Granite Real Estate Investment Trust (GRT-UN) Q4 2024 earnings summary

Executive summary

• Q4 and FY 2024 results exceeded prior periods and management expectations, driven by strong NOI growth, favorable FX, and net positive adjustments.

• Portfolio consists of 138 income-producing and 5 development properties, totaling 63.3M SF with 95% committed occupancy and $9.4B in property value.

• FFO per unit in Q4 2024 was $1.47, up 8.9% from Q3 and 15.7% year-over-year; FY 2024 FFO per unit was $5.44, up 9.5% from 2023.

• 14 consecutive annual distribution increases, with a 3.03% increase effective for 2025.

• Outperformed TSX and Capped REIT indices on a long-term basis.

Financial highlights

• Revenue for 2024 reached $569M, up from $521M in 2023; Adjusted EBITDA, FFO, and AFFO all showed consistent growth.

• Q4 AFFO per unit was $1.25; FY 2024 AFFO per unit was $4.86, up from $4.50 in 2023.

• LTM AFFO payout ratio at 68%; Q4 2024 AFFO payout ratio improved to 66% from 70% in Q4 2023.

• Net leverage ratio was 32% at year-end 2024, down from 33% in 2023.

• Total available liquidity of $1.1B, with $95M in cash and $997M in credit facility.

Outlook and guidance

• 2025 FFO per unit forecasted at $5.70–$5.85, a 5–8% increase over 2024; AFFO per unit forecasted at $4.80–$4.95, flat to 2% growth.

• 2025 constant currency same-property NOI growth expected in the 4.5–6% range.

• 2025 AFFO-related CapEx expected at $40M, up from $25.1M in 2024.

• No acquisitions or dispositions assumed in 2025 guidance; focus on leasing and development.

• Occupancy may dip in Q2 2025 before rising in the second half; year-end 2025 occupancy targeted at 95.5–96%.