Choice Properties Real Estate Investment Trust (CHP.UN) Q3 2025 earnings summary

Executive summary

• Achieved strong Q3 2025 results with 98% portfolio occupancy, robust tenant demand in necessity-based retail and industrial assets, and FFO per unit growth of 7.8% year-over-year; net income rebounded to $242.6M from a net loss in Q3 2024, mainly due to favorable fair value adjustments and higher NOI.

• Largest REIT in Canada with 700+ high-quality properties valued at $17.8B, focused on necessity-based retail, industrial, and mixed-use/residential assets; Loblaw is the largest tenant, representing 57.5–58% of rental revenue.

• Strong ESG leadership, targeting net zero by 2050, with over 50% women executives at VP+ level and notable achievements in zero carbon building certification.

• Completed seven retail intensification projects and extended debt maturity profile, supporting long-term value creation.

Financial highlights

• FFO for Q3 2025 was $201.4M ($0.278 per unit diluted), up 7.8% year-over-year; AFFO per unit was $0.192, down from $0.229, mainly due to earlier maintenance capital projects.

• Same-Asset NOI (cash basis) increased 2.8% year-over-year, with retail up 3.1%, industrial up 1.6%, and mixed-use/residential up 4.0%.

• NAV per unit rose to $14.53, up 1% from Q2 2025 and 3.5% year-over-year.

• Rental revenue for Q3 2025 was $387.8M (proportionate share), up $26.2M year-over-year.

• Distributions declared per unit increased to $0.193 per quarter, annualized to $0.77.

Outlook and guidance

• Raised 2025 FFO per unit guidance to $1.06–$1.07, representing 3–4% year-over-year growth; expects stable occupancy and 2–3% growth in Same-Asset NOI.

• AFFO payout ratio for 2025 expected to remain consistent with prior year.

• Management expects continued stable and growing cash flows, capital preservation, and NAV appreciation.

• Anticipates continued right-sizing initiatives with Loblaw, though at lower volumes in 2026–2027.