the past year unitholder approval to increase leverage to 60%. strategic alliance between riocan...
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The Past YearThe Past Year
43%
23%
RioCan
REITs
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The Past YearThe Past Year Unitholder approval to increase
leverage to 60%.
Strategic alliance between RioCan and Kimco Realty Corporation.
Unitholder approval to increase leverage to 60%.
Strategic alliance between RioCan and Kimco Realty Corporation.
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20012001 20002000 % Increase% Increase
Rental Rental RevenueRevenue
$344,000,000 $301,000,000 14%
Net EarningsNet Earnings $159,000,000 $122,000,000 31%
Net Earnings Net Earnings Per Unit Per Unit
$1.11 $0.93 19%
Distributable Distributable Income Per Income Per UnitUnit
$1.29 $1.19
9%
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Growth In Total Assets($millions)Growth In Total Assets($millions)
131 198368
796
1,149
2,1612,415
2,708
94 95 96 97 98 99 00 01
2001 Increase – 12% 5 Year Total Growth – 636%
2001 Increase – 12% 5 Year Total Growth – 636%
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Growth In Market Capitalization($millions)Growth In Market Capitalization($millions)
46 109289
632718
1,054
1,779
1,333
94 95 96 97 98 99 00 01
2001 Increase – 34%5 Year Total Growth – 516%
2001 Increase – 34%5 Year Total Growth – 516%
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Growth In Rental Revenue($millions)Growth In Rental Revenue($millions)
15 2239
87
151
230
301
344
94 95 96 97 98 99 00 01
2001 Increase – 14% 5 Year Total Growth – 785%
5 Year Compounded Annual Growth – 55%
2001 Increase – 14% 5 Year Total Growth – 785%
5 Year Compounded Annual Growth – 55%
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Growth In Total Distributable Income($millions)
Growth In Total Distributable Income($millions)
4 817
40
65
113
156
186
94 95 96 97 98 99 00 01
2001 Increase – 19% 5 Year Total Growth – 994%
5 Year Compounded Annual Growth – 61%
2001 Increase – 19% 5 Year Total Growth – 994%
5 Year Compounded Annual Growth – 61%
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Distributable Income Per Unit($)
Distributable Income Per Unit($)
0.4
0.560.65
0.78
0.95
1.191.29
1.09
94 95 96 97 98 99 00 01
2001 Increase – 9% 5 Year Total Growth – 99%
5 Year Compounded Annual Growth – 15%
2001 Increase – 9% 5 Year Total Growth – 99%
5 Year Compounded Annual Growth – 15%
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“RioCan’s premium valuation relative to other commercial real estate REITs is warranted for its size, liquidity and proven management. BUY RioCan for its diversification, stability and attractive tax-efficient current yield.”
- Sam Damiani, CFA TD Newcrest- Sam Damiani, CFA TD Newcrest
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“With 22 million square feet of gross leaseable area in 144 shopping centres, RioCan REIT has become Canada’s ‘brand name’ in retail real estate. We rate RioCan’s units Outperform.”
-Neil Downey, CA, CFA RBC Capital Markets-Neil Downey, CA, CFA RBC Capital Markets
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“In today’s competitive retail marketplace, RioCan’s focus on the value and discount sector, including big-box retailers, has allowed it to outperform the more traditional retail formats. We are maintaining our BUY recommendation.”
-Harry Rannala Raymond James-Harry Rannala Raymond James
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“RioCan offers stable income and growth potential with a capable in-house management and a clear shopping centres focus. We rate the units as Buy.”
-Rossa O’Reilly, CFA CIBC World Markets-Rossa O’Reilly, CFA CIBC World Markets
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“We believe RioCan remains among the best operators, with limited competition and strong partners across our coverage universe. We are maintaining our Outperform rating and target price of $13.”
-Ron Rimer, CA BMO Nesbitt Burns Research-Ron Rimer, CA BMO Nesbitt Burns Research
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“We continue to rate REI an Intermediate-term Buy, and Long-term Strong Buy. We anticipate that investors should earn a low to mid-teens total return over twelve months.”
-Louis Forbes, Director Merrill Lynch-Louis Forbes, Director Merrill Lynch
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Assets of $2.8 billion.
Almost 150 shopping centres.
$400 million gross revenue.
3,500 tenants.
23 million square feet of retail.
Assets of $2.8 billion.
Almost 150 shopping centres.
$400 million gross revenue.
3,500 tenants.
23 million square feet of retail.
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Quality Of RevenueQuality Of RevenueCurrentCurrent 20002000 19991999 19981998
National & National & Anchor Tenants Anchor Tenants as % of Gross as % of Gross RevenueRevenue
76.4% 75.7% 73.0% 70.9%
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Top Sources Of Revenue By TenantAs Of March 31, 2002
Top Sources Of Revenue By TenantAs Of March 31, 2002
TenantTenant % of Revenue% of Revenue Weighted Average Weighted Average Remaining Lease Remaining Lease Term (Yrs)Term (Yrs)
1. Wal-Mart 5.6% 14.9
2. A&P 5.1% 11.3
3. Zellers 5.1% 12.4
4. Famous Players 4.1% 19.0
5. Loblaws Co. 3.8% 8.9
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Future GrowthFuture Growth Acquisitions. New Developments. Redevelopments. Generate more income from
existing assets.
Acquisitions. New Developments. Redevelopments. Generate more income from
existing assets.
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Future Growth – AcquisitionsFuture Growth – Acquisitions
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Acquisition of close to $1 billion in 2002.
Acquisition of close to $1 billion in 2002.
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Future Growth – AcquisitionsFuture Growth – Acquisitions 2.5 million square feet.
$354 million.
1.3 million square feet.
2.5 million square feet.
$354 million.
1.3 million square feet.
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Future Growth – DevelopmentTrinity Common
Future Growth – DevelopmentTrinity Common
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Future Growth – DevelopmentRioCentre Newmarket
Future Growth – DevelopmentRioCentre Newmarket
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Future Growth – DevelopmentRioCentre Oakville
Future Growth – DevelopmentRioCentre Oakville
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Future Growth – DevelopmentFuture Growth – Development
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Future Growth – DevelopmentMarketplace
Future Growth – DevelopmentMarketplace
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Future Growth – DevelopmentFuture Growth – Development
7 new projects.7 new projects.
1.2 million square feet.1.2 million square feet.
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Future Growth – DevelopmentFuture Growth – DevelopmentNewmarket
400,000 square feet Loblaws and Costco
Newmarket 400,000 square feet Loblaws and Costco
Dufferin & Steeles 250,000 square feet Loblaws
Dufferin & Steeles 250,000 square feet Loblaws
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Shoppers World BramptonShoppers World Brampton
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Shoppers World BramptonShoppers World Brampton
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Future Growth – RedevelopmentShoppers World Brampton
Future Growth – RedevelopmentShoppers World Brampton
$ 4.72 million
$ 8.5 million
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Purchase price $48 million.
Renovations of $22 million.
Yields 12% against cost.
Purchase price $48 million.
Renovations of $22 million.
Yields 12% against cost.
Future Growth – RedevelopmentShoppers World Brampton
Future Growth – RedevelopmentShoppers World Brampton
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Future Growth – Joint VentureFuture Growth – Joint Venture
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KimcoKimco
40 years of operation.
525+ shopping centres.
In 41 states and Canada.
70 million square feet of retail space.
40 years of operation.
525+ shopping centres.
In 41 states and Canada.
70 million square feet of retail space.
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RioCan/KimcoRioCan/Kimco1) Equity investment in RioCan of $26+
million.2) 50/50 joint venture for acquisition of
income properties in Canada. 16 shopping centres 3 million square feet Cost of $443 million
1) Equity investment in RioCan of $26+ million.
2) 50/50 joint venture for acquisition of income properties in Canada.
16 shopping centres 3 million square feet Cost of $443 million3) Access to American tenants.3) Access to American tenants.
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170,000
261,000
2001
2002
Q1 New Leases(Square Feet)Q1 New Leases(Square Feet)
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RioCan – Last YearRioCan – Last Year
Total Annual Return30.41%
Total Annual Return30.41%
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RioCan – This YearRioCan – This Year
Total Annual Return36.35%
Total Annual Return36.35%
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20.29%20.29%
Total Return on InvestmentSince IPO (8 Year Compounded Annual Return)
Total Return on InvestmentSince IPO (8 Year Compounded Annual Return)
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9.39%
20.29%
TSE 300
RioCan
Total Return on InvestmentSince IPO (8 Year Compounded Annual Return)
Total Return on InvestmentSince IPO (8 Year Compounded Annual Return)
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