Choice Properties Real Estate Investment Trust (CHP.UN) Q4 2025 earnings summary

Executive summary

• Delivered strong operational and financial results in 2025, meeting or exceeding all core financial targets despite economic uncertainty, and maintaining high occupancy across retail, industrial, and mixed-use/residential segments.

• Largest REIT in Canada with 699 high-quality properties valued at $17.8B as of December 31, 2025, spanning retail, industrial, and mixed-use/residential segments.

• Strategic relationship with a major national retailer provides a competitive advantage and acquisition pipeline.

• Leadership transition with David Muallim returning as SVP, Leasing and Operations, and Niall Collins focusing on development.

• Focused on sustainability, with 67% of GLA certified as LEED/BOMA Best and significant emissions reductions.

Financial highlights

• FFO per unit for 2025 was $1.069, up 3.6% year-over-year and at the high end of the revised outlook; Q4 FFO per unit diluted was $0.262, up 0.8% year-over-year.

• Same-asset NOI, cash basis, grew 2.2% for the year and 2.4% in Q4; total NOI, cash basis, up 4.7% for the year.

• NAV per unit at year-end 2025 was $14.43, up 2.6% year-over-year.

• Distribution per unit for 2025 was $0.77, with a 1.3% increase to $0.78 per unit effective March 2026.

• AFFO payout ratio for 2025 was 88%.

Outlook and guidance

• 2026 guidance: stable occupancy, 2–3% same-asset NOI growth, and FFO per unit diluted between $1.08 and $1.10; leverage targeted below 7.5x.

• Industrial same-asset NOI growth expected at 3–4% in 2026, with retail in the 2–3% range.

• Long-term framework targets 8–9% total return, 2–3% annual same-asset NOI growth, and 1% distribution yield.