RioCan REIT Reports ‘Strong Year’ for 2025 with 5 Million Square Feet of Leasing Activity

Why It Matters

The results underscore RioCan’s ability to generate cash and maintain high occupancy amid a tightening retail‑space market, reinforcing its appeal to income‑focused investors.

Key Takeaways

• Leasing spreads hit 37.3% on new leases.
• Blended leasing spread reached record 21.1%.
• Occupancy stayed above 98% across portfolio.
• Capital repatriation lowered debt/EBITDA to 8.6x.
• No new large‑scale builds planned for 2026.

Pulse Analysis

RioCan’s 2025 performance arrives at a time when North American retail real estate faces a pronounced shortage of well‑located space. Leading retailers are competing for prime sites, allowing landlords with high‑quality assets to command premium rents. RioCan’s core retail platform, with 98.5% committed retail occupancy, positioned the trust to capture this demand, reflected in the 37.3% spread on new leases—one of the strongest in the sector.

Financially, the REIT demonstrated disciplined capital recycling. A $741.7 million capital repatriation reduced its adjusted debt‑to‑EBITDA multiple to 8.6×, enhancing balance‑sheet resilience. Same‑property NOI grew 3.6% year‑over‑year, driven by both rent escalations and high renewal rates. The $178.6 million in unit repurchases signaled confidence in the stock’s valuation and returned value to unitholders, while the 93.1% retention ratio highlighted tenant stability.

Looking ahead, RioCan’s development pipeline is modest, with 366,000 square feet of completed mixed‑use and retail projects and no large‑scale construction slated for 2026. This conservative approach preserves cash flow while the market tightens, allowing the trust to focus on lease‑up and rent‑growth opportunities. Investors can expect continued cash generation, strong occupancy, and the ability to leverage premium leasing spreads as retail demand remains robust.

RioCan REIT reports ‘strong year’ for 2025 with 5 million square feet of leasing activity

By Mario Toneguzzi · February 18, 2026 · RioCan Real Estate Investment Trust announced Wednesday its financial results for the three months and year ended December 31, 2025.

• New leasing spreads of 37.3 % for the year drove blended leasing spreads to 21.1 %, reflecting strong supply/demand fundamentals.

• Commercial Same‑Property NOI growth of 4.5 % for the Fourth Quarter supported full‑year growth of 3.6 %.

• $741.7 million of total capital repatriation drove Adjusted Spot Debt to Adjusted EBITDA down to 8.6 ×.

• $178.6 million in unit repurchases completed in 2025 and year‑to‑date 2026.

“RioCan delivered another strong year, highlighted by exceptional operating results and disciplined execution of our capital recycling strategy. Our results underscore the strength of our core retail platform, which serves as the foundation for the strategic plan we announced at our Investor Day,” said Jonathan Gitlin, President and CEO of RioCan.

“We enter 2026 with momentum fueled by intensifying demand from leading retailers amid a broader market shortage of well‑located retail space. This dynamic positions RioCan to generate sustainable, long‑term value for our Unitholders.”

Jonathan Gitlin

As at December 31, 2025, RioCan’s portfolio comprised 168 properties with an aggregate net leasable area of approximately 31 million square feet (at RioCan’s interest).

RioCan said committed retail and portfolio occupancy is 98.5 % and 97.8 %, respectively, with 5 million square feet of leasing activity in 2025, including 4 million square feet of renewals.

“Full‑year blended leasing spread increased to 21.1 %. This record performance was driven by new and renewal leasing spreads of 37.3 % and 17.8 %, respectively. The average blended leasing spread of 24.7 % on new leases and market renewals (comprising 65 % of expiring leases) highlights RioCan’s ability to extract the mark‑to‑market opportunity embedded within its portfolio,” said RioCan.

“A high retention ratio of 93.1 %. Best‑in‑class tenants retained with minimal capital outlay; high renewal leasing spreads validate sustained demand.”

During 2025, development projects totaling approximately 366,000 square feet were completed and transitioned into income‑producing properties. This includes 264,000 square feet of mixed‑use projects comprised of residential rental and retail units and 102,000 square feet of commercial retail projects. No large‑scale construction projects were initiated in 2025, and none are planned for 2026.