All figures in Canadian dollars unless otherwise noted. RioCan's results are prepared in accordance with International Financial Reporting Standards ("IFRS").

RioCan's Operating FFO increased by 16% to $ 116 million for the three months ending December 31, 2012 ("Fourth Quarter") compared to $ 100 million in the fourth quarter of 2011. On a per unit basis, Operating FFO increased 8% to $ 0.39 per unit from $ 0.36 per unit in the same period of 2011;
RioCan's Operating FFO increased by 16% to $ 440 million for the year ended December 31, 2012 compared to $ 380 million for the same period in 2011. On a per unit basis, Operating FFO increased 6% to $ 1.52 per unit from $ 1.43 per unit for the same period in 2011;
Overall occupancy was 97.4% at December 31, 2012, compared to 97.3% at September 30, 2012 and 97.6% at December 31, 2011;
RioCan renewed 586,000 square feet in the Canadian portfolio during the Fourth Quarter at an average rent increase of $3.32 per square foot, representing an increase of 18.4%, compared to 14.5% for the same period in 2011;
RioCan renewed 3.5 million square feet in the Canadian portfolio during the twelve months ended December 31, 2012 at an average rent increase of $2.19 per square foot, representing an increase of 13.2%, compared to 11.0% for the same period in 2011;
During the Fourth Quarter, RioCan acquired interests in 31 income properties in Canada and the US aggregating to 2.0 million square feet at an purchase price of approximately $378 million at RioCan's interest at a weighted average capitalization rate of 6.4%;
For the year, RioCan acquired interests in 43 income properties in Canada and the US aggregating to 3.5 million square feet at an purchase price of approximately $926 million at RioCan's interest at a weighted average capitalization rate of 6.1%;
In 2012, RioCan raised $531 million of equity capital through 2 offerings that totalled $423 million and $108 million of equity issued through RioCan's distribution reinvestment plan. RioCan also issued $575 million of unsecured debentures at an effective average interest rate of 3.77%;
During the Fourth Quarter, RioCan dissolved its joint venture with Cedar Realty Trust, Inc. ("Cedar"). As part of the dissolution, RioCan purchased Cedar's 20% interest in 21 properties owned by the RioCan/Cedar joint venture for US$120 million, and the assumption of Cedar's share of the existing in-place mortgage financing of US$54 million. In turn, RioCan conveyed its 80% interest in Franklin Village to Cedar for US$60 million (less debt assumed by Cedar from RioCan in the amount of US$35 million). RioCan has established a US property management platform based in Mount Laurel, New Jersey (suburban Philadelphia) and effective February 1, 2013, RioCan commenced property management of the northeastern US portfolio;
On February 7, 2013 RioCan sold its entire position of 9.4 million shares of Cedar for total proceeds of approximately US$48 million;
RioCan has entered into a conditional purchase and sale agreement with Primaris REIT to acquire a 50% managing interest in Burlington Mall and a 100% interest in Oakville Place at an aggregate purchase price of $362 million;
RioCan is currently in the process of marketing for sale fourteen non-core Canadian properties located in secondary markets. The fair value of these properties as at December 31, 2012 calculated in accordance with IFRS is in excess of $645 million. The debt associated with these properties is approximately $230 million; and
Beginning January 2013, RioCan increased its monthly distribution by 2% to $0.1175 per unit ($1.41 per unit annualized from $1.38 per unit).

RioCan Real Estate Investment Trust ("RioCan") today announced its financial results for the year ended December 31, 2012.

"We are very pleased with the performance of the portfolio through what was, as anticipated, a challenging year. We are excited about the opportunities for continued growth in the portfolio on multiple fronts as we enter RioCan's 20^th year as a publicly traded REIT," said Edward Sonshine, Chief Executive Officer of RioCan. "Including RioCan's $89 million of development property acquisitions, RioCan completed more than $1 billion of total acquisitions in 2012. RioCan's transformational growth over the past few years, the improved stability of our cashflow stream, and management's confidence in the future growth of RioCan were all contributing factors in the decision to increase RioCan's distribution in 2013."

Financial Highlights

Operating Funds from operations ("Operating FFO")

RioCan's Operating FFO represents the recurring cash flow generated through the ownership and management of income properties. This is the basis for determining RioCan's Adjusted Funds From Operations. In contrast to Funds From Operations ("FFO"), Operating FFO also excludes transactional gains from the sale of real estate as well as the expenditures related to development activities that in management's view forms part of the cost of its development projects, and are no longer capitalized under IFRS.

Operating FFO for the Fourth Quarter was $ 116 million ($ 0.39 per unit) compared to $ 100 million ($ 0.36 per unit) in the fourth quarter of 2011. The primary reasons for this increase were: a $20 million increase in net operating income ("NOI"), which was due to acquisitions, lease cancelation fees of $4 million, with same property growth of 0.2% in Canada and 1.9% in the US, and the completion of greenfield developments. Operating FFO also benefited from lower interest expenses of $1 million and lower general and administrative expenses of $1 million in the Fourth Quarter. These increases to Operating FFO were partially offset by reduced other revenue of $7 million and increased preferred unit distributions of $1 million during the Fourth Quarter.

Operating FFO for the year ended December 31, 2012 was $ 440 million ($ 1.52 per unit) compared to $ 380 million ($ 1.43 per unit) in 2011. The primary reasons for this increase were: a $91 million increase in net operating income ("NOI"), which was due to higher lease cancelation fees of $12 million, along with same property growth of 1.0% in Canada and 0.5% in the US, and the completion of greenfield developments. These increases to Operating FFO were partially offset by increased interest expense of $6 million, which included $2 million of costs associated with the early repayment of $90 million of secured debt in the second quarter (which carried an interest rate of 5.9%), increased preferred unit distributions of $7 million, higher general and administrative expenses of $3 million, and lower fees and other income of $13 million during 2012.

Net Earnings

RioCan reported net earnings attributable to unitholders for the Fourth Quarter of $468 million ($1.55 per common unit) compared to $241 million ($0.87 per common unit) for the same period in 2011, an increase of $227 million ($0.68 on a per common unit basis). Excluding the impact of taxes and fair value gains on investment properties, net earnings for the Fourth Quarter were $123 million as compared to $98 million during the same period in 2011. RioCan's increase in net earnings was due to an increase in the fair value of its investment properties as well as the same contributing factors as those which impacted RioCan's Operating FFO in the Fourth Quarter. Fair value gains for the Fourth Quarter were $348 million, a $202 million increase over the same period in 2011, due to increased property level NOI as well as a decline in capitalization rates, which decreased by 12 bps, on average, as compared to September 30, 2012.

RioCan reported net earnings attributable to unitholders for the year ended December 31, 2012 of $1.34 billion ($4.59 per common unit) compared to $873 million ($3.26 per common unit) for the same period in 2011, an increase of $471 million ($1.33 on a per common unit basis). Excluding the impact of taxes and fair value gains on investment properties, net earnings for the year ended December 31, 2012 were $446 million as compared to $351 million in the same period of 2011. RioCan's increase in net earnings was due to an increase in the fair value of its investment properties as well as the same contributing factors as those which impacted RioCan's Operating FFO for the year. RioCan's fair value gains on investment properties were $913 million for the year ended December 31, 2012 as compared to $533 million in 2011, an increase of $380 million due to increased property level NOI and a decline in capitalization rates, which decreased 52 bps on average during the year.

Same Store and Same Property NOI

Same store and same property NOI increased by 0.2% in the Fourth Quarter in Canada, compared to the same period in 2011, due largely to new leasing which favourably impacted NOI by $3.3 million, renewal and fixed rent steps which increased NOI by $1.6 million, and the leasing of space vacated due to bankruptcy or lease cancellations, which increased NOI by $2.3 million. The increases to same store and same property NOI were partially offset by the impact of vacancy caused by normal course turnover of $4.3 million, unanticipated vacancies that reduced NOI by $1.2 million, and $0.4 million in lower NOI from lease buyouts that have occurred in the last year.

Same store and same property NOI for year ended December 31, 2012 in Canada increased by 0.9% and 1.0% respectively, compared to 2011, due largely to new leasing which favourably impacted NOI by $15.0 million, renewal and fixed rent steps which increased NOI by $6.0 million, leasing of space vacated due to bankruptcy or lease cancellations which increased NOI by $5.7 million. The increases to same store and same property NOI were partially offset by the impact of vacancy caused by normal course turnover of $14.0 million, unanticipated vacancies that reduced NOI by $5.4 million and $1.5 million of lower NOI from lease buyouts that have occurred in the last year.

Sequentially, same store and same property NOI in Canada increased by 1.9% and 1.7% respectively for the Fourth Quarter compared to the third quarter of 2012. This was primarily due to an increase in NOI of $1.9 million due to new, renewal leasing and fixed rent steps which positively impacted NOI by $0.5 million, and leasing of space vacated due to bankruptcy or lease cancellations, which increased NOI by $0.4 million. The increases to same store and same property NOI were partially offset by reduced NOI due to vacancies caused by normal course turnover of $1.4 million.

On a US dollar basis, the US same store and same property NOI during the Fourth Quarter increased by 1.9% when compared to the same period in 2011. On the same basis, same property NOI for the year ended December 31, 2012 increased by 0.5% when compared to the same period in 2011 due to new and renewal leasing and fixed rent steps. Same store and same property NOI increased by 0.2% for the Fourth Quarter compared to the third quarter of 2012 primarily due to increased NOI as a result of new leasing, renewal rent increases and rent steps.

Portfolio Stability

As at December 31, 2012 :

RioCan's overall occupancy rate was stable at 97.4% compared to September 30, 2012 at 97.3%, and relatively flat compared to 97.6% as at December 31, 2011;
RioCan's Canadian occupancy rate declined to 97.2%, from 97.5% at December 31, 2011;
RioCan's US occupancy rate was flat compared to December 31, 2011 at 98.1%;
The portfolio economic occupancy rate represents the occupied net leaseable area for which tenants are paying rent. The portfolio economic occupancy rate was approximately 95.9% compared to 96.6% at December 31, 2011. There is approximately 711,000 square feet for which lease payments are scheduled to start at future dates. The annualized rental revenue for this space is expected to be $15 million, with 92% of this revenue expected to begin paying rent during the next three quarters;
In the Fourth Quarter, RioCan's Canadian retention ratio was 94.3% of expiring leases, compared to a retention ratio of approximately 84.8% in the third quarter of 2012. For the year ended December 31, 2012, RioCan's retention ratio was 89.7% of expiring leases;
RioCan renewed 586,000 square feet in the Canadian portfolio during the Fourth Quarter at an average rent increase of $3.32 per square foot, representing an increase of 18.4%, compared to 14.5% for the same period in 2011. RioCan renewed 3.5 million square feet in the Canadian portfolio during the twelve months ended December 31, 2012 at an average rent increase of $2.19 per square foot, representing an increase of 13.2%, compared to 11.0% for the same period in 2011;
RioCan renewed approximately 29,000 square feet of space in the US portfolio during the Fourth Quarter, at an average rent increase of $1.21 per square foot, representing an increase of 5.1%. The retention ratio for expiring leases was 87.6%. RioCan renewed approximately 361,000 square feet of space in the US portfolio for the twelve months ended December 31, 2012, at an average rent increase of $1.11 per square foot, representing an increase of 6.8% with a retention rate of 85.9%;
During the Fourth Quarter, at RioCan's interest, new vacancies excluding lease buyouts were 166,000 square feet, (166,000 square feet in the fourth quarter of 2011). During the quarter 196,000 square feet of vacant space was leased to new tenants;
For the twelve months ended, at RioCan's interest, new vacancies were 1 million square feet (779,000 square feet in the same period of 2011). During the twelve months, approximately 669,000 square feet of vacant space was leased to new tenants;
RioCan's Canadian portfolio is concentrated in Canada's six high growth markets (consisting of Calgary, Edmonton, Montreal, Ottawa, Toronto and Vancouver). Assets in these markets contribute about 67.5% of RioCan's Canadian annualized rental revenue (65.9% at Dec. 31, 2011);
National and anchor tenants represented about 86.1% of RioCan's total annualized rental revenue at December 31, 2012, which increased from 85.7% at December 31, 2011; and
No individual tenant comprised more than 4.3% of annualized rental revenue. At December 31, 2012, Walmart was RioCan's largest tenant.

Portfolio Activity and Acquisition Pipeline

During the Fourth Quarter, RioCan completed 31 acquisitions of interests in income producing properties (six in Canada and 25 in the US) at an aggregate purchase price of $378 million, at RioCan's interest (calculated taking into account the US dollar transactions at an average exchange rate of CAN$1 = US$1.013), with a weighted average capitalization rate of 6.4%.

For the year, RioCan completed 43 acquisitions of interests in income producing properties (14 in Canada and 29 in the US) at an aggregate purchase price of $926 million, at RioCan's interest (calculated taking into account the US dollar transactions at an average exchange rate of CAN$1 = US$1.007), with a weighted average capitalization rate of 6.1%.

In addition, RioCan has two income producing properties in Canada and the US with an aggregate purchase price of $61 million (calculated taking into account the US dollar transactions at an exchange rate of par) under contract where conditions have been waived pursuant to purchase and sale agreements that are expected to be completed during the first and second quarters of 2013.

Acquisitions Completed in the Fourth Quarter

Canada

On October 1, 2012, RioCan completed the acquisition of the remaining 50% interest in the freehold interest of Westgate Shopping Centre at a purchase price of $9 million. Westgate Shopping Centre is a 165,842 square foot non-grocery anchored retail shopping centre located in Ottawa, Ontario. RioCan now has a 100% interest in the property.
On November 1, 2012, RioCan and Tanger Outlet Centers, Inc. ("Tanger") completed the acquisition of Les Factoreries St. Sauveur on a 50/50 basis at a purchase price of $54 million and at a capitalization rate of 5.3%. RioCan provides development and property management services and Tanger provides leasing and marketing services. Les Factoreries St. Sauveur is located approximately 60 km northwest of Montreal, Quebec directly off of Highway 15 in the town of St. Sauveur, Quebec. The property was built in 1980, and expanded in 2006, and is approximately 116,000 square feet with the potential to expand the property on the adjacent 1.1 acres of land which will also be acquired if certain conditions are met. This outlet centre features many national brands such as, Nike, Tommy Hilfiger Outlet, Reebok, Guess and Parasuco. As part of the acquisition, the joint venture assumed the aggregate in place financing in the amount of $19 million with a weighted average interest rate of 5.7% and maturities in 2015 and 2020.
On November 2, 2012, RioCan and Tanger completed the acquisition of Bromont Outlet Mall on a 50/50 basis at a purchase price of $40.6 million and at a capitalization rate of 6.9%. RioCan provides development and property management services and Tanger provides leasing and marketing services. Bromont Outlet Mall is located approximately 85 km east of Montreal, Quebec near the eastern townships directly off of Highway 10 in the town of Bromont, Quebec. The property was built in 2004 and expanded through 2011, and is approximately 162,000 square feet with the potential to expand the property to approximately 235,000 square feet. This outlet centre features many national brands such as Point Zero, Tommy Hilfiger Outlet, Puma, Mexx, and Urban Planet.
On November 5, 2012, RioCan completed the acquisition of the remaining 25% interest in Elgin Mills Crossing in Richmond Hill, Ontario. The acquisition increases RioCan's ownership of this property to 100%. Elgin Mills Crossing is a 425,157 square foot new format retail shopping centre (320,328 square feet owned by RioCan; the remainder owned by a tenant) anchored by Costco, Michael's and Staples with Home Depot as a shadow anchor. The purchase price for RioCan's additional interest was $20 million, which equates to a capitalization rate of 5.8%. In connection with the purchase, RioCan has assumed a proportionate share of the existing mortgage debt that is in place for this property, representing an additional principal amount of $11 million that carries an interest rate of 6.1% and matures in October 2018. RioCan benefited from a mark to market adjustment of $1 million in consideration of the above market interest rate.
On December 10, 2012, RioCan completed the acquisition of a 100% interest in 649 Queen Street West, a 14,200 square foot single-tenant property occupied by CB2, the urban version of Crate & Barrel (there is an additional 6,450 square feet of basement space). The purchase price for the property was $14 million, which equates to a capitalization rate of 4.89% and was acquired free and clear of financing.
On November 9, 2012 RioCan acquired a 27.6% interest in Shoppers City East Shopping Centre, in Ottawa, Ontario. Shoppers City East is a 148,100 square foot non grocery anchored retail shopping centre anchored by Giant Tiger. Other notable tenants include Staples and Shoppers Drug Mart. The site is 19.4 acres. RioCan's interest was acquired at a purchase price of $8 million, which equates to a capitalization rate of 6.5%. The property was acquired free and clear of financing and represents an excellent redevelopment opportunity.

United States

On October 10, 2012, and in accordance with the terms of the dissolution of the Cedar RioCan/ Realty Trust, Inc. ("Cedar") joint venture, Cedar conveyed its 20% interest in 21 properties owned by the RioCan/Cedar joint venture to RioCan for a gross purchase price of US$119.5 million, representing a capitalization rate of 6.5%. RioCan has assumed Cedar's share of the existing in-place mortgage financing of US$54.4 million in respect of such 21 properties, which carries a weighted average interest rate of 5.2% and a weighted average term to maturity of 5.2 years. RioCan benefited from a mark to market adjustment of $750,000 in consideration of the above market interest rate.

In turn, RioCan conveyed its 80% interest in Franklin Village (located in Franklin, Massachusetts) to Cedar for a gross sale price of US$60.1 million (less debt assumed by Cedar from RioCan in the amount of US$34.7 million). On October, 31, 2012, RioCan served Cedar with a notice of cancellation under the property management agreement, and effective February 1, 2013 RioCan commenced property management of the northeastern US portfolio.

On October 18, 2012, RioCan completed the acquisition of an 85% non-managing interest in Arbor Park Shopping Centre with Dunhill Partners, Inc. ("Dunhill") for a purchase price of US$26 million at 100% (US$22 million at RioCan's interest) which equates to a capitalization rate of 6.7%. Dunhill, who previously owned a 100% managing interest in the property, has retained a 15% interest and will manage the property on behalf of the joint venture. Arbor Park is a 139,700 square foot new format retail centre located near the downtown core of San Antonio, Texas. The property, which is currently 98% occupied, was built in 1998 and has a weighted average remaining lease term of 4.7 years. The property is anchored by Sprouts Grocery Store, Ross Dress for Less, Office Max and Michaels. Other notable tenants include Dress Barn, GameStop and Payless Shoesource. As part of the acquisition, the joint venture assumed the existing mortgage in the amount of US$17 million (US$14 million at RioCan's interest) with an interest rate of 4.6% and maturity date of July 6, 2016.
On October 22, 2012, RioCan acquired a 100% interest in Deptford Landing, a 517,057 square foot new format retail centre located in Deptford Township, New Jersey. The purchase price for the property was US$65 million, which equates to a capitalization rate of 6.6%. As part of the acquisition, RioCan assumed the existing mortgage in the amount of US$33 million with an interest rate of 6.1% and maturity date of January 1, 2021. RioCan benefited from a mark to market adjustment of $4.2 million in consideration of the above market interest rate.
On November 21, 2012, RioCan acquired an 85% non-managing interest in Louetta Central for a purchase price of US$31 million at 100% (US$26 million at RioCan's interest) which equates to a capitalization rate of 6.9%. Dunhill acquired the remaining 15% interest and manages the property on behalf of the joint venture. Louetta Central is a 179,995 square foot non-grocery anchored retail centre located in Spring, Texas. The property, which is currently 100% occupied, has a weighted average remaining lease term of 6.4 years and is anchored by Kohl's, Ross Dress for Less and Michaels. Financing of US$17 million (US$14 million at RioCan's interest) was procured on closing at an interest rate of 3.7% and a maturity date of November 2022.
On December 28, 2012 RioCan acquired a 100% interest in The Commons for a purchase price of US$52 million which equates to a capitalization rate of 7.0%. The Commons is a 277,300 square foot new format retail centre located in Martinsburg, West Virginia. The property, which is currently 97% occupied, was built in 2009 and has a weighted average remaining lease term of 6.4 years. Notable tenants include Dick's Sporting Goods, Best Buy and TJ Maxx. The property was acquired free and clear of financing.

Acquisitions Under Contract (Firm)

RioCan currently has two income properties in Canada and the US under contract where conditions have been waived that, if completed, represent $61 million of acquisitions at RioCan's interest, at a weighted average capitalization rate of 5.5%.

Canada

In Canada, RioCan has waived conditions pursuant to a purchase and sale agreement with respect to one property as follows:

• The acquisition of a 100% interest in 1860 Bayview Avenue in Toronto, Ontario. 1860 Bayview Avenue is a development site located at the northwest corner of Bayview Avenue and Broadway Avenue in the Leaside area of Toronto. KingSett and Trinity Development Group are currently developing a grocery-anchored centre on the site, and RioCan will be acquiring the completed site on a forward purchase basis at an expected purchase price of $58 million, at a capitalization rate of 5.4%. Once completed, the centre will consist of approximately 74,220 square feet of retail space and will be anchored by a 50,220 square foot Whole Foods. This acquisition is expected to close during the second quarter of 2013.

United States

In the US, RioCan has waived conditions pursuant to a purchase and sale agreement with respect to one property as follows:

• A 100% interest in a 24,000 square foot unit at Monroe Marketplace in Selinsgrove, Pennsylvania to be occupied by TJ Maxx. Acquired by RioCan in 2010 (and, with respect to Cedar's 20% interest, 2012), Monroe Marketplace is a 340,000 square foot power centre anchored by Giant Foods and Kohl's. The purchase price for the 24,000 square foot addition is US$2.8 million which equates to a capitalization rate of 7.64% and will be acquired free and clear of financing.

Acquisitions Under Contract (Conditional)

RioCan has $397 million of income property acquisitions (at RioCan's interest) under contract where conditions have not yet been waived. These transactions are in various stages of due diligence and while efforts will be made to complete these transactions, no assurance can be given.

KingSett Capital Led Consortium's bid for Primaris Retail REIT

Included in the amount above is the conditional agreement with Primaris Retail REIT ("Primaris") to purchase a 50% interest in Burlington Mall in Burlington, Ontario, and a 100% interest in Oakville Place in Oakville, Ontario, which was announced by RioCan on February 5, 2013. The aggregate gross purchase price for these two properties is approximately $362 million (at RioCan's interest) and the properties will be acquired at a capitalization rate estimated to be approximately 5.0% to 5.25%. In connection with the purchase, RioCan will assume, at its interest, the in place mortgage financing of approximately $165 million in aggregate. The purchase price will be reduced by a mark-to-market adjustment on closing in consideration of the debt's above market interest rate, which is currently estimated at approximately $8 million. RioCan will fund this acquisition through cash on hand and existing operating facilities.

These properties will add to RioCan's growing enclosed mall portfolio that includes such properties as Georgian Mall, RioCan Yonge Eglinton Centre, Lawrence Square, RioCan Sheppard Centre and Shoppers World Brampton, all located in the GTA and surrounding markets. The acquisition of Oakville Place and Burlington Mall will allow RioCan to gain a stronger foothold in the enclosed mall sector, specifically in the GTA, a segment otherwise difficult to enter. As well as strengthening RioCan's market leading retail platform, there are additional opportunities for organic growth within both shopping centres, which RioCan believes it can realize with its deep infrastructure and management strength. It is expected that the purchase will be completed in early April.

Also included in the conditional acquisitions amount is the acquisition of a 100% interest in South Cambridge Centre in Cambridge, Ontario, from H&R REIT at a purchase price of $35 million, which equates to an estimated capitalization rate of approximately 6.75% to 7.0%. This purchase is also conditional on the successful completion of the H&R REIT and KingSett Capital led consortium acquisition of Primaris. South Cambridge Centre is a 190,131 square foot grocery anchored shopping centre. The property is 100% occupied and is anchored by a Zehrs grocery store (Loblaws). Other major tenants at the property include the Liquor Control Board of Ontario, The Beer Store and Home Hardware. In connection with the purchase, RioCan will assume the in place mortgage financing of $19.7 million which carries an interest rate of 5.5% maturing in June 2016.

The purchases of Burlington Mall, Oakville Place and South Cambridge Centre are conditional on the successful completion of the H&R REIT and KingSett Capital led consortium acquisition of Primaris. On February 5, 2013, H&R REIT and H&R Finance Trust (collectively "H&R") and Primaris and the KingSett Capital led consortium announced that H&R and Primaris, together with PRR Investments Inc., have amended their previously announced arrangement agreement (dated January 16, 2013). The transaction is expected to be completed in April 2013.

Acquisition Pipeline

RioCan is currently in negotiations regarding property acquisitions in Canada and the US that, if completed, represent approximately $68 million of additional acquisitions at RioCan's interest (calculated taking into account the US dollar transactions at an exchange rate of par). These transactions are in various stages of negotiations and while efforts will be made to complete these negotiations, no assurance can be given.

Disposition Pipeline

RioCan is currently in the process of selling fourteen non-core properties in Canada. The properties are located in largely in secondary markets. The fair value of these properties as at December 31, 2012 calculated in accordance with IFRS is in excess of $645 million. The debt associated with these properties is approximately $230 million. RioCan is under no obligation to proceed with such proposed dispositions which, if completed, will be done to facilitate its objective of paring its portfolio and focusing on major markets.

On February 7, 2013, RioCan sold all 9.4 million shares of Cedar for total proceeds of approximately US$48 million. As a result of the sale of these shares held, RioCan no longer has any equity position in Cedar.

Liquidity and Capital

The 12 month rolling EBITDA interest coverage for RioCan at December 31, 2012 was 2.72x (2.82x for the Fourth Quarter) compared to 2.46x at December 31, 2011. As at December 31, 2012, RioCan's indebtedness net of cash was 43.5% of total assets a decrease of 290 bps from year end (46.4%). RioCan's Net Debt to Adjusted EBITDA at December 31, 2012 was 7.28x up slightly from 7.26x at December 31, 2011. RioCan's Net Operating Debt to Adjusted Operating EBITDA, which excludes debt related to properties under development was 7.08x at December 31, 2012 compared to 7.00x at December 2011. As part of RioCan's capital management strategy, it is RioCan's objective to strengthen its balance sheet as well as improve its coverage ratios over time.

RioCan has the continued flexibility to generate additional funds in 2013 through financing maturing loan balances as well as repay additional balloon balances to increase the size of RioCan's pool of unencumbered assets. As at December 31, 2012, RioCan had 79 properties (including 13 unencumbered properties under development) that are unencumbered with a fair value of approximately $1.3 billion.

Mortgage Financing

Canada

In 2012, RioCan obtained approximately $449 million of fixed-rate mortgage financing at a weighted average interest rate of 3.1% with a weighted average term to maturity of about 5.1 years.

In 2012, RioCan obtained approximately $92 million of fixed-rate mortgage financing at a weighted average interest rate of 4.3% with a weighted average term to maturity of about 6.8 years.

Unsecured Debentures

As at December 31, 2012, RioCan had eight series of Debentures outstanding totalling $1.3 billion (December 31, 2011 - six series totalling $822 million). During the Fourth Quarter RioCan issued $250 million Series R Senior Unsecured Debentures at a coupon rate of 3.716% for a nine year term ending in 2021.

Lines of Credit

RioCan has four revolving lines of credit in place with three Canadian chartered banks, having an aggregate capacity of $429 million. At December 31, 2012, $73 million has been drawn as a cash advance and $25 million has been drawn as letters of credit, leaving $330 million available for cash draws under the lines of credit.

Development Portfolio

As at December 31, 2012, RioCan had ownership interests in 11 greenfield development projects that will, upon completion, comprise about 9.9 million square feet (4.9 million square feet at RioCan's interest). In addition to its development projects, RioCan continues its urban intensification activities, primarily in the Toronto, Ontario market.

During the three months ended December 31, 2012, RioCan acquired an interest in the Globe and Mail development site in Toronto, Ontario, at a purchase price of $54 million, at RioCan's interest.

The acquisition has established the basis for a joint venture (the "Downtown West JV") between RioCan, Allied and Diamond, with each of RioCan and Allied having an undivided 40% interest and Diamond having an undivided 20% interest. RioCan has a beneficial ownership in the Downtown West JV of 43.9% including its 19.3% participation in Diamond's Whitecastle New Urban Fund 2. The joint-venture partners intend to redevelop the Property as a mixed-use retail, office and residential complex with approximately 2.3 million square feet of gross floor area.

In February 2013, the three partners included in the Downtown West JV entered into a conditional agreement to purchase an additional 1.2 acres adjacent to the 6.47 acres of land previously acquired. This land is zoned for 450,000 square feet of commercial space, will provide the partners the opportunity to develop the combined Globe and Mail parcels beyond the 2.3 million square feet planned for the first parcel (6.47 acres). This second acquisition is expected to close in the first quarter of 2013.

For the year ended December 31, 2012, RioCan acquired interests in four development sites in Toronto, Ontario, at a purchase price of $89 million, at RioCan's interest. Additionally, RioCan completed acquisitions of excess land at a purchase price of $6 million at RioCan's interest in connection with the acquisitions of interests in two income properties during the year ended December 31, 2012. In total, acquisitions of development properties aggregated $95 million in 2012.

Subsequent to year end, RioCan acquired a 50% interest in Sage Hill Crossing, a 34 acre greenfield development site that will be anchored by Walmart and Loblaws located in Northwest Calgary, Alberta, at a purchase price of $32 million ($16 million at RioCan's interest) with KingSett. Once completed, the anticipated gross leasable area is 377,000 square feet of retail use. Development is expected to commence during the summer of 2013.

RioCan currently has 2 development sites in Canada under contract where conditions have been waived that, if completed, represent $29 million of acquisitions at RioCan's interest.

Additionally, RioCan has $51 million of development sites in Canada (at RioCan's interest) under contract where conditions have not yet been waived. These transactions are in various stages of due diligence and while efforts will be made to complete these transactions, no assurance can be given.

RioCan's Audited Annual Consolidated Financial Statements, Management's Discussion and Analysis and a Supplemental Information Package for the three months and year ended December 31, 2012 are available on RioCan's website at [ www.riocan.com ].

Conference Call and Webcast

Interested parties are invited to participate in a conference call with management on Thursday, February 14, 2013 at 10:00 a.m. eastern time. You will be required to identify yourself and the organization on whose behalf you are participating.

In order to participate, please dial 416-340-2216 or 1-866-226-1792. If you cannot participate in the live mode, a replay will be available until March 15, 2013. To access the replay, please dial 905-694-9451 or 1-800-408-3053 and enter passcode 9670929#.

Scheduled speakers include Edward Sonshine, O.Ont. Q.C., Chief Executive Officer, Fred Waks, President and Chief Operating Officer and Rags Davloor, Executive Vice President and Chief Financial Officer. Management's presentation will be followed by a question and answer period. To ask a question, press "star 1" on a touch-tone phone. The conference call operator will be notified of all requests in the order in which they are made, and will introduce each questioner.

Alternatively, to access the simultaneous webcast, go to the following link on RioCan's website [ http://investor.riocan.com/Investor-Relations/Events-Webcasts/default.aspx ] and click on the link for the webcast. The webcast will be archived 24 hours after the end of the conference call and can be accessed for 120 days.

About RioCan

RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $14.3 billion as at December 31, 2012. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 346 retail properties containing more than 82 million square feet, including 52 grocery anchored and new format retail centres containing 13.6 million square feet in the United States through various joint venture arrangements as at December 31, 2012. RioCan's portfolio also includes 11 properties under development in Canada. For further information, please refer to RioCan's website at [ www.riocan.com ].

Forward-Looking Information

This news release contains forward-looking statements within the meaning of applicable securities laws. These statements include, but are not limited to, statements made in this News Release (including the sections entitled "Highlights for 2012", "Financial Highlights", "Portfolio Stability", "Portfolio Activity and Acquisition Pipeline", "Liquidity and Capital", and "Development Portfolio"), 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 News Release 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 Management's Discussion and Analysis for the period ended December 31, 2012, which could cause actual events or results to differ materially from the forward-looking statements contained in this News Release. 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 in the United States of America ("US"), 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 to enable the Trust to refinance debts as they mature; the availability of purchase opportunities for growth in Canada and the US; and the impact of accounting principles adopted by the Trust effective January 1, 2011 under International Financial Reporting Standards ("IFRS"). Although the forward-looking information contained in this News Release 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 News Release may be considered "financial outlook" for purposes of applicable securities laws, and such financial outlook may not be appropriate for purposes other than this News Release.

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 real estate investment trust ("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 News Release may need to be modified.

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

Contributing Sources

Market Wire

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RioCan Real Estate Investment Trust Announces 16% Growth in Operating FFO in 2012

RioCan Real Estate Investment Trust Announces 16% Growth in Operating FFO in 2012