RioCan says more than half of former Zellers location has been leased

RioCan Real Estate Investment Trust says it’s well on its way to replace all the rental income that it once received from nine former Zellers locations that were vacated in the first half of this year.The Toronto-based trust, which has one of Canada’s largest portfolios of retail and commercial properties, says 62 per cent of the vacated Zellers space has been leased and will begin generating 102 per cent of revenue as it comes on stream.RioCan says its operating funds from operations grew to $121 million in the three months ended June 30, up 14 per cent from $106 million a year earlier.Overall occupancy was little changed but slipped to 96.7 per cent as of June 30, down from 97.4 per cent a year earlier.On a per-unit basis, operating funds from operations was 40 cents, up from 37 cents a year ago.The operating funds from operations and adjusted earnings are more closely watched by analysts than net income, which includes a number of non-operating items such as the estimated value of its properties.Net earnings attributable to unit holders was $153 million, down from $409 million a year earlier, mostly because of adjustments to the fair value of its holdings.Adjusted earnings excluding taxes and fair value adjustments was $112 million, up from $106 million a year earlier.RioCan units were at $24.64 on the Toronto Stock Exchange, up nine cents.

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