Choice Properties Real Estate Investment Trust (CHP.UN) Q1 2025 earnings summary

Executive summary

• Reported a net loss of $96.2 million for Q1 2025, compared to net income of $142.3 million in Q1 2024, mainly due to a $304.8 million unfavorable fair value adjustment on Exchangeable Units.

• FFO per unit diluted increased by 1.9% year-over-year to $0.264, and AFFO per unit diluted rose 4.2% to $0.249.

• Same-asset NOI (cash basis) grew 2.9% year-over-year, with strong leasing spreads and high occupancy at 97.7%.

• Completed $95.2 million in transactions and invested $44.1 million in development projects, with major acquisitions and robust leasing activity.

• Released the 2024 ESG Report, highlighting ongoing commitment to sustainability and SBTi-validated net zero targets.

Financial highlights

• Rental revenue grew to $372.0 million, up $10.6 million year-over-year, and net operating income (cash basis) increased by $10.4 million to $262.1 million.

• FFO for Q1 2025 was $190.9 million, or $0.264 per unit diluted, up 1.9% year-over-year; AFFO per unit diluted rose to $0.249.

• NAV per unit increased to $14.17, up $0.10 from year-end 2024 and 3.5% year-over-year.

• Distribution declared per unit was $0.191, up from $0.188 in Q1 2024, with annual distribution increased by 1.3%.

• AFFO payout ratio improved to 76.6% from 78.7% year-over-year.

Outlook and guidance

• Targeting stable occupancy and 2–3% year-over-year growth in same-asset NOI (cash basis) and FFO per unit for 2025.

• Annual FFO per unit diluted expected in the range of $1.05 to $1.06.

• Maintaining strong leverage metrics, with adjusted debt to EBITDAFV targeted below 7.5x.

• Focus on maximizing value in core asset classes, capital recycling, and advancing the development pipeline.

• Distribution yield at 5.5% with a 1% increase in 2025, marking the third consecutive annual increase.