Canadian Net Real Estate Investment Trust (NET-UN) Q4 2024 earnings summary

Executive summary

• Completed sale of five gas station properties for CAD 12.8 million, reinvesting proceeds into four high-quality, necessity-based retail properties leased to national tenants, enhancing portfolio quality and resilience.

• Portfolio maintained 100% occupancy, positioning for resilience amid macroeconomic uncertainty.

• Q4 2024 was the strongest quarter of the year, with mortgage renewal impacts absorbed and a return to growth mode.

Financial highlights

• Normalized FFO per unit for 2024 was CAD 0.611, down 4% year-over-year; normalized FFO totaled CAD 12.56 million, down from CAD 13.1 million.

• NOI for 2024 was CAD 18.9 million, a decrease of 2.6% from the prior year, mainly due to property dispositions and rent adjustments.

• Property rental income was CAD 26.1 million, down 1.6% year-over-year.

• AFFO for 2024 was CAD 11.59 million (CAD 0.564/unit), down 1%.

• Q4 2024 net income attributable to unitholders was CAD 1.8 million, compared to CAD 4.3 million in Q4 2023.

Outlook and guidance

• Full impact of recent acquisitions will be realized in 2025, supporting future FFO growth.

• Six leases expiring in 2025 (CAD 2.42 million NOI); 76% already renewed at a 4% average rent increase.

• Distribution increases may be considered in 2025 as FFO per unit grows; monthly cash distributions of CAD 0.02875/unit announced for April–June 2025.