Alaris Equity Partners Income Trust (AD-UN) Q3 2026 earnings summary

Executive summary

• Net distributable cash flow rose 46.4% YoY to CAD 54.7 million, or CAD 1.19 per unit; Partner distribution revenue increased 25.9% to CAD 72.2 million.

• Record Run Rate Revenue of CAD 231.0 million and a portfolio of 26 Partners supported the outlook, while CAD 58.9 million in non-cash fair value losses contributed to a CAD 6.2 million comprehensive loss.

Financial highlights

• Partner distribution revenue rose 25.9% YoY to CAD 72.2 million; 9M revenue increased 19.7% to CAD 170.1 million.

• Net distributable cash flow grew 46.4% to CAD 54.7 million, or CAD 1.19 per unit; 9M cash flow rose 32.1% to CAD 112.8 million, or CAD 2.47 per unit.

• Q3 total Partner revenue was CAD 72.9 million, 5.3% above CAD 69.2 million guidance; total revenue and operating income fell 95.9% YoY to CAD 3.1 million, mainly due to fair value losses versus gains in Q3 2025.

• Comprehensive loss was CAD 6.2 million versus income of CAD 86.0 million in Q3 2025; net book value per unit was CAD 24.87 at quarter-end.

Outlook and guidance

• Q4 Partner revenue forecast at ~CAD 53 million versus CAD 72.9 million in Q3, mainly reflecting timing and variability of common distributions.

• Next-12-month Run Rate Revenue reached a record CAD 231 million; the estimated Run Rate Payout Ratio was ~63%, below the 65%-70% long-term target range and excluding potential future investments.

• Current assumptions indicate CAD 125.8 million in annual net cash from operating activities, with CAD 79.2 million for distributions and CAD 46.6 million available for reinvestment, debt repayment or other corporate purposes.

• Management expects continued investment growth through year-end and a good 2027 pipeline; 2027 resets based on 2026 performance are expected to be relatively flat overall.