Automotive Properties REIT Reports Financial Results for Third Quarter of 2025

TORONTO, Nov. 13, 2025 /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 2025") and nine-month ("YTD 2025") periods ended September 30, 2025.

"We have had an active period in advancing strategic initiatives for our unitholders, including a distribution increase and completing approximately $150.9 million in property acquisitions. During Q3 2025, we deployed approximately $93.6 million for the acquisition of seven automotive properties, including five automotive dealerships and a collision repair centre in Greater Montreal and a Rivian-tenanted automotive property in Orlando, Florida. Subsequent to quarter end, we completed the acquisition of an additional four automotive dealership properties in Greater Montreal for a combined purchase price of approximately $57.3 million. We expect these property acquisitions to drive continued growth in our AFFO per Unit. In addition, we recently completed a bought deal equity offering and concurrent private placement for combined gross proceeds of approximately $57.1 million." said Milton Lamb, CEO of Automotive Properties REIT.

"While our results for the third quarter don't yet reflect the full quarter impact of our recent acquisitions, we still generated solid growth in property revenue, cash NOI, same property cash NOI and AFFO per Unit in the period. Supported by this strong financial performance, the Board of Trustees approved a 2.2% annual increase to our unitholder distributions in the quarter," continued Mr. Lamb. "This year marks the tenth anniversary since the completion of our initial public offering and, over that period, we have made significant progress in raising our industry profile and diversifying our tenant base, market presence and brand representation, while more than tripling the value of our investment properties. We have accelerated this progress over the last 12 months and further strengthened our position for growth through the acquisition of a total of 15 properties, including our entry into both the U.S. market and the heavy equipment dealership vertical." 

Q3 2025 Highlights                               

• The REIT generated AFFO per Unit[1] of $0.252 (diluted) and paid regular cash distributions of $0.204 per Unit (as defined below) in Q3 2025, representing an AFFO payout ratio¹ of approximately 81.0%. For the comparable three-month period ended September 30, 2024 ("Q3 2024"), the REIT generated AFFO per Unit of $0.233 (diluted) and paid regular cash distributions of $0.201 per Unit, representing an AFFO payout ratio of approximately 86.3%.
• The REIT had a Debt to Gross Book Value ("Debt to GBV")[2] ratio of 47.4% as at September 30, 2025, and had $21.0 million of undrawn capacity under its revolving credit facilities, $0.6 million of cash on hand, and 10 unencumbered properties with an aggregate value of approximately $153.8 million. As at the date of this news release, the REIT has a Debt to GBV ratio of approximately 45.7% with approximately $90.0 million of undrawn capacity under its revolving credit facilities, cash on hand of $7.5 million, and eight unencumbered properties with an aggregate value of approximately $117.0 million.
• On August 14, 2025, the REIT announced that its Board of Trustees had approved a 2.2% increase to the REIT's annual cash distribution, from $0.804 per Unit to $0.822 per Unit. The increase was effective for the REIT's August 2025 cash distribution, which was paid on September 15, 2025 to unitholders of record on August 29, 2025.
• On September 18, 2025, the REIT completed the acquisition of a Rivian-tenanted automotive property located in Orlando, Florida (the "Orlando Property") for a purchase price of approximately US$16.8 million (approximately C$23.2 million). The REIT funded the purchase price for the acquisition of the Orlando Property by drawing on its credit facilities.
• On September 25, 2025, REIT completed the acquisition of a portfolio of five automotive dealership properties and one collision centre property located in Île-Perrot, Québec, a suburb of Montreal (the "Île-Perrot Properties"), for a purchase price of approximately $70.5 million, subject to customary adjustments. The REIT funded the purchase price for the acquisition of the Île-Perrot Properties through the issuance of $10.0 million of Class B Limited Partnership Units ("Class B LP Units") by Automotive Properties Limited Partnership, the REIT's operating subsidiary, at a price per Class B LP Unit equal to $12.00, with the balance funded by drawing on the REIT's credit facilities.

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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 Events                       

• On October 16, 2025, the REIT completed the acquisition of a portfolio of three automotive dealership properties located in Dorval, Québec, a suburb of Montreal (the "Des Sources Properties"), for a purchase price of approximately $52.5 million. The REIT funded the purchase price for the acquisition of the Des Sources Properties through an interest-only $31.5 million vendor take-back mortgage with an affiliate of the vendor at an interest rate of 4.5% for a term of five years, with the balance funded by the REIT's credit facilities.
• On October 23, 2025, the REIT completed a "bought deal" public offering (the "Public Offering") of 3,070,000 units of the REIT ("REIT Units" and, together with the Class B LP Units, the "Units") at a price of $11.11 per REIT Unit (the "Offering Price") to a syndicate of underwriters for gross proceeds of approximately $34.1 million. Concurrently, the REIT completed a private placement of 1,442,844 REIT Units at the Offering Price to a member of the Dilawri Group (the "Dilawri Subscriber") for gross proceeds of approximately $16.0 million (together with the Public Offering, the "Offering"). On October 28, 2025, the REIT completed the sale of an additional 428,200 REIT Units at the Offering Price to the syndicate of underwriters pursuant to the partial exercise of an over-allotment option granted to the underwriters. Concurrently, the REIT also completed the sale of an additional 201,247 REIT Units at the Offering Price to the Dilawri Subscriber pursuant to the exercise of an option granted to the Dilawri Subscriber. The exercise of these options increased the total gross proceeds from the Offering to approximately $57.1 million.
• On October 29, 2025, the REIT completed the acquisition of the Honda Île-Perrot property in Île-Perrot, Québec for a purchase price of approximately $4.8 million. The REIT funded the purchase price for the acquisition of the Honda Île-Perrot property with cash on hand.

Financial Results Summary            

		Three months ended September 30,				Nine months ended September 30,
($000s, except per Unit amounts)		2025	2024		Change	2025		2024		Change
Rental revenue ^(1)	$25,397		$23,533		7.9 %	$73,900		$70,461		4.9 %
NOI ^(2)	21,136		19,897		6.2 %	62,206		59,564		4.4 %
Cash NOI ^(2)		20,959	19,680		6.5 %	61,711		58,724		5.1 %
Same Property Cash NOI ^(1) (2)		19,635	19,189		2.3 %	58,596		57,348		2.2 %
Net Income ^(3)		8,958	1,766		407.2 %	29,656		59,955		-48.4 %
Net Income and Other Comprehensive Income^(3)		10,417	1,766		489.9 %	29,298		59,955		-51.1 %
FFO ^(2)		12,904	11,920		8.3 %	38,331		36,004		6.5 %
AFFO ^(2)		12,721	11,690		8.8 %	37,724		35,127		7.4 %
Distributions per Unit		0.204	0.201		0.003	0.606		0.603		0.003
FFO per Unit - basic ^(2) (4)		0.262	0.243		0.019	0.780		0.734		0.046
FFO per Unit - diluted ^(2)^(5)		0.255	0.237		0.018	0.759		0.717		0.042
AFFO per Unit - basic ^(2) (4)	0.259		0.238		0.021	0.768		0.716		0.052
AFFO per Unit - diluted ^(2)^(5)	0.252		0.233		0.019	0.747		0.699		0.048
Ratios (%)
FFO payout ratio ^(2)		80.0 %	84.8 %		-4.8 %	79.8 %		84.1 %		-4.3 %
AFFO payout ratio ^(2)		81.0 %	86.3 %		-5.3 %	81.1 %		86.3 %		-5.2 %
Debt to GBV ^(6)		47.4 %	43.7 %		3.7 %	47.4 %		43.7 %		3.7 %

(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 2024, thus removing the impact of acquisitions and dispositions.
(3)	Net income and Net Income and Other Comprehensive Income for Q3 2025 includes changes in fair value adjustments of $0.2 million for Class B LP Units, Deferred Units ("DUs"), Income Deferred Units ("IDUs"), Performance Deferred Units ("PDUs") and Restricted Deferred Units ("RDUs"), $1.9 million for interest rate swaps and foreign exchange forward contracts and $2.3 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 2025 was 49,162,403.
(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 2025 was 50,576,101.
(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 2025 increased by 7.9% to $25.4 million, compared to $23.5 million in Q3 2024. The increase in rental revenue reflected growth from properties acquired subsequent to Q3 2024 and contractual annual rent increases, partially offset by the reduction of rent from the sale of the automotive dealership property located at 8210 and 8220 Kennedy Road and 7 and 13/15 Main Street, in Markham, Ontario (collectively, the "Kennedy Lands") in October 2024.

The REIT generated total Cash NOI of $21.0 million in Q3 2025, representing an increase of 6.5% compared to Q3 2024. The increase was primarily attributable to properties acquired subsequent to Q3 2024 and contractual rent increases, partially offset by the reduction of rent from the sale of the Kennedy Lands. Same Property Cash NOI was $19.6 million in Q3 2025, representing an increase of 2.3% compared to Q3 2024. The increase was primarily attributable to contractual rent increases.

The REIT recorded net income and other comprehensive income of $10.4 million in Q3 2025, compared to $1.8 million in Q3 2024. The increase was primarily due to changes in non-cash fair value adjustments for interest rate swaps and Class B LP Units, DUs, IDUs, PDUs and RDUs (collectively, "Unit-based compensation") in Q3 2025 compared to Q3 2024 and a $1.5 million foreign exchange gain. The impact of the movement in the traded value of the REIT Units resulted in an increase in fair value adjustment for Class B LP Units and Unit-based compensation of $0.2 million in Q3 2025, compared to a decrease of $2.8 million in Q3 2024.

FFO in Q3 2025 increased 8.3% to $12.9 million, or $0.255 per Unit (diluted), compared to $11.9 million, or $0.237 per Unit (diluted), in Q3 2024. The increase in FFO reflected the impact of the properties acquired subsequent to Q3 2024 and contractual rent increases, partially offset by the reduction of rent from the sale of the Kennedy Lands.

AFFO in Q3 2025 increased 8.8% to $12.7 million, or $0.252 per Unit (diluted), compared to $11.7 million, or $0.233 per Unit (diluted), in Q3 2024. The increase in AFFO reflected the impact of the properties acquired subsequent to Q3 2024 and contractual rent increases, partially offset by the reduction of rent from the sale of the Kennedy Lands. Straight-line rent adjustment is excluded from the calculation of AFFO.

Adjusted Cash Flow from Operations ("ACFO")[3] for Q3 2025 was $13.7 million, an increase of 16.5% compared to $11.7 million in Q3 2024. The increase was primarily attributable to properties acquired subsequent to Q3 2024 and contractual rent increases, partially offset by the reduction of rent from the sale of the Kennedy Lands.

Cash Distributions

For Q3 2025, the REIT declared regular cash distributions of $10.08 million, or $0.204 per Unit, and paid distributions of $9.95 million, representing an AFFO payout ratio of 81.0%. The AFFO payout ratio was lower in Q3 2025 compared to the 86.3% AFFO payout ratio in Q3 2024, primarily due to the positive impact of the properties acquired subsequent to Q3 2024 and contractual rent increases, partially offset by the reduction of rent from the sale of the Kennedy Lands and the increase to the REIT's unitholder distributions as described above.

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³  ACFO is a non-IFRS measure. See "Non-IFRS Financial Measures" at the end of this news release.

Liquidity and Capital Resources 

As at September 30, 2025, the REIT had a Debt to GBV ratio of 47.4%, $21.0 million of undrawn capacity under its revolving credit facilities, $0.6 million of cash on hand, and 10 unencumbered properties with an aggregate value of approximately $153.8 million. As at the date of this news release, the REIT has a Debt to GBV ratio of approximately 45.7% with approximately $90.0 million of undrawn capacity under its revolving credit facilities, cash on hand of $7.5 million, and eight unencumbered properties with an aggregate value of approximately $117.0 million.

As at September 30, 2025, 77% of the REIT's debt was fixed with a weighted average interest rate of 4.44%, a weighted average interest rate swap term and mortgages remaining of 4.0 years, and a weighted average term to maturity of debt of 2.4 years. As at the date of this news release, 84% of the REIT's debt is fixed, as the REIT used the net proceeds of the Offering to repay indebtedness under its credit facilities, including the debt incurred to fund the cash purchase prices of certain recently completed property acquisitions as described above.

Units Outstanding

As at September 30, 2025, there were 49,117,113 REIT Units and 833,333 Class B LP Units outstanding. As at the date of this news release, there are 54,259,404 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. While the full extent and impact of trade tariffs and trade restrictions 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 ("OEM") 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. The REIT plans to continue to grow its portfolio of properties leased to OEMs, OEM dealers and other automotive related uses.

Financial Statements

The REIT's unaudited condensed consolidated interim financial statements and related Management's Discussion & Analysis ("MD&A") for Q3 2025 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 14, 2025 at 9:00 a.m. (ET). To join the conference call without operator assistance, participants can register at https://registrations.events/easyconnect/3211052/recuxUqbKeawxEOR8/ to receive an instant automated call back. Alternatively, they can dial [phone] or [phone] to reach a live operator who will join them into the call. A live and archived webcast of the call will be accessible via the REIT's website at www.automotivepropertiesreit.ca.

To access a replay of the conference call, dial [phone] or [phone], passcode: 3211052 #. The replay will be available until November 21, 2025.

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 91 income-producing commercial properties, representing approximately 3.4 million square feet of gross leasable area, in metropolitan markets across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Québec in Canada, and Florida and Ohio 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.

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, and the impact of recently completed property acquisitions on the REIT's AFFO per Unit growth. 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, 2024 and in the REIT's MD&A for the interim period ended September 30, 2025 and under "Risk Factors" in the REIT's annual information form dated March 5, 2025, which are available on SEDAR+ (www.sedarplus.ca) and the REIT's website (www.automotivepropertiesreit.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, Same Property Cash NOI and ACFO 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. ACFO is a supplementary measure used by management to improve the understanding of the operating cash flow of the REIT. The IFRS measurement most directly comparable to ACFO is cash flow from operating activities. For reconciliations of NOI, FFO, AFFO and Cash NOI to net income and comprehensive income, and ACFO to cash flow from operating activities, 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 2025 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)	2025	2024	Variance		2025		2024	Variance
Calculation of NOI
Property revenue	$25,397	$23,533	$1,864		73,900		70,461	$3,439
Property costs	(4,261)	(3,636)	(625)		(11,694)		(10,897)	(797)
NOI (including straight–line adjustments)	$21,136	$19,897	$1,239		62,206		59,564	$2,642
Adjustments:
Land lease payments	(99)	(86)	(13)		(198)		(259)	61
Straight–line adjustment	(78)	(131)	53		(297)		(582)	285
Cash NOI	$20,959	$19,680	$1,279		61,711		58,724	$2,988
Reconciliation of net income to FFO and AFFO
Net income	$8,958	$1,766	$7,192		29,656		59,955	$(30,299)
Adjustments:
Change in fair value – Interest rate swaps and foreign exchange translation adjustment	1,881	12,485	(10,604)		4,741		9,763	(5,022)
Distributions on Class B LP Units	57	-	57		57		3,125	(3,068)
Change in fair value – Class B LP Units and Unit-based compensation	(237)	2,821	(3,058)		527		(7,514)	8,041
Change in fair value -- investment properties and investment properties held for sale	2,319	(5,074)	7,393		3,575		(29,105)	32,680
ROU asset net balance of depreciation/interest and lease payments	(74)	(78)	4		(225)		(220)	(5)
FFO	$12,904	$11,920	$984		$38,331		$36,004	$2,327
Adjustments:
Straight–line adjustment	(78)	(131)	53		(297)		(582)	285
Capital expenditure reserve	(105)	(99)	(6)		(310)		(295)	(15)
AFFO	$12,721	$11,690	$1,031		$37,724		$35,127	$2,597
Number of Units outstanding (including Class B LP Units)	49,950,446	49,090,142	860,304		49,950,446		49,090,142	860,304
Weighted average Units Outstanding -- basic	49,162,403	49,072,488	89,915		49,124,867		49,060,783	64,084
Weighted average Units Outstanding -- diluted	50,576,101	50,286,264	289,837		50,469,603		50,232,596	237,007
FFO per Unit – basic^(1)	$0.262	$0.243	$0.019		$0.780		$0.734	$0.046
FFO per Unit – diluted^(2)	$0.255	$0.237	$0.018		$0.759		$0.717	$0.042
AFFO per Unit – basic^(1)	$0.259	$0.238	$0.021		$0.768		$0.716	$0.052
AFFO per Unit – diluted^(2)	$0.252	$0.233	$0.019		$0.747		$0.699	$0.048
Distributions per Unit	$0.204	$0.201	­$0.003		$0.606		$0.603	$0.003
FFO payout ratio ^(3)	80.0 %	84.8 %	4.8 %		79.8 %		84.1 %	4.3 %
AFFO payout ratio ^(3)	81.0 %	86.3 %	5.3 %		81.1 %		86.3 %	5.2 %

(1)	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.
(2)	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.
(3)	FFO payout ratio and AFFO payout ratio excludes the cash portion of the special distribution paid to unitholders effective December 31, 2024.

Same Property Cash Net Operating Income

	Three Months Ended September 30,				Nine Months Ended September 30,
	2025	2024	Variance		2025		2024	Variance
Same property base rental revenue	$19,734	$19,289	$445		$58,893		$57,633	$1,261
Land lease payments	(99)	(99)	-		(298)		(285)	(13)
Same Property Cash NOI	$19,635	$19,189	$445		$58,596		$57,348	1,248

Reconciliation of Cash Flow from Operating Activities to ACFO 

	Three Months Ended  September 30,			Nine Months Ended September 30,
($000s)	2025	2024	Variance	2025	2024	Variance
Cash flow from operating activities	$19,032	$18,590	$442	$57,263	$57,029	$234
Change in non-cash working capital	1,203	(242)	1,445	1,153	(1,065)	2,218
Interest paid	(6,158)	(6,290)	132	(17,887)	(18,604)	717
Amortization of financing fees	(298)	(235)	(63)	(872)	(636)	(236)
Amortization of indemnification fees	(6)	(36)	30	(20)	(108)	88
Net interest expense and other financing charges in excess of interest paid	(12)	28	(40)	(64)	84	(148)
Capital expenditure reserve	(105)	(99)	(6)	(310)	(295)	(15)
ACFO	$13,656	$11,717	$1,939	$39,263	$36,405	$2,858
ACFO payout ratio	73.8 %	84.2 %	(10.4 %)	75.9 %	81.3 %	(5.4 %)

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]