Choice Properties Real Estate Investment Trust (CHP.UN) Q2 2026 earnings summary

Executive summary

• Largest REIT in Canada with 699 high-quality properties valued at $18.1B as of June 30, 2026, spanning retail, industrial, and mixed-use/residential segments, with 97.7% overall occupancy.

• Q2 2026 results reflect strong portfolio fundamentals, robust leasing activity, and high occupancy, with strategic repositioning initiatives and disciplined execution.

• Strategic relationship with a major national retailer anchors 57% of gross rental revenue, with a focus on necessity-based retail, industrial distribution, and urban residential development.

• ESG leadership with net zero targets and significant diversity in senior management.

• Entered agreement to acquire First Capital REIT assets in a $9.4 billion transaction, expected to close in H2 2026.

Financial highlights

• Q2 2026 FFO was $192.9M ($0.267/unit diluted), up 0.8% year-over-year; AFFO per unit was $0.217, down 6.1% year-over-year, mainly due to higher capital spend.

• Same-Asset NOI (cash basis) grew 2.8% year-over-year, with retail up 1.9%, industrial up 5.8%, and mixed-use/residential up 4.1%.

• Reported net loss of $176.4M for Q2 2026, primarily due to non-cash fair value adjustments on Exchangeable Units.

• NAV per unit increased to $14.73, up 2.4% from prior year.

• Rental revenue for Q2 2026 was $361.3M, up from $350.8M in Q2 2025.

Outlook and guidance

• Outlook for 2026 reiterates stable occupancy, 2–3% Same-Asset NOI growth, and FFO per unit (diluted) between $1.08 and $1.10, excluding the impact of the FCR transaction.

• Targeting 8–9% total annual return, with 1% incremental growth from development and a distribution yield of ~5%.

• Development pipeline of 18.6M SF, including 1.3M SF under active development.

• Focus remains on capital preservation, stable cash flows, and NAV appreciation.

• Maintaining strong leverage metrics, with Adjusted Debt to EBITDAFV targeted below 7.5x.