Choice Properties Real Estate Investment TrustTSX: CHP.UN

Choice Properties Real Estate Investment Trust Reports Results for the Nine Months Ended September 30, 2025

Nov 5, 2025 at 10:00 PM UTC · Issued by Choice Properties Real Estate Investment Trust via Business Wire

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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 robust 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.”

2025 Third Quarter Highlights

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 basis points from June 30, 2025 to 98.0%, with:
- Retail at 97.8%, Industrial at 98.3%, and Mixed-Use & Residential at 95.5%, 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 Events

Disposed 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.

Summary of GAAP Basis Financial Results

($ thousands except where otherwise indicated) (unaudited)	Three Months								Nine Months
($ thousands except where otherwise indicated) (unaudited)	September 30, 2025		September 30, 2024			Change $			September 30, 2025			September 30, 2024			Change $
Net income (loss)	$	242,649	$	(662,989	)	$	905,638		$	(7,831	)	$	(7,479	)	$	(352	)

Net income (loss) per unit diluted		0.335		(0.916	)		1.251			(0.011	)		(0.010	)		(0.001	)

Rental revenue		362,486		339,898			22,588			1,060,177			1,013,244			46,933

Fair value gain (loss) on Exchangeable Units ⁽ⁱ⁾		67,284		(906,351	)		973,635			(534,312	)		(467,028	)		(67,284	)

Fair value gains excluding Exchangeable Units ⁽ⁱⁱ⁾		60,515		136,817			(76,302	)		183,185			108,045			75,140

Cash flows from operating activities		165,808		203,902			(38,094	)		465,206			482,288			(17,082	)

Weighted average number of units outstanding - diluted ⁽ⁱⁱⁱ⁾		723,810,797		723,683,222			127,575			723,797,571			723,665,943			131,628

(i)		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.
(ii)		Fair value gains (losses) excluding Exchangeable Units includes adjustments to fair value of investment properties, investment in real estate securities, and unit-based compensation.
(iii)		Includes Trust Units and Exchangeable Units.

Quarterly Results

Choice Properties reported net income of $242.6 million for the third quarter of 2025 compared to a net loss of $663.0 million in the same prior year period. The increase of $905.6 million was primarily due to changes in certain non-cash adjustments to fair value including:

a $973.6 million favourable change in the adjustment to fair value of the Trust’s Exchangeable Units due to the decrease in the Trust’s unit price; partially offset by
a $63.5 million unfavourable change in the adjustment to fair value of investment properties; and
a $15.7 million favourable change in the adjustment to fair value of the investment in real estate securities of Allied, driven by the change in Allied’s unit price in the quarter.

Further contributing to the increase was higher net operating income of $17.1 million.

Year-to-Date Results

Choice Properties reported a net loss of $7.8 million for the nine months ended September 30, 2025 compared to a net loss of $7.5 million in the same prior year period. The decrease of $0.3 million was primarily due to changes in certain non-cash adjustments to fair value including:
a $67.3 million unfavourable change in the adjustment to fair value of the Trust’s Exchangeable Units due to the increase in the Trust’s unit price; partially offset by
a $33.3 million favourable change in the adjustment to fair value of investment properties; and
a $41.9 million favourable change in the adjustment to fair value of the investment in real estate securities of Allied, driven by the change in Allied’s unit price in the quarter.

In addition to the fair value changes described above, the reversal of a $38.6 million transaction-related provision during the second quarter of 2024 further contributed to the decrease. The decrease was partially offset by higher net operating income of $32.5 million.

Summary of Proportionate Share ⁽²⁾ Financial Results

As at or for the periods ended ($ thousands except where otherwise indicated)	Three Months									Nine Months
	September 30, 2025			September 30, 2024			Change $			September 30, 2025			September 30, 2024			Change $
Rental revenue ⁽ⁱ⁾	$	387,806		$	361,608		$	26,198		$	1,136,127		$	1,081,268		$	54,859

Net Operating Income (“NOI”), Cash Basis ⁽ⁱ⁾		270,734			255,952			14,782			801,203			764,153			37,050

Same-Asset NOI, Cash Basis ⁽ⁱ⁾		251,506			244,553			6,953			748,791			731,632			17,159

Adjustment to fair value of investment properties ⁽ⁱ⁾		13,305			82,793			(69,488	)		144,318			104,775			39,543

Occupancy (% of GLA)		98.0	%		97.7	%		0.3	%		98.0	%		97.7	%		0.3	%

Funds from operations (“FFO”) ⁽ⁱ⁾		201,416			186,647			14,769			583,922			558,550			25,372

FFO ⁽ⁱ⁾ per unit diluted		0.278			0.258			0.020			0.807			0.772			0.035

Adjusted funds from operations (“AFFO”) ⁽ⁱ⁾		139,054			165,876			(26,822	)		486,264			515,622			(29,358	)

AFFO ⁽ⁱ⁾ per unit diluted		0.192			0.229			(0.037	)		0.672			0.713			(0.041	)

AFFO ⁽ⁱ⁾ payout ratio - diluted		100.2	%		82.9	%		17.3	%		85.7	%		79.8	%		5.9	%

Cash distributions declared		139,334			137,499			1,835			416,789			411,278			5,511

Weighted average number of units outstanding - diluted ⁽ⁱⁱ⁾		723,810,797			723,683,222			127,575			723,797,571			723,665,943			131,628

(i)		Refer to Non-GAAP Financial Measures and Additional Financial Information section.
(ii)		Includes Trust Units and Exchangeable Units.

Quarterly and Year-to-Date Results

For the three and nine months ended September 30, 2025, Same-Asset NOI, Cash Basis ⁽²⁾ increased by $7.0 million and $17.2 million, respectively, compared to the same prior year periods primarily due to increased revenue from higher rental rates on renewals, new leasing, and contractual rent steps mainly in the retail and industrial portfolios. In addition, the increase for the nine month period included a property tax incentive recognized in the mixed-use and residential portfolio in the first quarter of 2025, partially offset by the impact of a bad debt provision reversal in the second quarter of 2024 in the industrial portfolio following the resolution of a tenant dispute.

FFO ⁽²⁾ increased by $14.8 million, or 7.8% per unit diluted, and $25.4 million, or 4.5% per unit diluted, for the three and nine months ended September 30, 2025, respectively. The increase was primarily due to an increase in net operating income and lower general and administrative expenses, partially offset by lower interest income and higher interest expense.

FFO ⁽²⁾ for the three month period was impacted by timing differences related to higher lease surrender revenue of $5.0 million in the current year, as well as non-recurring general and administrative expenses of $3.3 million in the prior year related to outsourcing and one-time costs. Adjusting for these items, FFO ⁽²⁾ increased by $6.5 million, or 3.5% per unit diluted for the three month period.

AFFO ⁽²⁾ decreased by $26.8 million and $29.4 million for the three and nine months ended September 30, 2025, respectively. The decrease was primarily due to the impact of maintenance capital projects commencing earlier in the current year, partially offset by the increase in FFO ⁽²⁾ as noted above. AFFO is impacted by the seasonality inherent in the timing of executing capital projects. For the year 2025, AFFO payout ratio is expected to be relatively consistent with prior year.

Outlook

We are focused on capital preservation, delivering stable and growing cash flows and net asset value appreciation. Our high-quality portfolio is primarily leased to necessity-based tenants and logistics providers, who are less sensitive to economic volatility and therefore provide stability to our overall portfolio. We will continue to advance our development program, with a focus on commercial developments, which provides us with the best opportunity to add high-quality real estate to our portfolio at a reasonable cost and drive net asset value appreciation over time.

We are confident that our business model, stable tenant base, strong balance sheet, and disciplined approach to financial management will continue to benefit us. Supported by the strength of our year-to-date financial and operating performance, we have raised our 2025 outlook for FFO per unit diluted. In 2025, Choice Properties is now targeting:

Stable occupancy across the portfolio, resulting in approximately 2%-3% year-over-year growth in Same-Asset NOI, Cash Basis;
Annual FFO per unit diluted in a range of $1.06 to $1.07, reflecting approximately 3%-4% year-over-year growth; and
Strong leverage metrics, targeting Adjusted Debt to EBITDAFV below 7.5x.

Non-GAAP Financial Measures and Additional Financial Information

In addition to using performance measures determined in accordance with International Financial Reporting Standards (“IFRS” or “GAAP”), Choice Properties also measures its performance using certain non-GAAP measures, and provides these measures in this news release so that investors may do the same. Such measures and related per-unit amounts are not defined by IFRS and therefore should not be construed as alternatives to net income or cash flows from operating activities determined in accordance with IFRS. Furthermore, the supplemental measures used by management may not be comparable to similar measures presented by other real estate investment trusts or enterprises. The non-GAAP measures included in this news release are defined and reconciled to the most comparable GAAP measure below. Choice Properties believes these non-GAAP financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the Trust for the reasons outlined below.

Non-GAAP Measure	Description
Proportionate Share	Represents financial information adjusted to reflect the Trust’s equity accounted joint ventures and financial real estate assets and its share of net income (loss) from equity accounted joint ventures and financial real estate assets on a proportionately consolidated basis at the Trust’s ownership percentage of the related investment. Management views this method as relevant in demonstrating the Trust's ability to manage the underlying economics of the related investments, including the financial performance and cash flows and the extent to which the underlying assets are leveraged, which is an important component of risk management.
Net Operating Income (“NOI”), Accounting Basis	Defined as property rental revenue including straight-line rental revenue, reimbursed contract revenue and lease surrender revenue, less direct property operating expenses and realty taxes, and excludes certain expenses such as interest expense and indirect operating expenses in order to provide results that reflect a property’s operations before consideration of its financing or the costs of operating the entity in which it is held. Management believes that NOI is an important measure of operating performance for the Trust’s commercial real estate assets that is used by real estate industry analysts, investors and management, while also being a key input in determining the fair value of the Choice Properties portfolio.
NOI, Cash Basis	Defined as property rental revenue and reimbursed contract revenue, excluding straight-line rental revenue and lease surrender revenue, less direct property operating expenses and realty taxes, and excludes certain expenses such as interest expense and indirect operating expenses in order to provide results that reflect a property’s operations before consideration of its financing or the costs of operating the entity in which it is held. Management believes NOI, Cash Basis is a useful measure in understanding period-over-period changes in income from operations due to occupancy, rental rates, operating costs and realty taxes.
Same-Asset NOI, Cash Basis and Same-Asset NOI, Accounting Basis	Same-Asset NOI is used to evaluate the period-over-period performance of those commercial properties and stabilized residential properties, owned and operated by Choice Properties since January 1, 2024, inclusive. NOI from properties that have been (i) purchased, (ii) disposed, (iii) subject to significant change as a result of new development, redevelopment, expansion, or demolition, or (iv) residential properties not yet stabilized (collectively, “Transactions”) are excluded from the determination of Same-Asset NOI. Same-Asset NOI, Cash Basis, is useful in evaluating the realization of contractual rental rate changes embedded in lease agreements and/or the expiry of rent-free periods, while also being a useful measure in understanding period-over-period changes in NOI due to occupancy, rental rates, operating costs and realty taxes, before considering the changes in NOI that can be attributed to Transactions and development activities.
Funds from Operations (“FFO”)	Calculated in accordance with the Real Property Association of Canada’s (“REALPAC”) Funds From Operations (FFO) & Adjusted Funds From Operations (AFFO) for IFRS issued in January 2022. Management considers FFO to be a useful measure of operating performance as it adjusts for items included in net income (or loss) that do not arise from operating activities or do not necessarily provide an accurate depiction of the Trust’s past or recurring performance, such as adjustments to fair value of Exchangeable Units, investment properties, investment in real estate securities, and unit-based compensation. From time to time, the Trust may enter into transactions that materially impact the calculation and are eliminated from the calculation for management’s review purposes. Management uses and believes that FFO is a useful measure of the Trust’s performance that, when compared period over period, reflects the impact on operations of trends in occupancy levels, rental rates, operating costs and realty taxes, acquisition activities and interest costs.
Adjusted Funds from Operations (“AFFO”)	Calculated in accordance with REALPAC’s Funds From Operations (FFO) & Adjusted Funds From Operations (AFFO) for IFRS issued in January 2022. Management considers AFFO to be a useful measure of operating performance as it further adjusts FFO for capital expenditures that sustain income producing properties and eliminates the impact of straight-line rental revenue. AFFO is impacted by the seasonality inherent in the timing of executing property capital projects. In calculating AFFO, FFO is adjusted to exclude straight-line rental revenue, and deduct expenditure relating to internal leasing activities and property capital projects. Working capital changes, viewed as short-term cash requirements or surpluses are deemed financing activities pursuant to the methodology and are not considered when calculating AFFO. Capital expenditures which are not deducted in the calculation of AFFO comprise those which generate a new investment stream, such as constructing a new retail pad during property expansion or intensification, development activities or acquisition activities. Accordingly, AFFO differs from FFO in that AFFO excludes from its definition certain non-cash revenues and expenses recognized under GAAP, such as straight-line rental revenue, but also includes capital and leasing costs incurred during the period which are capitalized for GAAP purposes. From time to time, the Trust may enter into transactions that materially impact the calculation and are eliminated from the calculation for management’s review purposes.
AFFO Payout Ratio	AFFO payout ratio is a supplementary measure used by Management to assess the sustainability of the Trust's distribution payments. The ratio is calculated using cash distributions declared divided by AFFO.
Earnings before Interest, Taxes, Depreciation, Amortization and Fair Value (“EBITDAFV”)	Defined as net income (loss) attributable to Unitholders, reversing, where applicable, income taxes, interest expense, amortization expense, depreciation expense, adjustments to fair value and other adjustments as allowed in the Trust Indentures, as supplemented. Management believes EBITDAFV is useful in assessing the Trust’s ability to service its debt, finance capital expenditures and provide distributions to its Unitholders.
Total Adjusted Debt	Defined as variable rate debt (construction loans, mortgages, and credit facility) and fixed rate debt (senior unsecured debentures, construction loans and mortgages), as measured on a proportionate share basis, and does not include the Exchangeable Units which are included as part of unit equity on account of the Exchangeable Units being economically equivalent and receiving equal distributions to the Trust Units. Total Adjusted Debt is presented on a net basis to include the impact of other finance charges such as debt placement costs and discounts or premiums, and defeasance or other prepayments of debt.
Net Asset Value (“NAV”)	NAV is an alternative measurement of equity. It is calculated by summing Unitholder’s Equity and the fair value of the Trust’s Exchangeable Units. Under GAAP, Exchangeable Units are considered debt. The Exchangeable Units are not required to be repaid and the holder of these units has the right to convert them into Units, therefore management considers the Exchangeable Units to be equivalent to equity. NAV is a useful measure as it reflects management’s view of the intrinsic value of the Trust. NAV per unit allows management to determine if the Trust is trading at a discount or premium to its intrinsic value.
Adjusted Debt to EBITDAFV and Adjusted Debt to EBITDAFV, net of cash	Calculated as Total Adjusted Debt divided by EBITDAFV. This ratio is used to assess the financial leverage of Choice Properties, measure its ability to meet financial obligations, and provide a snapshot of its balance sheet strength. Management also presents this ratio with Total Adjusted Debt calculated net of cash and cash equivalents at the measurement date.
Interest Coverage	Calculated as EBITDAFV divided by interest expense on the Total Adjusted Debt incurred by Choice Properties for the period. This ratio is useful in determining Choice Properties’ ability to service the interest requirements of its outstanding debt.

The following table reconciles net income (loss), as determined in accordance with GAAP, to net income (loss) on a proportionate share basis ⁽²⁾ for the three and nine months ended September 30, 2025:

		Three Months									Nine Months
($ thousands)		GAAP Basis			Adjustment to Proportionate Share Basis ⁽²⁾			Proportionate Share Basis ⁽²⁾			GAAP Basis			Adjustment to Proportionate Share Basis ⁽²⁾			Proportionate Share Basis ⁽²⁾
Net Operating Income
	Rental revenue	$	362,486		$	25,320		$	387,806		$	1,060,177		$	75,950		$	1,136,127
	Property operating costs		(98,354	)		(7,894	)		(106,248	)		(298,640	)		(23,338	)		(321,978	)
			264,132			17,426			281,558			761,537			52,612			814,149
Other Income and Expenses
	Interest income		11,374			(3,969	)		7,405			32,063			(11,172	)		20,891
	Investment income		5,315			—			5,315			15,945			—			15,945
	Fee income		736			—			736			3,944			—			3,944
	Net interest expense and other financing charges		(151,716	)		(6,854	)		(158,570	)		(446,862	)		(20,531	)		(467,393	)
	General and administrative expenses		(15,970	)		—			(15,970	)		(45,683	)		—			(45,683	)
	Share of income from equity accounted joint ventures		1,232			(1,232	)		—			23,107			(23,107	)		—
	Amortization of intangible assets		(250	)		—			(250	)		(750	)		—			(750	)
	Adjustment to fair value of unit-based compensation		(438	)		—			(438	)		(1,331	)		—			(1,331	)
	Adjustment to fair value of Exchangeable Units		67,284			—			67,284			(534,312	)		—			(534,312	)
	Adjustment to fair value of investment properties		18,676			(5,371	)		13,305			142,120			2,198			144,318
	Adjustment to fair value of investment in real estate securities		42,277			—			42,277			42,396			—			42,396
Income (Loss) before Income Taxes			242,652			—			242,652			(7,826	)		—			(7,826	)
	Income tax expense		(3	)		—			(3	)		(5	)		—			(5	)
Net Income (Loss)		$	242,649		$	—		$	242,649		$	(7,831	)	$	—		$	(7,831	)

The following table reconciles net loss, as determined in accordance with GAAP, to net loss on a proportionate share basis ⁽²⁾ for the three and nine months ended September 30, 2024:

		Three Months									Nine Months
($ thousands)		GAAP Basis			Adjustment to Proportionate Share Basis ⁽²⁾			Proportionate Share Basis ⁽²⁾			GAAP Basis			Adjustment to Proportionate Share Basis ⁽²⁾			Proportionate Share Basis ⁽²⁾
Net Operating Income
	Rental revenue	$	339,898		$	21,710		$	361,608		$	1,013,244		$	68,024		$	1,081,268
	Property operating costs		(92,893	)		(7,616	)		(100,509	)		(284,193	)		(23,903	)		(308,096	)
			247,005			14,094			261,099			729,051			44,121			773,172
	Residential Inventory Income
	Gross sales		—			—			—			11,268			—			11,268
	Cost of sales		—			—			—			(9,234	)		—			(9,234	)
			—			—			—			2,034			—			2,034
Other Income and Expenses
	Interest income		17,312			(4,061	)		13,251			42,346			(12,136	)		30,210
	Investment income		5,315			—			5,315			15,945			—			15,945
	Fee income		1,351			—			1,351			2,677			—			2,677
	Net interest expense and other financing charges		(150,410	)		(5,423	)		(155,833	)		(438,898	)		(16,599	)		(455,497	)
	General and administrative expenses		(19,008	)		—			(19,008	)		(50,846	)		—			(50,846	)
	Share of income from equity accounted joint ventures		5,230			(5,230	)		—			11,318			(11,318	)		—
	Amortization of intangible assets		(250	)		—			(250	)		(750	)		—			(750	)
	Transaction costs and other related expenses		—			—			—			38,615			—			38,615
	Adjustment to fair value of unit-based compensation		(3,339	)		—			(3,339	)		(1,270	)		—			(1,270	)
	Adjustment to fair value of Exchangeable Units		(906,351	)		—			(906,351	)		(467,028	)		—			(467,028	)
	Adjustment to fair value of investment properties		82,173			620			82,793			108,843			(4,068	)		104,775
	Adjustment to fair value of investment in real estate securities		57,983			—			57,983			472			—			472
Loss before Income Taxes			(662,989	)		—			(662,989	)		(7,491	)		—			(7,491	)
	Income tax recovery		—			—			—			12			—			12
Net Loss		$	(662,989	)	$	—		$	(662,989	)	$	(7,479	)	$	—		$	(7,479	)

The following table reconciles net income (loss), as determined in accordance with GAAP, to Net Operating Income, Cash Basis for the periods ended as indicated:

For the periods ended September 30 ($ thousands)	Three Months									Nine Months
For the periods ended September 30 ($ thousands)		2025			2024		Change $				2025			2024		Change $
Net Income (Loss)	$	242,649		$	(662,989	)	$	905,638		$	(7,831	)	$	(7,479	)	$	(352	)
Residential inventory income		—			—			—			—			(2,034	)		2,034
Interest income		(11,374	)		(17,312	)		5,938			(32,063	)		(42,346	)		10,283
Investment income		(5,315	)		(5,315	)		—			(15,945	)		(15,945	)		—
Fee income		(736	)		(1,351	)		615			(3,944	)		(2,677	)		(1,267	)
Net interest expense and other financing charges		151,716			150,410			1,306			446,862			438,898			7,964
General and administrative expenses		15,970			19,008			(3,038	)		45,683			50,846			(5,163	)
Share of income from equity accounted joint ventures		(1,232	)		(5,230	)		3,998			(23,107	)		(11,318	)		(11,789	)
Amortization of intangible assets		250			250			—			750			750			—
Transaction costs and other related expenses		—			—			—			—			(38,615	)		38,615
Adjustment to fair value of unit-based compensation		438			3,339			(2,901	)		1,331			1,270			61
Adjustment to fair value of Exchangeable Units		(67,284	)		906,351			(973,635	)		534,312			467,028			67,284
Adjustment to fair value of investment properties		(18,676	)		(82,173	)		63,497			(142,120	)		(108,843	)		(33,277	)
Adjustment to fair value of investment in real estate securities		(42,277	)		(57,983	)		15,706			(42,396	)		(472	)		(41,924	)
Income tax expense (recovery)		3			—			3			5			(12	)		17
Net Operating Income, Accounting Basis - GAAP		264,132			247,005			17,127			761,537			729,051			32,486
Straight-line rental revenue		411			346			65			1,348			1,519			(171	)
Lease surrender revenue		(9,892	)		(4,873	)		(5,019	)		(10,050	)		(8,646	)		(1,404	)
Net Operating Income, Cash Basis - GAAP		254,651			242,478			12,173			752,835			721,924			30,911
Adjustments for equity accounted joint ventures and financial real estate assets		16,083			13,474			2,609			48,368			42,229			6,139
Net Operating Income, Cash Basis - Proportionate Share ⁽²⁾	$	270,734		$	255,952		$	14,782		$	801,203		$	764,153		$	37,050

The following table reconciles Net Operating Income, Cash Basis to Same-Asset Net Operating Income, Cash Basis for the periods ended as indicated:

For the periods ended September 30 ($ thousands)	Three Months									Nine Months
For the periods ended September 30 ($ thousands)		2025			2024		Change $				2025			2024		Change $
Net Operating Income, Cash Basis - Proportionate Share ⁽²⁾	$	270,734		$	255,952		$	14,782		$	801,203		$	764,153		$	37,050
Less:
Transactions NOI, Cash Basis		(19,228	)		(11,399	)		(7,829	)		(52,412	)		(32,521	)		(19,891	)
Same-Asset NOI, Cash Basis	$	251,506		$	244,553		$	6,953		$	748,791		$	731,632		$	17,159

The following table reconciles net income (loss), as determined in accordance with GAAP, to Funds from Operations for the periods ended as indicated:

For the periods ended September 30 ($ thousands except where otherwise indicated)	Three Months									Nine Months
		2025			2024		Change $				2025			2024		Change $
Net Income (Loss)	$	242,649		$	(662,989	)	$	905,638		$	(7,831	)	$	(7,479	)	$	(352	)
Add (deduct) impact of the following:
Amortization of intangible assets		250			250			—			750			750			—
Transaction costs and other related expenses		—			—			—			—			(38,615	)		38,615
Adjustment to fair value of unit-based compensation		438			3,339			(2,901	)		1,331			1,270			61
Adjustment to fair value of Exchangeable Units		(67,284	)		906,351			(973,635	)		534,312			467,028			67,284
Adjustment to fair value of investment properties		(18,676	)		(82,173	)		63,497			(142,120	)		(108,843	)		(33,277	)
Adjustment to fair value of investment properties to proportionate share ⁽²⁾		5,371			(620	)		5,991			(2,198	)		4,068			(6,266	)
Adjustment to fair value of investment in real estate securities		(42,277	)		(57,983	)		15,706			(42,396	)		(472	)		(41,924	)
Interest otherwise capitalized for development in equity accounted joint ventures		2,295			3,119			(824	)		7,131			8,696			(1,565	)
Exchangeable Units distributions		76,189			75,199			990			227,907			224,938			2,969
Internal expenses for leasing		2,458			2,154			304			7,031			7,221			(190	)
Income tax expense (recovery)		3			—			3			5			(12	)		17
Funds from Operations	$	201,416		$	186,647		$	14,769		$	583,922		$	558,550		$	25,372
FFO per unit - diluted	$	0.278		$	0.258		$	0.020		$	0.807		$	0.772		$	0.035
Weighted average number of units outstanding - diluted ⁽ⁱ⁾		723,810,797			723,683,222			127,575			723,797,571			723,665,943			131,628

(i) Includes Trust Units and Exchangeable Units.

The following table reconciles Funds from Operations to Adjusted Funds from Operations for the periods ended as indicated:

	Three Months									Nine Months
For the periods ended September 30 ($ thousands except where otherwise indicated)		2025			2024		Change $				2025			2024		Change $
Funds from Operations	$	201,416		$	186,647		$	14,769		$	583,922		$	558,550		$	25,372
Add (deduct) impact of the following:
Internal expenses for leasing		(2,458	)		(2,154	)		(304	)		(7,031	)		(7,221	)		190
Straight-line rental revenue		411			346			65			1,348			1,519			(171	)
Straight-line rental revenue adjustment to proportionate share ⁽²⁾		(1,343	)		(620	)		(723	)		(4,244	)		(1,892	)		(2,352	)
Property capital		(41,688	)		(11,890	)		(29,798	)		(54,288	)		(18,890	)		(35,398	)
Direct leasing costs		(2,879	)		(2,890	)		11			(6,654	)		(6,086	)		(568	)
Tenant improvements		(13,582	)		(2,295	)		(11,287	)		(22,396	)		(6,690	)		(15,706	)
Operating capital expenditures adjustment to proportionate share ⁽²⁾		(823	)		(1,268	)		445			(4,393	)		(3,668	)		(725	)
Adjusted Funds from Operations	$	139,054		$	165,876		$	(26,822	)	$	486,264		$	515,622		$	(29,358	)
AFFO per unit - diluted	$	0.192		$	0.229		$	(0.037	)	$	0.672		$	0.713		$	(0.041	)
AFFO payout ratio - diluted ⁽ⁱ⁾		100.2	%		82.9	%		17.3	%		85.7	%		79.8	%		5.9	%
Distribution declared per unit	$	0.193		$	0.190		$	0.003		$	0.577		$	0.568		$	0.009
Weighted average number of units outstanding - diluted ⁽ⁱⁱ⁾		723,810,797			723,683,222			127,575			723,797,571			723,665,943			131,628

(i)		AFFO payout ratio is calculated as cash distributions declared divided by AFFO.
(ii)		Includes Trust Units and Exchangeable Units.

The following table reconciles Net Asset Value ⁽²⁾ as at the dates indicated below:


($ thousands except where otherwise indicated)	As at September 30, 2025		As at December 31, 2024		Change $

Unitholders’ equity	$	4,700,404	$	4,899,800	$	(199,396	)
Exchangeable Units		5,818,062		5,283,750		534,312
NAV ⁽²⁾	$	10,518,466	$	10,183,550	$	334,916
NAV ⁽²⁾ per unit	$	14.53	$	14.07	$	0.46
Trust Units and Exchangeable Units, end of period		723,810,797		723,710,497		100,300

Management’s Discussion and Analysis and Consolidated Financial Statements and Notes

Information appearing in this news release is a select summary of results. This news release should be read in conjunction with the Choice Properties Third Quarter Report to Unitholders, which includes the unaudited interim period condensed consolidated financial statements and MD&A for the Trust, and is available at www.choicereit.ca and on SEDAR+ at www.sedarplus.ca .

Conference Call and Webcast

Management will host a conference call on Thursday, November 6, 2025 at 9:00 AM (EDT) with a simultaneous audio webcast. To access via teleconference, please dial +1 (240) 789-2714 or +1 (888) 330-2454 and enter the event passcode: 4788974. The link to the audio webcast will be available on www.choicereit.ca/events-webcasts .

About Choice Properties Real Estate Investment Trust

Choice Properties is a leading Real Estate Investment Trust that creates enduring value through places where people thrive.

We are more than a national owner, operator and developer of high-quality commercial and residential real estate. We believe in creating spaces that enhance how our tenants and communities come together to live, work, and connect. This includes our industry leadership in integrating environmental, social and economic sustainability practices into all aspects of our business. In everything we do, we are guided by a shared set of values grounded in Care, Ownership, Respect and Excellence. For more information, visit Choice Properties’ website at www.choicereit.ca and Choice Properties’ issuer profile at www.sedarplus.ca .

Cautionary Statements Regarding Forward-looking Statements

This news release contains forward-looking statements relating to Choice Properties’ operations and the environment in which the Trust operates, which are based on management’s expectations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. Management undertakes no obligation to publicly update any such statement, to reflect new information or the occurrence of future events or circumstances, except as required by law.

Numerous risks and uncertainties could cause the Trust’s actual results to differ materially from those expressed, implied or projected in the forward-looking statements, including those described in Section 12 “Enterprise Risks and Risk Management” of the Trust’s MD&A for the year ended December 31, 2024 and those described in the Trust’s Annual Information Form for the year ended December 31, 2024.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251103932385/en/

For further information, please contact investor@choicereit.ca

Erin Johnston
Chief Financial Officer
e: Erin.Johnston@choicereit.ca

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