RioCan Real Estate plans to sell approximately 100 properties, valued at over $2 billion, in phases over the next 2-3 years



  • RioCan plans to sell approximately 100 properties, valued at over $2 billion, in phases over the next 2-3 years, and to deploy asset sale proceeds such that they slightly improve debt leverage.
  • We are affirming our 'BBB' corporate credit and issue-level ratings on the real estate investment trust (REIT).
  • The stable outlook reflects our view that the proposed asset dispositions slightly improves the quality of the remaining asset portfolio, with a greater focus on Canada's six primary markets, but that this improvement is largely offset by our expectation for a larger development pipeline as a percentage of assets over the next two years.

  • Proposed asset dispositions slightly improves the remaining asset portfolio 
    quality, with a greater focus on the six primary markets in Canada while 
    maintaining solid scale relative to key peers. This improvement in asset 
    quality is somewhat offset by our expectation for a larger development 
    pipeline as a percentage of assets over the next two years. We project that 
    the net cash proceeds from the asset sales will contribute to modest 
    improvement in credit protection measures, as they are earmarked to pay down 
    debt and fund future development along with share repurchases. However, the 
    improvement is not significant enough to warrant any positive ratings 
    momentum.