Strong Leasing Performance Drives Growth in Q2 2026
RioCan Real Estate Investment Trust delivered a solid second-quarter performance in 2026, with a 23.1% blended leasing spread. This figure was supported by new leasing spreads of 40.8% and renewal leasing spreads of 20.7%. The Trust reported that average net rent per square foot for new leases was $37.73, significantly higher than the $23.58 average net rent per occupied square foot at the end of the quarter. This reflects RioCan’s ability to take advantage of mark-to-market opportunities. During the quarter, the Trust completed 1.0 million square feet of leasing activity, with 0.9 million square feet of that total attributed to renewals.
The Trust’s Commercial Same Property Net Operating Income (NOI) increased by 4.3% in the second quarter, a result of the strength of its core retail portfolio and the effectiveness of its leasing strategy. Core Funds From Operations (FFO) per unit rose to $0.40, an increase of 5.3% compared to the same period in 2025. This growth was driven by higher Commercial NOI, including the impact of unit repurchases.
In the first half of 2026, the Trust completed the sale of its interests in four RioCan Living income-producing properties. These dispositions brought in $280.5 million, contributing to the Trust’s total capital repatriation from RioCan Living, which now stands at a proforma $1.26 billion. This is close to the $1.3 billion target the Trust set for the 2025 to 2026 period. The proceeds from these sales reflect the Trust’s ongoing efforts to optimize its asset base and return capital to unitholders.
Unitholders’ equity increased by $68.4 million during the second quarter, reaching $7.18 billion. This rise was primarily driven by gains from the fair value of investment properties and organic growth in stabilized NOI. As a result of strong leasing performance and a full leasing pipeline for the remainder of the year, the Trust raised its 2026 guidance for Commercial Same Property NOI growth from the original range of 3.5% to 4.0% to a new range of 4.0% to 4.5%. All other 2026 guidance remains unchanged as previously outlined in the 2025 annual MD&A.
High Retail Occupancy and Continued Leasing Success
RioCan’s retail portfolio remains a key driver of performance. The Trust achieved record retail committed occupancy of 98.8% for the second quarter of 2026, with in-place occupancy at 98.0%. The gap between committed and in-place occupancy narrowed by 0.5% compared to the first quarter of 2026. This was due to tenants being granted possession of previously committed spaces, such as Nations Fresh Foods at Oakville Place. These actions indicate a strong leasing market and high demand for the Trust’s retail assets.
The Trust’s retention ratio remained at a high level of 92.5%, supporting efficient organic growth with minimal capital outlay. RioCan President and CEO Jonathan Gitlin emphasized that the Trust’s focus on disciplined leasing, active asset management, and strategic capital allocation is generating value. He noted that the quality of the necessity-based retail portfolio, along with the Trust’s full operating independence, allows RioCan to make decisions that prioritize each asset’s long-term performance.
Looking ahead, the Trust has another 1.0 million square feet of lease maturities remaining in 2026, which offers further opportunities for mark-to-market gains. Gitlin expressed confidence in the Trust’s ability to continue creating long-term value for unitholders while maintaining the performance and durability of its portfolio. This outlook is supported by ongoing leasing success, strong fundamentals, and the continued strength of the retail market in which RioCan operates.