RioCan Real Estate Investment Trust Announces Portfolio Acquisition With Joint Venture Partner

RioCan Real Estate Investment Trust ("RioCan") (TSX: REI.UN) today announced that it has agreed to acquire a 10-property portfolio located in central and eastern Canada, totalling approximately 1.1 million square feet of new format and strip retail centres. The portfolio will be acquired on a 50/50 basis with Kimco Realty Corporation ("Kimco") (NYSE: KIM) through the creation of a second joint venture partnership, RioKim II. The aggregate purchase price of the portfolio is approximately $156 million.

RioKim II is a non-exclusive partnership with Kimco. RioCan will source, lease, asset and property manage any property in the joint venture and will be paid market fees for so doing. Additional properties may be acquired under this partnership as opportunities arise but there are currently no further acquisitions being contemplated and RioCan is under no obligation with respect to any further additional acquisitions.

The portfolio features several new format retail centres in a number of primary markets including Montreal and Ottawa, and is complemented by a number of neighbourhood strip centres in Halifax, Gatineau, Hawkesbury, Belleville, Fergus, London and Chatham. The weighted average lease term of the portfolio is 9.3 years and approximately 90% of the portfolio is comprised of national and regional tenants such as Wal-Mart, Zellers, Canadian Tire, Metro Inc., Shoppers Drug Mart, Best Buy, Linens N' Things and Price Choppper.

The average age of the portfolio is 11.4 years, with a weighted average occupancy of 97.6%. The 10 properties include:


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Property Location                         Property Size      Major Tenants
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220 Chain Lake Drive, Halifax, NS   138,094 square feet           Wal-Mart
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1160 Desserte Ouest, Montreal, QC   116,147 square feet            Zellers
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857 Cecile Boulevard,                54,950 square feet      Price Chopper
 Hawkesbury, ON
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900 Aberdeen Avenue,                 17,032 square feet Shoppers Drug Mart
 Hawkesbury, ON
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720 Maloney Boulevard,              283,877 square feet          Wal-Mart,
 Gatineau, QC                                            Canadian Tire and
                                                                   Super C
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1701 Merivale Road,                 127,416 square feet     Loeb, Best Buy
 Ottawa, ON                                                  and Linens N'
                                                                    Things
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110 North Front Street and           71,930 square feet     A&P and Rogers
 21 College                                                          Video
 Street West, Belleville, ON
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878-894, 900 Tower Street South,    105,955 square feet            Zellers
 Fergus, ON
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1345-1365 Huron Street and           90,212 square feet Shoppers Drug Mart
 1250-1270
 Highbury Avenue, London, ON
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448 St. Clair Street, Chatham, ON    71,423 square feet       Food Basics,
                                                            PartSource and
                                                                      CIBC
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The total debt assumed for the transaction is $82.6 million, with a weighted average term of 8.25 years and a weighted average interest rate of 6.25%.

Closing of the acquisition is expected on or about June 25, 2008.

David Henry, Vice President and Chief Investment Officer of Kimco, said, "Kimco is very pleased to be again investing opportunistically with RioCan in Canada. Over the years, RioCan has been a wonderful partner in both the acquisition and asset management of quality retail properties and tenants."

Edward Sonshine, Q.C., President and CEO of RioCan, said, "We enjoy a strong and deep relationship with Kimco through our existing joint venture portfolio of over 8.2 million square feet. RioCan is pleased to be able to create this new joint venture with such a high quality portfolio."

About RioCan

RioCan is Canada's largest real estate investment trust with a total capitalization of approximately $7.7 billion. It owns and manages Canada's largest portfolio of shopping centres with ownership interests in a portfolio of 216 retail properties, including 14 under development, containing an aggregate of over 57 million square feet. For further information, please refer to RioCan's website at www.riocan.com .