RioCan REIT Announces Additional $25 Million Offering of Series Q Senior Unsecured Debentures


TORONTO, ONTARIO--(Marketwire - July 12, 2012) -

NOT FOR DISTRIBUTION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

RioCan Real Estate Investment Trust ("RioCan") (TSX:REI.UN) announced today that it has agreed to issue, subject to regulatory approval, $25 million principal amount of Series Q senior unsecured debentures (the "Additional Debentures"), which is a re-opening of this series of debentures, the original issuance which was completed in June 2012.

The Additional Debentures are being offered pursuant to an Agency Agreement with a syndicate of agents, with RBC Capital Markets, TD Securities and Scotia Capital, as co-lead agents. The Series Q senior unsecured debentures carry a coupon rate of 3.85% and mature on June 28, 2019. The Additional Debentures were sold at a price of $101.467 per $100.00 principal amount plus accrued interest, with an effective yield of 3.609% per annum if held to maturity. An aggregate of $175 million of such debentures will be outstanding after giving effect to the offering.

The net proceeds will be used by RioCan to repay indebtedness, including indebtedness incurred in the ordinary course under RioCan's operating lines of credit, for property acquisitions, to fund development and for general trust purposes.

It is a condition of closing that the Series Q senior unsecured debentures continue to be rated at least BBB (high) with a stable trend by DBRS Limited and at least BBB- by Standard & Poor's, a division of the McGraw Hill Companies, Inc.

The offering is being made under RioCan's base shelf short form prospectus dated June 11, 2012. The terms of the offering will be described in a prospectus supplement to be filed with Canadian securities regulators. The offering is expected to close on or about July 19, 2012.

The press release shall not constitute an offer to sell, or the solicitation of an offer to buy, any securities in any jurisdiction. The Debentures being offered have not been and will not be registered under the U.S. Securities Act of 1933 and state securities laws. Accordingly, the Debentures may not be offered or sold to U.S. persons except pursuant to applicable exemptions from registration.

About RioCan:

RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $13 billion as at March 31, 2012. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 333 retail properties containing an aggregate of 80 million square feet, including 46 grocery anchored and new format retail centres containing 12 million square feet in the United States through various joint venture arrangements. RioCan's portfolio also includes 10 properties under development in Canada. For further information, please refer to RioCan's website at www.riocan.com.

Contact Information:

RioCan Real Estate Investment Trust
Rags Davloor
Executive Vice President & CFO
(416) 642-3554
www.riocan.com