"We're pleased with our continued momentum through the third quarter, marked by a 9% year-to-date increase in Normalized FFO per unit," said Kevin Henley, President and CEO. "Canadian Net remains well-positioned in the current market, supported by our strong niche in necessity-based real estate, which has once again enabled us to maintain a 100% occupancy rate. Looking ahead, we remain committed to building on our portfolio strengths while actively evaluating potential accretive acquisition opportunities."
RESULTS FOR Q3 2025
Canadian Net reported Funds from operations1 ("FFO") of $3.4 million, or $0.164 per unit, an increase of 20% compared to $2.8 million, or $0.137 per unit, for the quarter ended September 30, 2024 ("Q3 2024"). Normalized FFO1 for the quarter, which adds back certain non-recurring items to better reflect operational performance, was $3.4 million, or $0.164 per unit, an increase of 12% compared to $3.0 million, or $0.147 per unit for Q3 2024.
Rental income was $6.9 million in Q3 2025, an increase of 11.5% from Q3 2024. Net Operating Income1 ("NOI") in Q3 2025 was $5.0 million, an increase of 10.9% from Q3 2024, reflecting an increase in rental income due to property acquisitions. Rental income and NOI1 were also lower in Q3 2024 due to property dispositions.
The REIT generated a net income attributable to unitholders of $2.9 million in Q3 2025 compared to a net income of $13.0 million in Q3 2024.
RESULTS FOR THE 9-MONTH PERIOD ENDED SEPTEMBER 30, 2025
Canadian Net reported FFO1 of $10.2 million, or $0.494 per unit, an increase of 12% compared to $9.1 million, or $0.443 per unit for the 9-month period ended September 30, 2024. Normalized FFO1 for the period was $10.2 million, or $0.494 per unit, an increase of 9% compared to $9.3 million, or $0.453 per unit for Q3 2024.
Rental income was $20.7 million for the 9-month period ended September 30, 2025, an increase of 6.8% from the same period in 2024. NOI1 over the 9-month period ended September 30, 2025 was $15.1 million, an increase of 6.3% from the same period in 2024, reflecting mainly an increase in rental income due to property acquisitions.
The REIT generated a net income attributable to unitholders of $11.7 million for the 9-month period ended September 30, 2025 compared to a net income of $5.3 million for the same period last year.
The increase in Normalized FFO1 is derived from higher rental income from property acquisitions and lower interest charges on credit facilities, partially offset by interest on mortgages from property acquisitions. The increase in NOI1 was mainly attributable to the increase in rental income from property acquisitions. Finally, the variance in net income attributable to unitholders is primarily attributable to the change in the fair value of investment properties.
DISTRIBUTIONS
Canadian Net announced that it will make monthly cash distributions of $0.02917 per unit, representing $0.35 per unit on an annualized basis, on January 30th, February 27th and March 31st, 2026, to unitholders of record on January 15th, February 13th and March 13th, 2026, respectively.
The tables below represent other financial highlights and the reconciliations of certain non-IFRS measures for Q3 2025 and Q3 2024. This information should be read in conjunction with the Condensed Consolidated Interim Financial Statements and Management's Discussion & Analysis ("MD&A") for the quarters ended September 30th, 2025 and September 30th, 2024.
SUMMARY OF SELECTED FINANCIAL INFORMATION
9 months
Periods ended September 30
2025
2024
Δ
%
Financial info
Property rental income
20,651,186
19,337,096
1,314,090
7
%
Net income and
comprehensive income
11,690,874
5,315,339
6,375,535
120
%
NOI (1)
15,055,315
14,166,312
889,003
6
%
FFO (1)
10,168,070
9,102,645
1,065,425
12
%
Normalized FFO (1)
10,168,070
9,310,559
857,511
9
%
AFFO (1)
9,756,269
8,658,851
1,097,418
13
%
EBITDA (1)
17,087,314
10,670,478
6,416,836
60
%
Adjusted EBITDA (1)
14,743,962
13,739,618
1,004,344
7
%
Investment properties
291,142,734
267,378,220
23,764,514
9
%
Adjusted investment properties (1)
341,092,506
317,006,824
24,085,682
8
%
Total assets
316,821,303
293,510,295
23,311,008
8
%
Mortgages
144,430,085
126,895,706
17,534,379
14
%
Current portion of mortgages
12,706,069
16,136,371
(3,430,302
)
(21
%)
Credit facilities
12,840,000
11,170,000
1,670,000
15
%
Total convertible debentures
5,984,565
5,753,739
230,826
4
%
Total equity
135,986,974
129,426,184
6,560,790
5
%
Weighted average units o/s - basic
20,587,320
20,551,554
35,766
-
Amounts on a per unit basis
FFO(1)
0.494
0.443
0.051
12
%
Normalized FFO (1)
0.494
0.453
0.041
9
%
AFFO(1)
0.474
0.421
0.053
13
%
Distributions
0.259
0.259
-
-
(1) This is a non-IFRS financial measure with no standardized IFRS meaning and may not be comparable to other issuers. Refer to the sections "Non-IFRS financial measures".
NON-IFRS FINANCIAL MEASURES
The Trust's consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). In this press release, as a complement to results provided in accordance with IFRS, the Trust discloses and discusses certain non-IFRS financial measures: FFO, FFO per unit, Normalized FFO, Normalized FFO per unit, AFFO, AFFO per unit, NOI, and Adjusted Investment Properties. These non-IFRS measures are not defined by IFRS, do not have a standardized meaning, and may not be comparable with similar measures presented by other issuers. Canadian Net has presented such non-IFRS measures as management of the Trust believes they are relevant measures of Canadian Net's underlying operating performance and debt management. Non-IFRS measures should not be considered as alternatives to net income, cash generated from (utilized in) operating activities, or comparable metrics determined in accordance with IFRS as indicators of the Trust's performance, liquidity, cash flow, and profitability. Information appearing in this news release is a select summary of results. This news release should be read in conjunction with the Condensed Consolidated Interim Financial Statements and MD&A for the Trust. Please refer to the "Non IFRS Financial Measures" section in Canadian Net's management's discussion and analysis for the period ended September 30, 2025, available under Canadian Net's profile on SEDAR+ at www.sedarplus.ca for a full description of these measures and, where applicable, a reconciliation to the most directly comparable measure calculated in accordance with IFRS. Such explanation is incorporated by reference herein.
In addition, below are the reconciling tables for the non-IFRS measures used in this press release.
Reconciliation of Investment Properties to Adjusted Investment Properties
As at September 30
2025
2024
Δ
Investment Properties
Developed properties
291,142,734
267,378,220
9
%
Joint Venture Ownership(1)
Developed properties
48,641,089
47,075,565
3
%
Properties under development
1,308,683
2,553,039
(49
%)
Adjusted Investment Properties(2)
341,092,506
317,006,824
8
%
(1) Represents Canadian Net's proportionate share
(2) This is a non-IFRS financial measure with no standardized IFRS meaning and may not be comparable to other issuers. Refer to the section "Non-IFRS financial measures"
Results of Operations
3 months
9 months
Periods ended September 30
2025
2024
Δ
2025
2024
Δ
Rental Income
6,916,249
6,203,561
712,688
20,651,186
19,337,096
1,314,090
Operating expenses
(1,866,827
)
(1,650,928
)
(215,899
)
(5,595,871
)
(5,170,784
)
(425,087
)
Net Operating Income(1)
5,049,422
4,552,633
496,789
15,055,315
14,166,312
889,003
Share of net income from
investments in joint ventures
453,043
1,866,458
(1,413,415
)
788,403
1,577,879
(789,476
)
Change in fair values
of investment properties
(308,554
)
9,045,962
(9,354,516
)
2,869,132
(3,413,037
)
6,282,169
Unit-based compensation
(243,147
)
(312,572
)
69,425
(820,548
)
(715,537
)
(105,011
)
Administrative expenses
(257,339
)
(424,847
