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FOCUSED ON CANADA’S URBAN MARKETS CORPORATE PROFILE RioCan is Canada’s largest real estate investment trust with a total enterprise value of approximately $14.6 billion. RioCan owns and manages Canada’s largest portfolio of shopping centres, including ownership interests in 300 retail and mixed-use properties, with 15 properties under active development. RioCan THE has an aggregate net leasable area (NLA) of more than 46 million CANADIAN square feet. Concentrated in Canada’s six major markets of URBAN Toronto, Ottawa, Calgary, Edmonton, Montreal, and Vancouver, MARKETS RioCan is Canada’s pre-eminent real estate investment trust. RioCan creates spaces where we can all prosper. RioCan stays true to its founding principle of growth driven by insight to deliver a steady or increased distribution to our Unitholders. TABLE OF CONTENTS IFC CORPORATE PROFILE 1 THE CANADIAN URBAN MARKETS 2 CEO'S LETTER TO UNITHOLDERS 6 FOCUSED ON TORONTO, A CANADIAN URBAN MARKET 10 FOCUSED ON CALGARY, A CANADIAN URBAN MARKET 12 FOCUSED ON OTTAWA, A CANADIAN URBAN MARKET 14 PROPERTY PORTFOLIO 24 MANAGEMENT’S DISCUSSION AND ANALYSIS 95 FINANCIALS 137 CORPORATE INFORMATION 0_1 RIOCAN REAL ESTATE INVESTMENT TRUST ANNUAL REPORT 2016 Vancouver million THE 2.3 sq ft Greater Toronto CANADIAN Canada’s Area URBAN western-most million major market sq ft MARKETS represents 2.3 19.3 million square RioCan’s largest feet of leaseable market with Ottawa/Hull area under approximately 19 management for million square feet million RioCan. representing 1/3 6.5 sq ft of the portfolio. RioCan’s second largest market representing 6.5 million square feet and growing with dynamic projects like Gloucester City Centre. Calgary million 4.7 sq ft Edmonton RioCan’s largest Montreal market in Western million Canada with 4.7 3.3 sq ft million million square feet A vital hub of 3.6 sq ft of space under commerce and One of Canada’s most management. energy, RioCan has culturally vibrant markets 3.3 million square represents 3.6 million feet of leasable area square feet of leaseable under management. area for RioCan. CEO’S LETTER TO UNITHOLDERS FOCUSED EDWARD SONSHINE, O.ONT., Q.C. ON CANADA CHIEF EXECUTIVE OFFICER RioCan — We Are Where You Want To Be Our “focused on Canada” strategy is derived from our RioCan now, once again, has a dedicated focus on Canada, storied past. In the early 1990s, I envisioned the potential of where we began building the nation’s largest retail REIT a Canadian REIT: a security that trades on a major exchange nearly twenty-five years ago. With a total enterprise value and that invests in real estate directly, generating special tax of almost $15 billion, RioCan owns and manages Canada’s considerations for investors, coupled with growing foremost portfolio of shopping centres, and some of the distributions over time. A REIT provides Unitholders a premier mixed-use locations in the country, such as RioCan method of investing in real estate while obtaining the Yonge Eglinton Centre and the Yonge Sheppard Centre. benefits of professional management, diversification of RioCan controls an aggregate net leasable area of more properties and most importantly liquidity. Unitholders and than 46 million square feet focused in Canada’s six major the investment community were enthusiastic about the markets: Toronto, Ottawa, Calgary, Edmonton, Montreal, benefits of a REIT, and RioCan was listed on the Toronto and Vancouver. With annual rental revenue in excess of Stock Exchange in 1994. $1.1 billion, RioCan is Canada’s pre-eminent real estate investment trust. 2_3 RIOCAN REAL ESTATE INVESTMENT TRUST ANNUAL REPORT 2016 Rags Davloor President, Chief Operating Officer & Corporate Secretary I draw on more than 20 years of real estate and capital markets experience to implement RioCan’s strategic vision and oversee the operational success of the Trust. Growth Through Insight RioCan’s Urban Intensification – Creating Spaces With an initial portfolio of less than one million square feet, Where We Can All Prosper RioCan’s portfolio varied in property type and location. Urban transformation involves much more than bricks and Instead of a focus on Canada’s six major markets, the early mortar. Building better futures means seeing communities portfolio had an array of properties in primary, secondary for what they are, imagining what they can be, and and tertiary markets. implementing a plan, sometimes with selected partners, to get them there. This is how RioCan delivers for our tenants, Over a decade ago, we forecast significant population customers and unitholders alike. growth in Canada’s six major markets, so we targeted our portfolio accordingly by disposing of assets in secondary Today, we are witnessing the continuing demographic shift and tertiary markets while acquiring properties in the that RioCan anticipated—and planned for. Canada’s major primary markets. The powerful growth of annual rental markets are in the midst of major transformation in terms of revenue generated in these six markets validates our population growth and density, as well as investment in strategy. In 2004, these markets generated less than 60% of transit infrastructure. Accordingly, RioCan will add RioCan’s annual rental revenue. Today, this number has substantial value by intensifying our properties in selected increased to more than 75% of our annual rental revenue, locations that were acquired or developed years ago. and we anticipate achieving our 80% target within the next few years as projects within our present urban development To facilitate a large influx of people living, shopping, and portfolio are completed. working in densely populated areas, cities are upgrading their transit infrastructure. Land intensification is being RioCan’s success is aligned with that of our tenants, so mandated in the suburbs, especially in conjunction with management continuously assesses retail and demographic major transit infrastructure expansion. This shift towards trends to ensure that our properties are innovative and land use intensification is central to our expansion and leading-edge. That’s why RioCan properties are at the redevelopment strategies of creating mixed-use forefront of how people want to shop, live and work in the communities, near public transit in areas with compelling 21st century. Indeed, RioCan provides solutions that both demographic trends. address leading trends but also help define the communities of which we are a part. Jonathan Gitlin Senior Vice President, Investments & Residential As a key figure in the growth of RioCan, I now lead the Trust’s efforts to develop and implement our innovative residential and urban intensification initiatives. John Ballantyne Senior Vice President, Asset Management As one of RioCan’s longest serving executives, I lead the Trust’s asset management division, helping ensure that RioCan’s strategic vision for its properties are realized. Jeff Ross Senior Vice President, Leasing & Tenant Coordination As a key executive I ensure that our strategic goals are met by finding the right tenant for the right space, securing the success of our properties. RioCan’s development initiatives are central to our short- RioCan has a proud history delivering rewarding term and long-term planning. All our decisions on property opportunities for our tenants and unitholders. Using our acquisitions, development and management are based on combined decades of experience, RioCan delivers prosperity RioCan’s core competency: real estate. Our ability to scout for our stakeholders by making strategic decisions with prize properties, from the standpoints of location, integrity. At RioCan, we help shape the future, but as demographic trends and income levels, allow us to community stewards we have a responsibility to do it right, strategically acquire, operate, and develop jewels that will to wisely cultivate growth, and in so doing, take our shine brightly for tenants, residents, consumers and the stakeholders wherever they need to go. surrounding communities. As a major owner of limited and costly land in highly 2016: A Transformational Year desirable urban cores and suburban transit ways, RioCan In 2009, RioCan capitalized on a historic opportunity and intends to develop spaces that provide an optimal shopping expanded the portfolio into the United States, primarily in mix, often combining convenient and attractive living and, densely populated centres in the north east, as well as in on occasion, working opportunities. major cities in Texas. Acting in a responsible and fiscally RioCan has a long-term goal to develop more than 10,000 disciplined manner, RioCan partnered with established rental residential units in these high-demand markets parties on these early acquisitions, as a means of widening through its residential development initiative and already our scope of projects and mitigating risk. Once established, has several buildings under construction with the first we created our own operating platform in the United States. occupancies expected towards the end of 2018. By forging We added value to the portfolio by increasing occupancy alliances and partnerships on larger projects such as The and cash flow. Then, in 2016, RioCan capitalized on another Well featured in this report, RioCan mitigates some of the historically favourable opportunity: with property valuations risk in these capital-intensive developments. exceeding those in Canada and the significant rise in the American dollar, RioCan sold its American stake for US $1.9 billion, realizing net proceeds of approximately $1.2 billion Canadian. 4_5 RIOCAN REAL ESTATE INVESTMENT TRUST ANNUAL REPORT 2016 Danny Kissoon Senior Vice President, Operations I am responsible for RioCan’s properties adhering to high standards, assuring a safe environment for our tenants and shoppers alike. Andrew Duncan Senior Vice President, Developments I help RioCan implement its vision for its new assets regarding design, approvals, development, and ultimately construction. Qi Tang Senior Vice President, Finance & Acting Chief Financial Officer Using my extensive finance background, I assess RioCan’s forecasting, budgeting, process re-engineering, and financial reporting to ensure transparency and quality in our public reporting.

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