Toronto, Ontario November 5, 2025 (BUSINESS WIRE) - Choice Properties Real Estate Investment Trust ("Choice Properties" or the "Trust") (TSX: CHP.UN) today announced its consolidated financial results for the three and nine months ended September 30, 2025. The Third Quarter Report to Unitholders is available in the Investors section of the Trust's website at www.choicereit.ca, and has been filed on SEDAR+ at www.sedarplus.ca.
"Choice Properties had another strong quarter, with Same-Asset NOI and FFO per unit growth reflecting positive tenant demand for our grocery-anchored retail portfolio and our well-located industrial assets," said Rael Diamond, President and Chief Executive Officer. "We continued to progress our commercial development pipeline, completing seven retail intensifications in the quarter, and we strengthened our financial position by extending our debt maturity profile. Looking ahead, we remain focused on disciplined financial management while creating long-term value for unitholders."
Reported net income for the quarter of $242.6 million compared to a net loss of $663.0 million in the same prior year period. The increase was primarily due to a favourable fair value adjustment in the Trust's Exchangeable Units(1) compared with an unfavourable adjustment in the prior year.
Reported FFO(2) per unit diluted of $0.278, an increase of 7.8% compared to the same prior year period.
FFO(2) per unit diluted excluding timing and certain non-recurring items increased by 3.5% compared to the same prior year period.
Period end occupancy increased by 20 bps from June 30, 2025 to 98.0%, with:
Retail at 97.8%, Industrial at 98.3%, and Mixed-Use & Residential at 95.5%,all as at September 30, 2025.
Achieved leasing spreads(3) on long-term renewals of 9.0% and 38.3% in the Retail and Industrial portfolios, respectively.
Same-Asset NOI on a cash basis(2) increased by 2.8% compared to the same prior year period.
Retail increased by 3.1%;
Industrial increased by 1.6%; and
Mixed-Use & Residential increased by 4.0%.
Completed $17.4 million of transactions in the quarter:
Acquired a 50% interest in a retail development in Nepean, ON for $8.7 million.
Disposed of the Trust's 50% interest in a retail property in Edmonton, AB for proceeds of $8.7 million.
Transferred $34.3 million of properties under development to income producing status, delivering approximately 107,000 square feet of new commercial GLA (including 22,000 square feet associated with ground leases) on a proportionate share basis(2) through retail intensifications.
Invested $107.2 million of capital in development projects on a proportionate share basis(2).
Issued $500.0 million of senior unsecured debentures; a portion of the proceeds from the issuance were used to repay approximately $448.3 million of maturing debt.
Maintained healthy and stable debt metrics with Adjusted Debt to EBITDAFV(2) of 7.1x, Adjusted Debt to Total Assets(2) at 40.6%, and Interest Coverage ratio(2) of 3.4x.
Maintained a strong liquidity position with approximately $1.4 billion of available credit and a $13.7 billion pool of unencumbered properties.
Subsequent EventsDisposed of five retail properties and one retail unit, classified as assets held for sale at quarter end, for proceeds of
$100.5 million on a proportionate share basis(2).
Transferred a portion of Building H at Choice Caledon Business Park, a new generation logistics facility located in Caledon, ON, from properties under development to income producing status, delivering approximately 624,000 square feet of industrial GLA, of which the Trust owns 85%.
(1) Exchangeable Units are required to be classified as financial liabilities at fair value through profit and loss under GAAP. They are recorded at their fair value based on the market trading price of the Trust Units, which results in a negative impact to the financial results when the Trust Unit price rises and a positive impact when the Trust Unit price declines.
(2) Refer to Non-GAAP Financial Measures and Additional Financial Information section.
(3) Long-term renewal spreads are calculated as the difference between the average rate during the renewal term and the expiring rental rate.