Granite Real Estate Investment Trust (GRT-UN) Q1 2026 earnings summary

Executive summary

• Q1 2026 results were in line with annual forecast, driven by strong NOI growth, robust leasing spreads, and high occupancy, partially offset by unfavorable FX movements.

• FFO per unit was CAD 1.57, up 7.5% year-over-year, and AFFO per unit was CAD 1.41, flat year-over-year but up sequentially due to lower capital expenditures.

• Portfolio consists of 139 income-producing and 6 development properties across 6 countries, totaling 61.5M SF with 98.3% committed occupancy and $9.5B in property value.

• Focus on long-term total return, conservative capital structure, and active asset management with institutional quality assets.

• ESG leadership recognized by top GRESB rankings and significant green bond allocations.

Financial highlights

• Same property NOI grew 8.3% on a constant currency basis and 8% including FX impact.

• FFO per unit increased CAD 0.11 year-over-year; Q4 2025 included a non-recurring tax reversal, normalizing sequential FFO growth.

• AFFO-related capital expenditures were CAD 6.9 million, down CAD 8 million sequentially.

• Interest expense decreased by CAD 0.2 million sequentially; weighted average cost of debt is 2.63% with 3.2 years average maturity.

• Net leverage ratio improved to 33% from 35% in Q4; debt to EBITDA improved to 6.8x from 7.3x.

Outlook and guidance

• Guidance for 2026 remains unchanged: FFO per unit expected at CAD 6.25–6.40 (6–8% growth), AFFO-related capex at CAD 40 million.

• Same property NOI growth forecasted at 5.5–6.5% for the year.

• Interest expense expected to remain stable at around CAD 23.5 million per quarter.

• Asset dispositions totaling CAD 57.7 million expected to close by early Q4; no unidentified acquisitions assumed in guidance.

• Continued focus on portfolio diversification, ESG initiatives, and measured growth through development and acquisitions.