Canadian Net REIT Announces 2025 Second-Quarter Results

Core Insights - Canadian Net Real Estate Investment Trust reported strong second quarter results with an 8% year-to-date increase in Funds from Operations (FFO) per unit, reflecting successful property acquisitions and a disciplined growth strategy [2][4][8] - The REIT maintained a 100% occupancy rate in its focused portfolio of single-tenant, triple-net, and necessity-based properties, indicating resilience and demand in the market [3][4] - A conservative payout ratio of 52% supports the recently announced distribution increase and allows for further growth and stability [3][9] Financial Performance for Q2 2025 - FFO for Q2 2025 was $3.4 million, or $0.166 per unit, an increase of 8% from $3.2 million, or $0.154 per unit in Q2 2024 [4][17] - Rental income reached $6.9 million, up 4.4% from Q2 2024, while Net Operating Income (NOI) was $5.0 million, reflecting a 4.9% increase [4][17] - The REIT reported a net loss attributable to unitholders of $1.35 million, significantly improved from a net loss of $8.92 million in Q2 2024 [5][17] Financial Performance for the 6-Month Period Ended June 30, 2025 - For the six-month period, FFO was $6.8 million, or $0.330 per unit, an 8% increase compared to $6.3 million, or $0.306 per unit in the same period of 2024 [6][7] - Total rental income for the six months was $13.7 million, a 4.6% increase from the previous year, with NOI at $10.0 million, up 4.1% [7][12] - The REIT generated a net income attributable to unitholders of $8.8 million, a significant turnaround from a net loss of $7.7 million in the same period last year [7][12] Distribution Information - Canadian Net announced monthly cash distributions of $0.02917 per unit, totaling $0.35 per unit on an annualized basis, for October, November, and December 2025 [9][10] - The distributions are set for unitholders of record on October 15th, November 14th, and December 15th, 2025 [9][10] Non-IFRS Financial Measures - The increase in FFO was attributed to higher rental income from property acquisitions and lower interest charges on credit facilities [8][12] - NOI growth was primarily driven by increased rental income from property acquisitions, while net income variance was mainly due to changes in the fair value of investment properties [8][12]