Crombie REIT Announces Second Quarter 2025 Results and Distribution Increase
Crombie REIT (TSX:CRR.UN) reported strong Q2 2025 results, highlighting operational excellence and financial growth. The company achieved record committed occupancy of 97.2% and grew property revenue by 6.4% to $123.8 million. Key financial metrics showed improvement with FFO per unit increasing 6.3% to $0.34 and AFFO per unit rising 7.1% to $0.30.
Notable achievements include a credit rating upgrade to BBB stable from Morningstar DBRS and an increase in annual distribution to $0.90 per unit. The REIT completed strategic transactions including the acquisition of four grocery-anchored properties for $21.2 million and the disposition of The Marlstone development to a joint venture for $66.9 million, retaining 50% ownership.
Same-asset property cash NOI grew 2.8% year-over-year, while lease renewals showed strong performance with a 10.8% increase over expiring rental rates. The company maintains a solid financial position with available liquidity of $677.7 million and a debt to gross fair value of 42.0%.
Crombie REIT (TSX:CRR.UN) ha riportato risultati solidi per il secondo trimestre 2025, evidenziando eccellenza operativa e crescita finanziaria. La società ha raggiunto un tasso di occupazione impegnato record del 97,2% e ha aumentato i ricavi immobiliari del 6,4% a 123,8 milioni di dollari. I principali indicatori finanziari sono migliorati, con l'FFO per unità in aumento del 6,3% a 0,34 dollari e l'AFFO per unità cresciuto del 7,1% a 0,30 dollari.
Tra i risultati più rilevanti figurano un upgrade del rating creditizio a BBB stabile da Morningstar DBRS e l'incremento della distribuzione annuale a 0,90 dollari per unità. Il REIT ha completato operazioni strategiche, inclusa l'acquisizione di quattro proprietà ancorate a supermercati per 21,2 milioni di dollari e la cessione dello sviluppo The Marlstone a una joint venture per 66,9 milioni di dollari, mantenendo una partecipazione del 50%.
Il NOI in contanti delle proprietà esistenti è cresciuto del 2,8% su base annua, mentre i rinnovi dei contratti di locazione hanno mostrato una forte performance con un aumento del 10,8% rispetto ai canoni in scadenza. La società mantiene una solida posizione finanziaria con una liquidità disponibile di 677,7 milioni di dollari e un rapporto debito su valore lordo equo del 42,0%.
Crombie REIT (TSX:CRR.UN) reportó sólidos resultados en el segundo trimestre de 2025, destacando la excelencia operativa y el crecimiento financiero. La compañía alcanzó una ocupación comprometida récord del 97,2% y aumentó los ingresos por propiedades en un 6,4% hasta 123,8 millones de dólares. Los principales indicadores financieros mejoraron, con un aumento del 6,3% en el FFO por unidad a 0,34 dólares y un incremento del 7,1% en el AFFO por unidad a 0,30 dólares.
Logros notables incluyen una mejora en la calificación crediticia a BBB estable por parte de Morningstar DBRS y un aumento en la distribución anual a 0,90 dólares por unidad. El REIT completó transacciones estratégicas, incluyendo la adquisición de cuatro propiedades ancladas en supermercados por 21,2 millones de dólares y la venta del desarrollo The Marlstone a una empresa conjunta por 66,9 millones de dólares, reteniendo el 50% de la propiedad.
El NOI en efectivo de propiedades similares creció un 2,8% interanual, mientras que las renovaciones de arrendamientos mostraron un sólido desempeño con un aumento del 10,8% sobre las tarifas de alquiler expiradas. La compañía mantiene una posición financiera sólida con una liquidez disponible de 677,7 millones de dólares y una deuda respecto al valor bruto justo del 42,0%.
Crombie REIT (TSX:CRR.UN)는 2025년 2분기 강력한 실적을 발표하며 운영 우수성과 재무 성장을 강조했습니다. 회사는 최고 기록인 97.2%의 임대 약정 점유율을 달성했으며, 부동산 수익은 6.4% 증가한 1억 2,380만 달러를 기록했습니다. 주요 재무 지표도 개선되어 FFO(펀드 운용 수익) 단위당 6.3% 증가한 0.34달러, AFFO(조정된 FFO) 단위당 7.1% 증가한 0.30달러를 기록했습니다.
주목할 만한 성과로는 Morningstar DBRS로부터 BBB 안정적 신용 등급 상향과 연간 배당금 단위당 0.90달러 인상이 포함됩니다. REIT는 전략적 거래를 완료했으며, 슈퍼마켓이 입점한 4개 부동산을 2,120만 달러에 인수하고, The Marlstone 개발 부지를 합작 투자에 6,690만 달러에 매각했으며 50% 소유권을 유지했습니다.
동일 자산 부동산의 현금 NOI는 전년 대비 2.8% 성장했으며, 임대 갱신은 만료 임대료 대비 10.8% 증가하는 강력한 실적을 보였습니다. 회사는 6억 7,770만 달러의 가용 유동성과 42.0%의 총 공정 가치 대비 부채 비율로 견고한 재무 상태를 유지하고 있습니다.
Crombie REIT (TSX:CRR.UN) a annoncé de solides résultats pour le deuxième trimestre 2025, mettant en avant l'excellence opérationnelle et la croissance financière. La société a atteint un taux d'occupation engagé record de 97,2% et a vu ses revenus immobiliers augmenter de 6,4% pour atteindre 123,8 millions de dollars. Les principaux indicateurs financiers se sont améliorés, avec un FFO par part en hausse de 6,3% à 0,34 dollar et un AFFO par part en hausse de 7,1% à 0,30 dollar.
Parmi les réalisations notables figurent une amélioration de la notation de crédit à BBB stable par Morningstar DBRS et une augmentation de la distribution annuelle à 0,90 dollar par part. Le REIT a finalisé des transactions stratégiques, notamment l'acquisition de quatre propriétés ancrées par des épiceries pour 21,2 millions de dollars et la cession du développement The Marlstone à une coentreprise pour 66,9 millions de dollars, tout en conservant 50% de propriété.
Le NOI en espèces des actifs comparables a augmenté de 2,8% en glissement annuel, tandis que les renouvellements de baux ont affiché une forte performance avec une hausse de 10,8% par rapport aux loyers expirants. La société maintient une solide position financière avec une liquidité disponible de 677,7 millions de dollars et un ratio d'endettement par rapport à la juste valeur brute de 42,0%.
Crombie REIT (TSX:CRR.UN) meldete starke Ergebnisse für das zweite Quartal 2025 und hob operative Exzellenz sowie finanzielles Wachstum hervor. Das Unternehmen erreichte eine rekordverdächtige verpflichtete Auslastung von 97,2% und steigerte die Mieteinnahmen um 6,4% auf 123,8 Millionen US-Dollar. Wichtige Finanzkennzahlen verbesserten sich, wobei das FFO je Einheit um 6,3% auf 0,34 US-Dollar und das AFFO je Einheit um 7,1% auf 0,30 US-Dollar stiegen.
Bemerkenswerte Erfolge umfassen ein Rating-Upgrade auf BBB stabil von Morningstar DBRS sowie eine Erhöhung der jährlichen Ausschüttung auf 0,90 US-Dollar je Einheit. Der REIT schloss strategische Transaktionen ab, darunter den Erwerb von vier lebensmittelzentrierten Immobilien für 21,2 Millionen US-Dollar sowie den Verkauf der Entwicklung The Marlstone an ein Joint Venture für 66,9 Millionen US-Dollar, wobei 50% der Eigentumsanteile behalten wurden.
Das Cash-NOI der gleichbleibenden Immobilien wuchs um 2,8% im Jahresvergleich, während Mietvertragsverlängerungen mit einem 10,8%igen Anstieg gegenüber den auslaufenden Mietraten eine starke Performance zeigten. Das Unternehmen hält eine solide finanzielle Position mit einer verfügbaren Liquidität von 677,7 Millionen US-Dollar und einer Verschuldung im Verhältnis zum Bruttogerechtigkeitswert von 42,0%.
- Record committed occupancy of 97.2%, increasing 80 basis points year-over-year
- Property revenue growth of 6.4% to $123.8 million
- FFO per unit increased 6.3% to $0.34
- Credit rating upgrade to BBB stable from BBB(low)
- Distribution increase of $0.01 per Unit to $0.90 annually
- Strong renewal performance with 10.8% rent increases
- Same-asset property cash NOI growth of 2.8%
- Debt to trailing 12 months adjusted EBITDA increased to 7.84x from 7.68x
- Available liquidity decreased 4.1% to $677.7 million
- Debt to gross book value increased to 45.8% from 45.1% year-over-year
Operational excellence and disciplined capital management results in strong FFO growth, credit rating upgrade, and distribution increase
New Glasgow, Nova Scotia--(Newsfile Corp. - August 6, 2025) - Crombie Real Estate Investment Trust (TSX: CRR.UN) ("Crombie") today announced results for its second quarter ended June 30, 2025. Management will host a conference call to discuss the results at 10:00 a.m. (EDT), August 7, 2025.
"Crombie's second quarter results reflect the strength of our necessity-based portfolio and the disciplined execution of our team," said Mark Holly, President and CEO. "We achieved record committed occupancy for the third consecutive quarter, grew property revenue by
SECOND QUARTER SUMMARY
(In thousands of Canadian dollars, except per Unit amounts and square feet and as otherwise noted)
Information in this press release is a select summary of results. This press release should be read in conjunction with Crombie's Management's Discussion and Analysis for the quarter ended June 30, 2025 and Consolidated Financial Statements and Notes for the quarters ended June 30, 2025, and June 30, 2024. Full details on our results can be found at www.crombie.ca and www.sedarplus.ca.
Operational Highlights
- Committed occupancy of
97.2% and economic occupancy of96.4% ; an 80 basis point increase and a 50 basis point increase, respectively, compared to the second quarter of 2024 - Renewals of 270,000 square feet at rents
10.8% above expiring rental rates- An increase of
11.9% for the three months ended June 30, 2025 using the weighted average rent during the renewal term
- An increase of
- Acquisition of four grocery-anchored retail properties, in Rest of Canada, totalling 146,000 square feet for a total purchase price of
$21,205 - Acquisition of a parcel of land for development in Major Markets through a land swap with the City of Halifax in Nova Scotia for an existing parcel of development land, both valued at
$11,500 - Disposition of one 140,000 square-foot office property, in Rest of Canada, for gross proceeds of
$8,500 - Disposition of
100% interest in The Marlstone development to a joint venture partnership for gross proceeds of$66,850 , which includes the full assumption of the outstanding construction facility; Crombie's ownership interest in the joint venture is50% - Invested
$6,925 in modernizations during the quarter
Financial Highlights
- Morningstar DBRS credit rating upgrade to BBB stable trend, previously BBB(low) positive trend
| Three months ended June 30, | ||||||||||||
| 2025 | 2024 | Variance | % | |||||||||
| Property revenue | $ | 123,774 | $ | 116,361 | $ | 7,413 | 6.4 % | |||||
| Revenue from management and development services | $ | 3,308 | $ | 2,106 | $ | 1,202 | 57.1 % | |||||
| Operating income attributable to Unitholders | $ | 36,435 | $ | 29,347 | $ | 7,088 | 24.2 % | |||||
| Funds from operations ("FFO") (1) per Unit - basic and diluted | $ | 0.34 | $ | 0.32 | $ | 0.02 | 6.3 % | |||||
| Adjusted funds from operations ("AFFO") (1) per Unit - basic and diluted | $ | 0.30 | $ | 0.28 | $ | 0.02 | 7.1 % | |||||
| Same-asset property cash net operating income ("NOI") (1) | $ | 81,481 | $ | 79,228 | $ | 2,253 | 2.8 % | |||||
| Available Liquidity | $ | 677,655 | $ | 706,717 | $ | (29,062 | ) | (4.1)% | ||||
| Debt to gross fair value (1) (2) | 42.0 % | 42.6 % | (0.6)% | |||||||||
| Debt to trailing 12 months adjusted EBITDA (1) (2) | 7.84x | 7.68x | 0.16x | 2.1 % | ||||||||
(1) Non-GAAP financial measures used by management to evaluate Crombie's business performance. See "Cautionary Statements and Non-GAAP Measures" below for a reconciliation of FFO, AFFO, same-asset property cash NOI, debt to gross fair value, and debt to trailing 12 months adjusted EBITDA.
(2) At Crombie's proportionate share including joint ventures.
Subsequent Event Highlights
- Subsequent to June 30, 2025, published annual Environmental, Social & Governance ("ESG") Report highlighting priorities, initiatives, and accomplishments
- Subsequent to June 30, 2025, increased distributions to
$0.90 per Unit per year effective for Unitholders of record on August 31, 2025
Operational Metrics
| June 30, 2025 | June 30, 2024 | |||||
| Number of investment properties (1) | 297 | 295 | ||||
| Gross leasable area (2) | 18,199,000 | 18,750,000 | ||||
| Economic occupancy (3) | 96.4 % | 95.9 % | ||||
| Committed occupancy (4) | 97.2 % | 96.4 % | ||||
| Total properties inclusive of joint ventures (5) | 306 | 304 | ||||
| Gross leasable area inclusive of joint ventures | 18,816,000 | 19,280,000 |
(1) This includes properties owned at full and partial interests, excluding joint ventures.
(2) Gross leasable area is adjusted to reflect Crombie's proportionate interest in partially owned properties, excluding joint ventures and a wholly-owned residential asset.
(3) Represents space currently under lease contract and rent has commenced.
(4) Represents current economic occupancy plus completed lease contracts for future occupancy of currently vacant space.
(5) Inclusive of properties under development.
Committed occupancy of
New commercial leases increased occupancy by 64,000 square feet at June 30, 2025, at an average first-year rate of
Renewal activity for the second quarter of 2025 consisted of 270,000 square feet with an increase of
When comparing the expiring rental rates to the weighted average rental rate for the renewal term, Crombie achieved an increase of
Financial Metrics
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||||||||
| 2025 | 2024 | Variance | % | 2025 | 2024 | Variance | % | ||||||||||||||||||
| Net property income (1) | $ | 81,321 | $ | 74,888 | $ | 6,433 | 8.6 % | $ | 158,487 | $ | 148,529 | $ | 9,958 | 6.7 % | |||||||||||
| Operating income attributable to Unitholders | $ | 36,435 | $ | 29,347 | $ | 7,088 | 24.2 % | $ | 60,427 | $ | 55,552 | $ | 4,875 | 8.8 % | |||||||||||
| Same-asset property cash NOI (1) | $ | 81,481 | $ | 79,228 | $ | 2,253 | 2.8 % | $ | 162,214 | $ | 157,472 | $ | 4,742 | 3.0 % | |||||||||||
| FFO (1) | $ | 62,010 | $ | 57,880 | $ | 4,130 | 7.1 % | $ | 117,567 | $ | 112,748 | $ | 4,819 | 4.3 % | |||||||||||
| Per Unit - Basic and diluted | $ | 0.02 | 6.3 % | $ | 0.64 | $ | 0.62 | $ | 0.02 | 3.2 % | |||||||||||||||
| Payout ratio (1) | 66.5 % | 70.1 % | (3.6)% | 70.0 % | 71.8 % | (1.8)% | |||||||||||||||||||
| AFFO (1) | $ | 54,847 | $ | 50,317 | $ | 4,530 | 9.0 % | $ | 103,737 | $ | 97,264 | $ | 6,473 | 6.7 % | |||||||||||
| Per Unit - Basic and diluted | $ | 0.30 | $ | 0.28 | $ | 0.02 | 7.1 % | $ | 0.56 $ | $ | 0.53 | $ | 0.03 | 5.7 % | |||||||||||
| Payout ratio (1) | 75.1 % | 80.6 % | (5.5)% | 79.3 % | 83.2 % | (3.9)% | |||||||||||||||||||
(1) Net property income, same-asset property cash NOI, FFO, FFO payout ratio, AFFO, and AFFO payout ratio are non-GAAP financial measures used by management to evaluate Crombie's business performance. See "Cautionary Statements and Non-GAAP Measures" below for a reconciliation of net property income, same-asset property cash NOI, FFO, FFO payout ratio, AFFO, and AFFO payout ratio.
Second Quarter and Year-to-Date 2025 Results
Operating income attributable to Unitholders
The increase in operating income in the second quarter of 2025 was primarily due net property income from the acquisition of the remaining
In addition to the items discussed above for the quarter, the year-to-date increase was further driven by increased supplemental rent from modernization investments and impairment of investment properties in 2024, offset by increased tenant incentive amortization from modernizations and decreased property revenue from dispositions.
Same-asset property cash NOI
The increase in same-asset property cash NOI for the quarter was primarily due to renewals, contractual rent step-ups, and new leasing.
The year-to-date increase was driven by the items discussed above for the quarter as well as increased supplemental rent from modernization investments.
FFO
The increase in FFO in the quarter was primarily due to net property income from the 2024 Davie Street residential acquisition, property revenue growth as discussed above, and increased revenue from management and development services. This was offset in part by higher interest expense from the net issuance of senior unsecured notes, and an increase in general and administrative expenses due to increased Unit-based compensation costs primarily driven by higher Unit price.
In addition to the items discussed above for the quarter, the year-to-date increase was further driven by increased supplemental rent from modernization investments, offset in part by decreased property revenue from dispositions.
AFFO
The increase in AFFO was primarily due to the same factors impacting FFO for both the quarter and year to date.
Financial Condition Metrics
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |||||||
| Fair value of unencumbered investment properties | $ | 3,863,000 | $ | 3,662,000 | $ | 2,687,000 | |||
| Available liquidity (1) | $ | 677,655 | $ | 682,218 | $ | 706,717 | |||
| Debt to gross book value - cost basis (2) | 45.8 % | 45.7 % | 45.1 % | ||||||
| Debt to gross fair value (3) (4) | 42.0 % | 43.6 % | 42.6 % | ||||||
| Weighted average interest rate | 4.1 % | 4.1 % | 4.2 % | ||||||
| Debt to trailing 12 months adjusted EBITDA (3) (4) | 7.84x | 7.96x | 7.68x | ||||||
| Interest coverage ratio (3) (4) | 3.45x | 3.31x | 3.47x |
(1) Represents the undrawn portion on the credit facilities, excluding joint facilities with joint operation partners.
(2) See Capital Management note in the Financial Statements.
(3) Non-GAAP financial measures used by management to evaluate Crombie's business performance. See "Cautionary Statements and Non-GAAP Measures" below for a reconciliation of debt to gross fair value, debt to trailing 12 months adjusted EBITDA, and interest coverage ratio.
(4) See Debt Metrics section in the Management's Discussion and Analysis.
Portfolio Optimization
Our development program is divided into major development projects with a total estimated cost greater than
Major Development
Crombie currently has one active major development, The Marlstone, a 291-unit residential rental project in Halifax, Nova Scotia, under construction. Demolition and existing building upgrades have occurred and construction continues to progress well. Completion is expected in the first half of 2026. In the second quarter of 2025, Crombie sold The Marlstone to a newly formed joint venture partnership, resulting in a change of ownership percentage from
Non-major Development
Non-major developments are shorter in duration and thus carry less overall risk as compared to Crombie's major development pipeline. These projects have the ability to create value while enhancing the overall quality of the portfolio.
In the second quarter of 2025, Crombie invested
The below table summarizes active non-major developments within Crombie's portfolio at June 30, 2025.
| At Crombie's Share | ||||||||||||
| Type | Project Count | Estimated GLA on Completion | Estimated Total Cost | Estimated Cost to Complete (2) | ||||||||
| Land-use intensification, redevelopments and other | 3 | 60,000 | $ | 32,494 | $ | 12,024 | ||||||
| Modernizations (1) | 12 | - | 9,086 | - | ||||||||
| Total non-major developments | 15 | 60,000 | $ | 41,580 | $ | 12,024 | ||||||
(1) Modernizations are capital investments to modernize/renovate Crombie-owned grocery-anchored properties in exchange for a defined return and potential extended lease term. The spend on completed modernizations for the three and six months ended June 30, 2025 was
(2) Estimated cost to complete reflects approved projects currently in progress. It does not include potential future projects for which approvals have not yet been obtained.
Highlighted Subsequent Events
ESG Report
Subsequent to June 30, 2025, Crombie announced the release of its 2024 Environmental, Social & Governance Report, which provides a comprehensive overview of the REIT's environmental, social, and governance priorities, progress, and initiatives over the past year.
Key Highlights:
- Adopted the Sustainability Accounting Standards Board ("SASB") standards for the real estate sector, enhancing the clarity and comparability of its reporting
- Completed a double materiality assessment to guide ESG priorities and prepared for evolving disclosure standards
- Reduced operational greenhouse gas ("GHG") emissions (1) by
33% from our 2019 baseline - Completed a pathway-to-net-zero feasibility study for the Scotia Square complex
- Joined the Building Decarbonization Alliance
- Earned first-time recognition as one of Canada's Greenest Employers
- Launched mandatory Indigenous Awareness training to foster a more inclusive workplace
- Achieved an
86% participation rate in the employee engagement survey and a Net Promoter Score of 19.2 - Supported more than 4,000 hours of volunteering with various groups and donated
$122 in support of Community Impact Strategy - Enhanced Trustee onboarding to support governance continuity
- Intensified cybersecurity measures to protect against evolving threats
(1) Crombie has restated its 2019 baseline total GHG emissions to 357,000 tonnes of CO2e, previously 358,000 tonnes of CO2e. The restatement reflects changes to Crombie's portfolio composition through acquisition and disposition activity, as well as greater data availability.
The full report is available in the ESG section of Crombie's website at www.crombie.ca/esg.
Distributions
Subsequent to June 30, 2025, Crombie announced an increase of distributions to 90.000 cents per Unit from the previous rate of 89.004 cents per Unit per year (an increase of
Conference Call and Webcast
Crombie will provide additional details regarding its second quarter ended June 30, 2025 results on a conference call to be held Thursday, August 7, 2025, beginning at 10:00 a.m. (EDT). Accompanying the conference call will be a presentation that will be available on the Investors section of Crombie's website. To join this conference call, you may dial (416) 945-7677 or (888) 699-1199. To join the conference call without operator assistance, you may register and enter your phone number at https://emportal.ink/441GWHx to receive an instant automated call back. You may also listen to a live audio webcast of the conference call by visiting the Investors section of Crombie's website at www.crombie.ca.
Replay will be available until midnight August 14, 2025 by dialing (289) 819-1450 or (888) 660-6345 and entering passcode 56704 #, or on the Crombie website for 90 days following the conference call.
Non-GAAP Measures and Cautionary Statements
Net property income, same-asset property cash NOI, FFO, AFFO, FFO payout ratio, AFFO payout ratio, debt to trailing 12 months adjusted EBITDA, debt to gross fair value, and interest coverage ratio are non-GAAP financial measures that do not have a standardized meaning under International Financial Reporting Standards ("IFRS"). These measures as computed by Crombie may differ from similar computations as reported by other entities and, accordingly, may not be comparable to other such entities. Management includes these measures as they represent key performance indicators to management, and it believes certain investors use these measures as a means of assessing Crombie's financial performance. For additional information on these non-GAAP measures see our Management's Discussion and Analysis for the three and six months ended June 30, 2025.
The reconciliations for each non-GAAP measure included in this press release are outlined as follows:
Net Property Income
Management uses net property income as a measure of performance of properties period over period.
Net property income is as follows:
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||
| 2025 | 2024 | Variance | 2025 | 2024 | Variance | ||||||||||||||
| Property revenue | $ | 123,774 | $ | 116,361 | $ | 7,413 | $ | 246,509 | $ | 234,970 | $ | 11,539 | |||||||
| Property operating expenses | (42,453 | ) | (41,473 | ) | (980 | ) | (88,022 | ) | (86,441 | ) | (1,581 | ) | |||||||
| Net property income | $ | 81,321 | $ | 74,888 | $ | 6,433 | $ | 158,487 | $ | 148,529 | $ | 9,958 | |||||||
Same-Asset Property Cash NOI
Crombie measures certain performance and operating metrics on a same-asset basis to evaluate the period-over-period performance of those properties owned and operated by Crombie. "Same-asset" refers to those properties that were owned and operated by Crombie for the current and comparative reporting periods. Properties that will be undergoing a redevelopment in a future period and those for which planning activities are underway are also in this category until such development activities commence and/or tenant leasing/renewal activity is suspended. Same-asset property cash NOI reflects Crombie's proportionate ownership of jointly operated properties (and excludes any properties held in joint ventures).
Management uses net property income on a cash basis (property cash NOI) as a measure of performance, as it reflects the cash generated by properties period over period.
Net property income on a cash basis, which excludes non-cash straight-line rent recognition and amortization of tenant incentive amounts, is as follows:
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||
| 2025 | 2024 | Variance | 2025 | 2024 | Variance | ||||||||||||||
| Net property income | $ | 81,321 | $ | 74,888 | $ | 6,433 | $ | 158,487 | $ | 148,529 | $ | 9,958 | |||||||
| Non-cash straight-line rent | (1,114 | ) | (1,395 | ) | 281 | (1,859 | ) | (2,892 | ) | 1,033 | |||||||||
| Non-cash tenant incentive amortization (1) | 7,788 | 7,121 | 667 | 15,440 | 13,839 | 1,601 | |||||||||||||
| Property cash NOI | 87,995 | 80,614 | 7,381 | 172,068 | 159,476 | 12,592 | |||||||||||||
| Acquisitions and dispositions property cash NOI | 5,680 | 260 | 5,420 | 8,365 | 247 | 8,118 | |||||||||||||
| Development property cash NOI | 834 | 1,126 | (292 | ) | 1,489 | 1,757 | (268 | ) | |||||||||||
| Acquisitions, dispositions, and development property cash NOI | 6,514 | 1,386 | 5,128 | 9,854 | 2,004 | 7,850 | |||||||||||||
| Same-asset property cash NOI | $ | 81,481 | $ | 79,228 | $ | 2,253 | $ | 162,214 | $ | 157,472 | $ | 4,742 | |||||||
(1) Refer to "Amortization of Tenant Incentives" in the Management's Discussion and Analysis for a breakdown of tenant incentive amortization.
FFO
Crombie follows the recommendations of the Real Property Association of Canada ("REALPAC") publication "REALPAC Funds From Operations (FFO) & Adjusted Funds From Operations (AFFO) for IFRS (January 2022)" in calculating FFO and has applied these recommendations to the FFO amounts included in this press release.
The reconciliation of FFO for the three and six months ended June 30, 2025 and 2024 is as follows:
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||
| 2025 | 2024 | Variance | 2025 | 2024 | Variance | ||||||||||||||
| Decrease in net assets attributable to Unitholders | $ | (5,111 | ) | $ | (10,154 | ) | $ | 5,043 | $ | (24,025 | ) | $ | (24,226 | ) | $ | 201 | |||
| Add (deduct): | |||||||||||||||||||
| Amortization of tenant incentives | 7,788 | 7,121 | 667 | 15,440 | 13,839 | 1,601 | |||||||||||||
| Gain on disposal of investment properties | (3,416 | ) | (2,163 | ) | (1,253 | ) | (3,189 | ) | (2,163 | ) | (1,026 | ) | |||||||
| Gain on derecognition of right-of-use-asset | (1,770 | ) | - | (1,770 | ) | (1,770 | ) | - | (1,770 | ) | |||||||||
| Impairment of investment properties | - | 2,000 | (2,000 | ) | - | 2,000 | (2,000 | ) | |||||||||||
| Depreciation and amortization of investment properties | 21,240 | 19,595 | 1,645 | 43,344 | 39,233 | 4,111 | |||||||||||||
| Adjustments for equity-accounted investments | 867 | 1,232 | (365 | ) | 1,732 | 2,495 | (763 | ) | |||||||||||
| Principal payments on right-of-use assets | 62 | 60 | 2 | 122 | 119 | 3 | |||||||||||||
| Internal leasing costs | 804 | 688 | 116 | 1,461 | 1,673 | (212 | ) | ||||||||||||
| Distributions to Unitholders | 41,210 | 40,564 | 646 | 82,257 | 80,963 | 1,294 | |||||||||||||
| Change in fair value of financial instruments (1) | 336 | (1,063 | ) | 1,399 | 2,195 | (1,185 | ) | 3,380 | |||||||||||
| FFO | $ | 62,010 | $ | 57,880 | $ | 4,130 | $ | 117,567 | $ | 112,748 | $ | 4,819 | |||||||
| Weighted average Units - basic and diluted (in 000's) | 185,099 | 182,186 | 2,913 | 184,733 | 181,818 | 2,915 | |||||||||||||
| FFO per Unit - basic and diluted | $ | 0.34 | $ | 0.32 | $ | 0.02 | $ | 0.64 | $ | 0.62 | $ | 0.02 | |||||||
| FFO payout ratio (%) | 66.5 % | 70.1 % | (3.6)% | 70.0 % | 71.8 % | (1.8)% | |||||||||||||
(1) Includes the fair value changes of Crombie's deferred unit plan and fair value changes of financial instruments which do not qualify for hedge accounting.
AFFO
Crombie follows the recommendations of the "REALPAC Funds From Operations (FFO) & Adjusted Funds From Operations (AFFO) for IFRS (January 2022)" in calculating AFFO and has applied these recommendations to the AFFO amounts included in this press release.
The reconciliation of AFFO for the three and six months ended June 30, 2025 and 2024 is as follows:
| Three months ended June 30, | Six months ended June 30, | ||||||||||||||||||
| 2025 | 2024 | Variance | 2025 | 2024 | Variance | ||||||||||||||
| FFO | $ | 62,010 | $ | 57,880 | $ | 4,130 | $ | 117,567 | $ | 112,748 | $ | 4,819 | |||||||
| Add (deduct): | |||||||||||||||||||
| Straight-line rent adjustment | (1,114 | ) | (1,395 | ) | 281 | (1,859 | ) | (2,892 | ) | 1,033 | |||||||||
| Straight-line rent adjustment included in loss from equity-accounted investments | (7 | ) | 36 | (43 | ) | (4 | ) | 115 | (119 | ) | |||||||||
| Internal leasing costs | (804 | ) | (688 | ) | (116 | ) | (1,461 | ) | (1,673 | ) | 212 | ||||||||
| Maintenance expenditures on a square footage basis | (5,238 | ) | (5,516 | ) | 278 | (10,506 | ) | (11,034 | ) | 528 | |||||||||
| AFFO | $ | 54,847 | $ | 50,317 | $ | 4,530 | $ | 103,737 | $ | 97,264 | $ | 6,473 | |||||||
| Weighted average Units - basic and diluted (in 000's) | 185,099 | 182,186 | 2,913 | 184,733 | 181,818 | 2,915 | |||||||||||||
| AFFO per Unit - basic and diluted | $ | 0.30 | $ | 0.28 | $ | 0.02 | $ | 0.56 | $ | 0.53 | $ | 0.03 | |||||||
| AFFO payout ratio (%) | 75.1 % | 80.6 % | (5.5)% | 79.3 % | 83.2 % | (3.9)% | |||||||||||||
Debt Metrics
Debt to gross fair value is a non-GAAP measure and may not be comparable to that used by other entities.
The fair value included in this calculation reflects the fair value of the properties as at June 30, 2025, December 31, 2024, and June 30, 2024, respectively, based on each property's current use as a revenue-generating investment property. Additionally, as properties are prepared for redevelopment, Crombie considers each property's progress through entitlement in determining the fair value of a property.
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |||||||
| Fixed rate mortgages | $ | 815,947 | $ | 827,930 | $ | 774,534 | |||
| Senior unsecured notes | 1,500,000 | 1,500,000 | 1,375,000 | ||||||
| Unsecured non-revolving credit facility | 50,000 | 50,000 | - | ||||||
| Construction financing facility | - | 13,447 | - | ||||||
| Unsecured revolving credit facility | - | - | 7,997 | ||||||
| Joint operation credit facility | 3,520 | 3,520 | 3,503 | ||||||
| Bilateral credit facility | - | - | 10,000 | ||||||
| Debt held in joint ventures, at Crombie's share (1) (2) | 232,756 | 185,991 | 276,397 | ||||||
| Lease liabilities | 27,200 | 33,937 | 35,872 | ||||||
| Adjusted debt | $ | 2,629,423 | $ | 2,614,825 | $ | 2,483,303 | |||
| Investment properties, fair value | $ | 5,792,000 | $ | 5,604,000 | $ | 5,236,000 | |||
| Investment properties held in joint ventures, fair value, at Crombie's share (2) | 328,500 | 285,000 | 452,000 | ||||||
| Other assets, cost (3) | 116,414 | 82,296 | 97,794 | ||||||
| Other assets, cost, held in joint ventures, at Crombie's share (2) (3) (4) | 8,344 | 5,755 | 27,994 | ||||||
| Cash and cash equivalents | 2,665 | 10,021 | - | ||||||
| Cash and cash equivalents held in joint ventures, at Crombie's share (2) | 4,441 | 3,434 | 4,924 | ||||||
| Deferred financing charges | 10,306 | 11,669 | 7,861 | ||||||
| Gross fair value | $ | 6,262,670 | $ | 6,002,175 | $ | 5,826,573 | |||
| Debt to gross fair value | 42.0 % | 43.6 % | 42.6 % |
(1) Includes Crombie's share of fixed rate mortgages, floating rate construction loans, revolving credit facility, and lease liabilities held in joint ventures.
(2) See the "Joint Ventures" section in the Management's Discussion and Analysis.
(3) Excludes tenant incentives, accumulated amortization, and accrued straight-line rent receivable.
(4) Includes deferred financing charges.
The following table presents a reconciliation of operating income attributable to Unitholders to adjusted EBITDA. Adjusted EBITDA is a non- GAAP measure and should not be considered an alternative to operating income attributable to Unitholders, and may not be comparable to that used by other entities.
| Three months ended | |||||||||
| June 30, 2025 | December 31, 2024 | June 30, 2024 | |||||||
| Operating income attributable to Unitholders | $ | 36,435 | $ | 76,143 | $ | 29,347 | |||
| Amortization of tenant incentives | 7,788 | 7,725 | 7,121 | ||||||
| Loss (gain) on disposal of investment properties | (3,416 | ) | 996 | (2,163 | ) | ||||
| Gain on acquisition of control of joint venture | - | (51,794 | ) | - | |||||
| Gain on derecognition of right-of-use asset | (1,770 | ) | (405 | ) | - | ||||
| Impairment of investment properties | - | 3,100 | 2,000 | ||||||
| Depreciation and amortization | 21,617 | 21,196 | 19,961 | ||||||
| Finance costs - operations | 24,418 | 25,401 | 22,182 | ||||||
| Loss from equity-accounted investments | 670 | 130 | 230 | ||||||
| Property revenue in joint ventures, at Crombie's share | 3,645 | 3,797 | 5,212 | ||||||
| Amortization of tenant incentives in joint ventures, at Crombie's share | 77 | 78 | 73 | ||||||
| Property operating expenses in joint ventures, at Crombie's share | (1,466 | ) | (1,199 | ) | (1,368 | ) | |||
| General and administrative expenses in joint ventures, at Crombie's share | (56 | ) | (43 | ) | (65 | ) | |||
| Taxes - current | - | 4 | - | ||||||
| Adjusted EBITDA [1] | $ | 87,942 | $ | 85,129 | $ | 82,530 | |||
| Trailing 12 months adjusted EBITDA [3] | $ | 335,545 | $ | 328,558 | $ | 323,519 | |||
| Finance costs - operations | $ | 24,418 | $ | 25,401 | $ | 22,182 | |||
| Finance costs - operations in joint ventures, at Crombie's share | 2,002 | 1,922 | 2,558 | ||||||
| Amortization of deferred financing charges | (734 | ) | (1,433 | ) | (600 | ) | |||
| Amortization of deferred financing charges in joint ventures, at Crombie's share | (207 | ) | (210 | ) | (322 | ) | |||
| Adjusted interest expense [2] | $ | 25,479 | $ | 25,680 | $ | 23,818 | |||
| Debt outstanding (see Debt to Gross Fair Value) (1) [4] | $ | 2,629,423 | $ | 2,614,825 | $ | 2,483,303 | |||
| Interest coverage ratio {[1]/[2]} | 3.45x | 3.31x | 3.47x | ||||||
| Debt to trailing 12 months adjusted EBITDA {[4]/[3]} | 7.84x | 7.96x | 7.68x | ||||||
(1) Includes debt held in joint ventures, at Crombie's share.
This press release contains forward-looking statements that reflect the current expectations of management of Crombie about Crombie's future results, performance, achievements, prospects, and opportunities. Wherever possible, words such as "may", "will", "estimate", "anticipate", "believe", "expect", "intend", "plan", "continue", and similar expressions have been used to identify these forward-looking statements. These statements reflect current beliefs and are based on information currently available to management of Crombie. Forward- looking statements necessarily involve known and unknown risks and uncertainties. A number of factors, including those discussed in the 2024 annual Management's Discussion and Analysis under "Risk Management" and the Annual Information Form for the year ended December 31, 2024 under "Risks", could cause actual results, performance, achievements, prospects, or opportunities to differ materially from the results discussed or implied in the forward-looking statements. These factors should be considered carefully, and a reader should not place undue reliance on the forward-looking statements. There can be no assurance that the expectations of management of Crombie will prove to be correct, and Crombie can give no assurance that actual results will be consistent with these forward-looking statements.
Specifically, this document includes, but is not limited to, forward-looking statements regarding expected timing, cost, and completion of entitlement and development, which may be impacted by ordinary real estate market cycles, the availability of labour, ability to attract tenants, estimated GLA, tenant rents, building sizes, financing and the cost of any such financing, capital resource allocation decisions and general economic conditions, as well as entitlement and development activities undertaken by related parties not under the direct control of Crombie, Crombie's ability to earn recurring development and management fees, and its ability to make decisions that maximize Unitholder value.
About Crombie REIT
Crombie invests in real estate with a vision of enriching communities together by building spaces and value today that leave a positive impact on tomorrow. As one of the country's leading owners, operators, and developers of quality real estate assets, Crombie's portfolio primarily includes grocery-anchored retail, retail-related industrial, and mixed-use residential properties. As at June 30, 2025, our portfolio contained 306 properties comprising approximately 18.8 million square feet, inclusive of joint ventures at Crombie's share, and a significant pipeline of future development projects. Learn more at www.crombie.ca.
Media Contact
Kara Cameron, CPA, CA, Chief Financial Officer, Crombie REIT, (902) 755-8100
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/261541
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