RioCan Real Estate Investment Trust says its second-quarter profit soared as the retail property developer and operator accounted for the higher fair value of its portfolio.
RioCan said its net income attributable to unitholders was $409-million or $1.41 per unit in the second quarter, up from $117-million or 44 cents per unit a year earlier.
That included a $315-million increase on the fair value of its investment properties, compared with a $25-million gain in the second quarter of 2011.
Excluding fair-value items and a $12-million impairment charge on RioCan's investment in Cedar Realty Trust, the net income would have been $109-million in the three months ended June 30, compared with $93-million a year earlier.
Funds from operations also improved, rising to $106-million or 37 cents per unit from $93-million or 36 cents per unit.
RioCan's operating FFO is a non-standardized financial measure that represents recurring cash flow, and excludes the fair value gain on investment properties.