Crombie REIT Announces Third Quarter 2026 Results
Debt relative to adjusted earnings increased, while interest coverage weakened despite higher property revenue and funds from operations.
Sentiment and the balance of points
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Rhea-AI Summary
Crombie REIT (CROMF) reported third-quarter property revenue of C$127.586 million, up 6.2% from the same quarter in 2025. Operating income attributable to unitholders fell 8.7% to C$28.260 million. Funds from operations (FFO), a non-GAAP performance measure, rose 3.0% per unit to C$0.34; adjusted FFO per unit remained C$0.30.
Commercial same-asset property cash net operating income increased 2.7%. Renewal rents rose 13.9% over expiring rates across 107,000 square feet. Committed occupancy reached 97.7%, while rent-paying occupancy fell to 96.8%. After quarter-end, Crombie signed a binding agreement to buy 13 Ontario retail properties for C$134 million, excluding closing and transaction costs. Closing is scheduled for November 2026, funded through its existing revolving credit facility. Available liquidity fell to C$591.511 million from C$669.229 million at December 31, 2025.
How this balance works
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Hollow bars mark forward-looking points. How the balance works
Positive
- Major pointSeries N notes raised C$300 million through a private placement.
- Moderate pointQ3 property revenue increased 6.2% year over year to C$127.586 million.
- Moderate pointQ3 net property income rose 7.2% year over year to C$85.193 million.
- Moderate pointQ3 commercial same-asset cash net operating income increased 2.7% year over year to C$86.513 million.
- Moderate pointQ3 FFO increased 2.9% to C$63.891 million; per-unit FFO rose 3.0% to C$0.34 year over year.
- Moderate pointQ3 adjusted FFO rose 3.6% to C$57.061 million; per-unit adjusted FFO remained C$0.30 year over year.
- Moderate pointRetail renewals covering 107,000 square feet achieved rents 13.9% above expiring rates during Q3.
- Moderate pointBinding Ontario acquisition agreement covers 13 retail properties for C$134 million, excluding closing and transaction costs.
- Moderate pointSeries F redemption retired C$200 million of notes bearing 3.677% interest and scheduled to mature August 26, 2026.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Active non-major developments comprise 30 projects with estimated total costs of C$90.055 million at Crombie’s share.
- Moderate pointUnencumbered investment property fair value increased to C$4.297 billion from C$3.911 billion at December 31, 2025.
16 minor points
- Minor pointQ3 adjusted FFO payout ratio declined to 75.1% from 75.6% a year earlier.
- Minor pointNine-month net property income increased 3.7% year over year to C$246.681 million.
- Minor pointNine-month commercial same-asset cash net operating income rose 3.2% year over year to C$255.934 million.
- Minor pointNine-month FFO rose 3.9% to C$187.901 million; per-unit FFO increased 2.0% to C$1.00 year over year.
- Minor pointNine-month adjusted FFO increased 4.2% to C$166.740 million; per-unit adjusted FFO rose 3.5% to C$0.89 year over year.
- Minor pointNine-month FFO payout ratio improved to 67.9% from 68.5% a year earlier.
- Minor pointNine-month adjusted FFO payout ratio improved to 76.5% from 77.4% a year earlier.
- Minor pointCommitted occupancy increased 20 basis points year over year to 97.7% at September 30, 2026.
- Minor pointRenewal-term weighted average rents exceeded expiring rents by 16.7% for Q3 renewals.
- Minor pointNew commercial leases added 121,000 occupied square feet at an average first-year rent of C$28.44 per square foot.
- Minor pointWindsor land acquisition added two parcels totalling 10.8 acres for C$4.397 million, excluding closing and transaction costs.
- Minor pointQ3 retail property disposal generated gross proceeds of C$5.500 million for a 116,000-square-foot property.
- Minor pointOctober 29 retail disposal generated C$5.450 million before closing and transaction costs; Crombie retained the grocery component through a long-term lease.
- Minor pointThe Marlstone reached substantial completion in Q2 2026; lease-up is underway.
- Minor pointQ3 modernization investment totalled C$6.049 million in properties renovated for a defined return and potentially extended leases.
- Minor pointDebt to gross fair value declined to 41.9% from 42.1% at December 31, 2025.
Negative
- Major pointSeries N debt obligation carries 4.518% annual interest, paid semi-annually, and matures July 6, 2033.
- Moderate pointQ3 operating income attributable to unitholders declined 8.7% year over year to C$28.260 million.
- Moderate pointAvailable liquidity declined to C$591.511 million from C$669.229 million at December 31, 2025.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Ontario acquisition is scheduled to close in November 2026 and will use the existing revolving credit facility.
- Moderate point. Forward-looking: it has not happened yet and may not happen.Approved non-major developments require an estimated C$57.270 million to complete at Crombie’s share.
13 minor points
- Minor pointNine-month operating income attributable to unitholders fell 7.1% year over year to C$86.027 million.
- Minor pointInvestment property impairment contributed to the Q3 operating income decline, Crombie said.
- Minor pointHigher interest expense and reduced development management fees partly offset Q3 property revenue growth, Crombie said.
- Minor pointLower lease termination income and residential net property income weighed on nine-month results, Crombie said.
- Minor pointHigher general and administrative expenses related to filling vacant roles weighed on nine-month results, Crombie said.
- Minor pointIncreased tenant incentive amortization, depreciation and amortization contributed to lower nine-month operating income, Crombie said.
- Minor pointLower disposal gains and a prior-year right-of-use asset derecognition gain contributed to lower nine-month operating income, Crombie said.
- Minor pointRent-paying occupancy fell 40 basis points year over year to 96.8% at September 30, 2026.
- Minor pointDebt to gross book value increased to 46.4% from 45.5% at December 31, 2025.
- Minor pointDebt to trailing 12-month adjusted earnings before interest, taxes, depreciation and amortization rose to 7.91 times from 7.66 times at December 31, 2025.
- Minor pointQ3 interest coverage declined to 3.33 times from 3.46 times a year earlier.
- Minor pointWeighted average interest rate increased to 4.2% from 4.1% at December 31, 2025.
- Minor pointOctober disposal consideration includes C$2.700 million of vendor take-back financing for three years.
AI-generated analysis. How Rhea-AI works. Not financial advice.
Strong leasing and disciplined execution deliver
New Glasgow, Nova Scotia--(Newsfile Corp. - November 4, 2026) - Crombie Real Estate Investment Trust (TSX: CRR.UN) ("Crombie") today announced results for its third quarter ended September 30, 2026. Management will host a conference call to discuss the results at 10:00 a.m. (EST), November 5, 2026.
"Crombie's third quarter results demonstrate what a portfolio built with purpose is designed to deliver: steady, dependable growth," said Mark Holly, President and CEO. "Renewal growth of
THIRD 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 three months ended September 30, 2026 and Interim Condensed Consolidated Financial Statements and Notes for the periods ended September 30, 2026, and September 30, 2025. Full details on our results can be found at www.crombie.ca and www.sedarplus.ca.
Operational and Financial Highlights
- Committed occupancy of
97.7% and economic occupancy of96.8% ; a 20 basis point increase in committed occupancy and a 40 basis point decrease in economic occupancy, compared to the third quarter of 2025 - Renewals of 107,000 square feet at rents
13.9% above expiring rental rates- An increase of
16.7% for the three months ended September 30, 2026 using the weighted average rental rate during the renewal term
- An increase of
- Property revenue increased by
6.2% to$127,586 , from$120,084 in the third quarter of 2025 - Operating income attributable to Unitholders(2) was
$28,260 , an8.7% decrease compared to$30,950 in the third quarter of 2025 - Funds from operations ("FFO")(1)(2) per Unit of
$0.34 , an increase of3.0% compared to$0.33 per Unit in the third quarter of 2025 - Adjusted funds from operations ("AFFO")(1)(2) per Unit of
$0.30 per Unit unchanged from$0.30 per Unit in the third quarter of 2025 - Commercial same-asset property cash NOI(1) increased by
2.7% to$86,513 , from$84,257 in the third quarter of 2025 - Following the substantial completion of The Marlstone in Q2 2026, lease-up is currently underway
Capital Allocation Highlights
- Acquired two land parcels in Windsor, NS, from a third party totalling 10.8 acres for
$4,397 , excluding closing and transaction costs - Issued
$300,000 of Series N senior unsecured notes, on a private placement basis, maturing July 6, 2033 with a contractual interest rate of4.518% per annum payable in equal semi-annual installments on January 6 and July 6 - Redeemed
$200,000 of Series F senior unsecured notes bearing interest at3.677% per annum and scheduled to mature on August 26, 2026 - Disposition of one retail property in Regional Markets, totalling 116,000 square feet for gross proceeds of
$5,500 - Invested
$6,049 in modernizations during the quarter
(1) Non-GAAP financial measures used by management to evaluate Crombie's business performance. See "Non-GAAP Measures and Cautionary Statements" below for a reconciliation of FFO, AFFO, and commercial same-asset property cash NOI.
(2) Operating income attributable to Unitholders, FFO, and AFFO for the three months ended September 30, 2025 were updated from the previously reported figures for a change in presentation of fair value of Unit-based compensation.
Highlighted Subsequent Events
Acquisition Activity
On October 13, 2026, Crombie entered into a binding agreement to acquire a
Disposition Activity
On October 29, 2026, Crombie disposed of a
Portfolio Optimization
Our development program is divided into major development projects with a total estimated cost greater than
Major Development
Following substantial completion of The Marlstone, there was no material major development activity during the period.
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.
The table below summarizes active non-major developments within Crombie's portfolio at September 30, 2026.
| 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 | 6 | 118,200 | $ | 66,973 | $ | 57,270 | ||
| Modernizations (1) | 24 | — | 23,082 | — | ||||
| Total non-major developments | 30 | 118,200 | $ | 90,055 | $ | 57,270 | ||
(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 nine months ended September 30, 2026 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.
Financial Metrics
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||||||||
| 2026 | 2025 | Variance | % | 2026 | 2025 | Variance | % | ||||||||||||||||||
| Net property income (1) | $ | 85,193 | $ | 79,474 | $ | 5,719 | 7.2 % | $ | 246,681 | $ | 237,961 | $ | 8,720 | 3.7 % | |||||||||||
| Operating income attributable to Unitholders (2) | $ | 28,260 | $ | 30,950 | $ | (2,690 | ) | (8.7) % | $ | 86,027 | $ | 92,628 | $ | (6,601 | ) | (7.1) % | |||||||||
| Commercial same-asset property cash NOI (1) | $ | 86,513 | $ | 84,257 | $ | 2,256 | 2.7 % | $ | 255,934 | $ | 248,001 | $ | 7,933 | 3.2 % | |||||||||||
| FFO (1)(2) | $ | 63,891 | $ | 62,078 | $ | 1,813 | 2.9 % | $ | 187,901 | $ | 180,896 | $ | 7,005 | 3.9 % | |||||||||||
| Per Unit | $ | 0.34 | $ | 0.33 | $ | 0.01 | 3.0 % | $ | 1.00 | $ | 0.98 | $ | 0.02 | 2.0 % | |||||||||||
| Payout ratio (1) | 67.1 % | 67.1 % | — % | 67.9 % | 68.5 % | (0.6) % | |||||||||||||||||||
| AFFO (1)(2) | $ | 57,061 | $ | 55,099 | $ | 1,962 | 3.6 % | $ | 166,740 | $ | 160,087 | $ | 6,653 | 4.2 % | |||||||||||
| Per Unit | $ | 0.30 | $ | 0.30 | $ | — | — % | $ | 0.89 | $ | 0.86 | $ | 0.03 | 3.5 % | |||||||||||
| Payout ratio (1) | 75.1 % | 75.6 % | (0.5) % | 76.5 % | 77.4 % | (0.9) % | |||||||||||||||||||
(1) Net property income, commercial 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.
(2) Operating income attributable to Unitholders, FFO, AFFO, and related per Unit and payout ratios for the three and nine months ended September 30, 2025, were updated from the previously reported figures for a change in presentation of fair value of Unit-based compensation.
Third Quarter and Year-to-Date 2026 Results
Operating income attributable to Unitholders
The decrease in operating income in the third quarter of 2026 was primarily due to impairment of investment properties, increased interest expense from the net issuance of senior unsecured notes in 2026, and a reduction in development management fees. This was offset in part by property revenue growth from recent acquisitions, new leasing, and renewals.
In addition to the items discussed above for the quarter, the year-to-date decrease was further driven by a reduction in lease termination income, a decrease in gain (loss) on disposal of investment properties, increased tenant incentive amortization from modernizations, and lower net property income from residential. Also contributing to the decline was the 2025 gain on derecognition of a right-of-use asset from the disposition of the Moncton Main Street Centre property, higher general and administrative expenses related to filling vacant roles, and increased depreciation and amortization from acquisitions. This was partially offset by increased supplemental rent from modernization investments.
Commercial same-asset property cash NOI
The increase in commercial same-asset property cash NOI for the quarter was primarily driven by 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 for the quarter was primarily due to property revenue growth as discussed above. This was partially offset by a reduction in development management fees and increased interest expense due to the net issuance of senior unsecured notes in the current quarter.
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. This was partially offset by reduced lease termination income, a reduction in property revenue from properties disposed of, lower net property income from residential, and an increase in general and administrative expenses related to filling vacant roles.
AFFO
The increase in AFFO in the quarter and year-to-date was primarily driven by the same factors impacting FFO.
Operational Metrics
| September 30, 2026 | September 30, 2025 | |||||
| Number of investment properties (1) | 301 | 297 | ||||
| Gross leasable area (2) | 18,723,000 | 18,198,000 | ||||
| Economic occupancy (3) | 96.8 | % | 97.2 | % | ||
| Committed occupancy (4) | 97.7 | % | 97.5 | % | ||
| Total properties inclusive of joint ventures and residential property (5) | 311 | 306 | ||||
| Gross leasable area inclusive of joint ventures and residential property | 19,435,000 | 18,815,000 | ||||
(1) This includes properties owned at full and partial interests, excluding joint ventures, wholly owned residential, and properties under development.
(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 121,000 square feet at September 30, 2026, at an average first-year rate of
Renewal activity for the third quarter of 2026 consisted of 107,000 square feet of retail renewals, reflecting a
When comparing the expiring rental rates to the weighted average rental rate for the renewal term, Crombie achieved an increase of
Financial Condition Metrics
| September 30, 2026 | December 31, 2025 | September 30, 2025 | |||||||
| Fair value of unencumbered investment properties (3) | $ | 4,297,000 | $ | 3,911,000 | $ | 3,881,000 | |||
| Available liquidity (1) | $ | 591,511 | $ | 669,229 | $ | 676,106 | |||
| Debt to gross book value - cost basis (2) | 46.4 % | 45.5 % | 45.6 % | ||||||
| Debt to gross fair value (3)(4) | 41.9 % | 42.1 % | 41.9 % | ||||||
| Weighted average interest rate | 4.2 % | 4.1 % | 4.1 % | ||||||
| Debt to trailing 12 months adjusted EBITDA (3)(4)(6) | 7.91x | 7.66x | 7.66x | ||||||
| Interest coverage ratio (3)(4)(5)(6) | 3.33x | 3.40x | 3.46x |
(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 "Non-GAAP Measures and Cautionary Statements" 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.
(5) For the three months ended September 30, 2026, December 31, 2025, and September 30, 2025.
(6) Debt to trailing 12 months adjusted EBITDA and interest coverage ratio for the three months ended December 31, 2025 and September 30, 2025, were updated from the previously reported figures for a change in presentation of fair value of Unit-based compensation.
Conference Call and Webcast
Crombie will provide additional details regarding its third quarter ended September 30, 2026 results on a conference call to be held Thursday, November 5, 2026, beginning at 10:00 a.m. (EST). Accompanying the conference call will be a presentation that will be available on the Investors section of Crombie's website. To join the conference call, please dial +1-833-752-5566 (U.S./Canada) or +1-647-258-0575 (international). To join the conference call without operator assistance, you may register and enter your details here 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 and through this link.
A replay will be available by dialing +1-855-669-9658 and entering password 5339427#, until midnight on November 12, 2026.
Non-GAAP Measures and Cautionary Statements
Net property income, commercial 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, fair value of unencumbered investment properties 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 nine months ended September 30, 2026.
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 September 30, | Nine months ended September 30, | ||||||||||||||||||
| 2026 | 2025 | Variance | 2026 | 2025 | Variance | ||||||||||||||
| Property revenue | $ | 127,586 | $ | 120,084 | $ | 7,502 | $ | 380,870 | $ | 366,593 | $ | 14,277 | |||||||
| Property operating expenses | (42,393 | ) | (40,610 | ) | (1,783 | ) | (134,189 | ) | (128,632 | ) | (5,557 | ) | |||||||
| Net property income | $ | 85,193 | $ | 79,474 | $ | 5,719 | $ | 246,681 | $ | 237,961 | $ | 8,720 | |||||||
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 September 30, | Nine months ended September 30, | ||||||||||||||||||
| 2026 | 2025 | Variance | 2026 | 2025 | Variance | ||||||||||||||
| Net property income | $ | 85,193 | $ | 79,474 | $ | 5,719 | $ | 246,681 | $ | 237,961 | $ | 8,720 | |||||||
| Non-cash straight-line rent | (597 | ) | (986 | ) | 389 | (2,500 | ) | (2,845 | ) | 345 | |||||||||
| Non-cash tenant incentive amortization (1) | 7,238 | 8,153 | (915 | ) | 25,779 | 23,593 | 2,186 | ||||||||||||
| Property cash NOI | 91,834 | 86,641 | 5,193 | 269,960 | 258,709 | 11,251 | |||||||||||||
| Acquisitions and dispositions property cash NOI | 2,485 | 36 | 2,449 | 6,786 | 2,751 | 4,035 | |||||||||||||
| Development property cash NOI | 671 | 231 | 440 | 1,024 | 609 | 415 | |||||||||||||
| Acquisitions, dispositions, and development property cash NOI | 3,156 | 267 | 2,889 | 7,810 | 3,360 | 4,450 | |||||||||||||
| Same-asset property cash NOI | $ | 88,678 | $ | 86,374 | $ | 2,304 | $ | 262,150 | $ | 255,349 | $ | 6,801 | |||||||
| Commercial same-asset property cash NOI | $ | 86,513 | $ | 84,257 | $ | 2,256 | $ | 255,934 | $ | 248,001 | $ | 7,933 | |||||||
| Residential same-asset property cash NOI (2) | 2,165 | 2,117 | 48 | 6,216 | 7,348 | (1,132 | ) | ||||||||||||
| Same-asset property cash NOI | $ | 88,678 | $ | 86,374 | $ | 2,304 | $ | 262,150 | $ | 255,349 | $ | 6,801 | |||||||
(1) Refer to "Amortization of Tenant Incentives" in the Management's Discussion and Analysis for a breakdown of tenant incentive amortization.
(2) Residential includes
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 nine months ended September 30, 2026 and 2025 is as follows:
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||
| 2026 | 2025 | Variance | 2026 | 2025 | Variance | ||||||||||||||
| Decrease in net assets attributable to Unitholders | $ | (11,388 | ) | $ | (11,306 | ) | $ | (82 | ) | $ | (41,990 | ) | $ | (35,331 | ) | $ | (6,659 | ) | |
| Add (deduct): | |||||||||||||||||||
| Amortization of tenant incentives | 7,238 | 8,153 | (915 | ) | 25,779 | 23,593 | 2,186 | ||||||||||||
| Loss (gain) on disposal of investment properties | (297 | ) | 100 | (397 | ) | (297 | ) | (3,089 | ) | 2,792 | |||||||||
| Gain on derecognition of right-of-use-asset | - | — | — | (98 | ) | (1,770 | ) | 1,672 | |||||||||||
| Impairment of investment properties | 4,600 | — | 4,600 | 4,600 | — | 4,600 | |||||||||||||
| Depreciation and amortization of investment properties | 21,848 | 21,254 | 594 | 66,149 | 64,598 | 1,551 | |||||||||||||
| Adjustments for equity-accounted investments | 1,330 | 867 | 463 | 2,994 | 2,599 | 395 | |||||||||||||
| Principal payments on right-of-use assets | 86 | 27 | 59 | 261 | 149 | 112 | |||||||||||||
| Internal leasing costs | 826 | 727 | 99 | 2,486 | 2,188 | 298 | |||||||||||||
| Distributions to Unitholders | 42,845 | 41,669 | 1,176 | 127,524 | 123,926 | 3,598 | |||||||||||||
| Change in fair value of financial instruments (1)(2) | (3,197 | ) | 587 | (3,784 | ) | 493 | 4,033 | (3,540 | ) | ||||||||||
| FFO (2) | $ | 63,891 | $ | 62,078 | $ | 1,813 | $ | 187,901 | $ | 180,896 | $ | 7,005 | |||||||
| Weighted average Units - basic and diluted (in 000's) | 188,254 | 185,775 | 2,479 | 187,685 | 185,084 | 2,601 | |||||||||||||
| FFO (2) per Unit - basic and diluted | $ | 0.34 | $ | 0.33 | $ | 0.01 | $ | 1.00 | $ | 0.98 | $ | 0.02 | |||||||
| FFO (2) payout ratio (%) | 67.1 % | 67.1 % | — % | 67.9 % | 68.5 % | (0.6) % | |||||||||||||
(1) Includes the fair value changes of Crombie's Unit based plans and fair value changes of financial instruments which do not qualify for hedge accounting.
(2) Change in fair value of financial instruments, FFO and the related payout ratio for the three and nine months ended September 30, 2025 were updated from the previously reported figures for a change in presentation of fair value of Unit-based compensation.
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 nine months ended September 30, 2026 and 2025 is as follows:
| Three months ended September 30, | Nine months ended September 30, | ||||||||||||||||||
| 2026 | 2025 | Variance | 2026 | 2025 | Variance | ||||||||||||||
| FFO (1) | $ | 63,891 | $ | 62,078 | $ | 1,813 | $ | 187,901 | $ | 180,896 | $ | 7,005 | |||||||
| Add (deduct): | |||||||||||||||||||
| Straight-line rent adjustment | (597 | ) | (986 | ) | 389 | (2,500 | ) | (2,845 | ) | 345 | |||||||||
| Straight-line rent adjustment included in loss from equity-accounted investments | 8 | (17 | ) | 25 | (4 | ) | (21 | ) | 17 | ||||||||||
| Internal leasing costs | (826 | ) | (727 | ) | (99 | ) | (2,486 | ) | (2,188 | ) | (298 | ) | |||||||
| Maintenance expenditures on a square footage basis | (5,415 | ) | (5,249 | ) | (166 | ) | (16,171 | ) | (15,755 | ) | (416 | ) | |||||||
| AFFO (1) | $ | 57,061 | $ | 55,099 | $ | 1,962 | $ | 166,740 | $ | 160,087 | $ | 6,653 | |||||||
| Weighted average Units - basic and diluted (in 000's) | 188,254 | 185,775 | 2,479 | 187,685 | 185,084 | 2,601 | |||||||||||||
| AFFO (1) per Unit - basic and diluted | $ | 0.30 | $ | 0.30 | $ | — | $ | 0.89 | $ | 0.86 | $ | 0.03 | |||||||
| AFFO (1) payout ratio (%) | 75.1 % | 75.6 % | (0.5) % | 76.5 % | 77.4 % | (0.9) % | |||||||||||||
(1) FFO, AFFO and the related payout ratio for the three and nine months ended September 30, 2025 were updated from the previously reported figures for a change in presentation of fair value of Unit-based compensation.
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 September 30, 2026, December 31, 2025, and September 30, 2025, 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.
| September 30, 2026 | December 31, 2025 | September 30, 2025 | |||||||
| Fixed rate mortgages | $ | 776,959 | $ | 807,091 | $ | 809,859 | |||
| Senior unsecured notes | 1,600,000 | 1,500,000 | 1,500,000 | ||||||
| Unsecured non-revolving credit facility | 50,000 | 50,000 | 50,000 | ||||||
| Unsecured revolving credit facility | 47,800 | — | — | ||||||
| Joint operation secured construction financing facility | 2,300 | — | — | ||||||
| Joint operation credit facility | 4,046 | 3,623 | 3,570 | ||||||
| Unsecured bilateral credit facility | 41,200 | 10,000 | 6,000 | ||||||
| Debt held in joint ventures, at Crombie's share (1) (2) | 263,535 | 244,495 | 237,128 | ||||||
| Lease liabilities | 29,002 | 31,129 | 27,091 | ||||||
| Adjusted debt | $ | 2,814,842 | $ | 2,646,338 | $ | 2,633,648 | |||
| Investment properties, fair value | $ | 6,209,000 | $ | 5,841,000 | $ | 5,827,000 | |||
| Investment properties held in joint ventures, fair value, at Crombie's share (2) | 388,000 | 347,500 | 318,000 | ||||||
| Other assets, cost (3) | 92,140 | 77,738 | 110,141 | ||||||
| Other assets, cost, held in joint ventures, at Crombie's share (2) (3) (4) | 6,047 | 4,392 | 7,573 | ||||||
| Cash and cash equivalents | 5,456 | 1,661 | 4,791 | ||||||
| Cash and cash equivalents held in joint ventures, at Crombie's share (2) | 3,076 | 6,284 | 3,068 | ||||||
| Deferred financing charges | 8,989 | 9,093 | 9,688 | ||||||
| Gross fair value | $ | 6,712,708 | $ | 6,287,668 | $ | 6,280,261 | |||
| Debt to gross fair value | 41.9 % | 42.1 % | 41.9 % |
(1) Includes Crombie's share of fixed rate mortgages, floating rate construction loans, floating rate revolving credit facilities, 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 | |||||||||
| September 30, 2026 | December 31, 2025 | September 30, 2025 | |||||||
| Operating income attributable to Unitholders (2) | $ | 28,260 | $ | 25,357 | $ | 30,950 | |||
| Amortization of tenant incentives | 7,238 | 9,352 | 8,153 | ||||||
| Loss (gain) on disposal of investment properties | (297 | ) | — | 100 | |||||
| Impairment of investment properties | 4,600 | 8,400 | — | ||||||
| Reversal of impairment of investment properties | — | (6,680 | ) | — | |||||
| Depreciation and amortization | 22,260 | 23,201 | 21,627 | ||||||
| Finance costs - operations | 26,154 | 24,544 | 24,360 | ||||||
| Loss from equity-accounted investments | 166 | 241 | 518 | ||||||
| Property revenue in joint ventures, at Crombie's share | 4,119 | 3,868 | 3,695 | ||||||
| Amortization of tenant incentives in joint ventures, at Crombie's share | 81 | 81 | 77 | ||||||
| Property operating expenses in joint ventures, at Crombie's share | (1,249 | ) | (1,263 | ) | (1,438 | ) | |||
| General and administrative expenses in joint ventures, at Crombie's share | (61 | ) | (30 | ) | 12 | ||||
| Taxes - current | — | 3 | — | ||||||
| Adjusted EBITDA [1] | $ | 91,271 | $ | 87,074 | $ | 88,054 | |||
| Trailing 12 months adjusted EBITDA [3] | $ | 355,813 | $ | 345,578 | $ | 343,633 | |||
| Finance costs - operations | $ | 26,154 | $ | 24,544 | $ | 24,360 | |||
| Finance costs - operations in joint ventures, at Crombie's share | 2,238 | 2,015 | 1,997 | ||||||
| Amortization of deferred financing charges | (752 | ) | (734 | ) | (720 | ) | |||
| Amortization of deferred financing charges in joint ventures, at Crombie's share | (207 | ) | (201 | ) | (206 | ) | |||
| Adjusted interest expense [2] | $ | 27,433 | $ | 25,624 | $ | 25,431 | |||
| Debt outstanding (see Debt to Gross Fair Value) (1) [4] | $ | 2,814,842 | $ | 2,646,338 | $ | 2,633,648 | |||
| Interest coverage ratio {[1]/[2]} | 3.33x | 3.40x | 3.46x | ||||||
| Debt to trailing 12 months adjusted EBITDA {[4]/[3]} | 7.91x | 7.66x | 7.66x | ||||||
(1) Includes debt held in joint ventures, at Crombie's share.
(2) Operating income attributable to Unitholders for the three months ended December 31, 2025 and September 30, 2025 were updated from the previously reported figures for a change in presentation of fair value of Unit-based compensation.
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 2025 annual Management's Discussion and Analysis under "Risk Management" and the Annual Information Form for the year ended December 31, 2025 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 our non-major developments, which may be impacted by the availability of labour and variation in market construction costs, and statements relating to the sustainability and potential long-term growth of our cash flows, which may be impacted by general economic conditions, the ability to attract tenants and our ability to grow our portfolio through acquisitions and development activity.
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 September 30, 2026, our portfolio contained 311 properties comprising approximately 19.4 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.
Investor Relations Contacts
Kara Cameron, CPA, CA, Chief Financial Officer, Crombie REIT, Kara.Cameron@crombie.ca
Meghna Nair, Manager, Investor Relations, Crombie REIT, Meghna.Nair@crombie.ca
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/322524
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were Crombie REIT’s third-quarter 2026 earnings and FFO results?
Crombie’s operating income attributable to unitholders fell 8.7% to C$28.260 million, while FFO per unit rose 3.0% to C$0.34 compared with Q3 2025. Adjusted FFO per unit remained C$0.30. FFO and adjusted FFO are non-GAAP performance measures.
What retail portfolio is Crombie REIT acquiring in Ontario?
Crombie signed a binding agreement to acquire a 100% interest in 13 retail properties totalling approximately 588,000 square feet for C$134 million, excluding closing and transaction costs. The acquisition is scheduled to close in November 2026 and will be financed through the existing unsecured revolving credit facility.
What financing did Crombie REIT provide in its October 2026 property sale?
Crombie provided C$2.700 million of vendor take-back financing for three years as part of its October 29 disposal of a 271,000-square-foot retail property. Total proceeds were C$5.450 million before closing and transaction costs. Crombie retained the grocery component through a long-term lease.