Granite REIT Announces Fourth Quarter and Year End Results for 2025 and the Appointment of Two New Trustees

Executive Summary

• Granite REIT reported a strong Q4 2025 with NOI up $12.1 M YoY to $133.3 M and FFO per unit increasing 8% year‑over‑year to $1.59.
• The Trust completed acquisitions of six U.S./U.K. properties ($292.3 M) and dispositions totaling $227.1 M, resulting in net fair‑value gains of $60.5 M and a net income of $135.4 M.
• Outlook for 2026 projects FFO per unit of $6.25–$6.40 (≈7% growth) and AFFO per unit of $5.40–$5.55, with capital expenditures of ~$40 M and continued green‑bond funding allocation.

Key Details

• Financial Performance
• NOI Q4 2025: $133.3 M vs. $121.2 M (2024) – +9.9% YoY.
• Constant‑currency same‑property NOI (cash basis) Q4 2025: +7.9% vs. +6.3% prior year.
• FFO Q4 2025: $96.6 M ($1.59/unit) vs. $92.7 M ($1.47/unit) YoY.
• AFFO Q4 2025: $79.3 M ($1.30/unit) vs. $78.8 M ($1.25/unit).
• Net income Q4 2025: $135.4 M vs. $83.7 M YoY, driven by $60.5 M fair‑value gains and $14.1 M FX gain.

• AFFO payout ratio remained at 66%; FFO payout ratio ~54%.

• Acquisitions & Dispositions

• Acquired six income‑producing properties (U.S./U.K.) – approx. 1.4 MM sq ft for $292.3 M (announced Jan 14 2026).
• Disposed three U.S. properties – 1.7 MM sq ft for $189.5 M (Dec 19 2025).

• Disposed Netherlands property – 0.2 MM sq ft for €37.6 M ($23.4 M) on Jan 30 2026.

• Operations

• In‑place occupancy Dec 31 2025: 98.0% (up 120 bps QoQ, 310 bps YoY).
• Committed occupancy Feb 25 2026: 98.6%.
• Lease renewals Q4 2025: ~1.2 MM sq ft at 24% rent spreads; full‑year: ~4.8 MM sq ft at 45% spreads.

• New leases Q4 2025: ~769,000 sq ft of vacant space.

• Green Bond Funding

• Total Green Bond proceeds allocated to eligible projects: $1.2 B (100% of 2027 bond, 100% of 2028 bond, 55.9% of 2029 bond).

• Moody’s provided second‑party opinion on 2029 Green Bond use‑of‑proceeds.

• Financing Activity

• NYSE delisting completed Dec 31 2025; Form 15F filed Jan 5 2026.
• Revolving credit facility maturity extended to Jan 22 2031 (Jan 22 2026).

• Pre‑payment of €50 M senior term loan on Feb 13 2026 with associated interest‑rate swap termination.

• Board Appointments

• Effective Feb 25 2026, Ms. Amber Choudhry and Mr. Jonathan Kelly appointed to the Board of Trustees.

• Two existing trustees (Mr. Peter Aghar, Ms. Sheila A. Murray) will not stand for re‑election at the June 2026 AGM.

• 2026 Outlook

• Forecast FFO per unit: $6.25–$6.40 (≈7% increase).
• Forecast AFFO per unit: $5.40–$5.55 (≈5% increase).
• Anticipated AFFO‑related capex: ~$40 M vs. $34 M in 2025.

• Constant‑currency same‑property NOI (cash basis) forecast: 5.5%–6.5% (four‑quarter average).

• Conference Call

• Date: Thursday, Feb 26 2026 at 11:00 a.m. ET; chaired by CEO Kevan Gorrie.

Notable Quotes

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