Crombie Real Estate Investment Trust (CRR.UN) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered strong operating and financial performance, with committed occupancy reaching a record 97.1%, up 0.9% year-over-year, and economic occupancy at 96.5%.

• The portfolio is defensive and grocery-anchored, with 82% of annual minimum rent from necessity-based tenants, $5.9B in fair value, and 18.8M sq. ft. of GLA.

• Strategic partnerships in Halifax and Vancouver were established to unlock value, generate management and development fees, and enhance balance sheet flexibility.

• Property revenue increased to $122.7M from $118.6M in Q1 2024.

• Strategic alignment with Empire continues, with 90% of retail properties anchored by Empire and a 10.6-year weighted average lease term.

Financial highlights

• AFFO per unit grew 3.8% year-over-year to $0.27; FFO per unit remained flat at $0.30; adjusted FFO per unit (excluding transition costs) increased 3.3% to $0.31.

• Same-asset property cash NOI grew 3.2% year-over-year to $80.7 million.

• FFO and AFFO payout ratios were 73.9% and 84%, respectively.

• Available liquidity at quarter end was $695.8 million, with an unencumbered asset pool of $3.7 billion.

• Debt-to-gross fair value was 43.6%, and debt-to-trailing 12-month adjusted EBITDA was 7.95x.

Outlook and guidance

• Expectation of continued strong performance in necessity-based retail, with ongoing focus on disciplined capital allocation and partnership-driven growth.

• Major development, The Marlstone in Halifax, is progressing on schedule with completion expected in H1 2026.

• Non-major developments expected to generate 6-7% incremental yield on cost.

• G&A expenses, excluding unit-based compensation, anticipated to reflect the impact of backfilled roles for the full year.

• Development management fees from new partnerships expected to be higher than 2024, with a straight-lined revenue profile.