Press Release: SmartCentres Real Estate Investment Trust Releases Fourth Quarter and Full Year Results for 2025

Dow Jones
Feb 12
TORONTO--(BUSINESS WIRE)--February 11, 2026-- 

SmartCentres Real Estate Investment Trust ("SmartCentres", the "Trust" or the "REIT") (TSX: SRU.UN) is pleased to report its financial and operating results for the three months and year ended December 31, 2025.

"Reflecting on our 2025 results, I am pleased with our strong financial and operational performance," said Mitchell Goldhar, CEO of SmartCentres. "Our net operating income has shown steady and consistent growth through the year fueled by strong leasing momentum in all retail categories, resulting in an industry-leading 98.6% in-place and committed occupancy rate at year-end. Same property NOI continued to deliver strong results, growing 3.7% over the year and 5.6% excluding anchor tenants. The strong interest from tenants resulted in leasing 430,000 square feet of vacant space with strong rent growth of 6.3% on lease extensions and an additional 125,000 square feet of new-build retail. Our mixed-use development pipeline continues to add to the bottom-line with the completion of three self-storage facilities in 2025 bringing the total to 14 operating properties with an additional four sites under construction and four in process of obtaining municipal approvals. During Q4, we opened the long awaited new Walmart store at our South Oakville shopping centre. We also strengthened our balance sheet by increasing the unencumbered asset pool to over $10 billion and extending the weighted average term of our debt."

2025 Fourth Quarter Highlights

Retail Operations

   --  Industry-leading in-place and committed occupancy rate of 98.6% as of 
      December 31, 2025. 
 
   --  Robust customer traffic and a solid tenant base continued to drive Same 
      Properties NOI(1) growth for the three months and year ended December 31, 
      2025, which increased by 2.9% and 3.7% (5.1% and 5.6% excluding anchors), 
      respectively, compared to the same periods in 2024, primarily due to 
      lease-up and renewal activities mainly from retail properties, as well as 
      stabilization of occupancy levels in self-storage facilities and rentals 
      apartments, partially offset by a higher provision for expected credit 
      loss. 
 
   --  Leasing momentum remained resilient, with approximately 35,500 square 
      feet of vacant space leased during the quarter, resulting in a total of 
      approximately 430,000 square feet leased in 2025. In addition, growing 
      demand for new-build retail continues with approximately 33,000 square 
      feet executed during the quarter, resulting in a total of approximately 
      125,000 square feet executed during the year. 
 
   --  Lease extensions continued to perform well, with strong rent growth of 
      8.4% (excluding anchors) and 6.3% (including anchors). 

Development

   --  Opened three new self-storage facilities in 2025 at Toronto (Gilbert 
      Ave.), Toronto (Jane St.), and Dorval (St-Regis Blvd.), bringing the 
      total number of operating self-storage properties in the portfolio to 14. 
      Construction of self-storage facilities is underway at Montreal (Notre 
      Dame St. W) and Laval E, Quebec, and at Burnaby and Victoria, British 
      Columbia. The Montreal and Laval E facilities are expected to open in Q2 
      2026. Both British Columbia projects are expected to open in 2027. The 
      Trust is also in the process of obtaining municipal approvals for four 
      sites in Ontario, British Columbia, and Alberta. 
 
   --  Construction of Phase I of the Vaughan NW townhomes is now virtually 
      complete, with seven units closed in Q4 2025. As at December 31, 2025, a 
      total of 118 out of the 120 units in Phase I have closed. 
 
   --  Construction of the ArtWalk condo Tower A in the Vaughan Metropolitan 
      Centre continues to advance as planned, with approximately 93% of the 340 
      units pre-sold. The underground parking structure is progressing, the 
      slab-on-grade has been completed, and the first section of the ground 
      floor slab was completed during the quarter. Initial closings on 
      completed units are expected to commence in 2027. 
 
   --  Construction of the 200,000 square foot Canadian Tire flagship store on 
      Laird Drive in Toronto continues on schedule, with possession expected in 
      Q3 2026. 
 
   --  Submitted for Site Plan approval in 2025, for a net new 85,000 square 
      feet (17%) increase in the square footage of Toronto Premium Outlets, for 
      which construction is planned to commence this summer and includes a new 
      four-storey parking garage. 

Financial

   --  Net rental income and other for the three months ended December 31, 
      2025 was $143.6 million, representing an increase of $2.0 million or 1.4% 
      as compared to the same period in 2024. The increase was primarily from 
      lease-up activities and higher net recoveries, partially offset by lower 
      residential sales caused by fewer townhomes closings. 
 
   --  FFO per Unit(1) for the three months ended December 31, 2025, was $0.54 
      compared to $0.53 for the same period in 2024. The increase was primarily 
      due to higher NOI from lease-up activities and higher net recoveries as 
      well as changes in fair value adjustment on TRS resulting from 
      fluctuations in the Trust's Unit price, partially offset by higher 
      interest expense, and higher general and administrative expense. FFO with 
      adjustments per Unit(1) for the three months ended December 31, 2025, was 
      $0.54 compared to $0.56 for the same period in 2024. The decrease was 
      mainly attributable to higher net interest expense and general and 
      administrative expense, partially offset by higher NOI. 
 
   --  Net income and comprehensive income for the three months ended December 
      31, 2025, decreased by $11.7 million as compared to the same period in 
      2024. The decrease was mainly attributable to a $6.3 million decrease in 
      fair value adjustment on financial instruments for the period, primarily 
      due to mark-to-market adjustments for interest rate swaps and a fair 
      value change in units classified as liabilities due to a decrease in the 
      Trust's Unit price and a $4.1 million decrease in the fair value gain on 
      investment properties. 

Subsequent Event

   --  On January 2, 2026, the Trust announced that several key arrangements 
      with Penguin that were originally scheduled to expire on December 31, 
      2025, have been extended under their existing terms until February 28, 
      2026, while negotiations for new five-year terms are ongoing. The 
      extensions apply to the Executive Employment Agreement for Mitchell 
      Goldhar, Executive Chairman and Chief Executive Officer of SmartCentres, 
      the Development Services Agreement supplements, the Penguin Services 
      Agreement, and the Non-Competition Agreement. The Trust also announced 
      that, in accordance with the Declaration of Trust, the Voting Top-Up 
      Right expired on December 31, 2025. As negotiations remain ongoing, the 
      Trust is not in a position to provide further commentary on these matters 
      at this time and will update unitholders when there is material 
      information to disclose. 
 
(1)    Represents a non-GAAP measure. The Trust's method of calculating 
       non-GAAP measures may differ from other reporting issuers' methods and, 
       accordingly, may not be comparable. For additional information, please 
       see "Non-GAAP Measures" in this Press Release. 
 
 
Selected Operational, Development and Financial Information 
 
(in thousands of 
dollars, except per 
Unit and other 
non-financial data) 
                                          December  December 31,  December 31, 
As at                                     31, 2025          2024          2023 
-----------------------  ------------  -----------  ------------  ------------ 
Portfolio Information 
(Number of properties) 
Retail properties                              155           155           155 
Office properties                                4             4             4 
Self-storage properties                         14            11             8 
Residential properties                           3             3             3 
Industrial properties                            1             1             1 
Properties under 
 development                                    21            21            20 
-----------------------  ------------  -----------  ------------  ------------ 
Total number of 
 properties with an 
 ownership interest                            198           195           191 
-----------------------  ------------  -----------  ------------  ------------ 
Leasing and Operational 
Information(1) 
Gross leasable retail, 
 office and industrial 
 area (in thousands of 
 sq. ft.)                                   35,585        35,300        35,045 
In-place and committed 
 occupancy rate                              98.6%         98.7%         98.5% 
Average lease term to 
 maturity (in years)                           4.3           4.2           4.3 
In-place net retail 
 rental rate excluding 
 Anchors (per occupied 
 sq. ft.)                                   $24.23        $23.48        $22.59 
-----------------------  ------------  -----------  ------------  ------------ 
Financial Information 
Investment 
 properties(2)                          10,852,939    10,659,783    10,564,269 
Total unencumbered 
 assets(3)                              10,030,521     9,464,521     9,170,121 
NAV per Unit - 
 diluted(3)                                 $35.93        $36.03        $36.40 
Debt to Aggregate 
 Assets(3)(4)(5)                             44.4%         43.7%         43.1% 
Adjusted Debt to 
Adjusted 
EBITDA(3)(4)(5)                               9.7X          9.6X          9.6X 
Weighted average 
 interest rate(3)(4)                         4.00%         3.92%         4.15% 
Weighted average term 
 of debt (in years)                            3.4           3.1           3.6 
Interest coverage 
ratio(3)(4)                                   2.6X          2.5X          2.7X 
 
                                Three Months Ended 
                                       December 31      Year Ended December 31 
                                 2025         2024          2025          2024 
-----------------------  ------------  -----------  ------------  ------------ 
Financial Information 
Rentals from investment 
 properties and 
 other(2)                     234,170      229,743       913,913       918,359 
Net income and 
 comprehensive 
 income(2)                    130,113      141,850       310,755       292,070 
FFO(3)(4)(6)                   98,435       96,645       413,838       402,556 
AFFO(3)(4)(6)                  86,999       85,004       369,989       359,396 
Cash flows provided by 
 operating 
 activities(2)                127,344      122,118       377,441       374,208 
Net rental income and 
 other(2)                     143,574      141,580       563,042       547,508 
NOI(3)(4)                     150,697      148,614       592,551       572,536 
Change in SPNOI(3)(4)            2.9%         3.8%          3.7%          2.8% 
Change in SPNOI 
 excluding 
 anchors(3)(4)                   5.1%         6.0%          5.6%          4.6% 
Weighted average units 
 outstanding -- 
 diluted(7)               182,234,484  181,186,382   181,970,462   180,749,027 
Net income and 
comprehensive income 
per Unit(2)               $0.73/$0.71  $0.80/$0.78   $1.74/$1.71   $1.64/$1.62 
FFO per Unit(3)(4)(6)     $0.55/$0.54  $0.54/$0.53   $2.32/$2.27   $2.26/$2.23 
FFO with adjustments 
per Unit(3)(4)            $0.56/$0.54  $0.57/$0.56   $2.23/$2.19   $2.15/$2.12 
AFFO per Unit(3)(4)(6)    $0.49/$0.48  $0.48/$0.47   $2.08/$2.03   $2.02/$1.99 
AFFO with adjustments 
per Unit(3)(4)            $0.49/$0.48  $0.50/$0.50   $2.00/$1.95   $1.91/$1.88 
Payout Ratio to 
 AFFO(3)(4)(6)                  94.8%        97.0%         89.2%         91.7% 
Payout Ratio to AFFO 
 with 
 adjustments(3)(4)              94.2%        91.9%         93.2%         97.0% 
Payout Ratio to cash 
 flows provided by 
 operating activities           64.8%        67.5%         87.4%         88.1% 
-----------------------  ------------  -----------  ------------  ------------ 
 
 
(1)    Excluding residential and self-storage areas. 
(2)    Represents a Generally Accepted Accounting Principles ("GAAP") measure. 
(3)    Represents a non-GAAP measure. The Trust's method of calculating 
       non-GAAP measures may differ from other reporting issuers' methods and, 
       accordingly, may not be comparable. For additional information, please 
       see "Non-GAAP Measures" in this Press Release. 
(4)    Includes the Trust's proportionate share of equity accounted 
       investments. 
(5)    As at December 31, 2025, cash-on-hand of $44.6 million was excluded for 
       the purposes of calculating the applicable ratios (December 31, 2024 -- 
       $34.9 million, December 31, 2023 -- $31.4 million). 
(6)    The calculation of the Trust's FFO and AFFO and related payout ratios, 
       including comparative amounts, are financial metrics that were 
       determined based on the REALPAC White Paper on FFO and AFFO issued in 
       January 2022 ("REALPAC White Paper"). Comparison with other reporting 
       issuers may not be appropriate. The payout ratio to AFFO is calculated 
       as declared distributions divided by AFFO. 
(7)    The diluted weighted average includes the vested portion of the 
       deferred units issued pursuant to the deferred unit plan, and vested 
       EIPs granted pursuant to the equity incentive plan. 
 

Development and Intensification Summary

The following table provides additional details on the Trust's eight development initiatives that are currently under construction or where initial siteworks have begun (in order of estimated initial occupancy/closing date):

 
                                             Actual / 
                                             estimated 
Projects under                                initial 
construction                                 occupancy   % of     GFA(1)       No. of 
(Location/Project                   Trust's  / closing  capital    (sq.     residential 
Name)                Type            share     date      spend     ft.)        units 
-------------------  -------------  -------  ---------  -------  ---------  ------------ 
 
Mixed-use 
Developments 
    Vaughan NW 
     (Phase I & 
     II)             Townhomes        50%     Q1 2024     68%     366,000       174 
    Montreal 
     (Notre-Dame)    Self-storage     50%     Q2 2026     64%     184,000       N/A 
    Laval East       Self-storage     50%     Q2 2026     50%     176,000       N/A 
    Burnaby          Self-storage     50%     Q2 2027     27%     137,000       N/A 
    Victoria         Self-storage     50%     Q3 2027     31%     164,000       N/A 
    Vaughan / 
     ArtWalk         Condo            50%     Q4 2027     40%     300,000       340 
                     Residential 
    Ottawa SW         Apartments      50%     Q1 2028     30%     361,000       425 
-------------------  -------------  -------  ---------  -------  ---------  ------------ 
Total Mixed-use Developments                                     1,688,000      939 
----------------------------------  -------  ---------  -------  ---------  ------------ 
Retail Development 
    Toronto (Laird)  Retail           50%     Q3 2026     68%     225,000       N/A 
-------------------  -------------  -------  ---------  -------  ---------  ------------ 
(1) GFA represents Gross Floor Area. 
 

Reconciliations of Non-GAAP Measures

The following tables reconcile the non-GAAP measures to the most comparable GAAP measures for the year ended December 31, 2025, and the comparable period in 2024. Such measures do not have a standardized meaning prescribed by IFRS and may not be comparable to similar measures disclosed by other issuers.

 
Net Operating Income (including the Trust's Interests in Equity Accounted Investments) 
 
(in thousands 
of dollars)         Three Months Ended December 31, 2025       Three Months Ended December 31, 2024 
--------------  ----------------------------------------  ----------------------------------------- 
                           Proportionate       Total                 Proportionate       Total 
                  GAAP         Share       Proportionate    GAAP         Share       Proportionate 
                  Basis    Reconciliation    Share(1)       Basis    Reconciliation     Share(1) 
--------------  ---------  --------------  -------------  ---------  --------------  -------------- 
Net operating 
income 
Rentals from 
 investment 
 properties 
 and other       $230,680         $13,140       $243,820   $221,841         $12,528        $234,369 
Property 
 operating 
 costs and 
 other           (88,417)         (6,031)       (94,448)   (82,885)         (5,503)        (88,388) 
--------------  ---------  --------------  -------------  ---------  --------------  -------------- 
                 $142,263          $7,109       $149,372   $138,956          $7,025        $145,981 
--------------  ---------  --------------  -------------  ---------  --------------  -------------- 
Residential 
 sales revenue 
 and other(2)       3,490               8          3,498      7,902              10           7,912 
Residential 
 cost of sales 
 and other        (2,179)               6        (2,173)    (5,278)             (1)         (5,279) 
--------------  ---------  --------------  -------------  ---------  --------------  -------------- 
                   $1,311             $14         $1,325     $2,624              $9          $2,633 
--------------  ---------  --------------  -------------  ---------  --------------  -------------- 
NOI              $143,574          $7,123       $150,697   $141,580          $7,034        $148,614 
--------------  ---------  --------------  -------------  ---------  --------------  -------------- 
 
 
(in thousands 
of dollars)                 Year Ended December 31, 2025               Year Ended December 31, 2024 
--------------  ----------------------------------------  ----------------------------------------- 
                           Proportionate       Total                 Proportionate       Total 
                  GAAP         Share       Proportionate    GAAP         Share       Proportionate 
                  Basis    Reconciliation    Share(1)       Basis    Reconciliation     Share(1) 
--------------  ---------  --------------  -------------  ---------  --------------  -------------- 
Net operating 
income 
Rentals from 
 investment 
 properties 
 and other       $896,556         $52,422       $948,978   $860,091         $46,723        $906,814 
Property 
 operating 
 costs and 
 other          (338,539)        (23,752)      (362,291)  (324,269)        (21,576)       (345,845) 
--------------  ---------  --------------  -------------  ---------  --------------  -------------- 
                 $558,017         $28,670       $586,687   $535,822         $25,147        $560,969 
--------------  ---------  --------------  -------------  ---------  --------------  -------------- 
Residential 
 sales revenue 
 and other(2)      17,357             159         17,516     58,268              92          58,360 
Residential 
 cost of sales 
 and other       (12,332)             680       (11,652)   (46,582)           (211)        (46,793) 
--------------  ---------  --------------  -------------  ---------  --------------  -------------- 
                   $5,025            $839         $5,864    $11,686          $(119)         $11,567 
--------------  ---------  --------------  -------------  ---------  --------------  -------------- 
NOI              $563,042         $29,509       $592,551   $547,508         $25,028        $572,536 
--------------  ---------  --------------  -------------  ---------  --------------  -------------- 
 
 
(1)    This column contains non-GAAP measures because it includes figures that 
       are recorded in equity accounted investments. The Trust's method of 
       calculating non-GAAP measures may differ from other reporting issuers' 
       methods and, accordingly, may not be comparable. For additional 
       information, please see "Non-GAAP Measures" in this Press Release. 
(2)    Includes additional partnership profit and other revenues. 
 
 
Same Properties NOI 
                     Three Months Ended December 31    Year Ended December 31 
(in thousands of 
dollars)                       2025             2024         2025         2024 
-------------------  --------------  ---------------  -----------  ----------- 
Net rental income 
 and other                 $143,574         $141,580     $563,042     $547,508 
NOI from equity 
 accounted 
 investments(1)               7,123            7,034       29,509       25,028 
-------------------  --------------  ---------------  -----------  ----------- 
Total portfolio NOI 
 before 
 adjustments(1)            $150,697         $148,614     $592,551     $572,536 
Adjustments: 
    Lease 
     termination               (57)            (172)      (1,466)      (1,240) 
    Net profit on 
     condo and 
     townhome 
     closings               (1,325)          (2,633)      (5,864)     (11,567) 
    Other 
     adjustments(2)             323             (21)        2,190        4,113 
-------------------  --------------  ---------------  -----------  ----------- 
Total portfolio NOI 
 after 
 adjustments(1)            $149,638         $145,788     $587,411     $563,842 
NOI sourced from 
 acquisitions, 
 dispositions, 
 Earnouts and 
 developments               (1,472)          (1,758)     (10,781)      (7,522) 
-------------------  --------------  ---------------  -----------  ----------- 
Same Properties 
 NOI(1)                    $148,166         $144,030     $576,630     $556,320 
-------------------  --------------  ---------------  -----------  ----------- 
 
 
(1)    Represents a non-GAAP measure. The Trust's method of calculating 
       non-GAAP measures may differ from other reporting issuers' methods and, 
       accordingly, may not be comparable. For additional information, please 
       see "Non-GAAP Measures" in this Press Release. 
(2)    Includes items such as adjustments relating to royalties, straight-line 
       rent and amortization of tenant incentives. 
 
 
Reconciliation of 
 FFO 
                      Three Months Ended December 31    Year Ended December 31 
(in thousands of 
dollars)                       2025             2024         2025         2024 
-------------------  --------------  ---------------  -----------  ----------- 
Net income and 
 comprehensive 
 income                    $130,113         $141,850     $310,755     $292,070 
Add (Deduct): 
    Fair value 
     adjustment on 
     investment 
     properties and 
     financial 
     instruments(1)        (33,381)         (43,820)       44,704       69,234 
    Loss (Gain) on 
     derivative -- 
     TRS                    (1,798)          (5,645)       10,505       10,027 
    Gain (Loss) on 
     sale of 
     investment 
     properties                (15)                3      (1,053)          123 
    Amortization of 
     intangible 
     assets and 
     tenant 
     improvement 
     allowance                2,482            2,387        9,643        9,208 
    Distributions 
     on Units 
     classified as 
     liabilities 
     and vested 
     deferred units 
     and EIP                  5,423            5,000       21,241       19,218 
    Salaries and 
     related costs 
     attributed to 
     leasing 
     activities(2)            2,020            2,279        8,579        9,549 
    Adjustments 
     relating to 
     equity 
     accounted 
     investments(3)         (6,409)          (5,409)        9,464      (6,873) 
-------------------  --------------  ---------------  -----------  ----------- 
FFO(4)                      $98,435          $96,645     $413,838     $402,556 
Add (Deduct) 
non-recurring 
adjustments: 
    Loss (Gain) on 
     derivative -- 
     TRS                      1,798            5,645     (10,505)     (10,027) 
    FFO sourced 
     from condo and 
     townhome 
     closings               (1,325)          (2,147)      (5,864)     (10,704) 
    Transactional 
     FFO -- sale of 
     land(4)                     99            1,218          453        1,218 
-------------------  --------------  ---------------  -----------  ----------- 
FFO with 
 adjustments(4)             $99,007         $101,361     $397,922     $383,043 
-------------------  --------------  ---------------  -----------  ----------- 
 
 
(1)    Includes fair value adjustments on investment properties and financial 
       instruments. Fair value adjustment on investment properties is 
       described in "Investment Properties" in the Trust's MD&A. Fair value 
       adjustment on financial instruments comprises the following financial 
       instruments: units classified as liabilities, Deferred Unit Plan 
       ("DUP"), Equity Incentive Plan ("EIP"), TRS, and interest rate swap 
       agreements. The significant assumptions made in determining the fair 
       value are more thoroughly described in the Trust's consolidated 
       financial statements for the year ended December 31, 2025. For details, 
       please see discussion in "Results of Operations" section in the MD&A. 
(2)    Salaries and related costs attributed to leasing activities of $8.6 
       million were incurred in the year ended December 31, 2025 (year ended 
       December 31, 2024 -- $9.5 million) and were eligible to be added back 
       to FFO based on the definition of FFO, in the REALPAC White Paper, 
       which provided for an adjustment to incremental leasing expenses for 
       the cost of salaried staff. This adjustment to FFO results in more 
       comparability between Canadian publicly traded real estate entities 
       that expensed their internal leasing departments and those that 
       capitalized external leasing expenses. 
(3)    Includes tenant improvement amortization, indirect interest with 
       respect to the development portion, fair value adjustment on investment 
       properties, loss (gain) on sale of investment properties, and 
       adjustment for supplemental costs. 
(4)    Represents a non-GAAP measure. The Trust's method of calculating 
       non-GAAP measures may differ from other reporting issuers' methods and, 
       accordingly, may not be comparable. For definitions and basis of 
       presentation of the Trust's non-GAAP measures, refer to "Presentation 
       of Certain Terms Including Non-GAAP Measures" and "Non-GAAP Measures" 
       in the MD&A. 
 
 
Reconciliation of 
 AFFO 
                      Three Months Ended December 31    Year Ended December 31 
(in thousands of 
dollars)                       2025             2024         2025         2024 
------------------  ---------------  ---------------  -----------  ----------- 
FFO(1)                      $98,435          $96,645     $413,838     $402,556 
Add (Deduct): 
    Straight-line 
     rents                    (425)          (1,273)      (4,186)      (4,127) 
    Adjusted 
     salaries and 
     related costs 
     attributed to 
     leasing                (2,020)          (2,279)      (8,579)      (9,549) 
Capital 
 expenditures, 
 leasing 
 commissions, and 
 tenant 
 improvements               (8,991)          (8,089)     (31,084)     (29,484) 
------------------  ---------------  ---------------  -----------  ----------- 
AFFO(1)                     $86,999          $85,004     $369,989     $359,396 
Add (Deduct) 
non-recurring 
adjustments: 
    Loss (Gain) on 
     derivative -- 
     TRS                      1,798            5,645     (10,505)     (10,027) 
    FFO sourced 
     from condo 
     and townhome 
     closings               (1,325)          (2,147)      (5,864)     (10,704) 
    Transactional 
     FFO -- sale 
     of land(1)                  99            1,218          453        1,218 
------------------  ---------------  ---------------  -----------  ----------- 
AFFO with 
 adjustments(1)             $87,571          $89,720     $354,073     $339,883 
------------------  ---------------  ---------------  -----------  ----------- 
 
 
(1)    Represents a non-GAAP measure. The Trust's method of calculating 
       non-GAAP measures may differ from other reporting issuers' methods and, 
       accordingly, may not be comparable. For additional information, please 
       see "Non-GAAP Measures" in this Press Release. 
 

Adjusted EBITDA

The following table presents a reconciliation of net income and comprehensive income to Adjusted EBITDA:

 
                                                Rolling 12 Months Ended 
(in thousands of dollars)                 December 31, 2025  December 31, 2024 
----------------------------------------  -----------------  ----------------- 
Net income and comprehensive income                $310,755           $292,070 
Add (Deduct) the following items: 
Net interest expense                                196,549            192,938 
Amortization of equipment, intangible 
 assets and tenant improvements                      12,444             12,072 
Fair value adjustments on investment 
 properties and financial instruments                43,966             47,077 
Adjustment for supplemental costs                     2,630              4,526 
Loss (Gain) on sale of investment 
 properties                                         (1,105)                123 
----------------------------------------  -----------------  ----------------- 
Adjusted EBITDA(1)                                 $565,239           $548,806 
----------------------------------------  -----------------  ----------------- 
 
 
(1)    Represents a non-GAAP measure. The Trust's method of calculating 
       non-GAAP measures may differ from other reporting issuers' methods and, 
       accordingly, may not be comparable. For additional information, please 
       see "Non-GAAP Measures" in this Press Release. 
 
 
Net Asset Value 
 
(in thousands of dollars, except per 
Unit information)                         December 31, 2025  December 31, 2024 
----------------------------------------  -----------------  ----------------- 
Total equity                                     $6,346,305         $6,337,581 
LP Units classified as liabilities                  201,229            191,665 
----------------------------------------  -----------------  ----------------- 
NAV(1)                                           $6,547,534         $6,529,246 
Units outstanding - diluted(2)                  182,242,010        181,205,536 
----------------------------------------  -----------------  ----------------- 
NAV per Unit - diluted(1)                            $35.93             $36.03 
----------------------------------------  -----------------  ----------------- 
 
 
(1)    Represents a non-GAAP measure. The Trust's method of calculating 
       non-GAAP measures may differ from other reporting issuers' methods and, 
       accordingly, may not be comparable. For additional information, please 
       see "Non-GAAP Measures" in this Press Release. 
(2)    Total diluted Units outstanding include Trust Units and LP Units, 
       including Units classified as liabilities, vested portion of the 
       deferred units issued pursuant to the deferred unit plan and vested 
       EIPs granted pursuant to the equity incentive plan. 
 

Conference Call

Management will hold a conference call on Thursday, February 12, 2026 at 3:00 p.m. $(ET)$.

Interested parties are invited to access the call by dialing 1-855-353-9183 and then keying in the participant access code 69072#.

A recording of this call will be made available Thursday, February 12, 2026 through to Thursday, February 19, 2026. To access the recording, please call 1-855-201-2300, enter the conference access code 69072# and then key in the playback access code 69072#.

About SmartCentres

SmartCentres is one of Canada's largest fully integrated REITs, with a best-in-class and growing mixed-use portfolio featuring 198 strategically located properties in communities across the country. SmartCentres has approximately $12.1 billion in assets consisting of income producing value-oriented retail, purpose-built rental, first-class office and self-storage properties. SmartCentres owns 35.6 million square feet of leasable space with 98.6% in place and committed occupancy, on 3,500 acres of owned land across Canada.

Non-GAAP Measures

The non-GAAP measures used in this Press Release, including but not limited to, AFFO, AFFO with adjustments, AFFO per Unit, AFFO with adjustments per Unit, Payout Ratio to AFFO, Payout Ratio to AFFO with adjustments, Unencumbered Assets, NOI, Debt to Aggregate Assets, Interest Coverage Ratio, Adjusted Debt to Adjusted EBITDA, Unsecured/Secured Debt Ratio, FFO, FFO with adjustments, FFO per Unit, FFO with adjustments per Unit, Net Asset Value ("NAV"), Same Properties NOI, Same Properties NOI excluding Anchors, Debt to Gross Book Value, Weighted Average Interest Rate, Transactional FFO, and Total Proportionate Share, do not have any standardized meaning prescribed by International Financial Reporting Standards ("IFRS") and are therefore unlikely to be comparable to similar measures presented by other issuers. Additional information regarding these non-GAAP measures is available in the Management's Discussion and Analysis of the Trust for the year ended December 31, 2025, dated February 11, 2026 (the "MD&A"), and is incorporated by reference. The information is found in the "Presentation of Certain Terms Including Non-GAAP Measures" and "Non-GAAP Measures" sections of the MD&A, which is available on SEDAR+ at www.sedarplus.ca. Reconciliations of non-GAAP financial measures to the most directly comparable IFRS measures are found in "Reconciliations of Non-GAAP Measures" of this Press Release.

Full reports of the financial results of the Trust for the year ended December 31, 2025 are outlined in the consolidated financial statements and the related MD&A of the Trust for the year ended December 31, 2025, which are available on SEDAR+ at www.sedarplus.ca.

Cautionary Statements Regarding Forward-looking Statements

Certain statements in this Press Release are "forward-looking statements" that reflect management's expectations regarding the Trust's future growth, results of operations, performance and business prospects and opportunities. More specifically, certain statements including, but not limited to, statements related to SmartCentres' expectations relating to cash collections, SmartCentres' expected or planned development plans and joint venture projects, including the described type, scope, costs and other financial metrics and the expected timing of construction and condo closings and statements that contain words such as "could", "should", "can", "anticipate", "expect", "believe", "will", "may" and similar expressions and statements relating to matters that are not historical facts, constitute "forward-looking statements". These forward-looking statements are presented for the purpose of assisting the Trust's Unitholders and financial analysts in understanding the Trust's operating environment and may not be appropriate for other purposes. Such forward-looking statements reflect management's current beliefs and are based on information currently available to management.

However, such forward-looking statements involve significant risks and uncertainties. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including risks associated with potential acquisitions not being completed or not being completed on the contemplated terms, public health crises, real property ownership and development, debt and equity financing for development, interest and financing costs, construction and development risks, and the ability to obtain commercial and municipal consents for development. These risks and others are more fully discussed under the heading "Risks and Uncertainties" and elsewhere in SmartCentres' most recent Management's Discussion and Analysis, as well as under the heading "Risk Factors" in SmartCentres' most recent annual information form. Although the forward-looking statements contained in this Press Release are based on what management believes to be reasonable assumptions, SmartCentres cannot assure investors that actual results will be consistent with these forward-looking statements. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. These forward-looking statements are made as at the date of this Press Release and SmartCentres assumes no obligation to update or revise them to reflect new events or circumstances unless otherwise required by applicable securities legislation.

Material factors or assumptions that were applied in drawing a conclusion or making an estimate set out in the forward-looking information may include, but are not limited to: a stable retail environment; a continuing trend toward land use intensification, including residential development in urban markets and continued growth along transportation nodes; access to equity and debt capital markets to fund, at acceptable costs, future capital requirements and to enable our refinancing of debts as they mature; that requisite consents for development will be obtained in the ordinary course, construction and permitting costs consistent with the past year and recent inflation trends.

View source version on businesswire.com: https://www.businesswire.com/news/home/20260211614906/en/

 
    CONTACT: 

For information, visit www.smartcentres.com or please contact:

Mitchell Goldhar

Executive Chairman and CEO

(905) 326-6400 ext. 7674

mgoldhar@smartcentres.com

Peter Slan

Chief Financial Officer

(905) 326-6400 ext. 7571

pslan@smartcentres.com

 
 

(END) Dow Jones Newswires

February 11, 2026 18:24 ET (23:24 GMT)

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