Canadian Net Real Estate Investment Trust (NET-UN) Q1 2026 earnings summary

Executive summary

• FFO per unit grew 1% year-over-year to CAD 0.166 for Q1 2026, marking the 13th distribution increase since 2012, despite temporary drag from new debenture issuance for acquisitions.

• Portfolio operated as expected, with disciplined acquisitions and organic growth through property refinancing.

• Rental income increased 1.3% year-over-year to CAD 6.9 million, driven by property acquisitions.

• Net income attributable to unitholders was CAD 2.5 million, down from CAD 10.2 million last year, mainly due to changes in fair value of investment properties.

• 100% occupancy as of March 31, 2026, supporting stable cash flows and future growth.

Financial highlights

• FFO for Q1 2026 was CAD 3.41 million, up from CAD 3.38 million in Q1 2025; NOI rose to CAD 5.01 million from CAD 4.97 million year-over-year.

• Property rental income increased 1% to CAD 6.94 million compared to Q1 2025.

• AFFO was CAD 3.33 million (up 1%); AFFO per unit CAD 0.162 (up 1%).

• EBITDA was CAD 4.21 million (down 65%); adjusted EBITDA CAD 4.62 million (down 4%).

• Distributions per unit: CAD 0.088 (up 2% year-over-year).

Outlook and guidance

• Annual distribution to increase 3% to CAD 0.36 per unit starting July 2026.

• Capital on hand and fresh equity provide acquisition capacity of CAD 12 million, potentially rising to CAD 40–45 million with property refinancing.

• Rental spreads on renewals expected between 5% and 7% through 2027, consistent with prior years.

• Management expects FFO per unit growth to accelerate as acquisition capital is deployed.

• Active acquisition pipeline and strong balance sheet position the REIT for continued growth.