CT REIT Reports Second Quarter 2025 Results

Executive Summary

• CT REIT reported its consolidated financial results for the second quarter ended June 30, 2025, showing growth in property revenue and net operating income compared to the prior year period.
• The REIT expanded its portfolio with two new investments totaling over 250,000 square feet and renewed 10 Canadian Tire store leases, while also completing $45 million in previously announced projects.
• Key financial metrics include a Net Income of $103.0 million for the quarter, Funds from Operations (FFO) of $81.2 million, and Adjusted Funds from Operations (AFFO) of $76.1 million, with distributions per unit paid increasing by 3.0% year-over-year.

Key Details

• Financial Performance (Q2 2025 vs Q2 2024):
  • Property Revenue: $149.8 million (up 3.7%).
  • Net Operating Income (NOI): $118.9 million (up 3.4%).
  • Net Income: $103.0 million (down 0.3%).
  • Funds from Operations (FFO): $81.2 million (up 2.3%).
  • Adjusted Funds from Operations (AFFO): $76.1 million (up 2.4%).
  • Distributions per Unit Paid: $0.231 (up 3.0%).
  • AFFO Payout Ratio: 72.2%.
• Portfolio Activity:
  • New Investments: Two new investments totaling ~252,000 sq ft of incremental gross leasable area (GLA) with an estimated cost of $66 million and a going-in yield of 7.55%.
    • Calgary (Northpointe at Country Hills), AB: Third-party acquisition of a Canadian Tire anchored property (201,000 sq ft), expected completion Q3 2025.
    • Saskatoon East, SK: Expansion of a Canadian Tire store (51,000 sq ft), expected completion Q4 2026.
  • Completed Projects: $45 million invested in previously disclosed projects completed in Q2 2025, adding 142,000 sq ft of incremental GLA.
    • Peterborough, ON: Expansion of a Canadian Tire store (32,000 sq ft).
    • Kingston, ON: Development of a new Canadian Tire store (110,000 sq ft).
• Operational Metrics:
  • Total Gross Leasable Area: 31,169,260 sq ft (up 1.9%).
  • Occupancy Rate: 99.5% (on a committed basis).
  • Tenant Concentration: Canadian Tire Corporation (CTC) represents 93.0% of total GLA and 91.9% of annualized base minimum rent.
• Capital Markets & Strategy:
  • Completed a $200 million Series J unsecured debenture issuance.
  • Announced a significant retrofit at the Canada Square property in midtown Toronto, anchored by a new 20-year office lease with Canadian Tire Corporation.
• Same Store Performance:
  • Same Store NOI: $115.0 million (up 1.6%).
  • Same Property NOI: $115.8 million (up 2.2%).

Notable Quotes

• "We are pleased to report another strong quarter of growth for CT REIT. In a busy Q2, we expanded our portfolio with two new investments totaling over 250,000 square feet and renewed 10 Canadian Tire store leases," said Kevin Salsberg, President and Chief Executive Officer, CT REIT.
• "Additionally, with the recent announcement of the significant retrofit that will be undertaken at our Canada Square property in midtown Toronto, anchored by a new 20-year office lease with Canadian Tire Corporation, and the successful completion of our $200 million Series J unsecured debenture issuance, we continue to improve the quality of our portfolio and successfully execute our core strategy," added Salsberg.