Canadian Net REIT Announces 2025 Fourth-Quarter Results
REIT also announces monthly distributions for Q2 2026
MONTRÉAL, March 17, 2026 (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 December 31st, 2025 (“Q4 2025”) and distributions for April, May and June 2026 (“Q2 2026”).
“2025 was a milestone year for Canadian Net. We delivered 9% growth in Normalized FFO per unit, setting a new all-time high, while maintaining 100% occupancy across the portfolio,” said Kevin Henley, President and CEO. “These results are the direct outcome of the capital recycling strategy we executed over the past two years and the continued strength of our necessity-based retail niche. With a conservative payout ratio of 52% and liquidity in place, we are well-positioned to act on accretive acquisition opportunities as they arise and to continue delivering sustainable, long-term growth for our unitholders.”
RESULTS FOR Q4 2025
Canadian Net reported Funds from operations1 (“FFO”) of $3.5 million, or $0.169 per unit, an increase of 7% compared to $3.3 million, or $0.158 per unit, for the quarter ended December 31, 2024 (“Q4 2024”). Normalized FFO1 for the quarter was $3.5 million, or $0.170 per unit, an increase of 8% compared to $3.3 million, or $0.158 per unit for Q4 2024.
Rental income was $7.3 million in Q4 2025, an increase of 8.0% from Q4 2024. Net Operating Income1 (“NOI”) in Q4 2025 was $5.2 million, an increase of 8.8% from Q4 2024, reflecting an increase in rental income due to property acquisitions. Rental income and NOI1 were also lower in Q4 2024 due to property dispositions.
The REIT generated a net income attributable to unitholders of $5.0 million in Q4 2025 compared to a net income of $1.8 million in Q4 2024.
RESULTS FOR THE 12-MONTH PERIOD ENDED DECEMBER 31, 2025
Canadian Net reported FFO1 of $13.7 million, or $0.663 per unit, an increase of 10% compared to $12.4 million, or $0.601 per unit for the 12-month period ended December 31, 2024. Normalized FFO1 for the period was $13.7 million, or $0.664 per unit, an increase of 9% compared to $12.6 million, or $0.611 per unit for 2024.
Rental income was $28.0 million for the 12-month period ended December 31, 2025, an increase of 7.1% from the same period in 2024. NOI1 over the 12-month period ended December 31, 2025 was $20.2 million, an increase of 6.9% from the same period in 2024, reflecting mainly an increase in rental income due to property acquisitions.
The REIT generated a net income attributable to unitholders of $16.7 million for the 12-month period ended December 31, 2025 compared to a net income of $7.1 million for the same period last year.
The increase in Normalized 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.
_____________________
1 Non-IFRS financial measure with no standardized IFRS meaning and may not be comparable to other issuers. Refer to the section “Non-IFRS financial measures”.
DISTRIBUTIONS
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 April 30th, May 29th and June 30th, 2026, to unitholders of record on April 15th, May 15th and June 15th, 2026, respectively.
The tables below represent other financial highlights and the reconciliations of certain non-IFRS measures for Q4 2025 and Q4 2024. This information should be read in conjunction with the Audited Consolidated Financial Statements and Management’s Discussion & Analysis (“MD&A”) for the quarters ended December 31st, 2025 and December 31st, 2024.
| SUMMARY OF SELECTED FINANCIAL INFORMATION | ||||||||
|
12 months |
||||||||
| Periods ended December 31 | 2025 | 2024 | Δ | % | ||||
| Financial info | ||||||||
| Property rental income | 27,980,353 | 26,123,869 | 1,856,484 | 7 | % | |||
| Net income and comprehensive income | 16,673,093 | 7,103,541 | 9,569,552 | 135 | % | |||
| NOI(1) | 20,226,478 | 18,917,202 | 1,309,276 | 7 | % | |||
| FFO(1) | 13,650,863 | 12,355,243 | 1,295,620 | 10 | % | |||
| Normalized FFO(1) | 13,675,863 | 12,563,157 | 1,112,706 | 9 | % | |||
| AFFO(1) | 13,010,163 | 11,593,473 | 1,416,690 | 12 | % | |||
| EBITDA(1) | 24,223,252 | 13,939,769 | 10,283,483 | 74 | % | |||
| Adjusted EBITDA(1) | 19,804,227 | 18,519,338 | 1,284,889 | 7 | % | |||
| Investment properties | 291,526,251 | 275,478,504 | 16,047,747 | 6 | % | |||
| Adjusted investment properties(1) | 343,446,086 | 325,032,772 | 18,413,314 | 6 | % | |||
| Total assets | 318,719,481 | 301,321,985 | 17,397,496 | 6 | % | |||
| Mortgages | 145,616,797 | 132,194,629 | 13,422,168 | 10 | % | |||
| Current portion of mortgages | 14,969,056 | 16,179,507 | (1,210,451 | ) | (7 | %) | ||
| Credit facilities | 9,310,000 | 13,240,000 | (3,930,000 | ) | (30 | %) | ||
| Total convertible debentures | 3,825,584 | 5,898,927 | (2,073,343 | ) | (35 | %) | ||
| Total equity | 139,166,648 | 129,440,950 | 9,725,698 | 8 | % | |||
| Weighted average units o/s - basic | 20,589,921 | 20,553,943 | 35,978 | - | ||||
| Amounts on a per unit basis | ||||||||
| FFO(1) | 0.663 | 0.601 | 0.062 | 10 | % | |||
| Normalized FFO(1) | 0.664 | 0.611 | 0.053 | 9 | % | |||
| AFFO(1) | 0.632 | 0.564 | 0.068 | 12 | % | |||
| Distributions | 0.348 | 0.345 | 0.003 | 1 | % | |||
| (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”. | ||||||||
NON-IFRS FINANCIAL MEASURES
The Trust’s consolidated financial statements are prepared in accordance with International Financial Reporting Standards ("IFRS"). In this press release, as a complement to results provided in accordance with IFRS, the Trust discloses and discusses certain non-IFRS financial measures: FFO, FFO per unit, Normalized FFO, Normalized FFO per unit, AFFO, AFFO per unit, NOI, and Adjusted Investment Properties. These non-IFRS measures are not defined by IFRS, do not have a standardized meaning, and may not be comparable with similar measures presented by other issuers. Canadian Net has presented such non-IFRS measures as management of the Trust believes they are relevant measures of Canadian Net's underlying operating performance and debt management. Non-IFRS measures should not be considered as alternatives to net income, cash generated from (utilized in) operating activities, or comparable metrics determined in accordance with IFRS as indicators of the Trust's performance, liquidity, cash flow, and profitability. Information appearing in this news release is a select summary of results. This news release should be read in conjunction with the Condensed Consolidated Interim Financial Statements and MD&A for the Trust. Please refer to the "Non IFRS Financial Measures" section in Canadian Net’s management's discussion and analysis for the period ended December 31, 2025, available under Canadian Net's profile on SEDAR+ at www.sedarplus.ca for a full description of these measures and, where applicable, a reconciliation to the most directly comparable measure calculated in accordance with IFRS. Such explanation is incorporated by reference herein.
In addition, below are the reconciling tables for the non-IFRS measures used in this press release.
| Reconciliation of Investment Properties to Adjusted Investment Properties | ||||
| As at December 31 | 2025 | 2024 | Δ | |
| Investment Properties | ||||
| Developed properties | 291,526,251 | 275,478,504 | 6 | % |
| Joint Venture Ownership(1) | ||||
| Developed properties | 50,595,388 | 47,909,829 | 6 | % |
| Properties under development | 1,324,447 | 1,644,439 | (19 | %) |
| Adjusted Investment Properties(2) | 343,446,086 | 325,032,772 | 6 | % |
| (1) Represents Canadian Net’s proportionate share | ||||
| (2) This is a non-IFRS financial measure with no standardized IFRS meaning and may not be comparable to other issuers. Refer to the section “Non-IFRS financial measures” | ||||
| Results of Operations | ||||||||||||||
|
3 months |
12 months | |||||||||||||
| Periods ended December 31 | 2025 | 2024 | Δ | 2025 | 2024 | Δ | ||||||||
| Rental Income | 7,329,167 | 6,786,773 | 542,394 | 27,980,353 | 26,123,869 | 1,856,484 | ||||||||
| Operating expenses | (2,158,004 | ) | (2,035,883 | ) | (122,121 | ) | (7,753,875 | ) | (7,206,667 | ) | (547,208 | ) | ||
| Net Operating Income(1) | 5,171,163 | 4,750,890 | 420,273 | 20,226,478 | 18,917,202 | 1,309,276 | ||||||||
| Share of net income from investments in joint ventures | 2,340,088 | 284,362 | 2,055,726 | 3,128,491 | 1,862,241 | 1,266,250 | ||||||||
| Change in fair values of investment properties | 175,767 | (1,342,261 | ) | 1,518,028 | 3,044,899 | (4,755,298 | ) | 7,800,197 | ||||||
| Unit-based compensation | (239,896 | ) | (53,920 | ) | (185,976 | ) | (1,060,444 | ) | (769,457 | ) | (290,987 | ) | ||
| Administrative expenses | (266,669 | ) | (285,448 | ) | 18,779 | (1,065,289 | ) | (1,245,935 | ) | 180,646 | ||||
| Financial expenses | (1,861,883 | ) | (1,662,745 | ) | (199,138 | ) | (7,264,691 | ) | (7,002,536 | ) | (262,155 | ) | ||
| Income taxes | (336,351 | ) | 97,324 | (433,675 | ) | (336,351 | ) | 97,324 | (433,675 | ) | ||||
| Net income | ||||||||||||||
| attributable to unitholders | 4,982,219 | 1,788,202 | 3,194,017 | 16,673,093 | 7,103,541 | 9,569,552 | ||||||||
| FFO(1) | 3,482,793 | 3,252,599 | 7 | % | 13,650,863 | 12,355,243 | 11 | % | ||||||
| FFO per unit(1) | 0.169 | 0.158 | 7 | % | 0.663 | 0.601 | 10 | % | ||||||
| Normalized FFO(1) | 3,507,793 | 3,252,599 | 8 | % | 13,675,863 | 12,563,157 | 9 | % | ||||||
| Normalized FFO per unit(1) | 0.170 | 0.158 | 8 | % | 0.664 | 0.611 | 9 | % | ||||||
| Weighted avg. units o/s | ||||||||||||||
| Basic | 20,597,637 | 20,561,060 | 36,577 | 20,589,921 | 20,553,943 | 35,978 | ||||||||
| (1) This is a non-IFRS financial measure that does not have any standardized IFRS meaning and as such may not be comparable to other issuers. Refer to section “Non-IFRS financial measures” | ||||||||||||||
| Reconciliation of Net Income to Funds from Operations | |||||||||||||
| 3 months | 12 months | ||||||||||||
| Periods ended December 31 | 2025 | 2024 | Δ | 2025 | 2024 | Δ | |||||||
| Net income attributable | |||||||||||||
| to unitholders | 4,982,219 | 1,788,202 | 3,194,017 | 16,673,093 | 7,103,541 | 9,569,552 | |||||||
| Δ in value of investment properties | (175,767 | ) | 1,342,261 | (1,518,028 | ) | (3,044,899 | ) | 4,755,298 | (7,800,197 | ) | |||
| Δ in value of investment | |||||||||||||
| properties in joint ventures | (1,916,155 | ) | 180,446 | (2,096,601 | ) | (1,389,959 | ) | (145,151 | ) | (1,244,808 | ) | ||
| Unit-based compensation | 239,896 | 53,920 | 185,976 | 1,060,444 | 769,457 | 290,987 | |||||||
| Δ fair value adjustments on derivative | |||||||||||||
| financial instruments | 16,249 | (12,278 | ) | 28,527 | 15,833 | (30,578 | ) | 46,411 | |||||
| Income taxes | 336,351 | (99,952 | ) | 436,303 | 336,351 | (97,324 | ) | 433,675 | |||||
| FFO(1) | 3,482,793 | 3,252,599 | 7 | % | 13,650,863 | 12,355,243 | 11 | % | |||||
| Sales tax expense | - | - | - | - | 117,150 | (117,150 | ) | ||||||
| Mortgage early repayment fee | 25,000 | - | 25,000 | 25,000 | 90,764 | (65,764 | ) | ||||||
| Normalized FFO(1) | 3,507,793 | 3,252,599 | 8 | % | 13,675,863 | 12,563,157 | 9 | % | |||||
| FFO per unit(1) | 0.169 | 0.158 | 7 | % | 0.663 | 0.601 | 10 | % | |||||
| Normalized FFO per unit(1) | 0.170 | 0.158 | 8 | % | 0.664 | 0.611 | 9 | % | |||||
| Distributions | 1,802,545 | 1,773,436 | 29,109 | 7,155,152 | 7,091,138 | 64,014 | |||||||
| Distributions per unit | 0.088 | 0.086 | 2.32558 | % | 0.348 | 0.345 | 0.86957 | % | |||||
| FFO per unit(1) - after distributions | 0.081 | 0.072 | 13 | % | 0.315 | 0.256 | 23 | % | |||||
| Normalized FFO per unit(1) - after distributions | 0.082 | 0.072 | 14 | % | 0.316 | 0.266 | 19 | % | |||||
| Distributions as a % of FFO(1) | 52 | % | 54 | % | (2 | %) | 52 | % | 57 | % | (5 | %) | |
| Distributions as a % of Normalized FFO(1) | 52 | % | 54 | % | (2 | %) | 52 | % | 56 | % | (4 | %) | |
| Weighted avg. units o/s | |||||||||||||
| Basic | 20,597,637 | 20,561,060 | 36,577 | 20,589,921 | 20,553,943 | 35,978 | |||||||
| (1) This is a non-IFRS financial measure with no standardized IFRS meaning and may not be comparable to other issuers. Refer to the section “Non-IFRS financial measures” | |||||||||||||
| Adjusted Funds from Operations | |||||||||||||
| 3 months | 12 months | ||||||||||||
| Periods ended December 31 | 2025 | 2024 | Δ | 2025 | 2024 | Δ | |||||||
| FFO (1) | 3,482,793 | 3,252,599 | 230,194 | 13,650,863 | 12,355,243 | 1,295,620 | |||||||
| Straight-line rent adjustment(2) | (34,298 | ) | (35,414 | ) | 1,116 | (159,143 | ) | (123,278 | ) | (35,865 | ) | ||
| Maintenance/cap-ex on | |||||||||||||
| existing properties | (194,601 | ) | (282,562 | ) | 87,961 | (481,557 | ) | (638,492 | ) | 156,935 | |||
| AFFO(1) | 3,253,894 | 2,934,623 | 11 | % | 13,010,163 | 11,593,473 | 12 | % | |||||
| AFFO per unit(1) | 0.158 | 0.143 | 11 | % | 0.632 | 0.564 | 12 | % | |||||
| Distributions per unit | 0.088 | 0.086 | 2 | % | 0.348 | 0.345 | 1 | % | |||||
| AFFO per unit(1) - after distributions | 0.070 | 0.057 | 23 | % | 0.284 | 0.219 | 30 | % | |||||
| Distributions as a % of AFFO(1) | 56 | % | 60 | % | (4 | %) | 55 | % | 61 | % | (6 | %) | |
| Weighted avg. units o/s | |||||||||||||
| Basic | 20,597,637 | 20,561,060 | 36,577 | 20,589,921 | 20,553,943 | 35,978 | |||||||
| (1) This is a non-IFRS financial measure with no standardized IFRS meaning and may not be comparable to other issuers. Refer to the section “Non-IFRS financial measures” | |||||||||||||
| (2) Adjusted for the proportionate share of equity-accounted investments | |||||||||||||
| Reconciliation of Net Income to EBITDA | ||||||||||||||
|
3 months |
12 months |
|||||||||||||
| Periods ended December 31 | 2025 | 2024 | Δ | 2025 | 2024 | Δ | ||||||||
| Net income attributable | ||||||||||||||
| to unitholders | 4,982,219 | 1,788,202 | 3,194,017 | 16,673,093 | 7,103,541 | 9,569,552 | ||||||||
| Net interest expense | 1,817,368 | 1,671,806 | 145,562 | 7,213,808 | 6,933,552 | 280,256 | ||||||||
| Income taxes | 336,351 | (99,952 | ) | 436,303 | 336,351 | (97,324 | ) | 433,675 | ||||||
| EBITDA(1) | 7,135,938 | 3,360,056 | 3,775,882 | 24,223,252 | 13,939,769 | 10,283,483 | ||||||||
| Δ in value of investment properties | (175,767 | ) | 1,342,261 | (1,518,028 | ) | (3,044,899 | ) | 4,755,298 | (7,800,197 | ) | ||||
| Δ in value of investment | ||||||||||||||
| properties in joint ventures | (1,916,155 | ) | 180,446 | (2,096,601 | ) | (1,389,959 | ) | (145,151 | ) | (1,244,808 | ) | |||
| Δ in value of convertible debentures | 16,249 | (12,278 | ) | 28,527 | 15,833 | (30,578 | ) | 46,411 | ||||||
| Adjusted EBITDA(1) | 5,060,265 | 4,870,485 | 4 | % | 19,804,227 | 18,519,338 | 7 | % | ||||||
| Interest expense | 1,888,086 | 1,753,732 | 134,354 | 7,522,094 | 7,322,675 | 199,419 | ||||||||
| Principal repayments | 1,331,813 | 1,157,941 | 173,872 | 5,073,704 | 4,664,354 | 409,350 | ||||||||
| Debt service requirements | 3,219,899 | 2,911,673 | 11 | % | 12,595,798 | 11,987,029 | 5 | % | ||||||
| Interest coverage ratio based on adjusted EBITDA(1) | 2.7x | 2.8x | (0.1x) | 2.6x | 2.5x | 0.1x | ||||||||
| Debt service coverage based on adjusted EBITDA(1) | 1.6x | 1.7x | (0.1x) | 1.6x | 1.5x | 0.1x | ||||||||
| (1) This is a non-IFRS financial measure that does not have any standardized IFRS meaning and as such may not be comparable to other issuers. Refer to section “Non-IFRS financial measures” | ||||||||||||||
EARNINGS WEBCAST
Canadian Net will host a webcast on March 18th at 9:00 a.m. (EST) to discuss the results.
The link to join the webcast is the following: https://edge.media-server.com/mmc/p/ghazdjt6
About Canadian Net – Canadian Net Real Estate Investment Trust is an open-ended trust that acquires and owns high-quality triple net and management-free commercial real estate properties.
Forward-Looking Statements - This press release contains forward-looking statements and information as defined by applicable securities laws. Canadian Net warns the reader that actual events may differ materially from current expectations due to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such statements. Among these include the risks related to economic conditions, the risks associated with the local real estate market, the dependence on the financial condition of tenants, the uncertainties related to real estate activities, the changes in interest rates, the availability of financing in the form of debt or equity, the effects related to the adoption of new IFRS standards, as well as other risks and factors described from time to time in the documents filed by Canadian Net with securities regulators, including the management report. Canadian Net does not update or modify its forward-looking statements even if future events occur or for any other reason unless required by law or any regulatory authority.
Neither the TSX Venture Exchange Inc. nor its Regulatory Services Provider (as that term is defined in the Policy of the TSX Venture Exchange and its Regulatory Services Provider) accepts any responsibility for the adequacy or accuracy of this release.
The December 31, 2025, financial statements and management discussion & analysis of Canadian Net may be viewed on SEDAR+ at www.sedarplus.ca.
For further information please contact Kevin Henley at (450) 536-5328.
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