Q4 2019 Earnings Call

February 20, 2020

Operator 3: Good day, ladies and gentlemen, and welcome to the RioCan Real Estate Investment Trust Q4 2019 Conference Call. At this time, all participants are in a listen-only mode. After management's presentation, there will be a question and answer session, and instructions will follow at that time. I would now like to hand the conference call over to Jennifer Suess, Senior Vice President and General Counsel. You may begin.

Operator: Good day, ladies and gentlemen, and welcome to the RioCan Real Estate Investment Trust Q4 2019 Conference Call. At this time, all participants are in a listen-only mode. After management's presentation, there will be a question and answer session, and instructions will follow at that time. I would now like to hand the conference call over to Jennifer Suess, Senior Vice President and General Counsel. You may begin.

At this time, all participants are in listen only mode.

After management's presentation, there will be a question and answer session and instructions will follow at that time.

I would now like to hand, the conference call over to Jennifer.

And your Vice President and General Counsel you may begin.

Jennifer Suess: Thank you, Jody, and good morning, everyone. I'm Jennifer Suess, Senior Vice President, General Counsel, and Corporate Secretary for RioCan. Before we begin, I would like to draw your attention to the presentation materials that we will refer to in today's call, which were posted together with the MD&A and financials on RioCan's website earlier this morning. Before turning the call over to Jonathan, I am required to read the following cautionary statement. In talking about our financial and operating performance, and in responding to your questions, we may make forward-looking statements, including statements concerning RioCan's objectives, its strategies to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, and intentions, and similar statements concerning anticipated future events, results, circumstances, performance, or expectations that are not historical facts.

He Joey and good morning, everyone I'm, Jennifer Davis Senior Vice President General Counsel in corporate Secretary for Riocan before we begin I would like to draw your attention to the presentation materials that we will refer to in today's call, which were posted together with the m. DNA in financials Unreal cans website earlier this morning before turning the call over to Jonathan I require to read the following costs.

And your statement and talking about our financial and operating performance and then responding to your questions. We may make forward looking statements, including statements concerning real cans objective, it's strategies to achieve those objectives as well as statements with respect to management believes plans estimates and intention and similar statements concerning anticipated future events result circumstance.

This is performance or expectations that are not historical fact these statements are based on our current estimates and assumptions and are subject to risks and uncertainties that could cause our actual results to differ materially from the conclusions and these forward looking statements.

Jennifer Suess: These statements are based on our current estimates and assumptions and are subject to risks and uncertainties that could cause our actual results to differ materially from the conclusions in these forward-looking statements. In discussing our financial and operating performance, and in responding to your questions, we will also be referencing certain financial measures that are not generally accepted accounting principles measures, GAAP, under IFRS. These measures do not have any standardized definition prescribed by IFRS and are therefore unlikely to be comparable to similar measures presented by other reporting issuers. Non-GAAP measures should not be considered as alternatives to net earnings or comparable metrics determined in accordance with IFRS as indicators of RioCan's performance, liquidity, cash flows, and profitability. RioCan's management uses these measures to aid in assessing the trust's underlying core performance and provides these additional measures so that investors may do the same.

Nothing or financial and operating performance and in responding to your questions. We will also be referencing certain financial measures that are not generally accepted accounting principle measures gap under I ever at.

Measures do not have any standardized definition prescribed by a breath and are therefore unlikely to be comparable to similar measures presented by other reporting it's yours non-GAAP measures should not be considered as alternative to net earnings or comparable metrics determined in accordance with <unk> I have already as indicators of reopened performance liquidity cash flows and profitability. We have have management uses these measures to aid in it.

I think the trust underlying core performance and provide these additional measures. So that investors may do the same additional information on the material risks that could impact our actual results and the estimates and assumptions, we applied and making these forward looking statements together with details on are used to non-GAAP financial measures can be found in the financial statements for the period ended December 31, 2019 and then.

Jennifer Suess: Additional information on the material risks that could impact our actual results and the estimates and assumptions we applied in making these forward-looking statements, together with details on our use of non-GAAP financial measures, can be found in the financial statements for the period ended December 31, 2019, and management's discussion and analysis related thereto as applicable, together with RioCan's most recent annual information form that are all available on our website and at www.sedar.com.

Judgments discussion and analysis related there too as applicable together with real cans. Most recent annual information form that are all available on our website at www dot seat our dotcom.

Thank you Jennifer and thanks, everyone for taking the time to hear about our operational highlights for 29 team Thankfully there were many.

Jonathan Gitlin: Thank you, Jennifer, and thanks to everyone for taking the time to hear about our operational highlights for 2019. Thankfully, there were many. 2019 was an important year for RioCan. We worked hard to shape Canada's preeminent major market portfolio. Our results reflect the benefits of 90% of our revenue coming from our strong properties in Canada's major markets. 52.4% of our revenue is now coming from the GTA. Now, how did we get here? As most of you know, we achieved the bulk of the transformation through an intensive disposition process that included the sale of over CAD 1.6 billion of largely secondary market properties. We complemented these dispositions with development completions and strategic acquisitions all in the major markets.

20, My opinion was an important year for Rio can we worked hard to shoot candidates preeminent major market portfolio. Our results reflect the benefits of 90% a revenue coming from our strong properties in Canada that Tom market, 52.4% of our revenue is now coming from the DTA.

How do we get here.

Most of you know we choose the bulk of the transformation through an intensive disposition process that Instagram included the sale of over $1.6 billion largely secondary market property.

We call them at that these dispositions with development completions and strategic acquisitions all in the major markets. So to put it simply we've repositioned our portfolio and because of that we set ourselves up for greater success now and into the future.

Jonathan Gitlin: Now, to put it simply, we've repositioned our portfolio, and because of this, we set ourselves up for greater success now and into the future. Retailers, office tenants, and residents appreciate the quality of our locations, and as a result, there's demand to be part of them. While there's no question the retail landscape is evolving and is full of challenges, RioCan is ideally suited to succeed in this environment. We're confident that our combination of strong locations, sound operating principles, and diversified revenue streams, along with the best team in Canada, will continue to generate growth. Now, to be more specific, we've evolved our inherently value-rich portfolio. It consists primarily of necessity-based retail and urban mixed-use properties. These properties are positioned in the transit corridors in some of Canada's most desirable high-density locations. Mixed-use, urban, and grocery-anchored centers account for more than 60% of our annual rent.

Retailers office tenants and residents reshape the quality of our locations and as a result, there's demand to be part of the well. There's no question. The retail landscape is evolving it was full of challenges Rio can is ideally suited to succeed in this environment, we're confident that our combination strong locations sound operating principle.

Okay and diversified revenue stream along with the best team in Canada will continue to generate growth the be more specific.

Vaults are inherently valley rich portfolio. It consists primarily of necessity based retail and urban mix use properties. These properties are positioned in the transit corridors and some of Canada's most desirable high density locations mixed use urban in grocery anchored centers account for more than 60% of our annual rent.

Jonathan Gitlin: These asset classes are attractive to a growing customer base. They are also compelling to the strongest tenants. Further, our tenant portfolio consists primarily of retailers from sectors that have demonstrated resilience and growth. 74.5% of our revenue is derived from necessity-based and service-oriented tenants. 50.2% of our tenants are in the grocery, pharmacy, liquor, restaurant, or service sector. We've reduced our exposure to the more Internet sensitive tenants, such as department stores and apparel, to less than 8.5% of our total revenue. Our locations are desirable, and because of this, our major market properties deliver consistently strong results. We ended the year with 2.5% same property NOI growth and 97.7% occupancy, plus an extremely healthy leasing spread of 9.7%.

These asset classes are attractive to a growing customer base. There are also compelling to the strongest tenants. Further are kinda portfolio consists primarily of retailers from sectors that have demonstrated resilience and growth 74, and a half for some of our revenue is derived from necessity based on service oriented tenants.

50.2% of our tenants are in the grocery pharmacy liquor restaurant or service sector, we've reduced our exposure to the more internet sensitive tenants such as department stores and apparel for less than eight now for some of our total revenue.

Our locations are desirable and because of this our major market properties deliberate consistently strong results. We ended the year with 2.5% same property NOI growth and 97.7% occupancy plus an extremely healthy leasing spread of 9.7%.

Jonathan Gitlin: I'm also thrilled to report on the success of the first two RioCan Living residential rental buildings, eCentral here in Toronto and Frontier in Ottawa. Frontier has now stabilized a year after opening, with rents that are higher than pro forma. We've leased 97% of that building, and eCentral is 86% leased and is expected to achieve stabilization in the next few months. In their first year of lease-up, these two towers generated residential rental NOI of CAD 2.4 million. The stabilized NOI between the two properties is expected to be approximately CAD 13.3 million at RioCan's interest. The success we've achieved with our first foray into residential validates RioCan's instincts regarding the demand for quality, well-located rental residential within these mixed-use communities. We see these two residential properties as emblematic of our numerous residential developments that are nearly complete.

I'm also thrilled to report on the success of the first two riocan living residential rental building east central here in Toronto and frontier in Ottawa.

Frontier has now stabilized the Europe for opening with rents that are higher than pro forma.

97% about building and he central was 86 with families is expected to achieve stabilization in the next few months.

In their first year of lease up these two towers generated residential rental I know why of $2.4 million the stabilized NOI between the two properties is expected to be approximately $13.3 million I REO cans interest. The success, we've achieved with our first foray into residential validates Rio Kansas.

Thanks regarding the demand for quality well located rental residential within these makes these communities.

We see these two residential properties as emblematic of our numerous residential developments that are nearly complete.

Jonathan Gitlin: We're gonna implement the best practices learned from our first two residential projects and apply them to all our future RioCan Living properties. We're also looking ahead to ensure continuous growth through our sustainable development pipeline. As we complete developments, we break ground on new ones, achieve zoning on others, and initiate the zoning approval process on still more. It's a virtuous cycle. The cycle was well demonstrated by RioCan's development team through 2019. We completed approximately 530,000 sq ft of new development GLA. We increased our development pipeline by 2.8 million sq ft, and we ended the year with 29 million sq ft of development potential. With this pipeline, our balance sheet, and our great team, RioCan will continue to unlock the significant value that's inherent in our existing assets.

We're going to implement the best practices learnt from our first two residential projects and apply them all or future Riocan living properties.

We're also looking ahead to ensure continuous growth through a sustainable development pipeline as we complete development, we break ground on new ones achieve zoning on others and initiate the zoning approval process on still more it's a virtuous cycle.

The cycle was well demonstrated by Rio cans development team through 2019, we completed approximately 530000 square feet of new development GL, a we increased our development pipeline by 2.8 million square feet and we ended the year with 29 million square feet of development potential with.

This pipeline, our balance sheet and our great team real Ken will continue to unlock the significant value that's inherent in our existing assets and in so doing we're going to continue to improve the profile of our portfolio, we're going to add substantial net asset value and as well diversifying our sources of revenue. Moreover, we got to earn.

Jonathan Gitlin: In so doing, we're gonna continue to improve the profile of our portfolio. We're gonna add substantial net asset value and as well diversify our sources of revenue. Moreover, we get to earn income from our properties while we wait to develop them. The transformation of our portfolio will take further strides forward in 2020. We're gonna commence operations at 5th & Third, our mixed-use project in Calgary. We're gonna start leasing units at Pivot, the 36-story, 361-unit residential rental tower at Yonge and Sheppard in Toronto, as well in Brio, the 12-story, 163-unit rental residential tower in Calgary. We're planning on breaking ground on 11 YV, our Yorkville condominium project here in Toronto, which I should add, recently won the Multifamily Community of the Year Award by the National Association of Home Builders.

Income from our properties, while we wait to develop.

The transformation of our portfolio will take further stride forward and 2020, we're going to commence operations it fits and third our mixed use project in Calgary, we're going to start leasing units a pivot. The 36 storey 361 unit residential rental power, a young and shepherding trial as well embryo the 12 story.

163 unit rental residential tower in Calgary, we're planning on breaking ground on 11, why be our York full condominium project, you're in Toronto, which I should add recently won the multifamily community of the Euro Award by the National Association of Homebuilders.

Jonathan Gitlin: We'll also complete the first phase of construction of the commercial portion of Windfields Farm in Oshawa, and we'll commence construction on the condo tower along with our partners at Tribute Communities. This condo tower is 503 units that are currently about 75% pre-sold, and it's expected to generate value creation in the range of 17% to 20% at our interest. The construction of an additional 153 condo townhouses in the same area will also start in 2020. Now, before I hand the call over to Qi, I wanna highlight the important progress we've made this year in delivering on our sustainability goals. We successfully executed key sustainability milestones, including publishing our first sustainability report. We improved our global real estate sustainability benchmark assessment score, well, that's a mouthful, by 77% over our 2017 score.

Well also complete the first phase of construction of the commercial portion of Winfield farm in offshore and will commence construction on the Colorado tower, along with our partner to attribute communities. This condo towers 503 units that are currently about 75% preschool and it's expected to generate value creation in the range of 17 to 20.

<unk> at our interests.

The construction of an additional 153 condo town houses in the same area will often start paying 2020 now before I hand, the call over to tree I want to highlight the important progress. We've made this year and delivering on our sustainability goals, we successfully executed key sustainability milestones.

Including publishing our first sustainability report.

We improved our global real estate sustainability benchmark assessment score well, that's a mouthful by 77% over our 2017 score from a development perspective, the N. wave deep link water cooling system at the well is becoming a reality the big hole that will house 7.6 million liters of water.

Jonathan Gitlin: From a development perspective, the Enwave deep lake water cooling system at The Well is becoming a reality. The big hole that will house 7.6 million liters of water is fully dug. The energy output from the water in that tank will be supplied to the entire Downtown West district and ease the load on the electricity grid. Meanwhile, Frontier Rental Residential is using a high-efficiency geothermal system that reduces carbon emissions and saves on water and electricity use. I would also like to mention the continuous improvement demonstrated by our operations team. With a renewed focus on utilizing our scale and national presence, we're seeing significant operating cost savings. In reducing these operating costs, we can maintain gross occupancy costs for our tenants and allow those savings to be allocated toward net rents.

Her is fully Doug the energy output from the water and not tax will be supplied to the entire downtown West district, and ease the load on the electricity grid. Meanwhile, frontier rental residential is using a high efficiency geothermal system that reduces carbon emissions and save on water and electricity use.

I would also like to mention the continuous improvement demonstrated by our operations team with a renewed focus on utilizing our scale and national presence, we're seeing significant operating cost savings and reducing these operating costs. We can maintain a gross occupancy costs for our attendance and allow those savings.

To be allocated toward that rents ultimately these savings are good for real can they are good for our tenants and they certainly contribute to sustainable growth.

Jonathan Gitlin: Ultimately, these savings are good for RioCan, they're good for our tenants, and they certainly contribute to sustainable growth. To wrap up, the desirability of RioCan's locations, its tenant mix, its proven operational excellence, the diversity of the revenue sources, and extensive pipeline of value creation opportunities leave us well-placed to drive unitholder value. On the back of these attributes, RioCan is well-positioned to achieve our goal of strong unitholder returns through ever-increasing FFO quality and continuous growth. Chi, over to you.

So to wrap up the desirability of real cans locations, it's tenant mix, it's proven operational excellence the diversity of the revenue sources and extensive pipeline of value creation opportunities leave us well placed to drive unit holder value.

On the back of these attributes riocan is well positioned to achieve our goal of strong utilizing returns through ever increasing apropos quality and continuous growth.

Over to you.

Qi: Thank you, Jonathan, and good morning, everyone. The Q4 was another successful quarter for RioCan. It contributed to a strong 2019 for the trust. RioCan reported FFO per unit of CAD 1.87, a CAD 0.02 increase over 2018. This increase was achieved despite the dilutive effect of CAD half a billion dispositions completed in 2019, and full year dilutive effect of nearly CAD 1 billion dispositions completed in 2018, CAD 35.6 million in lower realized marketable security gains, CAD 5 million in lower capitalized interest as a result of substantial development completions, and CAD 2.2 million in higher condominium marketing costs. These factors in aggregate negatively impacted this year's FFO per unit by about CAD 0.22.

Qi Tang: Thank you, Jonathan, and good morning, everyone. The Q4 was another successful quarter for RioCan. It contributed to a strong 2019 for the trust. RioCan reported FFO per unit of CAD 1.87, a CAD 0.02 increase over 2018. This increase was achieved despite the dilutive effect of CAD half a billion dispositions completed in 2019, and full year dilutive effect of nearly CAD 1 billion dispositions completed in 2018, CAD 35.6 million in lower realized marketable security gains, CAD 5 million in lower capitalized interest as a result of substantial development completions, and CAD 2.2 million in higher condominium marketing costs. These factors in aggregate negatively impacted this year's FFO per unit by about CAD 0.22.

Thank you Jonathan and good morning, everyone.

The fourth quarter. It was another successful quarter for real can it contributed to a strong 2019 father taught.

Real can reported AFFO per unit, how about dollar an 87 cents a two cents increase over 2018.

This increase was achieved despite the dilutive effect of half would be any dispositions completed in 2009 PM and full year diluted effect of nearly a bit in dispositions completed in 2018.

35.6, mini lower realized marketable security gain find many in the lower capitalized interest as a result of substantial development completion, and 2.2 meeting in higher condominium marketing costs.

These factors in aggregate.

Negatively impacted this years AFFO per units by about 22 cents.

Qi: A number of key growth drivers, however, more than offset these dilutive factors and led to the FFO per unit growth year over year. Such positive factors included higher residential inventory gains and NOI from our residential rental business, same property NOI growth, transaction gains from equity accounted investments, and lower G&A costs. As a result of the growth in FFO per unit, our FFO payout ratio further improved from 78% in 2018 to 77% in 2019. As at the year-end, our IFRS book value per unit grew to CAD 26.14, a 4% increase compared to 2018. There is significant NAV growth embedded in the trust development pipeline, which has yet to be reflected in our IFRS book value. Currently, the trust has the highest zoning entitlements among our peers based on available public information.

Qi Tang: A number of key growth drivers, however, more than offset these dilutive factors and led to the FFO per unit growth year over year. Such positive factors included higher residential inventory gains and NOI from our residential rental business, same property NOI growth, transaction gains from equity accounted investments, and lower G&A costs. As a result of the growth in FFO per unit, our FFO payout ratio further improved from 78% in 2018 to 77% in 2019. As at the year-end, our IFRS book value per unit grew to CAD 26.14, a 4% increase compared to 2018. There is significant NAV growth embedded in the trust development pipeline, which has yet to be reflected in our IFRS book value. Currently, the trust has the highest zoning entitlements among our peers based on available public information.

A number of key growth drivers however, more than offset these diluting factors I led to the AFFO per unit growth year over year.

Such positive factors included.

Higher residentially inventory gains and NOI from our residential rental business.

Same property NOI growth.

And actually gain from equity accounted the investments.

Lord DNA costs.

As a result of the grossing I sold per unit, our AFFO payout ratio further improved from 78% in 2018% to 77% in 2019.

I thought the yearend our eyes farce book value per unit grew to $26.40, a 4% increase compared to 2018.

There's significant NAV growth embedded in their trust development pipeline, which has yet to be effective I farce book value.

Actually the tried has the highest zoning and entitlement among our peers based on available public information.

Qi: Specifically, out of our 29 million sq ft development pipeline, 50% or 14.6 million sq ft is already zoned, and another 23% or 6.5 million sq ft have zoning applications submitted, representing a total of 73% of our pipeline. The trust has CAD 266 million of cumulative fair value or CAD 0.84 per unit recognized on the balance sheet relating to 3.6 million sq ft of incremental density for our projects with detailed cost estimates. This averages to about CAD 34 per incremental billable sq ft. To put things into perspective, the trust's current 29 million sq ft development pipeline includes 24.7 million sq ft of incremental density. This development pipeline relates to 61 projects out of our 220-property portfolio. Our pipeline will continue to grow as we identify more intensification projects.

Qi Tang: Specifically, out of our 29 million sq ft development pipeline, 50% or 14.6 million sq ft is already zoned, and another 23% or 6.5 million sq ft have zoning applications submitted, representing a total of 73% of our pipeline. The trust has CAD 266 million of cumulative fair value or CAD 0.84 per unit recognized on the balance sheet relating to 3.6 million sq ft of incremental density for our projects with detailed cost estimates. This averages to about CAD 34 per incremental billable sq ft. To put things into perspective, the trust's current 29 million sq ft development pipeline includes 24.7 million sq ft of incremental density. This development pipeline relates to 61 projects out of our 220-property portfolio. Our pipeline will continue to grow as we identify more intensification projects.

Specifically.

Some of our 29 million square feet development pipeline.

80%, all 14.6 million square feet he's already zone.

And another 23% all 6.5 million square feet have zoning application submitted it.

Representing a total of 73% our pipeline.

The trucks has 266 million of cumulative fair value Oh 84 cents per unit recognized on the balance sheet relating to 3.6 million square feet of incremental density for our project the detail cost estimate.

This average into a bowl.

At all or per incremental billable square foot.

To put things into perspective, the trust carbon 29 million square feet development pipeline includes 24.7 million square feet of incremental density.

This development pipeline relates to 61 project Auto bar 220 bar property portfolio.

Our pipeline will continue to grow as we identify mauling intensification project.

I said this year and the twice the average Ned Rand per occupied square feet was 19 dollar and 75 cents.

Qi: As at this year-end, the trust's average net rent per occupied sq ft was CAD 19.75. This represents a compound annual growth rate of 3.7% since the end of 2015. It highlights the significant improvements we've made to our portfolio over this period as we surpassed our strategic milestone related to our major markets and GTA focus. The improvements in our portfolio have resulted in strong blended leasing spreads, as well as a resilient and diversified property and tenant mix. Since 2016, the average population within a 5-kilometer radius of our portfolio has increased to about 198,000 as of the year-end, a 31% increase. While average household income within the 5-kilometer radius of our portfolio has increased to CAD 115,000, a 17% increase over the same three-year period.

Qi Tang: As at this year-end, the trust's average net rent per occupied sq ft was CAD 19.75. This represents a compound annual growth rate of 3.7% since the end of 2015. It highlights the significant improvements we've made to our portfolio over this period as we surpassed our strategic milestone related to our major markets and GTA focus. The improvements in our portfolio have resulted in strong blended leasing spreads, as well as a resilient and diversified property and tenant mix. Since 2016, the average population within a 5-kilometer radius of our portfolio has increased to about 198,000 as of the year-end, a 31% increase. While average household income within the 5-kilometer radius of our portfolio has increased to CAD 115,000, a 17% increase over the same three-year period.

This represents a compound annual growth rate of 3.7% seems the end of 2016.

It highlights the significant improvements we've made to our portfolio over this period as we used the parts to our strategic milestones related to our major market and GTN focuses.

The improvements our portfolio have resolved team strong blended leasing spreads as well as a resilient and diversified property and tenant mix.

Since 2016, the average population, leaving us five kilometer radius of our portfolio has increased to about 198000 as over yearend.

31% increase.

Well average household income.

Five kilometer radius of our portfolio has increased to $115000 a 17% increase over the same three year period.

About 67% of the truck development pipeline is located in the GP a.

Qi: About 67% of the Trust development pipeline is located in the GTA. Within a 5km radius of these development projects in GTA, the average population is about 322,000, and the average household income is about CAD 129,000. These demographics demonstrate the quality of our urban transit-oriented mixed-use developments. We continue to prudently manage our development program and balance sheet. As at year-end, our development cost balance on the balance sheet amounted to 9% of our total assets. This is well below the 15% limit permitted under our revolver and other unsecured credit facilities. Our debt to adjusted EBITDA was at 8.06x on a proportionate share basis. This was accomplished despite the completion of nearly CAD 1 billion strategic acquisitions during the year and the development cost balance of CAD 1.4 billion.

Qi Tang: About 67% of the Trust development pipeline is located in the GTA. Within a 5km radius of these development projects in GTA, the average population is about 322,000, and the average household income is about CAD 129,000. These demographics demonstrate the quality of our urban transit-oriented mixed-use developments. We continue to prudently manage our development program and balance sheet. As at year-end, our development cost balance on the balance sheet amounted to 9% of our total assets. This is well below the 15% limit permitted under our revolver and other unsecured credit facilities. Our debt to adjusted EBITDA was at 8.06x on a proportionate share basis. This was accomplished despite the completion of nearly CAD 1 billion strategic acquisitions during the year and the development cost balance of CAD 1.4 billion.

Busy no five kilometer radius of leave on the project from GE. The average population is about 322000 and the average household income is about 129000 dollar.

These demographics demonstrates the quality of our urban why do they each oriented mix use development.

We continue to put into the manage our development program and balance sheet I thought your end argue mountain cost balance on the balance sheet amounting to 9% our total assets.

[laughter] this is well below the 15% limit permitted under our revolver.

Our unsecured credit facility.

Our debt to adjusted EBITDA was 8.06 times a proportion.

Share basis.

This was accomplished despite the completion of nearly a beating strategic acquisition during the year under development costs of balance of 1.4 billion.

Excluding the 1.4 billion <unk> filings our debt to adjusted EBITDA would have been 6.3 times.

Qi: Excluding the CAD 1.4 billion development cost balance, our debt to adjusted EBITDA would have been 6.3x. Our leverage as of year-end was 42.1%, unchanged from 2018. Our pool of unencumbered assets grew to CAD 8.9 billion, a nearly CAD 1 billion increase from the prior year-end. Our debt composition was about 60% unsecured and 40% secured. These unencumbered assets generate 58.5% of our annualized NOI and provide 227% coverage over our unsecured debt, well above our internal targets. As at year-end, the trust reduced its floating interest rate debt exposure to 6.4% from 16.4% last year.

Qi Tang: Excluding the CAD 1.4 billion development cost balance, our debt to adjusted EBITDA would have been 6.3x. Our leverage as of year-end was 42.1%, unchanged from 2018. Our pool of unencumbered assets grew to CAD 8.9 billion, a nearly CAD 1 billion increase from the prior year-end. Our debt composition was about 60% unsecured and 40% secured. These unencumbered assets generate 58.5% of our annualized NOI and provide 227% coverage over our unsecured debt, well above our internal targets. As at year-end, the trust reduced its floating interest rate debt exposure to 6.4% from 16.4% last year.

Our leverage as a year and it was 42.1% unchanged from 2018.

Our pool of I'm encumbered assets grew to 8.9 billion, a nearly 1 billion increase from the prior yearend.

And our debt compensation was about 60% on unsecured and 40% unsecured.

These are encumbered assets generated 58.5% of our annualized, Illinois and provide 227% coverage over our unsecured debt.

Well above our internal targets.

I bet here and the trucks reduced its floating interest rate that exposure to 6.4% from 16.4% last year.

Qi: As a result of our strong balance sheet, the quality and strength of our portfolio, we continue to enjoy ample financial liquidity and one of the lowest cost of debt in our industry. Subsequent to year-end, the trust closed its first CMHC insured mortgage, a 10-year, about CAD 29 million loan at RioCan's interest for Frontier in Ottawa. It bears an annual interest rate of 2.63%. The trust also expects that its existing 11-year, CAD 150 million, 2.58% mortgage at Essential in Toronto will become CMHC insured upon the property stabilization in the spring this year. This will then reduce our interest rate for this loan to 2.33%. Maximizing CMHC insured mortgages is an important component of our debt strategy. It provides access to a new source of financing and lowers our overall cost of debt.

Qi Tang: As a result of our strong balance sheet, the quality and strength of our portfolio, we continue to enjoy ample financial liquidity and one of the lowest cost of debt in our industry. Subsequent to year-end, the trust closed its first CMHC insured mortgage, a 10-year, about CAD 29 million loan at RioCan's interest for Frontier in Ottawa. It bears an annual interest rate of 2.63%. The trust also expects that its existing 11-year, CAD 150 million, 2.58% mortgage at Essential in Toronto will become CMHC insured upon the property stabilization in the spring this year. This will then reduce our interest rate for this loan to 2.33%. Maximizing CMHC insured mortgages is an important component of our debt strategy. It provides access to a new source of financing and lowers our overall cost of debt.

The result of our strong balance sheet, the quality and strength of our portfolio. We continue to enjoy ample financial liquidity and one of the lowest cost of debt in our industry.

Subsequent to year end the trot close it's the first CMC insured mortgage a 10 year about 29 million alone I Realtimes entries for frontier in Ottawa.

It bears a annual interest at around 2.63%.

The trust also expects that its existing you. Let me hear 150 million 2.5 may present mortgage essential in Toronto will become CMC Im sure arms.

On the property stabilization in the spring this year.

This was then reduce our interest rate for this loan to 2.33%.

Maximizing CMC insured mortgages is a important component of our debt strategy. He provides access to a new source of financing and lowered our overall cost of debt.

Qi: It will further help drive FFO per unit growth in the future. Overall, we are pleased with our operational and financial results for 2019, and we look forward to building on our positive momentum in 2020. With that, I would like to turn the call over to our CEO, Ed, for his closing remarks.

Qi Tang: It will further help drive FFO per unit growth in the future. Overall, we are pleased with our operational and financial results for 2019, and we look forward to building on our positive momentum in 2020. With that, I would like to turn the call over to our CEO, Ed, for his closing remarks.

It will further help drive I feel pretty unit growth in the future.

Overall, we're pleased to be is our operational and financial results for 2019, I. We look forward to building on our positive momentum in 2020.

It's not I would like to turn the call over to our CEO ads for his closing remarks.

Mr. Sonshine: Thank you, Jennifer, Jonathan, and Qi. You have gone over more numbers than even I can absorb. But they're all important, and they really indicate what we achieved in 2019, and some pretty good hints at what we've got coming up in 2020. I'll largely stay away from numbers, although they are necessary, of course, in to mentioning what RioCan has achieved over the last several years. We're now in the unique position, and I think that is pretty well unique amongst all our peers, of having over 50% of our revenue coming from the fastest-growing area in North America, namely the Greater Toronto Area, GTA. That percentage will grow, as well, over 60% of our current and planned development activity is in that very GTA.

Edward Sonshine: Thank you, Jennifer, Jonathan, and Qi. You have gone over more numbers than even I can absorb. But they're all important, and they really indicate what we achieved in 2019, and some pretty good hints at what we've got coming up in 2020. I'll largely stay away from numbers, although they are necessary, of course, in to mentioning what RioCan has achieved over the last several years. We're now in the unique position, and I think that is pretty well unique amongst all our peers, of having over 50% of our revenue coming from the fastest-growing area in North America, namely the Greater Toronto Area, GTA. That percentage will grow, as well, over 60% of our current and planned development activity is in that very GTA.

Thank you Jennifer Jonathan and she.

Yes, you have gone over more numbers than even I can absorb.

But there they're all important and.

They really indicates a.

Where what we achieved in 2019 and some pretty good hands at what we've got coming up in 2020.

Largely stay away from numbers, although there are necessary of course in dimensioning, what recant has achieved over the last several years.

We're now in the unique physician and I think that is pretty well a unique amongst all our peers of having over 50% of our revenue coming from the fastest growing area North America, namely the greater Toronto area DTA.

And that percentage will grow.

As well over 60% of our current and planned development activity isn't that very gtld.

Mr. Sonshine: Before I speak about what we are so furiously building, I will dwell a bit on where we are in the transformational journey on which RioCan embarked several years ago. First, it's worth noting that we have reduced our retail footprint by almost 10 million sq ft in secondary markets over the last couple of years, and I'm sure that almost 10 million will become over 10 million fairly shortly, while dramatically increasing our major market assets simultaneously. Our remaining secondary market exposure of less than 10%, a number that will continue to decline, is composed almost exclusively of dominant open air centers in such strong markets as Kingston and Sudbury. At this juncture of RioCan's transformation, I believe we have already created a portfolio that will give us that 3%+ same property growth that we have been striving to achieve.

Edward Sonshine: Before I speak about what we are so furiously building, I will dwell a bit on where we are in the transformational journey on which RioCan embarked several years ago. First, it's worth noting that we have reduced our retail footprint by almost 10 million sq ft in secondary markets over the last couple of years, and I'm sure that almost 10 million will become over 10 million fairly shortly, while dramatically increasing our major market assets simultaneously. Our remaining secondary market exposure of less than 10%, a number that will continue to decline, is composed almost exclusively of dominant open air centers in such strong markets as Kingston and Sudbury. At this juncture of RioCan's transformation, I believe we have already created a portfolio that will give us that 3%+ same property growth that we have been striving to achieve.

Before I speak about what we are so furiously building I will do all a bit on where we are in the transformational journey.

Which recant embark several years ago.

First is worth noting that we have reduced our retail footprint by almost 10 million square feet and secondary market [laughter] last couple of years and I'm sure that almost 10 million will become over 10 million.

Fairly shortly.

While dramatically increasing our major market assets simultaneously.

Our remaining secondary market exposure, perhaps than 10% number that we'll continue to decline.

It's composed almost exclusively of dominant open air centers and such strong markets as Kingston inside brain.

At this juncture.

Ria cans transformation I believe we have already created a portfolio that will give us that 3% plus same property growth that we've been striving to achieve.

Mr. Sonshine: There will be bumps in the road caused by the continuing shakeout in the retail industry, but the power of RioCan's portfolio and the strength and depth of its team will enable us to turn every bump into an opportunity for growth. While these bumps may cause some quarter-to-quarter variability, we're in a place where 3% same property growth on an annual basis will become our norm. When we add in development growth, that number will be closer to 5%. The portfolio owned by RioCan today, and its platform for growth, is only the current stage of our evolution. Yet it is a critical one, as it provides the cash flow and financial strength to fund our ongoing significant development program, and of course, fund our ongoing obligations to our unit holders.

Edward Sonshine: There will be bumps in the road caused by the continuing shakeout in the retail industry, but the power of RioCan's portfolio and the strength and depth of its team will enable us to turn every bump into an opportunity for growth. While these bumps may cause some quarter-to-quarter variability, we're in a place where 3% same property growth on an annual basis will become our norm. When we add in development growth, that number will be closer to 5%. The portfolio owned by RioCan today, and its platform for growth, is only the current stage of our evolution. Yet it is a critical one, as it provides the cash flow and financial strength to fund our ongoing significant development program, and of course, fund our ongoing obligations to our unit holders.

There will be bumps in a row caused by the continuing shake out and the retail industry.

But the power of recast portfolio and the strength and depth of its team will enable us to turn every bump into an opportunity for growth.

And so while these bumps may cause some quarter to quarter variability, where in a place where 3% same property growth on an annual basis will become our norm and when we add in development growth that number will be closer to 5%.

But the portfolio owned by recant today and its platform for growth.

It's only the current stage of our evolution.

Yes. It is a critical not as it provides the cash flow and financial strength to fund our ongoing significant development program and of course fund our ongoing obligations to our unitholders.

Mr. Sonshine: In addition to what I've described above, RioCan today is an entity with almost endless opportunities of value and cash flow creation. Of our over 29 million sq ft of identified density in our existing properties, as Qi has said, about half is already zoned. Our challenge over the upcoming years will be to pick out the most promising and profitable developments out of this cornucopia of opportunities, while staying within our financial means and keeping our balance sheet ever strong. While media and analyst attention focuses on such mixed-use projects as The Well, Yonge and Eglinton, and Yonge and Sheppard, and this is certainly understandable as the high profile, and quite frankly, eye-popping value creation and cash flow at these very large scale and intensely urban properties is remarkable. We have many other mixed-use developments underway.

Edward Sonshine: In addition to what I've described above, RioCan today is an entity with almost endless opportunities of value and cash flow creation. Of our over 29 million sq ft of identified density in our existing properties, as Qi has said, about half is already zoned. Our challenge over the upcoming years will be to pick out the most promising and profitable developments out of this cornucopia of opportunities, while staying within our financial means and keeping our balance sheet ever strong. While media and analyst attention focuses on such mixed-use projects as The Well, Yonge and Eglinton, and Yonge and Sheppard, and this is certainly understandable as the high profile, and quite frankly, eye-popping value creation and cash flow at these very large scale and intensely urban properties is remarkable. We have many other mixed-use developments underway.

In addition, what I've described above we can't today is an entity with almost endless opportunities of value and cash flow creation.

Of our over 29 million square feet of identified density in our existing properties. As she has said about half is already zone.

Our challenge over the upcoming years will be to pick out the most promising and profitable developments. How does this cornucopia of opportunities, while staying within our financial means and keeping our balance sheet ever strong.

While media and analyst attention focuses on such mixed use projects as well, yeah, and then I don't and Yunnan Shepherd.

And this is certainly understandable as the high profile and quite frankly, I popping value creation Mad Catz [laughter] at these very large scale.

And then potentially urban properties is remarkable we have many other mixed use developments underway.

Mr. Sonshine: What we are creating on 120 acres of land at Simcoe and 407 in Oshawa has been mentioned in the past and was mentioned as well by Jonathan today. In addition to a completed first phase of townhomes, we are commencing this spring a high-rise condominium, which Jonathan mentioned, of over 500 units, which is 75% pre-sold. Something I never thought even two years ago I'd be able to say to you about a property in Oshawa. At the same time this spring, we're commencing about a 116,000-sq-ft supermarket-anchored retail facility, which is already about two-thirds pre-leased. A second phase of about a further 150 townhomes, which in only three weeks of marketing, has been pre-sold at about 50%, at the 50% level.

Edward Sonshine: What we are creating on 120 acres of land at Simcoe and 407 in Oshawa has been mentioned in the past and was mentioned as well by Jonathan today. In addition to a completed first phase of townhomes, we are commencing this spring a high-rise condominium, which Jonathan mentioned, of over 500 units, which is 75% pre-sold. Something I never thought even two years ago I'd be able to say to you about a property in Oshawa. At the same time this spring, we're commencing about a 116,000-sq-ft supermarket-anchored retail facility, which is already about two-thirds pre-leased. A second phase of about a further 150 townhomes, which in only three weeks of marketing, has been pre-sold at about 50%, at the 50% level.

What we are creating on 120 acres of land, that's simple and full seven an awful lot has been mentioned in the past and was mentioned as well by Jonathan today.

But in addition to a completed first phase of Townhomes.

We are commencing this spring a high rise condominium, which Jonathan mentioned of over 500 units, which is 75% pre sold something I never thought even two years ago I'd be able to say to you about a property an awful lot.

And at the same time this spring, we're commencing a bottle hundred 16000 square foot supermarket anchored retail facility, which is already about two thirds preleased.

And a second phase of about a further 150000 homes, which in only three weeks of marketing has been pre sold at about 50% at the 50% level.

Mr. Sonshine: This will truly be a mixed-use project in North Oshawa, where the retail feeds the residential, and the residential feeds the retail, all between two major institutions of higher learning called Ontario Tech and Durham College, which again, I'm not sure anybody could have really contemplated several years ago, but here we are doing it. Similar projects will be commenced over the next 18 months in Brampton, Ajax, Ottawa, and other places. I am pleased to note that we will soon be commencing our first rental building in Surrey, British Columbia. This one is particularly gratifying and symptomatic of RioCan's reach and abilities. A small pad on the edge of a very successful shopping center called Strawberry Hill in Surrey, which for some reason could never be married to a suitable retailer. It lay fallow and actually unpaved for well over a decade.

Edward Sonshine: This will truly be a mixed-use project in North Oshawa, where the retail feeds the residential, and the residential feeds the retail, all between two major institutions of higher learning called Ontario Tech and Durham College, which again, I'm not sure anybody could have really contemplated several years ago, but here we are doing it. Similar projects will be commenced over the next 18 months in Brampton, Ajax, Ottawa, and other places. I am pleased to note that we will soon be commencing our first rental building in Surrey, British Columbia. This one is particularly gratifying and symptomatic of RioCan's reach and abilities. A small pad on the edge of a very successful shopping center called Strawberry Hill in Surrey, which for some reason could never be married to a suitable retailer. It lay fallow and actually unpaved for well over a decade.

This will truly be a mixed use project in north Asha, while where the retail fees the residential and the residential feeds the retail all between two major institutions and higher learning called Ontario Tech and during college, which again not sure anybody could have really.

We contemplated several years ago, but here we are doing it so.

Similar projects will be commenced over the next 18 months and Brampton Ajax Ottawa and other places.

I'm pleased to know.

That we will soon be commencing our first went on building and certainly British Columbia. This one is particularly gratifying and symptomatic of read cans reach and abilities.

Small Pat on the edge of a very successful.

Shopping center called Strawberry Hill in Surrey.

Which for some reason could never be married to a suitable retailer.

So and lay follow and actually unpaved for well over a decade.

Mr. Sonshine: Now, sometime this year, we will be commencing a 100-unit apartment building on this very pad. Stories such as this are constantly being created at RioCan, both as a result of our superb property portfolio and our creative and extremely experienced team. The value creation and cash flow growth that is occurring at RioCan has not yet been recognized by the public markets. I believe they will be eventually, but at present, the private markets and deep institutional pockets are well ahead of the public markets in their recognition. The Continuum transaction last year and the Northview REIT transaction announced this very morning are examples of private money valuing assets considerably higher than the public markets. I suspect you will continue to see additional transactions of this nature. Not necessarily always on an entity basis, but certainly on an individual and portfolio scale.

Edward Sonshine: Now, sometime this year, we will be commencing a 100-unit apartment building on this very pad. Stories such as this are constantly being created at RioCan, both as a result of our superb property portfolio and our creative and extremely experienced team. The value creation and cash flow growth that is occurring at RioCan has not yet been recognized by the public markets. I believe they will be eventually, but at present, the private markets and deep institutional pockets are well ahead of the public markets in their recognition. The Continuum transaction last year and the Northview REIT transaction announced this very morning are examples of private money valuing assets considerably higher than the public markets. I suspect you will continue to see additional transactions of this nature. Not necessarily always on an entity basis, but certainly on an individual and portfolio scale.

And now sometime this year, we will be commencing a 120 unit apartment building on this very bad.

Stories, such as this are constantly being created a recap both services as a result of our superb property portfolio and our creative and extremely experienced team.

The value creation and cash flow growth that is occurring every again has not yet been recognized by the public markets I believe they will be eventually.

But at present, the private markets and deep institutional pockets are well ahead of the public markets in their recognition.

Continuum transaction last year, and the North you Rick transaction announced this very morning.

Our examples of private money value assets considerably higher than the public markets and I suspect you will continue to see additional transactions of this nature not.

Not necessarily always on an entity basis, but certainly on an individual and portfolio scale.

Mr. Sonshine: That's it for me. I think we're now happy to open it up for questions to anybody in this well-attended room that we're in here. Thank you.

Edward Sonshine: That's it for me. I think we're now happy to open it up for questions to anybody in this well-attended room that we're in here. Thank you.

That's it for me and I think we're now a happy to open it up for questions. The anybody in this well ruminant linear.

Operator 3: Thank you. Ladies and gentlemen, if you have a question at this time, please press the star then the one key on your touch tone telephone. If your question has been answered or you wish to remove yourself from the queue, please press the pound key. One moment for our questions. Our first question comes from the line of Tal Woolley of National Bank Financial. Please go ahead. Your line is open.

Operator: Thank you. Ladies and gentlemen, if you have a question at this time, please press the star then the one key on your touch tone telephone. If your question has been answered or you wish to remove yourself from the queue, please press the pound key. One moment for our questions. Our first question comes from the line of Tal Woolley of National Bank Financial. Please go ahead. Your line is open.

Thank you.

Ladies and gentlemen, if you haven't question at this time. Please press the Star then one key and you touched on stuff I telephone.

If your question has been answered or you wish to remove yourself from the Q. Please press the pound Keith.

No I'm in for questions.

Our first question comes online how Holly of National Bank Financial. Please go ahead. Your line is open.

Hi, good morning, good morning itself.

Tal Woolley: Hi, good morning.

Mr. Sonshine: Good morning, Tal.

Edward Sonshine: Good morning, Tal.

Tal Woolley: Let me start with a couple of questions. Just on the balance sheet, given where rates are right now, how are you thinking about potentially extending the term on your balance sheet as you start to refinance some issues going forward?

Let me start with a couple of questions just on the balance sheet, given where rates are right now how are you thinking about.

Potentially extending the term on your balance sheet as you start to refinance some issues going forward.

Mr. Sonshine: That's exactly what we're doing. I think in the MD&A, we mentioned we just refinanced a fairly large, in excess of CAD 100 million dollar mortgage on a property in also in Surrey, actually, Grandview Corners Shopping Centre, where I think we did CAD 106 million at a 10-year term at 3.02%. That's just an example of what we're doing. Essentially, where we're doing secured debt, which, you know, is probably now under 40% of our overall debt, we're typically going for 10 years unless there's a very good reason not to, like, imminent redevelopment or something like that. Our unsecureds, we do intend to take advantage of the current very favorable interest rate climate to extend out the term of our overall debt profile.

Edward Sonshine: That's exactly what we're doing. I think in the MD&A, we mentioned we just refinanced a fairly large, in excess of CAD 100 million dollar mortgage on a property in also in Surrey, actually, Grandview Corners Shopping Centre, where I think we did CAD 106 million at a 10-year term at 3.02%. That's just an example of what we're doing. Essentially, where we're doing secured debt, which, you know, is probably now under 40% of our overall debt, we're typically going for 10 years unless there's a very good reason not to, like, imminent redevelopment or something like that. Our unsecureds, we do intend to take advantage of the current very favorable interest rate climate to extend out the term of our overall debt profile.

That's exactly what we're doing I think in the Mdna, we mentioned that we just refinanced they are a fairly large in excess of 100 million dollar.

Mortgage on a property and also in Surrey actually Grandview corner shopping center, where I think we did 106 million at a 10 year term at 3.02%. So that's just an example of what we're doing essentially a where we're doing secured debt.

Which you know is probably now under 40% of our overall that a word typically going for 10 years, unless there's a very good reason not to like imminent redevelopment or something like that and our unsecured we do intend to take advantage of the current very favorable interest rate climate to.

Extend out.

The term of our overall debt profile.

Tal Woolley: Is there a target that you're looking to hit on that front, or you're just gonna move along as you can?

Is there a target that you're looking to hit on that front or you're just going to move along as you can yeah. I think I you know I don't think we've set an actual target I think.

Mr. Sonshine: Yeah, I think you know, I don't think we've set an actual target. I think we're probably, as of the current moment, at a term of under 4 years, about 3.75, something like that. Would I like to get that closer to 5? Sure. You know, when you're dealing with about CAD 6.5 billion of debt, it takes time.

Edward Sonshine: Yeah, I think you know, I don't think we've set an actual target. I think we're probably, as of the current moment, at a term of under 4 years, about 3.75, something like that. Would I like to get that closer to 5? Sure. You know, when you're dealing with about CAD 6.5 billion of debt, it takes time.

Well probably has a current moment that I ER in term of under four years, but 3.75 something like that.

What I like to get that closer to five sure, but you know when you're dealing with a about $6.5 billion of debt. It takes time. So we're just going to incrementally move that into a longer fixed rate environment without setting any specific target because it's so opportunistically you know driven.

Tal Woolley: Yeah.

Mr. Sonshine: We are just gonna incrementally move that into a longer fixed rate environment, without setting any specific target because it's so opportunistically, you know, driven.

Edward Sonshine: We are just gonna incrementally move that into a longer fixed rate environment, without setting any specific target because it's so opportunistically, you know, driven.

Operator 3: Yeah. Tal, I think our next

Yes.

Tal Woolley: Just on The Well, you're talking about the air rights sale will soon close. The net proceeds that you guys expect from that transaction will be approximately what?

And then.

Tal Woolley: Just on The Well, you're talking about the air rights sale will soon close. The net proceeds that you guys expect from that transaction will be approximately what?

On the.

On the well.

You're talking about the IRET sale will.

Assume close the net proceeds that you guys expect from that transaction will be approximately what.

Mr. Sonshine: I think between us and Allied and a little bit going to DiamondCorp, who was in that, I think it's about CAD 180 million ±10 million. I hate to speak so expensively. But that should happen, I think towards the end of this year, in the beginning of next year. It'll be phased in as you know, we reach platform level on the various buildings. Keep in mind, of the largest residential building, of course, RioCan retained 50%. Actually, we retained 40, and we're buying 10% from our partners. You know, I think it's probably one of the most exciting developments in Canada.

Edward Sonshine: I think between us and Allied and a little bit going to DiamondCorp, who was in that, I think it's about CAD 180 million ±10 million. I hate to speak so expensively. But that should happen, I think towards the end of this year, in the beginning of next year. It'll be phased in as you know, we reach platform level on the various buildings. Keep in mind, of the largest residential building, of course, RioCan retained 50%. Actually, we retained 40, and we're buying 10% from our partners. You know, I think it's probably one of the most exciting developments in Canada.

I think between us and allied and and a little bit going to diamond corporate was and that makes about a $180 million.

Plus or minus 10 million itis speak so expensive late but that should happen I think towards the end of this year in the beginning of next year.

I'll be phased in as the plot you know the have we reach a platform level on the various buildings and that keep in mind, we have the largest residential building of course I read can retain.

50% actually we retain 40, and we're buying 10% from our partner partners and you know it's a it's a I think it's probably one of the most exciting developments in Canada, and I think within a year or two everyone will agree with me.

Mr. Sonshine: I think, within a year or two, everyone will agree with me.

Edward Sonshine: I think, within a year or two, everyone will agree with me.

Tal Woolley: Okay. Qi, you had discussed the parts of your pipeline on which you had recognized density in your fair value. I apologize if I missed this earlier on the call. We have double-booked. Can you just talk to which specific projects those fair value gains were recognized on?

Okay.

And she you had discussed.

The parts of your pipeline on which you had a recognize density.

In your fair value.

[music].

Can you just talked about.

And I apologize if I missed this earlier on the call. It a double booked but it can you just talked to which specific projects. Those fair value gains were recognized yeah, Oh, what she's sort of figure that one out but I will tell you our policy, which is a little bit different perhaps than everybody else.

Mr. Sonshine: Yeah. I'll let Qi sort of figure that one out, but I will tell you our policy, which is a little bit different perhaps than everybody else. It is to, from an IFRS and value recognition point of view, we don't recognize anything until there are detailed construction estimates and/or there's a transaction, i.e., by selling a 50% interest that obviously triggers the recognition of that value. As we're continuing to zone, obviously, we keep track of it ourselves. It's an extremely significant number, but it is not reflected in our IFRS values or in the NAV numbers that Qi quoted before. I'll turn it back to Qi.

Edward Sonshine: Yeah. I'll let Qi sort of figure that one out, but I will tell you our policy, which is a little bit different perhaps than everybody else. It is to, from an IFRS and value recognition point of view, we don't recognize anything until there are detailed construction estimates and/or there's a transaction, i.e., by selling a 50% interest that obviously triggers the recognition of that value. As we're continuing to zone, obviously, we keep track of it ourselves. It's an extremely significant number, but it is not reflected in our IFRS values or in the NAV numbers that Qi quoted before. I'll turn it back to Qi.

It is too from an IRS and value recognition point of view, we don't recognize.

Until there are detailed construction estimates and or there's a transaction I E by selling a 50% interest that obviously triggers the recognition of that value.

As we're continuing to zone.

Obviously, we keep track of it ourselves [laughter], a it's a extremely significant number but it is not reflected in our first values or in the NAV numbers that that she quoted before and I'll turn it back to cheat things that I tell just I'm sure. Your specific question the 260.

Qi: Thanks, Ed. Tal, just to answer your specific question, the CAD 266 million fair value I mentioned earlier, that refers to the first category in our development pipeline. That is the project that's already under construction.

Qi Tang: Thanks, Ed. Tal, just to answer your specific question, the CAD 266 million fair value I mentioned earlier, that refers to the first category in our development pipeline. That is the project that's already under construction.

Nearly in fair value I mentioned earlier that refers to the first category argue about in the pipeline that is the project that's already under construction.

And now, but do you know like where those breaks word because it predominately GCA I'm, assuming the Dalai Toronto area. For example to include the fair value we've already recognize on essential on Shepherd Center. So on these projects pitch under construction on these type of a project that's.

Tal Woolley: And that-

Qi: Sure.

Edward Sonshine: Sure.

Tal Woolley: Do you know, like, where those rights were? Is it predominantly GTA, I'm assuming?

Qi: Predominantly, Toronto area, for example, it includes the fair value we've already recognized on eCentral, on Yonge Sheppard Centre. On these projects, at Pivot, under construction, on these type of a project that's either near completion or in advanced stage of construction.

Qi Tang: Predominantly, Toronto area, for example, it includes the fair value we've already recognized on eCentral, on Yonge Sheppard Centre. On these projects, at Pivot, under construction, on these type of a project that's either near completion or in advanced stage of construction.

Either near completion, all your lungs stage of construction.

Tal Woolley: Okay. Then just my last question. I think, Jonathan, you had made reference to this earlier, is that you're trying to work your cost structure and try and find some OpEx savings that you hopefully can pass on to your tenants and keep a little bit for yourself in net rents. Can you give some examples of just exactly what's, you know, what projects you're undertaking to do that? Then is there a target that you guys have in terms of margins or something like that to try and drive that process?

Okay and then just my last question I think Jonathan you had made reference to this earlier is that you're trying to work.

You work your cost structure and try and find some opex savings you hopefully can pass onto your tenants and keep a little bit for yourself in that rents is there.

Can you give some examples of just exactly what's what projects you're undertaking to do that and then if their target that you guys have.

You know in terms of margins are somewhat back to try and drive that process.

Jonathan Gitlin: Sure. Some of the programs that we're focusing on are a thorough review of the way we manage parking lots, underground and otherwise, where we've tried to coordinate one single manager as opposed to having disparate managers across provinces, which has realized quite significant savings in operating costs. There are also things as mundane as snow removal contracts, heating and energy contracts, and just bulk buying that we are able to do with our large platform. There are too many to list on this phone call, Tal. There's-

Sure. So some of the programs that were there were focusing on our a thorough review of the way, we manage parking lots underground and otherwise.

Where weve.

Tried to.

To coordinate one single manager as opposed to having just for managers across provinces, which is related to which has a I was realized quite significant savings and align costs.

But there are also things of Monday, the snow removal contract.

Heating and energy contracts and just bulk buying that we are able to do with our large platform, but there are there too many to list on this phone calls how the.

Tal Woolley: Okay.

Jonathan Gitlin: It's a broad initiative that we're doing in every line item of our budgets, quite honestly. Wherever there is the opportunity to centralize that procurement, we are taking advantage of it. It is a substantial cost savings. With respect to a target or a margin level, we haven't. I mean, what we're in now is, again, we're doing this thorough review, and we're implementing a number of changes. Until we've assessed exactly what opportunities are out there, we haven't pinpointed a budget number yet. It is substantial, but we will look to do that on an annual basis in the coming months, I would suggest, which is set a budget target for cost savings.

The broad initiative that we're doing in every line item of our budgets quite honestly in wherever there is opportunity.

To centralize that procurement, we are taking advantage of it and and so it is a substantial cost savings with respect to a target or margin level. We haven't I mean, what we're in now is again the we're doing this thorough thorough review and words and we're implementing a number changes, but until we've assessed exactly what.

Opportunities are out there, we haven't pinpointed a budget number yet.

It is substantial but we will we will look to do that on an annual basis in the coming on so I would stress, which is set of budget target for cost savings.

Mr. Sonshine: I might add to that, and certainly no numbers either, that we're probably just at the very beginning of our progress in incorporating a lot more technology into our, quite frankly, our entire operations, and we're particularly well suited for this. I mean, for example, here at Yonge-Eglinton, between what we already own at eCentral and at Yonge-Eglinton Centre, we have, I don't know, 1.5 million sq ft or plus, and that's probably gonna keep growing with some of the announced acquisitions we've made, going up the Yonge Street corridor, Sheppard Centre and of course, obviously The Well.

Edward Sonshine: I might add to that, and certainly no numbers either, that we're probably just at the very beginning of our progress in incorporating a lot more technology into our, quite frankly, our entire operations, and we're particularly well suited for this. I mean, for example, here at Yonge-Eglinton, between what we already own at eCentral and at Yonge-Eglinton Centre, we have, I don't know, 1.5 million sq ft or plus, and that's probably gonna keep growing with some of the announced acquisitions we've made, going up the Yonge Street corridor, Sheppard Centre and of course, obviously The Well.

I might add to that and certainly know numbers either that were probably just at the very beginning of of our progress and incorporating a lot more technology.

Into a are quite frankly, our entire operations and were particularly well suited for this in a I mean for example, here young and Eglinton between what we already own at East Central and a young magazines and center. We have I don't know many of the have square feet and our plus.

And that's probably going to keep growing.

With some of the announced acquisitions we've made.

Going up the young Street corridor.

Shepherd Center and of course, obviously, the well, but generally a there's so much technology out there that I know we spend a lot of time [laughter] just sitting through presentation, just trying to figure out what actually will work for us.

Mr. Sonshine: Generally, there's so much technology out there that I know we spend a lot of time just sitting through presentations just trying to figure out sometimes what actually will work. I think technology use over the next few years will actually generate not just fantastic efficiency and better service to both our residential and commercial tenants, but also cost savings.

Edward Sonshine: Generally, there's so much technology out there that I know we spend a lot of time just sitting through presentations just trying to figure out sometimes what actually will work. I think technology use over the next few years will actually generate not just fantastic efficiency and better service to both our residential and commercial tenants, but also cost savings.

Sometimes what actually will work and I think technology use over the next few years will actually generate not just fantastic efficiency and better service to both our residential and commercial tenants.

But also cost savings for sure the grid.

Jonathan Gitlin: For sure. Agreed.

Tal Woolley: Okay. Thanks very much, guys.

Okay. Thanks, very much guys. Thanks, I'll hop back though.

Mr. Sonshine: Thanks, Tal.

Edward Sonshine: Thanks, Tal.

Jonathan Gitlin: No problem. Thanks, Tal.

Operator 3: Our next question comes from the line of Pammi Bir of RBC Capital Markets. Please go ahead. Your line is open.

Operator: Our next question comes from the line of Pammi Bir of RBC Capital Markets. Please go ahead. Your line is open.

Our next question comes online.

Penny beer of RBC capital markets. Please go ahead your line is open.

Pammi Bir: Thanks. Good morning. Just going back to your comments on the public-private disconnect, what are your thoughts in terms of maybe means through which you could perhaps help narrow that gap?

Thanks, and good morning, just.

Just going back to your comments on the the public private disconnect. What are your thoughts in terms of maybe means through which you could perhaps help narrow that gap.

Mr. Sonshine: Well, I think trying to get, you know, the analyst community to recognize more than just our last quarter's numbers, but to really take a hard look at what we're creating, both from a value and cash flow platform point of view and the real value, I mean, that we're creating. I told that little story about Surrey, where we had a pad of land that obviously had 0 value, didn't even have paving on it. I'd been out to look at it probably a decade ago and beat up on poor Jeff Ross, our head of leasing, saying, "Why can't you find a tenant like this?" When I saw it, I realized why we couldn't find a tenant.

Edward Sonshine: Well, I think trying to get, you know, the analyst community to recognize more than just our last quarter's numbers, but to really take a hard look at what we're creating, both from a value and cash flow platform point of view and the real value, I mean, that we're creating. I told that little story about Surrey, where we had a pad of land that obviously had 0 value, didn't even have paving on it. I'd been out to look at it probably a decade ago and beat up on poor Jeff Ross, our head of leasing, saying, "Why can't you find a tenant like this?" When I saw it, I realized why we couldn't find a tenant.

Well I think trying to get a you know [noise].

Analyst community.

To recognize more than just our last quarter's numbers, but to really take a hard look at what we're creating both from a value on cash flow platform, a point of view and the real value I mean that we're creating I you know I tell I told that little story.

Sorry, a where we had a patent land.

That obviously had zero value.

Didn't have anything on it I put out to look at its probably a decade ago.

And beat up on poor, Jeff Ross, our head of leasing say why can't you find that tenant like this and then when I saw it I realize why we couldn't find dependent that was it was really at the back age of the shopping center and yet a we're going to build 120 units plus or minus apartment building I think of for.

Mr. Sonshine: It was really at the back edge of the shopping center. Yet, we're gonna build a 120-unit, plus or minus, apartment building, I think, for us, relatively low rise, about 11 stories.

Edward Sonshine: It was really at the back edge of the shopping center. Yet, we're gonna build a 120-unit, plus or minus, apartment building, I think, for us, relatively low rise, about 11 stories.

For us relatively low low rise when 11 stories, yeah, Yeah 11 stories.

Pammi Bir: Yeah.

Mr. Sonshine: Yeah, 11 stories. So it'll be relatively quick to build. You know, I wouldn't even hazard a guess as to what the cap rate would be on a brand-new apartment building in Surrey, British Columbia, where the housing is very expensive and very scarce. But it's maturing, and it'll be from nothing to a lot. We have dozens of those that I'm not sure the public markets actually focus on. I think even on our IFRS valuations, and I'm quite proud of those, I think we are relatively conservative. I'm not saying we're overly conservative.

Edward Sonshine: Yeah, 11 stories. So it'll be relatively quick to build. You know, I wouldn't even hazard a guess as to what the cap rate would be on a brand-new apartment building in Surrey, British Columbia, where the housing is very expensive and very scarce. But it's maturing, and it'll be from nothing to a lot. We have dozens of those that I'm not sure the public markets actually focus on. I think even on our IFRS valuations, and I'm quite proud of those, I think we are relatively conservative. I'm not saying we're overly conservative.

So it will be relatively quick to build and.

Yeah, I I wouldn't even hazard a guess as to what the cap rate would be on a brand new apartment building in Surrey, British Columbia, where the Oh, the housing that it's very expensive and.

Very scarce.

But.

It's material and it'll be from nothing to a lot.

And we have dozens of those that I'm not sure the public markets actually focused on.

I think even out on our I FRS valuations.

And I'm quite proud of notes I think we are relatively conservative I'm, not saying were overly conservative but.

Mr. Sonshine: You know, when even our auditors, when they're asked by our audit committee, they say, "You know, on the sort of spectrum of aggressive on one side, and very conservative on the other, where would you put RioCan's valuation?" Always a tense moment in an audit committee meeting. Our external auditors said, "Well, we'd actually put it right in the middle." That made everybody very happy. I'm not sure the public markets and the analyst community take into account that IFRS values are actually, I shouldn't say largely, have a large dose of subjectivity in them. That you know if you drill down into everybody's IFRS values, they're not all created equal. I think ours, as compared to everybody else's, are probably understated.

Edward Sonshine: You know, when even our auditors, when they're asked by our audit committee, they say, "You know, on the sort of spectrum of aggressive on one side, and very conservative on the other, where would you put RioCan's valuation?" Always a tense moment in an audit committee meeting. Our external auditors said, "Well, we'd actually put it right in the middle." That made everybody very happy. I'm not sure the public markets and the analyst community take into account that IFRS values are actually, I shouldn't say largely, have a large dose of subjectivity in them. That you know if you drill down into everybody's IFRS values, they're not all created equal. I think ours, as compared to everybody else's, are probably understated.

You know when even our auditors when they are asked by our audit Committee. They said on the on the sort of spectrum of aggressive on one side and very conservative on the other what would you put weekends valuation always eight tenths moment in a lot of committee meeting and our external auditors said most would actually put it right in the middle.

And that made everybody very happy, but I'm not sure the public markets.

And the analyst community take into account that.

I FRS values are actually a large family.

How do I should say largely have a large dose subject excuse me if subjectivity in them and that you know if you've drilled down into everybody's a FRS values, they're not all created equal and I think cars.

As compared to everybody else's are probably understated.

Mr. Sonshine: I think, you know, and I understand analysts have to look at numbers, and I understand all that, but I think when we get the analysts and the public markets, which are starting to look beyond those quarter-to-quarter numbers, 'cause this is not a quarter-to-quarter business. This is a long-term business. You know, what I'm quite proudest of RioCan is that we've made very long-term changes we've done in a few years, which is, you know, lightning speed for a entity of, you know, having properties in excess of CAD 15 billion of value. I think that's part of what we have to do. That's the educational part.

Edward Sonshine: I think, you know, and I understand analysts have to look at numbers, and I understand all that, but I think when we get the analysts and the public markets, which are starting to look beyond those quarter-to-quarter numbers, 'cause this is not a quarter-to-quarter business. This is a long-term business. You know, what I'm quite proudest of RioCan is that we've made very long-term changes we've done in a few years, which is, you know, lightning speed for a entity of, you know, having properties in excess of CAD 15 billion of value. I think that's part of what we have to do. That's the educational part.

So I think you Alan I understand analysts have to look at numbers and I understand all that but I think when we get the analysts and the public markets, which are starting to.

Look beyond those quarter to quarter numbers, because this is not a quarter to quarter business. This is a long term business and what I'm quite proud system recast is that we've taken made very long term changes we've done in a few years, which is lightning speed for a entity of.

Having properties in excess of a $15 billion a value. So I think that's part of what we have to do that's the educational apart and it all out she and Jonathan.

Mr. Sonshine: You know, Qi and Jonathan, and myself to a much lesser extent, will be out there pounding the pavement, meeting with whoever wants to meet us, both in Canada, the United States, and even other places, to hear exactly what we think is going on here. That's one part of it. Other part of it will be quite simply like we've done in the past, but we will continue to do it, to do actual transactions with third parties which unlock that value, and give us cash. You know, like in Mississauga on what was a, without being, you know, too demeaning to our own property, a Value Village anchor shopping center at Sandalwood and Hurontario.

Edward Sonshine: You know, Qi and Jonathan, and myself to a much lesser extent, will be out there pounding the pavement, meeting with whoever wants to meet us, both in Canada, the United States, and even other places, to hear exactly what we think is going on here. That's one part of it. Other part of it will be quite simply like we've done in the past, but we will continue to do it, to do actual transactions with third parties which unlock that value, and give us cash. You know, like in Mississauga on what was a, without being, you know, too demeaning to our own property, a Value Village anchor shopping center at Sandalwood and Hurontario.

And myself to a much lesser extent I will be out there pounding the pavement meeting with whoever wants to meet US both in Canada, the United States and even other places.

To your exactly what we think is going on here. So that's one part of it other part of it will be quite simply like we've done in the past, but we will continue to do it.

Two I'd do actual transactions with third parties, which unlocking that value a and give us cash no like in a in Mississauga on what was a.

Without being.

You know to demeaning two on property a value village anchored shopping center at does sandalwood on here, Ontario, and we did a deal with a with our wonderful partner Boardwalk read where they bought a 50% interest and I think the values about $80 $80 per square foot.

Mr. Sonshine: We did a deal with our wonderful partner, Boardwalk REIT, where they bought a 50% interest, and I think the value was about CAD 80.

Edward Sonshine: We did a deal with our wonderful partner, Boardwalk REIT, where they bought a 50% interest, and I think the value was about CAD 80.

Pammi Bir: CAD 80 per sq ft.

Mr. Sonshine: CAD 80 per sq ft on something that had, again, no value at that moment. We sold half. Obviously, at that point, we could recognize our half as being worth CAD 80. We've done those with Killam REIT, and we've, you know, done them, quite frankly, in quite a few places. That will continue as one way of really unlocking that value and making people understand. I think we will do it probably more often with financial partners than just operating partners, because over the last several years, I think we've understood. We've learned a lot from our partners and from our own experience. You know, I think we're ready to go more financial than operating, but we're certainly not gonna abandon our wonderful partners that we already have.

Edward Sonshine: CAD 80 per sq ft on something that had, again, no value at that moment. We sold half. Obviously, at that point, we could recognize our half as being worth CAD 80. We've done those with Killam REIT, and we've, you know, done them, quite frankly, in quite a few places. That will continue as one way of really unlocking that value and making people understand. I think we will do it probably more often with financial partners than just operating partners, because over the last several years, I think we've understood. We've learned a lot from our partners and from our own experience. You know, I think we're ready to go more financial than operating, but we're certainly not gonna abandon our wonderful partners that we already have.

On something that had again had no value at that moment and we sold half obviously at that point, we could recognize our half as being more at $80.

And we've done those would kill them right. We've we've done them quite frankly in quite a few places.

That will continue.

As one way of really unlocking that value and making people understand I think we will do it probably more often with.

Financial partners than just operating partners because over the last several years I think we've understood. We've learned a lot from our partners and from our own experience. So.

I think we're ready to go more financial and operating but we're certainly not going abandon our wonderful partners that we already have a you know ranging all even get a shadow to woodburn on that one where we've done a lot of deals with and we'll continue hopefully to do some so those are the two ways that I know of to to try.

Mr. Sonshine: You know, I'll even give a shout-out to Woodbourne on that one, where we've done a lot of deals with and will continue hopefully to do some. Those are the two ways that I know of to try to narrow that gap between what we really think RioCan is worth and what the public markets are prepared to pay for it. If you can think of any other ways, you know, I'd be happy to hear about them privately or publicly if you wish.

Edward Sonshine: You know, I'll even give a shout-out to Woodbourne on that one, where we've done a lot of deals with and will continue hopefully to do some. Those are the two ways that I know of to try to narrow that gap between what we really think RioCan is worth and what the public markets are prepared to pay for it. If you can think of any other ways, you know, I'd be happy to hear about them privately or publicly if you wish.

To a narrow that gap between what we really think recanted his word from what the public markets are prepared to pay for it.

And if you can think of any other ways.

Yeah, I'd be happy to hear about them privately or publicly if you average.

No. That's a very good color I guess in short educate and sell.

Pammi Bir: No, that's a very good color, I guess. In short, educate and sell.

Mr. Sonshine: That's it.

Edward Sonshine: That's it.

Good.

Pammi Bir: Just maybe one follow-up on that with respect to the density value. You know, we've heard some discussion from maybe some of your peers as to perhaps altering or giving more credit to that value in their IFRS or for GAAP purposes. You know, have you considered that at all in terms of changing perhaps how you book that value other than just on sales or on actual completion of projects?

Okay. So just maybe one follow up on that with respect to the density value.

We've heard some discussion from maybe some of your peers as to perhaps said altering or giving more credit.

To that value in in their eye for us or for GAAP purposes.

Have you considered that at all in terms of changing perhaps how you book that value other than just on sales or on actual projects. We we look at something we continuously talk about and I'm certainly not going to speak to how we account for things I I think the match the web managed to to stay we're happy.

Mr. Sonshine: Look, it's something we continuously talk about, and I'm certainly not gonna speak to how we account for things. I think the way I've managed to stay where I am, one of the ways is to, at the end of the day, bow to our very excellent CFO and finance team and external auditors. When it comes to financial accounting and reporting, we're not gonna be the guys that push the envelope. Having said that, you know, I've thrown around some, what some people might think as crazy numbers in the past, but I think as the years go by, you will see they are not crazy. That number that I've thrown out in the past, which is, it's still there.

Edward Sonshine: Look, it's something we continuously talk about, and I'm certainly not gonna speak to how we account for things. I think the way I've managed to stay where I am, one of the ways is to, at the end of the day, bow to our very excellent CFO and finance team and external auditors. When it comes to financial accounting and reporting, we're not gonna be the guys that push the envelope. Having said that, you know, I've thrown around some, what some people might think as crazy numbers in the past, but I think as the years go by, you will see they are not crazy. That number that I've thrown out in the past, which is, it's still there.

One of the one other ways is to.

And the day vow to our very excellent CFO and finance team and external auditors and when it comes to financial accounting and reporting we're not going to be the guys that pushed novel, having said that you know I've thrown around some what some people might think as crazy numbers in.

Passed but I think as the years go by you will see they are not crazy.

And that number that I've thrown out in the past, which it is still there even though because as Jonathan quite rightly pointed out even as we realize and harvest some of what Weve continued to do we're creating new so I've thrown around the number of a billion dollars a value in the past I firmly believe its.

Mr. Sonshine: Even though because as Jonathan quite rightly pointed out, even as we realize and harvest some of what we've continued to do, we're creating new. I've thrown around the number of CAD 1 billion of value in the past. I firmly believe it's there, in some of this density, and quite frankly, it's probably a number that's grown since I started throwing it around because the values of zone density, particularly in the GTA, where, you know, as Qi said, well over 60% of ours is, has quite frankly even astonished me, in the last year or two, to throw around numbers of CAD 100 a foot, for zone density today is considered giving it away. That may apply to locations like, you know, well outside of the 416.

Edward Sonshine: Even though because as Jonathan quite rightly pointed out, even as we realize and harvest some of what we've continued to do, we're creating new. I've thrown around the number of CAD 1 billion of value in the past. I firmly believe it's there, in some of this density, and quite frankly, it's probably a number that's grown since I started throwing it around because the values of zone density, particularly in the GTA, where, you know, as Qi said, well over 60% of ours is, has quite frankly even astonished me, in the last year or two, to throw around numbers of CAD 100 a foot, for zone density today is considered giving it away. That may apply to locations like, you know, well outside of the 416.

There.

And in some of this density and quite frankly, it's probably a number that's grown since I started throwing around because values of zone density I, particularly in the GCA, where no as chip said well over 60% of ours is.

I was quite frankly, even astonished meet a in the last year or two.

To tour around numbers of $100 a foot.

For zone density today is considered giving it away and that may apply to locations like well outside of the 416.

Mr. Sonshine: Values that are, you know, in the downtown area, I don't even know what they are anymore, but they are in the multiple hundred dollars, CAD 300 to 400, quite frankly, on occasion. You know, what is the value, which today we don't even carry of, where we're now zoned at Eglinton and Laird, where we've, you know, we're pretty well through the process of close to 1.5 million sq ft of a mixed-use development, of which about 1.3 million is residential, I think. Well, maybe 1.25 million, a little bit of office and a little bit of retail. A tiny bit of retail in the scheme of things. You know, what's the value of that today? I honestly couldn't tell you. It's material.

And then values that are.

Edward Sonshine: Values that are, you know, in the downtown area, I don't even know what they are anymore, but they are in the multiple hundred dollars, CAD 300 to 400, quite frankly, on occasion. You know, what is the value, which today we don't even carry of, where we're now zoned at Eglinton and Laird, where we've, you know, we're pretty well through the process of close to 1.5 million sq ft of a mixed-use development, of which about 1.3 million is residential, I think. Well, maybe 1.25 million, a little bit of office and a little bit of retail. A tiny bit of retail in the scheme of things. You know, what's the value of that today? I honestly couldn't tell you. It's material.

You know in the in the downtown area I don't even know what they are anymore, but they are in the multiple hundred dollars three to $400 quite frankly on occasion and you know what is the value, which today, we don't carry of.

Where were now zone, then and on a Atkinson Unlevered, where Weve you know, we're pretty well through the process.

Have a close to a million and has have square feet of a mixed use development of which about a million three is residential I think well maybe had money into 50 little bit of office and a little bit of retail <unk>.

A tiny bit at retail in the scheme of things.

Now, what's the value that today I honestly couldn't tell you it's material.

Mr. Sonshine: I can't tell you. Or where we are well down the road, for example, at RioCan Hall, which is probably the last major privately-owned, undeveloped piece in the entire entertainment area. We're gonna end up with about 850,000sq ft of density there. Got a lot of community sign-off, a lot of political sign-off. We're not all the way there yet. That'll take us some time still. What is that worth? Beats me, right now. I'll tell you, it's a lot worth a lot more than what we're carrying that property at, for IFRS. I could bore you with many, many examples. Those are just a couple of high-profile ones that people on this call may know them.

Edward Sonshine: I can't tell you. Or where we are well down the road, for example, at RioCan Hall, which is probably the last major privately-owned, undeveloped piece in the entire entertainment area. We're gonna end up with about 850,000sq ft of density there. Got a lot of community sign-off, a lot of political sign-off. We're not all the way there yet. That'll take us some time still. What is that worth? Beats me, right now. I'll tell you, it's a lot worth a lot more than what we're carrying that property at, for IFRS. I could bore you with many, many examples. Those are just a couple of high-profile ones that people on this call may know them.

I can't tell your where we are well down the road for example at Recant Hall, which is probably the last major privately owned undeveloped piece and the entire entertainment area, we're going to end up with about 850000 square feet of density there.

Got a lot of community sign awful lot of political sign up we're not all the way there yet that will take a sometimes still what is that worth beats me right now, but I tell you. It's a lot were worth a lot more than what we're carrying that property at on for IRS. So I could bore you with.

Many many examples those are just a couple of high profile ones that people on this call may know them.

HM.

Pammi Bir: Thanks very much. I will turn it back.

Thanks, very much I will turn it back.

Mr. Sonshine: Okay. Thanks, Pammi Bir.

Edward Sonshine: Okay. Thanks, Pammi Bir.

Okay. Thanks, Jeremy.

Our next question comes online Sam Damiani of TD Securities. Please go ahead. Your line is open.

Operator 3: Our next question comes from the line of Sam Damiani of TD Securities. Please go ahead. Your line is open.

Operator: Our next question comes from the line of Sam Damiani of TD Securities. Please go ahead. Your line is open.

Sam Damiani: Thank you. Good morning, everyone. Just to follow on similar question line, you know, how quickly do you expect RioCan Hall, Laird, and also Eglinton East to achieve zoning status, or any of these 2020,

Thank you good morning, everyone. I was just a follow on similar question lined up there.

You know how quickly do you expect a call beside it also.

To achieve zoning status or any of these 2020.

Mr. Sonshine: No. You know, as I think we've mentioned before, there's always two aspects to redeveloping these properties. One, and a very important one, is the zoning. The good news is once you get it, you get it, and you keep it. You know, Leaside, the Eglinton and Laird property, we'll have that in what I'll call pretty final form this year. You know, we've gone through all the major hoops. Now it's, dare I say it, and our development group will probably cringe when I say this, just paperwork now. The creativity has actually already been accomplished. RioCan Hall probably finish zoning sometime in early 2021, I'm gonna guess.

No you know, there's there's a as I think we've.

Edward Sonshine: No. You know, as I think we've mentioned before, there's always two aspects to redeveloping these properties. One, and a very important one, is the zoning. The good news is once you get it, you get it, and you keep it. You know, Leaside, the Eglinton and Laird property, we'll have that in what I'll call pretty final form this year. You know, we've gone through all the major hoops. Now it's, dare I say it, and our development group will probably cringe when I say this, just paperwork now. The creativity has actually already been accomplished. RioCan Hall probably finish zoning sometime in early 2021, I'm gonna guess.

Mentioned before there's always two aspects to read developing these properties one and a very important one is the zone.

News is once you get it you get it and you keep it and you.

Lee side, they haven't sent a letter property I will have that in what I'll call pretty final form this year.

You know we've gone through all the major hoops now its dare I say in our development group will probably a cringed when I say this just paperwork now.

[laughter]. The creativity is is as actually already been accomplished.

We can haul probably finish zoning sometime in early 2021, I'm going to guess, but then becomes quite frankly, the second part of the whole equation, it's called working with your tenants to actually make the property available for redevelopment not always in our control.

Sam Damiani: Yeah.

Mr. Sonshine: Comes, quite frankly, the second part of the whole equation. It's called working with your tenants to actually make the property available for redevelopment. Not always in our control. Certainly, it's eventually in our control because every lease does have an end date and a final renewal date. Sometimes it's bad, but most times it's good. We are just about everybody's largest landlord, and that gives us a very deep relationship with every single tenant that we have in those two properties, for example. While I can't tell you today when either one of those will actually start, I can tell you that, you know, well, most likely, the Eglinton Crosstown will actually be finished before we start on lease side.

Edward Sonshine: Comes, quite frankly, the second part of the whole equation. It's called working with your tenants to actually make the property available for redevelopment. Not always in our control. Certainly, it's eventually in our control because every lease does have an end date and a final renewal date. Sometimes it's bad, but most times it's good. We are just about everybody's largest landlord, and that gives us a very deep relationship with every single tenant that we have in those two properties, for example. While I can't tell you today when either one of those will actually start, I can tell you that, you know, well, most likely, the Eglinton Crosstown will actually be finished before we start on lease side.

Certainly it's eventually in our control because every lease does have an end date and a five [laughter], but you know we have we are just about sometimes it's bad but most times is good we're just about everybody's largest landlord.

And that gives us a very deep relationship with every single tenant.

That we haven't those two properties for example.

So while I can't tell you it today when ER either one of those will actually start.

I can tell you a that.

You know most likely the Evans and cost on will actually be finished before we start.

We side, but it really depends on when I remain intense there which were essentially down to one.

Mr. Sonshine: It really depends on when our remaining tenants there, which we're essentially down to one or two, you know, when they. We're working with them constantly on this to find suitable relocation premises. Not the easiest thing in a very busy city like Toronto. Once we've achieved that zoning, we can be remarkably patient. Keep in mind that even once you have your zoning, and that's how glacially this process works and why we're so proud that we started many years before everybody else, and why we already have buildings, you know, in operation.

Edward Sonshine: It really depends on when our remaining tenants there, which we're essentially down to one or two, you know, when they. We're working with them constantly on this to find suitable relocation premises. Not the easiest thing in a very busy city like Toronto. Once we've achieved that zoning, we can be remarkably patient. Keep in mind that even once you have your zoning, and that's how glacially this process works and why we're so proud that we started many years before everybody else, and why we already have buildings, you know, in operation.

Or too.

When they are and we're working with them constantly on that [laughter] find suitable relocation premises not the easiest thing in a very busy city like Toronto, but the once we've achieved that's noting we can be remarkably patient.

And keep in mind that even once you are happier zoning a and that's how glacially. This process works and why we're so proud that we started many years before anybody else and why we already have buildings.

You know in operation from the time of actually getting your zoning to actually being able to put a shovel in the ground because of site plan agreements section 37 agreements building permit applications and all the other groups you have to jump through.

Mr. Sonshine: From the time of actually getting your zoning to actually being able to put a shovel in the ground because of site plan agreements, Section 37 agreements, building permit applications, and all the other hoops you have to jump through, that I dismissed as mere paperwork, it's probably a year and a half. It's certainly a minimum of a year. I would hope that Laird can get started sometime in 2023. I don't think it'll be much before then. It might be a little bit later, depending on our tenants. RioCan Hall would be later than that, just because we're not zoned yet, and we've got quite a few more tenants to somehow accommodate. Does that give you some? That was a very long answer, but I could talk for about an hour on this one.

Edward Sonshine: From the time of actually getting your zoning to actually being able to put a shovel in the ground because of site plan agreements, Section 37 agreements, building permit applications, and all the other hoops you have to jump through, that I dismissed as mere paperwork, it's probably a year and a half. It's certainly a minimum of a year. I would hope that Laird can get started sometime in 2023. I don't think it'll be much before then. It might be a little bit later, depending on our tenants. RioCan Hall would be later than that, just because we're not zoned yet, and we've got quite a few more tenants to somehow accommodate. Does that give you some? That was a very long answer, but I could talk for about an hour on this one.

That I dismissed as mere paperwork.

It's probably a year and a half it's certainly a minimum of a year. So I would hope that a layer can get started sometime in 2023.

I don't think it'll be much before then it might be a little bit later, depending on our dense up we can haul would be later than that just because we're not his own jet and we've got quite a few more tenants to somehow comedy.

Does that give you. Some said it was a very long answer, but I could talk for about an hour on this yet although there was very helpful.

Sam Damiani: Yeah. No, that was very helpful. Maybe just switching gears to occupancy. Do you have some guidance for 2020, both for year-end and maybe Q1? Also, how are the backfilling of Home Outfitters, Bombay, and Payless going so far?

Maybe just switching gears to occupancy or do you have some guidance for 2020, both for yearend, maybe Q1 and also how hard they use up back filling up almost as Bobby appeal us going so far.

Two questions there.

Mr. Sonshine: Two questions there.

Edward Sonshine: Two questions there.

Jonathan Gitlin: Yeah. In terms of our occupancy guidance, I mean, I think it's just gonna be consistent with where we are now. I think that, we've, you know, we have seen a couple of tenant bankruptcies at the beginning of 2020, but at the same time, we're doing quite well in the backfill of our Bombay, Bowring, and Payless. I don't see any significant spike in occupancy, nor do I see any significant decline in occupancy going forward. With respect to the backfill of Bombay, Bowring, and Payless, our leasing team is doing a great job, as we suspected they would. I mean, a lot of these operations were paying below-market rent, and in the backfill, we are achieving well above what they were paying.

In terms of our occupancy guidance I mean, I think it's that's going to be consistent with where we are now I think that we've you know we have seen a couple of tenant bankruptcies at the beginning of 2020, but at the same time, we're doing quite well in the backfill of our Bombay Payless, and Oh, sorry, Bombay bearing and paid.

Yes.

So I don't see any significant spike in occupancy nor do I see any significant decline in occupancy going forward a with respect to the backfill of Bombay barring an payless our leasing team is doing a great job as we suspect that they would I mean, a lot of these a lot of these operations ripping below mark.

<unk> brand and in the backfill, we're achieving a well above what they were paying so far we leased by area about 67% of the Bombay bearing stores, they've been backfill and there's good progress on the remainder ER and with respect to Oh, sorry, and by minimum rent we're already at about 87% of.

Jonathan Gitlin: So far, we've leased by area about 67% of the Bombay and Bowring stores. They've been backfilled, and there's good progress on the remainder. And by minimum rent, we're already at about 87% of the prior income coming out of Bombay and Bowring. And then with respect to Payless, we're at 69% of the space and about a little over 92% of the revenue. And again, great leads on the remaining space. As you can see, the leasing team has made significant progress and continues to, and I think that story will be wrapped up by the middle to end of this year.

The prior income coming out of Bombay bearing and then with respect to pay lots were at 69% of the space in about 92, Oh, a little over 92% of the revenue.

And again, great leads on the remaining space. So maybe you could see it believes it has made significant progress and continues to and I think that story will be wrapped up by the middle to end of this year. That's great. Maybe one last question how's it going with the well in terms of the retail leasing.

Sam Damiani: That's great. Maybe one last question. How is it going with The Well in terms of the retail leasing?

Jonathan Gitlin: It's going very well, no pun intended. I can't help but use that line way too often. I mean, at this point, we're still a couple of years, at least a couple of years away from an opening. This really is the year 2020 where we're gonna see a lot of sort of finalized deals and a lot more traction on the backs of some of those finalized deals. We're in deep discussions with many tenants, and we've already completed a few deals, but I think by the middle to end of this year, there will be some more thorough and very impressive updates in that regard.

It's going very well no pun intended I can't help but you've outlined way too often I mean at this point, we're still a couple of years at least couple of years away from an opening and so this this really is the your 2020, where we're going to be a lot of sort of finalized deals in a lot more traction on the back from some of those finalized field.

And so we are we're in deep discussions with many tenants and we've already completed a few deals, but I think by the middle to end of this year, there will be some more thorough and very impressive updates in that regard.

Great. Thanks, I'll turn it back thank you thank them.

Sam Damiani: Great. Thanks. I'll turn it back. Thank you.

Jonathan Gitlin: Thanks, Sam.

And our next question comes on line of Dean Wilkinson of RBC. Please go ahead. Your line is open. Thank you good morning, everyone ordering Jane.

Operator 3: Our next question comes from the line of Dean Wilkinson of CIBC. Please go ahead. Your line is open.

Operator: Our next question comes from the line of Dean Wilkinson of CIBC. Please go ahead. Your line is open.

Dean Wilkinson: Thank you. Good morning, everyone.

Mr. Sonshine: Morning.

Edward Sonshine: Morning.

Jonathan Gitlin: Morning, Dean Wilkinson.

Dean Wilkinson: Ed, just going back to your comment, which I think most people agree with, on the balance sheet being understated, and then just looking at the capital structure, you've got sort of debt to adjusted EBITDA at 8x, but if you back out the development costs, 6.5.

Just going back to two to your comment, which I think most people agree with on on the balance sheet being understated.

And then just looking at the capital structure right, you've got straight debt to adjusted EBITDA at eight times, but if you back out the development costs.

Six six and a half that's right. If you. So if you normalized EBITDA that you would expect from those development costs would we be looking at perhaps like a sub six times and then when you're looking at your debt to gross book value or debt to total assets.

Mr. Sonshine: That's right.

Edward Sonshine: That's right.

Dean Wilkinson: If you normalize the EBITDA that you would expect from those development costs, would we be looking at perhaps like a sub-6x? When you're looking at your debt to gross book value or debt to total assets, perhaps something in the low 30% range?

That's something in the low 30% range.

Mr. Sonshine: Well, you know, that is a future that quite frankly, we're striving to.

Edward Sonshine: Well, you know, that is a future that quite frankly, we're striving to.

Well you know that is a future that quite frankly, we're striving to <unk>.

Dean Wilkinson: Mm-hmm.

Mr. Sonshine: You know, like say, "Oh, Eddie, you got a, you know, RioCan's got a great balance sheet." My answer is always, "We want it to be a lot better." You know, we wanna ultimately be able to compare ourselves to our American peers, rather than our Canadian, which at the risk of sounding really snotty, I don't think we actually have any in Canada. We have not done the detailed work that you suggested. It's actually an enormous task. We do five-year projections. As you can imagine, there's an awful lot of moving parts.

Edward Sonshine: You know, like say, "Oh, Eddie, you got a, you know, RioCan's got a great balance sheet." My answer is always, "We want it to be a lot better." You know, we wanna ultimately be able to compare ourselves to our American peers, rather than our Canadian, which at the risk of sounding really snotty, I don't think we actually have any in Canada. We have not done the detailed work that you suggested. It's actually an enormous task. We do five-year projections. As you can imagine, there's an awful lot of moving parts.

Like say already you've got it yeah weekends got a great balance sheet and my answer is always we want it to be a lot better.

And you know we want to ultimately be able to compare ourselves to our American peers, rather than a Canadian which at the risk of sounding really snotty I don't think we actually have any in Canada, but so we have not done this tales of work.

That you suggested its action enormous Baskin, we do you do we do do.

Five year projections.

But as you can imagine there's an awful lot of moving part.

Dean Wilkinson: Yeah

Mr. Sonshine: ... in those things. You know, what one, I can't remember which famous British prime minister said it, but his comment was, "Things happen." They do. Things happen. You know, these long-term projections are very difficult to take a lot of comfort and meaning from. But having said that, the kind of numbers you're mentioning is what we are ultimately, and it'll take a few years, striving to become.

Edward Sonshine: ... in those things. You know, what one, I can't remember which famous British prime minister said it, but his comment was, "Things happen." They do. Things happen. You know, these long-term projections are very difficult to take a lot of comfort and meaning from. But having said that, the kind of numbers you're mentioning is what we are ultimately, and it'll take a few years, striving to become.

And those things and.

No one can remember, which famous British Prime Minister at said it but that his comment was things happen and.

They do things happen. So you know these these long term projections are very very difficult to take a lot of comfort, meaning fun, but having said that the kinda numbers you're mentioning is what we are ultimately and it'll take a few years striving to become.

And then when you look at <unk>.

Dean Wilkinson: When you look at sort of that percentage of PUD on the balance sheet, then I guess sort of where I'm getting to is it looks like there's a runway to materially increase that, and you actually won't be de facto taking on more leverage. In the absolute sense, you will, but on the stabilization of those developments that, you know, we could see a material increase in the PUD without the requirement of any additional capital coming in and

Sort of that percentage of Todd on the balance sheet Dan.

I guess sort of weren't getting too is.

It looks like there's there's a runway to materially increase that.

And you actually won't be de facto taking on more leveraging in in the absolute sense you will put on the stabilization of those developments that we could see a material increase in in in the pod without the requirement of any additional capital coming in and I elaborate about flat I think that's correct.

Mr. Sonshine: I think that's correct in some parts. I don't think, at least in the short term of the next couple of years, you will see a material increase in PUD because things are, you know, we've got a lot of big projects being completed over the next couple of years. First and foremost, The Well, which at our end, by the time we're getting close to completion will be, I don't know, CAD 700 million of PUD. You know, as that moves into income over the course of 2022 and 2023, it'll materially diminish. And same with Yonge Sheppard Centre and, you know, some other big deals. I don't think it'll go up much. I think we'll stay in that, you know, I'll give it a broad range, CAD 1 billion to 1.5 billion.

Edward Sonshine: I think that's correct in some parts. I don't think, at least in the short term of the next couple of years, you will see a material increase in PUD because things are, you know, we've got a lot of big projects being completed over the next couple of years. First and foremost, The Well, which at our end, by the time we're getting close to completion will be, I don't know, CAD 700 million of PUD. You know, as that moves into income over the course of 2022 and 2023, it'll materially diminish. And same with Yonge Sheppard Centre and, you know, some other big deals. I don't think it'll go up much. I think we'll stay in that, you know, I'll give it a broad range, CAD 1 billion to 1.5 billion.

In some parts I don't think at least in the short term of the next couple of years, you will see a material increase in Budd.

As things are you know, we've got a lot of big projects being completed over the next couple of years.

First and foremost a well which at our end Oh by the time, we're getting close to completion will be I don't know 700 million.

You know as that moves into income over the course of 22 and 23.

Yeah.

Diminish.

ER and same with young Shepherd Center and a you know some other big deals. So I don't think it'll go up much I think will stay in that I'll give it a broad range, but he into a began and a half a range of pod.

Dean Wilkinson: Mm-hmm

Mr. Sonshine: Range of PUD. Having said that, I think the cash flow and leverage, cash flow will go up materially and which will help our net debt to EBITDA numbers. Leverage, as we recognize the value of these completed developments, will go down as a percentage of our assets. That's the plan.

Edward Sonshine: Range of PUD. Having said that, I think the cash flow and leverage, cash flow will go up materially and which will help our net debt to EBITDA numbers. Leverage, as we recognize the value of these completed developments, will go down as a percentage of our assets. That's the plan.

But having said that I think the cash flow and leverage Cashel will go up materially and which will help our net debt to EBITDA numbers and leverage as we recognize the value of these completed developments will go down as a percentage of our assets that's that.

The plan.

Dean Wilkinson: Okay, great. No, it sounds good. That was it for me. I'll hand it back. Thanks, everyone.

Okay, great not sounds good that was it for me I'll hand, it back thanks, everyone. Thank you and kidding.

Mr. Sonshine: Thank you. Thank you, Dean. Are we out?

Edward Sonshine: Thank you. Thank you, Dean. Are we out?

Are we out we do have one question last okay.

Operator 3: We do have one question left.

Operator: We do have one question left.

Mr. Sonshine: Okay.

Edward Sonshine: Okay.

Operator 3: Your next question comes from the line of Johann Fonseka of Raymond James. Please go ahead. Your line is open.

Operator: Your next question comes from the line of Johann Fonseka of Raymond James. Please go ahead. Your line is open.

Your next question comes on line of Joanne Rodriguez.

James. Please go ahead your line is open.

[laughter] I most of my questions have been answered.

Johann Fonseka: Hi. Most of my questions have been answered. Just a couple. One, in terms of zoning, are you. Is the expectation that you get 100% of what's submitted or, you know, are you grossing up and applying for a bit more with the expectation that you get 6.5? Some kind of expectation.

Just a couple one intra zoning.

Are you.

Dictation that you get 100% of what limited or.

Are you grossing up.

Applying for a bit more with the expectation that you get 6.5.

Or not.

Mr. Sonshine: I don't know what you mean by the 6.5, but basically.

Edward Sonshine: I don't know what you mean by the 6.5, but basically.

I don't know what you mean by the 6.5, but basically the zoning the applications that have been submitted all I think by and large we are not sort of your typical private developer.

Johann Fonseka: Sorry, the zoning, the applications that have been submitted.

Mr. Sonshine: I think by and large, we are not sort of your typical private developer. We approach things where we have many community and political consultations before we ever put together a final zoning plan. By the time it is actually submitted, you know, we're pretty comfortable that what we are asking for within, I'll say 5% at tops, will be what we get. I think a pretty good example of that is Eglinton and Laird, which we've been in the process of community consultations, meeting with actually, you know, two successive councilors, because, you know, with the change in riding boundaries that occurred in 2018. We inherited a different councilor.

Edward Sonshine: I think by and large, we are not sort of your typical private developer. We approach things where we have many community and political consultations before we ever put together a final zoning plan. By the time it is actually submitted, you know, we're pretty comfortable that what we are asking for within, I'll say 5% at tops, will be what we get. I think a pretty good example of that is Eglinton and Laird, which we've been in the process of community consultations, meeting with actually, you know, two successive councilors, because, you know, with the change in riding boundaries that occurred in 2018. We inherited a different councilor.

We we approach things, where we have many community and political consultations before we ever put together a final zoning plan so that by the time it is actually submitted.

You know, we're pretty comfortable that what we are asking for within I'll say, 5% tops will be what we get and I think kind of a pretty good example of that is.

I don't tend on layered which we've been in the process of community consultations.

Meeting with the actually you know two successive counselors.

Because the you know with.

The change in writing boundaries that occurred.

In 2000, [laughter] I guess in 18, you know we inherited a different counselor. So there's been much much consultation I also very much at the staff level.

Mr. Sonshine: There's been much, much consultation, also very much at the staff level. I think we've always talked about 1.4 million to 1.5 million. That's sort of what we asked for, and that's what we're ending up. By and large, we expect to get what we ask for because of that factor that is maybe a little different than the way other people do things.

Edward Sonshine: There's been much, much consultation, also very much at the staff level. I think we've always talked about 1.4 million to 1.5 million. That's sort of what we asked for, and that's what we're ending up. By and large, we expect to get what we ask for because of that factor that is maybe a little different than the way other people do things.

I think we've always talked about a million for 2 million five that's sort of what we asked for and that's what we're ending up so by and large we expect to get what we asked for because of that that factor that is maybe a little different than that way other people does [laughter].

Johann Fonseka: Okay, thanks. Is there an expectation for asset sales this year?

Okay, Thanks and.

Expectation for asset sales this year.

Mr. Sonshine: I think you're always gonna see some asset sales from RioCan. It's gonna be much more opportunistic this year. We are under no self-imposed numbers anymore. We achieved the milestones that we set out to just over two years ago, two and a half years ago, to achieve, i.e., over 90% of our revenue from the six major markets and over 50%, actually 52.4%, we're at, from the GTA. We don't feel the necessity to do any particular asset sales. Having said that, I have no doubt that we will do some asset sales as the opportunity arises and people seek out, you know, what we own.

I think you're always going to see some asset sales from marine can a it's going to be much more opportunistic this year.

Edward Sonshine: I think you're always gonna see some asset sales from RioCan. It's gonna be much more opportunistic this year. We are under no self-imposed numbers anymore. We achieved the milestones that we set out to just over two years ago, two and a half years ago, to achieve, i.e., over 90% of our revenue from the six major markets and over 50%, actually 52.4%, we're at, from the GTA. We don't feel the necessity to do any particular asset sales. Having said that, I have no doubt that we will do some asset sales as the opportunity arises and people seek out, you know, what we own.

We are under no self imposed numbers anymore, we achieved the milestones that we set out to just over two years ago do an app years ago to achieve I'd.

Over 90% of our revenue from the six major markets in over 50% actually 52.4 were at a fund the DTA.

So we don't feel the necessity.

To to do any particular asset sales so.

Having said that I have no doubt that we will do some asset sales as the opportunity arises and people seek out.

Yeah, what we own.

Okay. Thanks, I'll turn it back thank you.

Johann Fonseka: Okay, thanks. I'll turn it back.

Mr. Sonshine: Thank you.

Edward Sonshine: Thank you.

Operator 3: There are no further questions at this time. I will turn the call back to Mr. Sonshine for closing remarks.

Operator: There are no further questions at this time. I will turn the call back to Mr. Sonshine for closing remarks.

And there are no further questions at this time I will turn the call back to Mr. Sunshine for closing remarks, and thank you very much ano somehow everything's working perfectly like it seems to in Arizona programs, It's 11 am.

Mr. Sonshine: Thank you very much. You know, somehow everything's working out perfectly like it seems to in our zoning programs. It's 11:00AM. Thank you very much for calling in. You know, if we don't talk to you sooner, we'll talk to you in three months. Bye-bye.

Edward Sonshine: Thank you very much. You know, somehow everything's working out perfectly like it seems to in our zoning programs. It's 11:00AM. Thank you very much for calling in. You know, if we don't talk to you sooner, we'll talk to you in three months. Bye-bye.

Thank you very much for.

Calling in and yes, if we don't starting soon I look back in three months Bye bye.

Operator 3: Ladies and gentlemen, thank you for participating in today's conference. This concludes today's program. You may all disconnect. Everyone, have a great day.

Operator: Ladies and gentlemen, thank you for participating in today's conference. This concludes today's program. You may all disconnect. Everyone, have a great day.

Ladies and gentlemen, thank you for participating in today's conference.

Lets today's program you may all disconnect everyone have a great day.

[music].

Q4 2019 Earnings Call

Request a DemoDemo

REI

RioCan REIT

Earnings