PROREIT ANNOUNCES FOURTH QUARTER AND FISCAL YEAR 2025 RESULTS

Executive Summary

• PROREIT reported Q4 2025 and full‑year FY 2025 results, showing NOI up 9.6% YoY in the quarter and 8.4% for the year, with FFO increasing 14.3% (quarter) and 11.2% (year).
• Completed sale of 17 non‑core properties for $71.2 M and acquisition of seven industrial assets in Winnipeg for $101.9 M (including $40 M equity issuance), further shifting to a pure‑play industrial REIT.
• Portfolio occupancy stood at 95.4% (98.1% excluding one large vacancy); total debt‑to‑assets improved to 48.8% and Adjusted Debt/EBITDA ratio fell to 9.0×, enhancing balance‑sheet flexibility.

Key Details

• Financial Highlights
• Q4 2025 NOI: $16.1 M (↑9.6% YoY); FY 2025 NOI: $63.4 M (↑8.4%).
• Same‑Property NOI: $14.1 M (Q4) and $53.0 M (FY), driven by industrial growth (+9.1% Q4).
• FFO: $7.79 M (Q4, ↑14.3%) and $31.62 M (FY, ↑11.2%).
• AFFO payout ratio: 99.1% (Q4) vs. 96.1% prior year; FY ratio 94.5%.

• Total assets: $1.08 B (+8% YoY); total debt: $525.0 M.

• Portfolio Transactions

• Sold 17 non‑core properties (≈421,050 sq ft) for $71.2 M gross proceeds.
• Acquired seven industrial properties in Winnipeg (≈702,842 sq ft) for $101.9 M; $42.1 M funded via equity issuance at $6.20/unit to Parkit.

• Post‑year‑end: sold 50% interest in a retail property ($5.7 M net) and entered binding agreement to buy a 60,057 sq ft industrial building in Moncton for $12.3 M (financed via revolving credit & cash).

• Leasing Activity

• 80.1% of GLA maturing in 2025 renewed at +34.2% average spread; 68.2% of 2026‑maturing GLA renewed at +33.8% spread.

• Notable lease renewals: 45,000 sq ft industrial space in Moncton (+24% rent), 28,000 sq ft Winnipeg industrial lease (+12% rent).

• Balance Sheet Metrics

• Debt‑to‑assets reduced to 48.8% (down from 50.0%).
• Adjusted Debt/Annualized Adjusted EBITDA: 9.0× (improved from 9.2×).

• Weighted average lease term to maturity increased to 4.3 years.

• Distributions

• Declared monthly distribution of $0.0375 per trust unit for Q4 2025 ($0.45 annualized).

• Additional cash distributions announced for Jan 2026 and Mar 2026.

• Strategic Outlook

• Focus on organic growth and disciplined acquisitions to reach ~$2 B assets and 45% Adjusted Debt/GBV within 3‑5 years.
• Continued execution of industrial‑only strategy; upcoming acquisition in Moncton aligns with target markets.

Notable Quotes

“2025 was a defining year for PROREIT as we successfully completed our transition to a pure‑play industrial REIT…we increased NOI by 8.4% despite owning ten fewer properties, demonstrating the enhanced earnings profile of our industrial‑focused portfolio.” – Gordon Lawlor, President & CEO