RioCan REIT (REI-UN-T) has unveiled firm agreements for the divestments of $379 million of its RioCan Living multifamily portfolio in the coming weeks, including its 50 per cent stake in the flagship FourFifty The Well apartment tower in downtown Toronto.

The transactions, which include the first two phases of Bellevue in Montreal’s Notre-Dame-de-Grâce (NDG) neighbourhood, as well as one other unidentified property, were announced in RioCan’s Q1 2026 financial report this week. The Bellevue sale also includes RioCan cancelling its forward purchase agreement for Bellevue Phase III.

Finally, RioCan disclosed that its previously announced sale of its interest in The Underwood Apartments in Calgary has closed.

Buyers for the properties have not been disclosed.

All these sales are part of the REIT’s previously announced intention to return to its focus as a retail REIT, after several years of diversifying into the multifamily sector. Much of its multifamily development was related to the intensification of existing retail properties and development sites. 

RioCan’s Q1 highlights

RioCan reported net income of $93.2 million in Q1, compared to a loss of $84.2 million in Q1 2025, when it was dealing with property value markdowns due to the ongoing HBC bankruptcy proceedings, and a partnership it was involved in with the failed retailer. 

Its net income per diluted unit rose from a loss of 28 cents in Q1 a year ago to a profit of 32 cents per unit. Net book value per unit rose slightly from $24.37 to $24.42.

“Our first-quarter results underscore the strength and resilience of our retail-focused platform," Jonathan Gitlin, president and CEO of RioCan, said in a release accompanying the Q1 results. “We are successfully unlocking embedded growth by leveraging our high-quality assets to capitalize on this leasing supercycle. 

“This has enabled us to capture mark-to-market opportunities that have driven record leasing spreads and amplified SPNOI growth.” 

The blended leasing spread for its retail portfolio in the quarter was 25.8 per cent, driven by new leasing spreads of 58.5 per cent, RioCan reported. Same property NOI growth for the commercial portfolio was 4.7 per cent.

Its committed retail occupancy is 98.4 per cent, while it retained over 92 per cent of its tenants during its lease renewal process.

While it has been busily divesting residential properties, RioCan continues to expand its retail holdings. During Q1, it completed the acquisitions of the remaining 50 per cent of Oakville Place (Greater Toronto Area) and Georgian Mall (Barrie, Ont.) which it did not already own. RioCan invested approximately $145.4 million in the acquisitions.

Multifamily divestments update

RioCan’s ongoing efforts to divest its RioCan Living multifamily assets have resulted in $1.04 billion of capital via closed and pending sales, approximately 80 per cent of its $1.3-billion goal.

It received $30 million of proceeds from the sales during Q1.

“Continued portfolio simplification and disciplined execution of our capital recycling strategy are enhancing balance sheet flexibility, enabling capital allocation aligned with the long-term growth framework we outlined at our Investor Day,” Gitlin said in the release.

RioCan has been partnered with Toronto-based Woodbourne Investments on the 46-storey, FourFifty apartment tower development. The building comprises 592 apartments and was completed in 2024.

It is part of one of Toronto's largest development projects in recent years. The Well comprises seven buildings on a 7.8-acre site along Front Street, with over three million feet of space including office, commercial/retail, condos and apartments, and amenities for the residents and tenants.

The REIT has a 100 per cent interest in the Bellevue towers in NDG, which combine for 124 housing units. Phase III of the midrise apartment complex is actively leasing.

It held a 50 per cent interest in the 30-storey The Underwood Apartments in Calgary, in a partnership with Western Securities. RioCan had acquired the interest in 2024. The tower contains 225 apartments plus about 17,000 square feet of commercial space.

RioCan also reports “strong interest” in its remaining four RioCan Living properties.

About RioCan REIT

RioCan is a Toronto-based real estate investment trust, and one of Canada's largest owners, managers and developers of necessity-based retail properties. Its portfolio is focused on the country's most densely populated communities.

As at March 31, its portfolio was comprised of 167 properties with an aggregate net leasable area of approximately 32 million square feet (at RioCan's interest). Its assets were valued at approximately $15.1 billion at RioCan's share.