Granite Real Estate Investment Trust (GRT-UN) Q3 2025 earnings summary

Executive summary

• Q3 2025 results were ahead of Q2, with strong leasing momentum, NOI growth, and operational performance, supporting a 4.41% increase in annualized distribution to $3.55 per unit effective December 2025.

• Portfolio consists of 134 income-producing and 6 development properties, totaling 60.9M SF, with 97.1% committed occupancy and $9.1B in property value.

• Market capitalization is ~$4.8B and enterprise value is ~$7.8B as of October 31, 2025.

• Magna concentration reduced from 93% of GLA in 2012 to 20% in 2025.

• Achieved top ESG rankings in GRESB, ranking 1st in North American industrial peer group for the second year.

Financial highlights

• FFO per unit in Q3 was CAD 1.48, up CAD 0.09 (6.5%) from Q2 and CAD 0.13 (9.6%) year-over-year; AFFO per unit was CAD 1.26, up CAD 0.03 from Q2 and CAD 0.04 year-over-year.

• Same property NOI increased 5.2% on a constant currency basis and 8.4% including FX effects; Q3 NOI rose to $127.1 million from $119.6 million year-over-year.

• G&A expenses were CAD 14.1 million, up CAD 0.9 million year-over-year and CAD 4.1 million from Q2, mainly due to non-cash compensation adjustments.

• Net income attributable to unitholders was $68.0 million, down from $111.6 million, mainly due to unfavorable fair value adjustments.

• Investment properties totaled CAD 9.1 billion, excluding CAD 370.7 million of assets held for sale.

Outlook and guidance

• 2025 FFO per unit guidance raised to CAD 5.83–5.90 (7%–9% increase over 2024); AFFO per unit guidance raised to CAD 5.03–5.10 (4%–5% increase over 2024).

• Constant currency same property NOI guidance narrowed to 5.4%–6.2% for the year.

• Active development pipeline includes a 391,000 SF build-to-suit project in Houston, TX, expected to complete in Q4 2026 with a 7.5% stabilized yield.

• AFFO-related capital expenditures expected to be approximately CAD 40 million for 2025.

• Long-term net leverage ratio target of ~30–35% and net-debt-to-EBITDA of 6.5–7.5x.