REIT generates robust leasing activity, completing 172,600 square feet of new and renewed leases with a weighted average lease term of 7.8 years and 1.4% positive leasing spread on renewed leases
TORONTO, March 17, 2026 /CNW/ - True North Commercial Real Estate Investment Trust (TSX:TNT) (the "REIT") today announced its financial results for the three months ended December 31, 2025 ("Q4-2025") and year ended December 31, 2025 ("YTD-2025").
"We are pleased with the continued leasing momentum during Q4-2025 and completion of an additional non-core property sale," said Daniel Drimmer, the REIT's Chief Executive Officer. "The REIT continues to focus on strengthening its financial position, maintaining its strong leasing momentum and enhancing long term value for our unitholders."
Q4-2025 highlights
The REIT's core portfolio occupancy(1) at the end of Q4-2025 was approximately 90% with a weighted average lease term ("WALT")(1) of 4.3 years.
The REIT contractually leased or renewed approximately 172,600 square feet with a WALT of 7.8 years achieving positive leasing spreads on renewals of 1.4% for Q4-2025.
The REIT's revenue increased from $31,682 in three months ended December 31, 2024 ("Q4-2024") to $40,331 in Q4-2025 representing a 27.3% increase (YTD-2025 - increased by 2.5%) primarily due to Q4-2025 including $12,400 of early termination income related to a strategically executed lease termination for one of the REIT's Ottawa properties. Excluding the impact of the Ottawa property described above, Q4-2025 revenue would have declined by approximately 3.0% primarily attributable to two properties in the REIT's Greater Toronto Area ("GTA") portfolio that had higher vacancy during Q4-2025 than Q4-2024 with such vacant space having been re-leased with move-ins scheduled in 2026.
The REIT's net operating income ("NOI")(1) increased by approximately 63.3% in Q4-2025 relative to Q4-2024 primarily driven by the termination income noted above.
Q4-2025 same property net operating income ("Same Property NOI")(1) excluding the impact of termination income and free rent in both periods decreased by approximately 2.2% (YTD-2025 - 3.8%) primarily due to a reduction in occupancy in Q4-2025 relative to Q4-2024 isolated to certain properties in British Columbia, Ottawa and GTA with the GTA space having been re-leased to new tenants commencing in 2026, partially offset by contractual rent increases achieved by the REIT.
The REIT's Q4-2025 funds from operations ("FFO")(1) and adjusted funds from operations ("AFFO")(1) increased by $9,471 and $10,345 (YTD-2025 - $4,263 and $3,738), respectively when compared to the same period in 2024 primarily due to the termination income described above, offset by the reduction in NOI excluding termination income as well as increase in interest costs.
Q4-2025 FFO and AFFO basic and diluted per trust units ("Unit")(1) increased from $0.61 and $0.60 in Q4-2024 to $1.27 and $1.26 in Q4-2025 and AFFO basic and diluted per Unit increased from $0.63 and $0.62 in Q4-2024 to $1.35 and $1.34 in Q4-2025, respectively, due to the reasons outlined above for the changes in FFO and AFFO, as well as the impact of a reduction in the number of the outstanding Units as a result of repurchases under the normal course issuer bid (the "NCIB") program during 2024 and 2025. Excluding termination income, Q4-2025 diluted FFO and AFFO would have decreased by $0.17 and $0.11, respectively, relative to Q4-2024.
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1 This is a non-IFRS financial measure, refer to "Non-IFRS measures". Represents occupancy, excluding assets held for sale and WALT.
YTD highlights
The REIT contractually leased and renewed approximately 778,500 square feet with a WALT of 6.0 years and a 1.7% increase over expiring base rents.
During the first half of 2025, the REIT completed the repurchase of 110,700 Units for cash of $1,021 under the NCIB program at a weighted average price of $9.23 per Unit. No Units were repurchased during second half of 2025.
On March 18, 2025, the REIT announced the reinstatement of the monthly distribution ("Distribution Reinstatement") to Unitholders, which commenced with a record date of March 31, 2025, payable on April 15, 2025, amounting to $0.0575 per Unit per month. For YTD-2025, the REIT's AFFO payout ratio(1) was 20%.
During YTD-2025, the REIT successfully completed the renewal or refinancing of all debt maturing in 2025, including $250,036 of refinancing and $8,500 of new financing at a weighted average interest rate of approximately 4.82% and weighted average term of approximately 2.96 years. For the REIT's 2026 debt maturities, $47,025 of the approximate $242,000 of the debt maturing in 2026 has been refinanced at a weighted average interest rate of 4.48% and weighted average term of 5.00 years (see "Subsequent Events"). The remaining debt maturities in 2026 occur late in Q3-2026 and thereafter, and involve lenders with whom the REIT has longstanding and strong relationships. The REIT continues to proactively manage its debt maturity profile to strengthen the REIT's financial position.
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1 This is a non-IFRS financial measure, refer to "Non-IFRS measures".
Subsequent events
On January 2, 2026, the REIT collected $12,400 of early lease termination income (net of excise tax payable by the REIT) from a tenant, which was included in tenant receivables within the REIT's consolidated financial statement as at December 31, 2025.
Subsequent to December 31, 2025, the REIT successfully completed $47,025 of refinancing at a weighted average interest rate of 4.48% and weighted average term of 5.00 years.
Key performance indicators
Q4-2025
Q4-2024
YTD-2025
YTD-2024
Number of properties(1)
37
40
Portfolio gross leasable area ("GLA")(1)
4,399,200 sf
4,618,800 sf
Occupancy(1)(2)
90 %
93 %
WALT(1)
4.3 years
4.2 years
Revenue from government and credit rated tenants(1)
75 %
75 %
Revenue
$ 40,331
$ 31,682
$ 130,119
$ 126,908
NOI
25,245
15,457
69,082
65,821
Net loss and comprehensive loss
(15,995)
(15,160)
(32,572)
(20,953)
Same Property NOI(3)
30,385
18,433
86,073
75,705
FFO
$ 18,353
$ 8,882
$ 41,039
$ 36,776
FFO per Unit - basic
1.27
0.61
2.85
2.42
FFO per Unit - diluted
1.26
0.60
2.83
2.42
AFFO
$ 19,501
$ 9,156
$ 41,565
$ 37,827
AFFO per Unit - basic
1.35
0.63
2.88
2.49
AFFO per Unit - diluted
1.34
0.62
2.86
2.48
AFFO payout ratio - diluted
13 %
-- %
20 %
-- %
Distributions declared
$ 2,484
$ --
$ 8,279
$ --
(1) This is presented as at the end of the applicable reporting period, rather than for the quarter.
(2) Represents same property occupancy excluding assets classified as held for sale as at December 31, 2025. The REIT's occupancy for all assets owned as at the end of each reporting period (including any held for sale assets) was 88% as at the end of Q4-2025 (Q4-2024 - 87%).
(3) Represents Same Property NOI including assets classified as held for sale during Q4-2025 and Q4-2024. Same Property NOI excluding assets classified as held for sale have been presented separately in this press release.
Operating results
The REIT's revenue increased from $31,682 in Q4-2024 to $40,331 in Q4-2025 representing a 27.3% increase (YTD-2025 - increased by 2.5%) primarily due to Q4-2025 including $12,400 of early termination income related to a strategically executed lease termination related to one of the REIT's Ottawa properties and partially offset by a one-time non-recurring charge to write-off $1,609 of unamortized straight line rent adjustments relating to the same lease. Excluding the impact of the Ottawa property with the early termination income noted, Q4-2025 revenue would have declined by $898 or approximately 3.0% primarily attributable to two properties in the REIT's GTA portfolio that had higher vacancy during Q4-2025 than Q4-2024 with such vacant space having been re-leased with move-ins scheduled in 2026.
The REIT's NOI increased by approximately 63.3% in Q4-2025 relative to Q4-2024 primarily driven by the termination income noted above included in Q4-2025.
The REIT's Q4-2025 FFO and AFFO increased by $9,471 and $10,345 (YTD-2025 - $4,263 and $3,738), respectively when compared to the same period in 2024 primarily due to the termination income associated with a strategically executed lease termination by a tenant in the REIT's Ottawa portfolio, offset by the reduction in NOI excluding termination income and increase in interest costs.
FFO basic and diluted per Unit increased from $0.61 and $0.60 in Q4-2024 to $1.27 and $1.26 in Q4-2025 and AFFO basic and diluted per Unit increased from $0.63 and $0.62 in Q4-2024 to $1.35 and $1.34 in Q4-2025, respectively, due to the reasons outlined above for the changes in FFO and AFFO, as well as the impact of a reduction in the number of the outstanding Units as a result of repurchases under the NCIB program during 2024 and 2025. Excluding termination income, Q4-2025 diluted FFO and AFFO would have decreased by $0.17 and $0.11, respectively, relative to Q4-2024.
On March 18, 2025, the REIT announced the Distribution Reinstatement to Unitholders, which commenced with a record date of March 31, 2025, payable on April 15, 2025, amounting to $0.0575 per Unit per month. For YTD-2025, the REIT's AFFO payout ratio was 20%.
Same Property NOI
Occupancy(1)
As at December 31
Same Property NOI(1)
2025
2024
Q4-2025
Q4-2024
Variance
Variance %
Alberta
87.6 %
88.1 %
Alberta
$ 2,888
$ 2,941
$ (53)
(1.8) %
British Columbia
74.8 %
100.0 %
British Columbia
512
814
(302)
(37.1) %
New Brunswick
91.3 %
88.3 %
