– REIT generates AFFO growth of 19.1% resulting in record quarterly AFFO per unit –
TORONTO, May 13, 2026 /CNW/ - Automotive Properties Real Estate Investment Trust (TSX: APR.UN) ("Automotive Properties REIT" or the "REIT") today announced its financial results for the three-month period ended March 31, 2026 ("Q1 2026").
"Our strong first quarter performance reflects the positive impact of the 13 property acquisitions we completed in 2025 and the partial contributions of two additional property acquisitions we completed during the quarter," said Milton Lamb, CEO of Automotive Properties REIT. "We generated strong year-over-year growth of 21.7% in rental revenue and 19.0% in cash NOI, resulting in record quarterly AFFO per unit."
"Subsequent to quarter end, we completed an additional property acquisition in southern California, adding two more dealership properties to our portfolio," continued Mr. Lamb. "We look forward to building on our positive momentum in the year ahead, supported by a growing property portfolio featuring high-quality tenants providing essential automotive retail and services, 100% occupancy and rent collection, locations in prime metropolitan markets featuring GDP and population growth, an attractive net lease structure, and embedded fixed or CPI-adjusted rental growth."
Q1 2026 Highlights
- The REIT generated AFFO per Unit1 of $0.262 (diluted) and paid regular cash distributions of $0.206 per Unit (as defined below) in Q1 2026, representing an AFFO payout ratio1 of approximately 78.6%. For the comparable three-month period ended March 31, 2025 ("Q1 2025"), the REIT generated AFFO per Unit of $0.247 (diluted) and paid regular cash distributions of $0.201 per Unit, representing an AFFO payout ratio of approximately 81.4%.
- The REIT had a Debt to Gross Book Value ("Debt to GBV")2 ratio of 46.3% as at March 31, 2026, and had $69.0 million of undrawn capacity under its revolving credit facilities, $1.0 million of cash on hand, and 11 unencumbered properties with an aggregate value of approximately $152.9 million. As at the date of this news release, the REIT has a Debt to GBV ratio of 47.8%, approximately $32.5 million of undrawn capacity under its revolving credit facilities, and 13 unencumbered properties with an aggregate value of approximately $195.4 million.
- On January 1, 2026, the REIT acquired a Hyundai dealership property located at 300 Boulevard Louis-XIV in Québec City (the "Québec City Hyundai Property") for a purchase price of approximately $13.25 million. The REIT funded the purchase price of the Québec City Hyundai Property by drawing on its revolving credit facilities.
- On March 26, 2026, the REIT acquired a Rivian automotive and service property located in Vista, San Diego County, California (the "Vista Rivian Property") for a purchase price of US$16.0 million. The REIT funded the purchase price of the Vista Rivian Property primarily by drawing on its revolving credit facilities.
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1 AFFO per Unit is a non-IFRS measure and AFFO payout ratio is a non-IFRS ratio. See "Non-IFRS Financial Measures" at the end of this news release. |
2 Debt to GBV is a supplementary financial measure. See "Non-IFRS Financial Measures" at the end of this news release. |
Subsequent Event
- On April 7, 2026, the REIT acquired two automotive dealership properties located in Santa Ana, Orange Country, California (the "Orange Country Properties") for a purchase price of US$30.15 million. The REIT funded the purchase price of the Orange Country Properties, which include the Audi South Coast and South Coast Volkswagen dealership properties, by drawing on its revolving credit facilities. The Orange County Properties are tenanted by Penske Automotive Group, Inc.
Financial Results Summary
| Three months ended March 31, |
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($000s, except per Unit amounts) | 2026 | 2025 | Change |
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Rental revenue (1) | $29,096 | $23,902 | 21.7 % |
NOI (2) | 24,200 | 20,211 | 19.7 % |
Cash NOI (2) | 23,830 | 20,018 | 19.0 % |
Same Property Cash NOI (1) (2) | 20,438 | 20,024 | 2.1 % |
Net Income (3) | 24,423 | 7,695 | 217.4 % |
Net Income and other comprehensive income (3) | 25,266 | 7,641 | 230.7 % |
FFO (2) | 15,195 | 12,622 | 20.4 % |
AFFO (2) | 14,804 | 12,427 | 19.1 % |
Distributions per Unit | $0.206 | $0.201 | 0.005 |
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FFO per Unit - basic (2) (4) | 0.276 | 0.257 | 0.019 |
FFO per Unit - diluted (2) (5) | 0.268 | 0.251 | 0.017 |
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AFFO per Unit - basic (2) (4) | 0.269 | 0.253 | 0.016 |
AFFO per Unit - diluted (2) (5) | 0.262 | 0.247 | 0.015 |
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Ratios (%) |
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FFO payout ratio (2) | 76.5 % | 80.1 % | 3.6 % |
AFFO payout ratio (2) | 78.6 % | 81.4 % | 2.8 % |
Debt to GBV (6) | 46.3 % | 43.8 % | -2.5 % |
(1) | Rental revenue is based on rents from leases entered into with tenants, all of which are triple-net leases and include recoverable realty taxes and straight-line adjustments. Same Property Cash NOI is based on rental revenue for the same asset base having consistent gross leaeesable area in both periods. |
(2) | NOI, Cash NOI, Same Property Cash NOI, FFO, AFFO, FFO per Unit, AFFO per Unit, FFO payout ratio and AFFO payout ratio are non-IFRS measures or non-IFRS ratios, as applicable. See "Non-IFRS Financial Measures" at the end of this news release. References to "Same Property" correspond to properties that the REIT owned in Q1 2025, thus removing the impact of acquisitions and dispositions. |
(3) | Net Income and Net Income and Other Comprehensive Income for Q1 2026 includes changes in fair value adjustments of $0.5 million for Class B LP Units, Deferred Units ("DUs"), Income Deferred Units ("IDUs"), Performance Deferred Units ("PDUs") and Restricted Deferred Units ("RDUs"), $2.0 million for interest rate swaps and $7.9 million for investment properties. Please refer to the consolidated financial statements of the REIT and the notes thereto for additional information. |
(4) | FFO per Unit and AFFO per Unit – basic is calculated by dividing the total FFO and AFFO by the amount of the total weighted average number of outstanding Units. The total weighted average number of Units outstanding – basic for Q1 2026 was 55,100,799. |
(5) | FFO per Unit and AFFO per Unit – diluted is calculated by dividing the total FFO and AFFO by the amount of the total weighted average number of outstanding Units, DUs, IDUs, PDUs and RDUs granted to independent trustees and management of the REIT. The total weighted average number of Units outstanding (including Class B LP Units, DUs, IDUs, PDUs and RDUs) on a fully diluted basis for Q1 2026 was 56,591,756. |
(6) | Debt to GBV is a supplementary financial measure. See "Non-IFRS Financial Measures" at the end of this news release. |
Rental revenue in Q1 2026 increased by 21.7% to $29.1 million, compared to $23.9 million in Q1 2025. The increase in rental revenue reflected growth from properties acquired during and subsequent to Q1 2025 and contractual annual rent increases.
The REIT generated total Cash NOI of $23.8 million in Q1 2026, representing an increase of 19.0% compared to Q1 2025. The increase was primarily attributable to properties acquired during and subsequent to Q1 2025 and contractual rent increases. Same Property Cash NOI was $20.4 million in Q1 2026, representing an increase of 2.1% compared to Q1 2025. The increase was primarily attributable to contractual rent increases.
The REIT recorded net income and other comprehensive income of $25.3 million in Q1 2026, compared to $7.6 million in Q1 2025. The increase was primarily due to higher NOI and changes in non-cash fair value adjustments for investment properties and interest rate swaps, partially offset by higher interest costs and the change in non-cash fair value adjustment for Class B LP Units, DUs, IDUs, PDUs and RDUs (collectively, "Unit-based compensation") in Q1 2026 compared to Q1 2025. The impact of the movement in the traded value of the REIT Units resulted in a decrease in fair value adjustment for Class B LP Units and Unit-based compensation of $0.5 million in Q1 2026, compared to an increase of $0.8 million in Q1 2025.
FFO in Q1 2026 increased 20.4% to $15.2 million, or $0.268 per Unit (diluted), compared to $12.6 million, or $0.251 per Unit (diluted), in Q1 2025. The increase in FFO reflected the impact of the properties acquired during and subsequent to Q1 2025 and contractual rent increases.
AFFO in Q1 2026 increased 19.1% to $14.8 million, or $0.262 per Unit (diluted), compared to $12.4 million, or $0.247 per Unit (diluted), in Q1 2025. The increase in AFFO reflected the impact of the properties acquired during and subsequent to Q1 2025 and contractual rent increases. Straight-line rent adjustment is excluded from the calculation of AFFO.
Cash Distributions
For Q1 2026, the REIT declared regular cash distributions of $11.33 million, or $0.206 per Unit, and paid distributions of $11.32 million, representing an AFFO payout ratio of 78.6%. The AFFO payout ratio was lower in Q1 2026 compared to the 81.4% AFFO payout ratio in Q1 2025, primarily due to the positive impact of the properties acquired during and subsequent to Q1 2025 and contractual rent increases, partially offset by the 2.2% increase to the REIT's unitholder distributions that was effective for the cash distribution declared in August 2025 and paid in September 2025.
Liquidity and Capital Resources
As at March 31, 2026, the REIT had a Debt to GBV ratio of 46.3%, $69.0 million of undrawn capacity under its revolving credit facilities, $1.0 million of cash on hand, and 11 unencumbered properties with an aggregate value of approximately $152.9 million. As at the date of this news release, the REIT has a Debt to GBV ratio of 47.8%, approximately $32.5 million of undrawn capacity under its revolving credit facilities, and 13 unencumbered properties with an aggregate value of approximately $195.4 million.
As at March 31, 2026, 77% of the REIT's debt was fixed with a weighted average interest rate of 4.48%, a weighted average interest rate swap term and mortgages remaining of 4.2 years, and a weighted average term to maturity of debt of 2.8 years.
Units Outstanding
As at March 31, 2026, there were 54,311,229 REIT Units and 833,333 Class B LP Units outstanding.
Outlook
The REIT is subject to risks associated with inflation, interest rates, currency fluctuations and availability of capital. The REIT is actively monitoring the evolving trade tariff environment and other trade restrictions, and their impact on cross-border trade, material costs, and overall economic market conditions in Canada and the United States. The conflict in the Middle East has resulted in increased commodity prices and could lead to further significant market and other disruptions, including continued volatility in commodity prices and supply of energy resources. While the full extent and impact of these trade tariffs, trade restrictions and geopolitical events remains uncertain, the REIT is continuing to assess their potential effect on its business, property valuations and financial condition.
The Canadian and United States automotive and original equipment manufacturer dealership and service industry is highly fragmented, and the REIT expects continued consolidation over the mid to long term due to increased industry sophistication and growing capital requirements for owner operators, which encourages them to pursue increased economies of scale.
Financial Statements
The REIT's unaudited condensed consolidated financial statements and related Management's Discussion & Analysis ("MD&A") for Q1 2026 are available on the REIT's website at www.automotivepropertiesreit.ca and on SEDAR+ at www.sedarplus.ca.
Conference Call
Management of the REIT will host a conference call for analysts and investors on Thursday, May 14, 2026 at 9:00 a.m. (ET). To join the conference call without operator assistance, participants can register at https://registrations.events/easyconnect/5688210/recbgTrM4fb7maouR/ to receive an instant automated call back. Alternatively, they can dial (647) 932-3411 or (800) 715-9871 to reach a live operator who will join them into the call. A live and archived webcast of the call will be accessible via the REIT's website at www.automotivepropertiesreit.ca.
To access a replay of the conference call, dial (647) 362-9199 or (800) 770-2030, passcode: 5688210 #. The replay will be available until May 21, 2026.
About Automotive Properties REIT
Automotive Properties REIT is an unincorporated, open-ended real estate investment trust focused on owning and acquiring primarily income-producing automotive and other OEM dealership and service properties located in Canada and the United States. The REIT's portfolio currently consists of 95 income-producing commercial properties, representing approximately 3.5 million square feet of gross leasable area, in metropolitan markets across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Québec in Canada, and California, Florida and Ohio in the United States. Automotive Properties REIT is the only public vehicle in Canada focused on consolidating automotive and OEM dealership and service real estate properties. For more information, please visit: www.automotivepropertiesreit.ca.
This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects the REIT's current expectations regarding future events and in some cases can be identified by such terms as "will" and "expected". Forward-looking information includes the REIT's expectations with respect to the impact of changes in economic conditions, including changes in interest rates, currency fluctuation and the rate of inflation, and the impact of tariffs or other trade restrictions, including the impact of each of the foregoing on the REIT and its tenants. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risks & Uncertainties, Critical Judgments & Estimates" in the REIT's MD&A for the year ended December 31, 2025 and in the REIT's MD&A for the interim period ended March 31, 2026 and under "Risk Factors" in the REIT's annual information form dated March 4, 2026, which are available on SEDAR+ (www.sedarplus.ca) and the REIT's website (www.automotivepropertiesreit.ca). The REIT does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward-looking information speaks only as of the date of this news release.
Non-IFRS Financial Measures
This news release contains certain financial measures and ratios which are not defined under International Financial Reporting Standards ("IFRS") and may not be comparable to similar measures presented by other real estate investment trusts or enterprises. FFO, AFFO, FFO payout ratio, AFFO payout ratio, NOI, Cash NOI and Same Property Cash NOI are key measures of performance used by the REIT's management and real estate businesses. Debt to GBV, a supplementary financial measure, is a measure of financial position defined by agreements to which the REIT is a party. These measures, as well as any associated "per Unit" amounts, are not defined by IFRS and do not have standardized meanings prescribed by IFRS, and therefore should not be construed as alternatives to net income or cash flow from operating activities calculated in accordance with IFRS. The REIT believes that AFFO is an important measure of economic earnings performance and is indicative of the REIT's ability to pay distributions from earnings, while FFO, NOI, Cash NOI and Same Property Cash NOI are important measures of operating performance of real estate businesses and properties. The IFRS measurement most directly comparable to FFO, AFFO, NOI, Cash NOI and Same Property Cash NOI is net income. For reconciliations of NOI, FFO, AFFO and Cash NOI to net income and comprehensive income, please see the tables below. For further information regarding these non-IFRS measures and supplementary financial measures, please refer to Section 1 "General Information and Cautionary Statements – Non-IFRS Financial Measures" and Section 6 "Non-IFRS Financial Measures" in the REIT's Q1 2026 MD&A which is incorporated by reference herein and is available on the REIT's website at www.automotivepropertiesreit.ca and on SEDAR+ at www.sedarplus.ca.
Reconciliation of NOI, Cash NOI, FFO and AFFO
Three months ended March 31, |
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($000s, except per Unit amounts) | Q1 2026 | Q1 2025 | Variance |
Calculation of NOI |
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Property revenue | $29,096 | $23,902 | $5,194 |
Property costs | (4,896) | (3,691) | (1,205) |
NOI (including straight‑line adjustments) | $24,200 | $20,211 | $3,989 |
Adjustments: |
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Land lease payments | (99) | (99) | - |
Straight‑line adjustment | (271) | (94) | (177) |
Cash NOI | 23,830 | 20,018 | 3,812 |
Reconciliation of net income to FFO and AFFO |
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Net income | $24,423 | $7,695 | $16,728 |
Adjustments: |
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Change in fair value – Interest rate swaps and foreign exchange translation adjustment | (1,999) | 4,728 | (6,727) |
Distributions on Class B LP Units | 171 | - | 171 |
Change in fair value – Class B LP Units and Unit-based compensation | 539 | (763) | 1,302 |
Change in fair value – investment properties | (7,869) | 1,037 | (8,906) |
ROU asset net balance of depreciation/interest and lease payments | (70) | (75) | 5 |
FFO | $15,195 | $12,622 | $2,573 |
Adjustments: |
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Straight‑line adjustment | $(271) | $(94) | $(177) |
Capital expenditure reserve | (120) | (101) | (19) |
AFFO | $14,804 | $12,427 | $2,377 |
Number of Units outstanding (including Class B LP Units) | 55,144,562 | 49,117,113 | 6,027,449 |
Weighted average Units Outstanding — basic | 55,100,799 | 49,094,337 | 6,006,462 |
Weighted average Units Outstanding — diluted | 56,591,756 | 50,333,328 | 6,258,428 |
FFO per Unit – basic(1) | $0.276 | $0.257 | $0.019 |
FFO per Unit – diluted(2) | $0.268 | $0.251 | $0.017 |
AFFO per Unit – basic(1) | $0.269 | $0.253 | $0.016 |
AFFO per Unit – diluted(2) | $0.262 | $0.247 | $0.015 |
Distributions per Unit(3) | $0.206 | $0.201 | 0.005 |
FFO payout ratio(3) | 76.5 % | 80.1 % | 3.6 % |
AFFO payout ratio(3) | 78.6 % | 81.4 % | 2.8 % |
(1) | FFO and AFFO per Unit — basic is calculated by dividing the total FFO and AFFO by the amount of the total weighted-average number of outstanding REIT Units and Class B LP Units. |
(2) | FFO and AFFO per Unit — diluted is calculated by dividing the total FFO and AFFO by the amount of the total weighted-average number of outstanding REIT Units, Class B LP Units and Unit-based compensation granted to independent trustees and management of the REIT. |
(3) | Distributions per Unit, FFO payout ratio and AFFO payout ratio exclude the cash portion of a special distribution that was paid on January 6, 2025 to unitholders of record as at December 31, 2024. |
Same Property Cash Net Operating Income
Three months ended March 31, | 2026 | 2025 | Variance |
Same property base rental revenue | $20,537 | $20,123 | $414 |
Land lease payments | (99) | (99) | - |
Same Property Cash NOI | $20,438 | $20,024 | $414 |
SOURCE Automotive Properties Real Estate Investment Trust
View original content: http://www.newswire.ca/en/releases/archive/May2026/13/c7558.html
For more information please contact: Bruce Wigle, Investor Relations, Bay Street Communications, Tel: 647-496-7856; Milton Lamb, President & CEO, Automotive Properties REIT, Tel: (647) 789-2445; Andrew Kalra, CFO & Corporate Secretary, Automotive Properties REIT, Tel: (647) 789-2446