"We are pleased to report continued FFO per unit1 growth and to announce a 3% increase in our distribution, a testament to the strength and predictability of our portfolio," said Kevin Henley, President and CEO. "As expected, FFO per unit1 growth this quarter was impacted by the carrying cost of our recently issued debenture, which was raised precisely to accelerate our acquisition pipeline. This impact is temporary and will reverse as that capital is deployed into accretive opportunities. With a stronger balance sheet, an active acquisition pipeline, and a portfolio running at 100% occupancy, we are well-positioned to continue delivering FFO1 growth as the year progresses."
RESULTS FOR Q1 2026
Canadian Net reported Funds from operations1 ("FFO") of $3.41 million, or $0.166 per unit, an increase of 1% compared to $3.38 million, or $0.164 per unit, for the quarter ended March 31, 2025 ("Q1 2025").
Rental income was $6.9 million in Q1 2026, an increase of 1.3% from Q1 2025. Net Operating Income1 ("NOI") in Q1 2026 was $5.0 million, an increase of 0.6% from Q1 2025, reflecting an increase in rental income due to property acquisitions.
The REIT generated a net income attributable to unitholders of $2.5 million in Q1 2026 compared to a net income of $10.2 million in Q1 2025.
The increase in Normalized FFO1 is derived from higher rental income from property acquisitions and lower interest charges on credit facilities. 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
Starting in July 2026, Canadian Net's annual distribution will increase from $0.35 to $0.36 per unit, representing a 3.0% increase. This marks another step in a long track record of distribution growth, with Canadian Net having grown its distributions by 188% since 2012.
Canadian Net announced that it will make monthly cash distributions of $0.03 per unit, representing $0.36 per unit on an annualized basis, on July 31st, August 31st and September 29th, 2026, to unitholders of record on July 15th, August 14th and September 15th, 2026, respectively.
The tables below represent other financial highlights and the reconciliations of certain non-IFRS measures for Q1 2026 and Q1 2025. This information should be read in conjunction with the Condensed Consolidated Financial Statements and Management's Discussion & Analysis ("MD&A") for the quarters ended March 31st, 2026 and March 31st, 2025.
____________________1 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".
SUMMARY OF SELECTED FINANCIAL INFORMATION
3 months
Periods ended March 31
2026
2025
Δ
%
Financial info
Property rental income
6,935,208
6,848,977
86,231
1
%
Net income and
comprehensive income
2,482,142
10,181,260
(7,699,118
)
(76
%)
NOI(1)
5,005,617
4,976,365
29,252
1
%
FFO(1)
3,414,810
3,378,163
36,647
1
%
Normalized FFO(1)
3,414,810
3,378,163
36,647
1
%
AFFO(1)
3,333,201
3,298,952
34,249
1
%
EBITDA(1)
4,212,890
11,958,886
(7,745,996
)
(65
%)
Adjusted EBITDA(1)
4,616,040
4,785,862
(169,822
)
(4
%)
Investment properties
291,086,934
295,093,745
(4,006,811
)
(1
%)
Adjusted investment properties(1)
343,267,860
344,781,633
(1,513,773
)
(0
%)
Total assets
318,791,684
321,276,862
(2,485,178
)
(1
%)
Mortgages
136,781,293
142,478,077
(5,696,784
)
(4
%)
Current portion of mortgages
22,503,133
16,376,220
6,126,913
37
%
Credit facilities
9,065,000
13,545,000
(4,480,000
)
(33
%)
Total convertible debentures
3,902,070
5,866,277
(1,964,207
)
(33
%)
Total equity
140,030,079
138,056,530
1,973,549
1
%
Weighted average units o/s - basic
20,602,309
20,566,343
35,966
-
Amounts on a per unit basis
FFO(1)
0.166
0.164
0.002
1
%
Normalized FFO(1)
0.166
0.164
0.002
1
%
AFFO(1)
0.162
0.160
0.002
1
%
Distributions
0.088
0.086
0.002
2
%
(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 March 31, 2026, 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 March 31
2026
