07:24 AM EST, 02/19/2025 (MT Newswires) -- RioCan REIT (REI-UN.TO) overnight Tuesday reported improved funds from operations for the fourth quarter and increased its distribution for the fourth consecutive year to demonstrate confidence in its core business.

It reported Q4 FFO adjusted per unit diluted of $0.47 versus $0.44, and FFO per unit diluted of $0.45 versus $0.44, and also net income per unit diluted of $0.42 versus a loss of $0.39.

Among highlights, it said high demand locations generated new leasing spreads of 36.7% for 2024; blended leasing spreads of 18.7%. It cited record-breaking committed occupancy at 98.0%; retail committed occupancy at high water mark of 98.7%.

The company also cited 98% completion of the 372 expected Q4 condominium and townhouse interim closings to date; and added Adjusted Debt to Adjusted EBITDA improved to 8.98x from 9.28x at the end of the prior year.

On the distribution increase and outlook, RioCan's Board of Trustees approved a 4.3% increase to the monthly distribution to Unitholders from $0.0925 to $0.0965 per unit commencing with the February 2025 distribution, payable on March 7, 2025 to Unitholders of record as at February 28, 2025. This brings RioCan's annualized distribution to $1.16 per unit marking its fourth consecutive annual distribution increase.

Based on its FFO guidance for 2025, RioCan expects to maintain a payout ratio within its long-term target range of 55%-65%.

"RioCan had another exceptional year, continuing its trend of achieving its operational and financial objectives, reaching record occupancy and leasing spreads", said Jonathan Gitlin, President and CEO. "RioCan is well positioned to capitalize on the favourable retail real estate fundamentals in the under supplied Canadian market. Our recent Unit buybacks and the Board of Trustees' decision to increase our distribution for the fourth consecutive year demonstrate confidence in our core business and our team's ability to maximize asset value while strategically managing capital."

RioCan was up $0.11 at $18.88 yesterday.