Automotive Properties REIT Reports Financial Results for Third Quarter of 2025

Executive Summary

• Automotive Properties REIT reported strong Q3 2025 results, with AFFA per Unit rising to $0.252 (diluted) and rental revenue up 7.9% YoY to $25.4 M.
• Completed acquisitions of 15 automotive properties (including U.S. entry), funded partly by a $57.1 M bought‑deal/public offering and vendor take‑back financing.
• Declared a 2.2% increase in the annual cash distribution to $0.822 per Unit, with Q3 distributions of $0.204 per Unit (total $10.08 M).

Key Details

• Financial Performance
• Rental revenue: $25.4 M (+7.9% YoY) vs. $23.5 M in Q3 2024.
• NOI: $21.1 M (+6.2% YoY); Cash NOI: $20.96 M (+6.5%).
• Same‑property cash NOI: $19.64 M (+2.3%).
• Net income (incl. OCI): $10.42 M vs. $1.77 M in Q3 2024 (↑ 489.9%).
• FFO: $12.90 M (+8.3%); AFFO: $12.72 M (+8.8%).
• AFFA per Unit (diluted): $0.252 vs. $0.233 YoY.

• AFFA payout ratio: 81.0% (down from 86.3%).

• Distributions

• Regular cash distribution declared: $0.204 per Unit ($10.08 M).

• Annual distribution increased 2.2% to $0.822 per Unit, effective Aug 2025 payout.

• Acquisitions (Q3 2025 & Subsequent)

• Q3 acquisitions: 7 properties (5 dealerships + collision centre in Greater Montreal; Rivian‑tenanted property in Orlando, FL) – total ≈ $150.9 M.
• Post‑quarter acquisitions: 4 additional Montreal dealerships for ~$57.3 M (funded via $10 M Class B LP Units @ $12.00 each + credit facilities).
• Oct 16 2025: Des Sources portfolio – 3 Montreal dealerships, $52.5 M purchase; financed with $31.5 M vendor take‑back mortgage (4.5% interest, 5‑yr term) and credit facilities.

• Oct 29 2025: Honda Île‑Perrot property, $4.8 M cash purchase.

• Financing Activity

• Bought‑deal public offering (Oct 23 2025): 3,070,000 REIT Units @ $11.11 per unit → gross proceeds $34.1 M.
• Concurrent private placement: 1,442,844 units to Dilawri Group → $16.0 M.

• Over‑allotment exercises added 428,200 units (public) + 201,247 units (Dilawri) → total gross proceeds ≈ $57.1 M.

• Liquidity & Capital Structure

• Debt‑to‑GBV ratio improved to 45.7% (down from 47.4%).
• Undrawn revolving credit capacity increased to $90.0 M (from $21.0 M).

• Cash on hand rose to $7.5 M (from $0.6 M).

• Units Outstanding

• REIT Units: 54,259,404 (up from 49,117,113).

• Class B LP Units unchanged at 833,333.

• Outlook & Risks

• Management expects continued consolidation in the automotive dealership sector and plans further portfolio growth in Canada and the U.S.
• Highlights exposure to inflation, interest rates, currency fluctuations, and trade‑policy uncertainties.

Notable Quotes

“We have had an active period in advancing strategic initiatives for our unitholders… we expect these property acquisitions to drive continued growth in our AFFO per Unit.” – Milton Lamb, CEO
“Supported by this strong financial performance, the Board approved a 2.2% annual increase to our unitholder distributions.” – Milton Lamb, CEO