PRO Real Estate Investment Trust (PRV-UN) Q2 2026 earnings summary

Executive summary

• Acquired 22 high-quality industrial properties year-to-date for CAD 170.8 million, expanding presence in Quebec City and Winnipeg, bringing the portfolio to 126 income-producing properties and 7.4 million sq ft of GLA.

• Completed CAD 107.3 million in equity financing, including a CAD 83.3 million bought deal and a CAD 24 million private placement with strategic partners.

• Revenue, NOI, and FFO all increased year-over-year, driven by contractual rent growth, strong renewal activity, and new acquisitions.

• Leasing momentum remained strong, with 83% of 2026 lease maturities renewed at positive average spreads of 36.8%.

• Portfolio occupancy was 95% at quarter end, impacted by two significant vacancies; excluding these, occupancy would have been 97.4%.

Financial highlights

• Property revenue was CAD 27 million, up 7.7% year-over-year, mainly from higher rents and new properties.

• NOI reached CAD 16.5 million, a 6.5% increase year-over-year; same property NOI rose 3.3%.

• FFO totaled CAD 8.5 million, up 6.1% year-over-year; basic FFO per unit was CAD 0.12, down from CAD 0.13 due to higher unit count.

• Net cash flows from operating activities were CAD 10.6 million, up 54.3% year-over-year.

• Net income for Q2 2026 was CAD 2.0 million, down from CAD 5.2 million in Q2 2025, mainly due to fair value adjustments.

Outlook and guidance

• Expect incremental financial performance in Q3 and Q4 as new leases and acquisitions contribute, with mid to high single-digit same property growth anticipated in Q4.

• Mark-to-market rent spreads for 2027 lease rollovers projected at 25%-30%, maintaining healthy growth.

• Focus remains on disciplined growth, balance sheet strength, and financial flexibility.

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

• Continued demand for small and mid-bay industrial properties expected to support portfolio fundamentals.