RioCan REIT Announces Strategic Change of External Auditor for Fiscal 2026
RioCan Real Estate Investment Trust, a leading figure in the Canadian real estate market, has announced a significant, forward-looking transition in its external audit services. In a move underscoring the Trust’s unwavering commitment to robust corporate governance and continuous oversight, RioCan has concluded a rigorous, comprehensive Request for Proposal (RFP) process, which has resulted in the selection and approval of PricewaterhouseCoopers LLP (“PwC”) to serve as its external auditor beginning with the fiscal year 2026. This strategic decision marks the commencement of a new chapter in the Trust’s financial stewardship and reporting integrity.
The transition comes after a period of detailed evaluation, a process carefully orchestrated and overseen by RioCan’s Audit Committee. The initiation of the RFP was a deliberate act of strong governance, primarily driven by the recognition of Ernst & Young LLP (“EY”)’s substantial and commendable tenure as the Trust’s long-standing external auditor. In modern corporate environments, periodic review and rotation of key professional service providers like external auditors is considered a best practice, ensuring objectivity, fresh perspectives, and alignment with evolving regulatory landscapes. By proactively undertaking this competitive review, RioCan reinforces its dedication to upholding the highest standards of financial transparency and accountability for its unitholders and stakeholders.
A Rigorous Selection Process
The search for the next auditor was conducted with exceptional diligence. The Audit Committee was tasked with an exhaustive evaluation of several top-tier firms. The RFP process was designed to assess multiple critical factors, including the potential firm’s technical acumen, sector-specific experience—particularly within the complex realm of real estate investment trusts—global resources, independence, and overall cultural alignment with RioCan’s values.
Following the thorough vetting and deliberation, the Audit Committee formally presented its recommendation to the Board of Trustees. The Board ultimately approved the appointment of PwC, recognizing the firm’s exceptional qualifications. PwC distinguished itself through its demonstrated depth of expertise, its extensive and relevant track record, and its unequivocal independence, all of which the Board determined would best serve the Trust’s future needs as it continues to execute its strategic objectives. This selection is poised to bring renewed energy and state-of-the-art auditing methodologies to RioCan’s financial reporting framework.
The Phased Transition Timeline
It is important to note that the transition will be conducted in a careful and phased manner to ensure absolute continuity and stability in the Trust’s financial reporting. Ernst & Young LLP will maintain its role as the external auditor for the full duration of the current financial year, which concludes on December 31, 2025. This means EY will be responsible for the year-end audit of RioCan’s consolidated financial statements for 2025 and will issue the associated auditor’s report.
The formal conclusion of EY’s service is stipulated to occur on the first business day following the filing of the Trust’s audited consolidated financial statements for the year ending December 31, 2025, along with the required auditor’s report from EY.
Immediately following EY’s effective resignation, PwC will be appointed to fill the resulting vacancy on the very same day. PwC’s initial appointment will extend until the Trust’s 2026 annual meeting of unitholders. At that critical meeting, in line with established corporate procedures, RioCan’s management intends to propose the formal appointment of PwC as the external auditor for the ensuing fiscal year, subject to unitholder approval. This structured handover process is specifically designed to minimize disruption and ensure a seamless changeover in audit leadership.
Acknowledging a Legacy of Service
While celebrating the strategic appointment of PwC, RioCan wishes to extend its profound and sincere appreciation to Ernst & Young LLP for its dedicated and extended service to the Trust. EY has served as RioCan’s external auditor for nearly two decades, a significant period marked by dynamic growth and transformation within the Canadian real estate sector.
Throughout their long tenure, EY has consistently provided invaluable insight, professional stewardship, and unwavering commitment to the integrity of the Trust’s financial statements. RioCan recognizes the complexity of auditing a large, publicly traded Real Estate Investment Trust and acknowledges the firm’s contributions to maintaining high standards of financial governance over the years. This transition is purely a governance-driven best practice decision and is not a reflection of the quality or dedication of EY’s service., the appointment of PricewaterhouseCoopers LLP as the new external auditor for fiscal 2026 marks a proactive step by RioCan’s Board of Trustees to reinforce its governance structure. It ensures the Trust continues to benefit from fresh, expert, and independent oversight, aligning with global best practices and preparing RioCan’s financial reporting for future growth and increasing complexity.
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