CT Real Estate Investment Trust reported Tuesday its consolidated financial results for the second quarter ending June 30 and announced two new investments of $66 million.
“We are pleased to report another strong quarter of growth for CT REIT. In a busy Q2, we expanded our portfolio with two new investments totaling over 250,000 square feet and renewed 10 Canadian Tire store leases,” said Kevin Salsberg, President and Chief Executive Officer, CT REIT.
“We also continue to advance our Environmental, Social and Governance (ESG) priorities and are proud to have recently published our fourth annual ESG report that highlights our approach, progress and achievements.
“Additionally, with the recent announcement of the significant retrofit that will be undertaken at our Canada Square property in midtown Toronto, anchored by a new 20-year office lease with Canadian Tire Corporation, and the successful completion of our $200 million Series J unsecured debenture issuance, we continue to improve the quality of our portfolio and successfully execute our core strategy.”
New Investment Activity
CT REIT announced two new investments which will require an estimated $66 million to complete. The investments are, in aggregate, expected to earn a going-in yield of 7.55% and represent approximately 252,000 square feet of incremental gross leasable area.
The table below summarizes the new investments and their anticipated completion dates:
| Property | Type | GLA (sf.) | Timing | Activity |
| Calgary (Northpointe at Country Hills), AB | Third Party Acquisition | 201,000 | Q3 2025 | Third party acquisition of a Canadian Tire anchored property |
| Saskatoon East, SK | Intensification | 51,000 | Q4 2026 | Expansion of a Canadian Tire store |
CT REIT invested $45 million in previously disclosed projects that were completed in the second quarter of 2025, adding 142,000 square feet of incremental GLA to the portfolio as detailed in the table below.
| Property | Type | GLA (sf.) | Timing | Activity |
| Peterborough, ON | Intensification | 32,000 | Q2 2025 | Expansion of a Canadian Tire store |
| Kingston, ON | Land Lease / Development | 110,000 | Q2 2025 | Development of a new Canadian Tire store |
Financial Highlights
Net Income – Net income was $103.0 million for the quarter was in line with the same period in the prior year.
Net Operating Income (NOI) – Total property revenue for the quarter was $149.8 million, which was $5.3 million or 3.7% higher compared to the same period in the prior year. In the second quarter, NOI was $118.9 million, which was $4.0 million or 3.4% 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 $3.1 million, and rent escalations from Canadian Tire leases, which contributed $1.7 million.
Same store NOI was $115.0 million and same property NOI was $115.8 million for the quarter, which were $1.8 million or 1.6%, and $2.5 million or 2.2%, respectively, higher when compared to the prior year. Same store NOI increased primarily due to the increased revenue derived from contractual rent escalations. Same property NOI increased primarily due to the increase in same store NOI noted, as well as from the intensifications completed in 2024 and 2025.
Funds from Operations (FFO) – FFO for the quarter was $81.2 million, which was $1.8 million or 2.3% higher than the same period in 2024, primarily due to the impact of NOI variances discussed earlier, partially offset by higher interest expense and lease surrender revenue earned in Q2 2024. FFO per unit – diluted (non-GAAP) for the quarter was $0.342, 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) – AFFO for the quarter was $76.1 million, which was $1.8 million or 2.4% higher than the same period in 2024, primarily due to the impact of NOI variances discussed earlier, partially offset by higher interest expense and lease surrender revenue earned in Q2 2024. AFFO per unit – diluted (non-GAAP) for the quarter was $0.320, which was $0.005 or 1.6% 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 $0.231, which was 3.0% higher than the same period in 2024 due to an increase in the rate of distributions which became effective with the monthly distributions paid in July 2024.
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 more than 31 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.
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