PROREIT ANNOUNCES SECOND QUARTER RESULTS FOR FISCAL 2026
MONTREAL, Aug. 12, 2026 /CNW/ -- PRO Real Estate Investment Trust ("PROREIT") (TSX: PRV.UN) today reported its financial and operating results for the three months ended June 30, 2026 ("Q2" or "second quarter") and six-month period ended June 30, 2026.
Second Quarter of Fiscal 2026 Highlights
- Net operating income (NOI) increased by 6.5% year-over-year
- Same Property NOI* rose 3.3% year-over-year; industrial Same Property NOI* growth of 2.9%
- Funds from Operations* (FFO) increased by 6.1% year-over-year
- Total debt to total assets of 47.4% at June 30, 2026, compared to 50.6% at the same date last year
- Adjusted Debt to Gross Book Value* of 47.4% at June 30, 2026, compared to 50.7% at the same date last year
- Completed the previously announced acquisitions of two institutional-quality industrial portfolios comprising 17 properties in Québec City and Winnipeg totaling approximately 768,500 square feet of gross leasable area ("GLA") for $136.8 million (excluding closing costs) and a 100%-owned 60,057 square foot industrial property for $12.3 million (excluding closing costs) in Moncton, New Brunswick
- Subsequent to quarter-end, completed previously announced acquisition of a 100% interest in four industrial properties totaling approximately 164,900 square feet of GLA located in Winnipeg, Manitoba, for $21.7 million
- Completed $107.3 million equity financing including $83.3 million bought deal offering (the "Offering") and $24.0 million concurrent private placement (the "Private Placement")
- 82.6% of 2026 GLA renewed at positive average spread of 36.8%; 80.4% of industrial GLA maturing in 2026 renewed at positive average spread of 40.6%
- Occupancy rate at 95.0% at June 30, 2026 (including committed space), compared to 97.8% a year earlier
"We are pleased with our second-quarter growth, financial position and the positive momentum across the business," said Gordon Lawlor, President and Chief Executive Officer of PROREIT.
"Revenue, NOI and FFO were all up year over year, and Same Property NOI continued to grow despite the impact of two previously disclosed vacancies. Year to date, we have acquired 22 high-quality industrial properties in robust markets for approximately $170.8 million and completed more than $107 million in equity financings, demonstrating strong support for our strategy while providing additional liquidity to advance our growth plan.
"We also continued to prioritize balance sheet strength and financial flexibility and as of today, successfully refinanced or secured commitments for all mortgages maturing in 2026.
"With strong leasing spreads and continued demand for well-located small and mid-bay industrial properties, the fundamentals of our portfolio remain solid across Canada. In Halifax, Amazon's recently announced massive operations hub is now under construction in Burnside Industrial Park, where we are one of the largest landlords, further reinforcing the strategic value of this key industrial node. Combined with the anticipated boom in federal defence spending expected to flow into Nova Scotia over the coming decade, these significant investments provide additional tailwinds for our portfolio.
"Against this favourable backdrop, we remain focused on disciplined growth and creating new opportunities to generate long-term value for our unitholders," concluded Mr. Lawlor.
* Measures followed by the suffix "*" in this press release are non-IFRS measures. See "Non-IFRS Measures". |
Financial Results
Table 1 - Financial Highlights
(CAD $ thousands except unit, per unit amounts and unless otherwise stated) | 3 Months Ended June 30 2026 | 3 Months Ended June 30 2025 | 6 Months Ended June 30 2026 | 6 Months Ended June 30 2025 |
Financial data | ||||
Property revenue | $ 26,953 | $ 25,032 | $ 53,849 | $ 50,769 |
Net operating income ("NOI") | $ 16,450 | $ 15,444 | $ 32,531 | $ 30,314 |
Same Property NOI (1) | $ 14,254 | $ 13,801 | $ 28,347 | $ 27,043 |
Net income and comprehensive income | $ 2,023 | $ 5,244 | $ 24,552 | $ 20,277 |
Net income and comprehensive income per Unit - Basic (2) | $ 0.0284 | $ 0.0860 | $ 0.3540 | $ 0.3334 |
Net income and comprehensive income per Unit - Diluted (2) | $ 0.0282 | $ 0.0852 | $ 0.3510 | $ 0.3308 |
Total Unitholders' equity | $ 608,762 | $ 493,934 | $ 608,762 | $ 493,934 |
NAV per Unit (2) | $ 7.58 | $ 7.69 | $ 7.58 | $ 7.69 |
Total assets | $ 1,286,525 | $ 1,110,963 | $ 1,286,525 | $ 1,110,963 |
Total debt | $ 609,198 | $ 562,426 | $ 609,198 | $ 562,426 |
Total debt to total assets | 47.4 % | 50.6 % | 47.4 % | 50.6 % |
Adjusted Debt to Gross Book Value (1) | 47.4 % | 50.7 % | 47.4 % | 50.7 % |
Interest Coverage Ratio (1) | 2.6x | 2.6x | 2.7x | 2.6x |
Debt Service Coverage Ratio (1) | 1.7x | 1.6x | 1.7x | 1.6x |
Adjusted Debt to Annualized Adjusted EBITDA Ratio (1) | 10.0x | 9.8x | 10.2x | 10.0x |
Weighted average interest rate on mortgage debt | 4.1 % | 3.9 % | 4.1 % | 3.9 % |
Net cash flows provided from operating activities | $ 10,646 | $ 6,898 | $ 20,621 | $ 14,338 |
Funds from Operations (FFO) (1) | $ 8,463 | $ 7,974 | $ 17,199 | $ 15,874 |
Basic FFO per unit (1)(2) | $ 0.1188 | $ 0.1307 | $ 0.2480 | $ 0.2610 |
Diluted FFO per unit (1)(2) | $ 0.1178 | $ 0.1296 | $ 0.2459 | $ 0.2590 |
Adjusted Funds from Operations (AFFO) (1) | $ 8,102 | $ 7,640 | $ 15,953 | $ 14,910 |
Basic AFFO per unit (1)(2) | $ 0.1137 | $ 0.1253 | $ 0.2300 | $ 0.2452 |
Diluted AFFO per unit (1)(2) | $ 0.1128 | $ 0.1242 | $ 0.2281 | $ 0.2433 |
AFFO Payout Ratio – Basic (1) | 98.9 % | 89.8 % | 97.8 % | 91.8 % |
AFFO Payout Ratio – Diluted (1) | 99.7 % | 90.6 % | 98.6 % | 92.5 % |
(1) Represents a non-IFRS measure. See "Non-IFRS Measures". |
(2) Total basic units consist of trust units of PROREIT and Class B LP Units (as defined herein). Total diluted units also include deferred trust units and restricted trust units issued under PROREIT's long-term incentive plan. |
At June 30, 2026, PROREIT owned 122 properties (including a 50% ownership interest in 39 investment properties), compared to 118 investment properties (including a 50% ownership interest in 41 investment properties) at June 30, 2025. At June 30, 2026, total assets amounted to $1.29 billion, representing a 15.8% increase from $1.11 billion on June 30, 2025.
As at June 30, 2026, the industrial segment represented 93.3% of total GLA and 91.8% of base rent, compared with 87.9% and 83.5%, respectively, as at June 30, 2025. Atlantic Canada accounted for 40% of base rent at June 30, 2026, down from 48.7% at June 30, 2025, while Manitoba and Western Canada increased to 19.1% from 17.6%.
For the three-month period ended June 30, 2026:
- Property revenue amounted to $27.0 million, an increase of $1.9 million or 7.7%, compared to the same prior year period. The increase was mainly driven by contractual rent increases, higher rental rates on lease renewals and new leases, and contributions from four additional properties.
- Net operating income (NOI) amounted to $16.5 million for the quarter, compared to $15.4 million in the second quarter of 2025, an increase of 6.5%, which was mainly driven by the same factors impacting property revenue.
- Same Property NOI*, which represented 97 properties out of the 122 properties in the portfolio, totalled $14.3 million for the quarter, an increase of $0.5 million or 3.3%, compared to the same quarter last year. The increase was primarily driven by contractual increases in rent and higher rental rates on lease renewals and new leases despite a decrease in average occupancy, due mainly to vacancies at one industrial property in Quebec and one in Ontario. Same Property NOI* for industrial assets rose by $0.4 million or 2.9% for the quarter, compared to the same period in 2025.
- FFO* was $8.5 million, up $0.5 million or 6.1% from $8.0 million in the second quarter of 2025. The increase was mainly driven by increases in contractual base rent, higher rates on renewals, and higher rental rates on new leases, offset by an increase in interest and financing costs.
- AFFO Payout Ratio – Basic* stood at 98.9%, compared to 89.8% in the second quarter of 2025. The year-over-year increase primarily reflects the lag between the full deployment of the net proceeds of the Offering and Private Placement and the timing of the related acquisitions, as well as an increase in interest and financing costs. This was offset by increases in contractual base rent, higher rates on renewals, and higher rental rates on new leases compared to the same period in 2025.
For the six-month period ended June 30, 2026:
- Property revenue amounted to $53.8 million, an increase of $3.1 million or 6.1% compared to the same prior year period. The increase is driven by the same factors noted for the three-month period above.
- Net operating income ("NOI") amounted to $32.5 million, compared to $30.3 million in the same period in 2025, an increase of 7.3% driven by the same factors noted for the three-month period above.
- Same Property NOI* totalled $28.3 million, an increase of $1.3 million or 4.8%, compared to the same prior year period, primarily attributable to contractual increases in rent, higher rental rates on lease renewals and higher rental rates on new leases despite a decrease in overall average occupancy for the six-month period ended June 30, 2026. Same Property NOI* for industrial assets rose by $1.2 million or 4.8% for the period, compared to the same period in 2025.
- FFO* reached $17.2 million, compared to $15.9 million in the first half of 2025, an increase of $1.3 million or 8.3%. The increase was mainly driven by the same factors noted for the three-month period above.
- AFFO Payout Ratio – Basic* was 97.8%, compared to 91.8% for the same prior year period, an increase driven by the same factors noted for the three-month period above.
Sustained Operating Environment
As of June 30, 2026, PROREIT's portfolio comprised 122 investment properties, totalling 7.2 million square feet of GLA, with a weighted average lease term to maturity (WALT) of 4.3 years, compared to 4.5 years at the same date last year.
The occupancy rate of the portfolio stood at 95.0% as at June 30, 2026 (including committed space), compared to 97.8% at the same date last year. The decrease in average occupancy for the three-month period ended June 30, 2026 compared to the same period in 2025 was largely impacted by a 100% vacancy in the quarter of a 176,070 square foot building in Saint-Hyacinthe (100% leased for the three-month period ended June 30, 2025) and an 80,915 square foot space that went vacant on April 1, 2026 in Woodstock, Ontario.
Excluding these specific vacancies, portfolio occupancy (including committed space) as at June 30, 2026 would be approximately 97.4%.
On May 6, 2026, PROREIT entered into a binding lease for approximately 74,250 square feet of its 176,070-square-foot industrial building located at 6375 Picard Street, in Saint-Hyacinthe, Quebec to a new tenant with a 15-year term at market rent, with rent commencement July 1, 2026. The new base rent on the 74,250 square feet (42.0% of the total property GLA), represents an increase of over 122% compared to the rent paid by the previous tenant for the same GLA during their 5-year lease term.
As of the date of this press release, approximately 82.6% of GLA maturing in 2026 has been renewed at 36.8% positive average spread.
Portfolio Transactions
In the second quarter of 2026, PROREIT completed the following portfolio transactions:
On April 23, 2026, PROREIT completed the previously announced acquisition of a 100% interest in a newly built industrial building located at 1245 Aviation Avenue in Moncton, New Brunswick for a total purchase price of $12.3 million (excluding closing costs) representing a going in capitalization rate of approximately 7.0%. Built in 2024, the fully leased single-tenant industrial building comprises approximately 60,057 square feet of GLA and features a 32-foot clear warehouse height and modern loading configuration. The acquisition was financed through a combination of draws on the revolving credit facility and cash on hand from the Dartmouth, Nova Scotia property sale completed on February 17, 2026.
On June 26, 2026, PROREIT completed the previously announced acquisition of a 100% interest in a portfolio of four industrial properties in Winnipeg, Manitoba for approximately $24 million (excluding closing costs). The portfolio comprises approximately 159,200 square feet of GLA with a going in capitalization rate of approximately 6.7%. The acquisition was financed with cash from a new $15.6 million eight-year mortgage bearing interest at 4.95% per annum and cash on hand of approximately $8.4 million, received from the Offering and Private Placement.
On June 30, 2026, PROREIT completed the previously announced acquisition of a 100% interest in a portfolio of 13 industrial properties in Quebec City, Quebec for approximately $112.8 million (excluding closing costs). The portfolio comprises approximately 609,300 square feet of GLA with a going in capitalization rate of approximately 6.8%. The acquisition was financed with cash from a new four-year $71 million non-revolving secured term loan, cash from a new $2.8 million demand loan and cash on hand of approximately $39.1 million received from the Offering and Private Placement.
Subsequent to quarter-end, PROREIT continued to execute on its growth strategy.
On July 15, 2026, PROREIT completed its previously announced acquisition of a 100% interest in four industrial properties totaling 164,900 square feet of GLA located in Winnipeg, Manitoba, for $21.7 million (excluding closing costs). The going in capitalization rate was approximately 6.8%. The acquisition was financed with cash from a new eight-year mortgage of approximately $14.1 million bearing interest at 4.95%, and approximately $7.6 million of cash on hand from the net proceeds of the Offering and Private Placement.
On August 6, 2026, PROREIT completed the sale of one retail property located in Bathurst, New Brunswick, totalling approximately 14,750 square feet of GLA for gross proceeds of $1.4 million (excluding closing costs). PROREIT intends to use the net proceeds for general business and working capital purposes.
Financial Position
Total debt (current and non-current) was $609.2 million at June 30, 2026, compared to $562.4 million at June 30, 2025.
During the second quarter:
- On May 7, 2026, PROREIT repaid a mortgage of approximately $1.2 million maturing in January 2028.
- On May 25, 2026, PROREIT obtained a $29.0 million seven-year mortgage bearing interest at 4.83% per annum. Net proceeds were used to repay approximately $15 million of PROREIT's revolving credit facility, repay two mortgages of approximately $12.8 million maturing in May 2026, and the balance was used for general business and working capital purposes.
- On June 4, 2026, PROREIT refinanced $62.7 million of mortgages and a term loan that came due at various dates in June 2026 with two non-revolving credit facilities in the aggregate amount of $77 million.
- On June 16, 2026, PROREIT repaid a mortgage of approximately $6.2 million that matured in June 2026.
- On June 17, 2026, PROREIT repaid two mortgages of approximately $4.1 million maturing in November 2026.
Subsequent to quarter-end:
- On July 21, 2026, PROREIT received a commitment for a 1-year renewal on a first and second mortgage in the approximate amount of $38.8 million maturing in September 2026 secured by a property in Ottawa, Ontario. The mortgage will be at fixed term market rates.
- On July 30, 2026, PROREIT completed the refinancing of five mortgages in the approximate amount of $32.9 million maturing in July 2026. The new $40.4 million seven-year mortgages bear annual interest at 4.98%.
Equity offerings:
On June 10, 2026, PROREIT completed the Offering under which it issued trust units of PROREIT ("Units") on a bought deal basis at a price of $6.50 per Unit (the "Offering Price") resulting in 12,822,500 Units being issued for total gross proceeds of $83.3 million, including 1,672,500 Units issued pursuant to the full exercise of the over-allotment option.
Concurrently with the closing of the Offering, PROREIT completed the Private Placement pursuant to which it issued an aggregate of 3,693,670 Units at the Offering Price for total gross proceeds of $24.0 million, of which 2,924,439 Units were issued to Collingwood Investments Incorporated, a member of the Bragg Group of Companies, and 769,231 Units were issued to Parkit Enterprise Inc. Collingwood Investments Incorporated and Parkit Enterprise Inc. received a capital commitment fee equal to 2% of the gross proceeds of their portion of the Private Placement upon closing.
At June 30, 2026, mortgage maturities amounted to $71.7 million for 2026.
As previously noted, subsequent to quarter end, approximately $32.9 million of maturing debt was renewed with $40.4 million of new mortgages and approximately $38.8 million of maturing debt was committed to renew for 1 year resulting in all 2026 mortgage renewals being completed or committed for the year.
Mortgage maturities amounted to $55.0 million for 2027 and $66.8 million for 2028, with a weighted average interest rate on these expiring maturities of 4.8% for 2027 and 3.5% for 2028.
Total debt to total assets was 47.4% at June 30, 2026, compared to 50.6% at June 30, 2025.
Adjusted Debt to Gross Book Value* was 47.4% at June 30, 2026, compared to 50.7% at June 30, 2025.
Adjusted Debt to Annualized Adjusted EBITDA Ratio* was 10.0x at June 30, 2026, compared to 9.8x at June 30, 2025 impacted by the cash deployment timing of the Offering and Private Placement.
Sustainability
PROREIT will release its 2025 Sustainability Report, which highlights the ongoing commitments, strategy and accomplishments made to advance the environmental, social and governance (ESG) aspects of the organization, in the coming weeks. The full report will be available in the Sustainability section of PROREIT's website at https://proreit.ca/en/about/sustainability/.
Distributions
Distributions to unitholders of $0.0375 per trust unit of PROREIT were declared monthly during the three months ended June 30, 2026, representing distributions of $0.45 per unit on an annualized basis. Equivalent distributions are paid on the Class B limited partnership units of PRO REIT Limited Partnership ("Class B LP Units"), a subsidiary of PROREIT.
On July 22, 2026, PROREIT announced a cash distribution of $0.0375 per trust unit for the month of July 2026. The distribution is payable on August 17, 2026 to unitholders of record as at July 31, 2026.
Strategy
PROREIT remains focused on the successful execution of its strategy for growth by expanding the portfolio organically and through disciplined acquisition, while optimizing its balance sheet and capital allocation. Having successfully completed its transition to a pure-play industrial real estate investment trust, PROREIT is focused on strengthening its position as a prominent Canadian light industrial real estate investment trust in strong primary and secondary markets and on delivering long-term, sustainable value for its stakeholders. In the medium-term, PROREIT is targeting goals of $2 billion in assets and 45% Adjusted Debt to Gross Book Value* in the next three to five years. These medium-term goals are based on PROREIT's current business plan and strategies and are not intended to be a forecast of future results. See "Forward-Looking Statements".
Investor Conference Call and Webcast Details
PROREIT will hold a conference call to discuss its second quarter results for Fiscal 2026 on August 13, 2026 at 9:00 a.m. EDT. There will be a question period reserved for financial analysts. To access the conference call, please dial 1-800-990-4777 or 514-400-3794, conference id: 23723.
A recording of the call will be available until August 20, 2026 by dialing 1-888-660-6345 or 1-289-819-1450 and using access code: 23723 #
The conference call will also be accessible via live webcast on PROREIT's website at www.proreit.com or at https://app.webinar.net/evMjBNbBmRz
About PROREIT
Founded in 2013, PROREIT (TSX: PRV.UN) is a Canadian industrial real estate investment trust that owns and operates a portfolio of high-quality properties. With a presence in strong primary and secondary Canadian markets, PROREIT is committed to delivering stable cash flow, disciplined growth and long-term value for its unitholders.
For more information on PROREIT, please visit the website at: https://proreit.com.
Non-IFRS Measures
PROREIT's consolidated financial statements are prepared in accordance with IFRS® Accounting Standards ("IFRS"), as issued by the International Accounting Standards Board. In addition to reported IFRS measures, industry practice is to evaluate real estate entities giving consideration, in part, to certain non-IFRS financial measures, non-IFRS ratios and other specified financial measures (collectively, "non-IFRS measures"). Without limitation, measures followed by the suffix "*" in this press release are non-IFRS measures.
As a complement to results provided in accordance with IFRS, PROREIT discloses and discusses in this press release (i) certain non-IFRS financial measures, including: Adjusted Debt, adjusted earnings before interest, tax, depreciation and amortization ("Adjusted EBITDA"); adjusted funds from operations ("AFFO"); annualized adjusted earnings before interest, tax, depreciation and amortization ("Annualized Adjusted EBITDA"); funds from operations ("FFO"); gross book value ("Gross Book Value"); net asset value ("NAV") and Same Property NOI and (ii) certain non-IFRS ratios, including: Adjusted Debt to Annualized Adjusted EBITDA Ratio; Adjusted Debt to Gross Book Value; AFFO Payout Ratio – Basic; AFFO Payout Ratio – Diluted; Basic AFFO per Unit; Diluted AFFO per Unit; Basic FFO per Unit; Diluted FFO per Unit; Debt Service Coverage Ratio; Interest Coverage Ratio; and NAV per Unit. These non-IFRS measures are not defined by IFRS and do not have a standardized meaning under IFRS. PROREIT's method of calculating these non-IFRS measures may differ from other issuers and may not be comparable with similar measures presented by other income trusts or issuers. PROREIT has presented such non-IFRS measures and ratios as management believes they are relevant measures of PROREIT's underlying operating and financial performance. For information on the most directly comparable financial measure disclosed in the primary financial statements of PROREIT, composition of the non-IFRS measures, a description of how PROREIT uses these measures and an explanation of how these measures provide useful information to investors, refer to the "Non-IFRS Measures" section of PROREIT's management's discussion and analysis for the three and six months ended June 30, 2026, dated August 13, 2026, available on PROREIT's SEDAR+ profile at www.sedarplus.ca, which is incorporated by reference into this press release. As applicable, the reconciliations for each non-IFRS measure are outlined below. Non-IFRS measures should not be considered as alternatives to net income, net cash flows provided by operating activities, cash and cash equivalents, total assets, total equity, or comparable metrics determined in accordance with IFRS as indicators of PROREIT's performance, liquidity, cash flows and profitability.
Table 2 - Reconciliation of net operating income to net income and comprehensive income
(CAD $ thousands) | 3 Months Ended June 30 2026 | 3 Months Ended June 30 2025 | 6 Months Ended June 30 2026 | 6 Months Ended June 30 2025 |
Net operating income | $ 16,450 | $ 15,444 | $ 32,531 | $ 30,314 |
General and administrative expenses | 1,336 | 1,371 | 2,734 | 2,664 |
Long-term incentive plan expense | 1,722 | 867 | 1,548 | 912 |
Depreciation of property and equipment | 148 | 150 | 303 | 307 |
Amortization of intangible assets | 62 | 62 | 123 | 123 |
Interest and financing costs | 6,137 | 5,847 | 12,028 | 11,597 |
Distributions - Class B LP Units | 435 | 235 | 871 | 370 |
Fair value adjustment - Class B LP Units | 3,020 | (651) | 1,936 | (915) |
Fair value adjustment - investment properties | 1,364 | 1,598 | (10,737) | (5,224) |
Fair value adjustment - derivative financial instruments | 436 | 1,085 | (329) | 946 |
Other income | (1,156) | (1,159) | (2,175) | (2,076) |
Other expenses | 736 | 658 | 1,407 | 1,127 |
Debt settlement costs | 187 | 137 | 270 | 206 |
Net income and comprehensive income | $ 2,023 | $ 5,244 | $ 24,552 | $ 20,277 |
Table 3 - Reconciliation of Same Property NOI to net operating income (as reported in the consolidated financial statements)
(CAD $ thousands) | 3 Months Ended June 30 2026 | 3 Months Ended June 30 2025 | 6 Months Ended June 30 2026 | 6 Months Ended June 30 2025 |
Property revenue | $ 26,953 | $ 25,032 | $ 53,849 | $ 50,769 |
Property operating expenses | 10,503 | 9,588 | 21,318 | 20,455 |
NOI (net operating income) as reported in the financial statements | 16,450 | 15,444 | 32,531 | 30,314 |
Straight-line rent adjustment | (283) | (179) | (520) | (338) |
NOI after straight-line rent adjustment | 16,167 | 15,265 | 32,011 | 29,976 |
NOI sourced from: | ||||
Acquisitions | (1,911) | (97) | (3,603) | (98) |
Dispositions | (2) | (1,367) | (61) | (2,835) |
Same Property NOI (1) | $ 14,254 | $ 13,801 | $ 28,347 | $ 27,043 |
Number of same properties | 97 | 97 | 97 | 97 |
(1) Represents a non-IFRS measure. See "Non-IFRS Measures". |
Table 4 - Summary of Same Property NOI by asset class
(CAD $ thousands) | 3 Months Ended June 30 2026 | 3 Months Ended June 30 2025 | 6 Months Ended June 30 2026 | 6 Months Ended June 30 2025 |
Industrial | $ 12,901 | $ 12,541 | $ 25,706 | $ 24,530 |
Retail | 899 | 822 | 1,784 | 1,640 |
Office | 454 | 438 | 857 | 873 |
Same Property NOI (1) | $ 14,254 | $ 13,801 | $ 28,347 | $ 27,043 |
(1) Represents a non-IFRS measure. See "Non-IFRS Measures". |
Table 5 - Reconciliation of AFFO and FFO to net income and comprehensive income
(CAD $ thousands except unit, per unit amounts and unless otherwise stated) | 3 Months Ended June 30 2026 | 3 Months Ended June 30 2025 | 6 Months Ended June 30 2026 | 6 Months Ended June 30 2025 |
Net income and comprehensive income for the period | $ 2,023 | $ 5,244 | $ 24,552 | $ 20,277 |
Add: | ||||
Long-term incentive plan | 1,123 | 401 | 783 | 297 |
Distributions - Class B LP Units | 435 | 235 | 871 | 370 |
Fair value adjustment - investment properties | 1,364 | 1,598 | (10,737) | (5,224) |
Fair value adjustment - Class B LP Units | 3,020 | (651) | 1,936 | (915) |
Fair value adjustment - derivative financial instrument | 436 | 1,085 | (329) | 946 |
Amortization of intangible assets | 62 | 62 | 123 | 123 |
FFO (1) | $ 8,463 | $ 7,974 | $ 17,199 | $ 15,874 |
Deduct: | ||||
Straight-line rent adjustment | $ (283) | $ (179) | $ (520) | $ (338) |
Maintenance capital expenditures | (159) | (99) | (337) | (213) |
Stabilized leasing costs | (1,200) | (1,118) | (2,391) | (2,146) |
Add: | ||||
Long-term incentive plan | 599 | 466 | 765 | 615 |
Amortization of financing costs | 399 | 364 | 775 | 723 |
Accretion expense - Convertible Debentures | 96 | 95 | 192 | 189 |
Debt settlement costs | 187 | 137 | 270 | 206 |
AFFO (1) | $ 8,102 | $ 7,640 | $ 15,953 | $ 14,910 |
Basic FFO per unit (1)(2) | $ 0.1188 | $ 0.1307 | $ 0.2480 | $ 0.2610 |
Diluted FFO per unit (1)(2) | $ 0.1178 | $ 0.1296 | $ 0.2459 | $ 0.2590 |
Basic AFFO per unit (1)(2) | $ 0.1137 | $ 0.1253 | $ 0.2300 | $ 0.2452 |
Diluted AFFO per unit (1)(2) | $ 0.1128 | $ 0.1242 | $ 0.2281 | $ 0.2433 |
Distributions declared per Unit and Class B LP unit | $ 0.1125 | $ 0.1125 | $ 0.2250 | $ 0.2250 |
AFFO Payout Ratio – Basic (1) | 98.9 % | 89.8 % | 97.8 % | 91.8 % |
AFFO Payout Ratio – Diluted (1) | 99.7 % | 90.6 % | 98.6 % | 92.5 % |
Basic weighted average number of units (2)(3) | 71,243,107 | 60,989,393 | 69,347,924 | 60,813,130 |
Diluted weighted average number of units (2)(3) | 71,849,563 | 61,522,501 | 69,939,283 | 61,292,594 |
(1) Represents a non-IFRS measure. See "Non-IFRS Measures". |
(2) FFO and AFFO per unit is calculated as FFO or AFFO, as the case may be, divided by the total of the weighted average number of basic or diluted units, as applicable, added to the weighted average number of Class B LP Units outstanding during the period. |
(3) Total basic units consist of trust units and Class B LP Units. Total diluted units also includes deferred trust units and restricted trust units issued under PROREIT's long-term incentive plan. |
Table 6 - Reconciliation of Adjusted EBITDA to net income and comprehensive income
(CAD $ thousands) | 3 Months Ended June 30 2026 | 3 Months Ended June 30 2025 | 6 Months Ended June 30 2026 | 6 Months Ended June 30 2025 |
Net income and comprehensive income | $ 2,023 | $ 5,244 | $ 24,552 | $ 20,277 |
Interest and financing costs | 6,137 | 5,847 | 12,028 | 11,597 |
Depreciation of property and equipment | 148 | 150 | 303 | 307 |
Amortization of intangible assets | 62 | 62 | 123 | 123 |
Fair value adjustment - Class B LP Units | 3,020 | (651) | 1,936 | (915) |
Fair value adjustment - investment properties | 1,364 | 1,598 | (10,737) | (5,224) |
Fair value adjustment - derivative financial instrument | 436 | 1,085 | (329) | 946 |
Distributions - Class B LP Units | 435 | 235 | 871 | 370 |
Straight-line rent | (283) | (179) | (520) | (338) |
Long-term incentive plan expense | 1,722 | 867 | 1,548 | 912 |
Debt settlement costs | 187 | 137 | 270 | 206 |
Adjusted EBITDA (1) | $ 15,251 | $ 14,395 | $ 30,045 | $ 28,261 |
Annualized Adjusted EBITDA (1) | $ 61,004 | $ 57,580 | $ 60,090 | $ 56,522 |
(1) Represents a non-IFRS measure. See "Non-IFRS Measures". |
Table 7 - Calculation of Adjusted Debt to Annualized Adjusted EBITDA Ratio
(CAD $ thousands) | 3 Months Ended June 30 2026 | 3 Months Ended June 30 2025 | 6 Months Ended June 30 2026 | 6 Months Ended June 30 2025 |
Adjusted Debt (1) | $ 612,101 | $ 566,042 | $ 612,101 | $ 566,042 |
Adjusted EBITDA (1) | $ 15,251 | $ 14,395 | $ 30,045 | $ 28,261 |
Annualized Adjusted EBITDA (1) | $ 61,004 | $ 57,580 | $ 60,090 | $ 56,522 |
Adjusted Debt to Annualized Adjusted EBITDA Ratio (1) | 10.0x | 9.8x | 10.2x | 10.0x |
(1) Represents a non-IFRS measure. See "Non-IFRS Measures". |
Table 8 - Calculation of the Interest Coverage Ratio
(CAD $ thousands) | 3 Months Ended June 30 2026 | 3 Months Ended June 30 2025 | 6 Months Ended June 30 2026 | 6 Months Ended June 30 2025 |
Adjusted EBITDA (1) | $ 15,251 | $ 14,395 | $ 30,045 | $ 28,261 |
Interest expense | $ 5,836 | $ 5,472 | $ 11,327 | $ 10,887 |
Interest Coverage Ratio (1) | 2.6x | 2.6x | 2.7x | 2.6x |
(1) Represents a non-IFRS measure. See "Non-IFRS Measures". |
Table 9 - Calculation of the Debt Service Coverage Ratio
(CAD $ thousands) | 3 Months Ended June 30 2026 | 3 Months Ended June 30 2025 | 6 Months Ended June 30 2026 | 6 Months Ended June 30 2025 |
Adjusted EBITDA (1) | $ 15,251 | $ 14,395 | $ 30,045 | $ 28,261 |
| 5,836 | 5,472 | 11,327 | 10,887 |
Principal repayments | 2,963 | 3,258 | 6,067 | 6,414 |
Debt Service Requirements | $ 8,799 | $ 8,730 | $ 17,394 | $ 17,301 |
Debt Service Coverage Ratio (1) | 1.7x | 1.6x | 1.7x | 1.6x |
(1) Represents a non-IFRS measure. See "Non-IFRS Measures". |
Table 10 - Calculation of Gross Book Value, Adjusted Debt and Adjusted Debt to Gross Book Value
(CAD $ thousands except unit, per unit amounts and unless otherwise stated) | 3 Months | 3 Months | 3 Months | 3 Months | 3 Months | 3 Months | 3 Months | 3 Months |
Total assets, including investment properties stated at fair value | $ 1,286,525 | $ 1,090,800 | $ 1,076,937 | $ 1,083,723 | $ 1,110,963 | $ 1,005,147 | $ 997,762 | $ 1,003,747 |
Accumulated depreciation on property and equipment and intangible assets | 4,581 | 4,396 | 4,178 | 4,649 | 4,441 | 4,230 | 4,011 | 3,867 |
Gross Book Value (1) | $ 1,291,106 | $ 1,095,196 | $ 1,081,115 | $ 1,088,372 | $ 1,115,404 | $ 1,009,377 | $ 1,001,773 | $ 1,007,614 |
Debt (non-current and current portion) as reported in the financial statements | 609,198 | 521,252 | 525,014 | 531,143 | 562,426 | 495,048 | 498,571 | 501,064 |
Reconciling items: | ||||||||
Unamortized financing costs | 4,048 | 3,060 | 3,431 | 3,779 | 3,917 | 3,777 | 4,030 | 4,369 |
Cumulative accretion expense - Convertible Debentures (2) | (1,163) | (1,067) | (971) | (876) | (781) | (687) | (592) | (498) |
Cumulative fair value adjustment - derivative financial instruments (3) | 18 | 454 | (312) | 171 | 480 | 1,565 | 1,426 | 917 |
Adjusted Debt (1) | $ 612,101 | $ 523,699 | $ 527,162 | $ 534,217 | $ 566,042 | $ 499,703 | $ 503,435 | $ 505,852 |
Adjusted Debt to Gross Book Value (1) | 47.4 % | 47.8 % | 48.8 % | 49.1 % | 50.7 % | 49.5 % | 50.3 % | 50.2 % |
(1) Represents a non-IFRS measure. See "Non-IFRS Measures". |
(2) Represents the cumulative amounts since issuance of the Convertible Debentures on May 26, 2023. |
(3) Represents the cumulative amounts since issuance of the Convertible Debentures on May 26, 2023 and the interest rate swap on June 26, 2025. |
Table 11 - Calculation of NAV and NAV per Unit
(CAD $ thousands except unit, per unit amounts and unless otherwise stated) | 3 Months | 3 Months | 3 Months | 3 Months | 3 Months | 3 Months | 3 Months | 3 Months |
Total unitholders' equity per condensed consolidated interim financial statements | $ 608,762 | $ 512,234 | $ 496,892 | $ 499,716 | $ 493,934 | $ 472,994 | $ 464,647 | $ 469,455 |
Adjustment for Class B LP Units | 27,302 | 24,282 | 25,366 | 22,462 | 21,958 | 6,024 | 6,288 | 7,030 |
Net Asset Value (NAV) (1) | $ 636,064 | $ 536,516 | $ 522,258 | $ 522,178 | $ 515,892 | $ 479,018 | $ 470,935 | $ 476,485 |
Total outstanding Units and Class B LP Units | 83,947,853 | 67,431,683 | 67,431,683 | 67,086,522 | 67,086,522 | 60,634,909 | 60,634,909 | 60,634,909 |
NAV per Unit (1) | $ 7.58 | $ 7.96 | $ 7.74 | $ 7.78 | $ 7.69 | $ 7.90 | $ 7.77 | $ 7.86 |
(1) Represents a non-IFRS measure. See "Non-IFRS Measures". |
Forward-Looking Statements
This press release contains forward-looking statements and forward-looking information (collectively, "forward-looking statements") within the meaning of applicable securities legislation, including statements relating to certain expectations, projections, growth plans and other information related to PROREIT's business strategy and future plans. Forward-looking statements are based on a number of assumptions and are subject to a number of risks and uncertainties, many of which are beyond PROREIT's control, that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking statements.
Forward-looking statements contained in this press release include, without limitation, statements pertaining to the execution by PROREIT of its growth strategy, the future financial and operating performance of PROREIT, and the medium-term goals of PROREIT. PROREIT's objectives and forward-looking statements are based on certain assumptions, including that (i) PROREIT will receive financing on favourable terms; (ii) the future level of indebtedness of PROREIT and its future growth potential will remain consistent with PROREIT's current expectations; (iii) there will be no changes to tax laws adversely affecting PROREIT's financing capacity or operations; (iv) the impact of the current economic climate and the current global financial conditions on PROREIT's operations, including its financing capacity and asset value, will remain consistent with PROREIT's current expectations; (v) the performance of PROREIT's investments in Canada will proceed on a basis consistent with PROREIT's current expectations; and (vi) capital markets will provide PROREIT with readily available access to equity and/or debt.
The medium-term goals of PROREIT disclosed under "Strategy" are based on PROREIT's current business plan and strategies and are not intended to be a forecast of future results. The medium-term goals contemplate PROREIT's historical growth and certain assumptions including but not limited to (i) current global capital market conditions, (ii) access to capital, (iii) interest rate exposure, (iv) availability of high-quality industrial properties for acquisitions, and (v) capacity to finance acquisitions on an accretive basis.
The forward-looking statements contained in this news release are expressly qualified in their entirety by this cautionary statement. All forward-looking statements in this press release are made as of the date of this press release. PROREIT does not undertake to update any such forward-looking information whether as a result of new information, future events or otherwise, except as required by law.
Additional information about these assumptions and risks and uncertainties is contained under "Risk Factors" in PROREIT's latest annual information form and "Risk and Uncertainties" in PROREIT's management's discussion and analysis for the three and six month periods ended June 30, 2026, which are available under PROREIT's profile on SEDAR+ at www.sedarplus.ca.
SOURCE PROREIT
For further information: Investor Relations: PRO Real Estate Investment Trust, Gordon G. Lawlor, CPA, President and Chief Executive Officer, 514-933-9552; PRO Real Estate Investment Trust, Alison J. Schafer, CPA, Chief Financial Officer and Secretary, 514-933-9552
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