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RioCan Reports Quarterly Loss Following Hudson’s Bay Writedown

The real estate trust revises earnings guidance and postpones investor day as it navigates fallout from Hudson's Bay's financial troubles.

People cycle past the Hudson's Bay department store in downtown Montreal on Monday, March 17, 2025. THE CANADIAN PRESS/Christinne Muschi

Overview

  • RioCan posted a Q1 net loss of 28 cents per unit, down from a 43-cent profit in the same quarter last year, due to a C$208.8 million writedown tied to Hudson's Bay's creditor protection filing.
  • The trust revised its 2025 funds from operations guidance to $1.85–$1.88 per unit, reflecting the financial impact of the writedown.
  • RioCan holds a 22% stake in ten properties leased exclusively to Hudson’s Bay, with rent payments reduced and property futures uncertain.
  • Despite challenges, RioCan reported a 17.5% increase in lease renewal and new lease rates and maintained a 98.7% retail occupancy rate.
  • CEO Jonathan Gitlin highlighted the trust's secured loan positions with Hudson’s Bay, which rank ahead of other creditors, ensuring a clear path to value recovery.