TORONTO--(BUSINESS WIRE)--November 05, 2025-- 

Granite Real Estate Investment Trust (TSX: GRT.UN; NYSE: GRP.U) ("Granite" or the "Trust") announced today its condensed consolidated combined results for the three and nine month periods ended September 30, 2025 and a distribution increase of 4.41% effective with the December 2025 distribution.

THIRD QUARTER 2025 HIGHLIGHTS

Highlights for the three month period ended September 30, 2025 are set out below:

Financial:

   -- Granite's net operating income ("NOI") was $127.1 million in the third 
      quarter of 2025 compared to $119.6 million in the prior year period, an 
      increase of $7.5 million primarily as a result of contractual rent 
      adjustments and consumer price index based increases, renewal and 
      re-leasing activity, the acquisition of two income-producing properties 
      in the United States in the second quarter of 2025, and the lease 
      commencement of two completed expansion projects in Canada and 
      Netherlands during 2024; 
 
   -- Constant currency same property NOI - cash basis(4) increased by 5.2% for 
      the third quarter of 2025; 
 
   -- Funds from operations ("FFO")(1) was $89.9 million ($1.48 per unit) in 
      the third quarter of 2025 compared to $85.2 million ($1.35 per unit) in 
      the third quarter of 2024; 
 
   -- Adjusted funds from operations ("AFFO")(2) was $77.0 million ($1.26 per 
      unit) in the third quarter of 2025 compared to $76.6 million ($1.22 per 
      unit) in the third quarter of 2024; 
 
   -- During the three month period ended September 30, 2025, the Canadian 
      dollar weakened against the Euro and the US dollar relative to the prior 
      year period. The impact of foreign exchange on FFO and AFFO for the three 
      month period ended September 30, 2025, relative to the same period in 
      2024, was favourable by $0.04 per unit for each measure; 
 
   -- AFFO payout ratio(3) was 67% for the third quarter of 2025 compared to 
      68% in the third quarter of 2024; 
 
   -- In-place occupancy as at September 30, 2025 was 96.8%, representing an 
      increase of 100 basis points relative to in-place occupancy as at June 
      30, 2025. Committed occupancy as at November 5, 2025 is 97.1%; 
 
   -- Net leverage ratio as at September 30, 2025 was 35%, representing an 
      increase of 300 basis points relative to December 31, 2024. The increase 
      was primarily driven by the classification of certain assets as held for 
      sale, which reduced investment properties by $370.7 million, as well as 
      increased unsecured debt of $78.0 million, from draws on the credit 
      facility to fund, in the short-term, unit repurchases under the normal 
      course issuer bid ("NCIB"). If the assets held for sale were included in 
      the fair value of investment properties, net leverage ratio would be 34%; 
 
   -- Granite recognized $34.6 million in net fair value losses on investment 
      properties in the third quarter of 2025, primarily attributable to the 
      expansion in the discount and terminal capitalization rates at select 
      properties in the United States and Europe due to market conditions. The 
      value of investment properties was increased by unrealized foreign 
      exchange gains of $156.5 million in the third quarter of 2025 primarily 
      resulting from the relative weakening of the Canadian dollar against the 
      Euro and the US dollar as at September 30, 2025 compared to June 30, 
      2025; 
 
   -- Granite's net income attributable to unitholders in the third quarter of 
      2025 was $68.0 million in comparison to $111.6 million in the prior year 
      period primarily due to an unfavourable change in the fair value 
      adjustments on investment properties of $77.2 million, and a $2.2 million 
      increase in interest expense and other financing costs, partially offset 
      by a $26.5 million increase in income tax recovery, a $7.5 million 
      increase in net operating income as noted above, and a $2.0 million 
      favourable change in fair value losses on financial instruments; and 
 
   -- On November 5, 2025, Granite increased its targeted annualized 
      distribution by 4.41% to $3.55 ($0.2958 per month) per unit from $3.40 
      ($0.2833 per month) per unit to be effective upon the declaration of the 
      distribution in respect of the month of December 2025 and payable in 
      mid-January 2026. 

Operations:

   -- As at September 30, 2025, six income producing properties located in the 
      United States and Netherlands were classified as assets held for sale 
      with a fair value of $370.7 million; 
 
   -- During the third quarter of 2025, Granite achieved average rental rate 
      spreads of 88% over expiring rents representing approximately 1,846,000 
      square feet of new leases and renewals taking effect in the quarter; and 
 
   -- During the third quarter of 2025, Granite executed a lease commencing in 
      the first quarter of 2026 for the remaining vacant unit comprising 
      approximately 148,000 square feet at its completed phase I development in 
      Houston, Texas for a 126 month term with a global automotive accessories 
      manufacturer and distributor. 

GRANITE'S FINANCIAL, OPERATING AND PROPERTY HIGHLIGHTS

 
                      Three Months Ended     Nine Months Ended September 
                        September 30,                    30, 
                   ------------------------  --------------------------- 
(in millions, 
except as noted)    2025        2024           2025          2024 
-----------------   -----       -----  ----   -------       -------  --- 
Revenue            $153.0      $141.9        $  456.9      $  421.1 
Net operating 
 income ("NOI")    $127.1      $119.6        $  376.2      $  350.8 
NOI - cash 
 basis(4)          $124.7      $116.2        $  368.7      $  341.2 
Constant currency 
 same property 
 NOI - cash 
 basis(4)             5.2%        6.2%            4.8%          4.2% 
Net income 
 attributable to 
 unitholders       $ 68.0      $111.6        $  206.9      $  276.9 
Funds from 
 operations 
 ("FFO")(1)        $ 89.9      $ 85.2        $  266.4      $  251.2 
Adjusted funds 
 from operations 
 ("AFFO")(2)       $ 77.0      $ 76.6        $  240.5      $  228.4 
Diluted FFO per 
 unit(1)           $ 1.48      $ 1.35        $   4.32      $   3.97 
Diluted AFFO per 
 unit(2)           $ 1.26      $ 1.22        $   3.90      $   3.61 
Monthly 
 distributions 
 paid per unit     $ 0.85      $ 0.83        $   2.55      $   2.48 
AFFO payout 
 ratio(3)              67%         68%             65%           68% 
 
As at September 
30, 2025 and 
December 31, 
2024                                           2025          2024 
-----------------  ----------  ------------   -------       -------  --- 
Fair value of 
 investment 
 properties                                  $9,102.5      $9,397.3 
Assets held for 
 sale(10)                                    $  370.7      $     -- 
Cash and cash 
 equivalents                                 $  127.9      $  126.2 
Total debt(5)                                $3,335.5      $3,087.8 
Net leverage 
 ratio(6)                                          35%           32% 
Number of 
 income-producing 
 properties                                       134           138 
Gross leasable 
 area ("GLA"), 
 square feet                                     60.9          63.3 
Occupancy, by GLA                                96.8%         94.9% 
Committed 
 occupancy, by 
 GLA(9)                                          97.1%         95.0% 
Magna as a 
 percentage of 
 annualized 
 revenue(8)                                        27%           26% 
Magna as a 
 percentage of 
 GLA                                               20%           19% 
Weighted average 
 lease term in 
 years, by GLA                                    5.5           5.7 
Overall 
 capitalization 
 rate(7)                                          5.6%          5.3% 
-----------------  ----------  ------------   -------       ------- 
 

The above disclosure includes certain non-GAAP performance measures and non-GAAP ratios (see "NON-GAAP PERFORMANCE MEASURES, RATIOS AND RECONCILIATIONS"). A more detailed discussion of Granite's condensed consolidated combined financial results for the three and nine month periods ended September 30, 2025 and 2024 is contained in Granite's Management's Discussion and Analysis of Results of Operations and Financial Position ("MD&A") and the unaudited condensed consolidated combined financial statements for those periods and the notes thereto, which are available through the internet on the Canadian Securities Administrators' System for Electronic Data Analysis and Retrieval Plus ("SEDAR+") and can be accessed at www.sedarplus.ca and on the United States Securities and Exchange Commission's (the "SEC") Electronic Data Gathering, Analysis and Retrieval System ("EDGAR"), which can be accessed at www.sec.gov.

ENVIRONMENTAL, SOCIAL, GOVERNANCE + RESILIENCE (ESG+R)

Granite completed its sixth annual GRESB Real Estate Assessment in the third quarter of 2025. GRESB's 2025 results were published in October 2025 and Granite ranked 1st out of 7 in the Northern America | Industrial | Listed | Tenant Controlled peer group. Granite's overall score increased by 1 point compared to the prior year. In GRESB's 2025 Public Disclosure Report, which evaluates the level of ESG disclosure by listed property companies and REITs, Granite was ranked 1st in the United States of America Industrial sector comprised of 10 reporting entities. Granite continues to implement strategic initiatives to enhance its ESG+R Program into 2026 and beyond.

2025 OUTLOOK

(MORE TO FOLLOW) Dow Jones Newswires

November 05, 2025 17:00 ET (22:00 GMT)