/NOT FOR DISTRIBUTION IN THE U.S. OR OVER U.S. NEWSWIRES/
TORONTO, Nov. 11, 2025 /CNW/ - True North Commercial Real Estate Investment Trust (TSX:TNT) (the "REIT") today announced its financial results for the three months ended September 30, 2025 ("Q3-2025") and nine months ended September 30, 2025 ("YTD-2025").
"We are pleased with the continued leasing momentum, relatively strong occupancy for the REIT's core portfolio at 94% and the successful completion of the refinancing of all of its 2025 debt maturities during the quarter," said Daniel Drimmer, the REIT's Chief Executive Officer. "These achievements demonstrate the REIT's proactive approach to strengthening its financial position and maintaining flexibility, while sales of non-core properties reflect our ongoing commitment to disciplined capital recycling and long term value for our unitholders."
Q3-2025 highlights
The REIT's core portfolio occupancy(1) excluding assets held for sale at the end of Q3-2025 was approximately 94% which remained above the average occupancy for the markets in which the REIT operates. The REIT also had a weighted average lease term ("WALT")(1) of 4.3 years excluding investment properties held for sale.
The REIT contractually leased or renewed approximately 168,400 square feet with a WALT of 7.1 years with positive leasing spreads on renewals reported at 1.1% for the quarter.
The REIT's revenue increased from $30,437 in three months ended September 30, 2024 ("Q3-2024") to $30,586 in Q3-2025 (YTD-2025 - decreased by 6%) primarily as a result of termination income of $1,375 recorded in Q3-2025 relating to one of the REIT's Greater Toronto Area ("GTA") tenants with the space having been re-leased for a ten-year term commencing 2026, offset by a decrease in occupancy for the REIT's held for sale properties as well as reductions in revenue resulting from property dispositions in 2025.
The REIT's net operating income ("NOI")(1) decreased by approximately 5% in Q3-2025 relative to Q3-2024 primarily due to the disposition activity in 2025, a decrease in occupancy for the REIT's held for sale properties and a decrease in same property net operating income ("Same Property NOI")(1), partially offset by contractual rent increases achieved by the REIT throughout late 2024 and YTD-2025.
Q3-2025 Same Property NOI excluding assets held for sale decreased by approximately 2% (YTD-2025 - 3%) compared to the same period in 2024 including the impact of termination income described above. Q3-2025 Same Property NOI excluding the impact of termination income and free rent in both periods, decreased by approximately 7% primarily due to a reduction in occupancy in Q3-2025 relative to Q3-2024 for the REIT's Alberta portfolio, one of the REIT's properties in British Columbia portfolio and one of the REIT's GTA properties which space has been re-leased with new tenants commencing in 2026, partially offset by contractual rent increases achieved by the REIT. The REIT continues to focus on leasing activity and continues to maintain above occupancy levels across its portfolio.
The REIT's Q3-2025 funds from operations ("FFO")(1) and adjusted funds from operations ("AFFO")(1) decreased by $1,009 and $1,713 (YTD-2025 - $5,208 and $6,607), respectively when compared to the same period in 2024 primarily due to the reduction in total portfolio NOI and increase in interest costs.
Q3-2025 FFO and AFFO basic and diluted per trust units ("Unit")(1) decreased from $0.61 and $0.64 in Q3-2024 to $0.56 and $0.54 respectively due to the reasons outlined above, partially offset by the impact of a reduction in the number of outstanding Units as a result of repurchases under the the normal course issuer bid ("NCIB") program during 2024 and 2025.
__________________________
1 This is a non-IFRS financial measure, refer to "Non-IFRS measures".
YTD highlights
The REIT contractually leased and renewed approximately 605,900 square feet with a WALT of 5.5 years and a 0.9% increase over expiring base rents.
During the first and second quarters of 2025, the REIT completed the repurchase of 110,700 Units for cash of $1,021 under the NCIB program at a weighted average price of $9.23 per Unit. No Units were repurchased during Q3-2025.
On March 18, 2025, the REIT announced the reinstatement of the monthly distribution ("Distribution Reinstatement") to Unitholders, which commenced with a record date of March 31, 2025, payable on April 15, 2025, amounting to $0.0575 per Unit per month. For YTD-2025, the REIT's AFFO payout ratio(1) was 26%.
During YTD-2025, the REIT successfully completed $228,300 of refinancing and $8,500 of new financing at a weighted average interest rate of approximately 4.87% and weighted average term of approximately 3.00 years. Subsequent to September 30, 2025, the REIT successfully refinanced all remaining 2025 debt maturities at a weighted average interest rate of approximately 4.39% and weighted average term of approximately 2.83 years.
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1 This is a non-IFRS financial measure, refer to "Non-IFRS measures".
Subsequent events
Subsequent to September 30, 2025, the REIT successfully refinanced the remaining 2025 debt maturities at a weighted average interest rate of approximately 4.39% and weighted average term of approximately 2.83 years.
Key performance indicators
Q3-2025
Q3-2024
YTD-2025
YTD-2024
Number of properties(1)
38
40
Portfolio gross leasable area ("GLA")(1)
4,460,100 sf
4,619,600 sf
Occupancy(1)(2)
94 %
93 %
WALT(1)
4.3 years
4.3 years
Revenue from government and credit rated tenants(1)
72 %
76 %
Revenue
$ 30,586
$ 30,437
$ 89,788
$ 95,226
NOI
15,369
16,257
43,837
50,364
Net loss and comprehensive loss
(5,213)
(3,383)
(16,577)
(5,793)
Same Property NOI(3)
19,074
19,358
56,397
57,996
FFO
$ 8,105
$ 9,114
$ 22,686
$ 27,894
FFO per Unit - basic
0.56
0.61
1.57
1.82
FFO per Unit - diluted
0.56
0.61
1.56
1.82
AFFO
$ 7,800
$ 9,513
$ 22,064
$ 28,671
AFFO per Unit - basic
0.54
0.64
1.53
1.87
AFFO per Unit - diluted
0.54
0.64
1.52
1.87
AFFO payout ratio - diluted(4)
32 %
— %
26 %
— %
Distributions declared
$ 2,485
$ ,
$ 5,796
$ ,
(1) This is presented as at the end of the applicable reporting period, rather than for the quarter.
(2) Represents same property occupancy excluding assets classified as held for sale as at September 30, 2025. The REIT's occupancy for all assets owned as at the end of each reporting period (including any held for sale assets) was 90% as at the end of Q3-2025 (Q3-2024 - 88%).
(3) Represents Same Property NOI including assets classified as held for sale during Q3-2025 and Q3-2024. Same Property NOI excluding assets classified as held for sale have been presented separately in this press release.
(4) YTD-2025 AFFO payout ratio was lower as a result of the reinstatement of the REIT's distribution commencing the March 2025 record date.
Operating results
The REIT's revenue increased from $30,437 in Q3-2024 to $30,586 in Q3-2025 (YTD-2025 - decreased by 6%) primarily as a result of termination income of $1,375 recorded in Q3-2025 relating to one of the REIT's GTA tenants with the space having been re-leased for a ten-year term commencing 2026, offset by a decrease in occupancy for the REIT's held for sale properties as well as reductions in revenue resulting from property dispositions in 2025.
The REIT's NOI decreased by approximately 5% in Q3-2025 relative to Q3-2024 primarily due to the disposition activity in 2025, a decrease in occupancy for the REIT's held for sale properties and a decrease in Same Property NOI, partially offset by contractual rent increases achieved by the REIT throughout late 2024 and YTD-2025.
The REIT's Q3-2025 FFO and AFFO decreased by $1,009 and $1,713 (YTD-2025 - $5,208 and $6,607), respectively when compared to the same period in 2024 primarily due to the reduction in total portfolio NOI and increase in interest costs.
Q3-2025 FFO and AFFO basic and diluted per Unit decreased from $0.61 and $0.64 in Q3-2024 to $0.56 and $0.54 respectively due to the reasons outlined above, partially offset by the impact of a reduction in the number of outstanding Units as a result of repurchases under the NCIB program during 2024 and 2025.
YTD-2025 FFO basic and diluted per Unit decreased by $0.25 and $0.26 to $1.57 and $1.56, whereas AFFO basic and diluted per Unit decreased by $0.34 and $0.35 to $1.53 and $1.52 respectively, compared to nine months ended September 30, 2024 ("YTD-2024") with variance driven by reasons noted above for Q3-2025 FFO and AFFO per Unit.
On March 18, 2025, the REIT announced the Distribution Reinstatement to Unitholders, which commenced with a record date of March 31, 2025, payable on April 15, 2025, amounting to $0.0575 per Unit per month. For YTD-2025, the REIT's AFFO payout ratio was 26%.
Same Property NOI
Occupancy(1)
As at September 30
Same Property NOI(1)
2025
2024
Q3-2025
Q3-2024
Variance
Variance %
Alberta
87.8 %
93.4 %
Alberta
$ 2,854
$ 3,216
$ (362)
(11.3) %
British Columbia
74.8 %
100.0 %
British Columbia
515
795
(280)
(35.2) %
New Brunswick
91.3 %
87.9 %
New Brunswick
1,335
1,320
15
1.1 %
Nova Scotia
88.6 %
86.1 %
Nova Scotia
1,446
1,303
