PROREIT ANNOUNCES THIRD QUARTER 2025 RESULTS
Executive Summary
- PROREIT reported a strong Q3 2025 performance, with net operating income (NOI) up 19.6% YoY to C$17.1 M and same‑property NOI rising 9.7% YoY to C$13.5 M.
- Property revenue increased 12.8% YoY to C$27.1 M, driven by rent escalations and higher lease rates despite a portfolio that is ten properties smaller than a year ago.
- The REIT completed the sale of its remaining non‑core retail assets (12 properties, 277k sq ft) for C$51.3 M, finalising its transition to a pure‑play industrial platform.
Key Details
- Financial Highlights – Q3 2025 vs. Q3 2024
- NOI: C$17,058 k (↑19.6%) vs. C$14,262 k
- Same‑Property NOI: C$13,536 k (↑9.7%) vs. C$12,336 k
- Property revenue: C$27,102 k (↑12.8%) vs. C$24,033 k
- Net income & comprehensive income: C$12,909 k (↑287%); per‑unit basic $0.1924 vs. $0.0549
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AFFO payout ratio – Basic: 91.1% (down from 97.7%) indicating improved cash‑flow coverage.
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Nine‑Month Highlights (Jan–Sep 2025)
- NOI: C$47,372 k (↑8.0%) vs. C$43,870 k
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FFO: C$23.831 M (↑10.3%) vs. C$21.614 M
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Portfolio & Operations
- Total assets: C$1.084 B (↑8% YoY) – 106 properties (6.4 M sq ft GLA).
- Industrial segment now represents 91.7% of total GLA and 89.4% of base rent.
- Occupancy at September 30 2025: 95.5% (incl. committed space); 98.1% when excluding a single Quebec vacancy.
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Lease renewals: 74.8% of 2025‑maturing GLA renewed at an average spread of 34.9%; 54.8% of 2026‑maturing GLA renewed at 33.4% spread.
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Disposition Activity
- Completed sale of 12 non‑core retail properties (277k sq ft) for C$51.3 M – proceeds used to repay C$21.5 M of mortgages, C$8.5 M of revolving credit, and general corporate purposes.
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Post‑quarter sales: office property (C$7.2 M) and retail property in Alberta (C$0.4 M); net proceeds applied to debt repayment.
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Financing & Debt
- Total debt (Sept 30 2025): C$531.1 M (49.0% of assets).
- Refinanced two co‑ownership industrial mortgages for C$64.3 M (50% share C$32.1 M) at 3.99% and 4.20%; net proceeds used to reduce revolving credit facility by ≈C$8 M.
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Adjusted debt to gross book value: 49.1%, down from 50.2% a year earlier.
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Distributions
- Monthly distribution declared at C$0.0375 per trust unit (annualized C$0.45 per unit).
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Additional cash distribution for October 2025 of C$0.0375 per unit payable November 17 2025.
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Strategic Outlook
- Completed transition to a pure‑play industrial REIT; targeting C$2 B in assets and 45% adjusted debt-to‑GBV within the next 3–5 years.
- Management reaffirmed confidence in growth opportunities across primary/secondary Canadian markets, especially Winnipeg and Atlantic Canada.
Notable Quotes
“We are very pleased with our third quarter NOI growth year‑over‑year and the successful completion of our transition to a pure‑play industrial REIT…our evolution from a diversified REIT to a focused industrial platform … is now complete.” – Gordon Lawlor, President & CEO
All figures are presented in Canadian dollars unless otherwise noted.