Canadian Net Real Estate Investment Trust (NET-UN) Q3 2025 earnings summary

Executive summary

• Achieved 9% year-over-year growth in normalized FFO per unit for the nine months ended September 30, 2025, maintaining 100% occupancy and focusing on necessity-based real estate.

• Actively evaluating accretive acquisition opportunities to build on portfolio strengths.

• Successfully navigated higher interest rates and a closed capital markets environment by repaying convertible debentures and reallocating capital from asset dispositions.

Financial highlights

• Normalized FFO per unit reached CAD 0.494 for the nine months ended September 30, 2025, up from CAD 0.453 in 2024.

• Normalized FFO totaled CAD 10.2 million, a 9% increase from CAD 9.3 million year-over-year.

• NOI rose 6% to CAD 15.1 million, and property rental income increased 7% to CAD 20.7 million for the same period.

• Q3 2025 FFO was $3.4M ($0.164/unit), up 20% year-over-year; rental income for Q3 2025 was $6.9M, up 11.5% year-over-year.

• AFFO for the nine months was $9.8M ($0.474/unit), up 13% year-over-year.

Outlook and guidance

• Focus remains on acquisitions and refinancing to support future growth, with refinancing proceeds in 2025 allocated to debenture repayment.

• Announced monthly cash distributions of $0.02917 per unit for January, February, and March 2026, annualized at $0.35 per unit.

• Management remains committed to portfolio growth and evaluating new acquisition opportunities.