Ravelin Properties (RPR.UN) Q2 2025 earnings summary

Executive summary

• Internalized asset management and Chicago property management in 2025, achieving $4.1M in G&A savings in H1 2025 and targeting $10M annualized savings.

• Recapitalization supported by G2S2's purchase of nearly $600M in secured debt, with additional funding discussions ongoing.

• Occupancy at 75.8% as of June 30, 2025, with management targeting a return to pre-COVID levels (83.6% in 2019) over 24–36 months.

• Leasing momentum continues, with 189K SF of signed leases for vacant spaces and $6.4M in future annualized gross rent.

• Disposed of a fully occupied Ontario property for $16.5M, using proceeds to reduce Canadian revolving credit facility borrowings.

Financial highlights

• NOI margin deterioration over the past decade addressed by new internal controls; OpEx/SF at $5.97 and NOI margin at 43% in Q2 2025.

• Q2 2025 rental revenue was $45.2M, down 8.9% year-over-year; NOI fell 17.6% to $20.4M.

• Net loss for Q2 2025 was $10.4M, a significant improvement from a $150M loss in Q2 2024.

• Cash NOI for 2024 at $95M, with potential to recover to prior peak of $121M for the current portfolio.

• Liquidity at June 30, 2025 was $28.8M, up from $24.3M at December 31, 2024.

Outlook and guidance

• Management expects occupancy to return to pre-COVID levels within 24–36 months, driven by improved tenant service and execution.

• Leasing pipeline exceeds 450,000 SF of renewals and new leases, with 139,533 SF of rent reviews underway in Ireland.

• Leasing momentum in H1 2025 expected to impact future periods, with significant rent commencements in 2025 and 2026.

• Anticipates continued cost savings and operational efficiencies from internalization initiatives.

• Data centre and Atlantic Canada assets positioned for growth, with focus on energy efficiency and transatlantic connectivity.