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Paul Godfrey, C.M. Chairman RIOCAN 16 th Annual & Special Meeting.

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Presentation on theme: "Paul Godfrey, C.M. Chairman RIOCAN 16 th Annual & Special Meeting."— Presentation transcript:

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2 Paul Godfrey, C.M. Chairman

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4 RIOCAN 16 th Annual & Special Meeting

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6 RIOCAN Today

7 The Management Team

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9  Retention of expiring leases in Q1 were 91.7% up from 77% at Q  Same property net operating income was flat in Q1 09 and down 4.3% from Q1 08  84.4% of rental revenue from national & anchor tenants  We are well diversified

10  Retention of expiring leases in Q1 were 91.7% up from 77% at Q  Same property net operating income was flat in Q1 09 and down 4.3% from Q1 08  84.4% of rental revenue from national & anchor tenants  We are well diversified

11  Retention of expiring leases in Q1 were 91.7% up from 77% at Q1 08  Same property net operating income was flat in Q1 09 and down 4.3% from Q4 08  84.4% of rental revenue from national & anchor tenants  We are well diversified

12  Retention of expiring leases in Q1 were 91.7% up from 77% at Q  Same property net operating income was flat in Q1 09 and down 4.3% from Q1 08  84.4% of rental revenue from national & anchor tenants  We are well diversified

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14 Edward Sonshine, Q.C. President and C.E.O.

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16 “We find ourselves in uncertain times. The cause of the current economic uncertainty and negativity is different than those of previous eras; after all, whoever heard of subprime mortgages until the last couple of years? But when one looks back over the various financial storms that we have been witness to over the last 20 years, one sees that while the specific causes are always different, the impact, particularly in the real estate business, is fairly predictable. Less availability of capital, tighter lending standards, slower lease commitments from national tenants, and increasing defaults from tenants already on the edge.” May 27, 2008

17 Dead or Wounded

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20 S&P/TSX Downturn  September 2, 2008 closed at 13,299.54

21 S&P/TSX Downturn  September 2, 2008 closed at 13,  February 27, 2009 closed at 8,123.02

22 S&P/TSX Downturn  September 2, 2008 closed at 13,  February 27, 2009 closed at 8,  38.9%

23 2009 Review

24 RioCan’s Strategy 1 A focus on high growth markets

25 RioCan’s Strategy 1 A focus on high growth markets 2/3 of all our revenue comes from the six high growth markets

26 RioCan’s Strategy A focus on national and anchor tenants 2

27 RioCan’s Strategy A focus on national and anchor tenants March 1999 Revenue 73.7% 2

28 RioCan’s Strategy A focus on national and anchor tenants March 1999 Revenue 73.7% March 2009 Revenue 84.4% 2

29 RioCan’s Strategy Stayed in Canada – 100% Canadian 3

30 RioCan’s Strategy Stayed in Canada – 100% Canadian 3

31 Our portfolio is weathering this downturn

32 Portfolio  Occupancy rates dipped to

33 Portfolio  Occupancy rates dipped to 96.6%

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35 Hug your banker

36  Commercial Mortgage Backed Securities (CMBS) market is virtually non-existent Liquidity in Marketplace

37  Commercial Mortgage Backed Securities (CMBS) market is virtually non-existent  Non-traditional real estate lenders either ceased to exist or are not doing any new business Liquidity in Marketplace

38  Commercial Mortgage Backed Securities (CMBS) market is virtually non-existent  Non-traditional real estate lenders either ceased to exist or are not doing any new business  Traditional mortgage lenders did not grow their mortgage lending businesses last year Liquidity in Marketplace

39  Commercial Mortgage Backed Securities (CMBS) market is virtually non-existent  Non-traditional real estate lenders either ceased to exist or are not doing any new business  Traditional mortgage lenders did not grow their mortgage lending businesses last year  Canadian banking system can’t fill the lending gap Liquidity in Marketplace

40 “The proof is in the pudding”

41 Unsecured Debentures  RioCan did last deal before the markets closed - September $120 million

42 Unsecured Debentures  RioCan did last deal before the markets closed - September $120 million  RioCan also did first deal when markets opened up - April $180 million

43 Cost of Debt  2009 – unsecured debt 8.33%

44 Cost of Debt  2009 – unsecured debt 8.33%  As at May 1, weighted average cost of debt 6.75%

45 Cost of Debt  2009 – unsecured debt 8.33%  As at May 1, weighted average cost of debt 6.75%  2009 estimated average cost of new debt 6%

46 RioCan has not only been able to ensure adequate liquidity throughout, but we are actually in as strong a capital position today as we probably have ever been

47 Strong Balance Sheet  We will have approx. $200M in cash at the end of 2009

48 Strong Balance Sheet  We will have approx. $200M in cash at the end of 2009  Credit facilities of $290M

49 Strong Balance Sheet  We will have approx. $200M in cash at the end of 2009  Credit facilities of $290M  12% of our properties are unencumbered as of March 31, 2009

50 2009

51 Looking at 2010 and beyond

52 What are we doing to get back on our growth targets?

53  Opportunistic acquisition Getting Back on Our Growth Targets Montreal Portfolio

54  Opportunistic acquisition  Six properties – grocery anchored Getting Back on Our Growth Targets Montreal Portfolio

55  Opportunistic acquisition  Six properties – grocery anchored  Defensive category Getting Back on Our Growth Targets Montreal Portfolio

56 On the lookout for other opportunistic acquisitions Getting Back on Our Growth Targets

57 Getting Back on Our Growth Targets Avenue Road Development

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59 Getting Back on Our Growth Targets Queen and Portland

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61 Several other development projects in 2010 Getting Back on Our Growth Targets

62 Future growth prospects in residential density next to existing shopping centres Getting Back on Our Growth Targets

63 Refinancing of maturing debt in 2010 will contribute materially to our income growth Getting Back on Our Growth Targets

64 Continue to seek out accretive acquisitions Getting Back on Our Growth Targets

65 Distribution and distribution policy

66 Bill C-52

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