Choice Properties Real Estate Investment Trust (CHP.UN) Q2 2025 earnings summary

Executive summary

• Reported a net loss of $154.2 million for Q2 2025, compared to net income of $513.2 million in Q2 2024, mainly due to a $736.2 million unfavorable fair value adjustment on Exchangeable Units.

• FFO per unit diluted rose 3.9% year-over-year to $0.265, while AFFO per unit diluted declined to $0.231 due to earlier maintenance capital projects.

• Portfolio occupancy remained strong at 97.8%, with retail at 97.8%, industrial at 98.0%, and mixed-use & residential at 95.4%.

• Completed $427.1 million in transactions, including major acquisitions and dispositions in industrial and mixed-use assets.

• Maintains position as Canada's largest REIT with a high-quality, necessity-based retail portfolio and strong strategic relationship with a major national retailer.

Financial highlights

• Q2 2025 FFO was $191.6 million or $0.265 per unit (diluted), up 3.9% year-over-year; AFFO per unit was $0.231, down 7.2% year-over-year.

• Same-Asset NOI (cash basis) increased by 1.4% year-over-year, with retail up 1.7%, industrial up 0.2% (4.2% excluding bad debt), and mixed-use & residential up 1.6%.

• NAV per unit rose to $14.38, up 1.5% from last quarter and year-over-year.

• Portfolio occupancy remained strong at 97.8%.

• Distribution declared per unit: $0.193 (Q2 2025), up from $0.190 (Q2 2024).

Outlook and guidance

• Targeting stable occupancy and 2–3% year-over-year growth in Same-Asset NOI (cash basis) for 2025.

• Annual FFO per unit diluted expected in the range of $1.05 to $1.06, reflecting 2–3% growth.

• Continues to target stable and growing distributions, with a 1% increase in 2025 marking the third consecutive annual rise.

• Expect industrial portfolio occupancy to improve and end the year above 98% due to strong tenant retention and leasing.

• Focused on maximizing value in core asset classes and executing on near-term industrial and mixed-use development opportunities.