Choice Properties Real Estate Investment Trust Reports Results for the Nine Months Ended September 30, 2025

Executive Summary

• Choice Properties reported a net income of $242.6 M for Q3 2025, reversing a net loss of $663.0 M in the comparable period last year, driven primarily by favorable fair‑value adjustments to Exchangeable Units.
• FFO per unit (diluted) increased 7.8% YoY to $0.278, and Same‑Asset NOI on a cash basis rose 2.8% YoY, reflecting strong rental growth in retail, industrial and mixed‑use portfolios.
• The Trust issued $500 M of senior unsecured debentures, using most proceeds to repay $448.3 M of maturing debt, leaving adjusted debt at 7.1× EBITDAFV and a robust liquidity position (~$1.4 B credit facility).

Key Details

• Net Income: $242.6 M (vs. $(663.0) M prior year) – mainly a $67.3 M fair‑value gain on Exchangeable Units offset by a $15.7 M gain on real‑estate securities and a $13.3 M loss on investment properties.
• FFO (diluted): $0.278 per unit, up 7.8% YoY; excluding timing & non‑recurring items, FFO grew 3.5% YoY.
• Same‑Asset NOI (cash basis): $251.5 M, +2.8% YoY; retail +3.1%, industrial +1.6%, mixed‑use/residential +4.0%.
• Occupancy: 98.0% at quarter end (up 20 bps from June 30), with retail 97.8%, industrial 98.3%, mixed‑use & residential 95.5%.
• Leasing spreads on long‑term renewals: Retail 9.0%; Industrial 38.3%.
• Development activity: $107.2 M capital invested (proportionate share); $34.3 M of properties transferred to income‑producing status, adding ~107,000 sq ft GLA (including 22,000 sq ft ground leases).
• Acquisitions/Disposals: Acquired 50% interest in a Nepean retail development for $8.7 M; disposed of 50% interest in an Edmonton retail property for $8.7 M. Subsequent quarter disposals of five retail assets and one unit generated $100.5 M proceeds (proportionate share).
• Financing: Issued $500 M senior unsecured debentures; $448.3 M used to repay maturing debt. Remaining debt metrics: Adjusted Debt/EBITDAFV = 7.1×, Adjusted Debt/Total Assets = 40.6%, Interest Coverage = 3.4×.
• Liquidity: Approximately $1.4 B of available credit; $13.7 B pool of unencumbered properties.
• Outlook (2025): Target annual FFO per unit $1.06‑$1.07 (≈3‑4% YoY growth); Same‑Asset NOI growth 2‑3% YoY; Adjusted Debt/EBITDAFV < 7.5×.

Notable Quotes

• “Choice Properties had another strong quarter, with Same‑Asset NOI and FFO per unit growth reflecting robust tenant demand for our grocery‑anchored retail portfolio and our well‑located industrial assets,” – Rael Diamond, President & CEO.
• “We remain focused on disciplined financial management while creating long‑term value for unitholders.” – Rael Diamond.