Granite Real Estate Investment Trust (GRT-UN) Q1 2026 earnings summary

Executive summary

• Q1 2026 results were in line with annual forecast, driven by strong NOI growth, robust leasing spreads, and portfolio expansion, partially offset by unfavorable FX movements and property dispositions.

• FFO per unit was CAD 1.57, up 7.5% year-over-year, with AFFO per unit at CAD 1.41, reflecting sequential improvement due to lower capital expenditures and leasing costs.

• Portfolio consists of 139 income-producing and 6 development properties across 6 countries, totaling 61.5M SF with 98.3% committed occupancy and $9.5B in property value.

• Focus on long-term total return, conservative capital structure, and active asset management with institutional quality assets.

• ESG leadership recognized by top GRESB rankings and significant green bond allocations.

Financial highlights

• Same property NOI grew 8.3% on a constant currency basis and 8% including FX impact, with net operating income rising to $134.2 million in Q1 2026.

• FFO per unit CAGR of 10% since 2020, reaching $6.33 in 2025 and projected midpoint of $6.03 for 2026.

• AFFO payout ratio was 63–66% and net leverage ratio improved to 33% as of March 31, 2026.

• Market capitalization of ~$5.7B and enterprise value of ~$8.6B as of May 1, 2026.

• 15 consecutive annual distribution increases, with a 4.41% increase in 2026.

Outlook and guidance

• Guidance for FFO per unit remains at CAD 6.25–6.40, reflecting 6–8% growth over 2025, and AFFO per unit at $5.40–$5.55.

• Constant currency same property NOI (cash basis) expected to average 5.5%–6.5% growth for 2026.

• AFFO-related capital expenditures expected at approximately CAD 40 million for 2026.

• No material changes in assumptions for leasing, operations, asset transactions, or financing.

• Continued focus on portfolio diversification, ESG initiatives, and measured growth through development and acquisitions.