PRO Real Estate Investment Trust (PRV-UN) Q1 2026 earnings summary

Executive summary

• Delivered strong Q1 2026 results as a pure play industrial REIT, with NOI up 8.1%, Same Property NOI up 6.4%, and industrial Same Property NOI up 6.8%, despite owning 8 fewer properties year-over-year.

• FFO increased 10.6% and AFFO rose 8.0% year-over-year, with basic FFO per unit stable at CAD 0.13.

• Portfolio comprised 104 properties (6.4M sq ft GLA), with industrial assets now 90.7% of base rent, up from 81.8% last year.

• 76.9% of 2026 gross leasable area renewed at a positive average spread of 34.8%, with five renewals achieving 40-45% rent increases.

• Portfolio occupancy was 96% at quarter end, down from 97.7% a year earlier, mainly due to a single large vacancy in Quebec.

Financial highlights

• Property revenue was CAD 26.9M, up 4.5% year-over-year, driven by higher rents and renewals, despite owning 8 fewer properties.

• NOI reached CAD 16.1M, up 8.1% year-over-year; Same Property NOI was CAD 14.1M, up 6.4%.

• Net income and comprehensive income reached CAD 22.5M, up from CAD 15.0M in Q1 2025.

• AFFO payout ratio was 96.6% in Q1, compared to 93.8% last year, impacted by property sales and capital redeployment.

• NAV per unit was CAD 7.96 at March 31, 2026, up from CAD 7.90 a year earlier.

Outlook and guidance

• AFFO payout ratio expected to improve through 2026 as lease renewals take effect.

• Mark-to-market rent increases and new leases to drive incremental cash flow in Q3 and Q4.

• Same Property NOI growth anticipated to remain in mid to high single digits, with some negative impact from recent vacancy.

• Focus remains on expanding presence in the light industrial segment across secondary markets.

• Medium-term goals include reaching CAD 2 billion in assets and 45% Adjusted Debt to Gross Book Value within 3–5 years.