SmartCentres Real Estate Investment Trust Releases Second Quarter Results for 2025

Executive Summary

• SmartCentres Real Estate Investment Trust reported its financial and operating results for the quarter ended June 30, 2025, highlighting continued momentum in leasing demand and operational performance.
• The Trust reported a 4.8% increase in Same Properties NOI (7.7% excluding Anchors) for Q2 2025, driven by strong tenant base strengthening and customer traffic.
• FFO per Unit increased to $0.58 (from $0.50 in Q2 2024), while Net Income decreased by $19.7 million primarily due to a reduction in fair value gains on investment properties.

Key Details

• Leasing & Occupancy:
  • In-place and committed occupancy rate reached 98.6% as of June 30, 2025.
  • 147,818 square feet were leased during the quarter, including approximately 38,740 square feet of new-build retail.
  • 82.1% of leases maturing in 2025 were extended or finalized, with rent growth of 8.5% (excluding Anchors).
  • Pacific Fresh took possession of 136,703 sq. ft. in Vaughan (previously Lowe’s), and Costco took possession of 125,040 sq. ft. at Winston Churchill and Highway 401; both plan to open later in the year.
• Financial Performance (Q2 2025 vs Q2 2024):
  • Net rental income and other: $141.3 million (up 6.1% or $8.1 million).
  • Net income and comprehensive income: Decreased by $19.7 million, primarily due to a $27.7 million reduction in fair value gain on investment properties.
  • FFO per Unit: $0.58 (up from $0.50).
  • FFO with adjustments per Unit: $0.55 (up from $0.51).
  • AFFO per Unit: $0.55 (up from $0.47).
  • Payout Ratio to AFFO: 84.3%.
• Development Pipeline & Operations:
  • Three self-storage projects (Toronto Gilbert Ave., Toronto Jane St., Dorval St-Regis Blvd.) were completed and opened during the quarter.
  • Construction is underway in Montreal (Notre Dame St. W) and Laval E, expected to open in 2026.
  • Site preparation completed in Burnaby, BC, with construction commencing; expected opening in 2027.
  • Phase I of Vaughan NW townhomes is mostly complete; 9 units closed in Q2 2025, bringing total Phase I closings to 98 out of 120 units.
  • Total portfolio includes 197 properties with an ownership interest (155 retail, 4 office, 12 self-storage, 3 residential, 1 industrial).
• Balance Sheet & Metrics (As of June 30, 2025):
  • Investment properties value: $10.73 billion.
  • NAV per Unit (diluted): $35.65.
  • Debt to Aggregate Assets: 44.2%.
  • Adjusted Debt to Adjusted EBITDA: 9.6x.
  • Weighted average interest rate: 3.94%.
  • Interest coverage ratio: 2.6x.
• Conference Call: Scheduled for Friday, August 8, 2025, at 11:00 a.m. (ET).

Notable Quotes

• “Building on Q1, we are pleased to report continued momentum in leasing demand and operational performance in Q2,” said Mitchell Goldhar, CEO of SmartCentres. “Occupancy has improved to 98.6% with approximately 148,000 square feet leased up during the quarter and rent growth of 8.5% (excluding Anchors). Same Properties NOI increased by 4.8% (7.7% excluding Anchors) showcasing improving customer traffic and a strengthened tenant base.”