– Acquisitions drive strong year-over-year growth of 19.9% in rental revenue, 18.6% in Cash NOI and 15.8% in AFFO –
TORONTO, Nov. 12, 2026 /CNW/ -- Automotive Properties Real Estate Investment Trust (TSX: APR.UN) ("Automotive Properties REIT" or the "REIT") today announced its financial results for the three-month ("Q3 2026") and nine-month ("YTD 2026") periods ended September 30, 2026.
"We continue to generate double-digit growth in rental revenue, cash NOI, and AFFO reflecting the positive impact of our property acquisitions during 2025 and to date in 2026, and our organic growth through contractual rent increases," said Milton Lamb, CEO of Automotive Properties REIT.
"We remain focused on opportunities to expand our property portfolio in prime metropolitan markets in Canada and the U.S. to drive continued growth. Subsequent to quarter end, we further expanded our presence in the U.S. sunbelt through the acquisition of a long-term leased Tesla facility in the greater Greensboro area in North Carolina."
1 AFFO per Unit is a non-IFRS measure and AFFO payout ratio is a non-IFRS ratio. See "Non-IFRS Financial Measures" at the end of this news release.
2 Debt to GBV is a supplementary financial measure. See "Non-IFRS Financial Measures" at the end of this news release.
Net Income and Other Comprehensive Income (3)
Rental revenue is based on rents from leases entered into with tenants, all of which are triple-net leases and include recoverable realty taxes and straight-line adjustments. Same Property Cash NOI is based on rental revenue for the same asset base having consistent gross leasable area in both periods.
NOI, Cash NOI, Same Property Cash NOI, FFO, AFFO, FFO per Unit, AFFO per Unit, FFO payout ratio and AFFO payout ratio are non-IFRS measures or non-IFRS ratios, as applicable. See "Non-IFRS Financial Measures" at the end of this news release. References to "Same Property" correspond to properties that the REIT owned in Q3 2025, thus removing the impact of acquisitions and dispositions.
Net Income and Net Income and Other Comprehensive Income for Q3 2026 includes changes in fair value adjustments of $0.9 million for Class B LP Units, Deferred Units ("DUs"), Income Deferred Units ("IDUs"), Performance Deferred Units ("PDUs") and Restricted Deferred Units ("RDUs"), $9.3 million for interest rate swaps and $9.6 million for investment properties.
Please refer to the consolidated financial statements of the REIT and the notes thereto for additional information.
FFO per Unit and AFFO per Unit – basic is calculated by dividing the total FFO and AFFO by the amount of the total weighted average number of outstanding Units. The total weighted average number of Units outstanding – basic for Q3 2026 was 55,212,080.
FFO per Unit and AFFO per Unit – diluted is calculated by dividing the total FFO and AFFO by the amount of the total weighted average number of outstanding Units, DUs, IDUs, PDUs and RDUs granted to independent trustees and management of the REIT. The total weighted average number of Units outstanding (including Class B LP Units, DUs, IDUs, PDUs and RDUs) on a fully diluted basis for Q3 2026 was 56,700,554.
Debt to GBV is a supplementary financial measure. See "Non-IFRS Financial Measures" at the end of this news release.
Rental revenue in Q3 2026 increased by 19.9% to $30.5 million, compared to $25.4 million in Q3 2025. The increase in rental revenue reflected growth from properties acquired during and subsequent to Q3 2025 and contractual annual rent increases.
The REIT generated total Cash NOI of $24.9 million in Q3 2026, representing an increase of 18.6% compared to Q3 2025. The increase was primarily attributable to properties acquired during and subsequent to Q3 2025 and contractual rent increases. Same Property Cash NOI was $21.3 million in Q3 2026, representing an increase of 2.3% compared to Q3 2025.
The increase was primarily attributable to contractual rent increases.
The REIT recorded net income and other comprehensive income of $35.0 million in Q3 2026, compared to $10.4 million in Q3 2025. The increase was primarily attributable to higher NOI, fair value adjustments on investment properties and fair value adjustments on interest rate swaps in Q3 2026 compared to Q3 2025, partially offset by higher interest costs.
FFO in Q3 2026 increased 16.8% to $15.1 million, or $0.266 per Unit (diluted), compared to $12.9 million, or $0.255 per Unit (diluted), in Q3 2025. The increase reflected the impact of the properties acquired during and subsequent to Q3 2025 and contractual rent increases.
AFFO in Q3 2026 increased 15.8% to $14.7 million, or $0.260 per Unit (diluted), compared to $12.7 million, or $0.252 per Unit (diluted), in Q3 2025. The increase reflected the impact of the properties acquired during and subsequent to Q3 2025 and contractual rent increases. Straight-line rent adjustment is excluded from the calculation of AFFO.
For Q3 2026, the REIT declared and paid regular cash distributions of $11.5 million, or $0.208 per Unit, representing an AFFO payout ratio of 80.0%.
The REIT's AFFO payout ratio was lower in Q3 2026 compared to the 81.0% AFFO payout ratio in Q3 2025, primarily due to the positive impact of the properties acquired during and subsequent to Q3 2025 and contractual rent increases, partially offset by the increase to the REIT's cash distributions that was effective for the REIT's August 2026 cash distribution, which was paid on September 15, 2026.
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