GO Residential Real Estate Investment Trust Reports Strong Third Quarter 2025 Results Exceeding Forecast
Executive Summary
- GO Residential REIT reported Q3 2025 results for the 62‑day period ending September 30, 2025 that beat its pro‑rated forecasts on all key metrics.
- Adjusted NOI was $20.10 M (71.1% margin) versus a forecast of $19.96 M; AFFO Adjusted reached $8.35 M ($0.15 per unit), 6.8% above the forecast.
- The REIT completed a refinancing of the mortgage on 1 East River Place, increasing total principal to $251,011 and using net proceeds to reduce its revolving credit facility.
Key Details
- Occupancy & Rent
- Committed occupancy: 99.5% at quarter‑end.
- In‑place occupancy: 96.8%.
-
Average monthly rent per suite: $6,818, a 2.5% increase vs. July 2025.
-
Financial Performance (62 days ended Sep 30, 2025)
- Revenue Adjusted: $28.29 M (vs. $28.281 M forecast; +0.0%).
- NOI Adjusted: $20.10 M (+$144 or +0.7% vs. forecast).
- NOI Adjusted Margin: 71.1% (vs. 70.6%; +0.5 pts).
- AFFO Adjusted: $8.35 M ($0.15 per unit), +6.8% versus forecast.
- FFO Adjusted: $8.58 M, +8.5% vs. forecast.
-
Net income (adjusted): $656.61 K (vs. $458 K forecast).
-
Expenses & Costs
- Property operating expenses: $(3.817) M (slightly below forecast).
- General & administrative expenses: $(6.057) M, higher due to one‑time transaction costs; normalized G&A lower than forecast.
-
Interest expense: $9.8 M, modestly under forecast.
-
Balance Sheet Highlights
- Debt to Gross Book Value: 47.9% (as of Sep 30, 2025).
-
Weighted‑average contractual mortgage rate: 4.2%; average debt term 3.8 years.
-
Distribution Activity
- First monthly distribution (Sept 15, 2025) – US$0.05325 per unit for the IPO period.
-
Board approved November 2025 cash distribution of US$0.05325 per unit (annualized $0.639), payable ~Dec 15, 2025.
-
Subsequent Event – Refinancing
-
On Oct 16, 2025, a subsidiary refinanced the mortgage on 1 East River Place:
- New five‑year term mortgage increased principal by $64,511 (from $186,500 to $251,011).
- Existing $186,500 continues at 2.45% fixed until July 1, 2027.
- Incremental $64,511 bears 5.02% fixed; after July 1, 2027 the full balance will bear 5.02% until maturity Nov 1, 2030.
- Net proceeds used to reduce the revolving credit facility of GO Residential Operating LLC.
-
Forward‑Looking Outlook
- Management expects continued strong demand for luxury multifamily in Manhattan driven by population and job growth; supply constraints expected to keep vacancy low.
Notable Quotes
“Our results exceeded our Pro‑Rata Forecast across every key metric, fueled by disciplined execution and the enduring strength of our Manhattan portfolio,” – Joshua Gotlib, CEO.