Crombie REIT Announces Fourth Quarter and Year End 2025 Results

Executive Summary

• Cromwell Real Estate Investment Trust (Crombie) reported Q4 2025 and full‑year 2025 results, showing modest revenue growth, record committed occupancy of 97.7%, and per‑unit FFO/AFFO increases of ~4–6%.
• The REIT announced a binding agreement to acquire a 484,000 sq ft retail support centre industrial property for $115.4 M, expected to close in February 2026.
• Management highlighted a credit rating upgrade (BBB‑low to BBB) and a $0.01 per unit increase to the annual distribution.

Key Details

• Occupancy & Leasing – Committed occupancy 97.7% (up 90 bps YoY); economic occupancy 97.4%. Renewals of 239,000 sq ft at rents 10.0% above expiring rates; new leases added 259,000 sq ft at $16.67/‑sf average first‑year rent.
• Acquisitions – Purchased a 51,000 sq ft grocery‑anchored retail property in Etobicoke for $28.472 M. Announced acquisition of a 484,000 sq ft retail support centre industrial property from Empire for $115.4 M (closing Feb 2026).
• Financial Highlights – Q4 2025 vs Q4 2024
• Property revenue: $122.1 M (+0.4%).
• Revenue from management & development services: $2.55 M (+82.5%).
• Operating income attributable to unitholders: $25.2 M (‑66.9%).
• FFO per unit: $0.33 (+3.1%); AFFO per unit: $0.29 (+3.6%).
• Commercial same‑asset property cash NOI: $84.3 M (+4.1%).
• Financial Highlights – Full Year 2025 vs 2024
• Net property income: $316.8 M (+5.0%).
• Operating income attributable to unitholders: $116.5 M (‑26.4%).
• FFO: $240.1 M (+5.8%); AFFO: $212.4 M (+7.6%).
• Debt to gross fair value improved to 42.1% from 43.6%; debt/EBITDA ratio fell to 7.69× from 7.96×.
• Liquidity – Available liquidity $669.2 M (down 1.9% YoY).
• Development Activity – Major development: The Marlstone, a 291‑unit residential project in Halifax, slated for completion Q2 2026. Non‑major projects: 62 initiatives covering 26,000 sq ft GLA, total cost $48.7 M (cost to complete $8.9 M). Modernization spend $13.984 K in Q4 2025.
• Distribution – Annual distribution increased by $0.01 per unit following credit rating upgrade.
• Conference Call – Management will discuss results on Feb 11 2026 at 10:00 a.m. EST; webcast available.

Notable Quotes

“All pillars of our Building Together strategy combined to deliver a standout 2025… Prudent financial management continued to strengthen our balance sheet, earning us a credit rating upgrade…” – Mark Holly, President & CEO.