New Glasgow, Nova Scotia--(Newsfile Corp. - February 10, 2026) - Crombie Real Estate Investment Trust (TSX: CRR.UN) ("Crombie") today announced results for its fourth quarter and year ended December 31, 2025. Management will host a conference call to discuss the results at 10:00 a.m. (EST), February 11, 2026.
"All pillars of our Building Together strategy combined to deliver a standout 2025. Disciplined execution across the platform produced record committed occupancy of 97.7%, robust commercial same-asset property cash NOI growth of 3.7%, and FFO(1) per unit and AFFO(1) per unit growth of 4.8% and 6.5% for the year," said Mark Holly, President and CEO.
"Prudent financial management continued to strengthen our balance sheet, earning us a credit rating upgrade from BBB (low) to BBB and enabling a $0.01 per unit increase to our annual distribution. We also established programmatic partnerships in Halifax and Vancouver that contribute management and development fees while preserving balance sheet flexibility. Looking ahead to 2026, we will continue executing against our Building Together strategy: owning and operating essential real estate at the heart of Canadian communities, deploying capital with discipline, and growing cash flow while compounding long-term value for Unitholders."
FOURTH 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 three months and year ended December 31, 2025 and Consolidated Financial Statements and Notes for the years ended December 31, 2025, and December 31, 2024. Full details on our results can be found at www.crombie.ca and www.sedarplus.ca.
Operational Highlights
- Committed occupancy of 97.7% and economic occupancy of 97.4%; a 90 basis point increase on both measures, compared to the fourth quarter of 2024
- Renewals of 239,000 square feet at rents 10.0% above expiring rental rates
- An increase of 12.1% for the three months ended December 31, 2025 using the weighted average rental rate during the renewal term
- Acquired one grocery-anchored retail property in Etobicoke, Ontario, representing 51,000 square feet, for total purchase price of $28,472
- Invested $13,984 in modernizations during the quarter
(1) 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 FFO, AFFO, commercial same-asset property cash NOI, debt to gross fair value, and debt to trailing 12 months adjusted EBITDA.
Financial Highlights
|
| Three months ended December 31, |
|
| 2025 |
|
| 2024 |
|
| Variance |
|
| % |
|
| Property revenue | $ | 122,118 |
| $ | 121,595 |
| $ | 523 |
|
| 0.4 % |
|
| Revenue from management and development services | $ | 2,549 |
| $ | 1,397 |
| $ | 1,152 |
|
| 82.5 % |
|
| Operating income attributable to Unitholders | $ | 25,235 |
| $ | 76,143 |
| $ | (50,908 | ) |
| (66.9) % |
|
| Funds from operations ("FFO") (1) per Unit - basic and diluted | $ | 0.33 |
| $ | 0.32 |
| $ | 0.01 |
|
| 3.1 % |
|
| Adjusted funds from operations ("AFFO") (1) per Unit - basic and diluted | $ | 0.29 |
| $ | 0.28 |
| $ | 0.01 |
|
| 3.6 % |
|
| Commercial same-asset property cash ("NOI") (1) | $ | 84,329 |
| $ | 81,031 |
| $ | 3,298 |
|
| 4.1 % |
|
| Available Liquidity | $ | 669,229 |
| $ | 682,218 |
| $ | (12,989 | ) |
| (1.9) % |
|
| Debt to gross fair value (1) (2) |
| 42.1 % |
|
| 43.6 % |
|
| |
|
| (1.5) % |
|
| Debt to trailing 12 months adjusted EBITDA (1) (2) |
| 7.69x |
|
| 7.96x |
|
| -0.27x |
|
| (3.4) % |
|
(1) 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 FFO, AFFO, commercial same-asset property cash NOI, debt to gross fair value, and debt to trailing 12 months adjusted EBITDA.
(2) At Crombie's proportionate share including joint ventures.
Operational Metrics
|
| December 31, 2025 |
|
| December 31, 2024 |
|
| Number of investment properties (1) |
| 298 |
|
| 295 |
|
| Gross leasable area (2) |
| 18,255,000 |
|
| 18,433,000 |
|
| Economic occupancy (3) |
| 97.4 % |
|
| 96.5 % |
|
| Committed occupancy (4) |
| 97.7 % |
|
| 96.8 % |
|
| Total properties inclusive of joint ventures and residential property (5) |
| 308 |
|
| 304 |
|
| Gross leasable area inclusive of joint ventures and residential property |
| 18,872,000 |
|
| 19,050,000 |
|
(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 97.7% included 59,000 square feet of space committed at December 31, 2025. VECTOM and Major Markets represent 28,000 square feet of committed space. The increase in committed occupancy compared to September 30, 2025 was due to new leasing activity.
New commercial leases increased occupancy by 259,000 square feet at December 31, 2025, at an average first-year rate of $16.67 per square foot.
Renewal activity for the fourth quarter of 2025 consisted of 239,000 square feet with an increase of 10.0% over expiring rental rates. The primary driver of renewal growth in the quarter was 239,000 square feet of retail renewals.
When comparing the expiring rental rates to the weighted average rental rate for the renewal term, Crombie achieved an increase of 12.1% for the three months ended December 31, 2025.
Financial Metrics
|
| Three months ended December 31, |
|
| |
|
| Year ended December 31, |
|
|
|
|
|
| 2025 |
|
| 2024 |
|
| Variance |
| % | |
|
| 2025 |
|
| 2024 |
|
| Variance |
|
| % |
|
| Net property income (1) | $ | 78,828 |
| $ | 78,150 |
| $ | 678 |
| 0.9 % | |
| $ | 316,789 |
| $ | 301,685 |
| $ | 15,104 |
|
| 5.0 % |
|
| Operating income attributable to Unitholders | $ | 25,235 |
| $ | 76,143 |
| $ | (50,908 | ) | (66.9) % | |
| $ | 116,479 |
| $ | 158,265 |
| $ | (41,786 | ) |
| (26.4) % |
|
| Commercial same-asset property cash NOI (1) | $ | 84,329 |
| $ | 81,031 |
| $ | 3,298 |
| 4.1 % | |
| $ | 329,872 |
| $ | 318,173 |
| $ | 11,699 |
|
| 3.7 % |
|
| FFO (1) | $ | 60,614 |
| $ | 58,131 |
| $ | 2,483 |
| 4.3 % | |
| $ | 240,126 |
| $ | 227,049 |
| $ | 13,077 |
|
| 5.8 % |
|
| Per Unit - Basic and diluted | $ | 0.33 |
| $ | 0.32 |
| $ | 0.01 |
| 3.1 % | |
| $ | 1.30 |
| $ | 1.24 |
| $ | 0.06 |
|
| 4.8 % |
|
| Payout ratio (1) |
| 69.2 % |
|
| 70.3 % |
|
| |
| (1.1) % | |
|
| 69.1 % |
|
| 71.6 % |
|
| |
|
| (2.5) % |
|
| AFFO (1) | $ | 53,663 |
| $ | 51,298 |
| $ | 2,365 |
| 4.6 % | |
| $ | 212,366 |
| $ | 197,304 |
| $ | 15,062 |
|
| 7.6 % |
|
| Per Unit - Basic and diluted | $ | 0.29 |
| $ | 0.28 |
| $ | 0.01 |
| 3.6 % | |
| $ | 1.15 |
| $ | 1.08 |
| $ | 0.07 |
|
| 6.5 % |
|
| Payout ratio (1) |
| 78.2 % |
|
| 79.7 % |
|
| |
| (1.5) % | |
|
| 78.1 % |
|
| 82.4 % |
|
| |
|
| (4.3) % |
|
(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, commercial same-asset property cash NOI, FFO, FFO payout ratio, AFFO, and AFFO payout ratio.
Fourth Quarter and Year-End 2025 Results
Operating income attributable to Unitholders
The decrease in operating income in the fourth quarter of 2025 was primarily due to a gain on the acquisition of the remaining 50% interest in the Davie Street residential property in the fourth quarter of 2024, higher tenant incentive amortization from modernizations, higher depreciation and amortization primarily due to accelerated depreciation on properties scheduled for redevelopment, and higher general and administrative expenses primarily due to increased Unit-based compensation costs driven by a higher Unit price. The decrease in operating income was offset in part by growth in property revenue from renewals and new leasing, lower net impairments of investment properties compared to the same period in 2024, and an increase in development fees from newly formed joint ventures.
In addition to the items discussed above for the quarter, the annual decrease was further driven by decreased property revenue from dispositions and an increase in interest expense from the 2024 net issuance of senior unsecured notes. This was partially offset by higher net property income from the acquisition of the remaining 50% interest in the Davie Street residential property in the fourth quarter of 2024, year-over-year growth in property revenue from supplemental rent from modernization investments, lease terminations, and recently completed developments. Further offsetting the decrease was recognition of deferred revenue related to development management services provided to a third party, higher gain on disposal of investment properties, and increased gain on derecognition of a right-of-use asset compared to the prior year.
Commercial same-asset property cash NOI
The increase in commercial same-asset property cash NOI for the quarter was primarily due to renewals, contractual rent step-ups, and new leasing.
The annual 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 in the quarter was primarily due to property revenue growth as discussed above, and increased revenue from management and development services. This was offset in part by higher general and administrative expenses primarily due to increased Unit-based compensation costs driven by higher Unit price.
In addition to the items discussed above for the quarter, the annual increase was further driven by higher net property income from the acquisition of the remaining 50% interest in the Davie Street residential property in the fourth quarter of 2024, increased supplemental rent from modernization investments, lease termination income from disposed properties, and property revenue growth from recently completed developments. This was partially offset by decreased property revenue from dispositions and an increase in general and administrative expenses related to filling vacant roles and increased Unit-based compensation costs primarily driven by higher Unit price, and an increase in interest expense from the 2024 net issuance of senior unsecured notes.
AFFO
The increase in AFFO was primarily due to the same factors impacting FFO for both the quarter and on an annual basis.
Financial Condition Metrics
|
| December 31, 2025 |
|
| December 31, 2024 |
|
| Fair value of unencumbered investment properties | $ | 3,911,000 |
| $ | 3,662,000 |
|
| Available liquidity (1) | $ | 669,229 |
| $ | 682,218 |
|
| Debt to gross book value - cost basis (2) |
| 45.5 % |
|
| 45.7 % |
|
| Debt to gross fair value (3) (4) |
| 42.1 % |
|
| 43.6 % |
|
| Weighted average interest rate |
| 4.1 % |
|
| 4.1 % |
|
| Debt to trailing 12 months adjusted EBITDA (3) (4) |
| 7.69x |
|
| 7.96x |
|
| Interest coverage ratio (3) (4) (5) |
| 3.39x |
|
| 3.31x |
|
(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 "Cautionary Statements and Non-GAAP Measures" 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 December 31, 2025 and December 31, 2024.
Portfolio Optimization
Our development program is divided into major development projects with a total estimated cost greater than $50,000, and non-major development projects with a total estimate cost below $50,000.
Major Development
Crombie currently has one active major development, held within a joint venture, The Marlstone, a 291-unit residential rental project in Halifax, Nova Scotia, under construction. Demolition and existing building upgrades have occurred and construction continues to progress. Pre-leasing began in October 2025 and completion is expected in the second quarter of 2026.
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.
In the fourth quarter of 2025, Crombie invested $13,984 in its modernization program.
The table below summarizes active non-major developments within Crombie's portfolio at December 31, 2025.
|
|
|
|
|
|
|
| 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 |
| 1 |
|
| 26,000 |
| $ | 10,700 |
| $ | 8,883 |
|
| Modernizations (1) |
| 61 |
|
| - |
|
| 38,002 |
|
| - |
|
| Total non-major developments |
| 62 |
|
| 26,000 |
| $ | 48,702 |
| $ | 8,883 |
|
(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 months and year ended December 31, 2025 was $13,984 and $38,002, respectively (three months and year ended December 31, 2024 - $7,067 and $38,223, respectively).
(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.
Highlighted Subsequent Events
Acquisition Activity
On February 10, 2026, Crombie entered into a binding agreement to acquire a 100% interest in a retail support centre industrial property from Empire totalling 484,000 square feet for $115,400, excluding closing and transaction costs. This acquisition is scheduled to close in February 2026.
Conference Call and Webcast
Crombie will provide additional details regarding its fourth quarter and year ended December 31, 2025 results on a conference call to be held Wednesday, February 11, 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 this conference call, you may dial (412) 717-9224 or (844) 763-8274. To join the conference call without operator assistance, you may register and enter your details at https://registrations.events/easyconnect/3377788/recpoH9ccxztPd8Qe/ 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.
Replay will be available until midnight February 18, 2026 by dialing (855) 669-9658 and entering passcode 6450280#, or on the Crombie website for 90 days following the conference call.
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, 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 months and year ended December 31, 2025.
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 December 31, |
| |
| Year ended December 31, |
|
|
| 2025 |
|
| 2024 |
|
| Variance |
| |
| 2025 |
|
| 2024 |
|
| Variance |
|
| Property revenue | $ | 122,118 |
| $ | 121,595 |
| $ | 523 |
| | $ | 488,711 |
| $ | 471,025 |
| $ | 17,686 |
|
| Property operating expenses |
| (43,290 | ) |
| (43,445 | ) |
| 155 |
| |
| (171,922 | ) |
| (169,340 | ) |
| (2,582 | ) |
| Net property income | $ | 78,828 |
| $ | 78,150 |
| $ | 678 |
| | $ | 316,789 |
| $ | 301,685 |
| $ | 15,104 |
|
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 December 31, |
| |
| Year ended December 31, |
|
|
| 2025 |
|
| 2024 |
|
| Variance |
| |
| 2025 |
|
| 2024 |
|
| Variance |
|
| Net property income | $ | 78,828 |
| $ | 78,150 |
| $ | 678 |
| | $ | 316,789 |
| $ | 301,685 |
| $ | 15,104 |
|
| Non-cash straight-line rent |
| (939 | ) |
| (872 | ) |
| (67 | ) | |
| (3,784 | ) |
| (5,035 | ) |
| 1,251 |
|
| Non-cash tenant incentive amortization (1) |
| 9,352 |
|
| 7,725 |
|
| 1,627 |
| |
| 32,945 |
|
| 29,227 |
|
| 3,718 |
|
| Property cash NOI |
| 87,241 |
|
| 85,003 |
|
| 2,238 |
| |
| 345,950 |
|
| 325,877 |
|
| 20,073 |
|
| Acquisitions and dispositions property cash NOI |
| 576 |
|
| 292 |
|
| 284 |
| |
| 11,575 |
|
| 968 |
|
| 10,607 |
|
| Development property cash NOI |
| 262 |
|
| 1,097 |
|
| (835 | ) | |
| 2,429 |
|
| 4,153 |
|
| (1,724 | ) |
| Acquisitions, dispositions, and development property cash NOI |
| 838 |
|
| 1,389 |
|
| (551 | ) | |
| 14,004 |
|
| 5,121 |
|
| 8,883 |
|
| Same-asset property cash NOI | $ | 86,403 |
| $ | 83,614 |
| $ | 2,789 |
| | $ | 331,946 |
| $ | 320,756 |
| $ | 11,190 |
|
|
| |
|
| |
|
| |
| |
| |
|
| |
|
| |
|
| Commercial same-asset property cash NOI(*) | $ | 84,329 |
| $ | 81,031 |
| $ | 3,298 |
| | $ | 329,872 |
| $ | 318,173 |
| $ | 11,699 |
|
| Residential same-asset property cash NOI(*) (2) |
| 2,074 |
|
| 2,583 |
|
| (509 | ) | |
| 2,074 |
|
| 2,583 |
|
| (509 | ) |
| Same-asset property cash NOI(*) | $ | 86,403 |
| $ | 83,614 |
| $ | 2,789 |
| | $ | 331,946 |
| $ | 320,756 |
| $ | 11,190 |
|
(1) Refer to "Amortization of Tenant Incentives" in the Management's Discussion and Analysis for a breakdown of tenant incentive amortization.
(2) Residential includes 100% owned residential property.
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 months and year ended December 31, 2025 and 2024 is as follows:
|
| Three months ended December 31, |
| |
| Year ended December 31, |
|
|
| 2025 |
|
| 2024 |
|
| Variance |
| |
| 2025 |
|
| 2024 |
|
| Variance |
|
| Decrease in net assets attributable to Unitholders | $ | (16,543 | ) | $ | 37,845 |
| $ | (54,388 | ) | | $ | (51,874 | ) | $ | (4,052 | ) | $ | (47,822 | ) |
| Add (deduct): |
| |
|
| |
|
| |
| |
| |
|
| |
|
| |
|
| Amortization of tenant incentives |
| 9,352 |
|
| 7,725 |
|
| 1,627 |
| |
| 32,945 |
|
| 29,227 |
|
| 3,718 |
|
| Net (gain) loss on disposal of investment properties |
| - |
|
| 996 |
|
| (996 | ) | |
| (3,089 | ) |
| (1,167 | ) |
| (1,922 | ) |
| Gain on acquisition of control of joint venture |
| - |
|
| (51,794 | ) |
| 51,794 |
| |
| - |
|
| (51,794 | ) |
| 51,794 |
|
| Gain on derecognition of right-of-use-asset |
| - |
|
| (405 | ) |
| 405 |
| |
| (1,770 | ) |
| (405 | ) |
| (1,365 | ) |
| Impairment of investment properties |
| 8,400 |
|
| 3,100 |
|
| 5,300 |
| |
| 8,400 |
|
| 5,100 |
|
| 3,300 |
|
| Reversal of impairment of investment properties |
| (6,680 | ) |
| - |
|
| (6,680 | ) | |
| (6,680 | ) |
| - |
|
| (6,680 | ) |
| Depreciation and amortization of investment properties |
| 22,621 |
|
| 20,826 |
|
| 1,795 |
| |
| 87,219 |
|
| 80,054 |
|
| 7,165 |
|
| Adjustments for equity-accounted investments |
| 882 |
|
| 841 |
|
| 41 |
| |
| 3,481 |
|
| 4,548 |
|
| (1,067 | ) |
| Principal payments on right-of-use assets |
| 65 |
|
| 62 |
|
| 3 |
| |
| 214 |
|
| 242 |
|
| (28 | ) |
| Internal leasing costs |
| 739 |
|
| 637 |
|
| 102 |
| |
| 2,927 |
|
| 2,979 |
|
| (52 | ) |
| Distributions to Unitholders |
| 41,975 |
|
| 40,889 |
|
| 1,086 |
| |
| 165,901 |
|
| 162,587 |
|
| 3,314 |
|
| Change in fair value of financial instruments (1) |
| (197 | ) |
| (2,591 | ) |
| 2,394 |
| |
| 2,452 |
|
| (270 | ) |
| 2,722 |
|
| FFO | $ | 60,614 |
| $ | 58,131 |
| $ | 2,483 |
| | $ | 240,126 |
| $ | 227,049 |
| $ | 13,077 |
|
| Weighted average Units - basic and diluted (in 000's) |
| 186,458 |
|
| 183,657 |
|
| 2,801 |
| |
| 185,431 |
|
| 182,567 |
|
| 2,864 |
|
| FFO per Unit - basic and diluted | $ | 0.33 |
| $ | 0.32 |
| $ | 0.01 |
| | $ | 1.30 |
| $ | 1.24 |
| $ | 0.06 |
|
| FFO payout ratio (%) |
| 69.2 % |
|
| 70.3 % |
|
| (1.1) % |
| |
| 69.1 % |
|
| 71.6 % |
|
| (2.5) % |
|
(1) Includes the fair value changes of Crombie's deferred unit plan and fair value changes of financial instruments which do not qualify for hedge accounting.
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 months and year ended December 31, 2025 and 2024 is as follows:
| | Three months ended December 31, | | | | Year ended December 31, | |
| | 2025 | | | 2024 | | | Variance | | | | 2025 | | | 2024 | | | Variance | |
| FFO | $ | 60,614 | | $ | 58,131 | | $ | 2,483 | | | $ | 240,126 | | $ | 227,049 | | $ | 13,077 | |
| Add (deduct): | | | | | | | | | | | | | | | | | | | |
| Straight-line rent adjustment | | (939 | ) | | (872 | ) | | (67 | ) | | | (3,784 | ) | | (5,035 | ) | | 1,251 | |
| Straight-line rent adjustment included in loss from equity-accounted investments | | (13 | ) | | (2 | ) | | (11 | ) | | | (34 | ) | | 153 | | | (187 | ) |
| Internal leasing costs | | (739 | ) | | (637 | ) | | (102 | ) | | | (2,927 | ) | | (2,979 | ) | | 52 | |
| Maintenance expenditures on a square footage basis | | (5,260 | ) | | (5,322 | ) | | 62 | | | | (21,015 | ) | | (21,884 | ) | | 869 | |
| AFFO | $ | 53,663 | | $ | 51,298 | | $ | 2,365 | | | $ | 212,366 | | $ | 197,304 | | $ | 15,062 | |
| Weighted average Units - basic and diluted (in 000's) | | 186,458 | | | 183,657 | | | 2,801 | | | | 185,431 | | | 182,567 | | | 2,864 | |
| AFFO per Unit - basic and diluted | $ | 0.29 | | $ | 0.28 | | $ | 0.01 | | | $ | 1.15 | | $ | 1.08 | | $ | 0.07 | |
| AFFO payout ratio (%) | | 78.2 % | | | 79.7 % | | | (1.5) % | | | | 78.1 % | | | 82.4 % | | | (4.3) % | |
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 December 31, 2025 and December 31, 2024, 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.
| | December 31, 2025 | | | December 31, 2024 | |
| Fixed rate mortgages | $ | 807,091 | | $ | 827,930 | |
| Senior unsecured notes | | 1,500,000 | | | 1,500,000 | |
| Unsecured non-revolving credit facility | | 50,000 | | | 50,000 | |
| Construction financing facility | | - | | | 13,447 | |
| Joint operation credit facility | | 3,623 | | | 3,520 | |
| Unsecured bilateral credit facility | | 10,000 | | | - | |
| Debt held in joint ventures, at Crombie's share (1) (2) | | 244,495 | | | 185,991 | |
| Lease liabilities | | 31,129 | | | 33,937 | |
| Adjusted debt | $ | 2,646,338 | | $ | 2,614,825 | |
| | | | | | |
| Investment properties, fair value | $ | 5,841,000 | | $ | 5,604,000 | |
| Investment properties held in joint ventures, fair value, at Crombie's share (2) | | 347,500 | | | 285,000 | |
| Other assets, cost (3) | | 77,738 | | | 82,296 | |
| Other assets, cost, held in joint ventures, at Crombie's share (2) (3) (4) | | 4,392 | | | 5,755 | |
| Cash and cash equivalents | | 1,661 | | | 10,021 | |
| Cash and cash equivalents held in joint ventures, at Crombie's share (2) | | 6,284 | | | 3,434 | |
| Deferred financing charges | | 9,093 | | | 11,669 | |
| Gross fair value | $ | 6,287,668 | | $ | 6,002,175 | |
| Debt to gross fair value | | 42.1 % | | | 43.6 % | |
(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 | |
| | December 31, 2025 | | | December 31, 2024 | |
| Operating income attributable to Unitholders | $ | 25,235 | | $ | 76,143 | |
| Amortization of tenant incentives | | 9,352 | | | 7,725 | |
| Net loss on disposal of investment properties | | - | | | 996 | |
| Gain on acquisition of control of joint venture | | - | | | (51,794 | ) |
| Gain on derecognition of right-of-use asset | | - | | | (405 | ) |
| Impairment of investment properties | | 8,400 | | | 3,100 | |
| Reversal of impairment of investment properties | | (6,680 | ) | | - | |
| Depreciation and amortization | | 23,201 | | | 21,196 | |
| Finance costs - operations | | 24,544 | | | 25,401 | |
| Loss from equity-accounted investments | | 241 | | | 130 | |
| Property revenue in joint ventures, at Crombie's share | | 3,868 | | | 3,797 | |
| Amortization of tenant incentives in joint ventures, at Crombie's share | | 81 | | | 78 | |
| Property operating expenses in joint ventures, at Crombie's share | | (1,263 | ) | | (1,199 | ) |
| General and administrative expenses in joint ventures, at Crombie's share | | (30 | ) | | (43 | ) |
| Taxes - current | | 3 | | | 4 | |
| Adjusted EBITDA [1] | $ | 86,952 | | $ | 85,129 | |
| Trailing 12 months adjusted EBITDA [3] | $ | 344,072 | | $ | 328,558 | |
| | | | | | |
| Finance costs - operations | $ | 24,544 | | $ | 25,401 | |
| Finance costs - operations in joint ventures, at Crombie's share | | 2,015 | | | 1,922 | |
| Amortization of deferred financing charges | | (734 | ) | | (1,433 | ) |
| Amortization of deferred financing charges in joint ventures, at Crombie's share | | (201 | ) | | (210 | ) |
| Adjusted interest expense [2] | $ | 25,624 | | $ | 25,680 | |
| | | | | | |
| Debt outstanding (see Debt to Gross Fair Value) (1) [4] | $ | 2,646,338 | | $ | 2,614,825 | |
| | | | | | |
| Interest coverage ratio {[1]/[2]} | | 3.39x | | | 3.31x | |
| Debt to trailing 12 months adjusted EBITDA {[4]/[3]} | | 7.69x | | | 7.96x | |
(1) Includes debt held in joint ventures, at Crombie's share.
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 2024 annual Management's Discussion and Analysis under "Risk Management" and the Annual Information Form for the year ended December 31, 2024 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 entitlement and development, which may be impacted by ordinary real estate market cycles, the availability of labour, ability to attract tenants, estimated GLA, tenant rents, building sizes, financing and the cost of any such financing, capital resource allocation decisions and general economic conditions, as well as entitlement and development activities undertaken by related parties not under the direct control of Crombie, Crombie's ability to earn recurring development and management fees, and its ability to make decisions that maximize Unitholder value.
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 December 31, 2025, our portfolio contained 308 properties comprising approximately 18.9 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.
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/283431
© 2026 Canjex Publishing Ltd. All rights reserved.