1

RioCan REIT

#2981

Rank

$4.4B

Marketcap

CA Canada

Country

RioCan REIT
Leadership team

Mr. Jonathan Gitlin (Pres, CEO & Additional Trustee)

Mr. Dennis Blasutti (Chief Financial Officer)

Dr. John Ballantyne Ph.D. (Chief Operating Officer)

Products/ Services
Leasing, Real Estate, Rental Property
Number of Employees
500 - 1000
Headquarters
Toronto, Ontario, Canada
Established
1993
Net Income
100M - 500M
Revenue
500M - 1B
Traded as
REI-UN.TO
Social Media
Overview
Location
Summary
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 September 30, 2020, our portfolio is comprised of 221 properties with an aggregate net leasable area of approximately 38.4 million square feet (at RioCan's interest) including office, residential rental and 16 development properties.
History

Early history

RioCan was founded in 1993, by its current CEO Edward Sonshine, as Counsel REIT. It was one of the first real estate investment trusts in Canada. The company held an IPO on the Toronto Stock Exchange in 1994. In 1995, it re-structured to internalize its asset management responsibilities, in return for a $5 million payment. As part of the re-structuring, the company was renamed RioCan REIT, a short form for "Retail Industrial Office Canadian".RioCan achieved significant growth in its early history, with an annualized 16% return from its IPO to 2013. This growth was achieved in part through acquisitions. In 1995, it acquired five shopping centres in Ottawa from Ivanhoe Inc. for $42.5 million, almost doubling the size of the company . In 1998, it acquired nine shopping centres from Burnac Inc, its largest acquisition up to that time. Also in 1998, the company launched an ultimately successful hostile takeover bid for Realfund REIT. The new company had a market value of more than $1 billion, and was Canada's largest REIT.

US expansion

In 2006, RioCan announced a planned expansion into the United States, through a $1 billion joint-venture with Ramco-Gershenson Properties Trust. However, this deal fell apart before closing. In 2010, the firm launched a successful expansion into the United States, taking advantage of low real estate prices there. By 2012, 15% of RioCan's revenue was from the United States, and it planned to expand the percentage to 20%. In December 2015, RioCan sold its U.S. portfolio to Blackstone Real Estate Partners VIII, for C$2.7 billion. The deal was triggered by the low value of the Canadian dollar. RioCan used some of the proceeds of the deal to fund its previously announced buyout of Kimco Realty's joint venture stake for $715 million.

Recent history

In 2011, RioCan announced a $1 billion joint venture with Tanger Factory Outlet Centers to develop 10-15 centres in Canada. RioCan was significantly affected by the sale of Zellers to Target, and the resulting closure of Zellers stores in Canada, as well as the closure of Target Canada. Target eventually paid RioCan $132 million to get out of its leases.

Change of strategy

Starting around 2015, RioCan entered the residential real estate market, due to the threat from e-commerce to traditional retail. The company plans to re-develop many of its malls with high-rise apartments, including Westgate Mall in Ottawa. By March 2018, when the company announced the RioCan Living Brand, it had 2,800 units being planned in eight of its shopping centres.In October 2017, the firm announced it would sell about $2 billion worth of properties by 2019. The sales would mainly be in smaller urban centres; the company plans to focus on the six largest Canadian cities of Toronto, Montreal, Ottawa, Calgary, Edmonton, and Vancouver. At the time of the announcement, RioCan had 299 properties, and it plans to sell about 100. RioCan's six largest markets already accounted for 75% of revenue, and it plans to increase that percentage to 90%.

Mission
RioCan REIT's mission is to provide sustainable, long-term returns for shareholders through the ownership and operation of quality retail-focused assets across Canada.
Vision
RioCan REIT's vision is to be recognized as a leader in the Canadian real estate industry by providing innovative retail solutions in primary and secondary markets, while delivering sustainable and increasing returns to our shareholders.
Key Team

Mr. Andrew Duncan (Chief Investment Officer)

Mr. Jeff Ross (Sr. VP of Leasing & Tenant Construction)

Ms. Franca Smith (Sr. VP of Fin.)

Ms. Jennifer Suess (Sr. VP, Gen. Counsel & Corp. Sec.)

Mr. Ryan Donkers (VP of Investments)

Ms. Terri Andrianopoulos (Sr. VP of People & Brand)

Kim Lee (VP of Investor Relations)

Recognition and Awards
RioCan has been recognized numerous times for its innovative approach to retail solutions. The company has received awards from Retail Council of Canada, Shopping Centers Today and The Canadian Institute of Planners.
References
RioCan REIT
Leadership team

Mr. Jonathan Gitlin (Pres, CEO & Additional Trustee)

Mr. Dennis Blasutti (Chief Financial Officer)

Dr. John Ballantyne Ph.D. (Chief Operating Officer)

Products/ Services
Leasing, Real Estate, Rental Property
Number of Employees
500 - 1000
Headquarters
Toronto, Ontario, Canada
Established
1993
Net Income
100M - 500M
Revenue
500M - 1B
Traded as
REI-UN.TO
Social Media