Choice Properties Real Estate Investment Trust (CHP.UN) Q1 2025 earnings summary

Executive summary

• Reported a net loss of $96.2 million for Q1 2025, compared to net income of $142.3 million in Q1 2024, mainly due to a $304.8 million unfavorable fair value adjustment on Exchangeable Units.

• FFO per unit diluted increased by 1.9% year-over-year to $0.264, and AFFO per unit diluted rose 4.2% to $0.249.

• Same-asset NOI, cash basis, rose 2.9% year-over-year, with strong leasing spreads and high occupancy at 97.7%.

• Completed $95.2 million in transactions and invested $44.1 million in development projects, with major acquisitions and a robust development pipeline.

• Released 2024 ESG Report and increased annual distribution by 1.3%, marking the third consecutive annual increase.

Financial highlights

• Q1 2025 FFO was $190.9 million, or $0.264 per unit diluted, up 1.9% year-over-year; AFFO per unit diluted rose to $0.249.

• Same-asset NOI (cash basis) was $262.1 million, up $10.4 million (2.9%) year-over-year, with retail up 1.5%, industrial up 6.1%, and mixed-use/residential up 15.3%.

• NAV per unit increased to $14.17, up $0.10 from year-end 2024 and 3.5% year-over-year.

• Rental revenue grew to $372.0 million, up $10.6 million year-over-year.

• Distribution declared per unit was $0.191, up from $0.188 in Q1 2024.

Outlook and guidance

• Targeting stable occupancy and 2–3% year-over-year growth in same-asset NOI (cash basis) for 2025.

• Annual FFO per unit diluted guidance set at $1.05–$1.06, reflecting 2–3% growth.

• Expect industrial and retail occupancy to improve in the second half of 2025, with industrial ending above 98%.

• Majority of development spend to focus on industrial development at Caledon Business Park and retail intensification.

• Maintaining strong leverage metrics, with adjusted debt to EBITDAFV targeted below 7.5x.