SmartCentres Real Estate Investment Trust (SRU.UN) Q4 2025 earnings summary

Executive summary

• Achieved strong financial and operational performance in Q4 and full-year 2025, with robust Same Property NOI growth, high occupancy rates (98.6%), and resilient leasing momentum across all property sectors.

• Continued expansion and upgrades in retail, self-storage, and residential segments, with significant development pipeline progress and new projects nationwide.

• Maintained a conservative balance sheet with over CAD 1 billion in liquidity, a $10 billion unencumbered asset pool, and stable cash distributions.

• Outperformed industry benchmarks with high tenant retention, competitive rental lifts, and proactive management of tenant transitions.

Financial highlights

• Same Property NOI grew 2.9% in Q4 2025 (5.1% excluding anchors); full-year growth was 3.7% (5.6% excluding anchors).

• FFO per unit (diluted) was $0.54 in Q4 2025, up $0.01 year-over-year; AFFO per unit (diluted) reached $0.48.

• Distributions maintained at CAD 1.85 per unit; payout ratio to AFFO improved to 89.2% for 2025, with some reports at 94.8%.

• Net rental income for Q4 2025 was $143.6 million, with annual net rental income at $563.0 million.

• Cash collections remained strong at nearly 99% in Q4.

Outlook and guidance

• Expect continued momentum in 2026, with strong rent growth, stable cash flows, and robust development pipeline across mixed-use, residential, and self-storage projects.

• Same Property NOI for 2026 projected to be in a similar range as 2025, with a temporary dip due to Toys "R" Us vacancies, but recovery anticipated as new tenants take possession.

• Retail development pipeline robust, with 200,000–300,000 sq ft expected to commence construction in 2026, and more in subsequent years.

• Two new self-storage facilities opening in QC in Q2 2026, and two more in BC in 2027.