Canadian Net REIT Announces 2025 Third-Quarter Results
REIT also announces monthly distributions for Q1 2026
MONTRÉAL, Nov. 18, 2025 (GLOBE NEWSWIRE) — Canadian Net Real Estate Investment Trust (“Canadian Net” or the “REIT”) (TSX-V: NET.UN) today reported its results for the quarter ended September 30th, 2025 (“Q3 2025”) and distributions for January, February and March 2026 (“Q1 2026”).
“We’re pleased with our continued momentum through the third quarter, marked by a 9% year-to-date increase in Normalized FFO per unit,” said Kevin Henley, President and CEO. “Canadian Net remains well-positioned in the current market, supported by our strong niche in necessity-based real estate, which has once again enabled us to maintain a 100% occupancy rate. Looking ahead, we remain committed to building on our portfolio strengths while actively evaluating potential accretive acquisition opportunities.”
RESULTS FOR Q3 2025
Canadian Net reported Funds from operations1 (“FFO”) of $3.4 million, or $0.164 per unit, an increase of 20% compared to $2.8 million, or $0.137 per unit, for the quarter ended September 30, 2024 (“Q3 2024”). Normalized FFO1 for the quarter, which adds back certain non-recurring items to better reflect operational performance, was $3.4 million, or $0.164 per unit, an increase of 12% compared to $3.0 million, or $0.147 per unit for Q3 2024.
Rental income was $6.9 million in Q3 2025, an increase of 11.5% from Q3 2024. Net Operating Income1 (“NOI”) in Q3 2025 was $5.0 million, an increase of 10.9% from Q3 2024, reflecting an increase in rental income due to property acquisitions. Rental income and NOI1 were also lower in Q3 2024 due to property dispositions.
The REIT generated a net income attributable to unitholders of $2.9 million in Q3 2025 compared to a net income of $13.0 million in Q3 2024.
RESULTS FOR THE 9-MONTH PERIOD ENDED SEPTEMBER 30, 2025
Canadian Net reported FFO1 of $10.2 million, or $0.494 per unit, an increase of 12% compared to $9.1 million, or $0.443 per unit for the 9-month period ended September 30, 2024. Normalized FFO1 for the period was $10.2 million, or $0.494 per unit, an increase of 9% compared to $9.3 million, or $0.453 per unit for Q3 2024.
Rental income was $20.7 million for the 9-month period ended September 30, 2025, an increase of 6.8% from the same period in 2024. NOI1 over the 9-month period ended September 30, 2025 was $15.1 million, an increase of 6.3% from the same period in 2024, reflecting mainly an increase in rental income due to property acquisitions.
The REIT generated a net income attributable to unitholders of $11.7 million for the 9-month period ended September 30, 2025 compared to a net income of $5.3 million for the same period last year.
The increase in Normalized FFO1 is derived from higher rental income from property acquisitions and lower interest charges on credit facilities, partially offset by interest on mortgages from property acquisitions. The increase in NOI1 was mainly attributable to the increase in rental income from property acquisitions. Finally, the variance in net income attributable to unitholders is primarily attributable to the change in the fair value of investment properties.
DISTRIBUTIONS
Canadian Net announced that it will make monthly cash distributions of $0.02917 per unit, representing $0.35 per unit on an annualized basis, on January 30th, February 27th and March 31st, 2026, to unitholders of record on January 15th, February 13th and March 13th, 2026, respectively.
The tables below represent other financial highlights and the reconciliations of certain non-IFRS measures for Q3 2025 and Q3 2024. This information should be read in conjunction with the Condensed Consolidated Interim Financial Statements and Management’s Discussion & Analysis (“MD&A”) for the quarters ended September 30th, 2025 and September 30th, 2024.
SUMMARY OF SELECTED FINANCIAL INFORMATION
| 9 months | |||||||
| Periods ended September 30 | 2025 | 2024 | Δ | % | |||
| Financial info | |||||||
| Property rental income | 20,651,186 | 19,337,096 | 1,314,090 | 7 | % | ||
| Net income and | |||||||
| comprehensive income | 11,690,874 | 5,315,339 | 6,375,535 | 120 | % | ||
| NOI (1) | 15,055,315 | 14,166,312 | 889,003 | 6 | % | ||
| FFO (1) | 10,168,070 | 9,102,645 | 1,065,425 | 12 | % | ||
| Normalized FFO (1) | 10,168,070 | 9,310,559 | 857,511 | 9 | % | ||
| AFFO (1) | 9,756,269 | 8,658,851 | 1,097,418 | 13 | % | ||
| EBITDA (1) | 17,087,314 | 10,670,478 | 6,416,836 | 60 | % | ||
| Adjusted EBITDA (1) | 14,743,962 | 13,739,618 | 1,004,344 | 7 | % | ||
| Investment properties | 291,142,734 | 267,378,220 | 23,764,514 | 9 | % | ||
| Adjusted investment properties (1) | 341,092,506 | 317,006,824 | 24,085,682 | 8 | % | ||
| Total assets | 316,821,303 | 293,510,295 | 23,311,008 | 8 | % | ||
| Mortgages | 144,430,085 | 126,895,706 | 17,534,379 | 14 | % | ||
| Current portion of mortgages | 12,706,069 | 16,136,371 | (3,430,302 | ) | (21 | %) | |
| Credit facilities | 12,840,000 | 11,170,000 | 1,670,000 | 15 | % | ||
| Total convertible debentures | 5,984,565 | 5,753,739 | 230,826 | 4 | % | ||
| Total equity | 135,986,974 | 129,426,184 | 6,560,790 | 5 | % | ||
| Weighted average units o/s – basic | 20,587,320 | 20,551,554 | 35,766 | – | |||
| Amounts on a per unit basis | |||||||
| FFO(1) | 0.494 | 0.443 | 0.051 | 12 | % | ||
| Normalized FFO (1) | 0.494 | 0.453 | 0.041 | 9 | % | ||
| AFFO(1) | 0.474 | 0.421 | 0.053 | 13 | % | ||
| Distributions | 0.259 | 0.259 | – | – | |||
| (1) This is a non-IFRS financial measure with no standardized IFRS meaning and may not be comparable to other issuers. Refer to the sections “Non-IFRS financial measures”. | |||||||
NON-IFRS FINANCIAL MEASURES
The Trust’s consolidated financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). In this press release, as a complement to results provided in accordance with IFRS, the Trust discloses and discusses certain non-IFRS financial measures: FFO, FFO per unit, Normalized FFO, Normalized FFO per unit, AFFO, AFFO per unit, NOI, and Adjusted Investment Properties. These non-IFRS measures are not defined by IFRS, do not have a standardized meaning, and may not be comparable with similar measures presented by other issuers. Canadian Net has presented such non-IFRS measures as management of the Trust believes they are relevant measures of Canadian Net’s underlying operating performance and debt management. Non-IFRS measures should not be considered as alternatives to net income, cash generated from (utilized in) operating activities, or comparable metrics determined in accordance with IFRS as indicators of the Trust’s performance, liquidity, cash flow, and profitability. Information appearing in this news release is a select summary of results. This news release should be read in conjunction with the Condensed Consolidated Interim Financial Statements and MD&A for the Trust. Please refer to the “Non IFRS Financial Measures” section in Canadian Net’s management’s discussion and analysis for the period ended September 30, 2025, available under Canadian Net’s profile on SEDAR+ at www.sedarplus.ca for a full description of these measures and, where applicable, a reconciliation to the most directly comparable measure calculated in accordance with IFRS. Such explanation is incorporated by reference herein.
In addition, below are the reconciling tables for the non-IFRS measures used in this press release.
Reconciliation of Investment Properties to Adjusted Investment Properties
| As at September 30 | 2025 | 2024 | Δ | |
| Investment Properties | ||||
| Developed properties | 291,142,734 | 267,378,220 | 9 | % |
| Joint Venture Ownership(1) | ||||
| Developed properties | 48,641,089 | 47,075,565 | 3 | % |
| Properties under development | 1,308,683 | 2,553,039 | (49 | %) |
| Adjusted Investment Properties(2) | 341,092,506 | 317,006,824 | 8 | % |
| (1) Represents Canadian Net’s proportionate share | ||||
| (2) This is a non-IFRS financial measure with no standardized IFRS meaning and may not be comparable to other issuers. Refer to the section “Non-IFRS financial measures” | ||||
Results of Operations
| 3 months | 9 months | |||||||||||||
| Periods ended September 30 | 2025 | 2024 | Δ | 2025 | 2024 | Δ | ||||||||
| Rental Income | 6,916,249 | 6,203,561 | 712,688 | 20,651,186 | 19,337,096 | 1,314,090 | ||||||||
| Operating expenses | (1,866,827 | ) | (1,650,928 | ) | (215,899 | ) | (5,595,871 | ) | (5,170,784 | ) | (425,087 | ) | ||
| Net Operating Income(1) | 5,049,422 | 4,552,633 | 496,789 | 15,055,315 | 14,166,312 | 889,003 | ||||||||
| Share of net income from | ||||||||||||||
| investments in joint ventures | 453,043 | 1,866,458 | (1,413,415 | ) | 788,403 | 1,577,879 | (789,476 | ) | ||||||
| Change in fair values | ||||||||||||||
| of investment properties | (308,554 | ) | 9,045,962 | (9,354,516 | ) | 2,869,132 | (3,413,037 | ) | 6,282,169 | |||||
| Unit-based compensation | (243,147 | ) | (312,572 | ) | 69,425 | (820,548 | ) | (715,537 | ) | (105,011 | ) | |||
| Administrative expenses | (257,339 | ) | (424,847 | ) | 167,508 | (798,620 | ) | (960,487 | ) | 161,867 | ||||
| Financial expenses | (1,834,618 | ) | (1,756,825 | ) | (77,793 | ) | (5,402,808 | ) | (5,339,791 | ) | (63,017 | ) | ||
| Net income | ||||||||||||||
| attributable to unitholders | 2,858,807 | 12,970,809 | (10,112,002 | ) | 11,690,874 | 5,315,339 | 6,375,535 | |||||||
| FFO(1) | 3,377,871 | 2,808,963 | 20% | 10,168,070 | 9,102,645 | 12% | ||||||||
| FFO per unit(1) | 0.164 | 0.137 | 20% | 0.494 | 0.443 | 12% | ||||||||
| Normalized FFO(1) | 3,377,871 | 3,016,877 | 12% | 10,168,070 | 9,310,559 | 9% | ||||||||
| Normalized FFO per unit(1) | 0.164 | 0.147 | 12% | 0.494 | 0.453 | 9% | ||||||||
| Weighted avg. units o/s | ||||||||||||||
| Basic | 20,597,637 | 20,561,060 | 36,577 | 20,587,320 | 20,551,554 | 35,766 | ||||||||
| (1) This is a non-IFRS financial measure that does not have any standardized IFRS meaning and as such may not be comparable to other issuers. Refer to section “Non-IFRS financial measures” | ||||||||||||||
Reconciliation of Net Income to Funds from Operations
| 3 months | 9 months | ||||||||||||
| Periods ended September 30 | 2025 | 2024 | Δ | 2025 | 2024 | Δ | |||||||
| Net income attributable | |||||||||||||
| to unitholders | 2,858,807 | 12,970,809 | (10,112,002 | ) | 11,690,874 | 5,315,339 | 6,375,535 | ||||||
| Δ in value of investment properties | 308,554 | (9,045,962 | ) | 9,354,516 | (2,869,132 | ) | 3,413,037 | (6,282,169 | ) | ||||
| Δ in value of investment | |||||||||||||
| properties in joint ventures | (32,637 | ) | (1,436,284 | ) | 1,403,647 | 526,196 | (325,597 | ) | 851,793 | ||||
| Unit-based compensation | 243,147 | 312,572 | (69,425 | ) | 820,548 | 715,537 | 105,011 | ||||||
| Δ fair value adjustments on derivative | |||||||||||||
| financial instruments | – | 6,454 | (6,454 | ) | (416 | ) | (18,300 | ) | 17,884 | ||||
| Income taxes | – | 1,374 | (1,374 | ) | – | 2,629 | (2,629 | ) | |||||
| FFO(1) | 3,377,871 | 2,808,963 | 20% | 10,168,070 | 9,102,645 | 12% | |||||||
| Sales tax expense(2) | – | 117,150 | (117,150 | ) | – | 117,150 | (117,150 | ) | |||||
| Mortgage early repayment fee | – | 90,764 | (90,764 | ) | – | 90,764 | (90,764 | ) | |||||
| Normalized FFO(1)(3) | 3,377,871 | 3,016,877 | 12% | 10,168,070 | 9,310,559 | 9% | |||||||
| FFO per unit(1) | 0.164 | 0.137 | 20% | 0.494 | 0.443 | 12% | |||||||
| Normalized FFO per unit(1) | 0.164 | 0.147 | 12% | 0.494 | 0.453 | 9% | |||||||
| Distributions | 1,802,544 | 1,773,437 | 29,107 | 5,352,607 | 5,317,702 | 34,905 | |||||||
| Distributions per unit | 0.086 | 0.086 | – | 0.259 | 0.259 | – | |||||||
| FFO per unit(1) – after distributions | 0.078 | 0.051 | 53% | 0.235 | 0.184 | 28% | |||||||
| Normalized FFO per unit(1) – after distributions | 0.078 | 0.061 | 28% | 0.235 | 0.194 | 21% | |||||||
| Distributions as a % of FFO(1) | 52% | 63% | (11%) | 52% | 58% | (6%) | |||||||
| Distributions as a % of Normalized FFO(1) | 52% | 59% | (7%) | 52% | 57% | (5%) | |||||||
| Weighted avg. units o/s | |||||||||||||
| Basic | 20,597,637 | 20,561,060 | 36,577 | 20,587,320 | 20,551,554 | 35,766 | |||||||
| (1) This is a non-IFRS financial measure with no standardized IFRS meaning and may not be comparable to other issuers. Refer to the section “Non-IFRS financial measures” (2) Sales tax expense related to input tax credits previously claimed on certain payments as well as related interest and penalties. Refer to Risks related to certain tax matters section. (3) Normalized FFO adds back one-time sales tax expense related to input tax credits previously claimed on certain payments as well as related interest and penalties and mortgage early repayment fees. Refer to sections “Non-IFRS financial measures” and “Risks related to certain tax matters section”. | |||||||||||||
Adjusted Funds from Operations
| 3 months | 9 months | ||||||||||||
| Periods ended September 30 | 2025 | 2024 | Δ | 2025 | 2024 | Δ | |||||||
| FFO (1) | 3,377,871 | 2,808,963 | 568,908 | 10,168,070 | 9,102,645 | 1,065,425 | |||||||
| Straight-line rent adjustment(2) | (40,653 | ) | 8,696 | (49,349 | ) | (124,845 | ) | (87,864 | ) | (36,981 | ) | ||
| Maintenance/cap-ex on | |||||||||||||
| existing properties | (110,277 | ) | (91,592 | ) | (18,685 | ) | (286,956 | ) | (355,930 | ) | 68,974 | ||
| AFFO(1) | 3,226,941 | 2,726,067 | 18 | % | 9,756,269 | 8,658,851 | 13% | ||||||
| AFFO per unit(1) | 0.157 | 0.133 | 18 | % | 0.474 | 0.421 | 13% | ||||||
| Distributions per unit | 0.086 | 0.086 | – | 0.259 | 0.259 | – | |||||||
| AFFO per unit(1) – after distributions | 0.071 | 0.047 | 51 | % | 0.215 | 0.162 | 33% | ||||||
| Distributions as a % of AFFO(1) | 55% | 65% | (10%) | 55% | 62% | (7%) | |||||||
| Weighted avg. units o/s | |||||||||||||
| Basic | 20,597,637 | 20,561,060 | 36,577 | 20,587,320 | 20,551,554 | 35,766 | |||||||
| (1) This is a non-IFRS financial measure with no standardized IFRS meaning and may not be comparable to other issuers. Refer to the section “Non-IFRS financial measures” | |||||||||||||
| (2) Adjusted for the proportionate share of equity-accounted investments | |||||||||||||
Reconciliation of Net Income to EBITDA
| 3 months | 9 months | |||||||||||||
| Periods ended September 30 | 2025 | 2024 | Δ | 2025 | 2024 | Δ | ||||||||
| Net income attributable | ||||||||||||||
| to unitholders | 2,858,807 | 12,970,809 | (10,112,002 | ) | 11,690,874 | 5,315,339 | 6,375,535 | |||||||
| Net interest expense | 1,832,177 | 1,748,390 | 83,787 | 5,396,440 | 5,352,510 | 43,930 | ||||||||
| Income taxes | – | 1,374 | (1,374 | ) | – | 2,629 | (2,629 | ) | ||||||
| EBITDA(1) | 4,690,984 | 14,720,573 | (10,029,589 | ) | 17,087,314 | 10,670,478 | 6,416,836 | |||||||
| Δ in value of investment properties | 308,554 | (9,045,962 | ) | 9,354,516 | (2,869,132 | ) | 3,413,037 | (6,282,169 | ) | |||||
| Δ in value of investment | ||||||||||||||
| properties in joint ventures | (32,637 | ) | (1,436,284 | ) | 1,403,647 | 526,196 | (325,597 | ) | 851,793 | |||||
| Δ in value of convertible debentures | – | 6,454 | (6,454 | ) | (416 | ) | (18,300 | ) | 17,884 | |||||
| Adjusted EBITDA(1) | 4,966,901 | 4,244,781 | 17% | 14,743,962 | 13,739,618 | 7% | ||||||||
| Interest expense | 1,900,199 | 1,834,160 | 66,039 | 5,634,008 | 5,659,707 | (25,699 | ) | |||||||
| Principal repayments | 1,277,812 | 1,222,083 | 55,729 | 3,741,891 | 3,506,413 | 235,478 | ||||||||
| Debt service requirements | 3,178,011 | 3,056,243 | 4% | 9,375,899 | 9,166,120 | 2% | ||||||||
| Interest coverage ratio based on adjusted EBITDA(1) | 2.6x | 2.3x | 0.3x | 2.6x | 2.4x | 0.2x | ||||||||
| Debt service coverage based on adjusted EBITDA(1) | 1.6x | 1.4x | 0.2x | 1.6x | 1.5x | 0.1x | ||||||||
| (1) This is a non-IFRS financial measure that does not have any standardized IFRS meaning and as such may not be comparable to other issuers. Refer to section “Non-IFRS financial measures” | ||||||||||||||
EARNINGS WEBCAST
Canadian Net will host a webcast on November 19th, at 9:00 a.m. (EST) to discuss the results.
The link to join the webcast is the following: https://edge.media-server.com/mmc/p/vdndm7mc
About Canadian Net – Canadian Net Real Estate Investment Trust is an open-ended trust that acquires and owns high-quality triple net and management-free commercial real estate properties.
Forward-Looking Statements – This press release contains forward-looking statements and information as defined by applicable securities laws. Canadian Net warns the reader that actual events may differ materially from current expectations due to known and unknown risks, uncertainties and other factors that could cause actual results to differ materially from the results anticipated in such statements. Among these include the risks related to economic conditions, the risks associated with the local real estate market, the dependence on the financial condition of tenants, the uncertainties related to real estate activities, the changes in interest rates, the availability of financing in the form of debt or equity, the effects related to the adoption of new IFRS standards, as well as other risks and factors described from time to time in the documents filed by Canadian Net with securities regulators, including the management report. Canadian Net does not update or modify its forward-looking statements even if future events occur or for any other reason unless required by law or any regulatory authority.
Neither the TSX Venture Exchange Inc. nor its Regulatory Services Provider (as that term is defined in the Policy of the TSX Venture Exchange and its Regulatory Services Provider) accepts any responsibility for the adequacy or accuracy of this release.
The September 30, 2025, financial statements and management discussion & analysis of Canadian Net may be viewed on SEDAR+ at www.sedarplus.ca.
For further information please contact Kevin Henley at (450) 536-5328.
1 Non-IFRS financial measure with no standardized IFRS meaning and may not be comparable to other issuers. Refer to the section “Non-IFRS financial measures”.
