SmartCentres Real Estate Investment Trust (SRU.UN) Q1 2025 earnings summary

Executive summary

• Achieved strong financial and operational performance in Q1 2025, with net operating income up $7.4 million and Same Properties NOI rising 4.1% year-over-year, or 6.7% excluding anchors.

• In-place and committed occupancy rate reached 98.4%, supported by robust leasing and a focus on Walmart-anchored centres.

• Portfolio includes 196 properties and a strategic development pipeline of 85 million sq. ft. in mixed-use projects.

• Maintained stable cash distributions and a resilient tenant base, with 23% of revenue from Walmart.

• Major tenants like Walmart and Canadian Tire are expanding, with significant projects under construction.

Financial highlights

• Q1 2025 in-place and committed occupancy rate at 98.4%, up 0.7% year-over-year but down 0.3% sequentially.

• Same property NOI growth of 4.1% year-over-year (6.7% excluding anchors).

• FFO per unit (diluted) at $0.56, up $0.03 year-over-year; AFFO per unit (diluted) at $0.54, up $0.07 year-over-year.

• Unencumbered asset pool increased to CAD 9.6 billion, with liquidity of up to $1.1 billion.

• Weighted average interest rate on debt is 3.93%, with debt to aggregate assets at 44.1%.

Outlook and guidance

• Significant municipal approvals support long-term portfolio expansion, with 59.1 million sq. ft. of zoned mixed-use permissions.

• 1.0 million sq. ft. of development under construction, including self-storage, retail, and residential projects.

• Ongoing expansion of self-storage portfolio, with multiple facilities opening in 2025 and 2026.

• Management expects continued demand for retail and mixed-use space, supported by strong tenant relationships.

• Premium outlets and value-oriented retail expected to remain resilient in challenging macroeconomic conditions.