RFA Financial (RFA) Q2 2026 earnings summary

Executive summary

• Achieved strong execution on long-term strategy, including asset sales, lending growth, and disciplined capital allocation, with growth across all financial services product lines in Q2 2026.

• Closed sale of 13 properties for $93.8 million in Q2; 76 diversified properties remain as of June 30, with agreements for additional property sales totaling $110.5 million.

• Secured a 20-year lease with IG Wealth Management, boosting Winnipeg office occupancy from 79.6% to 95.1% and net rental income by 59.7%.

• Integration efforts advanced, supporting sustainable scale, capital flexibility, and strong governance.

• Strategic focus on converting asset monetization into scalable financial services growth and capital efficiency.

Financial highlights

• Net interest margin reported at 2.7% for Q2 2026; excluding non-cash purchase price adjustments, NIM was 2.1%.

• CET1 ratio for RFA Bank was 17.46% in Q2 2026.

• Actual credit losses at 0.08% of average mortgage and loan assets (annualized).

• Weighted average rental rate increased 3% on lease renewals in Q2.

• On-balance sheet mortgage originations totaled $234.7 million; off-balance sheet originations reached a record $1.8 billion.

Outlook and guidance

• Targeting $1.3–$1.5 billion in asset sales and lending portfolio growth to $8–$12 billion over 3–5 years.

• Aiming for return on equity in low to mid-teens and 40–50% compound annual net income growth for RFA Bank, with payout ratio below 65%.

• Management emphasizes early stage of realizing full platform potential, with ongoing integration and capital rotation into higher-returning opportunities.