HIGHLIGHTS FOR Q3 2009:

--  RioCan has announced the execution of definitive agreements with Cedar
    Shopping Centers, Inc. ("Cedar"), a self managed U.S. based REIT, to
    purchase an 80% interest in seven grocery anchored shopping centres for
    a total consideration of $141 million aggregating approximately 1.1
    million square feet (at 100%); 
--  RioCan will acquire 6.7 million shares of common stock at $6.00 per
    share representing a 12% equity investment in Cedar. 
--  Entered into purchase agreements for eight properties in Canada
    aggregating approximately 1.4 million square feet at a purchase price of
    over $400 million; 
--  Acquired partners' interests in RioCan Centre Vaughan and RioCan Beacon
    Hill for a total of $38 million; 
--  Arranged secured mortgage financing during the quarter of approximately
    $92 million generating net proceeds of $48 million; 
--  Repaid from cash reserves, $79.7 million Series D unsecured debentures; 
--  Same property net operating income ("NOI") growth of 0.2% for the first
    nine months of 2009 versus 2008; 
--  Maintained strong occupancy at 97.3%; 
--  Leverage for the Trust decreased to 55.7% of aggregate assets from 55.8%
    at June 30, 2009; and 
--  RioCan had cash on hand of approximately $214 million at quarter end. 

"Overall RioCan's performance operationally in the third quarter has been strong. Our portfolio has performed well again in the third quarter with strong occupancy and NOI growth," said Edward Sonshine, Q.C., President and Chief Executive Officer of RioCan. "We are excited by our recently announced US investment and a growing Canadian acquisition pipeline that will begin to eliminate the drag that RioCan's large cash position has had in recent quarters. Looking forward, we are eager to see the positive impact that these acquisitions should have in the coming year, as well as continuing to source accretive acquisition opportunities in Canada and the United States."

Financial Highlights

RioCan reported net earnings for the three months ended September 30, 2009 of $28.4 million ($0.12 per unit) compared to $40.9 million ($0.19 per unit) for the same period in 2008. Net earnings for the nine months ended September 30, 2009 were $86.3 million ($0.38 per unit) compared to $115.9 million ($0.53 per unit) for the same period in 2008.

Funds from operations ("FFO") for the quarter ended September 30, 2009 was $71.6 million ($0.30 per unit) and was $210.1 million ($0.92 per unit) year-to-date compared to $81.2 million ($0.37 per unit) and $236.4 million ($1.09 per unit) for the same periods in 2008 respectively. The primary difference between net earnings and FFO are depreciation and future income taxes. The costs of holding a large cash balance negatively impacted RioCan's results in the third quarter. The $9.6 million decrease in FFO for the third quarter is primarily due to the increased interest expense of $8.3 million ($49.6 million in the third quarter of 2009 versus $41.3 million in 2008), lower gains on properties held for resale in the third quarter of 2009 of $1.3 million ($0.2 million in the third quarter of 2009 versus $1.5 million in 2008), and decreased fee and other income by $3.0 million in the third quarter ($3.9 million in the third quarter of 2009 versus $7.0 million in 2008). The decrease in FFO was partially offset by increased net operating income from rental properties of $2.0 million, which is primarily due to acquisitions completion of Greenfield Developments and intensification of existing properties.

Year-to-date gains on properties held for resale decreased $20.4 million versus the first nine months of 2008. Interest on the cash raised in April continues to negatively impact FFO due to the negative carry on the large cash balances as a result of cash raised in debt refinancing, the debenture offering, and the Unit offering that has not yet been deployed. Interest expense increased $17.5 million for the first nine months and was partially offset by increased net operating income from rental properties of $13.4 million, which is primarily due to acquisitions completion of Greenfield Developments, and intensification of existing properties and slightly increased interest income of $1.0 million in the third quarter and $0.8 million year-to-date.

Net operating income from rental properties increased by $2.0 million versus the same quarter of 2008, which was primarily due to acquisitions, completion of Greenfield Developments, and intensification of existing properties. Rental revenues increased $26.8 million for the first nine months of 2009 versus 2008 and increased $6.8 million in the third quarter versus 2008. Same property NOI decreased by 0.6% on a year over year basis for the third quarter and increased 0.2% for the nine months ended September 30, 2009. Furthermore, same property growth increased 1.0% quarter over quarter. Same store growth in the third quarter decreased 1.5% year over year and decreased 0.5% for the first nine months of 2009 versus 2008. On a quarter over quarter basis same store NOI grew by 0.5%.

Liquidity and Capital

In selecting appropriate funding choices, RioCan's objective is to manage its capital structure in such a way as to diversify its funding sources while minimizing its funding costs and risks. RioCan had cash on hand of approximately $214 million at quarter end.

As at September 30, 2009, RioCan's indebtedness was 55.7% of Aggregate Assets, such that it could incur additional indebtedness of approximately $684 million and still not exceed the 60% leverage limit set out in RioCan's Declaration of Trust. As a matter of policy, RioCan would not likely incur indebtedness significantly beyond 58% of Aggregate Assets, which would permit it to incur additional indebtedness of approximately $349 million.

Mortgage Financing

Year to date RioCan has been successful in refinancing all maturing mortgages.