Crombie Real Estate Investment Trust (CRR.UN) Q4 2025 earnings summary

Executive summary

• Achieved record committed occupancy of 97.7% and economic occupancy of 97.4%, driven by strong tenant demand and proactive leasing management.

• Portfolio focused on grocery-anchored, necessity-based retail, with 82.9% of annual minimum rent from these assets and a coast-to-coast presence of 308 properties totaling 18.9M sq. ft. GLA valued at $6.2B.

• Strategic partnerships, especially with Empire, which anchors 90.5% of retail properties and generates 60.6% of AMR, and new programmatic partnerships in Halifax and Vancouver, contributed to recurring fee income and risk sharing.

• Added five grocery-anchored properties, completed a major industrial acquisition, and disposed of non-core assets to high-grade the portfolio.

• Credit rating upgraded from BBB (low) to BBB, supporting a $0.01 per unit increase in annual distribution and enhancing funding flexibility.

Financial highlights

• FY2025 property revenue grew 3.8% year-over-year to $488.7M; Q4 property revenue was $122.1M, up 0.4% from the prior year.

• FFO per unit increased 4.8% to $1.30 and AFFO per unit grew 6.5% to $1.15 year-over-year; Q4 FFO per unit up 3.1%, AFFO per unit up 3.6%.

• Commercial same-asset property cash NOI rose 3.7% to $329.9M for the year; Q4 same-asset NOI up 4.1% to $84.3M.

• Management and development fee revenue doubled to $11.4M for the year, driven by partnerships and Empire projects; Q4 management and development services revenue up 82.5%.

• FFO payout ratio was 69.1% and AFFO payout ratio was 78.1% for the year, within targeted ranges.

Outlook and guidance

• Expecting same asset NOI growth at the higher end of the 2%-3% long-term target range for 2026.

• Major development pipeline could add 10.7M sq. ft. and ~11,600 residential units, with 23% of pipeline properties already zoned.

• Non-major development program invested $38M in 2025, targeting 6–7% yield on cost.

• Management and development fee income expected to remain stable at $2.4M quarterly, with potential upside from new projects.

• Focus remains on executing the Building Together strategy, disciplined capital deployment, and growing cash flow.