Automotive Properties REIT Reports 2026 Third Quarter Financial Results

– Acquisitions drive strong year-over-year growth of 19.9% in rental revenue, 18.6% in Cash NOI and 15.8% in AFFO –

TORONTO, Nov. 12, 2026 /CNW/ -- Automotive Properties Real Estate Investment Trust (TSX: APR.UN) ("Automotive Properties REIT" or the "REIT") today announced its financial results for the three-month ("Q3 2026") and nine-month ("YTD 2026") periods ended September 30, 2026.

"We continue to generate double-digit growth in rental revenue, cash NOI, and AFFO reflecting the positive impact of our property acquisitions during 2025 and to date in 2026, and our organic growth through contractual rent increases," said Milton Lamb, CEO of Automotive Properties REIT. "We remain focused on opportunities to expand our property portfolio in prime metropolitan markets in Canada and the U.S. to drive continued growth. Subsequent to quarter end, we further expanded our presence in the U.S. sunbelt through the acquisition of a long-term leased Tesla facility in the greater Greensboro area in North Carolina."  

Q3 2026 Highlights                              

• The REIT generated AFFO per Unit¹ of $0.260 (diluted) compared to $0.252 (diluted) for the three-month period ended September 30, 2025 ("Q3 2025").
• The REIT's AFFO payout ratio¹ reduced to 80.0% from 81.0% in Q3 2025.
• The REIT had a Debt to Gross Book Value ("Debt to GBV")² ratio 47.1% as at September 30, 2026, and $48.5 million of undrawn capacity under its Credit Facilities, cash on hand of $0.6 million and 11 unencumbered properties with an aggregate value of approximately $166.1 million.
• The Trustees approved an increase of approximately 2.0% to the REIT's annual cash distribution, from $0.822 per Unit to $0.839 per Unit. The monthly distribution increased to $0.0699 per Unit effective for the REIT's August 2026 cash distribution, which was paid on September 15, 2026 to Unitholders of record on August 31, 2026.
• On September 1, 2026, the REIT completed the sale of a 50% interest in its automotive dealership property located 9088 Jane Street in Vaughan, Ontario (the "Vaughan Property"), to a member of the Dilawri Group, with the REIT retaining the remaining 50% interest. The Dilawri Group acquired its 50% interest for a cash purchase price of $16.0 million, reflecting a premium to the REIT's IFRS value. The Vaughan Property is now tenanted by an affiliate of the Dilawri Group as a full-service Kia automotive dealership, under a 16-year, triple-net lease and is subject to a landlord redevelopment option.

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¹ AFFO per Unit is a non-IFRS measure and AFFO payout ratio is a non-IFRS ratio. See "Non-IFRS Financial Measures" at the end of this news release.

² Debt to GBV is a supplementary financial measure. See "Non-IFRS Financial Measures" at the end of this news release.

Subsequent Event

• On October 1, 2026, the REIT acquired an automotive property located in High Point (Greater Greensboro area), North Carolina (the "Tesla High Point Property") for a purchase price of approximately $30.0 million. The Tesla High Point Property is tenanted by Tesla under a long-term, net lease that includes contractual fixed annual rent increases with renewal options. The Tesla High Point Property consists of an approximately 50,000 square-foot sales, service and delivery center facility situated on approximately 5.98 acres of land. The REIT funded the purchase price primarily by drawing on its revolving credit facilities.

Financial Results Summary   

	Three months ended September 30,			Nine months ended September 30,
($000s, except per Unit amounts)	2026	2025	Change	2026	2025	Change
Rental revenue ^(1)	$30,458	$25,397	19.9 %	$89,759	$73,900	21.5 %
NOI ^(2)	25,168	21,136	19.1 %	74,513	62,206	19.8 %
Cash NOI ^(2)	24,854	20,959	18.6 %	73,443	61,711	19.0 %
Same Property Cash NOI ^(1) (2)	21,286	20,814	2.3 %	62,817	61,478	2.2 %
Net Income^(3)	34,831	8,958	288.8 %	74,725	29,656	152.0 %
Net Income and Other Comprehensive Income ^(3)	35,044	10,417	236.4 %	78,420	29,298	167.7 %
FFO ^(2)	15,075	12,904	16.8 %	45,568	38,331	18.9 %
AFFO ^(2)	14,735	12,721	15.8 %	44,460	37,724	17.9 %
Distributions per Unit	0.208	0.204	0.004	0.619	0.606	0.013
FFO per Unit - basic ^(2) (4)	0.273	0.262	0.011	0.826	0.780	0.046
FFO per Unit - diluted ^(2) (5)	0.266	0.255	0.011	0.804	0.759	0.045
AFFO per Unit - basic ^(2) (4)	0.267	0.259	0.008	0.806	0.768	0.038
AFFO per Unit - diluted ^(2) (5)	0.260	0.252	0.008	0.785	0.747	0.038
Ratios (%)
FFO payout ratio ^(2)	78.2 %	80.0 %	1.8 %	77.0 %	79.8 %	2.8 %
AFFO payout ratio ^(2)	80.0 %	81.0 %	1.0 %	78.9 %	81.1 %	2.2 %
Debt to GBV ^(6)	47.1 %	47.4 %	0.3 %	47.1 %	47.4 %	0.3 %

(1)	Rental revenue is based on rents from leases entered into with tenants, all of which are triple-net leases and include recoverable realty taxes and straight-line adjustments. Same Property Cash NOI is based on rental revenue for the same asset base having consistent gross leasable area in both periods.
(2)	NOI, Cash NOI, Same Property Cash NOI, FFO, AFFO, FFO per Unit, AFFO per Unit, FFO payout ratio and AFFO payout ratio are non-IFRS measures or non-IFRS ratios, as applicable. See "Non-IFRS Financial Measures" at the end of this news release. References to "Same Property" correspond to properties that the REIT owned in Q3 2025, thus removing the impact of acquisitions and dispositions.
(3)	Net Income and Net Income and Other Comprehensive Income for Q3 2026 includes changes in fair value adjustments of $0.9 million for Class B LP Units, Deferred Units ("DUs"), Income Deferred Units ("IDUs"), Performance Deferred Units ("PDUs") and Restricted Deferred Units ("RDUs"), $9.3 million for interest rate swaps and $9.6 million for investment properties. Please refer to the consolidated financial statements of the REIT and the notes thereto for additional information.
(4)	FFO per Unit and AFFO per Unit – basic is calculated by dividing the total FFO and AFFO by the amount of the total weighted average number of outstanding Units. The total weighted average number of Units outstanding – basic for Q3 2026 was 55,212,080.
(5)	FFO per Unit and AFFO per Unit – diluted is calculated by dividing the total FFO and AFFO by the amount of the total weighted average number of outstanding Units, DUs, IDUs, PDUs and RDUs granted to independent trustees and management of the REIT. The total weighted average number of Units outstanding (including Class B LP Units, DUs, IDUs, PDUs and RDUs) on a fully diluted basis for Q3 2026 was 56,700,554.
(6)	Debt to GBV is a supplementary financial measure. See "Non-IFRS Financial Measures" at the end of this news release.

Rental revenue in Q3 2026 increased by 19.9% to $30.5 million, compared to $25.4 million in Q3 2025. The increase in rental revenue reflected growth from properties acquired during and subsequent to Q3 2025 and contractual annual rent increases.

The REIT generated total Cash NOI of $24.9 million in Q3 2026, representing an increase of 18.6% compared to Q3 2025. The increase was primarily attributable to properties acquired during and subsequent to Q3 2025 and contractual rent increases. Same Property Cash NOI was $21.3 million in Q3 2026, representing an increase of 2.3% compared to Q3 2025. The increase was primarily attributable to contractual rent increases.

The REIT recorded net income and other comprehensive income of $35.0 million in Q3 2026, compared to $10.4 million in Q3 2025. The increase was primarily attributable to higher NOI, fair value adjustments on investment properties and fair value adjustments on interest rate swaps in Q3 2026 compared to Q3 2025, partially offset by higher interest costs.  

FFO in Q3 2026 increased 16.8% to $15.1 million, or $0.266 per Unit (diluted), compared to $12.9 million, or $0.255 per Unit (diluted), in Q3 2025. The increase reflected the impact of the properties acquired during and subsequent to Q3 2025 and contractual rent increases.

AFFO in Q3 2026 increased 15.8% to $14.7 million, or $0.260 per Unit (diluted), compared to $12.7 million, or $0.252 per Unit (diluted), in Q3 2025. The increase reflected the impact of the properties acquired during and subsequent to Q3 2025 and contractual rent increases. Straight-line rent adjustment is excluded from the calculation of AFFO.

Cash Distributions

For Q3 2026, the REIT declared and paid regular cash distributions of $11.5 million, or $0.208 per Unit, representing an AFFO payout ratio of 80.0%. The REIT's AFFO payout ratio was lower in Q3 2026 compared to the 81.0% AFFO payout ratio in Q3 2025, primarily due to the positive impact of the properties acquired during and subsequent to Q3 2025 and contractual rent increases, partially offset by the increase to the REIT's cash distributions that was effective for the REIT's August 2026 cash distribution, which was paid on September 15, 2026.

Liquidity and Capital Resources 

As at September 30, 2026, the REIT had a Debt to GBV ratio of 47.1%, $48.5 million of undrawn capacity under its revolving credit facilities, $0.6 million of cash on hand, and 11 unencumbered properties with an aggregate value of approximately $166.1 million. As at the date of this news release, the REIT has a Debt to GBV ratio of 47.1%, approximately $53.5 million of undrawn capacity under its revolving credit facilities, and 12 unencumbered properties with an aggregate value of approximately $196.1 million.

As at September 30, 2026, 76% of the REIT's debt was fixed with a weighted average interest rate of 4.53%, a weighted average interest rate swap term and mortgages remaining of 3.9 years, and a weighted average term to maturity of debt of 2.9 years.

Units Outstanding

As at September 30, 2026, there were 54,418,760 REIT Units and 833,333 Class B LP Units outstanding.

Outlook 

The REIT is subject to risks associated with inflation, interest rates, currency fluctuations and availability of capital. The REIT is actively monitoring the evolving trade tariff environment and other trade restrictions, and their impact on cross-border trade, material costs, and overall economic market conditions in Canada and the United States. The continued conflict in the Middle East has resulted in increased commodity prices and could lead to further significant market and other disruptions, including continued volatility in commodity prices and supply of energy resources. While the full extent and impact of these trade tariffs, trade restrictions and geopolitical events remains uncertain, the REIT is continuing to assess their potential effect on its business, property valuations and financial condition.

The Canadian and United States automotive and original equipment manufacturer dealership and service industry is highly fragmented, and the REIT expects continued consolidation over the mid-to-long term due to increased industry sophistication and growing capital requirements for owner operators, which encourages them to pursue increased economies of scale.

Financial Statements

The REIT's unaudited condensed consolidated interim financial statements and related Management's Discussion & Analysis ("MD&A") for Q3 2026 are available on the REIT's website at www.automotivepropertiesreit.ca and on SEDAR+ at www.sedarplus.ca.

Conference Call

Management of the REIT will host a conference call for analysts and investors on Friday, November 13, 2026 at 9:00 a.m. (ET). To join the conference call without operator assistance, participants can register at https://registrations.events/easyconnect/1368861/recsVXKI5GQgyyzks/ to receive an instant automated call back.

Dial-in numbers: Local [phone] / Canada toll free [phone] / U.S. toll free [phone]

Live webcast: http://www.automotivepropertiesreit.ca/investor-relations#events

To access a replay of the conference call dial [phone] or [phone], passcode: 1368861 #. The replay will be available until November 20, 2026.

About Automotive Properties REIT

Automotive Properties REIT is an unincorporated, open-ended real estate investment trust focused on owning and acquiring primarily income-producing automotive and other OEM dealership and service properties located in Canada and the United States. The REIT's portfolio currently consists of 96 income-producing commercial properties, representing approximately 3.5 million square feet of gross leasable area, in metropolitan markets across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Québec in Canada, and California, Ohio, Florida and North Carolina in the United States. Automotive Properties REIT is the only public vehicle in Canada focused on consolidating automotive and OEM dealership and service real estate properties. For more information, please visit: www.automotivepropertiesreit.ca.

Forward-Looking Information

This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects the REIT's current expectations regarding future events and in some cases can be identified by such terms as "will" and "expected". Forward-looking information includes the REIT's expectations with respect to the impact of changes in economic conditions, including changes in interest rates, currency fluctuation and the rate of inflation, and the impact of tariffs or other trade restrictions, including the impact of each of the foregoing on the REIT and its tenants. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risks & Uncertainties, Critical Judgments & Estimates" in the REIT's MD&A for the year ended December 31, 2025 and in the REIT's MD&A for the interim period ended September 30, 2026 and under "Risk Factors" in the REIT's annual information form dated March 4, 2026, which are available on the REIT's website at www.automotivepropertiesreit.ca and on SEDAR+ at www.sedarplus.ca. The REIT does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward-looking information speaks only as of the date of this news release.

Non-IFRS Financial Measures

This news release contains certain financial measures and ratios which are not defined under International Financial Reporting Standards ("IFRS") and may not be comparable to similar measures presented by other real estate investment trusts or enterprises. FFO, AFFO, FFO payout ratio, AFFO payout ratio, NOI, Cash NOI and Same Property Cash NOI are key measures of performance used by the REIT's management and real estate businesses. Debt to GBV, a supplementary financial measure, is a measure of financial position defined by agreements to which the REIT is a party. These measures, as well as any associated "per Unit" amounts, are not defined by IFRS and do not have standardized meanings prescribed by IFRS, and therefore should not be construed as alternatives to net income or cash flow from operating activities calculated in accordance with IFRS. The REIT believes that AFFO is an important measure of economic earnings performance and is indicative of the REIT's ability to pay distributions from earnings, while FFO, NOI, Cash NOI and Same Property Cash NOI are important measures of operating performance of real estate businesses and properties. The IFRS measurement most directly comparable to FFO, AFFO, NOI, Cash NOI and Same Property Cash NOI is net income. For reconciliations of NOI, FFO, AFFO and Cash NOI to net income and comprehensive income, please see the tables below. For further information regarding these non-IFRS measures and supplementary financial measures, please refer to Section 1 "General Information and Cautionary Statements – Non-IFRS Financial Measures" and Section 6 "Non-IFRS Financial Measures" in the REIT's Q3 2026 MD&A which is incorporated by reference herein and is available on the REIT's website at www.automotivepropertiesreit.ca and on SEDAR+ at www.sedarplus.ca.

Reconciliation of NOI, Cash NOI, FFO and AFFO

	Three Months Ended September 30,				Nine Months Ended September 30,
($000s, except per Unit amounts)	2026	2025	Variance		2026		2025	Variance
Calculation of NOI
Property revenue	$30,458	$25,397	$5,061		89,759		73,900	$15,859
Property costs	(5,290)	(4,261)	(1,029)		(15,246)		(11,694)	(3,552)
NOI (including straight‑line adjustments)	$25,168	$21,136	$4,032		74,513		62,206	$12,307
Adjustments:
Land lease payments	(125)	(99)	(26)		(369)		(198)	(171)
Straight‑line adjustment	(215)	(78)	(137)		(739)		(297)	(442)
Cash NOI	$24,854	$20,959	$3,895		73,443		61,711	$11,732
Reconciliation of net income to FFO and AFFO
Net income	$34,831	$8,958	$25,873		74,725		29,656	$45,069
Adjustments:
Change in fair value – Interest rate swaps	(9,289)	1,881	(11,170)		(10,014)		4,741	(14,755)
Distributions on Class B LP Units	172	57	115		514		57	457
Change in fair value – Class B LP Units and Unit-based compensation	(944)	(237)	(707)		1,183		527	656
Change in fair value -- investment properties	(9,631)	2,319	(11,950)		(20,642)		3,575	(24,217)
ROU asset net balance of depreciation/interest and lease payments	(64)	(74)	10		(198)		(225)	27
FFO	$15,075	$12,904	$2,171		$45,568		$38,331	$7,237
Adjustments:
Straight‑line adjustment	(215)	(78)	(137)		(739)		(297)	(3442)
Capital expenditure reserve	(125)	(105)	(20)		(369)		(310)	(59)
AFFO	$14,735	$12,721	$2,014		$44,460		$37,724	$6,736
Number of Units outstanding (including Class B LP Units)	55,252,093	49,950,446	2,301,647		55,252,093		49,950,446	5,301,647
Weighted average Units Outstanding -- basic	55,212,080	49,162,403	6,049,677		55,158,180		49,124,867	6,033,313
Weighted average Units Outstanding -- diluted	56,700,554	50,576,101	6,124,453		56,668,255		50,469,603	6,198,652
FFO per Unit – basic^(1)	$0.273	$0.262	$0.011		$0.826		$0.780	$0.056
FFO per Unit – diluted^(2)	$0.266	$0.255	$0.011		$0.804		$0.759	$0.045
AFFO per Unit – basic^(1)	$0.267	$0.259	$0.008		$0.806		$0.768	$0.038
AFFO per Unit – diluted^(2)	$0.260	$0.252	$0.008		$0.785		$0.747	$0.038
Distributions per Unit	$0.208	$0.204	­$0.004		$0.619		$0.606	$0.013
FFO payout ratio^(3)	78.2 %	80.0 %	1.8 %		77.0 %		79.8 %	2.8 %
AFFO payout ratio^(3)	80.0 %	81.0 %	1.0 %		78.9 %		81.1 %	2.2 %

(1)	Unit-based compensation consists of Deferred Units ("DUs"), Income Deferred Units ("IDUs"), Performance Deferred Units ("PDUs") and Restricted Deferred Units ("RDUs")
(2)	FFO and AFFO per Unit -- basic is calculated by dividing the total FFO and AFFO by the amount of the total weighted-average number of outstanding REIT Units and Class B LP Units.
(3)	FFO and AFFO per Unit -- diluted is calculated by dividing the total FFO and AFFO by the amount of the total weighted-average number of outstanding REIT Units, Class B LP Units and Unit-based compensation granted to independent trustees and management of the REIT.
(4)	Distributions per Unit, FFO payout ratio and AFFO payout ratio exclude the cash portion of a special distribution that was paid on January 6, 2025 to unitholders of record as at December 31, 2024.

Same Property Cash Net Operating Income

	Three Months Ended September 30,				Nine Months Ended September 30,
	2026	2025	Variance		2026		2025	Variance
Same property base rental revenue	$21,385	$20,913	$472		$63,114		$61,775	$1,339
Land lease payments	(99)	(99)	-		(298)		(298)	-
Same Property Cash NOI	$21,286	$20,814	$472		$62,817		$61,478	$1,339

SOURCE Automotive Properties Real Estate Investment Trust

For more information please contact: Bruce Wigle, Investor Relations, Bay Street Communications, Tel: [phone]; Milton Lamb, President & CEO, Automotive Properties REIT, Tel: [phone]; Andrew Kalra, CFO & Corporate Secretary, Automotive Properties REIT, Tel: [phone]