Canadian Net Real Estate Investment Trust (NET-UN) Q4 2025 earnings summary

Executive summary

• Achieved record Normalized FFO per unit in 2025, with 9% year-over-year growth and 100% occupancy, reflecting strong asset selection and portfolio resilience.

• Capital recycling strategy and focus on necessity-based retail real estate drove performance.

• Conservative payout ratio of 52% and strong liquidity position support future acquisitions and growth.

• Successfully renewed all 2025 expiring leases and 97% of 2026 expiring NOI, with average rental increases of 6.9% and 6.1% respectively.

Financial highlights

• Normalized FFO per unit rose to CAD 0.664 for 2025, up from CAD 0.611 in 2024, a 9% increase; total Normalized FFO was CAD 13.7 million.

• NOI increased 7% to CAD 20.2 million, driven by new property acquisitions and rent increases.

• Property rental income grew 7% to CAD 28 million.

• Administrative expenses decreased to CAD 1.1 million, reflecting lower one-time and recurring costs.

• Net income attributable to unitholders was CAD 16.7 million, up from CAD 7.1 million.

Outlook and guidance

• Optimistic about 2026, with capital ready for disciplined acquisitions and monthly distributions of $0.02917/unit ($0.35 annualized) announced for Q2 2026.

• Management expects to continue pursuing accretive acquisitions and sustainable long-term growth.

• Actively working on 2027 lease renewals and monitoring transaction market conditions.