Crombie Real Estate Investment Trust (CRR.UN) Q3 2025 earnings summary

Executive summary

• Coast-to-coast portfolio of 306 properties valued at $6.1B, focused on grocery-anchored, necessity-based retail assets, with 97.5% committed occupancy and 8.1 years weighted average lease term, supporting long-term stability.

• Strategic alignment with Empire, which anchors 90.2% of retail properties and generates 60.5% of annual minimum rent, driving recurring cash flow and value creation.

• Major and non-major development pipelines, including The Marlstone in Halifax, drive long-term value and flexibility.

• Record occupancy and robust leasing demand, with renewal leasing spreads up 10.6%-13.5% over expiring leases for the fourth consecutive quarter.

• Annual distributions increased to $0.90 per unit effective August 31, 2025.

Financial highlights

• Q3 2025 property revenue was $120.1M, up 4.9% year-over-year; management and development fee revenue rose to $4.4M from $1.1M.

• FFO per unit grew 6.5% to $0.33; AFFO per unit up 11.1% to $0.30; FFO for the quarter was $61.9M, AFFO was $55.0M.

• Net property income margin was 66.2%; net property income for the quarter was $79.5M, up 6.0% year-over-year.

• Operating income attributable to unitholders increased 16.0% to $30.8M.

• FFO payout ratio 67.3%, AFFO payout ratio 75.8%, both improved from prior year.

Outlook and guidance

• Same-asset property cash NOI grew 4.6% in Q3 and 3.5% year-to-date, exceeding the upper end of the 2%-3% annual average target range.

• Management expects to remain at the high end of the 2%-3% same-asset NOI growth range for 2026, supported by strong leasing and retail demand.

• Major development pipeline could add 10.7M sq. ft. and ~11,600 residential units, supporting future growth.

• ESG targets include 50% reduction in Scope 1 and 2 GHG emissions by 2030 and 90% by 2050 from 2019 base year.

• Completion of The Marlstone, a 291-unit residential project, expected in H1 2026.