Third Quarter of Fiscal 2025 Highlights
Net operating income (NOI) increased by 19.6% year-over-year
Same Property NOI* rose 9.7% year-over-year, led by 10.5% growth in Industrial Same Property NOI*
Basic AFFO per Unit* increased by 7.2% year-over-year
AFFO Payout Ratio, Basic* stood at 91.1%, compared to 97.7% in Q3 2024
Total debt to total assets of 49.0% at September 30, 2025, compared to 49.9% a year earlier
Adjusted Debt to Gross Book Value* of 49.1% at September 30, 2025, compared to 50.2% a year earlier
74.8% of 2025 gross leasable area (GLA) renewed at average spread of 34.9%, and 54.8% of 2026 GLA renewed at 33.4% average spread
Occupancy rate of 95.5% at September 30, 2025 (including committed space), compared to 97.2% a year earlier. Excluding the impact of a single vacancy in a 176,000-square-foot property, occupancy rate was 98.1% at September 30, 2025
Completed sale of 12 non-core retail properties totalling approximately 277,000 square feet of GLA for gross proceeds of $51.3 million
Subsequent to quarter-end, completed sale of one non-core office property for gross proceeds of $7.2 million and one non-core retail property for gross proceeds of $0.4 million
"We are very pleased with our third quarter NOI growth year-over-year and the successful completion of our transition to a pure-play industrial REIT. With the sale of 12 non-core retail properties in the quarter, our evolution from a diversified REIT to a focused industrial platform, a strategic objective we set three years ago, is now complete," said Gordon Lawlor, President and Chief Executive Officer of PROREIT.
"Revenues and NOI rose significantly in the quarter, despite owning 10 fewer properties than during the same period last year, a testament to the robust performance of our industrial portfolio and the ongoing success of our small- and mid-bay strategy. We are also seeing improvement in our AFFO Payout Ratio, Basic* and Adjusted Debt to Gross Book Value* year-over-year, supported by disciplined capital management and focus on reducing leverage.
"We benefited from a full quarter of contributions from our recent acquisitions in Winnipeg, a market supported by a resilient economy and solid industrial fundamentals**. PROREIT is now among the top three** industrial landlords in Winnipeg, with 1.3 million square feet of GLA and a 99.9% occupancy rate.
"In Atlantic Canada, which represents 45.4% of our base rent, our portfolio continues to perform very well and is strategically poised to benefit from record levels of major project investment spending in 2025 and sustained economic momentum into 2026***.
"Looking ahead, we are well positioned to strengthen our position as a prominent Canadian light industrial REIT by unlocking the significant value embedded in our portfolio, pursuing accretive growth opportunities and remaining focused on delivering sustainable value for our unitholders," concluded Mr. Lawlor.
* Measures followed by the suffix "*" in this press release are non-IFRS measures. See "Non-IFRS Measures".
** Information from Capital Commercial Investment Services, published on October 22, 2025.
***Information from Atlantic Economic Council, published November 4, 2025.
Financial ResultsTable 1 - Financial Highlights
(CAD $ thousands except unit, per unit amounts and unless otherwise stated)
3 Months
Ended
September 30
2025
3 Months
Ended
September 30
2024
9 Months
Ended
September 30
2025
9 Months
Ended
September 30
2024
Financial data
Property revenue
$ 27,102
$ 24,033
$ 77,871
$ 74,330
Net operating income ("NOI")
$ 17,058
$ 14,262
$ 47,372
$ 43,870
Same Property NOI (1)
$ 13,536
$ 12,336
$ 40,029
$ 37,050
Net income and comprehensive income
$ 12,909
$ 3,329
$ 33,186
$ 497
Net income and comprehensive income per Unit - Basic (2)
$ 0.1924
$ 0.0549
$ 0.5274
$ 0.0082
Net income and comprehensive income per Unit - Diluted (2)
$ 0.1904
$ 0.0543
$ 0.5227
$ 0.0081
Total Unitholders' equity
$ 499,716
$ 469,455
$ 499,716
$ 469,455
NAV per Unit (2)
$ 7.78
$ 7.86
$ 7.78
$ 7.86
Total assets
$ 1,083,723
$ 1,003,747
$ 1,083,723
$ 1,003,747
Total debt
$ 531,143
$ 501,064
$ 531,143
$ 501,064
Total debt to total assets
49.0 %
49.9 %
49.0 %
49.9 %
Adjusted Debt to Gross Book Value (1)
49.1 %
50.2 %
49.1 %
50.2 %
Interest Coverage Ratio (1)
2.6x
2.5x
2.6x
2.5x
Debt Service Coverage Ratio (1)
1.7x
1.6x
1.7x
1.6x
Adjusted Debt to Annualized Adjusted EBITDA Ratio (1)
8.4x
9.5x
9.1x
9.2x
Weighted average interest rate on mortgage debt
3.89 %
3.87 %
3.89 %
3.87 %
Net cash flows provided from operating activities
$ 6,449
$ 9,916
$ 20,787
$ 19,448
Funds from Operations (FFO) (1)
$ 7,957
$ 6,513
$ 23,831
$ 21,614
Basic FFO per unit (1)(2)
$ 0.1186
$ 0.1074
$ 0.3787
$ 0.3565
Diluted FFO per unit (1)(2)
$ 0.1174
$ 0.1063
$ 0.3754
$ 0.3533
Adjusted Funds from Operations (AFFO) (1)
$ 8,281
$ 6,979
$ 23,191
$ 21,747
Basic AFFO per unit (1)(2)
$ 0.1234
$ 0.1151
$ 0.3685
$ 0.3587
Diluted AFFO per unit (1)(2)
$ 0.1221
$ 0.1139
$ 0.3653
$ 0.3555
AFFO Payout Ratio, Basic (1)
91.1 %
97.7 %
91.6 %
94.1 %
AFFO Payout Ratio, Diluted (1)
92.1 %
98.8 %
92.4 %
94.9 %
(1) Represents a non-IFRS measure. See "Non-IFRS Measures".
(2) Total basic units consist of trust units of the REIT and Class B LP Units (as defined herein). Total diluted units also includes deferred trust units and restricted trust units issued under the REIT's long-term incentive plan.
At September 30, 2025, PROREIT owned 106 properties (including a 50% ownership interest in 40 investment properties), compared to 116 investment properties (including a 50% ownership interest in 42 investment properties) at September 30, 2024. At September 30, 2025, total assets amounted to $1.08 billion, representing an 8% increase from $1.0 billion on September 30, 2024.
The industrial segment represented 91.7% of total GLA and 89.4% of base rent as of September 30, 2025, while Atlantic Canada accounted for 45.4% of base rent, highlighting PROREIT's strategic concentration in stable and growing markets***.
For the three-month period ended September 30, 2025:
Property revenue amounted to $27.1 million, an increase of $3.1 million or 12.8%, compared to the same prior year period. The increase is mainly due to the contractual increases in rent and higher rental rates on lease renewals and new leases despite owning 10 fewer properties.
Net operating income (NOI) amounted to $17.1 million, an increase of $2.8 million or 19.6% compared to the same prior year period,which was mainly driven by the same factors impacting property revenue described above.
Same Property NOI*, which represented 99 properties out of the 106 properties in the portfolio, totalled $13.5 million for the quarter, an increase of $1.2 million or 9.7%, compared to the same quarter last year. The increase was largely a result of contractual increases in rent and higher rental rates on lease renewals and new leases despite a decrease in overall average occupancy primarily related to one Quebec vacancy. Notably, Same Property NOI* for industrial assets rose by $1.2 million or 10.5% for the quarter, compared to the same period in 2024.
FFO* was $8.0 million, up $1.5 million or 22.2%, from $6.5 million in Q3 2024. The increase was mainly driven by increases in contractual base rent, higher rates on renewals and higher rental rates on new leases despite owning 10 fewer properties, offset by an increase in interest and financing costs.
AFFO Payout Ratio, Basic* stood at 91.1%, compared to 97.7% in the third quarter of 2024. The year-over-year decrease was primarily driven by increases in contractual base rent, higher rates on renewals and higher rental rates on new leases, offset by an increase in stabilized leasing, interest and financing costs compared to the same period in 2024.
For the nine-month period ended September 30, 2025:
Property revenue amounted to $77.9 million, a $3.5 million increase or 4.8%, compared to the same prior year period. The increase is driven by the same factors noted for the three-month period above.
NOI amounted to $47.4 million, an increase of $3.5 million or 8%, driven by the same factors noted for the three-month period above.
Same Property NOI* totalled $40.0 million, an increase of $3.0 million or 8%, compared to the same prior year period, primarily attributable to contractual increases in rent and higher rental rates on lease renewals and new leases despite a decrease in overall average occupancy primarily related to one Quebec vacancy.
FFO* reached $23.8 million, an increase of $2.2 million or 10.3%. The increase was mainly driven by increases in contractual base rent, higher rates on renewals and higher rental rates on new leases despite owning 10 fewer properties, offset by an increase in interest and financing costs.
AFFO Payout Ratio, Basic* was 91.6%, compared to 94.1% for the same period in the prior year, a decrease driven by the same factors noted for the three-month period above.
Sustained Operating Environment
As of September 30, 2025, PROREIT's portfolio comprised 106 investment properties, totalling 6.4 million square feet of GLA, with a weighted average lease term to maturity (WALT) of 4.4 years, compared to 3.7 years at the same date last year.
The overall occupancy rate of the portfolio stood at 95.5% as at September 30, 2025 (including committed space), compared to 97.2% at the same date last year. The change primarily reflects the vacancy of a 176,000-square-foot single-tenant industrial property in Sainte-Hyacinthe, Quebec, following the tenant's decision not to renew its lease in July 2025. PROREIT has since received interest from prospective tenants seeking to lease portions of the property, as well as from potential buyers seeking to acquire the facility for their own use. PROREIT will carefully evaluate these opportunities in due course. Excluding this specific vacancy, portfolio occupancy (including committed space) would be approximately 98.1%.
As of the date of this press release, approximately 74.8% of GLA maturing in 2025 has been renewed at a positive average spread of 34.9%, supported by strong leasing activity, including:
In August 2025, PROREIT renewed an industrial lease with a covenant tenant expiring in 2025, for a 5-year term starting from the date of expiry. The renewed base rent represents a 24% increase over the expiring rent and represents approximately 45,000 square feet of GLA in Moncton, New Brunswick.
In August 2025, PROREIT entered into a 28,000 square foot industrial lease for a 5-year term commencing January 1, 2026 in Winnipeg, Manitoba. The new base rent represents a 12% increase compared to the rent paid by the previous tenant, which vacated the property in 2024.
As of the date of this press release, approximately 54.8% of GLA maturing in 2026 has been renewed at 33.4% positive average spreads, supported by notable transactions such as:
In November 2024, PROREIT renewed a retail lease with a single credit quality tenant expiring in 2026, for a 10-year term starting from the date of the expiry. The renewed base rent will remain the same as the expiring rent with a one-time rent step to commence in year 6 of the renewal term and represents approximately 42,000 square feet of GLA.
In December 2024, PROREIT renewed an industrial lease with a single tenant expiring in 2026, for a 3-year term starting from the date of the expiry. The renewed base rent is in excess of 40% over the expiring rent with annual rent steps and represents approximately 155,000 square feet of GLA.
In February 2025, the REIT renewed four industrial leases with a credit quality tenant expiring in 2026, each for a 5-year term starting from the date of the expiry. The renewed base rent is in excess of 45% over the expiring rent with annual rent steps and represents approximately 325,000 square feet of GLA.
Portfolio Transactions
In the third quarter of 2025, PROREIT completed the sale of 12 previously announced non-core retail properties totalling approximately 277,000 square feet of GLA for aggregate gross proceeds of $51.3 million (excluding closing costs), which detail as follows:
On September 15, 2025, PROREIT completed the sale of nine non-core retail properties located in Atlantic Canada totalling approximately 221,000 square feet of GLA for gross proceeds of $39.8 million (excluding closing costs). Net proceeds of the sale were used to repay approximately $21.5 million of related mortgages, with the balance used to repay approximately $8.5 million of the revolving credit facility and for general corporate purposes.
On September 26, 2025, PROREIT completed the sale of two non-core retail properties located in New Brunswick totalling approximately 50,400 square feet for gross proceeds of $9.8 million (excluding closing costs). The net proceeds of the sale were used to repay approximately $4.9 million of a related mortgage, with the balance used for general corporate purposes.
On September 29, 2025, PROREIT completed the sale of a 50% interest co-ownership non-core retail property located in Nova Scotia totalling approximately 10,900 square feet for gross proceeds of $3.5 million (excluding closing costs). The REIT's 50% share of the gross proceeds was $1.8 million (excluding closing costs), used to partially repay approximately $0.9 million of a related mortgage, with the balance used for general corporate purposes.
Subsequent to quarter-end, PROREIT continued to execute on its disposition strategy:
On October 24, 2025, PROREIT completed the sale of a non-core office property located in New Brunswick totalling approximately 51,000 square feet for gross proceeds of $7.2 million (excluding closing costs). The net proceeds of the sale were used to repay a portion of approximately $6 million of the revolving credit facility with the balance used for general corporate purposes.
On November 5, 2025, PROREIT completed the sale of a non-core retail property located in Alberta totalling approximately 5,000 square feet for gross proceeds of $0.4 million (excluding closing costs). Net proceeds of the sale and cash on hand were used to repay approximately $0.5 million in a related mortgage maturing January 31, 2033.
Financial Position
Total debt (current and non-current) was $531.1 million at September 30, 2025, compared to $562.4 million at June 30, 2025, and $501.1 million at September 30, 2024.
On September 23, 2025, PROREIT refinanced a mortgage that matured in August 2025 in connection with four 50% co-ownership industrial properties with two new mortgages totalling $64.3 million. PROREIT's 50% share of the new mortgages of $32.1 million mature in 2028 and 2030 and bear annual interest rate of 3.99% and 4.20% respectively. PROREIT's 50% portion of net proceeds from the incremental financing were used to repay approximately $8 million of the revolving credit facility with the balance used for general corporate purposes.
At September 30, 2025, mortgage maturities amounted to
