Choice Properties Real Estate Investment Trust announced Wednesday its consolidated financial results for the three and six months ended June 30, 2026, reporting a net loss of $176.4 million compared to a net loss of $154.2 million last year.
The loss in both periods was primarily due to the fair value adjustment related to the Trust’s Exchangeable Units resulting from the increase in the Trust’s unit price, it said.
“We are focused on capital preservation, delivering stable and growing cash flows and net asset value appreciation. Our high-quality portfolio is primarily leased to necessity-based tenants and logistics providers, who are less sensitive to economic volatility and therefore provide stability to our overall portfolio. We will continue to advance our development program, with a focus on commercial developments, which provides us with the best opportunity to add high-quality real estate to our portfolio at a reasonable cost and drive net asset value appreciation over time,” said the company in a news release.
“We are confident that our business model, stable tenant base, strong balance sheet, and disciplined approach to financial management will continue to benefit us.”
On its website, the REIT said it had 699 properties, more than 18 million square feet in the development pipeline, 37 million square feet of grocery-anchored retail in the portfolio, and it had an industry-leading balance sheet with 7.0x Debt/EBITDA.
“We are pleased with Choice Properties’ second quarter results, highlighted by robust leasing spreads and Same-Asset NOI growth,” said Rael Diamond, President and Chief Executive Officer of the Trust. “These results reflect the strength of our portfolio and the disciplined execution of our strategy. We continue to unlock value through strategic leasing initiatives across our necessity-based retail portfolio, while capitalizing on tenant demand to drive rental rate growth in our industrial portfolio.”
Second Quarter Highlights:
- Reported FFO per unit diluted of $0.267, representing year-over-year growth of 0.8%;
- FFO per unit diluted, excluding lease surrender revenue and the reduction in Allied Properties REIT’s (“Allied”) distribution, increased by 1.5% compared to the prior year period;
- Achieved Same-Asset NOI, Cash Basis growth of 2.8% and Total NOI, Cash Basis growth of 2.8%;
- Achieved long term renewal leasing spreads of 19.0%;
- Period end occupancy was 97.7%, with Retail at 97.4%, Industrial at 98.6%, and Mixed-Use & Residential at 94.3%;
- Completed $14.6 million of real estate transactions on a proportionate share basis;
- Delivered $3.0 million of development projects through retail intensification, adding approximately 66,000 square feet of new commercial GLA associated with ground leases on a proportionate share basis; Subsequent to the quarter end, Choice Properties and Loblaw renewed a full tranche of 50 leases expiring in 2027, comprising 3.55 million square feet, at a weighted average spread of 8.8% and a weighted average extension term of 5.0 years.
“On April 16, the Trust announced that it entered into an agreement with First Capital Real Estate Investment Trust and KingSett Capital, on behalf of its investors, pursuant to which KingSett and the Trust will acquire FCR in a unit and cash transaction valued at approximately
$9.4 billion, including the assumption of certain debt,” said the company in a news release, adding that the transaction was approved June 23 by FCR’s unitholders.
And on June 25, the Ontario Superior Court of Justice (Commercial List) issued a final order approving the transaction’s plan of arrangement pursuant to the arrangement agreement dated April 16. The Transaction is subject to other regulatory and customary approvals and closing conditions, and is expected to close in the second half of 2026.
More from Retail Insider:
