Granite REIT Announces 2025 Third Quarter Results and a 4.4% Distribution Increase Commencing in December 2025

Executive Summary

• Granite REIT reported Q3 2025 net operating income of $127.1 M, up $7.5 M YoY, driven by rent adjustments, acquisitions and lease commencements.
• Funds from operations (FFO) rose to $89.9 M ($1.48 per unit) and adjusted funds from operations (AFFO) to $77.0 M ($1.26 per unit).
• The Trust announced a 4.41% increase in the targeted annualized distribution to $3.55 per unit (effective Dec 2025), reflecting stronger cash flow generation.

Key Details

• Financial Performance
• NOI: $127.1 M vs. $119.6 M YoY (+5.2%).
• Constant‑currency same‑property NOI – cash basis: +5.2% QoQ.
• FFO: $89.9 M ($1.48/unit) vs. $85.2 M ($1.35/unit) YoY.
• AFFO: $77.0 M ($1.26/unit) vs. $76.6 M ($1.22/unit) YoY.
• Net income attributable to unitholders: $68.0 M vs. $111.6 M YoY (down due to $34.6 M fair‑value losses on properties).

• AFFO payout ratio: 67% (down from 68%).

• Balance Sheet & Leverage

• Net leverage ratio increased to 35% (up 300 bps) after classifying $370.7 M of assets as held for sale and drawing $78.0 M on the credit facility for NCIB repurchases.
• Total debt: $3,335.5 M vs. $3,087.8 M YoY.

• Fair‑value losses on investment properties: $34.6 M; unrealized FX gains on those assets: $156.5 M.

• Operations

• In‑place occupancy: 96.8% (up 100 bps QoQ); committed occupancy: 97.1% as of Nov 5 2025.
• Six properties in the U.S. and Netherlands classified as assets held for sale (fair value $370.7 M).

• New lease: 148,000 sq ft in Houston, TX (126‑month term with a global automotive accessories manufacturer) commencing Q1 2026.

• Distribution Increase

• Targeted annualized distribution raised by 4.41% to $3.55 per unit ($0.2958 per month), effective upon declaration for Dec 2025 and payable mid‑Jan 2026.

• Guidance Update (2025 Outlook)

• Revised FFO per unit forecast: $5.83–$5.90 (previously $5.75–$5.90).
• Revised AFFO per unit forecast: $5.03–$5.10 (previously $4.90–$5.05).

• Assumes no incremental acquisitions/dispositions and incorporates stronger lease activity, the Florida acquisition completed June 30 2025, and favorable CAD‑USD/EUR exchange rates.

• Conference Call

• Date: Nov 6 2025, 11:00 a.m. ET; chaired by President & CEO Kevan Gorrie.

Notable Quotes

“Our Q3 results reflect the continued strength of our portfolio, disciplined leasing activity and strategic acquisitions that together support a higher distribution for our unitholders,” – Kevan Gorrie, President & CEO.