.jpg)
15 hours ago
2
Article content
GRANITE’S FINANCIAL, OPERATING AND PROPERTY HIGHLIGHTS
Article content
Three Months Ended June 30, | Six Months Ended June 30, | ||||||||||||
(in millions, except as noted) | 2025 | 2024 | 2025 | 2024 | |||||||||
Revenue | $ | 149.3 | $ | 140.3 | $ | 303.9 | $ | 279.2 | |||||
Net operating income (“NOI”) | $ | 123.4 | $ | 116.8 | $ | 249.0 | $ | 231.3 | |||||
NOI – cash basis(4) | $ | 121.1 | $ | 113.7 | $ | 244.0 | $ | 225.1 | |||||
Constant currency same property NOI – cash basis(4) | 4.6 | % | 6.0 | % | 4.5 | % | 4.2 | % | |||||
Net income attributable to unitholders | $ | 95.0 | $ | 76.2 | $ | 138.9 | $ | 165.3 | |||||
Funds from operations (“FFO”)(1) | $ | 85.4 | $ | 83.5 | $ | 176.5 | $ | 166.0 | |||||
Adjusted funds from operations (“AFFO”)(2) | $ | 75.1 | $ | 73.8 | $ | 163.6 | $ | 151.8 | |||||
Diluted FFO per unit(1) | $ | 1.39 | $ | 1.32 | $ | 2.85 | $ | 2.62 | |||||
Diluted AFFO per unit(2) | $ | 1.23 | $ | 1.17 | $ | 2.64 | $ | 2.39 | |||||
Monthly distributions paid per unit | $ | 0.85 | $ | 0.83 | $ | 1.70 | $ | 1.65 | |||||
AFFO payout ratio(3) | 69 | % | 70 | % | 64 | % | 69 | % | |||||
As at June 30, 2025 and December 31, 2024 | 2025 | 2024 | |||||||||||
Fair value of investment properties | $ | 9,022.8 | $ | 9,397.3 | |||||||||
Assets held for sale(10) | $ | 310.5 | $ | — | |||||||||
Cash and cash equivalents | $ | 86.4 | $ | 126.2 | |||||||||
Total debt(5) | $ | 3,302.5 | $ | 3,087.8 | |||||||||
Net leverage ratio(6) | 36 | % | 32 | % | |||||||||
Number of income-producing properties | 135 | 138 | |||||||||||
Gross leasable area (“GLA”), square feet | 60.6 | 63.3 | |||||||||||
Occupancy, by GLA | 95.8 | % | 94.9 | % | |||||||||
Committed occupancy, by GLA(9) | 96.5 | % | 95.0 | % | |||||||||
Magna as a percentage of annualized revenue(8) | 28 | % | 26 | % | |||||||||
Magna as a percentage of GLA | 20 | % | 19 | % | |||||||||
Weighted average lease term in years, by GLA | 5.5 | 5.7 | |||||||||||
Overall capitalization rate(7) | 5.5 | % | 5.3 | % | |||||||||
Article content
The above disclosure includes certain non-GAAP performance measures and non-GAAP ratios (see “NON-GAAP PERFORMANCE MEASURES, RATIOS AND RECONCILIATIONS“). A more detailed discussion of Granite’s condensed consolidated combined financial results for the three and six month periods ended June 30, 2025 and 2024 is contained in Granite’s Management’s Discussion and Analysis of Results of Operations and Financial Position (“MD&A”) and the unaudited condensed consolidated combined financial statements for those periods and the notes thereto, which are available through the internet on the Canadian Securities Administrators’ System for Electronic Data Analysis and Retrieval Plus (“SEDAR+”) and can be accessed at www.sedarplus.ca and on the United States Securities and Exchange Commission’s (the “SEC”) Electronic Data Gathering, Analysis and Retrieval System (“EDGAR”), which can be accessed at www.sec.gov.
Article content
2024 GLOBAL ENVIRONMENTAL, SOCIAL, GOVERNANCE + RESILIENCE (ESG+R) REPORT
Article content
Today, Granite released its 2024 ESG+R report which highlights Granite’s ESG+R program initiatives and updates from the 2024 calendar year. A copy of the report can be found on Granite’s website at https://granitereit.com/2024-global-esgr-report.
Article content
Article content
2025 OUTLOOK
Article content
Granite is increasing its 2025 guidance relative to estimates presented at the commencement of the year on February 26, 2025. Granite’s current outlook reflects lease renewals and new leasing of vacant space completed year-to-date which have increased overall NOI estimates including constant currency same property NOI – cash basis estimates. The current outlook reflects the acquisition of the Florida properties completed June 30, 2025, but does not include any assumption for potential property dispositions since the timing of such dispositions cannot be accurately determined at this time. In addition, the current outlook reflects year-to-date financing and NCIB activity. Granite’s FFO per unit forecast represents an approximate 6% to 9% increase over 2024 and the AFFO per unit forecast represents an approximate 1% to 4% increase over 2024, partially impacted by higher maintenance capital expenditures relative to the prior year.
Article content
The high and low ranges of Granite’s forecast are driven by foreign currency exchange rate assumptions for the six-month forecast period between July and December 2025, which have been modified relative to guidance provided on February 26, 2025 and May 7, 2025, reflecting a weakening of the Canadian dollar relative to the Euro offset by the strengthening of the Canadian dollar against the U.S. dollar.
Article content
The table below outlines Granite’s current forecast for the year ending December 31, 2025:
Article content
Measure | Current | Previously Published |
EUR:CAD exchange rate (1) | 1.56 to 1.61 | 1.52 to 1.58 |
USD:CAD exchange rate (1) | 1.35 to 1.39 | 1.37 to 1.42 |
FFO per unit | $5.75 to $5.90 | $5.70 to $5.85 |
AFFO per unit | $4.90 to $5.05 | $4.80 to $4.95 |
Maintenance capital expenditures, tenant allowances and leasing commissions impacting AFFO | no change | $40.0 million |
Constant currency same property NOI – cash basis, four quarter average | 5.0% to 6.5% | 4.5% to 6.0% |
Article content
(1) Foreign exchange rate assumptions pertain to forecast period only of the respective outlook.
Article content
Granite’s 2025 forecast assumes no incremental acquisitions and dispositions, and assumes no favourable reversals of tax provisions relating to prior years which cannot be determined at this time. Non-GAAP performance measures are included in Granite’s 2025 forecast above (see “NON-GAAP PERFORMANCE MEASURES, RATIOS AND RECONCILIATIONS”). See also “FORWARD-LOOKING STATEMENTS”.
Article content
Article content
CONFERENCE CALL
Article content
Granite will hold a conference call and live audio webcast to discuss its financial results. The conference call will be chaired by Kevan Gorrie, President and Chief Executive Officer.
Article content
Article content
To hear a replay of the webcast, please visit https://granitereit.com/events. The replay will be available for 90 days.
Article content
OTHER INFORMATION
Article content
Additional property statistics as at June 30, 2025 have been posted to our website at https://granitereit.com/property-statistics-q2-2025. Copies of financial data and other publicly filed documents are available through the internet on SEDAR+, which can be accessed at www.sedarplus.ca and on EDGAR, which can be accessed at www.sec.gov.
Article content
Granite is a Canadian-based REIT engaged in the acquisition, development, ownership and management of logistics, warehouse and industrial properties in North America and Europe. Granite owns 141 investment properties representing approximately 60.6 million square feet of gross leasable area.
Article content
For further information, please see our website at www.granitereit.com or contact Teresa Neto, Chief Financial Officer, at (647) 925-7560.
Article content
NON-GAAP PERFORMANCE MEASURES, RATIOS AND RECONCILIATIONS
Article content
Readers are cautioned that certain terms used in this press release such as FFO, AFFO, FFO payout ratio, AFFO payout ratio, same property NOI – cash basis, constant currency same property NOI – cash basis, total debt and net debt, net leverage ratio, and any related per unit amounts used by management to measure, compare and explain the operating results and financial performance of the Trust do not have standardized meanings prescribed under IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards” or “GAAP”) and, therefore, should not be construed as alternatives to net income, cash provided by operating activities or any other measure calculated in accordance with IFRS Accounting Standards. Additionally, because these terms do not have a standardized meaning prescribed by IFRS Accounting Standards, they may not be comparable to similarly titled measures presented by other publicly traded entities.
English (US)