Fourth Quarter and Fiscal 2025 Highlights
Net operating income (NOI) increased year-over-year by 9.6% in the fourth quarter and by 8.4% for Fiscal 2025
Same Property NOI* rose 8.1% in the fourth quarter and 8.0% in Fiscal 2025, led by industrial Same Property NOI* growth of 9.1% and 8.8% for the respective periods
Funds from Operations* (FFO) increased by 14.3% in the fourth quarter and by 11.2% for Fiscal 2025
Completed sale of 17 non-core properties totalling approximately 421,050 square feet of gross leasable area ("GLA") for total gross proceeds of $71.2M
Completed the acquisition of seven industrial properties from Parkit Enterprise Inc. ("Parkit") in Winnipeg, Manitoba, totalling approximately 702,842 square feet for gross proceeds of $101.9 million
Subsequent to year-end, completed sale of one 50%-owned non-core retail property for gross proceeds of $5.7 million (PROREIT's share), and entered into a binding agreement to acquire a 100%-owned 60,057 square feet industrial property for $12.3 million in Moncton, New Brunswick
80.1% of 2025 GLA renewed at positive average spread of 34.2%; 68.2% of GLA maturing in 2026 renewed at positive average spread of 33.8%
Occupancy rate at 95.4% at December 31, 2025 (including committed space), compared to 97.8% a year earlier. Excluding the impact of a single vacancy in a 176,070-square-foot property, occupancy rate was 98.1% at December 31, 2025
Total debt to total assets of 48.8% at December 31, 2025, compared to 50.0% at the same date last year
Adjusted Debt to Annualized Adjusted EBITDA Ratio* of 9.0x at December 31, 2025, compared to 9.2x at the same date last year
Adjusted Debt to Gross Book Value* of 48.8% at December 31, 2025, compared to 50.3% at the same date last year
"2025 was a defining year for PROREIT as we successfully completed our transition to a pure-play industrial REIT, a strategic objective established three years ago. Through disciplined execution, we repositioned our portfolio, and enhanced the quality of our platform to support sustainable long-term growth," said Gordon Lawlor, President and Chief Executive Officer of PROREIT.
"During the year, we completed the disposition of 17 non-core properties for aggregate gross proceeds of approximately $71.2 million as part of our capital recycling strategy. We also acquired a portfolio of seven high-quality industrial properties in Winnipeg, Manitoba from Parkit for $101.9 million (excluding closing costs), approximately $42.1 million of which was satisfied through the issuance of equity, further enhancing our financial flexibility.
"Our geographic positioning in robust secondary markets continued to deliver compelling results, with our core markets of Halifax, Winnipeg and Ottawa all outperforming the national average in terms of market rent growth in 2025**. These favourable market dynamics, combined with healthy fundamentals across our small- and mid-bay industrial portfolio, drove Same Property NOI* growth of 8.1% in the fourth quarter and 8.0% for the full year, year-over-year.
"We have secured renewals on approximately 68.2% of GLA maturing in 2026 at a 33.8% positive average spread as of today, reflecting one of the strongest leasing cycles in our history and providing meaningful embedded growth heading into 2026.
"Despite owning 10 fewer properties, we successfully increased NOI by 8.4% during the year, demonstrating the enhanced earnings profile of our industrial-focused portfolio. We further solidified our balance sheet, by reducing both total debt to total assets and Adjusted Debt to Annualized Adjusted EBITDA* ratios at year-end compared to the prior year. While our AFFO Payout Ratio, Basic* was temporarily elevated in the fourth quarter as we executed on dispositions and transitioned the portfolio, this repositioning provides financial flexibility to pursue future acquisitions, and we expect our AFFO* and our AFFO Payout Ratio, Basic* to improve as the benefits are realized.
"Looking ahead, we have already begun executing on our 2026 growth strategy with the acquisition of an industrial property in Moncton, New Brunswick and will continue to pursue opportunities that align with our disciplined investment approach in the industrial sector. Supported by an experienced team, we are well positioned to strengthen our leadership in the Canadian light industrial sector and deliver sustainable long-term value for our unitholders," concluded Mr. Lawlor.
* Measures followed by the suffix "*" in this press release are non-IFRS measures. See "Non-IFRS Measures".** Information from CBRE Industrial Report Q4 2025
Financial ResultsTable 1 - Financial Highlights
(CAD $ thousands except unit, per unit amounts and unless otherwise stated)
3 Months
Ended
December 31
2025
3 Months
Ended
December 31
2024
Year Ended
December 31
2025
Year Ended
December 31
2024
Financial data
Property revenue
$ 26,230
$ 24,883
$ 104,101
$ 99,213
Net operating income ("NOI")
$ 16,059
$ 14,653
$ 63,431
$ 58,523
Same Property NOI (1)
$ 14,125
$ 13,063
$ 53,011
$ 49,093
Net income and comprehensive income
$ 2,162
$ 1,879
$ 35,348
$ 2,376
Net income and comprehensive income per Unit - Basic (2)
$ 0.0322
$ 0.0310
$ 0.5466
$ 0.0392
Net income and comprehensive income per Unit - Diluted (2)
$ 0.0319
$ 0.0307
$ 0.5365
$ 0.0388
Total Unitholders' equity
$ 496,892
$ 464,647
$ 496,892
$ 464,647
NAV per Unit (2)
$ 7.74
$ 7.77
$ 7.74
$ 7.77
Total assets
$ 1,076,937
$ 997,762
$ 1,076,937
$ 997,762
Total debt
$ 525,014
$ 498,571
$ 525,014
$ 498,571
Total debt to total assets
48.8 %
50.0 %
48.8 %
50.0 %
Adjusted Debt to Gross Book Value (1)
48.8 %
50.3 %
48.8 %
50.3 %
Interest Coverage Ratio (1)
2.5x
2.5x
2.6x
2.5x
Debt Service Coverage Ratio (1)
1.7x
1.6x
1.7x
1.6x
Adjusted Debt to Annualized Adjusted EBITDA Ratio (1)
8.9x
9.3x
9.0x
9.2x
Weighted average interest rate on mortgage debt
3.8 %
3.9 %
3.8 %
3.9 %
Net cash flows provided from operating activities
$ 11,736
$ 11,650
$ 32,523
$ 31,098
Funds from Operations (FFO) (1)
$ 7,793
$ 6,819
$ 31,624
$ 28,433
Basic FFO per unit (1)(2)
$ 0.1161
$ 0.1125
$ 0.4891
$ 0.4690
Diluted FFO per unit (1)(2)
$ 0.1148
$ 0.1113
$ 0.4800
$ 0.4646
Adjusted Funds from Operations (AFFO) (1)
$ 7,612
$ 7,098
$ 30,803
$ 28,845
Basic AFFO per unit (1)(2)
$ 0.1134
$ 0.1171
$ 0.4764
$ 0.4758
Diluted AFFO per unit (1)(2)
$ 0.1122
$ 0.1159
$ 0.4676
$ 0.4713
AFFO Payout Ratio, Basic (1)
99.1 %
96.1 %
94.5 %
94.6 %
AFFO Payout Ratio, Diluted (1)
100.3 %
97.1 %
96.2 %
95.5 %
(1)
Represents a non-IFRS measure. See "Non-IFRS Measures".
(2)
Total basic units consist of trust units of the REIT and Class B LP Units (as defined herein). Total diluted units also includes deferred trust units and restricted trust units issued under the REIT's long-term incentive plan.
At December 31, 2025, PROREIT owned 105 properties (including a 50% ownership interest in 40 investment properties), compared to 115 investment properties (including a 50% ownership interest in 42 investment properties) at December 31, 2024. At December 31, 2025, total assets amounted to $1.08 billion, representing an 8% increase from $997.8 million on December 31, 2024.
As at December 31, 2025, the industrial segment represented 92.5% of total GLA and 90.5% of base rent, compared with 85.8% and 80.8%, respectively, as at December 31, 2024. Atlantic Canada accounted for 44.4% of base rent at year end 2025, down from 52.6% at year end 2024, while Western Canada increased to 19.6% from 9.5%.
For the three-month period ended December 31, 2025:
Property revenue amounted to $26.2 million, an increase of $1.4 million or 5.4%, compared to the same prior year period. The increase is mainly due to the contractual increases in rent and higher rental rates on lease renewals and new leases despite owning 10 fewer properties.
Net operating income (NOI) amounted to $16.1 million for the quarter, compared to $14.7 million in the fourth quarter of 2024, an increase of 9.6%, which was mainly driven by the same factors impacting property revenue.
Same Property NOI*, which represented 98 properties out of the 105 properties in the portfolio, totalled $14.1 million for the quarter, an increase of $1.1 million or 8.1%, compared to the same quarter last year. The increase was primarily driven by contractual increases in rent and higher rental rates on lease renewals and new leases despite a decrease in overall average occupancy, primarily related to one Quebec vacancy. Notably, Same Property NOI* for industrial assets rose by $1.1 million or 9.1% for the quarter, compared to the same period in 2024.
FFO* was $7.8 million, up $1.0 million or 14.3% from $6.8 million in the fourth quarter of 2025. The increase was mainly driven by increases in contractual base rent, higher rates on renewals, and higher rental rates on new leases, despite owning 10 fewer properties, offset by an increase in interest and financing costs.
AFFO Payout Ratio, Basic* stood at 99.1%, compared to 96.1% in the fourth quarter of 2024. The year-over-year increase was primarily driven by the timing of the sale of 17 properties completed in 2025, an increase in interest and financing costs and the issuance of equity in connection with the transaction with Parkit, offset by increases in contractual base rent, higher rates on renewals, and higher rental rates on new leases compared to the same period in 2024.
For the twelve-month period ended December 31, 2025:
Property revenue amounted to $104.1 million, an increase of $4.9 million compared to the fiscal year ended December 31, 2024 ("Fiscal 2024"). The increase is driven by the same factors noted for the three-month period above.
NOI amounted to $63.4 million, compared to $58.5 million for Fiscal 2024, an increase of 8.4% driven by the same factors noted for the three-month period above.
Same Property NOI* totalled $53.0 million, an increase of $3.9 million or 8.0%, compared to Fiscal 2024, primarily attributable to contractual increases in rent and higher rental rates on lease renewals and new leases despite a decrease in overall average occupancy primarily related to one Quebec vacancy.
FFO* reached $31.6 million, compared to $28.4 million for Fiscal 2024, an increase of $3.2 million or 11.2%. The increase was mainly driven by increases in contractual base rent, higher rates on renewals, and higher rental rates on new leases, despite owning 10 fewer properties, offset by an increase in interest and financing costs.
AFFO Payout Ratio, Basic* was 94.5% at December 31, 2025, which was consistent compared to Fiscal 2024.
Sustained Operating Environment
As of December 31, 2025, PROREIT's portfolio comprised 105 investment properties, totalling 6.4 million square feet of GLA, with a weighted average lease term to maturity (WALT) of 4.3 years, compared to 3.8 years at the same date last year.
The occupancy rate of the portfolio stood at 95.4% as at December 31, 2025 (including committed space), compared to 97.8% at the same date last year. The change primarily reflects the vacancy of a 176,000-square-foot single-tenant industrial property located at 6375 Picard Street in Sainte-Hyacinthe, Quebec, following the tenant's decision not to renew its lease in July 2025. Excluding this specific vacancy, portfolio occupancy (including committed space) as at December 31, 2025 would be approximately 98.1%.
As of the date of this press release, approximately 80.1% of GLA maturing in 2025 has been renewed at 34.2% positive average spread, supported by strong leasing activity, including:
In August 2025, PROREIT renewed an industrial lease with a covenant tenant expiring in 2025, for a 5-year term starting from the date of expiry. The renewed base rent represents a 24% increase over the expiring rent and represents approximately 45,000 square feet of GLA in Moncton, New Brunswick.
In August 2025, PROREIT entered into a 28,000 square foot industrial lease for a 5-year term commencing January 1, 2026 in Winnipeg, Manitoba. The new base rent represents a 12% increase compared to the rent paid by the previous tenant, which vacated the property in 2024.
As of the date of this press release, approximately 68.2% of GLA maturing in 2026 has been renewed at 33.8% positive average spreads, supported by notable transactions such as:
In November 2024, PROREIT renewed a retail lease with a single credit quality tenant expiring in 2026, for a 10-year term starting from the date of the expiry. The renewed base rent will remain the same as the expiring rent with a one-time rent step to commence in year 6 of the renewal term and represents approximately 42,000 square feet of GLA.
In December 2024, PROREIT renewed an industrial lease with a single tenant expiring in 2026, for a 3-year term starting from the date of the expiry. The renewed base rent is in excess of 40% over the expiring rent with annual rent steps and represents approximately 155,000 square feet of GLA.
In February 2025, the REIT renewed four industrial leases with a credit quality tenant expiring in 2026, each for a 5-year term starting from the date of the expiry. The renewed base rent is in excess of 45% over the expiring rent with annual rent steps and represents approximately 325,000 square feet of GLA.
Portfolio Transactions
In Fiscal 2025, PROREIT completed the sale of 17 properties, as detailed below.
On February 7, 2025, the REIT completed the sale of a 50% co-ownership industrial property in Dartmouth, Nova Scotia totalling approximately 62,000 square feet for gross proceeds of $10.8 million (excluding closing costs). The REIT's 50% share of the gross proceeds was $5.4 million (excluding closing costs), used to repay approximately $2.4 million of a related mortgage, with the balance used for general business and working capital purposes.
On March 6, 2025, the REIT completed the sale of a 100% interest in a non-core retail property located in New Minas, Nova Scotia totalling approximately 52,000 square feet for gross proceeds of $5.9 million (excluding closing costs). The net proceeds of the sale were used to partially repay approximately $4.0 million of a related mortgage maturing in July 2028, with the balance used for general business and working capital purposes.
On March 12, 2025, the REIT completed the sale of a 100% interest in a non-core retail property located in Creston, British Columbia totalling approximately 5,200 square feet for gross proceeds of $1.1 million (excluding closing costs). The net proceeds of the sale were used to partially repay approximately $0.6 million of a related mortgage maturing in January 2033, with the balance used for general business and working capital purposes.
On June 26, 2025, the REIT completed the previously announced acquisition of a portfolio of six industrial properties in Winnipeg, Manitoba, comprising a total of 678,177 square feet of GLA from Parkit for an aggregate purchase price of approximately $96.5 million. The $96.5 million purchase price (excluding closing costs) was satisfied with cash from a new $63.0 million 3-year secured non-revolving credit facility at a fixed swap rate of approximately 4.54% and the issuance at a price of $6.20 per unit of $40.0 million of trust units and Class B LP Units, in aggregate, to Parkit. Approximately $3.2 million of the non-revolving credit facility was used to repay a portion of indebtedness outstanding under the REIT's existing revolving credit facility and $5.5 million for general business purposes.
On September 15, 2025, the REIT completed the sale of a 100% interest in nine non-core retail properties located in Atlantic Canada totalling approximately 221,000 square feet for gross proceeds of $39.8 million (excluding closing costs). Net proceeds of the sale were used to repay approximately $21.5 million of related mortgages and to repay approximately $8.5 million of the revolving credit facility, with the balance used for general business and working capital purposes.
On September 26, 2025, the REIT completed the sale of a 100% interest in two non-core retail properties located in Tracadie-Sheila, New Brunswick totalling approximately 50,400 square feet for gross proceeds of $9.8 million (excluding closing costs). The net proceeds of the sale were used to repay approximately $4.9 million of a related mortgage, with the balance used for general business and working capital purposes.
On September 29, 2025, the REIT completed the sale of a 50% interest co-ownership non-core retail property located in Dartmouth, Nova Scotia totalling approximately 10,900 square feet for gross proceeds of $3.5 million (excluding closing costs). The REIT's 50% share of the gross proceeds was $1.8 million (excluding closing costs), used to partially repay approximately $0.9 million of a related mortgage, with the balance used for general business and working capital purposes.
On October 24, 2025, the REIT completed the sale of a 100% interest in one non-core office property located in Saint John, New Brunswick totalling approximately 51,000 square feet for gross proceeds of $7.2 million (excluding closing costs). The net proceeds of the sale were used to repay a portion of approximately $6.0 million of the revolving credit facility with the balance used for general business and working capital purposes.
On November 5, 2025, the REIT completed the sale of a 100% interest in one non-core retail property located in Rocky Mountain House, Alberta totalling approximately 5,000 square feet for gross proceeds of $0.4 million (excluding closing costs). Net proceeds of the sale and cash on hand were used to partially repay approximately $0.5 million of a related mortgage maturing January 31, 2033.
On December 17, 2025, the REIT acquired one additional industrial property in Winnipeg, Manitoba from Parkit for a purchase price of approximately $5.4 million. ...
