GO Residential Real Estate Investment Trust Reports Strong Fourth Quarter 2025 Results; Exceeding Forecast
Executive Summary
- GO Residential REIT reported strong Q4 2025 financial performance, delivering $21.6 M net income and $14.7 M adjusted AFFO ($0.27 per unit), both beating pro‑rata forecasts.
- The REIT’s operating subsidiary (OpCo) received a BBB‑low rating from DBRS and issued C$325 M senior unsecured debentures at 4.534% to refinance debt and fund acquisitions.
- GO Residential announced a series of Manhattan/Brooklyn multifamily acquisitions totaling > $820 M, financed through a $37.5 M bought‑deal offering, a $37.6 M concurrent OpCo private placement, and additional credit facility capacity.
Key Details
- Financial Highlights – Q4 2025 (Three months ended 31 Dec 2025)
- Revenue: $40.8 M (Adjusted $45.0 M vs. pro‑rata forecast $44.6 M).
- NOI Adjusted: $32.6 M (vs. $32.3 M forecast); NOI margin 72.5% (vs. 72.3%).
- AFFO Adjusted: $14.7 M ($0.27/unit), +3.8% vs. forecast.
- Debt‑to‑Gross Book Value Ratio: 48.5%.
- Annual‑to‑Date Highlights – July 31 2025 – Dec 31 2025
- Revenue Adjusted: $73.96 M (vs. $73.22 M pro‑rata).
- NOI Adjusted: $53.38 M (vs. $52.54 M forecast).
- AFFO Adjusted: $23.75 M ($0.43/unit), +7.5% vs. forecast.
- Credit Rating
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OpCo assigned DBRS “BBB (low)” with Stable outlook on 6 Jan 2026.
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Debt Issuance
- C$325 M senior unsecured debentures, issued at par, 4.534% fixed rate, maturing 13 Feb 2029; proceeds used to repay existing indebtedness and for general corporate purposes including acquisitions.
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Cross‑currency interest‑rate swap: OpCo paid C$325 M, received US$239.7 M; receives 4.534% on CAD amount, pays 5.552% on USD amount.
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Acquisition Program (Q1 2026)
- Ivy & Hudson Acquisitions – Three Manhattan properties (345 W 42nd St., 350 W 43rd St., 411 W 35th St., 445 W 35th St.) – total consideration $380.5 M (incl. $10 M income support). Funding: $183.2 M cash, ~$120 M new mortgage debt (Hudson), up to $77.3 M equity issued (≈3.26 M OpCo Units + 5 000 REIT Units) with hold periods of 6‑24 months.
- Dey & Eastern Parkway Acquisitions – 100% of 7 Dey St. and 81.16% of 409 Eastern Pkwy., Brooklyn – total consideration $439.6 M, funded via new/assumed mortgage debt, proceeds from the bought‑deal offering, concurrent OpCo private placement, and a draw on the REIT’s credit facility.
- Financing Transactions (23 Mar 2026)
- Bought‑Deal Offering: 3,768,845 REIT Units at $9.95/unit → gross proceeds ≈ $37.5 M.
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Concurrent OpCo Private Placement: 3,780,910 OpCo Units at $9.95/unit → gross proceeds ≈ $37.6 M.
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Unit Structure (as of 23 Mar 2026)
- REIT Units outstanding: 37,165,512
- Board Voting Units outstanding: 22,065,867
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OpCo Units outstanding: 63,012,288.69 (including 37,165,512 held indirectly by the REIT)
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Distribution Policy
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Monthly distribution target ≈ 65% of estimated annual AFFO; current monthly payout $0.05325 per unit ($0.639 annually).
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Outlook & Guidance
- Management expects to complete “mark‑to‑market” rent initiative by Q2 2026.
- Positive demographic and supply‑demand fundamentals in Manhattan cited as long‑term growth drivers.
Notable Quotes
“With an experienced management team, a high‑quality portfolio, and a clear strategy for disciplined expansion, GO Residential REIT is well positioned to continue delivering sustainable value for our Unitholders.” – Joshua Gotlib, CEO & CIO
“Achieving an investment‑grade credit rating and successfully issuing our inaugural unsecured debenture further validates the strength of our balance sheet… The announcement of our recent acquisitions reinforces our commitment to expanding our portfolio in desirable markets.” – Meyer Orbach, Chairman of the Board of Trustees
All figures are presented as disclosed by GO Residential REIT and are unaudited unless otherwise noted.