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Ring Energy, Inc.

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FY2012 Annual Report · Ring Energy, Inc.
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ANNUAL REPORT 2012

TRAnSFORMIng . . .

REAL 
ESTATE 
INVESTMENT 
TRUST 

Transforming ...

2012– 
An outstAnding yeAr
rioCan is moving forward  
on a number of fronts,  
both in Canada and in the 
united states. indeed, we  
have an exciting portfolio  
of development projects in  
the works, coming on stream 
in Canada’s major cities 
over the next few years. in 
sum, rioCan is continually 
enhancing our portfolio  
to a “best-in-class”  
retail platform.

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       edwArd sonshine, o.ont.,Q.C.  |  Chief Executive Officer
rioCan’s remarkable growth has been supported by our disciplined 
approach and sound financial structure. Over the last three years, in 
challenging capital markets, rioCan’s business model has been validated 
with almost $2.6 billion of new capital from debt and equity markets.  
our more than $14 billion total market capitalization as at december 31, 
2012 is a testament to our strength, leadership and conservative approach.

CEO’s LEttEr tO UnithOLdErs

RioCan’s financial strength is based on prudent 
management of a large and diverse portfolio of retail 
properties generating a quality cash flow stream that 
is conservatively leveraged. RioCan also borrows in 
the unsecured markets through debenture offerings, 
which are supported by RioCan’s balance sheet that 
includes in excess of $1.3 billion of unencumbered 
assets. Of note, RioCan is not dependent on any 
one source of financing or on any one entity. After 
20 years, we’ve charted our course. RioCan is an 
established brand, smartly poised to move on new 
opportunities, while keeping a careful eye on our 
existing portfolio of properties.

 
 
 
 
 
 
 
ThE ANATOMy Of A dEAL 
RioCan’s expertise, financial strength and reputation 
result in countless deals being proposed to us. while 
most deals fail RioCan’s stringent benchmarks, for 
those few deals that are considered, RioCan assembles 
our experts: real estate, financial and operational. In 
some cases, our team develops projections of what 
a transformed property can become. for instance, in 
crowded urban centres, innovative solutions blend 
usage in a single property: retail, office and residential.  
RioCan is proud that such ventures have proven 
successful for tenants and shoppers alike.

A dEAL-by-dEAL APPROACh
In some of our new ventures, RioCan’s task is to 
conceive something dramatic and innovative. After all, 
in today’s complex environments, “one size does not fit 
all.” with social media, for instance, retail strategies 
that worked a decade ago look very different today. 
with constantly evolving consumer behaviours, habits 
and tastes, retail is not only different today, but will be 
very different tomorrow. because of the complexity of 
customer and environment, RioCan focuses on one deal 
at a time, with each deal being overlaid by RioCan’s 
larger strategic plans.

SOUNd APPROAChES TO fINANCIAL MANAgEMENT
RioCan’s financial acumen, leadership and experience 
allow us to consider, and actualize a deal-by-deal 
approach, in “real-time.” for instance, RioCan’s debt 
ladder assures that not all of RioCan’s debt comes 
due in any one year, minimizing risk to capital from 
fluctuations in interest rates. with prudent management 
of cash flow, RioCan ensures a manageable amount of 
debt maturing in a specific year. 

ThE UNITEd STATES—A wINNINg STRATEgy
RioCan used a disciplined, strategic approach when  
it entered the US market in 2009. your REIT’s priority  
was to purchase well established retail properties 
generally anchored by the best supermarket chain 
in the region. Many of these properties are in close 
proximity to an abundance of customers with  
significant disposable incomes.  

To mitigate risk, we partnered with key players who 
understood through extensive experience the dynamics 
of the regional market. Over the past three years, 
RioCan has developed substantial knowledge about, 
and operational expertise in these markets. RioCan 
has assumed the property and asset management 
responsibilities for the properties that make up 
our northeastern US portfolio. In late 2012, RioCan 
concluded a friendly arrangement with Cedar Realty 
Trust, Inc. wherein we sold them our interest in one 
centre, while assuming full ownership of the remainder 
of the properties in the joint venture. I am also pleased 
to announce that RioCan has opened its first regional 
office outside of Canada, in Mount Laurel, New Jersey.

ThE fUTURE IS bRIghT 
with an organic growth philosophy, RioCan’s in-demand 
properties generate strong returns, for tenants and your 
REIT alike. Our leadership in commercial retail space 
has been enhanced with our “deal-by-deal” approach. 
with proven expertise in our business model, RioCan 
unitholders can be assured that their investment will 
be safeguarded, and grow. Indeed, our confidence in 
the growth of RioCan’s cash flow led to an increase in 
RioCan’s annualized distribution for 2013 to $1.41 per 
unit per year. Management’s intention is to provide 
continued growth in our distributions as our cash flow 
grows, while continuing to improve RioCan’s payout 
ratio. This strategy will enable us to provide stable 
growth in our returns to unitholders. 

As always, I thank you, our unitholders for your 
continued support and confidence in RioCan.

Edward sonshine, O.Ont., Q.C.

Chief Executive Officer,

RioCan Real Estate Investment Trust

georgian mall

BARRIE, CAnADA

This is the region’s dominant enclosed mall 
containing more than 1 million square feet 
and more than 150 stores. Located in the 
fast-growing Barrie, Ontario region, which 
is approaching 500,000 people with easy 
highway access.

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Deptford landing

DEPTFORD, nEW JERSEY

Deptford Landing is a 517,057 square foot 
new format retail anchored by Walmart 
and Sam’s Club.

 
 
 
 
 
 
 
         Transforming by Acquisitions |  In today’s fluid economy, 

rioCan has a keen eye for properties that meet its criteria of a conservative risk 
investment, with strong growth potential. historic low interest rates and rioCan’s strong 
financial position allow it to take advantage of valuable properties at advantageous prices. 
including development property acquisitions, rioCan invested more than $1 billion  
in development and investment property acquisitions again in 2012 for the third year  
in a row, providing a solid foundation for continued growth.

Georgian Mall  
Barrie, Canada

With over 150 stores, a dynamic 
complex featuring fashion, sporting 
goods, pharmacy, food and 
entertainment.

Louetta Central
Houston, Texas

A 179,995 square foot retail centre. 
Currently 100% occupied, it  
has a weighted average  
remaining lease term of  
6.4 years and is anchored by  
Kohl’s, Ross Dress for Less  

and Michaels.

RioCan.  Innovative thinking in action. 
In  highly  populated  neighbourhoods  in  urban  Canada,  and  in  select  markets  in  the  United  States,  RioCan 
has a portfolio of 346 properties. with its flexible approach, RioCan is actualizing opportunities in a variety of 
environments, suburban, urban, and in some cases, bustling towns. These opportunities all differ: a sprawling 
mall in the suburbs is tenanted differently than in the concentrated urban core. with larger land sizes in the 
suburbs, unenclosed malls are ideal. In concentrated urban cores, however, innovative solutions facilitate a  
mixed use format: retail, office and sometimes residential. 

with  a  deal-by-deal  approach,  RioCan  ensures  that  the  optimal  solution  is  conceived  for  the  appropriate 
property. with its financial acumen, conservative approach, strong balance sheet, and leadership in retail real 
estate, RioCan leads the new wave of shopping experiences.

 Transforming Through Our Debt Structure | with a well-managed 

balance sheet, RioCan can refinance debt at lower rates, thereby increasing cash flows. An 
established debt ladder increases flexibility, by spreading maturing debt out over various years, 
so that these obligations are not due in any one specific year. All financial measures are based 
on a conservative, reduced-risk approach. rioCan’s ability to realize new opportunities is 
facilitated by its financial leadership and strength.

the stockyards  
Toronto, Canada

At the bustling intersection  
of Weston Road and St. Clair Ave., 
The Stockyards project will  
include 550,000 square feet of 
leasable retail. The site will feature 
stores in every category and 
welcomes Canada’s first newly 

constructed Target.

King street 
Toronto, Canada

Urban innovation in action. 
RioCan is transforming the urban 
landscape with exciting, mixed  
use properties.  

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RioCan. At the forefront of retail real estate. 
from  projects  such  as  RioCan’s  joint  venture  development  with  Allied  Properties  on  King  Street  in  Toronto, 
to  The  Stockyards,  a  19-acre  retail  site  that  will  contain  Target’s  first  Canadian  new  construction  store,  and 
others such as Sage hill in Alberta, RioCan’s deal-by-deal approach matches solution to need. with a proven 
approach that factors demographics, zoning laws and retail trends, RioCan’s customized approach is ideal. Using  
in-depth research, trend forecasting, high-level planning and top-notch project management, RioCan delivers. 

RioCan’s consistently high occupancy rate of 97.4% at december 31, 2012 is supported by strong national retail 
brands across all sectors. A proven approach to retail is why Target’s first purpose built store in Canada is at 
The Stockyards. with its almost two decades experience in the Canadian marketplace, a conservative financial 
approach, and a disciplined strategy across geographically diverse areas, RioCan is at the forefront of retail  
real estate.

 
 
 
 
 
 
 
Canada at a glance

Top 10 Tenants – Canada
As at December 31, 2012, RioCan’s ten largest tenants in Canada 
have the following profile:

Annualized
rental
revenue

Number
of 
locations

NLA
(in thousands)

Percentage
of total
NLA

Weighted average 
remaining lease 
term (years)*

  1    Canadian Tire Corporation (i)

  2    Walmart

  3     Famous Players/Cineplex/Galaxy Cinemas

  4    Metro/Super C/Loeb/Food Basics

  5    Winners/HomeSense/ Marshalls

  6    Loblaws/No Frills/Fortinos/Zehrs/Maxi

  7    Staples/Business Depot

  8    Target

  9    Shoppers Drug Mart

10    Reitmans/Penningtons/Smart Set/Addition-Elle/Thyme Maternity

4.9%

4.7%

4.3%

4.3%

3.3%

2.9%

2.1%

2.1%

1.9%

1.7%

32.2%

106

29

30

58

67

31

48

24

46

125

564

2,103

3,335

1,355

2,125

1,521

1,266

972

1,972

531

520

5.4%

8.6%

3.5%

5.5%

3.9%

3.3%

2.5%

5.1%

1.4%

1.3%

15,700

40.5%

9.1

12.9

10.6

7.3

6.9

7.2

6.6

9.1

9.4

4.5

8.8

* Weighted average based on gross rental revenue
(i) Canadian Tire Corporation includes Canadian Tire/PartSource/Mark's Work Wearhouse/Sport Mart/ Sport Chek/Sports Experts/National Sports/Atmosphere

Annualized rental revenue 
of the Canadian portfolio 
by geographic area at December 31, 2012

Annualized rental revenue 
of the Canadian portfolio 
by property type at December 31, 2012

Ontario
62.3%

Eastern Canada
2.9%

Western Canada
18.7%

Quebec
16.1%

Office
4.4%

Urban Retail
7.6%

Non-Grocery
Anchored Centre
5.0%

Enclosed Shopping
Centre
16.1%

Grocery Anchored
Centre
18.6%

New Format Retail
48.3%

sage Hill 

CALgARY, CAnADA

This dynamic property that will be anchored by Walmart 
and Loblaws includes 33.5 acres of zoned commercial land 
within the desirable Sage Hill Crossing housing subdivision 
project. Of note, Sage Hill is in a fast-growing area of 
northwest Calgary.

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Allied on College street

TOROnTO, CAnADA

This exciting site includes 23,028 square feet of land 
and 185 feet of frontage on vibrant College Street. 
The site will be intensifi ed in partnership with 
Allied Properties REIT and is expected 
to feature a mixed-use development.

 
 
 
 
 
 
 
         Transforming Through Development | rioCan’s team  

of planners and designers conceive dynamic, site-specific projects. These sites address 
particular needs in busy urban centres. Featuring best-of-class retailers,  
these developments are ideal for grocery, clothing and other living needs. using 
rioCan’s sophisticated design, and mixed use formats, space is optimally utilized 
to enhance both neighbourhood and community. these mixed use sites are popular 
destinations with shoppers, retailers and tenants alike.

sage hill  
Calgary, Canada

Allied on College street

Toronto, Canada

A robust project pipeline.
Over  the  next  five  years,  RioCan  has  a  development  pipeline  of  approximately  9.9  million  square  feet,  
(4.9 million in RioCan’s interest).

The East hills joint venture development in Calgary started construction in the second quarter of 2012. The 
expansion  of  the  yonge  Eglinton  centre  in  Toronto  is  expected  in  early  2013.  At  a  mixed  use  urban  site  at  
the  northeast  corner  of  yonge  Eglinton,  with  partners  Metropia  and  bazis  Inc.,  construction  is  anticipated  
to begin in 2014.

In 2011, RioCan acquired a land assembly at bathurst and College, which is expected to be developed into a 
126,000 square foot three-story urban retail building. development is slated for 2014.

In  december  2012,  RioCan,  with  partners  Allied  and  diamond,  acquired  the  current  6.47  acre  globe  and 
Mail site in downtown Toronto which will become a mixed use development. This site, we believe will be a 
landmark, office, retail and residential development in the city of Toronto.

Adding value through intensification.
RioCan has identified exciting opportunities to increase density or complement its existing assets. In december 
2011,  the  Trust  acquired  the  Sheppard  Centre  in  North  Toronto  with  partner  KingSett  Capital.  Sheppard 
Centre is a 673,000 square foot urban mixed use centre with retail, office and residential components; it has 
easy  access  to  two  subway  lines.  The  property  has  potential  for  additional  retail  and  a  larger  residential/
condominium component.

The proposed transit line, and rezoning along Toronto’s Eglinton Avenue can initiate new development and 
intensification.  Currently,  RioCan  has  five  properties  located  along  this  vital  infrastructure  corridor.  New 
transit and rezoning will facilitate RioCan’s timely redevelopment of its Eglinton properties.

                  Opportunities in the United States | with a new  

US office, and a portfolio of select properties in the northeast and Texas, RioCan  
is positioned for growth in the world’s largest economy. with a disciplined approach, rioCan 
can assess the ideal opportunity for an acquisition, in terms of scale, price and geography. 
Meanwhile, RioCan can profitably operate its properties, yet capitalize on select  
opportunities at the appropriate time. 

riverpark shopping Center i, ii
Houston, Texas

Riverpark Shopping Center located 
in the Houston, Texas submarket of 
Sugarland. Riverpark Center I, II is 
a 317,340 square foot unenclosed  
shopping centre anchored by HEB 
Grocery, Walgreens, LA Fitness 

and Bank of America.

Colleyville Center 
Dallas, Texas

Market Street at Colleyville, built in 
2003, is a 72,617 square foot Market 
Street grocery store that is part of 
a larger retail centre in Colleyville, 
Texas, a suburb of Dallas. 

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A winning strategy in the United States. 
RioCan is growing its market share in the United States with research, discipline, and measured thinking.  
Strategically, RioCan operates in highly attractive geographical markets in the northeastern United States, 
including key cities in Pennsylvania, Massachusetts, Connecticut, Maryland, New Jersey, New york, Rhode 
Island, New hampshire and Virginia; and in the southwest, in the major markets of Texas. As high-volume 
retail draws, these properties are all primarily grocery anchored. 

To mitigate risk, RioCan partnered in these properties with leading US retail management companies. based 
on the success of its US ventures, RioCan has dissolved its joint venture with Cedar Realty Trust Inc. RioCan’s 
objective is to continue to grow its US portfolio to a total of about 20% of its overall business.  with a new 
regional office in Mount Laurel, New Jersey, RioCan is confident that its US operations will prove attractive 
in these robust markets.

 
 
 
 
 
 
 
USA at a glance

Top 10 Tenants – U.S.
As at December 31, 2012, RioCan’s ten largest tenants in the U.S. 
have the following profile:

Annualized
rental
revenue

Number
of 
locations

NLA
(in thousands)

Percentage
of total
NLA

Weighted average 
remaining lease 
term (years)*

1,025

11.6%

13.1

  1    Giant Food Stores/ Stop & Shop (Royal Ahold)

  2    Best Buy

  3    PetSmart

  4    Walmart

  5    Michaels

  6    Ross Dress for Less

  7    Staples

  8    Bed Bath & Beyond

  9    Lowe’s

10    Market Street

* Weighted average based on gross rental revenue

NLA of the US portfolio
at December 31, 2012

Annualized rental revenue 
of the US portfolio by state 
at December 31, 2012

9.2%

3.6%

2.9%

2.3%

2.0%

1.8%

1.6%

1.3%

1.3%

1.2%

20

10

15

  5

12

10

9

9

3

2

331

286

776

219

235

166

195

353

138

3.7%

3.2%

8.8%

2.5%

2.7%

1.9%

2.2%

4.0%

1.6%

27.2%

95

3,724

42.2%

West Virginia
3.1%

Connecticut
2.0%

Virginia
3.0%

New Jersey
10.4%

Texas
48.7%

West Virginia
2.9%

Connecticut
2.3%

Virginia
2.8%

New Jersey
6.4%

Texas
53.2%

7.7

6.0

15.5

6.0

5.8

5.8

7.4

15.5

11.1

10.1

Maryland
0.8%

Massachusetts
3.8%

New Hampshire
1.9%

New York
1.3%

Pennsylvania
24.3%

Rhode Island
0.7%

Maryland
0.9%

Massachusetts
3.5%

New Hampshire
2.4%

New York
2.2%

Pennsylvania
22.6%

Rhode Island
0.8%

A skilleD mAnA gemenT TeAm  

rioCan capitalizes on the skill sets and years of experience of its management team. Management encompasses real estate, legal,  
financial, marketing, planning, design and research expertise. In an open culture, RioCan deliberately seeks all perspectives, so as  
to make optimal decisions, exempt from bias, blind spots or partial thinking. in a collegial context, management collaborates to build  
a disciplined, conservative but forward-moving reit.

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top row (from left to right) :  suzAnne MArineAu | renAto vAnin | howArd rosen | nAFtAli sturM      

MArk swAlwell | BArBArA rodgers | lyle goodis | JAne Plett 
stuArt CrAig | dAnny kissoon | roBerto deBArros

Middle row (from left to right) :    kenneth siegel |  JeFF ross | MiChAel Connolly | JordAn roBins 

JonAthAn gitlin | oliver hArrison | John BAllAntyne

12_13

Bottom row (from left to right) :    rAghunAth dAvloor | edwArd sonshine, o.ont., Q.C. | FrederiC A. wAks

 
 
 
 
 
 
 
 
 
BOARD OF TRUsTees  

These prominent trustees are leaders in their respective fields. RioCan benefits from their expertise in their various sectors,  
all with an eye to broadening input on key strategy. similar to management, rioCan trustees have an exceptionally long tenure.  
in this way, a history of achievement is built, paving the way for future success. 

Edward Sonshine, O.Ont., Q.C.
Chief Executive Officer,
rioCan real estate investment trust

Dale H. Lastman
Co-Chair and Partner, goodmans llP

Paul Godfrey, C.M., O.Ont. 1,2,3,4
(Chairman of Board of trustees)
President and Chief Executive Officer,
Postmedia network inc.

Ronald W. Osborne 1
Chair of Postmedia network Canada Corp.
and Postmedia network inc.

Sharon Sallows 3,4
director of ontario teachers’
Pension Plan Board

Raymond M. Gelgoot
Partner, Fogler, rubinoff llP

Charles M. Winograd 3,4
President, winograd Capital inc.

Frank W. King, O.C. 1,2
President and Chief Executive Officer,
Metropolitan investment Corporation

Clare R. Copeland 1,2,4
Chair and director of 
toronto hydro Corporation

1 member of the Audit Committee
2 member of the human Resources & Compensation Committee 
3 member of the Nominating & governance Committee 
4 member of the Investment Committee

                  Corporate Responsibility |  At rioCan, three facets   

comprise corporate responsibility: environmental responsibility, corporate philanthropy 
and responsibility to employees. your reit strives for a high standard in all three areas.

RIOCAN IS A PROUD SPONSOR 
OF THE BRAZILIAN BALL 

FOR THEIR EFFORTS TO IMPROVE 
“QUALITY OF LIFE” 
FOR CANCER VICTIMS.

 RioCan Yonge Eglinton Centre
2300 Yonge Street, Suite 500, P.O. Box 2386 
Toronto, Ontario M4P 1E4
T 416 866 3033  TF 1 800 465 2733
F 416 866 3020  W  www.riocan.com

Corporate 
Philanthropy
Corporate Philanthropy is a 
key facet of RioCan’s profile as 
a good corporate citizen and 
one that RioCan has always 
viewed as a priority. RioCan 
regularly sponsors a number 
of charitable organizations with 
a focus towards children’s and 
medical charities. RioCan was a 
proud supporter of several non-
profit organizations including 
the United way, the heart & 
Stroke foundation, the baycrest 
foundation, the University  
health Network, the hospital  
for Sick Children, and Mount 
Sinai hospital.

Responsibility  
to Employees
RioCan strives to provide 
its employees with a safe 
work environment, free from 
discrimination and harassment. 
RioCan has a number of 
employee-focused initiatives 
that are designed to improve 
workplace satisfaction. These 
initiatives include development 
and education programs. RioCan 
also has a comprehensive Code 
of Conduct for all employees, 
which includes protections 
against harassment and 
discrimination and provides 
guidelines for employee 
conduct including anti-bribery 
and fair dealing with RioCan’s 
stakeholders. furthermore 
RioCan provides a whistleblower 
hotline to provide employees with 
the ability to anonymously report 
violations of RioCan’s Code  
of Conduct.

Environmental 
Responsibility
RioCan continuously makes 
efficiency improvements in its 
property portfolio and works 
with its tenants to facilitate their 
energy conservation needs, 
which contribute to lowered 
emissions and reduced energy 
use. RioCan has worked with 
tenants as they customize their 
space to include geothermal 
heating and cooling, waste water 
collection and lower carbon 
footprint initiatives. RioCan has 
also taken specific initiatives at 
its properties to reduce waste, 
such as the installation of 
recycling receptacles to reduce 
the amount of waste generated 
at RioCan properties across 
Canada. Recent initiatives to 
reduce water consumption have 
reduced water usage by more 
than a half million litres of water, 
and aggressive recycling and 
waste management programs 
have resulted in a waste 
diversion rate of approximately 
94% at RioCan yonge Eglinton 
Centre, 64% at RioCan Sheppard 
Centre and 57% at georgian Mall  
in 2012.

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14_15

 
 
 
 
 
 
 
 
UniTHOlDeR inFORmATiOn

Unitholder Information
head Office
RioCan Real Estate 
Investment Trust
rioCan yonge eglinton Centre, 
2300 yonge street, suite 500 
P.o. Box 2386, toronto, ontario  M4P 1e4
tel: 416-866-3033 or 1-800-465-2733
Fax: 416-866-3020
website: www.riocan.com
email: inquiries@riocan.com

Unitholder and  Investor Contact
Christian Green
director, investor relations
tel: 416-864-6483
email: cgreen@riocan.com

Auditors
Ernst & young LLP

Transfer Agent and Registrar

Canada Stock Transfer
P.o. Box 7010, Adelaide street Postal 
station, toronto, ontario  M5C 2w9
Answerline: 1-800-387-0825 
or 416-643-5500
Fax: 416-643-5501
website: www.canstockta.com
email: inquiries@canstockta.com

Unit Listing
the units are listed on the toronto stock 
exchange under the symbol rei.un,  
rei.Pr.A, rei.Pr.C

Annual Meeting
the 2013 Annual Meeting of rioCan reit  
will be held on wednesday, June 5, 2013 at 
10:00 a.m. at silverCity theatres located at 
rioCan yonge eglinton Centre, 2300 yonge 
street, toronto, ontario. All unitholders 
are invited and encouraged to attend in  
person or via webcast at www.riocan.com. 

on peut obtenir une version française 
du présent rapport annuel sur le site 
web de rioCan: www.riocan.com. 
A French language version of this annual  
report is available on rioCan’s website:
www.riocan.com.

Forward-Looking Statement Advisory
The terms “RioCan” and the “Trust” in this document refer to RioCan Real Estate Investment Trust and should 
be read in conjunction with RioCan’s audited consolidated financial statements and Management’s Discussion 
and Analysis for the two years ended December 31, 2012 and 2011. Certain information included in this 
document contains forward-looking statements within the meaning of applicable securities laws. These statements 
include, but are not limited to, statements made in “CEO’s Letter to Unitholders”, “Transforming by Acquisitions”, 
“Transforming Through Our Debt Structure”, “Transforming Through Development”, “Opportunities in the United 
States”, “RioCan Board of Directors and Management Team”, and “Corporate Social Responsibility”, and other 
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. Forward-looking statements 
generally can be identified by the use of forward-looking terminology such as “outlook”, “objective”, “may”, “will”, 
“would”, “expect”, “intend”, “estimate”, “anticipate”, “believe”, “should”, “plan”, “continue”, or similar expressions 
suggesting future outcomes or events. Such forward-looking statements reflect management’s current beliefs and are 
based on information currently available to management. All forward-looking statements in this Annual Report are 
qualified by these cautionary statements.

These forward-looking statements are not guarantees of future events or performance and, by their nature, are 
based on RioCan’s current estimates and assumptions, which are subject to risks and uncertainties, including those 
described under “Risks and Uncertainties” in RioCan’s MD&A dated as at February 13, 2013, which could cause 
actual events or results to differ materially from the forward-looking statements contained in this Annual Report. 

Those risks and uncertainties include, but are not limited to, those related to: liquidity in the global marketplace 
associated with economic conditions, tenant concentrations, occupancy levels, access to debt and equity capital, 
interest rates, joint ventures/partnerships, the relative illiquidity of real property, unexpected costs or liabilities 
related to acquisitions, construction, environmental matters, legal matters, reliance on key personnel, unitholder 
liability, income taxes, the investment and conducting of operations in the United States of America (“USA”), 
fluctuations in the currency exchange rate between the Canadian and US dollar, and RioCan’s qualification as 
a real estate investment trust for tax purposes. Material factors or assumptions that were applied in drawing a 
conclusion or making an estimate set out in the forward-looking information may include, but are not limited to: a 
stable retail environment; relatively low and stable interest costs; a continuing trend toward land use intensification 
in high growth markets; access to equity and debt capital markets to fund, at acceptable costs, the future growth 
program and to enable the Trust to refinance debts as they mature; the availability of purchase opportunities for 
growth in Canada and the US. Although the forward-looking information contained in this Annual Report is based 
upon what management believes are reasonable assumptions, there can be no assurance that actual results will 
be consistent with these forward-looking statements. Certain statements included in this Annual Report may be 
considered “financial outlook” for purposes of applicable securities laws, and such financial outlook may not be 
appropriate for purposes other than this Annual Report. 

The Income Tax Act (Canada) contains provisions which potentially impose tax on publicly traded trusts (the 
“SIFT Provisions”). However, the SIFT Provisions do not impose tax on a publicly traded trust which qualifies as 
a REIT. RioCan currently qualifies as a REIT and intends to continue to qualify for future years. Should this not 
occur, certain statements contained in this Annual Report may need to be modified.

Except as required by applicable law, RioCan undertakes no obligation to publicly update or revise any forward-
looking statement, whether as a result of new information, future events or otherwise.

RIOCAn YOngE EgLInTOn CEnTRE
2300 Yonge street
suite 500 
P.O. Box 2386
Toronto, Ontario 
m4P ie4

T    416 866 3033 
TF  1 800 465 2733
F    416 866 3020
W   www.riocan.com