RioCan Real Estate Investment Trust Announces 14% Increase in Operating FFO for Third Quarter Ended September 30, 2011

TORONTO, ONTARIO--(Marketwire - Nov. 7, 2011) - RioCan Real Estate Investment Trust -

HIGHLIGHTS for Q3 2011:

All figures in Canadian dollars unless otherwise noted. RioCan's results are in accordance with International Financial Reporting Standards ("IFRS").

• RioCan's Operating FFO ("Funds From Operations") increased by 14% for the quarter ended September 30, 2011 to $97 million compared to $85 million for the same period in 2010. On a per unit basis, Operating FFO increased 6% to $0.37 per unit from $0.35 per unit for the same period in 2010;
  
  
• RioCan's Operating FFO increased by 14% for the first nine months ended September 30, 2011 to $280 million compared to $246 million for the same period in 2010. On a per unit basis, Operating FFO increased 6% to $1.07 per unit from $1.01 per unit for the same period in 2010;
  
  
• Portfolio occupancy increased 40bps at September 30, 2011 to 97.5%, compared to 97.1% at September 30, 2010;
  
  
• RioCan has acquired interests in seven income properties (three in Canada and four in the United States ("US")) during the quarter ended September 30, 2011 at an aggregate purchase price of approximately $240 million at RioCan's interest with a weighted average cap rate of 6.5% during the quarter. RioCan has also added to its development portfolio through the acquisition of interests in several development sites at an aggregate purchase price of $56 million;
  
  
• Subsequent to the third quarter end, RioCan has completed the purchase of four properties (two in Canada and two in the US) at an aggregate purchase price of $157 million at RioCan's interest with a weighted average cap rate of 6.8%. RioCan has also added to its development portfolio through the acquisition of an interest in two development properties at an aggregate purchase price of $8 million;
  
  
• Year to date RioCan has acquired interests in 25 properties (16 in Canada and nine in the US) at an aggregate purchase price of approximately $620 million, at RioCan's interest, with a weighted average cap rate of 6.7%;
  
  
• RioCan has $257 million (at RioCan's interest) of assets under firm contract, with a weighted average cap rate of 6.7% and $97 million (at RioCan's interest) of additional acquisitions under contract, but subject to certain conditions not yet waived; and
  
  
• RioCan issued 5.1 million units during the quarter, which generated $125 million of gross proceeds. Subsequent to the quarter end, RioCan issued an additional 5.1 million units, which generated an additional $126.5 million of gross proceeds.
  
  

RioCan Real Estate Investment Trust (TSX:REI.UN) ("RioCan" or the "Trust") today announced its financial results for the third quarter ended September 30, 2011 ("Third Quarter").

"RioCan's operating metrics are strong and we continue to experience considerable demand from tenants on both sides of the border," said Edward Sonshine, President & CEO of RioCan. "RioCan's ability to access capital and execute transactions has kept our acquisition platform very active in this most recent quarter. RioCan has exceeded its acquisition targets for the year, and has been able to strengthen its portfolio with high quality real estate assets in Canada and the United States."

Financial Highlights

Operating FFO

RioCan's Operating FFO represents the recurring cash flow generated through the ownership and management of income properties. Operating FFO excludes transactional gains as well as the expenditures related to development activities that are no longer capitalized under IFRS. The primary difference between net earnings and Operating FFO is the fair value gain on investment properties.

In the Third Quarter, Operating FFO increased to $0.37 per unit from $0.35 per unit for the same period in 2010. The primary reasons for this increase were: a $18 million increase in net operating income ("NOI"), which was due to incremental income from acquired properties, same store growth of 1.3% in Canada and 1.0% in the US, and the completion of developments, partially offset by a reduction in lease cancellation fees of $4.7 million. Operating FFO benefited from increased fee income of $4 million due to higher fees arising from leasing and development activities. Operating FFO was offset by increased general and administrative costs of $2 million, and a $6 million increase in interest expense during the Third Quarter due to higher debt levels as a result of acquisitions.

For the nine months ended September 30, 2011, Operating FFO increased to $1.07 per unit from $1.01 per unit for the same period in 2010. The primary reasons for this increase were: a $50 million increase in net operating income, which was due to incremental income from acquired properties, same store growth of 0.8% for the Canadian portfolio and 2.0% for the US portfolio, and the completion of developments, and increased fee income of $4 million. Operating FFO was offset by a $15 million increase in interest expense due to higher debt levels compared to the nine months ended September 30, 2010 and higher general and administrative expenses of $2 million. RioCan's Operating FFO excludes the impact of $27 million in prepayment penalties that were incurred in the first quarter of 2011 related to the early extinguishment of the Series L debentures, and the Series F debentures that carried an interest rate of 8.3% and 4.9%, respectively. As a result of this early extinguishment RioCan will recognize substantial interest savings.

Net Earnings

RioCan reported net earnings for the Third Quarter of $168 million ($0.63 per unit) compared to $56 million ($0.23 per unit) for the same period in 2010, an increase of $112 million ($0.40 on a per unit basis). The growth in net earnings is largely attributable to a fair value gain on real estate assets of $73 million as a result of favourable property valuation changes as per IFRS in the Third Quarter.

RioCan reported net earnings for the nine months ended September 30, 2011 of $632 million ($2.39 per unit) compared to $243 million ($1.00 per unit), an increase of $389 million ($1.39 on a per unit basis). The growth in net earnings is largely attributable to a fair value gain on real estate assets of $387 million as a result of favourable property valuation changes as per IFRS.

As at September 30, 2011, RioCan's fair value of Investment Properties was $9.6 billion based on a weighted average cap rate of 6.6%, a decrease of 30 bps from December 31, 2010.

Same Store and Same Property NOI

Same store and same property NOI during the Third Quarter increased by 1.3% for the Canadian portfolio when compared to the same period in 2010. Same property and same store NOI gains were due largely to new and renewal leasing and fixed rent steps, which positively impacted NOI by $2.3 million, but were partially offset by vacancies of $1.3 million, including vacancies resulting in lease cancellation fees.

Same store and same property NOI during the nine months ended September 30, 2011 increased by 0.8% for the Canadian portfolio when compared to the same period in 2010. Same property and same store NOI gains were due largely to new and renewal leasing and fixed rent steps, which positively impacted NOI by $4.3 million, but were partially offset by vacancies of $3.6 million, including vacancies resulting in lease cancellation fees.

Sequentially, same store and same property NOI increased 1.0% compared to the second quarter of 2011 for the Canadian portfolio primarily due to fixed rent steps as well as new and renewal leasing that had a positive impact of $1.0 million.

Excluding the impact of foreign exchange, the US same store and same property NOI during the Third Quarter in the US increased by 1.0% when compared to the same period in 2010 and increased 2.0% for the nine months ended September 30, 2011 when compared to the same period in 2010. Sequentially on a US dollar basis, same store and same property NOI growth were 2.3% compared to the second quarter of 2011.

Portfolio Stability

As at September 30, 2011:

• RioCan's Canadian occupancy rate was 97.5%, up from 97.0% as at September 30, 2010. RioCan's US occupancy rate was 97.8% compared to 98.1% at September 30, 2010. RioCan's overall occupancy rate was 97.5% compared to 97.1% as at September 30, 2010;

• The portfolio economic occupancy rate represents the occupied net leaseable area for which tenants are paying rent. The portfolio economic occupancy rate was 96.3%. The annualized rental revenue impact expected upon commencement of tenants who are yet to start paying rent is $12 million;

• In the Third Quarter, RioCan renewed 89% of expiring leases compared to a renewal retention rate of 95% for the same period of 2010;

• For the nine months ended September 30, 2011, RioCan renewed 89% of expiring leases, roughly in line with the renewal retention rate of 90% experienced in the same period of 2010;

• Renewed 838,000 square feet during the Third Quarter at an average rent increase of 7.2% or $1.01 per square foot (including fixed rate renewals);

• Renewed 3.1 million square feet during the nine months ended September 30, 2011 at an average rent increase of 10.1% or $1.40 per square foot (including fixed rate renewals);

• During the Third Quarter at RioCan's interest, new vacancies were 186,000 square feet, compared to 126,000 square feet of vacated space in the same period in 2010;

• RioCan's properties in Canada's six high growth markets (Calgary, Edmonton, Montreal, Ottawa, Toronto and Vancouver), account for about 65% of RioCan's Canadian annualized rental revenue;

• National and anchor tenants represented 86% of annualized rental revenue at September 30, 2011, consistent with 86% at September 30, 2010;

• RioCan's 50 largest tenants generate 59.7% of annualized rental revenue; and

• No individual tenant comprised more than 4.8% of annualized rental revenue for the total portfolio.

Portfolio Activity and Acquisition Pipeline – Income Producing Properties

In the Third Quarter, RioCan acquired an interest in seven income properties (three in Canada and four in the US) at an aggregate purchase price of approximately $240 million, at RioCan's interest, with a weighted average cap rate of 6.5%.

Subsequent to quarter end, RioCan acquired two properties in Canada and two properties in the US at an aggregate purchase price of approximately $157 million, at RioCan's interest, at a weighted average cap rate of 6.8%.

Year to date, RioCan purchased an interest in 25 properties (16 in Canada and nine in the US) that represent an aggregate of 3 million square feet for approximately $620 million at RioCan's interest at a weighted average cap rate of 6.8%. In addition, RioCan has six properties (two in Canada and four in the US) with an aggregate purchase price of $257 million under contract where conditions have been waived that are expected to be completed during the fourth quarter 2011. Upon completion, RioCan's income property acquisition activities in 2011 would total $877 million with a weighted average cap rate of 6.6% in 31 properties (18 in Canada and 13 in the US), representing more than five million square feet.

Since RioCan's entrance into the US market in the fourth quarter of 2009, excluding assets under contract, RioCan has assembled a portfolio of 40 properties or 5.8 million square feet at RioCan's interest that has a fair value of approximately $1.2 billion in the US.

Acquisitions Completed During the Third Quarter

Canada

• Megacentre Rive-Sud, Levis, Quebec - 207,201 square foot new format retail. RioCan has acquired a 100% interest in the property at a purchase price of $48 million at a cap rate of 6.2%.
• Southwinds Shopping Centre, Oliver, British Columbia - 73,972 square foot grocery anchored centre. RioCan has acquired a 100% interest in the property for $20.3 million, at a cap rate of 6.7%.
• Repentigny Shoppers Drug Mart, Repentigny, Quebec - 17,035 square foot, single tenant. RioCan has acquired a 100% interest in the property for $5.4 million, at a cap rate of 7.0%.

United States

• Southpark Meadows Phase II, Austin, Texas - 654,300 square foot new format retail. RioCan has acquired an 80% interest for $110.8 million at 100% ($88.6 million at RioCan's interest) at a cap rate of 6.6%.
• Huntington Square, Huntington (Long Island), New York – 116,201 square foot grocery anchored shopping centre. RioCan has acquired a 100% interest in the property for US$40.2 million, which equates to a cap rate of 6.2%.
• Stop & Shop Plaza, Richmond, Rhode Island - 60,488 square foot grocery anchored centre. RioCan purchased a 100% interest in the property for US$12.1 million at a cap rate of 7.4%.
• Sawyer Heights Village, Houston, Texas - a 107,551 square foot new format retail centre. RioCan has acquired an 80% interest in the property for $28 million ($35 million at 100%), at a cap rate of approximately 6.2%.

Further details on these acquisitions are available in the Trust's Management's Discussion and Analysis for the period ending September 30, 2011.

Acquisitions Completed Subsequent to September 30, 2011

RioCan has completed the purchase of two properties in Canada and two properties in the US. The aggregate purchase price for these acquisitions was $157 million at a weighted average cap rate of 6.8%.

Canadian Properties Acquired:

266 King Street West, Oshawa is a 34,202 square foot retail centre in the suburban GTA market of Oshawa, Ontario. The property, built in 2005 and 2006, is anchored by an 18,970 square foot Shoppers Drug Mart (expiry 2020). Other major tenants include Bulk Barn and Harvey's. RioCan has acquired a 100% interest in the property for $13.3 million, at a cap rate of 6.7%. In connection with the acquisition, RioCan assumed the in place financing of $7.7 million that carries an average interest rate of 5.7% with a 2015 maturity.

Cowichan Commons

Cowichan Commons is located in North Cowichan, British Columbia, north of Victoria. The 186,629 square foot property was built in 2008 and is anchored by Walmart. The property is also shadow anchored by Canadian Tire, Home Depot, and Future Shop. The property has a weighted average lease term of 14.9 years. The property was acquired (at 100% interest) for $50.1 million, at a cap rate of 6.2%. The property was acquired free and clear of financing. RioCan has subsequently arranged financing of $32.5 million at a rate of 3.384% for a five-year term.

US Properties Acquired:

1890 Ranch

1890 Ranch is a 486,896 square foot new format retail centre in Austin, Texas. The property which was built in 2007 has a weighted average lease term of 7.7 years and is shadow anchored by Target. Other major tenants include Ross Dress for Less, PetSmart, and Cinemark Cedar Park Theater. The property was acquired on an 80/20 joint venture basis with Inland Western for US$97.6 million at 100% (US$78.1 million at RioCan's interest), at a cap rate of 7.0%. Inland Western will manage the property on behalf of the joint venture. The joint venture purchased the property free and clear of financing. The joint venture is in the process of seeking conventional third party financing.

Cinco Ranch

Cinco Ranch is a 97,761 square foot new format retail centre located in Katy, Texas a suburb of Houston. The property which was built in 2004 is shadow anchored by Target and is anchored by Michaels and Office Max. Other tenants include HomeGoods, Jenny Craig, and Supercuts. The weighted average lease term for the property is 5.2 years. The property was acquired on an 80/20 joint venture basis with Sterling Organization, LLC ("Sterling") (80% RioCan / 20% Sterling) for $17.0 million at 100% ($13.6 million at RioCan's interest) at a cap rate of 8.0%. Sterling is a diversified real estate investment, development and services company. Focused on the opportunistic acquisition of quality grocery anchored and Big Box power centers, Sterling and its principals own approximately five million square feet of retail and other commercial real estate, located primarily in Florida and Texas. Sterling will manage the property on behalf of the joint venture. In connection with the acquisition the joint venture assumed the in place financing of US$10.0 million that carries an interest rate of 7.3% with a 2019 maturity.

Acquisitions Under Contract (Firm)

RioCan has six properties (two in Canada and four in the US) with an aggregate purchase price of $257 million under contract where RioCan has waived conditions that are expected to be completed during the fourth quarter 2011.

Canadian Properties Under Contract:

In Canada, RioCan has waived conditions with respect to two properties that upon closing represent $112.9 million of additional acquisitions at RioCan's interest.

Sheppard Centre

Sheppard Centre, located at the northeast corner of Yonge Street and Sheppard Avenue in Toronto, Ontario, is a 673,000 square foot urban mixed use centre that contains retail, office, and residential uses. RioCan has agreed to purchase the property on a 50/50 joint venture basis with KingSett Capital at a purchase price of $218 million at 100% ($109 million at RioCan's interest). $190 million has been allocated to the income producing property and $28 million has been allocated to the excess residential density. The cap rate on year one income is 6.11%. RioCan will manage the property, act as leasing manager for the property and will be the development manager in connection with any redevelopment of the property. RioCan is seeking a bank credit facility with the intention of having it in place for the closing of the acquisition. The retail portion of the property has a weighted average lease term of 5.3 years, is 96.1% leased, and contains 257,039 square feet of retail space on four levels. The major tenants in the retail portion of the property are Cineplex, Winners, Shoppers Drug Mart, Bank of Montreal, CIBC, and TD Canada Trust. The office portion of the property has a weighted average lease term of 6.8 years, is 100% leased, and contains 415,815 square feet of office space in two towers, 19 and 9 storeys, respectively. Major tenants in the office portion of the property include Bank of Montreal and Aon Hewitt, who together lease approximately 82% of the office space. The property has direct access to both the Yonge and Sheppard subway lines and has three levels of underground parking that can accommodate more than 2,100 vehicles. Beyond the current retail and office uses, this property also has the potential for additional intensification through retail expansion and the addition of a residential/condominium component.

College Street LCBO

College Street LCBO is a 3,721 square foot single tenant retail property leased by the Liquor Control Board of Ontario ("LCBO"), lease expiry 2031. The property is located near Bathurst Street and College Street in Toronto, Ontario. The property is expected to be acquired for $3.9 million, at a cap rate of 6.0%. The property will be acquired free and clear of financing.

US Properties Under Contract

In the US, RioCan has waived conditions with respect to four US properties that upon completion represent US$144.2 million of additional acquisitions at RioCan's interest.

Alamo Ranch

Alamo Ranch is located in San Antonio, Texas. The 465,000 square foot property was built in 2008. The centre is 88% occupied and has a weighted average lease term of 6.6 years. The property is shadow anchored by Target, JC Penney and Lowe's. Major tenants at the property include Best Buy, Marshalls, Ross Dress for Less, and Dick's Sporting Goods. The property will be acquired on an 80/20 joint venture basis with Inland Western (80% RioCan / 20% Inland Western) for of US$93.0 million at 100% (US$74.4 million at RioCan's interest), at a cap rate of 7.2%. The property will be acquired free and clear of financing. The joint venture is in the process of seeking conventional third party financing.

Market Street Portfolio

Market Street at Stonebridge Ranch is an 88,389 square foot grocery anchored centre in McKinney, Texas located approximately 50 kms north of Dallas. The property, which was built in 2004, has a weighted average lease term of 9.5 years and is anchored by a Market Street grocery store. Market Street Grocers, which is owned by United Supermarkets, is a Texas based family owned grocery store chain with 51 stores across Texas. Market Street focuses on everyday grocery items combined with specialty items, whole-health and gourmet items as well as prepared items.

Market Street at Colleyville is a 72,617 square foot grocery anchored centre in Colleyville, Texas, a suburb of Dallas. The property, which was built in 2003, has a weighted average lease term of 12.2 years and is anchored by a Market Street grocery store.

RioCan will purchase a 100% interest in both properties at an aggregate purchase price of US$29.9 million at a cap rate of 7.5%. Sterling will manage the property on behalf of RioCan. In connection with the acquisition RioCan will assume the in place financings totalling US$15.4 million that carries an average interest rate of approximately 6.0% with maturities in 2014, 2023, and 2024.

Shoppes at Salem

Shoppes at Salem is located along Route 28 in Salem, New Hampshire, approximately 45 kms north of Boston, Massachusetts. The 170,270 square foot property was built in 1999. The centre is 100% occupied and has a weighted average lease term of 7.4 years. The property is occupied by five national retailers, Best Buy, Sports Authority, PetSmart, Michaels, and DSW. RioCan will acquire a 100% interest for US$39.9 million, at a 7.0% cap rate. Cedar Shopping Centers, Inc. will provide property management services. RioCan will assume the in place secured debt of US$17.8 million that carries an interest rate of 6.2% and is scheduled to mature in December 2012.

Acquisitions Under Contract (Conditional)

In addition, RioCan currently has two properties, one in Canada and one in the US, that are under contract where conditions have not yet been waived that, if completed, total $97 million of acquisitions at RioCan's interest. It is expected that these transactions will be completed in the fourth quarter of 2011. These properties are in various stages of due diligence and while efforts will be made to complete these acquisitions, no assurance can be given.

Acquisition Pipeline

RioCan is currently in negotiations regarding property acquisitions in Canada and the US that, if completed, represent in approximately $100 million of additional acquisitions (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

In selecting appropriate funding choices, RioCan's objective is to manage its capital structure in such a way as to diversify its funding sources while minimizing its funding costs and risks. RioCan had cash on hand of approximately $27 million at September 30, 2011.

As at September 30, 2011, adjusted EBITDA interest coverage for RioCan was 2.6x. RioCan's indebtedness was 47.8% of total assets. As part of RioCan's capital management strategy, it is RioCan's objective to further strengthen its balance sheet as well as improve its coverage ratios over time. RioCan's Net Debt to adjusted EBITDA in the Third Quarter of 2011 was 7.2x compared to 6.8x at December 31, 2010.

During the quarter, RioCan issued 5.1 million units, which generated $125 million of gross proceeds. Subsequent to the quarter end, RioCan issued an additional 5.1 million units, which generated $126.5 million of gross proceeds.

Mortgage Financing

Canada

During the Third Quarter, RioCan obtained approximately $63 million of mortgage financing at an average interest rate of 4.1% with a weighted average term to maturity of about 5.4 years. For the nine months ended September 30, 2011, RioCan obtained approximately $309 million of mortgage financing at an average interest rate of 5.0% with a weighted average term to maturity of about 7.5 years.

US

During the Third Quarter, RioCan obtained approximately $61 million of mortgage financing at an average interest rate of 4.3% with a weighted average term to maturity of about 6.1 years. For the nine months ended September 30, 2011, RioCan obtained approximately $135 million of mortgage financing at an average interest rate of 4.75% with a weighted average term to maturity of about 6.5 years.

Lines of Credit

RioCan has five revolving lines of credit in place with three Canadian chartered banks, having an aggregate capacity of $422 million against which approximately $58 million has been drawn and $29 million has been drawn as letters of credit leaving $332 million available for cash draws under the lines of credit.

Subsequent to the quarter, RioCan has renegotiated its lines of credit and is expecting documentation to be completed and executed shortly. When completed, RioCan will have extended the maturity of its $200 million and $100 million facilities to December 2014 and June 2014 respectively. RioCan's $78 million facility will be increased to $125 million maturing December 2013 (plus one year extension subject to Bank approval).

Development Activity

During the Third Quarter, RioCan completed 77,000 square feet (three months ended September 30, 2010 – 10,000 square feet) of redevelopment and development activities, which includes the recently completed Queen & Portland development project in Toronto, Ontario.

During the nine months ended September 30, 2011, RioCan completed 189,000 square feet (nine months ended September 30, 2010 – 15,000 square feet) of redevelopment and development activities, which includes the above mentioned Queen & Portland project as well as the 1717 Avenue Road development project in Toronto, Ontario, which was completed in the second quarter of 2011.

As at September 30, 2011, RioCan's pipeline of development projects that will, upon completion, comprise about 8.9 million square feet, of which RioCan's ownership interest will be 4.6 million square feet. Included in this are interests in 10 greenfield developments.

During the quarter RioCan has completed several acquisitions of urban parcels to form part of RioCan's urban development pipeline.

Yonge & Eglinton Northeast Corner Assembly

• 2272-2279 Yonge Street - RioCan acquired a 50% interest in the property at a purchase price of $10.2 million at 100% ($5.1 million at RioCan's interest). The remaining interest was acquired by Metropia and Bazis Inc., residential developers focusing on Toronto.
• 10 Eglinton Avenue East - RioCan acquired a 50% interest in the property at a purchase price of $8.5 million at 100% ($4.3 million at RioCan's interest). The remaining interest was acquired by Metropia and Bazis Inc.
• Subsequent to the quarter end, RioCan has acquired a 50% interest in 2281-2285 Yonge Street at a purchase price of $9.3 million at 100% ($4.6 million at RioCan's interest). The remaining interest was acquired by Metropia and Bazis Inc.
• Subsequent to the quarter end, RioCan has acquired 25 Roehampton Avenue, a 30-unit apartment building located in Toronto, Ontario. RioCan purchased a 50% interest in the property at a purchase price of $5.95 million at 100% ($3.0 million at RioCan's interest). The property was acquired free and clear of financing. The remaining interest was acquired by Metropia and Bazis Inc.

Other Development Pipeline Acquisitions

• RioCan acquired the third and fourth pieces of a four parcel assembly in Toronto, Ontario, located near the intersection of Bathurst Street and College Street for a purchase price of $8 million, at RioCan's interest. The total land area of this land assembly is 1.3 acres and when developed, it is expected that the site has the potential for 139,000 square feet of urban retail space. The Trust has entered into a partnership with Trinity Development Group Inc. ("Trinity"), where Trinity acquired a 40% ownership interest in this development.
• Subsequent to the quarter end. RioCan has waived conditions for the acquisition of Sage Hill Crossing, a 32 acre greenfield development site in Northwest Calgary. The purchase price for the lands, which will be serviced and zoned at the time of closing, will be $31.6 million. Once completed, the anticipated gross leasable area is 347,000 square feet of retail use. The anticipated closing date is September, 2012. Development is expected to commence in 2013.

Herongate Mall was acquired on a 75/25 joint venture basis with its partner Trinity (75% RioCan / 25% Trinity). The property is situated on a 16 acre site in a mature area of Ottawa, Ontario. This is a redevelopment project, which when completed, will be anchored by many of the existing tenants at the property including, Metro, Pharma Plus, and Scotiabank. The purchase price was $17 million at 100% ($12.8 million at RioCan's interest). The property was acquired free and clear of financing.

RioCan acquired its partners' two thirds-interest in Windfield Farms, in Oshawa, Ontario, at a cost of $29.3 million, bringing RioCan's ownership interest to 100%. Windfield Farms is a 160 acre site located at Simcoe Street, in the suburban Greater Toronto Area, adjacent to the proposed Highway 407 extension. The site is designated as a regional retail site and will be able to accommodate up to 1.5 million square feet of development. Development is expected to commence in 2014.

RioCan's Consolidated Financial Statements, Management's Discussion and Analysis and a Supplemental Information Package for the three and nine months ended September 30, 2011 and 2010 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 Monday, November 7, 2011 at 10:00 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 416-340-2216 or 1-866-226-1792. If you cannot participate in the live mode, a replay will be available until December 6, 2011. To access the replay, please dial 905-694-9451 or 1-800-408-3053 and enter passcode 4480535#.

Scheduled speakers include Edward Sonshine, President and Chief Executive Officer, Fred Waks, Executive Vice President and Chief Operating Officer and Rags Davloor, Senior 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/Investor-Relations/Events-Webcasts/default.aspx and 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 $11.9 billion as at September 30, 2011. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 314 retail properties, including 10 under development, containing an aggregate of over 75 million square feet. RioCan owns an interest in 38 grocery anchored and new format retail centres in the United States through various joint venture arrangements. 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 "Financial Highlights", "Portfolio Stability", "Portfolio Activity and Acquisition Pipeline", "Liquidity and Capital" and "Development Activities"), 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 this News Release, 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 current 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 Canada and the US, 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 robust retail environment compared to recent years; relatively 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") which includes application to the Trust's 2010 comparative financial results. 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) (the "Act") contains legislation affecting the tax treatment of publicly traded trusts (the "SIFT Legislation"). The SIFT Legislation will not impose tax on a trust which qualifies under such legislation as a real estate investment trust (the "REIT Exception"). RioCan currently qualifies for the REIT Exception 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.