SmartCentres Real Estate Investment Trust Releases Third Quarter Results for 2025

Executive Summary

• SmartCentres REIT reported Q3 2025 results, highlighting a stable occupancy of 98.6% and rental growth of 8.4% (excluding anchors).
• Net income for the quarter surged to $81.0 M versus $42.5 M in Q3 2024, driven primarily by fair‑value gains on financial instruments.
• The Trust raised $500 M via a two‑tranche term debenture post‑quarter to refinance $350 M of maturing debt and reduce floating‑rate exposure.

Key Details

• Operating Highlights
• In‑place & committed occupancy: 98.6%, unchanged YoY.
• Same‑property NOI growth (ex‑anchors): +4.6% YoY.
• Leased ~68,000 sq ft of vacant space in Q3; total YTD leased ≈ 394,000 sq ft.

• Lease renewals: ~85% of 2025 expiries extended/finalized with 8.4% rent growth (ex‑anchors).

• Development Activity

• Opened three self‑storage facilities in 2025 (Toronto – Gilbert Ave., Toronto – Jane St., Dorval) → total self‑storage count now 14.
• Under construction: self‑storage sites in Montreal & Laval (opening 2026), Burnaby & Victoria (construction Q4 2025, opening 2027).
• Vaughan NW townhomes: 13 units closed Q3; 111 of 120 Phase I units closed to date.
• ArtWalk condo Tower A pre‑sale at ~93% of 340 units; construction progressing on slab and underground parking.

• Flagship Canadian Tire store (200,000 sq ft) on schedule for possession Q2 2026.

• Financial Performance

• Net rental income & other: $141.3 M, down 0.5% YoY (offset by lower residential sales).
• FFO per Unit: $0.60 vs $0.72 prior year; adjusted FFO per Unit $0.57 vs $0.54.
• Net income & comprehensive income: $81.0 M, up $38.6 M YoY (mainly fair‑value adjustments on swaps and unit liabilities).
• NAV per diluted Unit: $35.70, marginally below $36.03 a year earlier.

• Debt metrics: Debt to aggregate assets 44.4%; weighted‑average term of debt 2.9 years (down from 3.1 yr).

• Financing Activity

• Issued a $500 M two‑tranche term debenture after quarter‑end.

• Proceeds to repay $350 M maturing debenture, reduce floating‑rate operating line debt, and extend overall debt maturity profile.

• Conference Call

• Management call scheduled for Thursday, 13 Nov 2025 at 3:00 p.m. ET (access details provided).

Notable Quotes

“We are pleased to report another strong quarter of operating and financial results… We expect to continue delivering healthy rental growth for the balance of the year.” – Mitchell Goldhar, CEO

Materiality Assessment: Material – Positive (significant earnings increase, debt refinancing, and operational highlights that are likely to influence investor decisions).