SmartCentres Real Estate Investment Trust (SRU.UN) Q2 2026 earnings summary

Executive summary

• Q2 2026 delivered strong operational performance with 98.1% occupancy, robust leasing momentum, and 247,000–247,478 sq. ft. leased, supported by high tenant demand and 12% rent growth excluding anchors.

• Advanced retail and mixed-use development pipeline, including new site acquisitions, ongoing construction of major anchor-driven projects, and expansion of self-storage operations with new facilities opening and more in approval.

• Toronto and Montreal premium outlets remain nearly fully leased, with Toronto Premium Outlets ranked top three in national sales and a major expansion set for Q4 2026.

• Four of six ex-Toys "R" Us locations re-leased at higher rents, with the remaining two expected to commence rent in 2027.

• Major anchor-driven projects include a 200,000 sq. ft. Canadian Tire flagship store under construction and a new Walmart-anchored site in Winnipeg.

Financial highlights

• FFO per unit was CAD 0.58 (diluted), unchanged year-over-year; AFFO per unit (diluted) was CAD 0.54, down from CAD 0.55 in Q2 2025.

• Net operating income for Q2 2026 was $139.9 million, down 1.0% year-over-year due to fewer townhome closings, partially offset by higher rental income.

• Net loss and comprehensive loss for Q2 2026 was $147.0 million, mainly due to a $196.2 million fair value loss on investment properties and a $42.4 million loss on financial instruments.

• Distributions maintained at an annualized rate of CAD 1.85 per unit; payout ratio to AFFO was 86.7% for Q2 2026 and 90.5% for the rolling 12 months.

• Liquidity at June 30, 2026 was approximately CAD 715 million (CAD 965 million including accordion features); cash on hand was $42.0 million.

Outlook and guidance

• Management expects continued growth driven by a robust development pipeline, strong tenant demand, and ongoing expansion in retail and mixed-use developments, with a focus on necessity-based and anchor-driven centres.

• Targeting a cadence of three shopping center deliveries or projects under construction annually by 2027.

• Forward-looking statements are subject to risks including market conditions, financing, and development approvals.