Canadian Net REIT Announces 2025 Second-Quarter Results
MONTRÉAL, Aug. 19, 2025 (GLOBE NEWSWIRE) -- Canadian Net Real Estate Investment Trust ("Canadian Net" or the "REIT") (TSXV:NET) today reported its results for the quarter ended June 30th, 2025 ("Q2 2025") and distributions for October, November and December 2025.
"We are pleased with our second quarter results, highlighted by an 8% year-to-date increase in FFO per unit1," said Kevin Henley, President and CEO. "This quarter reflects the full impact of our recently acquired properties, demonstrating the success of our disciplined growth strategy. Our ability to generate accretive results through our capital recycling program continues to strengthen the REIT and create value for our unitholders.
Our focused portfolio of single-tenant, triple-net, and necessity-based properties remains resilient and highly sought-after, as demonstrated by our continued 100% occupancy rate. In addition, our conservative payout ratio of 52% not only supports our recently announced distribution increase, but also provides room for further growth and long-term stability. Looking ahead, we remain confident in our ability to deliver sustainable performance and continue building on this solid foundation."
RESULTS FOR Q2 2025
Canadian Net reported Funds from operations1 ("FFO") of $3.4 million, or $0.166 per unit, an increase of 8% compared to $3.2 million, or $0.154 per unit, for the quarter ended June 30, 2024 ("Q2 2024").
Rental income was $6.9 million in Q2 2025, an increase of 4.4% from Q2 2024. Net Operating Income1 ("NOI") in Q2 2025 was $5.0 million, an increase of 4.9% from Q2 2024, reflecting an increase in rental income due to property acquisitions.
The REIT generated a net loss attributable to unitholders of $1.35 million in Q2 2025 compared to a net loss of $8.92 million in Q2 2024.
RESULTS FOR THE 6-MONTH PERIOD ENDED JUNE 30, 2025
Canadian Net reported FFO1 of $6.8 million, or $0.330 per unit, an increase of 8% compared to $6.3 million, or $0.306 per unit for the 6-month period ended June 30, 2024.
Rental income was $13.7 million for the 6-month period ended June 30, 2025, an increase of 4.6% from the same period in 2024. NOI1 over the 6-month period ended June 30, 2025 was $10.0 million, an increase of 4.1% from the same period in 2024, reflecting an increase in rental income due to property acquisitions.
The REIT generated a net income attributable to unitholders of $8.8 million for the 6-month period ended June 30, 2025 compared to a net loss of $7.7 million for the same period last year.
The increase in 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
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 October 31st, November 28th and December 31st, 2025, to unitholders of record on October 15th, November 14th and December 15th, 2025, respectively.
The tables below represent other financial highlights and the reconciliations of certain non-IFRS measures for Q2 2025 and Q2 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 June 30th, 2025 and June 30th, 2024.
SUMMARY OF SELECTED FINANCIAL INFORMATION
6 months
Periods ended June 30
2025
2024
Δ
%
Financial info
Property rental income
13,734,937
13,133,535
601,402
5
%
Net income and comprehensive income (loss)
8,832,067
(7,655,470
)
16,487,537
(215
%)
NOI (1)
10,005,893
9,613,679
392,214
4
%
FFO (1)
6,790,199
6,293,681
496,518
8
%
AFFO (1)
6,529,328
5,932,783
596,545
10
%
EBITDA (1)
12,396,330
(4,050,096
)
16,446,426
(406
%)
Adjusted EBITDA (1)
9,777,061
9,494,836
282,225
3
%
Investment properties
291,323,830
258,260,480
33,063,350
13
%
Adjusted investment properties (1)
340,766,823
316,875,874
23,890,949
8
%
Total assets
316,838,323
293,750,859
23,087,464
8
%
Mortgages
143,165,499
128,394,304
14,771,195
12
%
Current portion of mortgages and long-term debt
15,248,467
15,878,598
(630,131
)
(4
%)
Mortgages on investment properties held for sale
-
3,673,379
(3,673,379
)
(100
%)
Credit facilities
12,565,000
17,725,000
(5,160,000
)
(29
%)
Total convertible debentures
6,014,304
5,789,159
225,145
4
%
Total equity
134,930,711
118,446,204
16,484,507
14
%
Weighted average units o/s - basic
20,582,076
20,546,748
35,328
-
Amounts on a per unit basis
FFO(1)
0.330
0.306
0.024
8
%
AFFO(1)
0.317
0.289
0.028
10
%
Distributions
0.173
0.173
-
-
(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, 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 June 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 June 30
2025
2024
Δ
Investment Properties
Developed properties
291,323,830
258,260,480
13
%
Investment properties held for sale
-
10,900,842
(100
%)
Joint Venture Ownership(1)
Developed properties
47,550,096
45,587,872
4
%
Properties under development
1,892,897
2,126,680
(11
%)
Adjusted Investment Properties(2)
340,766,823
316,875,874
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
6 months
Periods ended June 30
2025
2024
Δ
2025
2024
Δ
Rental Income
6,885,960
6,593,938
292,022
13,734,937
13,133,535
601,402
Operating expenses
(1,856,432
)
(1,798,446
)
(57,986
)
(3,729,044
)
(3,519,856
)
(209,188
)
Net Operating Income(1)
5,029,528
4,795,492
234,036
10,005,893
9,613,679
392,214
Share of net income from
investments in joint ventures
(195,866
)
(501,516
)
305,650
335,360
(288,579
)
623,939
Change in fair values
