"We generated solid operating performance in the fourth quarter, underpinned by steady growth in unfurnished suite revenue of 1.9% and 23.6% growth in commercial revenue," said Jonathan Li, President and Chief Executive Officer of the REIT. "Our average monthly rent has continued to increase despite the impact of new rental supply across our markets and slower population growth, reflecting the effectiveness of our active management and strategic leasing initiatives. Overall, we were able to grow our Normalized FFO and AFFO per unit by prudent capital allocation and disciplined operating expense management which more than offset the loss of interest income from the repayment of two CDLs. Additionally, we are pleased with the advances in our organic growth strategy, as our two Toronto development projects, 610 Martin Grove and The Towns at York Mills & Leslie, recently welcomed their first tenants."
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1
This news release contains certain non-IFRS and other financial measures, including select information presented on a Proportionate Share Basis to include contributions from an equity-accounted joint venture. Refer to "Business Overview" in the REIT's MD&A for details on the inclusion of proportionate results and "Non-IFRS and Other Financial Measures" in this news release for a complete list of these measures and their meaning.
Q4 2025 Highlights
Same Property Portfolio ("SPP")2 revenue was $38.7 million, an increase of 1.7% compared to the fourth quarter ended December 31, 2024 ("Q4 2024");
Revenue of $38.9 million decreased by 1.3% compared to Q4 2024 due to the sale of Castleview in Ottawa, partially offset by higher SPP revenue;
SPP average monthly rent was $2,076, an increase of 3.9% compared to Q4 2024;
Average occupancy of unfurnished suites was 94.9%, compared to 96.3% in Q4 2024;
The REIT executed 390 new leases, achieving an average rental rate that was 0.9% higher than the expiring rents. The gain-to-lease potential on sitting rents was 6.0% as at December 31, 2025;
SPP annualized turnover was 25%, representing a 300 basis point increase compared to Q4 2024;
SPP Net Operating Income ("NOI") was $24.6 million, an increase of 2.8% compared to Q4 2024 and SPP NOI margin was 63.6%, an increase of 60 basis points ("bps") compared to Q4 2024;
Normalized Funds from Operations ("Normalized FFO") were $0.2432 per unit, an increase of 0.8% compared to $0.2413 per unit in Q4 2024;
Normalized Adjusted Funds from Operations ("Normalized AFFO") were $0.2174 per unit, an increase of 0.2% compared to $0.2170 per unit in Q4 2024;
Net loss and comprehensive loss was $228.6 million, compared to net income and comprehensive income of $91.1 million in Q4 2024;
The REIT welcomed the first tenants at 610 Martin Grove, a new Toronto development with 225 suites, including 100 affordable housing suites;
The REIT secured variable-rate construction financing of $48.7 million for The Towns at York Mills & Leslie project, of which approximately $9.6 million was drawn as at December 31, 2025. First occupancy for Phase 1 suites at this Toronto property occurred in early March 2026;
On November 4, 2025, the REIT announced that its Board of Trustees approved a 2.9% increase to the REIT's annual distribution, raising it from $0.5200 to $0.5350 per Unit. The monthly distribution increased to $0.04458 per Unit from $0.04333 per Unit; and
On December 15, 2025, the REIT declared a special non-cash distribution of $0.21 per Unit ("Special Distribution"). On December 31, 2025, in connection with the Special Distribution, the REIT issued 575,703 Units at a price of $13.3627 per Unit, for a total value of approximately $7.7 million. The Special Distribution was made to distribute a portion of the capital gains realized by the REIT from the sale of an investment property completed during FY 2025. Immediately following the issuance, the Units were consolidated such that each Unitholder held the same number of Units as each Unitholder held prior to the Special Distribution.
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2
The Same Property Portfolio represents 27 properties wholly and co-owned by the REIT for equivalent periods in 2025 and 2024.
FY 2025 Highlights
SPP revenue was $153.9 million, a 1.9% increase compared to the year ended December 31, 2024 ("FY 2024");
Revenue was $154.5 million, a decrease of 1.7% compared to FY 2024;
SPP NOI increased by 1.2% compared to FY 2024 and SPP NOI margin was 63.5%, a decrease of 50 bps compared to FY 2024;
Normalized FFO per unit of $0.9628 decreased by 1.0% compared to $0.9725 per unit for FY 2024, and Normalized AFFO per unit of $0.8611 decreased by 1.6% compared to $0.8749 per unit for FY 2024; and
Net loss and comprehensive loss was $244.2 million, compared to net income and comprehensive income of $63.2 million in FY 2024.
Entered the Metro Vancouver market in January 2025 through a 50% managing ownership interest in Lonsdale Square, a newly constructed 113-suite mixed-use property, for a purchase price of $53.0 million;
Completed the sale of a non-core Ottawa asset for $69.0 million in January 2025, resulting in net proceeds of $33.8 million that were used to fully repay the outstanding balance on the revolving credit facility at that time and purchase Units under the NCIB program;
Purchased the maximum number of Units available under the REIT's previously authorized NCIB. Since the inception of the previous NCIB, a total of 3,283,584 Units were purchased and cancelled at a weighted average purchase price of $13.37 per Unit, totalling $43.9 million; and,
In September 2025, the REIT published its 2024 Sustainability Report, which shares the REIT's progress in implementing sustainability initiatives and setting targets to further its objectives and goals across all its operations and with all its stakeholders.
The Arrangement
On January 5, 2026, the REIT entered into an arrangement agreement with Crestpoint Real Estate (Pine) Limited Partnership ("Crestpoint"), Minto Properties Inc. ("MPI"), and Minto Apartment GP Inc., in respect of a statutory plan of arrangement (the "Arrangement"). Under the terms of the Arrangement, among other things, Crestpoint will acquire all of the trust units of the REIT (each, a "Unit"), other than Units held directly or indirectly by MPI and certain senior officers of MPI and the REIT, for consideration of $18.00 per Unit in an all cash transaction.
The Arrangement was approved by the holders (the "Unitholders") of Units and special voting units of the REIT at a special meeting of Unitholders held on March 3, 2026.
The completion of the Arrangement remains subject to the waiver or satisfaction of conditions customary for transactions of this nature, including, among others: court and regulatory approvals, and the consent of Canada Mortgage and Housing Corporation and certain lenders to the REIT. Completion is expected to occur in the second half of 2026, after which the Units will be delisted from the Toronto Stock Exchange and the REIT will cease to be a reporting issuer.
Financial Summary
($000's except per unit and per suite amounts)
Three months ended December 31,
Year ended December 31,
2025
2024
Variance
2025
2024
Variance
Financial
Revenue from investment properties
$ 38,915
$ 39,434
(1.3) %
$ 154,457
$ 157,088
(1.7) %
Property operating costs
7,520
7,700
2.3 %
30,038
29,572
(1.6) %
Property taxes
3,836
3,916
2.0 %
15,236
15,760
3.3 %
Utilities
2,903
2,962
2.0 %
11,222
11,185
(0.3) %
NOI
$ 24,656
$ 24,856
(0.8) %
$ 97,961
$ 100,571
(2.6) %
NOI margin (%)
63.4 %
63.0 %
40 bps
63.4 %
64.0 %
(60) bps
Revenue - SPP
$ 38,691
$ 38,057
1.7 %
$ 153,920
$ 151,014
1.9 %
NOI - SPP
24,622
23,962
2.8 %
97,759
96,641
1.2 %
NOI margin (%) - SPP
63.6 %
63.0 %
60 bps
63.5 %
64.0 %
(50) bps
Net (loss) income and comprehensive (loss) income
(228,597)
91,093
nmf³
(244,226)
63,238
nmf³
Funds from Operations ("FFO")
11,090
15,828
(29.9) %
$ 56,798
$ 64,719
(12.2) %
FFO per unit
0.1778
0.2413
(26.3) %
0.8982
0.9859
(8.9) %
Adjusted Funds from Operations ("AFFO")
9,312
14,233
(34.6) %
50,008
58,307
(14.2) %
AFFO per unit
0.1493
0.2170
(31.2) %
0.7909
0.8882
(11.0) %
Distribution rate per unit
$ 0.1325
$ 0.1287
3.0 %
$ 0.5225
$ 0.5073
3.0 %
AFFO payout ratio
88.7 %
59.3 %
(2,940) bps
66.1 %
57.1 %
(900) bps
Normalized FFO
$ 15,170
$ 15,828
(4.2) %
$ 60,878
$ 63,844
(4.6) %
Normalized FFO per unit
0.2432
0.2413
0.8 %
0.9628
0.9725
(1.0) %
Normalized AFFO
13,565
14,233
(4.7) %
54,448
57,432
(5.2) %
Normalized AFFO per unit
$ 0.2174
$ 0.2170
0.2 %
$ 0.8611
$ 0.8749
(1.6) %
Normalized AFFO payout ratio
60.9 %
59.3 %
(160) bps
60.7 %
58.0 %
(270) bps
Operating - Proportionate Share Basis
