PRO Real Estate Investment Trust (PRV-UN) Q4 2025 earnings summary

Executive summary

• Completed transition to a pure-play industrial REIT focused on small and mid-bay properties, marking a major strategic milestone for the organization in 2025.

• Portfolio repositioned with 105 investment properties totaling 6.4 million sq ft of gross leasable area at year-end, with industrial assets representing 92.5% of GLA and 90.5% of base rent.

• Sold 17 non-core properties for CAD 71.2 million and acquired seven high-quality industrial properties in Winnipeg for CAD 101.9 million, with CAD 42.1 million satisfied through equity issuance.

• Formed a strategic partnership with Parkit Enterprise Inc. to pursue future growth opportunities.

• Renewed 80.1% of 2025 GLA at a 34.2% positive spread and 68.2% of 2026 GLA at a 33.8% positive spread, reflecting robust leasing activity.

Financial highlights

• Property revenue for Q4 was CAD 26.2 million, up 5.4% year-over-year; full-year revenue was CAD 104.1 million, up 4.9%.

• Net operating income (NOI) for Q4 was CAD 16.1 million, up 9.6% year-over-year; full-year NOI was CAD 63.4 million, up 8.4%.

• Same-property NOI for Q4 was CAD 14.1 million, up 8.1% year-over-year, driven by 9.1% growth in the industrial segment.

• Funds from operations (FFO) for Q4 was CAD 7.8 million, up 14.3% year-over-year; full-year FFO increased 11.2%.

• Net income for the year was CAD 35.3 million, up from CAD 2.4 million in 2024.

• Basic AFFO payout ratio was 99.1% in Q4 and 94.5% for the year.

Outlook and guidance

• Expecting continued strong cash flow FFO growth of 7%-9% annually through 2026-2028.

• No significant asset dispositions planned for 2026; focus remains on acquisitions and maintaining high occupancy.

• Management sees room for about CAD 40 million in acquisitions, with a focus on small- and mid-bay industrial assets.

• Entered into a binding agreement to acquire a 60,057 sq ft industrial property in Moncton for CAD 12.3 million, expected to close in 2026.

• Targeting CAD 2 billion in assets and 45% Adjusted Debt to Gross Book Value in the next 3–5 years.