Granite Real Estate Investment Trust (GRT-UN) Q2 2026 earnings summary

Executive summary

• Q2 2026 results were in line with guidance, with NOI rising to $135.4M, driven by leasing, rent adjustments, and acquisitions, and occupancy improving to 98.1% across 139 income-producing and 6 development properties in 6 countries, totaling 61.5M SF and $9.6B in value.

• FFO per unit was $1.56 (up 12.2% year-over-year), AFFO per unit was $1.26 (up $0.03 year-over-year), and normalized FFO/AFFO per unit were $1.58/$1.28, respectively.

• Portfolio focus remains on long-term total return, conservative capital structure, and active asset management, with 15 consecutive annual distribution increases and a ~$6.0B market cap as of July 31, 2026.

• Two non-recurring items impacted FFO/AFFO: a CAD 1.3M lease termination fee and a CAD 2.6M HST audit provision, netting a negative CAD 1.3M impact.

• Significant progress in sustainability, ranking 1st in GRESB 2025 for North American industrial REITs and releasing the 2025 Corporate Sustainability Report.

Financial highlights

• Same-property NOI grew 8.3% constant currency (9.1% including FX), with revenue for Q2 2026 at $165.1M, up from $149.3M in Q2 2025.

• G&A expenses rose to CAD 18.2M, mainly due to non-cash compensation and HST audit provision.

• Interest expense decreased due to term loan repayment and lower credit facility usage; weighted average cost of debt is 2.61%–2.62% with 2.9 years average maturity.

• Net leverage ratio improved to 31%–32% (from 35% at 2025 year-end), and debt to EBITDA improved to 6.6x.

• Liquidity stands at $1.15B–$1.2B, with $165M cash and nearly undrawn $997M credit facility.

Outlook and guidance

• 2026 FFO per unit guidance is $6.25–$6.40 (7–8% growth), AFFO per unit guidance is $5.40–$5.55 (4–6% growth).

• AFFO-related capital expenditures expected at $40M for 2026.

• Guidance assumes $66M in asset dispositions and $195M in acquisitions by early Q4, funded by disposition proceeds, credit facility, and cash.

• Four-quarter average constant currency same-property NOI growth outlook narrowed to 5.5%–6.5%.

• Active development pipeline includes a 391,000 SF build-to-suit in Houston, TX, with a 12-year lease and expected 7.5% stabilized yield.