Ravelin Properties REIT Reports Third Quarter 2025 Results

Core Insights - Ravelin Properties REIT reported its highest quarterly gross rental revenue and net operating income since Q3 2024, indicating a return to stability in same-property net operating income for the first time since Q2 2024 [3][4] - The REIT signed 235,163 square feet of new leases and renewals in Q3 2025 at a weighted average net rental rate of $18.29 per square foot, which is 20.5% above prior rental rates for previously vacant spaces [4] - The current leasing pipeline exceeds 895,000 square feet, with over 100,000 square feet of rent reviews underway in Ireland, presenting opportunities to increase in-place rents [4] Financial Performance - For the three months ended September 30, 2025, rental revenue was $47.5 million, a decrease of 5.2% from $50.2 million in the same period of 2024 [6] - Net operating income (NOI) for Q3 2025 was $21.3 million, down 12.2% from $24.3 million in Q3 2024 [6] - The REIT reported a net loss of $17.4 million for Q3 2025, a significant improvement compared to a net loss of $182.1 million in Q3 2024 [6] Occupancy and Property Management - As of September 30, 2025, portfolio occupancy was 74.5%, down from 75.8% as of June 30, 2025, primarily due to a known vacancy at 280 Broadway in Winnipeg [4] - Management is considering redeveloping high-vacancy properties, including a potential conversion of 280 Broadway into a self-storage facility [4] Liquidity and Debt Metrics - The REIT's liquidity as of September 30, 2025, included unrestricted cash of $12.2 million, a decrease from $13.6 million at the end of 2024 [4] - The net debt to adjusted EBITDA ratio was reported at 14.5x, up from 12.9x at the end of 2024, indicating increased leverage [6][21] - Adjusted EBITDA for the trailing twelve months was $76.4 million, down from $89.4 million in the previous year [19][21] Future Outlook - The REIT is in discussions with senior lenders to extend forbearance agreements that expired on September 30, 2025, with no agreement reached as of the report date [5] - The acquisition of a 25% co-ownership interest in two GTA properties is expected to further reduce the net debt to adjusted EBITDA ratio in upcoming quarters [4]