Automotive Properties Real Estate Investment Trust (APR-UN) Q4 2025 earnings summary

Executive summary

• Acquired 13 automotive properties in 2025, including the first three in the U.S., for CAD 200 million, fueling significant growth in rental revenue, cash NOI, and AFFO per unit year-over-year.

• Distribution to unitholders increased by 2.2% in 2025, reflecting strong financial performance and acquisition-driven growth, while reducing the AFFO payout ratio.

• Entered 2026 with further acquisitions, including a Hyundai dealership in Québec City and an agreement to acquire a Rivian-tenanted property in California.

Financial highlights

• Q4 2025 property rental revenue rose 19.3% year-over-year to CAD 27.9 million; full-year 2025 revenue up 8.5% to CAD 101.8 million compared to 2024.

• Q4 2025 net income and other comprehensive income increased 15.6% to CAD 13.9 million; full-year 2025 net income down 40% to CAD 43.2 million due to non-cash fair value adjustments.

• Q4 2025 AFFO per unit (diluted) was CAD 0.251, up from CAD 0.232 in Q4 2024; full-year AFFO per unit (diluted) was CAD 0.998, up from CAD 0.932.

• AFFO payout ratio improved to 82.1% in Q4 2025 and 81.5% for 2025, down from 86.6% and 86.3% in prior periods.

• ACFO for 2025 was CAD 53.2 million, up 3.9% year-over-year.

Outlook and guidance

• Expecting full impact of 2025 acquisitions to be realized in 2026, with continued growth in AFFO per unit and further acquisitions in Canada and the U.S.

• Acquisition pipeline remains active, focusing on selective opportunities in healthy U.S. and Canadian markets.

• Management anticipates benefiting from essential retail and service properties, resilient tenants, and embedded rental growth.

• Monitoring risks from inflation, interest rates, currency fluctuations, and trade restrictions, with ongoing assessment of impacts on business and property valuations.

• Expects continued consolidation in the automotive dealership and service industry due to increased sophistication and capital requirements.