The Hudson’s Bay Company’s financial woes have contributed to the indefinite postponement of three large RioCan retail developments in the Greater Toronto Area, the REIT revealed on a quarterly earnings call.

RioCan reported a net loss of $120.3 million for the third quarter compared to a $96.9-million profit in the same period in 2024. A $94.6-million loss on the REIT’s joint-venture was the largest single contributor to the overall decline and influenced the decision to put off Colossus, Scarborough Centre and RioCan Hall, CFO Dennis Blasutti indicated on the call.

“We have a significant amount of long-term density potential in our portfolio,” he said. “However, given the stagnant land and development market, it is important to ensure that we are maximizing income from the existing retail on our properties.

“As such, we determined that the redevelopment of properties such as Colossus, Scarborough [Town Centre] and RioCan Hall will not proceed for a number of years. This determination and commitment to focus on the core retail aspect of these properties removes any ambiguity related to these sites, freeing up our leasing team to maximize retail rents by offering longer lease terms to our tenants.”

Fair market value losses totalling $148.2 million also contributed to the overall loss.

RioCan dropped five former Hudson’s Bay Company stores from its investment portfolio earlier this year. As a result, the REIT is not putting any more money into the assets.

RioCan held the assets in a 12-property joint-venture with the Bay, which is winding down its 355-year-old business through a creditor-protection process overseen by an Ontario court. The REIT petitioned the JV into receivership in June.

The former Bay locations include the company’s downtown Calgary store and leased spaces in the Square One Shopping Centre in Mississauga, Ont., Scarborough Town Centre in Toronto, and the Carrefour Laval and Promenades St-Bruno malls in the Montreal region.

RioCan is assessing how it will proceed with the other seven Bay properties in the joint-venture. The REIT continues to meet its financial obligations associated with those assets.

The expenses are part of debtor-in-place financing that RioCan provided under the creditor-protection process, said Blasutti on the earnings call.

The REIT previously took a $208.8-million loss on its Bay holdings in the JV.

All Bay and Saks-branded stores located across Canada closed on June 1.

Pictured: Permanently closed Hudson’s Bay Company store in downtown Calgary.

Photo: Shutterstock