PRO Real Estate Investment Trust (PRV-UN) Q1 2025 earnings summary

Executive summary

• Achieved a strong start to 2025, advancing the strategy to become a pure-play light industrial REIT focused on high-performing secondary Canadian markets.

• Announced acquisition of six institutional-quality industrial properties in Winnipeg, totaling 678,000 sq ft, 99.7% leased, for CAD 96.5 million at a mid-6% cap rate, partially funded by CAD 40 million in equity issuance.

• Portfolio to expand to 118 properties and 6.7 million sq ft GLA upon closing the acquisition.

• Same Property NOI increased 5.0% year-over-year, led by industrial assets with 5.9% growth.

• Leasing momentum strong: 53.3% of 2025 GLA and 47.3% of 2026 GLA renewed at average spreads above 34%.

Financial highlights

• Q1 property revenue was CAD 25.7 million, slightly higher year-over-year despite owning eight fewer properties.

• Net operating income (NOI) for Q1 was CAD 14.9 million, up from CAD 14.8 million year-over-year.

• Same property NOI increased by 5% to CAD 14.1 million, driven by contractual rent increases and higher rates on renewals and new leases.

• FFO reached CAD 7.9 million, a 2.3% increase from Q1 2024, supported by lower debt settlement and G&A costs.

• Net income was CAD 15.0 million, compared to a net loss of CAD 9.5 million in Q1 2024, mainly due to fair value adjustments.

Outlook and guidance

• Confident in the outlook and resilience of the platform despite market volatility and geopolitical uncertainty.

• Targeting same property NOI growth of 5% or better for 2025, with much of 2025 leasing already secured.

• Focus remains on expanding the industrial platform, targeting small- and mid-bay properties in strong secondary Canadian markets.

• Medium-term goals include $2 billion in assets, 90% industrial base rent, and 45% Adjusted Debt to Gross Book Value within 3–5 years.