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RioCan Cuts Ties With Five HBC JV Properties as Q2 Profit Climbs

Shifting to necessity-based retailers has lifted new lease rates by 20.6 percent

Overview

  • RioCan has elected not to fund five of the twelve joint-venture properties once leased to Hudson’s Bay, absolving itself of more than C$100 million in associated debt
  • All 12 Hudson’s Bay locations in the joint venture closed at the start of June following liquidation sales
  • The trust posted net income of C$145.6 million for the quarter ended June 30, up from C$122.3 million a year earlier, on revenue of C$361.7 million
  • Its retail portfolio maintained a 98.2 percent occupancy rate, compared with 98.3 percent in the same period last year
  • Lease renewals and new agreements delivered a 51.5 percent average spread on new leases, underscoring strong demand from top-tier necessity-based tenants