As some are not as familiar with the Canadian provinces as they are with the states, here are a few facts to help put RioCan's geographic diversity in perspective (from Statistics Canada):
  • The population is not distributed uniformly throughout Canada's territory. The vast majority of people who make up the population of Canada live in the southern part of the country, near the American border, leaving the northern areas largely uninhabited.
  • The strongest concentrations of population are located, firstly, along the axis extending from Québec city to Windsor, that is, along the St Lawrence River and lakes Ontario and Erie, and secondly, in Western Canada, in Vancouver and Victoria in British Columbia and the area extending from Calgary to Edmonton in Alberta.
  • In 2006, Canada's population was very largely concentrated in four provinces: Ontario, Quebec, British Columbia and Alberta. Approximately 86% of Canadians in 2006 were living in one of these four provinces. The 12.7 million Ontarians alone account for nearly 40% of Canadians.
  • In 2006, more than four immigrants out of five (85%) choose to settle in Quebec, Ontario or British Columbia. Ontario alone received half of Canada's newcomers in 2006, whereas the demographic weight of that province was less than 40%.

With that in mind, here is a snapshot of RioCan's geographic diversity:

(Source: company filings, compiled by Rubicon)

As the above chart and table shows, RioCan is strategically located in the most populated areas of Canada and some of the higher growth areas of the United States. Geographically, the RioCan portfolio is adequately diverse.

The following is a snapshot of the company's tenant base:

(Source: Company filings)

The top 10 tenants represent only 30% of the company's annualized revenue and have longer remaining lease terms. Due to these factors, the company's tenant base is adequately diverse.

RioCan REIT has desirable diversification attributes as they are located in more populated geographic areas as well as higher growth areas and their tenant base is stable with no outsized exposure to any one tenant.

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