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REIT also announces monthly distributions for Q3 2025
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MONTRÉAL, May 15, 2025 (GLOBE NEWSWIRE) — Canadian Net Real Estate Investment Trust (“Canadian Net” or the “REIT”) (TSX-V: NET.UN) today reported its results for the quarter ended March 31st, 2025 (“Q1 2025”). The REIT also announced an increase in annual distributions and distributions for July, August and September 2025.
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“This was a solid quarter for Canadian Net, with FFO per unit growing by 8% as we are now reaping the benefits of our capital recycling program and reinvestments we’ve made in recent months,” said Kevin Henley, President and CEO of the REIT. “In addition to the positive contributions from our recent acquisitions, our necessity-based niche continues to perform exceptionally well, and the ongoing decline in interest rates is further reinforcing these favourable conditions. We’re also pleased to announce an increase in our distribution, supported by the enhanced profitability driven by actions we took in prior years.”
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RESULTS FOR Q1 2025
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Canadian Net reported Funds from operations1 (“FFO”) of $3.38 million, or $0.164 per unit, an increase of 8% compared to $3.13 million, or $0.152 per unit for the quarter ended March 31, 2024 (“Q1 2024”).
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Rental income was $6.9 million in Q1 2025, an increase of 4.7% from Q1 2024. Net Operating Income1 (“NOI”) in Q1 2025 was $5.0 million, an increase of 3.3% from Q1 2024, reflecting an increase in rental income due to property acquisitions.
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The REIT generated a net income attributable to unitholders of $10.2 million in Q1 2025 compared to net income of $1.3 million in Q1 2024.
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The increase in FFO1 is derived from higher rental income from property acquisitions and lower interest charges on credit facilities. The increase in NOI1 was mainly attributable to the increase in rental income from property acquisitions. Finally, the variance in net income attributable to unitholders is primarily attributable to the change in the fair value of investment properties.
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DISTRIBUTIONS
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Starting in July 2025, the annual distribution will go from $0.345 to $0.350 per unit, representing an increase of 1.5%. With this increase, Canadian Net’s distributions have increased 180% since its first distributions in 2012.
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Canadian Net announced that it will make monthly cash distributions of $0.02917 per unit, representing $0.35 per unit on an annualized basis, on July 31st, August 29th and September 29th, 2025, to unitholders of record on July 15th, August 15th and September 15th, 2025, respectively.
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The tables below represent other financial highlights and the reconciliations of certain non-IFRS measures for Q1 2025 and Q1 2024. This information should be read in conjunction with the Condensed Consolidated Interim Financial Statements and Management’s Discussion & Analysis (“MD&A”) for the quarters ended March 31st, 2025 and March 31st, 2024.
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SUMMARY OF SELECTED FINANCIAL INFORMATION
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| 3 months | ||||||
| Periods ended March 31 | 2025 | 2024 | Δ | % | ||
| Financial info | ||||||
| Property rental income | 6,848,977 | 6,539,597 | 309,380 | 5 | % | |
| Net income and | ||||||
| comprehensive income (loss) | 10,181,260 | 1,261,106 | 8,920,154 | 707 | % | |
| NOI (1) | 4,976,365 | 4,818,187 | 158,178 | 3 | % | |
| FFO (1) | 3,378,163 | 3,126,921 | 251,242 | 8 | % | |
| AFFO (1) | 3,298,952 | 3,082,021 | 216,931 | 7 | % | |
| EBITDA (1) | 11,958,886 | 3,090,121 | 8,868,765 | 287 | % | |
| Adjusted EBITDA (1) | 4,785,862 | 4,710,759 | 75,103 | 2 | % | |
| Investment properties | 295,093,745 | 276,395,720 | 18,698,025 | 7 | % | |
| Adjusted investment properties (1) | 344,781,633 | 329,720,701 | 15,060,932 | 5 | % | |
| Total assets | 321,276,862 | 306,832,564 | 14,444,298 | 5 | % | |
| Mortgages | 142,478,077 | 129,866,744 | 12,611,333 | 10 | % | |
| Long-term debt | – | 30,000 | (30,000 | ) | (100 | %) |
| Current portion of mortgages and long-term debt | 16,376,220 | 19,256,906 | (2,880,686 | ) | (15 | %) |
| Mortgages on investment properties held for sale | – | 2,762,860 | (2,762,860 | ) | (100 | %) |
| Credit facilities | 13,545,000 | 16,115,000 | (2,570,000 | ) | (16 | %) |
| Total convertible debentures | 5,866,277 | 5,646,673 | 219,604 | 4 | % | |
| Total equity | 138,056,530 | 129,136,416 | 8,920,114 | 7 | % | |
| Weighted average units o/s – basic | 20,566,343 | 20,532,438 | 33,905 | – | ||
| Amounts on a per unit basis | ||||||
| FFO(1) | 0.164 | 0.152 | 0.012 | 8 | % | |
| AFFO(1) | 0.160 | 0.150 | 0.010 | 7 | % | |
| Distributions | 0.086 | 0.086 | – | – | ||
| (1) This is a non-IFRS financial measure with no standardized IFRS meaning and may not be comparable to other issuers. Refer to the sections “Non-IFRS financial measures”. | ||||||
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