PRO Real Estate Investment Trust (PRV-UN) Q2 2025 earnings summary

Executive summary

• Achieved strong Q2 performance with net operating income up 4.5% year-over-year and same property NOI up 8.2%, led by a 9.6% gain in the industrial segment.

• AFFO per unit rose 3.7% year-over-year, with the payout ratio improving to 89.8% from 93.1% a year ago.

• Occupancy rate reached 97.8% at June 30, 2025, up from 97.1% a year earlier.

• Strategic focus on transitioning to a pure play light industrial REIT, with significant progress in capital recycling and portfolio repositioning.

• Industrial segment now represents 88% of GLA and 83.5% of base rent; pro forma industrial base rent to reach 88% after retail sale.

Financial highlights

• Property revenue reached CAD 25 million in Q2 2025, up CAD 0.4 million year-over-year, driven by higher rental rates and lease renewals.

• NOI was CAD 15.4 million, up 4.5% year-over-year; same property NOI was CAD 14.6 million, up 8.2%.

• FFO for Q2 2025 was CAD 8 million, up 8.1% year-over-year; AFFO was CAD 7.6 million.

• Net income for Q2 2025 was CAD 5.2 million, down from CAD 6.6 million in Q2 2024.

• Distributions declared at CAD 0.0375 per unit monthly.

Outlook and guidance

• On track to reach 90% industrial base rent by end of 2025, with pro forma industrial base rent at 88% after recent transactions.

• Management targets CAD 2 billion in assets, 90% industrial base rent, and 45% Adjusted Debt to Gross Book Value in 3–5 years.

• Over 52% of 2026 GLA already renewed at 33.8% average spread.

• Anticipates sustainable long-term growth and value-accretive opportunities, with a focus on maintaining a resilient balance sheet.

• Focus remains on expanding light industrial portfolio in strong secondary Canadian markets.