True North Commercial REIT Reports Q3-2025 Results

Executive Summary

• True North Commercial REIT reported Q3‑2025 results showing a decline in NOI, FFO and AFFO versus the prior year, driven by property dispositions and lower occupancy on held‑for‑sale assets.
• Core portfolio occupancy remained strong at ~94% with weighted average lease term (WALT) of 4.3 years; total leased/renewed space for the quarter was 168,400 sf at a WALT of 7.1 years and a 1.1 % leasing spread on renewals.
• The REIT completed refinancing of all 2025 debt maturities after Q3, securing $228,300 of refinancing and $8,500 of new financing at an average rate of ~4.87 %, then refinanced the remaining 2025 debt at ~4.39 % (2.83‑year term).

Key Details

• Occupancy & Leasing
• Core portfolio occupancy (excluding assets held for sale) = 94 % (above market averages).
• Total leased/renewed space Q3‑2025: 168,400 sf, WALT 7.1 years, leasing spread on renewals +1.1 %.

• YTD‑2025 total leased/renewed space: 605,900 sf, WALT 5.5 years, base rent increase 0.9 % YoY.

• Financial Performance (Q3‑2025 vs Q3‑2024)

• Revenue: $30,586 k (↑ $149 k; YTD‑2025 ↓6 %).
• Net Operating Income (NOI): $15,369 k, down ≈5 % YoY.
• Same Property NOI (excl. held‑for‑sale): down 2 % Q3, 3 % YTD.
• FFO: $8,105 k (↓ $1,009 k); per Unit basic/diluted $0.56 (down from $0.61).
• AFFO: $7,800 k (↓ $1,713 k); per Unit basic/diluted $0.54 (down from $0.64).

• Net loss & comprehensive loss Q3‑2025: $(5,213) k (worse than $(3,383) k in Q3‑2024).

• Unit Repurchases

• Q1‑Q2 2025: repurchased 110,700 Units for $1,021 k at $9.23/Unit. No repurchases in Q3‑2025.

• Debt & Liquidity

• Indebtedness to GBV ratio: 62.0 % (up from 61.8 %).
• Weighted‑average fixed interest rate on debt: 4.38 % (↑ from 3.94 %).
• Weighted‑average term to maturity: 2.39 years (↑ from 2.16 years).

• Available Funds as of Sept 30 2025: $42,790 k (cash $9,070 k + undrawn credit facility $33,720 k).

• Financing Activity (YTD‑2025)

• Refinancing completed: $228,300 k at avg. rate 4.87 %, term ≈3.0 years.
• New financing: $8,500 k under same terms.

• Post‑quarter refinancing of remaining 2025 maturities: avg. rate 4.39 %, term 2.83 years.

• Distribution Reinstatement

• March 18 2025: Monthly distribution reinstated at $0.0575 per Unit (record date Mar 31, payable Apr 15).

• YTD‑2025 AFFO payout ratio: 26 %.

• Regional Same Property NOI Highlights (Q3‑2025 vs Q3‑2024)

• Alberta: NOI ↓ 11 % (tenant downsizing).
• British Columbia: NOI ↓ 35 % (lease non‑renewal).
• New Brunswick: NOI flat.
• Nova Scotia: NOI ↑ 11 % (occupancy & rent increases).
• Ontario (GTA): NOI ↑ 2 % (termination income, later re‑leased).

Notable Quotes

• “We are pleased with the continued leasing momentum… and the successful completion of the refinancing of all of its 2025 debt maturities during the quarter,” – Daniel Drimmer, CEO.

Materiality Assessment: Material – Negative (significant declines in NOI, FFO/AFFO and net loss; notable financing activity and debt profile changes).