Granite Real Estate Investment Trust (GRT-UN) Q4 2025 earnings summary

Executive summary

• Q4 and full-year 2025 results exceeded guidance, driven by strong leasing, NOI growth, disciplined capital allocation, and robust portfolio metrics.

• Portfolio comprised 141 income-producing and 6 development properties totaling 62.6M SF, with 98.6% committed occupancy as of December 31, 2025.

• Property value stood at $9.5B, with a market cap of ~$5.3B and enterprise value of ~$8.5B as of February 2026.

• Maintained investment grade rating (BBB high, stable outlook) and achieved 15 consecutive annual distribution increases.

• Two new trustees with finance and capital markets expertise were appointed; two trustees not standing for re-election.

Financial highlights

• Q4 2025 FFO was $96.6M ($1.59/unit), up 7.4% sequentially and 8.2% year-over-year; annual FFO was $363.0M ($5.91/unit), up 8.6% year-over-year.

• Q4 2025 AFFO was $79.3M ($1.30/unit), up 3.2% sequentially and 4% year-over-year; annual AFFO was $319.8M ($5.21/unit), up 7.2% year-over-year.

• Same-property NOI grew 7.9% in Q4 (constant currency), 10.8% including FX; full-year average growth was 5.6%.

• LTM AFFO payout ratio at 65–66% and net leverage ratio at 35%.

• Weighted average cost of debt was 2.68%; weighted average debt term to maturity was 3.5 years.

Outlook and guidance

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

• Same-property NOI growth expected at 5.5–6.5% for 2026.

• AFFO-related capex forecast at $40M for 2026; guidance assumes $81M in asset dispositions by early Q4 2026.

• Strategic focus on measured growth, diversification, and portfolio optimization.

• Target long-term net leverage ratio of ~30–35% and net-debt-to-EBITDA of 6.5–7.0x.