RioCan is in the process of selling Canadian apartment assets for $379 million as it accelerates the monetization of its RioCan Living portfolio and shifts capital toward its retail-focused strategy, the REIT announced in its quarterly earnings report.

Toronto-based RioCan completed the previously announced sale of the Underwood Apartments in Calgary and reached. The REIT also reached firm agreements to sell its 50% stake in its 46-storey flagship FourFifty The Well mixed-use apartment property in downtown Toronto and Bellevue Phase One and Two in Montreal, and a conditional agreement to sell another residential rental property. In conjunction with the Bellevue Phase One and Two sale, RioCan also terminated its forward-purchase agreement for Bellevue Phase Three, which had been scheduled to close in the first half of 2026.

As of this week, the REIT anticipates that its multi-family residential segment, RioCan Living, will repatriate about $1 billion on a pro forma basis, representing about 80% of the $1.3-billion target outlined during the company’s investor day. The total includes closed, firm and conditional sales of residential rental properties, as well as proceeds from residential inventory sales. The REIT has received $30 million from completed residential inventory sales in 2026.

“We continue to see strong interest in the remaining four RioCan Living assets,” said RioCan President and CEO Jonathan Gitlin during a quarterly earnings call with analysts.

Gitlin said the REIT expects to sell most of the four assets in 2026 and complete the divestments by early 2027.

“We’re monetizing residential rental buildings and residential inventory,” he said. “In doing so we are simplifying our business and increasing clarity in our earnings profile. The proceeds are being redeployed equitably into portfolio investments, unit repurchases, and balance sheet flexibility, exactly as we outlined at Investor Day.”

The REIT said it continues to see strong interest in its four remaining RioCan Living assets and remains focused on monetizing the remaining portfolio in a disciplined manner. RioCan’s residual condominium inventory under construction was valued at about $100 million, with 14% subject to binding purchase agreements.

During the earnings call, Gitlin said RioCan expects to generate a 4% to 4.5% return on the divestments. Buyers range from family offices to institutional players and private-equity investors, he added.

In addition to the RioCan Living transactions, the trust entered into $57.1 million worth of firm and conditional deals as of May 4. RioCan said proceeds from its capital repatriation activities have been redirected toward portfolio investments and unit repurchases.

During the first quarter, RioCan reinvested approximately $22.3 million into portfolio investments, including $7.3 million for retail infill projects and $14.9 million for asset enhancement initiatives aimed at maximizing density within existing shopping centres.

Gitlin said on the earnings call that there have been “a steady stream” of private and now public market retail transactions similar to those of RioCan. The deals offer strong evidence of Rio?Can’s asset values and reinforcing the fact that its unit price is undervalued, he added.

Pictured (third from left): FourFifty The Well in downtown Toronto.

Image: RioCan