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Toronto Star
4 minutes ago
- Toronto Star
VitalHub Reports Second Quarter 2025 Results
Annual Recurring Revenue (ARR)(1) up 55% YoY to $79.6 million Total Revenue up 47% YoY to $23.9 million Adjusted EBITDA(1) up 50% YoY to $6.3 million TORONTO, Aug. 07, 2025 (GLOBE NEWSWIRE) — Vitalhub Corp. (TSX:VHI) (OTCQX:VHIBF) (the 'Company' or 'VitalHub') announced today it has filed its Interim Condensed Consolidated Financial Statements and Management's Discussion and Analysis report for the three and six months ended June 30, 2025 with the Canadian securities authorities. These documents may be viewed under the Company's profile at 'Momentum continued in the second quarter with annual organic ARR(1) growth of 14% and 26% adjusted EBITDA(1) margin,' said Dan Matlow, CEO of VitalHub. 'We have worked hard to integrate all 2024 acquisitions that we are building toward our targeted consolidated financial profile. We recently closed the larger acquisitions of Canada-based Novari and UK-based Induction. These add established electronic referral, surgical wait list management, and patient engagement solutions to the VitalHub patient flow suite. Inclusive of all activity to date, we have over $40 million of cash and over $90 million of ARR(1), providing the flexibility and scale to continue expanding internationally.' VitalHub's quarterly investor conference call will take place on Friday, August 8, 2025, at 9:00AM EST. To register for the conference call please visit: ARTICLE CONTINUES BELOW Second Quarter 2025 Highlights ARR(1) as at June 30, 2025 was $79,589,081 as compared to $73,687,666 at March 31, 2025, an increase of $5,901,415 or 8%.Over the previous quarter, ARR(1) movement in Q2 2025 from Q1 2025 was attributable to the following: Organic growth of $1,860,849 or 3%. Acquisition growth of $3,870,000 or 5%. Gain of $170,566 due to fluctuations in foreign exchange rates. ARR(1) as at June 30, 2025 was $79,589,081 as compared to $73,687,666 at March 31, 2025, an increase of $5,901,415 or 8%.Over the previous quarter, ARR(1) movement in Q2 2025 from Q1 2025 was attributable to the following: Organic growth of $1,860,849 or 3%. Acquisition growth of $3,870,000 or 5%. Gain of $170,566 due to fluctuations in foreign exchange rates. Revenue of $23,857,548 as compared to $16,237,605 in the equivalent prior year period, an increase of $7,619,943 or 47%. From the date of closing to June 30, 2025, Induction contributed revenue of $480,383. ARR(1) as at June 30, 2025 was $79,589,081 as compared to $73,687,666 at March 31, 2025, an increase of $5,901,415 or 8%.Over the previous quarter, ARR(1) movement in Q2 2025 from Q1 2025 was attributable to the following: Organic growth of $1,860,849 or 3%. Acquisition growth of $3,870,000 or 5%. Gain of $170,566 due to fluctuations in foreign exchange rates. Revenue of $23,857,548 as compared to $16,237,605 in the equivalent prior year period, an increase of $7,619,943 or 47%. From the date of closing to June 30, 2025, Induction contributed revenue of $480,383. Gross profit as a percentage of revenue was 81% in Q2 2025 and Q2 2024. Net income before income taxes of $2,255,226 as compared to $1,383,605 in the equivalent prior year period, an increase of $871,621 or 63%. EBITDA(1) of $3,599,683 as compared to $1,972,452 in the equivalent prior year period, an increase of $1,627,231 or 82%. Adjusted EBITDA(1) of $6,304,647 or 26% of revenue, as compared to $4,193,985 or 26% of revenue in the equivalent prior year period, an increase of $2,110,662 or 50%. Six Month 2025 Highlights ARR(1) as at June 30, 2025 was $79,589,081 as compared to $51,283,570 at June 30, 2024, an increase of $28,305,511 or 55%.Over the previous year, ARR(1) movement in Q2 2025 from Q2 2024 was attributable to the following: Organic growth of $7,329,129 or 14%. Acquisition growth of $18,470,000 or 36%. Gain of $2,506,382 due to fluctuations in foreign exchange rates. ARR(1) as at June 30, 2025 was $79,589,081 as compared to $51,283,570 at June 30, 2024, an increase of $28,305,511 or 55%.Over the previous year, ARR(1) movement in Q2 2025 from Q2 2024 was attributable to the following: Organic growth of $7,329,129 or 14%. Acquisition growth of $18,470,000 or 36%. Gain of $2,506,382 due to fluctuations in foreign exchange rates. Revenue of $45,532,514 as compared to $31,494,396 in the equivalent prior year period, an increase of $14,038,118 or 45%. Gross profit as a percentage of revenue was 81% in the first six months of 2025 and 2024. Net income before income taxes of $3,742,639 as compared to net income before income taxes of $3,362,500 in the equivalent prior year period, a increase of $380,139 or 11%. EBITDA(1) of $6,750,057 compared to $5,071,468 in the prior year, an increase of $1,678,589 or 33%. Adjusted EBITDA(1) of $11,919,333 or 26% of revenue, compared to $8,238,917 or 26% of revenue in the equivalent prior year period, an increase of $3,680,416 or 45%. Cash on hand as at June 30, 2025 was $94,008,665 compared to $56,574,904 as at December 31, 2024. The Company arranged a $15,000,000 loan to finance an acquisition and fully repaid the balance subsequent to quarter-end. On July 4, 2025, the Company acquired all of the issued and outstanding shares of Novari Health Inc. and its subsidiaries ('Novari') for total consideration of approximately $35.8 million in cash and the issuance of 733,726 common shares of VitalHub. Novari's platform offers a series of integrated software modules providing referral management, surgical wait list management, central intake, and care coordination. With the addition of the ARR(1) of Novari subsequent to the quarter, the Company's pro forma ARR(1) as at June 30, 2025, is approximately $91.6 million. (1) Non-IFRS measure. Disclaimers and reconciliations can be found in SEDAR filings. About VitalHub VitalHub is a leading software company dedicated to empowering health and human services providers globally. VitalHub's comprehensive product suite includes electronic health records, operational intelligence, and workforce automation solutions that serve over 1,000 clients across the UK, Canada, and other geographies. The Company has a robust two-pronged growth strategy, targeting organic opportunities within its product suite and pursuing an aggressive M&A plan. VitalHub is headquartered in Toronto with over 500 employees globally, across key regions and the VitalHub Innovations Lab in Sri Lanka. For more information about VitalHub (TSX:VHI) (OTCQX:VHIBF), please visit and LinkedIn. Contact Information Christian Sgro, CPA, CA, CFA Head of IR and M&A Specialist (365) 363-6433 Dan Matlow Chief Executive Officer, Director (416) 727-9061 Cautionary Statement Certain statements contained in this news release may constitute 'forward-looking information' or 'financial outlook' within the meaning of applicable securities laws that involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking information or financial outlook. Often, but not always, forward-looking statements can be identified by the use of words such as 'plans', 'is expected', 'expects', 'scheduled', 'intends', 'contemplates', 'anticipates', 'believes', 'proposes' or variations (including negative variations) of such words and phrases, or state that certain actions, events or results 'may', 'could', 'would', 'might' or 'will' be taken, occur or be achieved. Such statements are based on the current expectations of the management of each entity and are based on assumptions and subject to risks and uncertainties. Although the management of each entity believes that the assumptions underlying these statements are reasonable, they may prove to be incorrect. Although the Company has attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results to differ from those anticipated, estimated or intended. No forward-looking statement can be guaranteed. Except as required by applicable securities laws, forward-looking statements speak only as of the date on which they are made and the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.
National Post
4 minutes ago
- National Post
RioCan Announces Strong Second Quarter Results - Continued Operational Excellence and Strategic Capital Recycling Advancements
Article content TORONTO — RioCan Real Estate Investment Trust ('RioCan' or the 'Trust') (TSX: announced today its financial results for the three and six months ended June 30, 2025. Article content 9.3% growth of FFO per unit to $0.47 Capitalizing on mark-to-market opportunities, generated new leasing spreads of 51.5%; blended leasing spreads of 20.6% Closed four previously announced firm sales of RioCan Living ™ assets, bringing total RioCan Living asset dispositions to five; total year-to-date closed dispositions of $230 million at an average capitalization rate of 4.3% Article content Article content 'RioCan delivered another quarter of strong results and sustained leasing momentum, highlighted by exceptional leasing spreads and a high retention rate. The continued demand from high-quality retailers underscores the strength of the RioCan portfolio and reinforces our position as the landlord of choice,' said Jonathan Gitlin, President and CEO of RioCan. 'We continue to simplify our business, progress our capital recycling initiatives, and successfully execute our de-leveraging plan. These initiatives sharpen the operational focus of the Trust and enhance our financial flexibility to drive sustained growth.' Article content FFO per unit increased to $0.47, up $0.04 or 9.3% from the same period last year. This growth was driven by strong operating performance, reduced G&A expenses, accretion from unit buybacks in the current year and higher residential inventory gains. Higher interest expense partially offset these increases in FFO. Net income per unit of $0.49 was $0.08 per unit higher than the same period last year, reflecting greater fair value gains of $15.9 million on investment properties, compared to $5.9 million in the prior year quarter, in addition to the items noted for FFO above. Adjusted Debt to Adjusted EBITDA 1 improved to 8.88x, ratio of unsecured to secured debt reached 61% to 39% and the FFO Payout Ratio 1 was 60.5%. RioCan's strong balance sheet, reinforced by $1.3 billion of Liquidity 1 and $9.0 billion in Unencumbered Assets 1, enables flexibility and optimization of capital allocation. Article content (i) Refer to the Outlook section of the Management Discussion and Analysis for the three and six months ended June 30, 2025 for further details. 1. A non-GAAP measurement. For reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release. Article content (i) Includes commercial portfolio only. Excludes income producing properties that are owned through joint ventures and reported under equity-accounted investments. (ii) Information presented as at respective periods then ended. (iii) At RioCan's Proportionate Share. Article content Leasing Progress: 1.3 million square feet were leased in the Second Quarter, including 1.2 million square feet of renewals. Leasing Spreads: In the Second Quarter, RioCan achieved a blended leasing spread of 20.6% with a new leasing spread of 51.5% and a renewal leasing spread of 17.4%, marking three consecutive quarters of leasing spreads at least in the high-teens. RioCan continued to capitalize on mark-to-market opportunities, achieving an average blended leasing spread of 23.5% on market deals. 72% of renewals were at market rates, while retaining high-quality essential retailers, including the renewal of eight grocery anchors in the quarter. The retention ratio of 91.6% reflects an effective balance between upgrading tenant quality and preserving strong tenancies, with elevated leasing spreads confirming the success of this strategy. Same Property NOI: Commercial Same Property NOI 1 growth was 2.0% in the Second Quarter. Excluding the impact of higher legal and CAM/property tax settlements and a provision reversal in the prior year, Commercial Same Property NOI growth is 4.0%. Full year guidance for SPNOI is unchanged at ~3.5%. Occupancy: RioCan's committed occupancy and retail committed occupancy were strong at 97.5% and 98.2%. Committed occupancy benefited from strong, more resilient retailers replacing transitional tenants who were paying under-market rents and offset the impact of recently vacated HBC units at Georgian Mall, Oakville Place and Tanger Ottawa. Our leasing team is actively working toward backfilling these units. Market Demographics: Average population and household income within a five-kilometre radius of RioCan's portfolio increased by 1% and 5% to 277,000 and $155,000, respectively from the previous year. RioCan Living – Residential Rental: Residential rental operations generated $9.0 million of NOI, an increase of $1.8 million or 25.0% over the same period last year. As of June 30, 2025, there are 14 buildings in operation with a total fair value of $1.1 billion. RioCan continues to execute on its strategy of unlocking the value in its residential portfolio. Refer to the Capital Recycling section in this News Release for further details. RioCan Living – Residential Condominium: The construction loan for U.C. Tower 2 & 3 was fully repaid in the Second Quarter. The outstanding balance on the 11YV construction loan was reduced to $3.6 million reflecting payments made through to August 7, 2025. As a result, as of August 7, 2025, RioCan's debt decreased by $124.2 million, and its outstanding guarantees related to 11YV declined by $298.0 million compared to Q1 2025. Full repayment of the remaining 11YV construction loan balance is expected in Q3 2025. Interim closings have commenced at Queen & Ashbridge and U.C. Tower 3. Adjusted G&A Expense as a percentage of rental revenue 1: Improved to 3.7% on a YTD basis, down from 4.1% from net G&A savings from the 2024 restructuring. Capital Recycling: As of August 7, 2025, closed dispositions totalled $230.4 million, aligning with IFRS values. For the six months ended June 30, 2025, we completed $53.0 million of lower-growth asset dispositions including the sale of a Cineplex-anchored property, a single-tenant property and part of an open-air retail site in Quebec. Subsequent to quarter end, RioCan closed four previously announced firm sales of its 50% interest in RioCan Living properties. Including Strada, which closed in 2024, five RioCan Living properties have been sold. RioCan has also entered into a conditional agreement for the sale of an additional RioCan Living asset. Normal Course Issuer Bid (NCIB): The Trust believes that the market price of its units does not fully reflect the underlying value and future prospects of its business, making purchasing its own units an attractive investment opportunity. During the six months ended June 30, 2025, the Trust acquired and cancelled 5.6 million Units at a weighted average price of $17.99 per unit for a cost of $100.1 million. Purchases were funded through proceeds from mortgages and other loan receivables repayments of $66.6 million received by the Trust during the Second Quarter, and the sale of two low-growth assets: RioCan Centre Vaughan, which closed in Q4 2024, and the aforementioned Cineplex-anchored property, which closed in Q1 2025. Investing: On April 1, 2025, RioCan acquired, upon stabilization, a 90% interest in Phase Two and Three of Market in Montreal, Quebec for the purchase price of $125.3 million. This acquisition was pursuant to a forward purchase agreement previously announced during the purchase of Phase One of the project in 2022. Balance Sheet and Liquidity: As of June 30, 2025, the Trust's Adjusted Debt to Adjusted EBITDA ratio improved to 8.88x from 8.98x at the end of 2024, in line with its target range of 8.0x – 9.0x. The Adjusted Spot Debt to Adjusted EBITDA ratio improved to 9.02x from 9.12x at the end of 2024, and we expect this metric to be well within the 8.0x – 9.0x range next quarter. The Trust has $1.3 billion of Liquidity to meet its financial obligations, including a $1.1 billion from its revolving unsecured operating line of credit. On June 23, 2025, the Trust enhanced its liquidity position by closing on a $200.0 million 5.3-year non-revolving unsecured credit facility, with a floating interest rate of 4.49%, which was negotiated on terms and pricing that is consistent with our revolving unsecured operating line of credit. On June 25, 2025, the maturity date of the revolving unsecured operating line of credit was extended to May 31, 2030 and certain covenants were amended to provide the Trust with additional operational and financial flexibility. The Trust's unencumbered asset pool increased to $9.0 billion at the end of the Second Quarter from $8.2 billion at the end of 2024 as the Trust progressed towards its target Ratio of Unsecured Debt to Total Contractual Debt 1. As of June 30, 2025, the Ratio of Unsecured Debt to Total Contractual Debt increased to 61% from 56% and the weighted average term to maturity of its debt portfolio was extended to 3.81 years from 3.72 years, both compared to the end of 2024 and on a proportionate share basis. The Trust continues to improve its mix of unsecured debt to total debt, growing its unencumbered asset pool. After factoring in the closed RioCan Living sales and repayment of maturing mortgages payable and construction lines subsequent to quarter end, RioCan's pro forma metrics on a proportionate share basis are as follows: Article content 1. A non-GAAP measurement. For reconciliations and the basis of presentation of RioCan's non-GAAP measures, refer to the Basis of Presentation and Non-GAAP Measures section in this News Release. Article content RC-HBC LP Article content On June 3, 2025, RC-HBC LP ('RC-HBC LP' or 'the LP') was transitioned into a court-approved receivership (the 'Receivership Proceedings'), which was a process requested by RioCan. RioCan is working with the receiver and other stakeholders to swiftly advance and execute solutions for the LP's properties to benefit the limited partners and its stakeholders. RioCan's net investment in the LP as at June 30, 2025 was $40.2 million or 0.5% of total RioCan's equity. Article content Changes to the Board of Trustees Article content Effective June 30, 2025, Richard Dansereau resigned from his position as a Trustee on RioCan's Board of Trustees. Mr. Dansereau's resignation follows his recent appointment to an executive role at Desjardins Global Asset Management, the terms of which do not permit him to serve on outside public Boards. 'On behalf of the entire Board, I want to extend our sincere gratitude to Richard for his years of dedicated service,' said Ed Sonshine, Chairman of the Board. 'Richard was deeply committed and brought expertise, thoughtful perspective and integrity to the Board. We wish him all the best in his future endeavors.' As a result of this resignation, RioCan's Board of Trustees is now comprised of nine members. Article content Conference Call and Webcast Article content Interested parties are invited to participate in a conference call with management on Friday, August 8, 2025 at 10:00 a.m. (ET). Participants will be required to identify themselves and the organization on whose behalf they are participating. To access the conference call, click on the following link to register at least 10 minutes prior to the scheduled start of the call: Pre-registration link. Participants who pre-register at any time prior to the call will receive an email with dial-in credentials including a login passcode and PIN to gain immediate access to the live call. Those that are unable to pre-register may dial-in for operator assistance by calling 1-833-950-0062 and entering the access code: 830267. For those unable to participate in the live mode, a replay will be available at 1-866-813-9403 with access code: 781825. To access the simultaneous webcast, visit RioCan's website at Events and Presentations and click on the link for the webcast. Article content About RioCan Article content RioCan meets the everyday shopping needs of Canadians through the ownership, management and development of necessity-based and mixed-use properties in densely populated communities. As at June 30, 2025, our portfolio is comprised of 178 properties with an aggregate net leasable area of approximately 32 million square feet (at RioCan's interest). To learn more about us, please visit Article content All figures included in this News Release are expressed in Canadian dollars unless otherwise noted. RioCan's unaudited interim condensed consolidated financial statements ('Condensed Consolidated Financial Statements') are prepared in accordance with International Financial Reporting Standards (IFRS). Financial information included within this News Release does not contain all disclosures required by IFRS, and accordingly should be read in conjunction with the Trust's Condensed Consolidated Financial Statements and MD&A for the three and six months ended June 30, 2025, which are available on RioCan's website at and on SEDAR+ at Consistent with RioCan's management framework, management uses certain financial measures to assess RioCan's financial performance, which are not in accordance with generally accepted accounting principles (GAAP) under IFRS. Funds From Operations ('FFO'), FFO per unit, Net Operating Income ('NOI'), Same Property NOI, Commercial Same Property NOI ('Commercial SPNOI'), FFO Payout Ratio, Adjusted G&A Expense as a percentage of rental revenue, Ratio of Unsecured Debt to Total Contractual Debt, Liquidity, Adjusted Debt to Adjusted EBITDA, Adjusted Spot Debt to Adjusted EBITDA, RioCan's Proportionate Share, Unencumbered Assets as well as other measures that may be discussed elsewhere in this News Release, do not have a standardized definition prescribed by IFRS and are, therefore, unlikely to be comparable to similar measures presented by other reporting issuers. RioCan supplements its IFRS measures with these Non-GAAP measures to aid in assessing the Trust's underlying performance and reports these additional measures so that investors may do the same. Non-GAAP measures should not be considered as alternatives to net income or comparable metrics determined in accordance with IFRS as indicators of RioCan's performance, liquidity, cash flow, and profitability. For full definitions of these measures, please refer to the ' Non-GAAP Measures ' section in RioCan's MD&A for the three and six months ended June 30, 2025. Article content As at June 30, 2025 December 31, 2024 (thousands of dollars) IFRS basis Equity- accounted investments RioCan's proportionate share IFRS basis Equity- accounted investments RioCan's proportionate share Assets Investment properties $ 13,931,551 $ 252,029 $ 14,183,580 $ 13,839,154 $ 425,690 $ 14,264,844 Equity-accounted investments 201,116 (201,116) — 408,588 (408,588) — Mortgages and loans receivable 359,506 (9,119) 350,387 470,729 (5,321) 465,408 Residential inventory 327,110 304,337 631,447 284,050 337,920 621,970 Assets held for sale 179,726 — 179,726 16,707 — 16,707 Receivables and other assets 310,012 30,179 340,191 262,573 77,571 340,144 Cash and cash equivalents 72,318 11,694 84,012 190,243 9,890 200,133 Total assets $ 15,381,339 $ 388,004 $ 15,769,343 $ 15,472,044 $ 437,162 $ 15,909,206 Liabilities Debentures payable $ 4,138,059 $ — $ 4,138,059 $ 4,088,654 $ — $ 4,088,654 Mortgages payable 2,427,292 154,348 2,581,640 2,851,602 160,701 3,012,303 Mortgages payable associated with assets held for sale 98,815 — 98,815 — — — Lines of credit and other bank loans 771,574 164,835 936,409 383,658 198,682 582,340 Accounts payable and other liabilities 604,334 68,821 673,155 589,792 77,779 667,571 Total liabilities $ 8,040,074 $ 388,004 $ 8,428,078 $ 7,913,706 $ 437,162 $ 8,350,868 Equity Unitholders' equity 7,341,265 — 7,341,265 7,558,338 — 7,558,338 Total liabilities and equity $ 15,381,339 $ 388,004 $ 15,769,343 $ 15,472,044 $ 437,162 $ 15,909,206 Article content The following tables reconcile the consolidated statements of income from IFRS to RioCan's proportionate share basis for the three and six months ended June 30, 2025 and 2024: Article content Three months ended June 30 2025 2024 (thousands of dollars) IFRS basis Equity- accounted investments RioCan's proportionate share IFRS basis Equity- accounted investments RioCan's proportionate share Revenue Rental revenue $ 291,254 $ 7,173 $ 298,427 $ 275,863 $ 8,089 $ 283,952 Residential inventory sales 66,333 33,899 100,232 12,866 6,914 19,780 Property management and other service fees 4,067 (389) 3,678 3,469 (348) 3,121 361,654 40,683 402,337 292,198 14,655 306,853 Operating costs Rental operating costs Recoverable under tenant leases 101,934 806 102,740 91,021 806 91,827 Non-recoverable costs 10,896 3,302 14,198 7,889 638 8,527 Residential inventory cost of sales 48,624 27,018 75,642 7,600 5,412 13,012 161,454 31,126 192,580 106,510 6,856 113,366 Operating income 200,200 9,557 209,757 185,688 7,799 193,487 Other income (loss) Interest income 9,671 92 9,763 10,839 438 11,277 Income from equity-accounted investments 4,809 (4,809) — 2,115 (2,115) — Fair value gain (loss) on investment properties, net 15,929 (1,570) 14,359 5,887 (1,810) 4,077 Investment and other income (loss), net 1,155 (1,346) (191) 609 (1,378) (769) 31,564 (7,633) 23,931 19,450 (4,865) 14,585 Other expenses Interest costs, net 69,989 1,855 71,844 64,393 2,867 67,260 General and administrative 11,346 20 11,366 14,611 24 14,635 Internal leasing costs 3,242 — 3,242 3,092 — 3,092 Transaction and other costs 1,572 49 1,621 679 43 722 86,149 1,924 88,073 82,775 2,934 85,709 Income before income taxes $ 145,615 $ — $ 145,615 $ 122,363 $ — $ 122,363 Net income $ 145,615 $ — $ 145,615 $ 122,363 $ — $ 122,363 Article content Six months ended June 30 2025 2024 (in thousands) IFRS basis Equity- accounted investments RioCan's proportionate share IFRS basis Equity- accounted investments RioCan's proportionate share Revenue Rental revenue $ 587,995 $ (8,177) $ 579,818 $ 564,243 $ 16,262 $ 580,505 Residential inventory sales 121,275 57,093 178,368 23,334 77,931 101,265 Property management and other service fees 8,215 (779) 7,436 8,008 (597) 7,411 717,485 48,137 765,622 595,585 93,596 689,181 Operating costs Rental operating costs Recoverable under tenant leases 211,929 1,770 213,699 202,220 1,731 203,951 Non-recoverable costs 21,296 5,066 26,362 16,640 1,343 17,983 Residential inventory cost of sales 81,981 48,372 130,353 14,622 62,934 77,556 315,206 55,208 370,414 233,482 66,008 299,490 Operating income (loss) 402,279 (7,071) 395,208 362,103 27,588 389,691 Other income (loss) Interest income 21,073 595 21,668 19,786 1,075 20,861 Income (Loss) from equity-accounted investments (199,257) 199,257 — 18,821 (18,821) — Fair value gain (loss) on investment properties, net 1,151 (154,059) (152,908) 9,138 (2,202) 6,936 Investment and other income (loss), net 3,579 (34,384) (30,805) 3,639 (1,831) 1,808 (173,454) 11,409 (162,045) 51,384 (21,779) 29,605 Other expenses Interest costs, net 136,669 4,428 141,097 125,832 5,902 131,734 General and administrative 21,739 36 21,775 28,527 25 28,552 Internal leasing costs 6,498 — 6,498 6,685 — 6,685 Transaction and other costs 2,460 (126) 2,334 2,278 (118) 2,160 167,366 4,338 171,704 163,322 5,809 169,131 Income before income taxes $ 61,459 $ — $ 61,459 $ 250,165 $ — $ 250,165 Current income tax recovery — — — (794) — (794) Net income $ 61,459 $ — $ 61,459 $ 250,959 $ — $ 250,959 Article content NOI and Same Property NOI Article content The following table reconciles operating income to NOI and Same Property NOI to NOI for the three and six months ended June 30, 2025 and 2024: Article content Three months ended June 30 Six months ended June 30 (thousands of dollars) 2025 2024 2025 2024 Operating Income $ 200,200 $ 185,688 $ 402,279 $ 362,103 Adjusted for the following: Property management and other service fees (4,067) (3,469) (8,215) (8,008) Residential inventory gains (17,709) (5,266) (39,294) (8,712) Operational lease revenue from ROU assets, net (i) 2,317 1,783 4,656 3,478 NOI $ 180,741 $ 178,736 $ 359,426 $ 348,861 Article content (i) Includes $0.6 million and $1.2 million of straight-line rent from operational lease revenue from ROU assets for the three and six months ended June 30, 2025. Article content Three months ended June 30 Six months ended June 30 (thousands of dollars) 2025 2024 2025 2024 Commercial Commercial Same Property NOI $ 152,491 $ 149,571 $ 299,510 $ 291,617 NOI from income producing properties: Acquired (i) 27 13 1,770 1,496 Disposed (i) 733 2,242 1,753 4,880 760 2,255 3,523 6,376 NOI from completed commercial developments 10,819 11,044 22,072 20,582 NOI from properties under de-leasing (ii) 4,752 4,873 9,883 9,575 Lease cancellation fees 117 1,600 2,324 1,711 Straight-line rent adjustment (iii) 2,783 2,179 5,619 5,426 NOI from commercial properties 171,722 171,522 342,931 335,287 Residential Residential Same Property NOI 5,320 5,476 10,414 10,586 NOI from income producing properties: Acquired (i) 1,676 522 2,155 864 Disposed (i) 11 174 — 320 1,687 696 2,155 1,184 NOI from completed residential developments 2,012 1,042 3,926 1,804 NOI from residential rental 9,019 7,214 16,495 13,574 NOI $ 180,741 $ 178,736 $ 359,426 $ 348,861 Article content (i) Includes properties acquired or disposed of during the periods being compared. (ii) NOI from limited number of properties undergoing significant de-leasing in preparation for redevelopment or intensification. (iii) Includes $0.6 million and $1.2 million of straight-line rent from operational lease revenue from ROU assets for the three and six months ended June 30, 2025. Article content Three months ended June 30 Six months ended June 30 (thousands of dollars) 2025 2024 2025 2024 Commercial Same Property NOI $ 152,491 $ 149,571 $ 299,510 $ 291,617 Residential Same Property NOI 5,320 5,476 10,414 10,586 Same Property NOI $ 157,811 $ 155,047 $ 309,924 $ 302,203 Article content FFO Article content The following table reconciles net income attributable to Unitholders to FFO for the three and six months ended June 30, 2025 and 2024: Article content Three months ended June 30 Six months ended June 30 (thousands of dollars, except where otherwise noted) 2025 2024 2025 2024 Net income attributable to Unitholders $ 145,615 $ 122,363 $ 61,459 $ 250,959 Add back (deduct): Fair value (gains), net (15,929) (5,887) (1,151) (9,138) Fair value losses included in equity-accounted investments 1,570 1,810 154,059 2,202 Other RC-HBC LP Valuation Losses 154 — 56,450 — Internal leasing costs 3,242 3,092 6,498 6,685 Transaction losses on investment properties, net (i) 714 1,508 281 1,457 Transaction gains on equity-accounted investments — — — (31) Transaction costs on sale of investment properties 614 73 1,045 947 ERP implementation costs — 1,874 — 4,410 ERP amortization (434) (409) (868) (409) Change in unrealized fair value on marketable securities — 142 — 1,260 Current income tax recovery — — — (794) Operational lease revenue from ROU assets 1,914 1,427 3,821 2,772 Operational lease expenses from ROU assets in equity-accounted investments (18) (17) (36) (34) Capitalized interest related to equity-accounted investments (ii): Capitalized interest related to properties under development 53 117 92 249 Capitalized interest related to residential inventory 1,011 1,693 2,420 3,206 FFO $ 138,506 $ 127,786 $ 284,070 $ 263,741 Add back (deduct): Restructuring costs — — 255 646 FFO Adjusted $ 138,506 $ 127,786 $ 284,325 $ 264,387 FFO per unit – basic $ 0.47 $ 0.43 $ 0.96 $ 0.88 FFO per unit – diluted $ 0.47 $ 0.43 $ 0.96 $ 0.88 FFO Adjusted per unit – diluted $ 0.47 $ 0.43 $ 0.96 $ 0.88 Weighted average number of Units – basic (in thousands) 296,093 300,463 296,873 300,461 Weighted average number of Units – diluted (in thousands) 296,093 300,463 296,873 300,461 FFO for last four quarters $ 556,300 $ 532,053 Distributions paid for last four quarters $ 336,553 $ 327,471 FFO Payout Ratio 60.5% 61.5% Article content (i) Represents net transaction gains or losses connected to certain investment properties during the period. (ii) This amount represents the interest capitalized to RioCan's equity-accounted investment in WhiteCastle New Urban Fund 2, LP, WhiteCastle New Urban Fund 3, LP, WhiteCastle New Urban Fund 4, LP, WhiteCastle New Urban Fund 5, LP, RioCan-Fieldgate JV, RC (Queensway) LP, PR Bloor Street LP and RC Yorkville LP. This amount is not capitalized to development projects under IFRS but is allowed as an adjustment under REALPAC's definition of FFO. Article content Adjusted G&A Expense for the three and six months ended June 30, 2025 and 2024 are as follows: Article content (thousands of dollars, except where otherwise noted) Three months ended June 30 Six months ended June 30 2025 2024 Change 2025 2024 Change Total G&A expense – IFRS $ 11,346 $ 14,611 $ (3,265) $ 21,739 $ 28,527 $ (6,788) Add back (deduct): ERP implementation costs — (1,874) 1,874 — (4,410) 4,410 ERP amortization 434 409 25 868 409 459 Restructuring costs — — — (255) (646) 391 Adjusted G&A Expense – IFRS 11,780 13,146 (1,366) 22,352 23,880 (1,528) Add: G&A expense from equity- accounted investments 20 24 (4) 36 25 11 Adjusted G&A Expense – RioCan's proportionate share $ 11,800 $ 13,170 $ (1,370) $ 22,388 $ 23,905 $ (1,517) Rental revenue – IFRS 291,254 275,863 15,391 587,995 564,243 23,752 Add back (deduct): Rental revenue from equity-accounted investments 7,173 8,089 (916) (8,177) 16,262 (24,439) Write-off of straight-line rent receivable in RC-HBC LP — — — 23,300 — 23,300 Rental revenue – RioCan's proportionate share $ 298,427 $ 283,952 $ 14,475 $ 603,118 $ 580,505 $ 22,613 Adjusted G&A Expense as a percentage of rental revenue 4.0% 4.6% (0.6)% 3.7% 4.1% (0.4)% Article content Total Contractual Debt Article content The following table reconciles total debt to Total Contractual Debt as at June 30, 2025 and December 31, 2024: Article content As at June 30, 2025 December 31, 2024 (thousands of dollars) IFRS basis Equity- accounted investments RioCan's proportionate share IFRS basis Equity- accounted investments RioCan's proportionate share Debentures payable $ 4,138,059 $ — $ 4,138,059 $ 4,088,654 $ — $ 4,088,654 Mortgages payable 2,427,292 154,348 2,581,640 2,851,602 160,701 3,012,303 Lines of credit and other bank loans 771,574 164,835 936,409 383,658 198,682 582,340 Mortgages payable associated with assets held for sale 98,815 — 98,815 — — — Total debt $ 7,435,740 $ 319,183 $ 7,754,923 $ 7,323,914 $ 359,383 $ 7,683,297 Less: Unamortized debt financing costs, premiums and discounts on origination and debt assumed, and modifications (35,716) (344) (36,060) (35,490) (526) (36,016) Total Contractual Debt $ 7,471,456 $ 319,527 $ 7,790,983 $ 7,359,404 $ 359,909 $ 7,719,313 Article content Unsecured and Secured Debt Article content The following table reconciles Total Unsecured and Secured Debt to Total Contractual Debt as at June 30, 2025 and December 31, 2024: Article content As at June 30, 2025 December 31, 2024 (thousands of dollars, except where otherwise noted) IFRS basis Equity- accounted investments RioCan's proportionate share IFRS basis Equity- accounted investments RioCan's proportionate share Total Unsecured Debt $ 4,740,000 $ — $ 4,740,000 $ 4,300,000 $ — $ 4,300,000 Total Secured Debt 2,731,456 319,527 3,050,983 3,059,404 359,909 3,419,313 Total Contractual Debt $ 7,471,456 $ 319,527 $ 7,790,983 $ 7,359,404 $ 359,909 $ 7,719,313 Percentage of Total Contractual Debt: Unsecured Debt 63% 61% 58% 56% Secured Debt 37% 39% 42% 44% Total Unsecured Debt $ 4,740,000 $ — $ 4,740,000 Increase (decrease) subsequent to quarter end: Utilizing revolving unsecured line of credit to repay maturing mortgages payable 122,105 — 122,105 Net sales proceeds from assets held for sale (i) (71,972) — (71,972) Total Unsecured Debt – pro forma $ 4,790,133 $ — $ 4,790,133 Total Secured Debt $ 2,731,456 $ 319,527 $ 3,050,983 Decrease subsequent to quarter end: Mortgages payable associated with assets held for sale (101,378) — (101,378) Maturing mortgages repayment (122,105) — (122,105) Construction lines repayment — (7,274) (7,274) Total Secured Debt- pro forma $ 2,507,973 $ 312,253 $ 2,820,226 Total Contractual Debt – pro forma $ 7,298,106 $ 312,253 $ 7,610,359 Percentage of Total Contractual Debt – pro forma Unsecured Debt – pro forma 66% 63% Secured Debt – pro forma 34% 37% Article content (i) Sales proceeds net of mortgages payable associated with assets held for sale assumed by purchaser. Article content As at June 30, 2025, RioCan had approximately $1.3 billion of Liquidity as summarized in the following table: Article content As at June 30, 2025 December 31, 2024 (thousands of dollars) IFRS basis Equity- accounted investments RioCan's proportionate share IFRS basis Equity- accounted investments RioCan's proportionate share Undrawn revolving unsecured operating line of credit $ 1,060,000 $ — $ 1,060,000 $ 1,250,000 $ — $ 1,250,000 Undrawn construction lines and other bank loans 100,358 91,606 191,964 146,024 97,892 243,916 Cash and cash equivalents 72,318 11,694 84,012 190,243 9,890 200,133 Liquidity $ 1,232,676 $ 103,300 $ 1,335,976 $ 1,586,267 $ 107,782 $ 1,694,049 Article content Adjusted EBITDA Article content The following table reconciles consolidated net income attributable to Unitholders to Adjusted EBITDA: Article content Twelve months ended June 30, 2025 December 31, 2024 (thousands of dollars) IFRS basis Equity- accounted investments RioCan's proportionate share IFRS basis Equity- accounted investments RioCan's proportionate share Net income attributable to Unitholders $ 283,965 $ — $ 283,965 $ 473,465 $ — $ 473,465 Add (deduct) the following items: Income tax recovery: Current — — — (794) — (794) Fair value losses on investment properties, net 37,340 155,439 192,779 29,353 3,582 32,935 Total RC-HBC LP Valuation Losses 210,718 (154,268) 56,450 — — — Change in unrealized fair value on marketable securities (i) (5,908) — (5,908) (4,648) — (4,648) Internal leasing costs 13,106 — 13,106 13,293 — 13,293 Non-cash unit-based compensation expense 10,256 — 10,256 10,385 — 10,385 Interest costs, net 268,381 10,070 278,451 257,544 11,544 269,088 Debt prepayment cost, net 455 — 455 455 — 455 Restructuring costs 7,461 — 7,461 7,852 — 7,852 ERP implementation costs 958 — 958 5,368 — 5,368 Depreciation and amortization 1,349 — 1,349 1,450 — 1,450 Transaction (gains) losses on the sale of investment properties, net (ii) (1,284) (21) (1,305) 2 (52) (50) Transaction costs on investment properties 3,770 1 3,771 3,672 1 3,673 Operational lease revenue (expenses) from ROU assets 8,863 (71) 8,792 7,814 (69) 7,745 Adjusted EBITDA $ 839,430 $ 11,150 $ 850,580 $ 805,211 $ 15,006 $ 820,217 Article content (i) The fair value gains and losses on marketable securities may include both the change in unrealized fair value and realized gains and losses on the sale of marketable securities. By adding back the change in unrealized fair value on marketable securities, RioCan effectively continues to include realized gains and losses on the sale of marketable securities in Adjusted EBITDA and excludes unrealized fair value gains and losses on marketable securities in Adjusted EBITDA. (ii) Includes transaction gains and losses realized on the disposition of investment properties. Article content (i) Adjusted EBITDA is reconciled in the immediately preceding table. Article content Adjusted Spot Debt to Adjusted EBITDA ratio is calculated as follows: Article content As at June 30, 2025 December 31, 2024 (thousands of dollars, except where otherwise noted) IFRS basis Equity- accounted investments RioCan's proportionate share IFRS basis Equity- accounted investments RioCan's proportionate share Adjusted Spot Debt to Adjusted EBITDA Total debt outstanding $ 7,435,740 $ 319,183 $ 7,754,923 $ 7,323,914 $ 359,383 $ 7,683,297 Less: cash and cash equivalents (72,318) (11,694) (84,012) (190,243) (9,890) (200,133) Adjusted Spot Debt $ 7,363,422 $ 307,489 $ 7,670,911 $ 7,133,671 $ 349,493 $ 7,483,164 Adjusted EBITDA (i) $ 839,430 $ 11,150 $ 850,580 $ 805,211 $ 15,006 $ 820,217 Adjusted Spot Debt to Adjusted EBITDA 8.77 9.02 8.86 9.12 Article content (i) Adjusted EBITDA is on a rolling twelve-month basis. Article content Unencumbered Assets Article content The tables below summarize RioCan's Unencumbered Assets as at June 30, 2025 and December 31, 2024: Article content Forward-Looking Information Article content This News Release contains forward-looking information within the meaning of applicable Canadian securities laws. This information reflects RioCan's objectives, our strategies to achieve those objectives, as well as statements with respect to management's beliefs, estimates and intentions concerning anticipated future events, results, circumstances, performance or expectations that are not historical facts. Forward-looking information can generally be identified by the use of forward-looking terminology such as 'outlook', 'objective', 'may', 'will', 'would', 'expect', 'intend', 'estimate', 'anticipate', 'believe', 'should', 'plan', 'continue', or similar expressions suggesting future outcomes or events. Such forward-looking information reflects management's current beliefs and is based on information currently available to management. All forward-looking information in this News Release is qualified by these cautionary statements. Forward-looking information is not a guarantee of future events or performance and, by its nature, is based on RioCan's current estimates and assumptions, which are subject to numerous risks and uncertainties, including those described in the ' Risks and Uncertainties ' section in RioCan's MD&A for the three and six months ended June 30, 2025 and in our most recent Annual Information Form, which could cause actual events or results to differ materially from the forward-looking information contained in this News Release. Although the forward-looking information contained in this News Release is based upon what management believes are reasonable assumptions, there can be no assurance that actual results will be consistent with this forward-looking information. The forward-looking statements contained in this News Release are made as of the date hereof, and should not be relied upon as representing RioCan's views as of any date subsequent to the date of this News Release. Management undertakes no obligation, except as required by applicable law, to publicly update or revise any forward-looking information, whether as a result of new information, future events or otherwise. Article content Article content Article content
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B.C. debt grows 50 per cent in two years to $134b despite lower-than-expected deficit
Premier David Eby looks on as Minister of Finance Brenda Bailey tables her first budget in the legislative assembly at legislature in Victoria, B.C., on Tuesday, March 4, 2025. (Chad Hipolito / The Canadian Press) British Columbia is weighed down by rapidly growing debt despite a lower-than-forecasted deficit for 2024, something that Finance Minister Brenda Bailey said the government is working hard to address. But Bailey said the province needs to grow its revenue in addition to finding efficiencies in spending, a challenge in the economic uncertainty driven largely by tariffs imposed by the United States. With that backdrop, Bailey said current debt levels are necessary in the shorter-term to fund infrastructure such as hospitals, schools and transportation networks while the province works toward a longer-term solution. 'Yes, we are experiencing increased debt,' Bailey said Thursday during the release of B.C.'s public accounts for 2024-2025. 'And that reflects the fact that our government remains committed to ensuring that we support British Columbians, and we're going to continue to do that.' B.C.'s final deficit for the fiscal year came in at $7.3 billion, $564 million lower than the number projected in Budget 2024 and about $1.8 billion lower than the most recent third-quarter forecast. But provincial debt climbed to almost $134 billion, spiking 50 per cent in just two years. It includes a $23.7 billion boost in taxpayer-supported debt from the previous year, bringing the figure to $99.1 billion — an increase of more than 31 per cent. The Finance Ministry attributed the debt spike to the province having 'supported people through climate emergencies and high costs,' and Bailey said the province was working on an efficiency review to find spending cuts. But she said B.C. cannot rely on cuts and must increase revenue despite the current economic headwinds. 'There is no question that that challenge is more complex in the current trade environment,' she said. 'But British Columbia has everything we need to be successful. 'We have incredible natural resources. We have amazing skilled workers and we have incredibly determined entrepreneurs. And our task as government is to set those groups up for success. That is the work we're doing now.' B.C. Conservatives finance critic Peter Milobar said in a statement that the rising debt levels aren't being reflected in the level of support for the public, saying the government was 'racking up record levels of debt while delivering the worst public services in a generation.' 'This year alone, the NDP added $15.78 billion in new operating debt — and what do British Columbians have to show for it?" Milobar said. 'ERs are still closing, schools are crumbling, and ferries can't run on time.' 'David Eby isn't just borrowing more — he's making life more expensive for future generations while failing to fix anything today,' he said of B.C.'s premier. The public accounts show B.C.'s taxpayer-supported debt-to-GDP ratio was still lower than most other provinces at 23.2 per cent, compared with 41.6 per cent in Ontario, 41.9 per cent in Quebec and 22.1 per cent in Alberta. So-called self-supported debt, incurred by revenue-generating Crown corporations and other entities, also rose from $32.1 billion to $34.8 billion. Bailey said B.C. was able to report a lower-than-projected deficit largely due to revenue from the Insurance Corporation of British Columbia. But the higher revenues from ICBC and elsewhere, were offset by lower natural resource revenue, her ministry said. Bailey added that the deficit coming in lower than projected does not offer her any comfort. 'Let's be clear, it's a $7.3 billion deficit, and I take that very seriously,' she said. 'We have a lot of work to do ahead of us to get back to a path to balance, and that's the work that we're engaged in now.' Total revenue was about $2.5 billion higher than expected, while GDP grew by 1.2 per cent, lower than the Canadian average of 1.6 per cent. The ministry said the province spent a record $10.4 billion on infrastructure including roads, hospitals and schools. Among the projects were the Mills Memorial Hospital replacement in Terrace, the Broadway Subway in Vancouver, and high schools and student housing throughout the province. The unemployment rate was 5.6 per cent. 'While our work to improve our fiscal position is underway, it is clear that, despite challenging economic conditions, this government is making progress on the things that matter to British Columbians, Bailey said. The province is expected to release its first quarterly report for the current fiscal year on Sept. 15. Bailey's budget in March forecasted a record deficit of about $10.9 billion. This report by Chuck Chiang, The Canadian Press, was first published Aug. 7, 2025.
