RioCan reports strong leasing growth despite past retail struggles, with profits down due to write-downs but no major impact from remaining HBC exposure.

Despite the collapse of Toys "R" Us and Hudson's Bay, RioCan Real Estate Investment Trust's CEO Jonathan Gitlin says the retail sector remains strong, noting RioCan exited its Toys "R" Us lease before bankruptcy and attributing the failures to poor management and lack of capital. The company reported a 37.3% increase in new leasing rates and a 21.1% blended leasing spread in Q4, driven by demand from grocers expanding discount offerings. While annual profits dipped to $69.3 million due to write-downs from its HBC joint venture, RioCan has resolved most exposures, retaining only Yorkdale Mall in Toronto, where a court blocked a lease transfer to Les Ailes de la Mode over positioning concerns. Gitlin said the outcome won’t materially impact the company.