Crombie REIT Announces Third Quarter 2025 ResultsPortfolio strength and disciplined execution deliver record occupancy and continued FFO growthNovember 05, 2025 5:00 PM EST | Source: Crombie Real Estate Investment TrustNew Glasgow, Nova Scotia--(Newsfile Corp. - November 5, 2025) - Crombie Real Estate Investment Trust (TSX: CRR.UN) ("Crombie") today announced results for its third quarter ended September 30, 2025. Management will host a conference call to discuss the results at 10:00 a.m. (EST ...

Portfolio Overview - As of September 30, 2025, the company's portfolio comprised 86 properties, with 70 in the Industrial segment and 16 in the Office segment, which were classified as held for sale and reported within discontinued operations[9] - The Industrial segment's occupancy rate was 100.0% based on rentable square feet and 99.6% based on usable acres, with a weighted average lease term (WALT) of 4.7 years and annualized base rent (ABR) of $74.632 million, representing 50.9% of the total ABR[10] - The Office segment had an occupancy rate of 97.9%, a WALT of 4.6 years, and an ABR of $72.003 million, accounting for 49.1% of the total ABR[10] - In 2025, the company acquired industrial outdoor storage (IOS) assets totaling 38.7 usable acres for a contractual purchase price of $57.718 million[12] - Dispositions from continuing operations in the quarter ended September 30, 2025, included 3 industrial segment properties with 761,500 square feet, resulting in gross sales price of $71.584 million and a gain of $6.641 million[12] - Dispositions from discontinued operations in the quarter ended September 30, 2025, included 8 office segment properties with 1,224,800 square feet, resulting in gross sales price of $247.450 million and a gain of $24.767 million[13] Financial Performance - For the quarter ended September 30, 2025, the company reported a net loss attributable to common shareholders from continuing operations of $0.18 per share and net income attributable to common shareholders from discontinued operations of $0.27 per share[19] - FFO per share/unit was $0.46, Core FFO per share/unit was $0.48, and AFFO per share/unit was $0.47[19] - Adjusted EBITDAre for the quarter ended September 30, 2025, was $33.397 million[19] - Total Industrial segment revenue for the quarter ended September 30, 2025, was $25.800 million, with $11.484 million from IOS and $14.316 million from Traditional Industrial[22] - Total Industrial segment NOI for the quarter ended September 30, 2025, was $22.520 million, with $10.245 million from IOS and $12.275 million from Traditional Industrial[23]

Core Insights - Arbor Realty (ABR) is currently offering a 12% dividend yield, which is not fully supported by its distributable earnings, indicating potential sustainability concerns for the dividend payout [1] - The state of Texas, which represents ABR's largest geographical allocation, is experiencing a decline in monthly rents in its major metropolitan areas [1] - The equity market is highlighted as a significant mechanism for wealth creation or destruction over the long term, with Pacifica Yield focusing on undervalued high-growth companies, high-dividend stocks, REITs, and green energy firms [1] Company Summary - Arbor Realty is facing challenges with its dividend yield not being fully covered by distributable earnings, raising questions about its financial health [1] - The company's largest market, Texas, is seeing a downturn in rental prices, which could impact its revenue and profitability [1] Industry Context - The equity market is described as a powerful tool for wealth generation, emphasizing the importance of strategic investment in undervalued sectors [1]

Core Viewpoint - CareTrust REIT reported strong operating results for Q3 2025, highlighting significant investments and a robust financial position, setting the stage for continued growth into 2026 [1][2][5]. Financial Performance - Net income for Q3 2025 was $74.9 million, or $0.35 per diluted share, representing a 67% increase from the prior year [2][4]. - Normalized Funds from Operations (FFO) reached $94.7 million, or $0.45 per diluted share, an 18% increase year-over-year [2][4]. - Normalized Funds Available for Distribution (FAD) was $93.1 million, or $0.44 per diluted share, up 13% from the previous year [2][4]. Investment Activity - CareTrust closed $495 million in investments during Q3 2025, bringing the year-to-date total to approximately $1.6 billion, a record for the company [1][4]. - The company has an investment pipeline of approximately $600 million, indicating strong future growth potential [1][4]. Liquidity and Capital Structure - As of September 30, 2025, CareTrust reported a net debt-to-annualized normalized run rate EBITDA of 0.42x, significantly below its target leverage range of 4.0x to 5.0x [3][4]. - The company completed a public offering of 23 million shares at $32.00 per share, raising gross proceeds of $736 million [3][4]. - CareTrust has approximately $334 million in cash on hand and no borrowings on its $1.2 billion revolving credit line [3][4]. Dividend Information - The company declared a quarterly dividend of $0.335 per share, with a payout ratio of approximately 76% based on normalized FAD [6][4]. Guidance - Updated guidance for 2025 projects net income of approximately $1.41 to $1.42 per diluted share, and normalized FFO of approximately $1.76 to $1.77 [5][4].

Core Insights - CareTrust REIT, Inc. announced the closing of transactions totaling approximately $437 million [1] - The company acquired 12 skilled nursing facilities and one skilled nursing campus located in the Southeast and Mid-Atlantic regions [1] - The combined portfolio includes around 1,760 licensed skilled nursing beds and assisted living units [1]

Core Insights - Global Net Lease, Inc. (GNL) has achieved significant financial milestones, including an upgrade of its corporate credit rating to investment-grade BBB- from BB+ by Fitch Ratings, reflecting successful deleveraging and operational efficiencies [4][5]. - The company reduced its net debt by $2 billion since Q3 2024 and increased liquidity to $1.1 billion, enhancing its financial stability [4][10]. - GNL raised its full-year Adjusted Funds from Operations (AFFO) per share guidance to a new range of $0.95 to $0.97, up from the previous range of $0.92 to $0.96 [1][6]. Financial Performance - Revenue for Q3 2025 was $121.0 million, down from $138.7 million in Q3 2024, primarily due to asset dispositions [4][7]. - The net loss attributable to common stockholders was $71.1 million in Q3 2025, an improvement from a net loss of $76.6 million in Q3 2024 [4][7]. - Core Funds from Operations (Core FFO) decreased to $39.5 million from $53.9 million year-over-year, while Adjusted Funds from Operations (AFFO) fell to $53.2 million, or $0.24 per share, compared to $73.9 million, or $0.32 per share, in the prior year [4][7]. Capital Structure and Liquidity - GNL executed a $1.8 billion refinancing of its revolving credit facility, resulting in a 35 basis point reduction in the interest rate spread and extending the weighted average debt maturity [3][4]. - The weighted average interest rate decreased to 4.2% from 4.8% in Q3 2024, contributing to improved financial conditions [4][11]. - The company has a total liquidity of $1.1 billion and a revolving credit facility capacity of $1.2 billion, significantly up from $252.7 million and $366.0 million, respectively, in Q3 2024 [10][17]. Portfolio and Operations - As of September 30, 2025, GNL's portfolio consisted of 852 net lease properties across approximately 43 million rentable square feet, with a 97% lease rate and a weighted average lease term of 6.2 years [8][10]. - The company achieved a 26% renewal leasing spread, with significant renewals from GE Aviation and GXO Logistics, and a weighted average renewal term of 7.3 years [4][8]. - 60% of the annualized straight-line rent is derived from investment-grade or implied investment-grade tenants, indicating a strong tenant quality [4][8][13].

Core Insights - iREIT+HOYA Capital focuses on income-producing asset classes, aiming for sustainable portfolio income, diversification, and inflation hedging [1][2] - The investment group targets high-yield, dividend growth opportunities, with portfolios offering dividend yields up to 10% [2] Investment Strategy - The earnings season is highlighted as a favorable time for investment due to market reactions to earnings results and guidance, which can create bargain opportunities [2] - The investment approach emphasizes defensive stocks with a medium- to long-term horizon, catering to investors seeking dependable monthly income [2] Research Focus - The group provides research on various asset classes including REITs, ETFs, closed-end funds, preferreds, and dividend champions [2] - The service aims to assist investors in achieving portfolio diversification and inflation hedging through its income-focused portfolios [1][2]

Core Insights - iREIT+HOYA Capital focuses on income-producing asset classes, aiming for sustainable portfolio income, diversification, and inflation hedging [1][2] - The investment group targets high-yield, dividend growth opportunities, with portfolios offering dividend yields up to 10% [2] Group 1: Investment Strategy - The service emphasizes defensive stocks with a medium- to long-term investment horizon [2] - It provides research on various asset classes including REITs, ETFs, closed-end funds, preferreds, and dividend champions [2] Group 2: Market Behavior - Earnings season is highlighted as a favorable time for investment due to potential market reactions to earnings results and guidance [2]

Financial Data and Key Metrics Changes - Revenue for Q3 2025 was flat at $251 million compared to Q3 2024, while FFO decreased to $0.34 per share and AFFO decreased to $52 million due to increased interest expenses outpacing operational contributions [10] - Same-property cash NOI increased by 3.5%, with multifamily showing a strong increase of 6.8% and office increasing by 2.6% [10] Business Line Data and Key Metrics Changes - Office leasing activity included 215 leases covering 840,000 sq ft, with approximately 200,000 sq ft being new leases, reflecting a slowdown in the latter half of the quarter [9] - Same-property cash NOI for the entire portfolio increased by 3.5%, driven by strong performance in the multifamily segment [10] Market Data and Key Metrics Changes - The multifamily segment in the company's portfolio did not experience the slowdown seen in other parts of LA County, with same-store cash NOI increasing almost 7% year-over-year [4] - Office rental rates and concessions remained steady, with the average office leasing cost at $5.63 per sq ft per year, below the average for other office REITs [9] Company Strategy and Development Direction - The company is focusing on expanding its multifamily portfolio, with two development projects in Brentwood and Westwood expected to add over 1,000 premium units [5] - Plans are in place to convert an existing office tower to apartments and build a new residential building, with construction expected to begin in 2026 [6] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the fourth quarter's office leasing, noting that the slowdown in leasing activity was temporary [4] - The company continues to receive significant property tax refunds, which are expected to impact future financial performance, although the timing remains unpredictable [10] Other Important Information - The company refinanced almost $1.2 billion of debt at competitive rates, extending debt maturities and improving financial flexibility [5][6] - Management highlighted the importance of maintaining a strong tenant base and high renewal rates, with tenant retention above the long-term average of 70% [4] Q&A Session Summary Question: What did not materialize in the new leasing plan? - Management noted a general slowdown without being able to pinpoint specific markets or buildings, but indicated that the slowdown appeared temporary and leasing activity had picked up in October [14] Question: Are there considerations for stock buybacks or pruning the portfolio? - Management remains confident in both office and residential portfolios and is focused on growth rather than stock buybacks or asset sales [17] Question: Is the $74 million office expense a good run rate? - Management indicated that the $74 million includes both one-time and ongoing expenses, making it difficult to determine a clear run rate [22][23] Question: What industries are leasing well? - Management identified government as a weak sector, while most other sectors are performing well, with some optimism about UCLA's future leasing potential [26] Question: How will acquisitions be funded given the current stock price? - Management emphasized the use of positive cash flow and financing options, rather than issuing stock, to fund acquisitions [31] Question: What is the timeline for residential development projects? - Management indicated that several sites could be ready for development by the end of 2026, but emphasized the need to complete current projects first [39] Question: What opportunities exist with the upcoming Olympics? - Management noted that local improvements are being made in anticipation of the Olympics, which could enhance the area and benefit the company [58][59] Question: What is the status of leasing activity at Studio Plaza? - Management reported strong leasing activity at Studio Plaza, with various tenants showing interest and some already paying rent [61]

Portfolio Overview - Douglas Emmett's (DEI) office portfolio comprises 18 million square feet, representing 78% of total annual rent[13] - The multifamily portfolio consists of 4,410 units, accounting for 22% of total annual rent[13] - The company's total capitalization is approximately $7 billion, with annual revenues of approximately $1 billion[19] Market Position and Strategy - Douglas Emmett has approximately 39% average market share of Class A office space in its regions[19] - The company benefits from strong 3% to 5% annual rent increases in its leases[9] - Approximately 96% of DEI's leases are with tenants occupying less than 20,000 square feet[38] Financial Performance and Efficiency - Douglas Emmett's G&A expense as a percentage of NOI is 6.8%, allowing it to convert an extra 11.6% of NOI to cash flow compared to its benchmark group[45] - Recurring TI, LC, and Capex as a percentage of NOI is 14.2%, resulting in an extra 6.3% of NOI converted to cash flow compared to its benchmark group[45] - The company's annualized 2025 dividend is $0.76 per share[19] Sustainability - More than 84% of Douglas Emmett's eligible office space qualified for "ENERGY STAR Certification" as of December 2024[56] - The company has reduced its greenhouse gas emissions by 13% versus 2019 through December 31, 2024[56]