CT REIT Reports Strong Fourth Quarter 2025 Results

TORONTO, Feb. 17, 2026 /CNW/ - CT Real Estate Investment Trust ("CT REIT" or the "REIT") (TSX: CRT.UN) today reported its consolidated financial results for the fourth quarter and year ended December 31, 2025.

"The fourth quarter capped off an exceptional year for CT REIT as we added an additional 400,000 square feet of high-quality retail space to our portfolio and drove growth in AFFO per unit of 2.9%, on a diluted basis"¹ said Kevin Salsberg, President and Chief Executive Officer of CT REIT. "We continue to execute well against our development pipeline, supported by our strong balance sheet and disciplined investment approach. With our proven track record of delivering consistent growth in earnings, distributions and net asset value per unit, I'm proud of what our team accomplished in 2025 and confident in our ability to continue to deliver reliable, durable and growing results to our unitholders."

Update on Previously Announced Investments

CT REIT invested $116 million in previously disclosed projects that were completed in the fourth quarter of 2025, adding 400,500 square feet of incremental GLA to the portfolio as detailed in the table below.

Update on Full-Year 2025 Investment and Development Activity

In 2025, CT REIT invested approximately $235 million in completed projects and ongoing developments and grew the portfolio by approximately 893,000 square feet of GLA. As of December 31, 2025, CT REIT had 629,000 square feet of GLA under development, of which approximately 95.2% is subject to committed lease agreements. These developments represent an investment of approximately $329 million upon completion, of which $112 million has been spent to date.

Financial and Operational Summary

Financial Highlights

Net Income – Net income was $191.3 million for the quarter, an increase of $56.0 million, compared to the same period in the prior year, primarily due to increases in the fair value adjustment on investment properties, and higher revenues from the Property portfolio, partially offset by higher interest expense, property expense, and general and administrative expenses.

Net Operating Income (NOI)² – Total property revenue for the quarter was $152.9 million, which was $7.5 million or 5.1% higher compared to the same period in the prior year. In the fourth quarter, NOI was $121.2 million, which was $5.7 million or 4.9% higher compared to the same period in the prior year. This was primarily due to the acquisition, intensification and development of income-producing properties completed in 2024 and 2025, which added $4.5 million to NOI, and rent escalations from Canadian Tire leases, which contributed $1.4 million.

Same store NOI was $115.3 million and same property NOI was $116.9 million for the quarter, which were $1.1 million or 1.0%, and $2.3 million or 2.0%, respectively, higher when compared to the prior year. Same store NOI increased primarily due to contractual rent escalations and the recovery of capital expenditures. The increase in same property NOI was primarily due to the increase in same store NOI noted above, as well as from the intensifications completed in 2024 and 2025.

Funds from Operations (FFO)² – FFO for the quarter was $80.7 million, which was $1.7 million or 2.2% higher than the same period in 2024, primarily due to the impact of NOI increases noted above, partially offset by higher interest expense. FFO per unit - diluted (non-GAAP) for the quarter was $0.339, which was $0.005 or 1.5% higher, compared to the same period in 2024, due to the growth of FFO exceeding the growth in weighted average units outstanding - diluted (non-GAAP).

Adjusted Funds from Operations (AFFO)²– AFFO for the quarter was $75.6 million, which was $2.6 million or 3.6% higher than the same period in 2024, primarily due to the impact of NOI increases noted above, partially offset by higher interest expense. AFFO per unit - diluted (non-GAAP) for the quarter was $0.317, which was $0.009 or 2.9% higher, compared to the same period in 2024, due to the growth of AFFO exceeding the growth in weighted average units outstanding - diluted (non-GAAP).

Distributions – Distributions per Unit paid in the quarter amounted to $0.237, which was 2.5% higher than the same period in 2024 due to the increase in the rate of distributions that became effective with the monthly distributions paid in July 2025.

Operating Results

Leasing – CTC is CT REIT's most significant tenant. As at December 31, 2025, CTC represented 92.1% of total GLA and 90.7% of annualized base minimum rent. During 2025, renewals for 30 Canadian Tire store leases were completed.

Occupancy – As at December 31, 2025, CT REIT's portfolio occupancy rate, on a committed basis, was 99.5%.

Conference Call

CT REIT will conduct a conference call to discuss information included in this news release and related matters at 9:00 a.m. ET on February 18, 2026. The conference call will be available simultaneously and in its entirety to all interested investors and the news media through a webcast by visiting https://edge.media-server.com/mmc/p/is7qyriw/ or by visiting https://www.ctreit.com/English/news-and-events/events-and-webcasts/default.aspx and will be available through replay for 12 months.

Specified Financial Measures

In addition to disclosing results in accordance with International Financial Reporting Standards (IFRS) Accounting Standards, CT REIT also provides supplementary non-Generally Accepted Accounting Principles (GAAP) measures and ratios. References to GAAP mean IFRS Accounting Standards. CT REIT believes these non-GAAP financial measures and ratios, read together with our GAAP results, provide useful information to both management and investors in measuring the financial performance of CT REIT and its ability to meet its principal objective of creating unitholder value over the long term by generating reliable, durable and growing monthly cash distributions on a tax-efficient basis.

Non-GAAP financial measures and ratios do not have a standardized meaning under GAAP and are unlikely to be comparable to similar measures and ratios presented by other companies and should not be viewed in isolation from, or as a substitute for, GAAP results.

See below for further information on non-GAAP financial measures and ratios used by management in this document and, where applicable, for reconciliations to the nearest GAAP measures.

Net Operating Income (NOI)

NOI is a non-GAAP financial measure defined as property revenue less property expense, adjusted for straight-line rent. The most directly comparable primary financial statement measure is property revenue. Management believes that NOI is a useful key indicator of performance as it represents a measure of property operations over which management has control. NOI is also a key input in determining the fair value of the Property portfolio.

 The following table reconciles GAAP net income and comprehensive income to NOI:

Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)

Certain non-GAAP financial measures for the real estate industry have been defined by the Real Property Association of Canada under its publications, "REALPAC Funds From Operations & Adjusted Funds From Operations for IFRS" and "REALPAC Adjusted Cashflow from Operations for IFRS". CT REIT calculates Fund From Operations, Adjusted Funds From Operations and Adjusted Cashflow from Operations in accordance with these publications.

The following table reconciles GAAP net income and comprehensive income to FFO and further reconciles FFO to AFFO:

Funds From Operations (FFO)

FFO is a non-GAAP financial measure of operating performance used by the real estate industry, particularly by those publicly traded entities that own and operate income-producing properties. The most directly comparable primary financial statement measure is net income and comprehensive income. The use of FFO, together with the required IFRS Accounting Standards presentations, has been included for the purpose of improving the understanding of the operating results of CT REIT.

Management believes that FFO is a useful measure of operating performance that, when compared period-over-period, reflects the impact on operations of trends in occupancy levels, rental rates, operating costs and property taxes, acquisition activities and interest costs, and provides a perspective of the financial performance that is not immediately apparent from net income determined in accordance with IFRS Accounting Standards.

FFO adds back to net income items that do not arise from operating activities, such as fair value adjustments. FFO, however, still includes non-cash revenues related to accounting for straight-line rent and makes no deduction for the recurring capital expenditures necessary to sustain the existing earnings stream.

Adjusted Funds From Operations (AFFO)

AFFO is a non-GAAP financial measure of recurring economic earnings used in the real estate industry to assess an entity's distribution capacity. The most directly comparable primary financial statement measures are net income and comprehensive income.

CT REIT calculates AFFO by adjusting FFO for non-cash income and expense items such as amortization of straight-line rents. AFFO is also adjusted for a reserve for maintaining the productive capacity required for sustaining property infrastructure and revenue from real estate properties and direct leasing costs. As property capital expenditures do not occur evenly during the fiscal year or from year to year, the capital expenditure reserve in the AFFO calculation, which is used as an input in assessing the REIT's distribution payout ratio, is intended to reflect an average annual spending level. The reserve is primarily based on average expenditures as determined by building condition reports prepared by independent consultants.

Management believes that AFFO is a useful measure of operating performance similar to FFO as described above, adjusted for the impact of non-cash income and expense items.

Capital Expenditure Reserve

The following table compares and reconciles recoverable capital expenditures to the capital expenditure reserve for the year. The capital expenditure reserve is used in the calculation of AFFO.

The capital expenditure reserve is a non-GAAP financial measure and management believes the reserve is a useful and meaningful measure to understand the normalized capital expenditures required to maintain property infrastructure. Recoverable capital expenditures are the most directly comparable measure disclosed in the REIT's primary financial statements.

FFO and AFFO Unit Ratios

FFO per unit - basic, FFO per unit - diluted (non-GAAP), AFFO per unit - basic and AFFO per unit - diluted (non-GAAP) are non-GAAP ratios and reflect FFO and AFFO on a weighted average per unit basis. Management believes these non-GAAP ratios are useful measures to investors since the measures indicate the impact of FFO and AFFO, respectively, in relation to an individual per unit investment in the REIT. When calculating diluted per unit amounts, diluted units include restricted and deferred units issued under various plans and exclude the effects of settling the Class C LP Units with Class B LP Units.

Management believes that FFO per unit ratios are useful measures of operating performance that, when compared period-over-period, reflect the impact on operations of trends in occupancy levels, rental rates, operating costs and property taxes, acquisition activities and interest costs, and provides a perspective of the financial performance that is not immediately apparent from net income per unit determined in accordance with IFRS Accounting Standards. Management believes that AFFO per unit ratios are useful measures of operating performance similar to FFO as described above, adjusted for the impact of non-cash income and expense items.  The component of the FFO per unit ratios, which is a non-GAAP financial measure, is FFO, and the component of AFFO per unit ratios, which is a non-GAAP financial measure, is AFFO.

Management calculates the weighted average units outstanding - diluted (non-GAAP) by excluding the full conversion of the Class C LP Units to Class B LP Units, which is not considered a likely scenario. As such, the REIT's fully diluted per unit FFO and AFFO amounts are calculated, excluding the effects of settling the Class C LP Units with Class B LP Units, which management considers a more meaningful measure.

AFFO Payout Ratio

The AFFO payout ratio is a non-GAAP ratio which measures the sustainability of the REIT's distribution payout. Management believes this is a useful measure to investors since this metric provides transparency on performance. Management considers the AFFO payout ratio to be the best measure of the REIT's distribution capacity.  The component of the AFFO payout ratio, which is a non-GAAP ratio, is AFFO, and the composition of the AFFO payout ratio is as follows:

Same Store NOI

Same store NOI is a non-GAAP financial measure which reports the period-over-period performance of the same asset base having consistent GLA in both periods. CT REIT management believes same store NOI is a useful measure to gauge the change in asset productivity and asset value. The most directly comparable primary financial statement measure is property revenue.

Same Property NOI

Same property NOI is a non-GAAP financial measure that is consistent with the definition of same store NOI above, except that same property includes the NOI impact of intensifications. Management believes same property NOI is a useful measure to gauge the change in asset productivity and asset value, as well as measure the additional return earned by incremental capital investments in existing assets. The most directly comparable primary financial statement measure is property revenue.

The following table summarizes the same store and same property components of NOI:

Management's Discussion and Analysis (MD&A) and audited Consolidated Financial Statements and Notes

Information in this press release is a select summary of results. This press release should be read in conjunction with CT REIT's MD&A for the year ended December 31, 2025 (Q4 2025 MD&A) and audited Consolidated Financial Statements and Notes for the year ended December 31, 2025, which are both available on SEDAR+ at sedarplus.ca and at ctreit.com.

Note: Unless otherwise indicated, all figures in this press release are as at December 31, 2025, and are presented in Canadian dollars.

Forward-Looking Statements

This press release contains statements and other information that constitute "forward-looking information" or "forward-looking statements" under applicable securities legislation (collectively, "forward-looking statements") that reflect management's current expectations relating to matters such as future financial performance and operating results. Forward-looking statements provide information about management's current beliefs, expectations and plans and allow investors and others to better understand the REIT's anticipated financial condition, results of operations, business strategy and financial needs. Readers are cautioned that such information may not be appropriate for other purposes.

All statements, other than statements of historical fact, included in this document that address activities, events or developments that CT REIT or a third-party expects or anticipates will or may occur in the future, including the REIT's future growth, financial condition, financial needs, results of operations, performance, business strategy, business prospects and opportunities and the assumptions underlying any of the foregoing, are forward-looking statements. Without limiting the foregoing, the REIT's ability to complete the investments, the timing and terms of any such investments and the benefits expected to result from such investments, are forward-looking statements.

By its very nature, forward-looking information requires the use of estimates and assumptions and is subject to inherent risks and uncertainties. It is possible that the REIT's assumptions, estimates, analyses, beliefs, and opinions are not correct, and that the REIT's expectations and plans will not be achieved. Although the forward-looking statements contained in this press release reflect management's current beliefs and are based on information currently available to CT REIT and on assumptions CT REIT believes are reasonable about future events and financial trends that management believes may affect the REIT's financial condition, results of operations, business strategy and financial needs, such information is necessarily subject to a number of factors that could cause actual results to differ materially from management's expectations and plans as set forth in such forward-looking statements.

For more information on the risks, uncertainties, factors and assumptions that could cause the REIT's actual results to differ from current expectations, refer to section 5 "Risk Factors" of CT REIT's Annual Information Form for fiscal 2025, and to sections 12.0 "Enterprise Risk Management" and 14.0 "Forward-looking Information" of CT REIT's MD&A for fiscal 2025, as well as the REIT's other public filings, all of which are available at sedarplus.ca and at ctreit.com.

The forward-looking statements contained herein are based on certain factors and assumptions as of the date hereof and do not take into account the effect that transactions or non-recurring or other special items announced or occurring after the statements are made can have on the REIT's business. CT REIT does not undertake to update any forward-looking statements, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, except as required by applicable securities laws.

Information contained in or otherwise accessible through the websites referenced in this press release does not form part of this press release and is not incorporated by reference into this press release. All references to such websites are inactive textual references and are for information only.

Additional information about CT REIT has been filed electronically with various securities regulators in Canada through SEDAR+ and is available at sedarplus.ca and at ctreit.com.

About CT Real Estate Investment Trust

CT REIT is an unincorporated, closed-end real estate investment trust formed to own income-producing commercial properties located primarily in Canada. Its portfolio is comprised of over 375 properties totalling 31.7 million square feet of GLA, consisting primarily of net lease single-tenant retail properties across Canada. Canadian Tire Corporation, Limited, is CT REIT's most significant tenant. For more information, visitctreit.com.

For Further Information: 

Media: Canadian Tire Media Hotline, 416-480-8453, mediainquiries@cantire.com
Investors: Lesley Gibson, 416-480-8566, lesley.gibson@ctreit.com

SOURCE CT Real Estate Investment Trust (CT REIT)

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