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 97.1%, a 90 bps increase year-over-year, and economic occupancy at 96.5%.

• Property revenue increased to $122.7 million, up 3.5% from Q1 2024.

• Strategic partnerships in Halifax and Vancouver were established, enhancing development pipelines, generating management and development fees, and unlocking value.

• Portfolio optimization continued with the sale of non-core assets and investment in modernization projects.

• Defensive, grocery-anchored retail portfolio with $5.9 billion in fair value and 18.8 million sq. ft. of GLA, 90% 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 was flat at $0.30, with payout ratios of 73.9% and 84%, respectively.

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

• Property revenue reached $122.7 million, and net property income rose 4.8% to $77.2 million.

• Available liquidity at quarter end was $696 million, with an unencumbered asset pool of $3.7 billion.

• G&A expenses rose to 5.7% of property revenue due to backfilled roles and transition costs; excluding these, G&A was 3.8%.

Outlook and guidance

• Expect continued strong demand for necessity-based retail, with high occupancy and positive renewal spreads.

• Development management fees from new partnerships will be accretive to AFFO in 2025, with a steady fee stream.

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

• G&A as a percent of revenue expected to normalize around 4.3% for the remainder of the year.

• No set disposition target for 2025; focus remains on core, high-performing assets.