Granite REIT Announces C$292 Million in Acquisitions, C$190 Million in Dispositions and Provides a Leasing Update

Executive Summary

• Granite Real Estate Investment Trust acquired five U.S. income‑producing properties (~1.2 M sq ft) for ~$256.1 M and a UK property for future development, expanding its portfolio and re‑entering the UK market.
• Disposed of three U.S. assets (~1.7 M sq ft) on Dec 19 2025 for $189.5 M, generating cash used to fund acquisitions and reduce leverage.
• Executed new leases covering ~769,000 sq ft in Q4 2025, maintaining a 98% occupancy rate and reinforcing rental momentum.

Key Details

• U.S. Acquisitions (Dec 17‑19 2025) – Five properties totaling ~1.2 M sq ft purchased for $256.1 M (US$185.7 M) at an in‑going weighted average yield of ~4.7%; expected to stabilize near 6.0% within two years.
• UK Acquisition – One 15‑acre site acquired for future development of a 0.3 M sq ft e‑commerce & logistics warehouse; purchase price $36.2 M (£19.6 M) with an in‑going yield of 8.4%; planned post‑development yield >7.0%.
• Disposition (Dec 19 2025) – Sold three U.S. properties (~1.7 M sq ft) for $189.5 M (US$137.5 M) at a weighted average in‑going yield of 6.1%; assets were classified as “held for sale” as of Sep 30 2025.
• Fort Lauderdale Facility – Acquired 0.2 M sq ft distribution center for $88.5 M (US$64.1 M) at a 3.4% in‑going yield; fully leased to an e‑commerce 3PL with 1 year remaining, expected to stabilize near 6.0%.
• Houston Facilities – Acquired four distribution facilities totaling 1.0 M sq ft for $167.6 M (US$121.5 M) at a 5.4% in‑going yield; 98% leased with an average lease term of 3.3 years.
• Leasing Activity Q4 2025 – Executed ~769,000 sq ft of new leases:
• 712,800 sq ft building in Avon, Indiana (188‑month term) for a global material handling company (effective Dec 5 2025).
• 56,000 sq ft expansion at Lebanon, Tennessee property (91‑month term) for a national packaging company (effective Dec 31 2025).
• Financing – Acquisitions funded via proceeds from recent dispositions, borrowings under Granite’s credit facility, and cash on hand. Post‑transaction liquidity stands at approximately $0.9 B.
• Strategic Outlook – Management expects to reduce the credit facility balance through future disposals and operating cash flow in 2026, and anticipates accretive income and NAV growth from the new UK development project.

Notable Quotes

“The transactions announced today reflect a successful execution and rebalancing of the portfolio, including our re‑entry into the United Kingdom… recent leasing momentum and an in‑place occupancy rate of 98% further underscores the strength and quality of Granite’s portfolio.” – Kevan Gorrie, President & CEO