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

Executive summary

• Q2 2026 delivered strong results, with partner revenue exceeding guidance and record net book value per unit of $25.83, driven by recent capital deployment, portfolio expansion to 25 partners, and unrealized FX gains.

• Total revenue and operating income rose 25% year-over-year, and distributable cash flow increased 42% compared to Q2 2025, reflecting higher partner distributions from recent investments.

• Major investments included CAD 75 million in Kubik and $35 million in Tesco, with total 2026 capital deployment reaching $126.1 million and a robust deployment and exit pipeline.

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

Financial highlights

• Total partner revenue reached CAD 50.6 million, 5.6% above guidance, with partner distributions at CAD 49.9 million, and total revenue and operating income at $42.9 million in Q2.

• Preferred distributions increased 24% year-over-year; annualized yield on preferred capital rose to 12.8% from 12.2%.

• Net distributable cash flow reached $25.4 million in Q2, up 41.8% year-over-year, and payout ratio for the first six months was 58%.

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

• Net book value per unit increased by CAD 0.52 in Q2 to a record CAD 25.83 ($25.83), up from $25.31 sequentially and $23.57 year-over-year.

Outlook and guidance

• Q3 partner revenue expected at approximately CAD 69 million (including $20.4 million in common distributions), reflecting seasonal common distributions.

• Estimated run rate revenue for the next 12 months increased to $208.4 million, up 14% year-over-year.

• Forward run rate payout ratio projected at 60%-65%, supporting continued investment and distribution growth.