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

Executive summary

• Q4 and FY 2024 results exceeded expectations, driven by strong NOI growth, favorable FX, and positive net adjustments, with NOI rising to $121.2M in Q4 and net income attributable to unitholders at $83.7M.

• FFO per unit in Q4 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.

• AFFO per unit in Q4 was $1.25, up 3 cents from Q3 and 10 cents year-over-year; FY 2024 AFFO per unit was $4.86, up from $4.50 in 2023.

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

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

Financial highlights

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

• Q4 FFO per unit was $1.47; excluding one-time adjustments, FFO per unit was $1.41, still 4.5% above Q3.

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

• G&A expenses for Q4 were $8.3M, down $1.1M year-over-year and $4.9M sequentially, mainly due to favorable non-cash compensation variance.

• Weighted average cost of debt post-refinancing is 2.66% with a 4.3-year average maturity.

Outlook and guidance

• 2025 FFO per unit forecasted at $5.70–$5.85 (5–8% growth); AFFO per unit at $4.80–$4.95 (flat to 2% growth).

• 2025 AFFO-related CapEx expected at ~$40M, mainly for roofing, parking, and tenant allowances.

• 2025 same-property NOI growth expected in the 4.5–6% range, depending on leasing activity.

• Target long-term net leverage ratio of ~30–35% and net-debt-to-EBITDA of 6–7x.

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