Alaris Equity Partners Income Trust (AD-UN) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered record net book value per unit of CAD 25.83, up CAD 0.52, driven by earnings, comprehensive income, and unrealized FX gains, partially offset by distributions.

• Net distributable cash flow rose 42% year-over-year for Q2, reflecting higher Partner distributions from recent investments.

• Portfolio expanded to 25 partners, the largest in history, with significant investments in Kubik and Tesco, and strong earnings coverage and low leverage among most partners.

• Management remains optimistic about future deployment and exit opportunities, citing a robust pipeline and favorable market conditions.

Financial highlights

• Total partner revenue was CAD 50.6 million, 5.6% ahead of guidance; total revenue and operating income rose 25% year-over-year to CAD 42.9 million.

• Net distributable cash flow reached CAD 25.4 million in Q2, up 41.8% from Q2 2025.

• Earnings and comprehensive income improved to CAD 41.9 million from a loss of CAD 17.9 million in Q2 2025, mainly due to CAD 21.1 million in unrealized FX gains.

• Payout ratio for the first six months was 58%, below the long-term target of 65%-70%.

• Total partner distribution revenue grew 19.5% year-over-year to CAD 49.9 million.

Outlook and guidance

• Q3 partner revenue expected at approximately CAD 69 million, including CAD 20.4 million in common distributions.

• Next 12-month run rate revenue estimate increased to CAD 208.4 million, up 14% year-over-year.

• Pro forma payout ratio remains at 59%, below the long-term target of 65%-70%, supporting future investment and distribution growth.

• Run rate payout ratio is expected to remain between 60% and 65%, excluding future investments.