Toronto-based RioCan Real Estate Investment Trust has announced agreements to divest its 50 per cent stake in four residential rental properties within its RioCan Living portfolio. Expected to generate gross sale proceeds of $197.3 million, this move aligns with the Trust’s ongoing monetization strategy, following the sale of Strada in late 2024. Additionally, the company is in advanced negotiations to sell a Toronto residential rental asset, with transactions anticipated to close by Q3 2025.
RioCan’s residential portfolio, valued at approximately $1 billion as of Q1 2025, consists of 13 income-producing properties and two developments. The firm aims to complete these asset sales within 12 to 24 months, maintaining purchase prices in line with its IFRS valuations. Upon finalization of these agreements, RioCan Living will comprise nine income-producing properties and two under development, with a total valuation of roughly $0.9 billion.
“With RioCan Living, we’ve developed a portfolio of transit-oriented, mixed-use properties in Canada’s major markets,” said Jonathan Gitlin, President and CEO of RioCan. “Having achieved its intended scale, we are focused on generating maximum value from this one-of-a-kind portfolio. These strategic dispositions are a significant milestone in the RioCan Living asset monetization strategy, demonstrating the portfolio’s immense value. Given the numerous attributes that differentiate our portfolio in this competitive market, we have full confidence in the Trust’s ability to continue to unlock its intrinsic value. The outcome is increased financial flexibility for RioCan and a simplified business model focused on our core retail business.”
Since the start of 2025, RioCan has repurchased 5.5 million Units at an average price of $17.99 per Unit under the NCIB program. The company says it remains committed to maintaining an Adjusted Debt to Adjusted EBITDA ratio of 8.0x to 9.0x and expects further improvements in its Unsecured Debt to Total Contractual Debt ratio upon closing the transactions.
For more information, visit: www.riocan.com
