we remain confident in our growth trajectory and the ongoing demand for the quality real estate that defines RioCan.”

	Three months ended June 30									Six months ended June 30
(in millions, except where otherwise noted, and per unit values)			2022				2021				2022				2021
Financial Highlights
Net income		$	78.5			$	145.3			$	238.5			$	252.0
Weighted average Units outstanding - diluted (in thousands)			308,537				317,882				309,324				317,771
FFO 1		$	131.7			$	127.5			$	262.2			$	233.6
FFO per unit - diluted 1		$	0.43			$	0.40			$	0.85			$	0.73

FFO per Unit and Net Income

• FFO per unit of $0.43 for the Second Quarter was $0.03 per unit or 7% higher than the same period last year. Strong operational performance drove Same Property NOI1 growth to 6.2%, which contributed $0.03 to the increase in FFO per unit. Higher residential NOI, residential inventory gains and fee income combined contributed another $0.03 of incremental FFO per unit. These increases were partially offset by the reduction in FFO from assets sold and restructuring costs. The FFO Adjusted per unit, which excludes the impact of the restructuring costs, was $0.44 for the quarter. FFO Payout Ratio1 for the quarter of 57.3% was in-line with the long-term target range of 55% to 65%.
• Net income for the Second Quarter was $78.5 million, lower than the comparable period last year by $66.8 million, as the items described above were offset by a net loss related to the fair value of investment properties of $42.3 million compared to a $22.9 million fair value gain in the same period last year. The average portfolio capitalization rate increased 8 basis points, the impact of which was partially offset by higher stabilized NOI, as well as gains in certain properties under development as projects advanced.
• Our major market, necessity-based portfolio continued to prove resilient, generating strong operating results despite the broader macro-economic volatility during the quarter. Our FFO Payout Ratio of 57.3%, ample Liquidity1 of $1.4 billion, large Unencumbered Asset1 pool of $9.2 billion, which can be used to obtain secured financing, low proportion of floating rate debt at 8.0% of total debt and staggered debt maturities all contribute to the Trust's financial flexibility.
• For 2022, RioCan reaffirms FFO per unit growth guidance of 5% to 7%. Development Spend for 2022 is now estimated to be in the $425 million to $475 million range, down from $475 million to $525 million in the previous guidance due to minor timing shifts.

1.	A non-GAAP measurement. For definitions, reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release.

Operation Highlights

	Three months ended June 30									Six months ended June 30
		2022				2021				2022				2021
Operation Highlights (i)
Occupancy - committed (ii)		97.2	%			96.1	%			97.2	%			96.1	%
Blended leasing spread		10.5	%			5.4	%			9.8	%			6.5	%
New leasing spread		6.8	%			9.2	%			11.1	%			11.8	%
Renewal leasing spread		11.2	%			4.2	%			9.3	%			4.5	%

(i)	Includes commercial portfolio only.
(ii)	Information presented as at respective periods then ended.

• Same Property NOI grew by 6.2% in the Second Quarter when compared to the same period last year and was driven by occupancy gains, rent growth and a lower pandemic-related provision partially offset by certain 2021 favourable items which did not recur in 2022. Adjusted Same Property NOI1 growth was 3.0% after adjusting predominantly for the impact of the pandemic-related provision and legal and property tax settlements.
• Committed occupancy improved for the sixth consecutive quarter and returned to the pre-pandemic level of 97.2%. Increases of 110 basis points when compared to the same period last year and 20 basis points when compared to Q1 2022, were driven by improved retail committed occupancy, which currently stands at 97.6%.
• New and renewed leases generated a blended leasing spread of 10.5% and the volume of 1.5 million square feet (at 100% ownership interest) was up 9.4% over the same period last year. Renewed leases of 1.1 million square feet representing a 93.3% retention ratio were completed at leasing spreads of 11.2%. New leasing of 0.4 million square feet was completed at new leasing spreads of 6.8%.
• Our strong and stable tenants, which are largely comprised of national, necessity-based retail tenants represent 85.7% of our portfolio measured as a percentage of annualized net rent.
• Leasing momentum at The Well™ continued into Q2 2022 and accounted for the majority of new property under development leases with retail leasing at 67% completed or 81% including leases nearing finalization and in advanced negotiations. For the office component, only 30,000 of the 1.2 million square feet (at 100% ownership interest) remains to be leased. Achieved average rent per square foot has exceeded pro forma.
• Given recent inflationary pressures, the resulting increased asset replacement costs are expected to limit an already tight supply of quality retail assets and exacerbate a supply/demand imbalance. RioCan's well-positioned assets will benefit from demand shifting in their favour, which is expected to lead to positive tension in lease negotiations and ultimately rising rents.

1.	A non-GAAP measurement. For definitions, reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release.

RioCan Living Update

Residential Rental Buildings in Operation		Number of total units			Date oflease launch			% of leased units as ofAugust 8, 2022				% of leased units as ofMay 9, 2022
Stabilized(i)		996			December 2018 toDecember 2020			96.7	%			96.3	%
In lease-up
Pivot (Yonge Sheppard Centre, Toronto)		361			October 2020			97.0	%			91.4	%
Litho. (Toronto)		210			July 2021			90.0	%			75.7	%
Latitude (Ottawa)		209			July 2021			87.5	%			62.5	%
Strada (Toronto)		61			November 2021			98.4	%			62.3	%
Luma (Ottawa) (ii)		168			March 2022			36.3	%			11.9	%
Rhythm (Ottawa) (iii)		214			June 2022			3.7	%			—	%

(i)	A property is considered to have reached stabilization upon the earlier of (i) achieving 95% occupancy or (ii) 24 months after first occupancy as of the quarter end reporting date. Stabilized properties include eCentral, Frontier, Brio, and Market Phase One which was acquired on February 8, 2022. Units shown in the table above are at 100% ownership interest.
(ii)	Luma was substantially complete as of August 8, 2022 and had some early move-ins during Q2 2022.
(iii)	Substantial completion of Rhythm is expected in Q4 2022. Pre-leasing commenced in Q2 2022.

• As of August 8, 2022, the RioCan Living™ residential rental portfolio is comprised of 2,005 purpose-built completed units (at 100% ownership interest) across nine buildings located in Toronto, Montreal, Ottawa and Calgary. In the Second Quarter, the leasing velocity was very strong across stabilized buildings and buildings in lease-up. An additional 214 units at Rhythm™ are scheduled to be completed in Q4 2022. The 592 units at FourFifty The Well™ will be completed in phases with first move-ins scheduled to commence in late-2023 and ongoing lease-up is expected to occur through to early 2024.
• RioCan Living also oversees condominium and townhouse developments that generated residential inventory gains of $5.1 million in the Second Quarter.
• As of August 8, 2022, 2,627 condominium and townhouse units (at 100% ownership interest) are either under construction or in the process of interim closing and an additional 451 units are in pre-sale. Of RioCan’s five active construction projects, 95% of the total units have been sold while 98% of our pro-forma revenues have been achieved.

Development Highlights

	Three months ended June 30									Six months ended June 30
(in millions except square feet)			2022				2021				2022				2021
Development Highlights
Development Completions - sq. ft. in thousands			69.0				30.0				214.0				60.0
Development Spending (i)1		$	139.6			$	118.2			$	231.5			$	205.9
Under Active Development - sq. ft. in thousands (ii) (iii)			2,320.0				2,419.0				2,320.0				2,419.0

(i)	Effective Q1 2022, the definition of total Development Spending was revised to include RioCan's share of Development Spending from equity-accounted joint ventures, accordingly, the comparative period has been restated.
(ii)	Information presented as at the respective periods then ended and includes properties under development and residential inventory.
(iii)	As at June 30, 2022, excludes a total of 0.5 million square feet of completed phases and includes 0.8 million square feet of residential inventory (June 30, 2021 - 1.4 million square feet and 0.5 million square feet, respectively).

• RioCan's in-house development team delivered 0.2 million square feet of completions during the first half of 2022. The total embedded development potential within the Trust's portfolio is 42.4 million square feet, of which 23.7 million square feet are currently zoned or have submitted applications.
• Our development pipeline includes 16.0 million square feet of permitted projects, of which 2.3 million square feet is currently under development. Construction at our largest development project, The Well, continued to progress during the Second Quarter. Approximately 867,000 square feet (at 100% ownership interest), is undergoing tenant fixturing and three tenants are now operating in their respective units. Cash rents remain on track to commence in the second half of 2022.
• The Trust's Development Spending target for 2022 is estimated to be in the $425 million to $475 million range, excluding acquisitions for purposes of development. The decrease in the estimated annual development spending range for 2022 from that previously reported is mainly a result of minor construction delays caused by a series of work stoppages by various trades. In 2022, the Trust expects to deliver projects with costs of $625 million to $675 million, the largest amount of annual cost transfers since the inception of this development program.

1.	A non-GAAP measurement. For definitions, reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release.

Balance Sheet Strength

(in millions except percentages)As at		June 30, 2022				December 31, 2021
Balance Sheet Strength Highlights
Total assets			$	15,474			$	15,177
Total debt			$	6,878			$	6,611
Liquidity (i) 1			$	1,440			$	1,010
Adjusted Debt to Adjusted EBITDA (i) 1			9.41x				9.59x
Total Adjusted Debt to Total Adjusted Assets (i) 1				45.0%				43.9%
Ratio of Unsecured Debt and Secured Debt (i) 1			58.7% / 41.3%				59.4% / 40.6%
Unencumbered Assets (i) 1			$	9,205			$	9,392
Unencumbered Assets to Unsecured Debt (i) 1				219%				231%

(i)   At RioCan's proportionate share.

• The Trust had $1.4 billion of Liquidity in the form of $1.0 billion undrawn revolving lines of credit, $0.4 billion undrawn construction lines and other bank loans and $0.1 billion cash and cash equivalents.
• RioCan’s unencumbered asset pool was $9.2 billion, which can be used to obtain secured financing to provide additional liquidity, generated 62.6% of Annual Normalized NOI1 and provided 2.19x coverage over Unsecured Debt1.
• Adjusted Debt to Adjusted EBITDA1 was 9.41x on a proportionate share basis, as at June 30, 2022, compared to 9.59x as at the end of 2021. The decrease was primarily due to higher Adjusted EBITDA partially offset by higher average Total Adjusted Debt balances.
• The Trust's Total Adjusted Debt to Total Adjusted Assets at RioCan's proportionate share increased from December 31, 2021 mainly due to higher Total Adjusted Debt resulting from the timing of debt draws for capital deployment activities.

1.	A non-GAAP measurement. For definitions, reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release.

Capital Management Update

• The Trust has $250.0 million of bond forward contracts remaining as at June 30, 2022 with an effective 7-year government of Canada bond yield of 1.46% to hedge its exposure to changes in the risk-free interest rates on anticipated refinancings.
• On June 9, 2022, Standard and Poor's revised its Outlook on RioCan from Negative to Stable and affirmed its Issuer Credit Rating of BBB. The Stable Outlook reflects improvements in the Trust’s operating performance and credit-protection measures over the past year, and expected improvement in credit metrics from development completions supported by sound operating performance despite macro-economic headwinds.
• On April 18, 2022, RioCan issued $250.0 million, Series AF senior unsecured debentures with a 7-year term. Inclusive of the benefit of bond forward hedges, the all-in interest rate of the Series AF debentures is 3.829%. This issuance provides additional liquidity to RioCan to support its strategy, pursue opportunities and manage potential risks.
• Pursuant to its current Normal Course Issuer Bid, the Trust acquired and cancelled 6.0 million units at a weighted average purchase price of $21.52 per unit, for a total cost of $128.8 million during the Second Quarter. This is in additional to the 8.0 million units repurchased in Q4 2021.

Investing and Capital Recycling

• As of August 8, 2022, closed, firm or conditional dispositions totaled $375.8 million at a weighted average capitalization rate of 6.7%, including $123.0 million of completed dispositions during the first half of 2022. These dispositions include several non-core and secondary market assets, which improves our portfolio quality while bringing in capital that can be recycled into more productive uses.
• Total Acquisitions1 including land assemblies and properties acquired within equity-accounted joint ventures were $187.8 million on a year-to-date basis.

1.	A non-GAAP measurement. For definitions, reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release.

Conference Call and Webcast

Interested parties are invited to participate in a conference call with management on Tuesday, August 9, 2022 at 10:00 a.m. (ET). Participants will be required to identify themselves and the organization on whose behalf they are participating.

To access the conference call, click on the following link to register at least ten minutes prior to the scheduled start of the call: https://ige.netroadshow.com/registration/q4inc/11247/riocan-real-estate-investment-trust-second-quarter-earnings-conference-call-and-webcast/. Participants who pre-register at any time prior to the call will receive an email with dial-in credentials including login passcode and PIN to gain immediate access to the live call. Those that are unable to pre-register may dial-in for operator assistance by calling 1-833-950-0062 and entering the access code: 185791.

For those unable to participate in the live mode, a replay will be available at 1-866-813-9403 with access code 294296.

To access the simultaneous webcast, visit RioCan’s website at http://investor.riocan.com/investor-relations/events-and-presentations/ and click on the link for the webcast.

About RioCan

RioCan is one of Canada’s largest real estate investment trusts. RioCan owns, manages and develops retail-focused, increasingly mixed-use properties located in prime, high-density transit-oriented areas where Canadians want to shop, live and work. As at June 30, 2022, our portfolio is comprised of 202 properties with an aggregate net leasable area of approximately 35.9 million square feet (at RioCan's interest) including office, residential rental and 12 development properties. To learn more about us, please visit www.riocan.com.

Basis of Presentation and Non-GAAP Measures

All figures included in this News Release are expressed in Canadian dollars unless otherwise noted. RioCan’s unaudited interim condensed consolidated financial statements ("Condensed Consolidated Financial Statements") are prepared in accordance with International Financial Reporting Standards (IFRS). Financial information included within this News Release does not contain all disclosures required by IFRS, and accordingly should be read in conjunction with the Trust's Condensed Consolidated Financial Statements and MD&A for the three and six months ended June 30, 2022, which are available on RioCan's website at www.riocan.com and on SEDAR at www.sedar.com.

Consistent with RioCan’s management framework, management uses certain financial measures to assess RioCan’s financial performance, which are not in accordance with generally accepted accounting principles (GAAP) under IFRS. Funds From Operations (“FFO”), FFO per unit, FFO Adjusted per unit, Net Operating Income ("NOI"), Same Property NOI, Development Spending, Total Acquisitions, Liquidity, Adjusted Debt to Adjusted EBITDA, Total Adjusted Debt to Total Adjusted Assets, RioCan's Proportionate Share, Ratio of Unsecured Debt to Total Contractual Debt, Ratio of Secured Debt to Total Contractual Debt, Unencumbered Assets to Unsecured Debt and Percentage of Normalized NOI Generated from Unencumbered Assets, as well as other measures that may be discussed elsewhere in this News Release, do not have a standardized definition prescribed by IFRS and are, therefore, unlikely to be comparable to similar measures presented by other reporting issuers. RioCan supplements its IFRS measures with these Non-GAAP measures to aid in assessing the Trust’s underlying performance and reports these additional measures so that investors may do the same. Non-GAAP measures should not be considered as alternatives to net income or comparable metrics determined in accordance with IFRS as indicators of RioCan’s performance, liquidity, cash flow, and profitability. For full definitions of these measures, please refer to the "Non-GAAP Measures” section in RioCan’s MD&A for three and six months ended June 30, 2022.

The reconciliations for non-GAAP measures included in this News Release are outlined as follows:

RioCan's Proportionate Share

The following table reconciles the consolidated balance sheet from IFRS to RioCan's proportionate share basis as at June 30, 2022 and December 31, 2021:

As at	June 30, 2022							December 31, 2021
(in thousands)	IFRS basis		Equity-accounted investments			RioCan's proportionate share		IFRS basis		Equity-accounted investments			RioCan's proportionate share
Assets
Investment properties	$	14,113,109	$	409,394		$	14,522,503	$	14,021,338	$	409,794		$	14,431,132
Equity-accounted investments		368,277		(368,277	)		—		327,335		(327,335	)		—
Mortgages and loans receivable		242,127		—			242,127		237,790		—			237,790
Residential inventory		272,520		202,182			474,702		217,043		121,291			338,334
Assets held for sale		96,800		—			96,800		47,240		—			47,240
Receivables and other assets		309,025		36,150			345,175		248,959		35,367			284,326
Cash and cash equivalents		71,864		8,101			79,965		77,758		9,113			86,871
Total assets	$	15,473,722	$	287,550		$	15,761,272	$	15,177,463	$	248,230		$	15,425,693
Liabilities
Debentures payable	$	3,240,688	$	—		$	3,240,688	$	2,990,692	$	—		$	2,990,692
Mortgages payable		2,387,532		166,745			2,554,277		2,334,016		166,368			2,500,384
Lines of credit and other bank loans		1,249,496		93,079			1,342,575		1,285,910		48,049			1,333,959
Accounts payable and other liabilities		649,791		27,726			677,517		655,501		33,813			689,314
Total liabilities	$	7,527,507	$	287,550		$	7,815,057	$	7,266,119	$	248,230		$	7,514,349
Equity
Unitholders’ equity		7,946,215		—			7,946,215		7,911,344		—			7,911,344
Total liabilities and equity	$	15,473,722	$	287,550		$	15,761,272	$	15,177,463	$	248,230		$	15,425,693

The following tables reconcile the consolidated statements of income from IFRS to RioCan's proportionate share basis for the three and six months ended June 30, 2022 and 2021:

	Three months ended June 30, 2022									Three months ended June 30, 2021
(in thousands)	IFRS basis			Equity-accounted investments			RioCan's proportionate share			IFRS basis			Equity-accounted investments			RioCan's proportionate share
Revenue
Rental revenue	$	267,302		$	7,363		$	274,665		$	265,846		$	6,807		$	272,653
Residential inventory sales		35,005			—			35,005			28,107			1,860			29,967
Property management and other service fees		6,112			—			6,112			3,731			—			3,731
		308,419			7,363			315,782			297,684			8,667			306,351
Operating costs
Rental operating costs
Recoverable under tenant leases		92,129			661			92,790			89,127			498			89,625
Non-recoverable costs		5,521			575			6,096			10,693			723			11,416
Residential inventory cost of sales		29,857			—			29,857			26,059			649			26,708
		127,507			1,236			128,743			125,879			1,870			127,749
Operating income		180,912			6,127			187,039			171,805			6,797			178,602
Other income (loss)
Interest income		4,885			574			5,459			3,325			562			3,887
Income from equity-accounted investments		1,165			(1,165)			—			4,971			(4,971)			—
Fair value (loss) gain on investment properties, net		(42,270)			(3,476)			(45,746)			22,929			(695)			22,234
Investment and other income (loss)		(1,379)			(149)			(1,528)			1,513			197			1,710
		(37,599)			(4,216)			(41,815)			32,738			(4,907)			27,831
Other expenses
Interest costs, net		43,659			1,807			45,466			42,838			1,829			44,667
General and administrative		16,400			16			16,416			11,699			17			11,716
Internal leasing costs		2,825			—			2,825			2,767			—			2,767
Transaction and other costs		1,517			88			1,605			2,272			44			2,316
		64,401			1,911			66,312			59,576			1,890			61,466
Income before income taxes	$	78,912		$	—		$	78,912		$	144,967		$	—		$	144,967
Current income tax expense (recovery)		452			—			452			(307)			—			(307)
Net income	$	78,460		$	—		$	78,460		$	145,274		$	—		$	145,274

	Six months ended June 30, 2022									Six months ended June 30, 2021
(in thousands)	IFRS basis			Equity-accounted investments			RioCan's proportionate share			IFRS basis			Equity-accounted investments			RioCan's proportionate share
Revenue
Rental revenue	$	539,433		$	14,301		$	553,734		$	539,470		$	12,783		$	552,253
Residential inventory sales		50,974			936			51,910			28,107			2,701			30,808
Property management and other service fees		11,993			—			11,993			6,906			—			6,906
		602,400			15,237			617,637			574,483			15,484			589,967
Operating costs
Rental operating costs
Recoverable under tenant leases		192,251			1,284			193,535			186,414			947			187,361
Non-recoverable costs		11,577			1,163			12,740			23,103			1,364			24,467
Residential inventory cost of sales		43,793			422			44,215			26,059			1,011			27,070
		247,621			2,869			250,490			235,576			3,322			238,898
Operating income		354,779			12,368			367,147			338,907			12,162			351,069
Other income (loss)
Interest income		8,946			1,144			10,090			6,254			1,030			7,284
Income from equity-accounted investments		5,255			(5,255)			—			8,600			(8,600)			—
Fair value (loss) gain on investment properties, net		(6,838)			(4,266)			(11,104)			31,795			(1,207)			30,588
Investment and other income (loss)		(1,563)			(207)			(1,770)			1,734			64			1,798
		5,800			(8,584)			(2,784)			48,383			(8,713)			39,670
Other expenses
Interest costs, net		85,425			3,648			89,073			86,762			3,371			90,133
General and administrative		27,863			31			27,894			29,530			31			29,561
Internal leasing costs		5,810			—			5,810			5,619			—			5,619
Transaction and other costs		2,692			105			2,797			6,828			47			6,875
Debt prepayment costs, net		—			—			—			7,018			—			7,018
		121,790			3,784			125,574			135,757			3,449			139,206
Income before income taxes	$	238,789		$	—		$	238,789		$	251,533		$	—		$	251,533
Current income tax recovery		271			—			271			(470)			—			(470)
Net income	$	238,518		$	—		$	238,518		$	252,003		$	—		$	252,003

NOI and Same Property NOI

The following table reconciles operating income to NOI and Same Property NOI to NOI for the three and six months ended June 30, 2022 and 2021:

(thousands of dollars, except where otherwise noted)	Three months ended June 30						Six months ended June 30
		2022			2021			2022			2021
Operating Income	$	180,912		$	171,805		$	354,779		$	338,907
Adjusted for the following:
Property management and other service fees		(6,112)			(3,731)			(11,993)			(6,906)
Residential inventory gains		(5,148)			(2,048)			(7,181)			(2,048)
Operational lease revenue and (expenses) from ROU assets		1,386			1,221			2,731			2,326
NOI	$	171,038		$	167,247		$	338,336		$	332,279

	Three months ended June 30				Six months ended June 30
(thousands of dollars)		2022		2021		2022		2021
Same Property NOI	$	157,609	$	148,470	$	311,410	$	296,480
NOI from income producing properties:
Acquired (i)		133		—		261		49
Disposed (i)		229		7,216		2,773		16,127
		362		7,216		3,034		16,176
NOI from completed properties under development		4,056		1,922		8,245		3,726
NOI from properties under de-leasing under development		2,579		3,258		5,070		5,417
Lease cancellation fees		2,671		4,196		3,554		5,944
Straight-line rent adjustment		359		1,648		1,274		3,334
NOI from residential rental		3,402		537		5,749		1,202
NOI	$	171,038	$	167,247	$	338,336	$	332,279

(i)   Includes properties acquired or disposed during the periods being compared.

Same Property NOI including completed PUD

	Three months ended June 30						Six months ended June 30
(thousands of dollars)		2022		2021	% change			2022		2021	% change
Same Property NOI	$	157,609	$	148,470	6.2%		$	311,410	$	296,480	5.0%
Add:
NOI from completed properties under development		4,056		1,922				8,245		3,726
Same Property NOI including completed PUD	$	161,665	$	150,392	7.5%		$	319,655	$	300,206	6.5%

Adjusted Same Property NOI 

	Three months ended June 30								Six months ended June 30
(thousands of dollars)		2022			2021		% change			2022			2021		% change
Same Property NOI	$	157,609		$	148,470		6.2%		$	311,410		$	296,480		5.0%
Add (exclude):
Same property pandemic-related provision (recovery)		(662)			4,853					(662)			11,126
Legal and CAM/property tax settlements		(749)			(1,630)					(1,349)			(6,230)
Adjusted Same Property NOI	$	156,198		$	151,693		3.0%		$	309,399		$	301,376		2.7%

FFO

The following table reconciles net income attributable to Unitholders to FFO for the three and six months ended June 30, 2022 and 2021:

	Three months ended June 30						Six months ended June 30
(thousands of dollars, except where otherwise noted)		2022			2021			2022			2021
Net income attributable to Unitholders	$	78,460		$	145,274		$	238,518		$	252,003
Add back/(Deduct):
Fair value losses (gains), net		42,270			(22,929)			6,838			(31,795)
Fair value losses included in equity-accounted investments		3,476			695			4,266			1,207
Internal leasing costs		2,825			2,767			5,810			5,619
Transaction (gains) losses on investment properties, net (i)		353			(888)			736			(733)
Transaction costs on sale of investment properties		713			1,678			1,314			5,315
Change in unrealized fair value on marketable securities		1,401			—			1,401			—
Current income recovery		452			(307)			271			(470)
Operational lease revenue from ROU assets		985			824			1,930			1,587
Operational lease expenses from ROU assets in equity-accounted investments		(11)			(11)			(23)			(19)
Capitalized interest on equity-accounted investments (ii)		733			414			1,169			838
FFO	$	131,657		$	127,517		$	262,230		$	233,552
Add back:
Debt prepayment costs, net		—			—			—			7,018
One-time compensation costs		—			211			—			6,057
Restructuring costs		3,170			—			3,780			—
FFO Adjusted	$	134,827		$	127,728		$	266,010		$	246,627
FFO per unit - basic	$	0.43		$	0.40		$	0.85		$	0.73
FFO per unit - diluted	$	0.43		$	0.40		$	0.85		$	0.73
FFO Adjusted per unit - diluted	$	0.44		$	0.40		$	0.86		$	0.78
Weighted average number of Units - basic (in thousands)		308,312			317,764			309,070			317,761
Weighted average number of Units - diluted (in thousands)		308,537			317,882			309,324			317,771
FFO for last 4 quarters							$	535,661		$	486,461
Distributions paid for last 4 quarters							$	306,986		$	393,998
FFO Payout Ratio								57.3%			81.0%

(i)

Represents net transaction gains or losses connected to certain investment properties during the period.

(ii)

This amount represents the interest capitalized to RioCan's equity-accounted investment in WhiteCastle New Urban Fund, LP, WhiteCastle New Urban Fund 2, LP, WhiteCastle New Urban Fund 3, LP, WhiteCastle New Urban Fund 4, LP, WhiteCastle New Urban Fund 5, LP, RioCan-Fieldgate JV, RC (Queensway) LP, RC (Leaside) LP- Class B and PR Bloor Street LP. This amount is not capitalized to properties under development under IFRS, but is allowed as an adjustment under REALPAC’s definition of FFO.

Development Spending

Total Development Spending for the three and six months ended June 30, 2022 and 2021 are as follows:

	Three months ended June 30				Six months ended June 30
(thousands of dollars)		2022		2021		2022		2021
Development expenditures on balance sheet:
Properties under development	$	96,106	$	93,282	$	157,271	$	167,528
Residential inventory		35,363		16,792		63,708		30,121
RioCan's share of Development Spending from equity-accounted joint ventures		8,136		8,135		10,510		8,265
Total Development Spending (i)	$	139,605	$	118,209	$	231,489	$	205,914

(i)	Beginning in Q1 2022, the definition of total Development Spending was revised to include RioCan's share of Development Spending from equity-accounted joint ventures accordingly, the comparative period has been restated.

Total Acquisitions

Total Acquisitions for the three and six months ended June 30, 2022 and 2021 are as follows:

	Three months ended June 30				Six months ended June 30
(thousands of dollars)		2022		2021		2022		2021
Income producing properties	$	—	$	—	$	89,948	$	11,482
Properties under development		—		5,563		11,946		5,563
Residential inventory		—		—		19,440		—
RioCan's share of acquisitions from equity-accounted joint ventures		—		—		66,497		—
Total Acquisitions	$	—	$	5,563	$	187,831	$	17,045

Total Adjusted Debt and Total Contractual Debt

The following tables reconcile total debt to Total Adjusted Debt, total assets to Total Adjusted Assets, and total debt to Total Contractual Debt as at June 30, 2022 and December 31, 2021:

As at	June 30, 2022								December 31, 2021
(thousands of dollars, except where otherwise noted)	IFRS basis			Equity-accounted investments		RioCan's proportionate share			IFRS basis			Equity-accounted investments		RioCan's proportionate share
Debentures payable	$	3,240,688		$	—	$	3,240,688		$	2,990,692		$	—	$	2,990,692
Mortgages payable		2,387,532			166,745		2,554,277			2,334,016			166,368		2,500,384
Lines of credit and other bank loans		1,249,496			93,079		1,342,575			1,285,910			48,049		1,333,959
Total debt	$	6,877,716		$	259,824	$	7,137,540		$	6,610,618		$	214,417	$	6,825,035
Cash and cash equivalents		71,864			8,101		79,965			77,758			9,113		86,871
Total Adjusted Debt	$	6,805,852		$	251,723	$	7,057,575		$	6,532,860		$	205,304	$	6,738,164
Total assets	$	15,473,722		$	287,550	$	15,761,272		$	15,177,463		$	248,230	$	15,425,693
Cash and cash equivalents		71,864			8,101		79,965			77,758			9,113		86,871
Total Adjusted Assets	$	15,401,858		$	279,449	$	15,681,307		$	15,099,705		$	239,117	$	15,338,822
Total Adjusted Debt to Total Adjusted Assets		44.2%					45.0%			43.3%					43.9%

As at	June 30, 2022									December 31, 2021
(thousands of dollars)	IFRS basis			Equity-accounted investments			RioCan's proportionate share			IFRS basis			Equity-accounted investments			RioCan's proportionate share
Total debt	$	6,877,716		$	259,824		$	7,137,540		$	6,610,618		$	214,417		$	6,825,035
Less:
Unamortized debt financing costs, premiums and discounts on origination and debt assumed, and modifications		(16,819)			(595)			(17,414)			(16,414)			(386)			(16,800)
Total Contractual Debt	$	6,894,535		$	260,419		$	7,154,954		$	6,627,032		$	214,803		$	6,841,835

Liquidity

As at June 30, 2022, RioCan had approximately $1.4 billion of Liquidity as summarized in the following table:

As at	June 30, 2022								December 31, 2021
(thousands of dollars, except where otherwise noted)	IFRS basis			Equity-accounted investments		RioCan's proportionate share			IFRS basis			Equity-accounted investments		RioCan's proportionate share
Undrawn revolving unsecured operating line of credit	$	996,891		$	—	$	996,891		$	634,080		$	—	$	634,080
Undrawn construction lines and other bank loans		311,338			51,912		363,250			241,883			47,641		289,524
Cash and cash equivalents		71,864			8,101		79,965			77,758			9,113		86,871
Liquidity	$	1,380,093		$	60,013	$	1,440,106		$	953,721		$	56,754	$	1,010,475
Total Contractual Debt	$	6,894,535		$	260,419	$	7,154,954		$	6,627,032		$	214,803	$	6,841,835
Liquidity as percentage of Total Contractual Debt		20.0%					20.1%			14.4%					14.8%

Unsecured Debt and Secured Debt

The following table reconciles total Unsecured Debt and Secured Debt to Total Contractual Debt as at June 30, 2022 and December 31, 2021:

As at	June 30, 2022								December 31, 2021
(thousands of dollars, except where otherwise noted)	IFRS basis			Equity-accounted investments		RioCan's proportionate share			IFRS basis			Equity-accounted investments		RioCan's proportionate share
Total Unsecured Debt	$	4,203,109		$	—	$	4,203,109		$	4,065,920		$	—	$	4,065,920
Total Secured Debt		2,691,426			260,419		2,951,845			2,561,112			214,803		2,775,915
Total Contractual Debt	$	6,894,535		$	260,419	$	7,154,954		$	6,627,032		$	214,803	$	6,841,835
Percentage of Total Contractual Debt:
Unsecured Debt		61.0%					58.7%			61.4%					59.4%
Secured Debt		39.0%					41.3%			38.6%					40.6%

Adjusted EBITDA

The following table reconciles consolidated net income attributable to Unitholders to Adjusted EBITDA:

	12 months ended
As at	June 30, 2022									December 31, 2021
(thousands of dollars)	IFRS basis			Equity-accounted investments			RioCan's proportionate share			IFRS basis			Equity-accounted investments			RioCan's proportionate share
Net income attributable to Unitholders	$	584,904		$	—		$	584,904		$	598,389		$	—		$	598,389
Add (deduct) the following items:
Income tax expense (recovery):
Current		682			—			682			(59)			—			(59)
Fair value losses (gains) on investment properties, net		(85,419)			4,172			(81,247)			(124,052)			1,113			(122,939)
Change in unrealized fair value on marketable securities (i)		1,401			—			1,401			—			—			—
Internal leasing costs		11,998			—			11,998			11,807			—			11,807
Non-cash unit-based compensation expense		8,254			—			8,254			12,546			—			12,546
Interest costs, net		170,184			7,303			177,487			171,521			7,026			178,547
Debt prepayment costs, net		3,896			—			3,896			10,914			—			10,914
One-time cash compensation costs		—			—			—			1,932			—			1,932
Restructuring costs		3,779			—			3,779			—			—			—
Depreciation and amortization		3,897			—			3,897			4,022			—			4,022
Transaction losses on the sale of investment properties, net (ii)		1,871			—			1,871			402			—			402
Transaction costs on investment properties		10,360			30			10,390			14,363			28			14,391
Operational lease revenue and expenses from ROU assets		3,651			(46)			3,605			3,308			(42)			3,266
Adjusted EBITDA	$	719,458		$	11,459		$	730,917		$	705,093		$	8,125		$	713,218

(i)

The fair value gains and losses on marketable securities may include both the change in unrealized fair value and realized gains and losses on the sale of marketable securities. By adding back the change in unrealized fair value on marketable securities, RioCan effectively continues to include realized gains and losses on the sale of marketable securities in Adjusted EBITDA and excludes unrealized fair value gains and losses on marketable securities in Adjusted EBITDA.

(ii)

Includes transaction gains and losses realized on the disposition of investment properties.

Adjusted Debt to Adjusted EBITDA Ratio

Adjusted Debt to Adjusted EBITDA is calculated as follows:

	12 months ended
As at	June 30, 2022									December 31, 2021
(thousands of dollars)	IFRS basis			Equity-accounted investments			RioCan's proportionate share			IFRS basis			Equity-accounted investments			RioCan's proportionate share
Adjusted Debt to Adjusted EBITDA
Average total debt outstanding	$	6,740,402		$	228,546		$	6,968,948		$	6,773,147		$	192,804		$	6,965,951
Less: average cash and cash equivalents		(87,182)			(7,288)			(94,470)			(119,400)			(5,639)			(125,039)
Average Total Adjusted Debt	$	6,653,220		$	221,258		$	6,874,478		$	6,653,747		$	187,165		$	6,840,912
Adjusted EBITDA	$	719,458		$	11,459		$	730,917		$	705,093		$	8,125		$	713,218
Adjusted Debt to Adjusted EBITDA		9.25						9.41			9.44						9.59

Unencumbered Assets

The tables below summarize RioCan's Unencumbered Assets to Unsecured Debt and Percentage of Normalized NOI Generated from Unencumbered Assets as at June 30, 2022 and December 31, 2021:

As at		June 30, 2022								December 31, 2021
(thousands of dollars, except where otherwise noted)	TargetedRatios	IFRS basis			Equity-accounted investments		RioCan's proportionate share			IFRS basis			Equity-accounted investments		RioCan's proportionate share
Unencumbered Assets		$	9,146,773		$	58,542	$	9,205,315		$	9,332,833		$	59,433	$	9,392,266
Total Unsecured Debt		$	4,203,109		$	—	$	4,203,109		$	4,065,920		$	—	$	4,065,920
Unencumbered Assets to Unsecured Debt	> 200%		218%					219%			230%					231%
Annual Normalized NOI - total portfolio (i)		$	662,052		$	23,700	$	685,752		$	649,208		$	22,688	$	671,896
Annual Normalized NOI - Unencumbered Assets (i)		$	426,044		$	3,444	$	429,488		$	432,820		$	3,440	$	436,260
Percentage of Normalized NOI Generated from Unencumbered Assets	> 50.0%		64.4%					62.6%			66.7%					64.9%

(i)  Annual Normalized NOI are reconciled in the table below.

	Three months ended June 30, 2022								Three months ended December 31, 2021
(thousands of dollars, except where otherwise noted)	IFRS basis			Equity-accounted investments		RioCan's proportionate share			IFRS basis			Equity-accounted investments		RioCan's proportionate share
NOI (i)	$	171,038		$	5,925	$	176,963		$	165,798		$	5,672	$	171,470
Adjust the following:
Miscellaneous revenue		(960)			—		(960)			(540)			—		(540)
Percentage rent		(1,894)			—		(1,894)			(2,562)			—		(2,562)
Lease cancellation fees		(2,671)			—		(2,671)			(394)			—		(394)
Normalized NOI - total portfolio	$	165,513		$	5,925	$	171,438		$	162,302		$	5,672	$	167,974
Annual Normalized NOI - total portfolio(ii)	$	662,052		$	23,700	$	685,752		$	649,208		$	22,688	$	671,896
NOI from unencumbered assets	$	110,819		$	861	$	111,680		$	110,517		$	860	$	111,377
Adjust the following:
Miscellaneous revenue- Unencumbered Assets		(385)			—		(385)			(253)			—		(253)
Percentage rent- Unencumbered Assets		(1,261)			—		(1,261)			(1,852)			—		(1,852)
Lease cancellation fees- Unencumbered Assets		(2,662)			—		(2,662)			(207)			—		(207)
Normalized NOI - Unencumbered Assets	$	106,511		$	861	$	107,372		$	108,205		$	860	$	109,065
Annual Normalized NOI - Unencumbered Assets (ii)	$	426,044		$	3,444	$	429,488		$	432,820		$	3,440	$	436,260

(i)	Refer to the NOI and Same Property NOI table of this section for reconciliation from NOI to operating income.
(ii)	Calculated by multiplying Normalized NOI by a factor of 4.

Forward-Looking InformationThis News Release contains forward-looking information within the meaning of applicable Canadian securities laws. This information reflects RioCan’s objectives, our strategies to achieve those objectives, as well as statements with respect to management’s beliefs, estimates and intentions concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking information 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 information reflects management’s current beliefs and is based on information currently available to management. All forward-looking information in this News Release is qualified by these cautionary statements. Forward-looking information is not a guarantee of future events or performance and, by its nature, is based on RioCan’s current estimates and assumptions, which are subject to numerous risks and uncertainties, including those described in the “Risks and Uncertainties” section in RioCan's MD&A for the three and six months ended June 30, 2022 and in our most recent Annual Information Form, which could cause actual events or results to differ materially from the forward-looking information contained in this News Release. General economic conditions, including interest rate fluctuations, may also have an effect on RioCan’s results of operations. 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 gradual recovery and growth of the retail environment and the general economy over 2022; a rising interest rate environment; a continuing trend toward land use intensification at reasonable costs and development yields, including residential development in urban markets; the Trust’s ability to redevelop, sell or enter into partnerships with respect to the future incremental density it has identified in its portfolio, access to equity and debt capital markets to fund, at acceptable costs, future capital requirements and to enable our refinancing of debts as they mature; the availability of investment opportunities for growth in Canada; the timing and ability of RioCan to sell certain properties; the valuations to be realized on property sales relative to current IFRS values; and the Trust's ability to utilize the capital gain refund mechanism. 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 this forward-looking information.

The forward-looking statements contained in this News Release are made as of the date hereof, and should not be relied upon as representing RioCan’s views as of any date subsequent to the date of this News Release. Management undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise.

Contact Information
RioCan Real Estate Investment Trust 
Dennis Blasutti 
Chief Financial Officer
416-866-3033 | www.riocan.com