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Shopping mall owner RioCan REIT reports lower profits in second quarter

TORONTO – RioCan Real Estate Investment Trust (TSX:REI.UN), Canada’s largest owner of shopping malls, reported Friday a second-quarter profit of $117 million or 44 cents a unit, down from $127 million or 52 cents in the same period last year.

The Toronto-based Trust said its rental revenue for the quarter rose to $228.1 million from $203.5 million. Funds from operations, a measure of the trust’s business performance during the quarter, rose 12 per cent to $93 million as occupancy rates at quarter’s end stood at 97.5 per cent compared to 97 per cent at the same point last year.

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“RioCan’s acquisition platform remains on track to meet our objectives for the year. We continue to acquire quality properties in Canada and the United States, as well as expand our relationships in the United States,” president and CEO Edward Sonshine said in a statement.

“RioCan has been able to take advantage of historically low interest rates to generate solid growth through acquisitions, development, and increased occupancy and rents.”

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RioCan owns and manages Canada’s largest portfolio of shopping centres with ownership interests in a portfolio of 305 retail properties representing more than 73 million square feet. It also owns an 80 per cent stake in 35 retail centres in the United States.

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