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Choice Properties Real Estate Investment Trust (CHP.UN) investor relations material

Choice Properties Real Estate Investment Trust Q2 2025 earnings summary

Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.
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Q2 2025 earnings summary18 Jul, 2025

Executive summary

  • Achieved a solid quarter with strong demand for grocery-anchored retail and industrial assets, maintaining 97.8% occupancy and advancing $427M in transactions.

  • FFO per unit grew 3.9% year-over-year to $0.265, with robust leasing spreads and strong same asset NOI growth.

  • Maintains position as Canada's largest REIT with a high-quality, necessity-based retail portfolio and strategic relationship with a major national retailer.

  • Focuses on capital preservation, stable and growing cash flows, and appreciation in net asset value and distributions.

  • Reported a net loss of $154.2M for Q2 2025, primarily due to unfavorable fair value adjustment in Exchangeable Units.

Financial highlights

  • Q2 FFO was $191.6M or $0.265 per unit diluted, up 3.9% year-over-year; AFFO per unit was $0.231, down 7.2% year-over-year.

  • Same asset cash NOI increased by 1.4% year-over-year, with retail up 1.7%, industrial up 0.2% (4.2% ex-bad debt), and residential up 1.6%.

  • IFRS/NAV per unit rose to $14.38, up 1.5% from last quarter and year-over-year, with $148M total NAV growth.

  • Rental revenue for Q2 2025 was $350.8M, up from $335.4M in Q2 2024.

  • Portfolio occupancy remained strong at 97.8%.

Outlook and guidance

  • Confident in delivering on 2025 operational and financial goals, targeting stable occupancy and 2–3% year-over-year growth in Same-Asset NOI.

  • Annual FFO per unit diluted expected in the range of $1.05 to $1.06, reflecting 2–3% growth.

  • Focused on maximizing value in core asset classes and executing on near-term industrial and mixed-use development opportunities.

  • Continues to target stable and growing distributions, with a 1% increase in 2025 marking the third consecutive annual rise.

  • Maintaining strong leverage metrics, with Adjusted Debt to EBITDAFV targeted below 7.5x.

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Frequently asked questions

Choice Properties, Canada's preeminent diversified real estate investment trust, is the owner, manager and developer of a high-quality portfolio comprising 725 properties totaling 66.1 million square feet of gross leasable area across Canada. Choice Properties' retail portfolio showcases an exceptional lineup of national and regional tenants and with its $3.8 billion in total assets, including Canadian Tire as an anchor tenant, Choice Properties is well positioned to grow into an S&P/TSX 60 company. Choice Properties' objectives are to provide stable and growing cash distributions to unitholders and to maximize unitholder value through effective management and accretive portfolio growth.

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