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Automotive Properties Real Estate Investment Trust

Automotive Properties REIT Reports 2025 Fourth Quarter and Year-End Results

TORONTO , March 4, 2026 /CNW/ - Automotive Properties Real Estate Investment Trust (TSX: APR.UN) ("Automotive Properties REIT" or the "REIT") today announced its financial results for the fourth quarter ("Q4 2025") and year ended December 31, 2025 ("2025").

"2025 was an instrumental year for Automotive Properties REIT. We acquired 13 automotive properties, including our first three properties in the United States, for an aggregate purchase price of approximately $200 million. These acquisitions contributed to our significant growth in rental revenue, cash NOI and AFFO per Unit in 2025. In addition, we increased our cash distributions 2.2% in 2025 while still reducing our AFFO payout ratio compared to the prior year, demonstrating the positive impact of our acquisitions and contractual annual rent increases on our cash flows," said Milton Lamb, CEO of Automotive Properties REIT.

"We further strengthened our momentum for 2026 with our recent acquisition of a Hyundai dealership property in Québec City at the start of the year and our announcement today of our agreement to acquire a Rivian-tenanted property in Vista, San Diego County, California," continued Mr. Lamb. "We are well positioned to continue advancing our growth strategy to build value for unitholders."

Q4 2025 Highlights                               

  • The REIT generated AFFO per Unit1 of $0.251 (diluted) and paid regular cash distributions of $0.206 per Unit (as defined below) in Q4 2025, representing an AFFO payout ratio1 of approximately 82.1%. For the comparable three-month period ended December 31, 2024 ("Q4 2024"), the REIT generated AFFO per Unit of $0.232 (diluted) and paid regular cash distributions of $0.201 per Unit, representing an AFFO payout ratio of approximately 86.6%.
  • The REIT had a Debt to Gross Book Value ("Debt to GBV")2 ratio of 45.9% as at December 31, 2025, and had $73.3 million of undrawn capacity under its revolving credit facilities, $0.7 million of cash on hand, and nine unencumbered properties with an aggregate value of approximately $117.0 million. As at the date of this news release, the REIT has approximately $102.3 million of undrawn capacity under its revolving credit facilities and 10 unencumbered properties with an aggregate value of approximately $130.2 million.
  • On October 16, 2025, the REIT completed the acquisition of a portfolio of three automotive dealership properties located in Dorval, Québec, a suburb of Montreal (the "Des Sources Properties"), for a purchase price of approximately $52.5 million. The REIT funded the purchase price for the acquisition of the Des Sources Properties through an interest-only $31.5 million vendor take-back mortgage with an affiliate of the vendor at an interest rate of 4.5% for a term of five years, with the balance funded by the REIT's credit facilities.
  • On October 23, 2025, REIT completed a "bought deal" public offering (the "Public Offering") of 3,070,000 units of the REIT ("REIT Units" and, together with the Class B LP Units, the "Units") at a price of $11.11 per REIT Unit (the "Offering Price") to a syndicate of underwriters for gross proceeds of approximately $34.1 million. Concurrently, the REIT completed a private placement of 1,442,844 REIT Units at the Offering Price to a member of the Dilawri Group (the "Dilawri Subscriber") for gross proceeds of approximately $16.0 million (together with the Public Offering, the "Offering").
  • On October 28, 2025, the REIT completed the sale of an additional 428,200 REIT Units at the Offering Price to the syndicate of underwriters pursuant to the partial exercise of an over-allotment option granted to the underwriters. Concurrently, the REIT also completed the sale of an additional 201,247 REIT Units at the Offering Price to the Dilawri Subscriber pursuant to the exercise of an option granted to the Dilawri Subscriber. The exercise of these options increased the total gross proceeds from the Offering to approximately $57.1 million.
  • On October 29, 2025, the REIT acquired a Honda dealership property located in Île-Perrot, Québec (the "Honda Île-Perrot Property") for a purchase price of approximately $4.8 million. The REIT funded the purchase price for the acquisition of the Honda Île-Perrot Property with cash on hand.

____________________

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.

Subsequent Events – Property Acquisitions                    

  • On January 1, 2026, the REIT acquired a Hyundai dealership property located at 300 Boulevard Louis-XIV in Québec City (the "Québec City Hyundai Property") for a purchase price of approximately $13.25 million. The REIT funded the acquisition of the Québec City Hyundai Property by drawing on its revolving credit facilities.
  • Today, the REIT announced an agreement to purchase an automotive and service property located at 3280 Corporate View in Vista, San Diego County, California (the "Vista Property") from a third party for a purchase price of US$16.0 million. The Vista Property is tenanted by Rivian LLC under a mid-term, net lease that includes contractual fixed annual rent increases with renewal options. The Vista Property consists of an approximately 59,828 square-foot Rivian sales, delivery and service facility that is situated on approximately 3.75 acres of land. The acquisition of the Vista Property is expected to close during the first half of 2026. The REIT expects to fund the purchase price for the acquisition of the Vista Property by drawing on its revolving credit facilities.

Financial Results Summary           


Three months ended
December 31,


12 months ended
December 31,








($000s, except per Unit amounts)

2025

2024

Change

2025

2024

Change


Rental revenue (1)

$27,935

$23,415

19.3 %

$101,835

$93,876

8.5 %


NOI (2)

23,674

19,765

19.8 %

85,880

79,329

8.3 %


Cash NOI (2)

23,235

19,585

18.6 %

84,846

78,269

8.4 %


Same Property Cash NOI (1) (2)

19,772

19,401

1.9 %

78,367

76,749

2.1 %


Net Income (3)

14,923

12,046

23.9 %

44,579

72,001

-38.1 %


Net Income and Other Comprehensive Income (3)

13,928

12,046

15.6 %

43,226

72,001

-40.0 %


FFO (2)

14,302

11,874

20.4 %

52,632

47,879

9.9 %


AFFO (2)

13,845

11,682

18.5 %

51,569

46,810

10.2 %


Distributions per Unit

0.206

0.201

0.005

0.813

0.804

0.009










FFO per Unit - basic (2) (4)

0.266

0.242

0.024

1.046

0.976

0.070


FFO per Unit - diluted (2) (5)

0.259

0.236

0.023

1.019

0.953

0.066










AFFO per Unit - basic (2) (4)

0.257

0.238

0.019

1.025

0.954

0.071


AFFO per Unit - diluted (2) (5)   

0.251

0.232

0.019

0.998

0.932

0.066


Ratios (%)







FFO payout ratio (2)

79.4 %

85.2 %

-5.8 %

79.8 %

84.4 %

-4.6 %


AFFO payout ratio (2)

82.1 %

86.6 %

-4.5 %

81.5 %

86.3 %

-4.8 %


Debt to GBV (6)

45.9 %

42.4 %

3.5 %

45.9 %

42.4 %

3.5 %


(1)

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.

(2)

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 Q4 2024, thus removing the impact of acquisitions and dispositions.

(3)

Net Income and Net Income and Other Comprehensive Income for Q4 2025 includes changes in fair value adjustments of $0.4 million for Class B LP Units, Deferred Units ("DUs"), Income Deferred Units ("IDUs"), Performance Deferred Units ("PDUs") and Restricted Deferred Units ("RDUs"), $3.5 million for interest rate swaps and $3.2 million for investment properties. Net Income and Net Income and Other Comprehensive Income for 2025 includes changes in fair value adjustments of $0.9 million Class B LP Units, DUs, IDUs, PDUs and RDUs, $1.2 million for interest rate swaps and foreign exchange forward contracts and $6.8 million for investment properties. Please refer to the consolidated financial statements of the REIT and the notes thereto for additional information.

(4)

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 Q4 2025 was 53,807,165.

(5)

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 Q4 2025 was 55,258,531.

(6)

Debt to GBV is a supplementary financial measure. See "Non-IFRS Financial Measures" at the end of this news release.

Rental revenue was $27.9 million in Q4 2025 and $101.8 million in 2025, representing increases of 19.3% and 8.5%, respectively, from Q4 2024 and the year ended December 31, 2024 ("2024"). Increased rental revenue in Q4 2025 and 2025 reflected growth from the properties acquired during and subsequent to Q4 2024 and contractual rent increases, partially offset by the reduction of rent from the sale of the automotive dealership property located at 8210 and 8220 Kennedy Road and 7 and 13/15 Main Street, in Markham, Ontario (collectively, the "Kennedy Lands") in October 2024.

The REIT generated total Cash NOI of $23.2 million in Q4 2025 and $84.8 million in 2025, representing increases of 18.6% and 8.4%, respectively, from Q4 2024 and 2024. The increases were primarily attributable to the properties acquired during and subsequent to Q4 2024 and contractual rent increases, partially offset by the reduction of rent from the sale of the Kennedy Lands. Same Property Cash NOI was $19.8 million in Q4 2025 and $78.4 million in 2025, representing increases of 1.9% and 2.1%, respectively, from Q4 2024 and 2024. The increases were primarily attributable to contractual rent increases.

The REIT recorded net income and other comprehensive income of $13.9 million in Q4 2025, compared to $12.0 million in Q4 2024. Net income and other comprehensive income was $43.2 million in 2025, compared to $72.0 million in 2024. The positive variance in Q4 2025 was primarily due to higher NOI and a change in the non-cash fair value adjustment for interest rate swaps, partially offset by higher interest costs and changes in non-cash fair value adjustments for investment properties and for Class B LP Units, DUs, IDUs, PDUs and RDUs (collectively "Unit-based compensation"). The negative variance in 2025 was primarily attributable to changes in non-cash fair value adjustments for investment properties and investment properties held for sale, and for Class B LP Units and Unit-based compensation, partially offset by higher NOI and changes in the fair value of the interest rate swaps. The impact of the movement in the traded value of the REIT Units resulted in an increase in fair value adjustment for Class B LP Units and Unit-based compensation of $0.4 million in Q4 2025 (2025 – decrease of $0.1 million), compared to an increase of $1.6 million in Q4 2024 (2024 – increase of $9.1 million).

FFO in Q4 2025 increased by 20.4% to $14.3 million, or $0.259 per Unit (diluted), compared to $11.9 million, or $0.236 per Unit (diluted) in Q4 2024. FFO in 2025 increased by 9.9% to $52.6 million, or $1.019 per Unit (diluted) compared to $47.9 million, or $0.953 per Unit (diluted), in 2024. The increases in FFO in Q4 2025 and 2025 reflected the impact of the properties acquired during and subsequent to Q4 2024 and contractual rent increases, partially offset by the reduction of rent from the sale of the Kennedy Lands. The increase to FFO in 2025 was also partially offset by increased G&A expense.

AFFO in Q4 2025 increased 18.5% to $13.8 million, or $0.251 per Unit (diluted), compared to $11.7 million, or $0.232 per Unit (diluted), in Q4 2024. AFFO in 2025 increased 10.2% to $51.6 million, or $0.998 per Unit (diluted), compared to $46.8 million, or $0.932 per Unit (diluted), in 2024. The increases in AFFO in Q4 2025 and 2025 were primarily attributable to the impact of the properties acquired during and subsequent to Q4 2024 and contractual rent increases, partially offset by the reduction of rent from the sale of the Kennedy Lands. Straight-line rent adjustment is excluded from the calculation of AFFO.

Adjusted Cash Flow from Operations ("ACFO")3 for 2025 was $53.2 million, an increase of 3.9% compared to $51.2 million in 2024. The increase was primarily attributable to properties acquired during and subsequent to 2024 and contractual rent increases, partially offset by the reduction of rent from the sale of the Kennedy Lands.

Cash Distributions

For Q4 2025, the REIT declared and paid regular cash distributions of $11.32 million, or $0.206 per Unit, representing an AFFO payout ratio of 82.1%. For 2025, the REIT declared and paid regular cash distributions of $41.14 million, or $0.813 per Unit, representing an AFFO payout ratio of 81.5%. The comparable AFFO payout ratios were 86.6% in Q4 2024 and 86.3% in 2024, respectively. The AFFO payout ratios were lower in Q4 2025 and 2025, primarily due to the positive impact of the properties acquired during and subsequent to Q4 2024 and contractual rent increases, partially offset by the reduction of rent from the sale of the Kennedy Lands and the increase to the REIT's unitholder distributions that was effective for the August 2025 cash distribution. The regular cash distributions noted above exclude the cash portion of the special distribution (the "Special Distribution") that was paid to Unitholders of record as at December 31, 2024.

___________________

3 ACFO is a non-IFRS measure. See "Non-IFRS Financial Measures" at the end of this news release.

Liquidity and Capital Resources 

As at December 31, 2025, the REIT had a Debt to GBV ratio of 45.9%, $73.3 million of undrawn capacity under its revolving credit facilities, $0.7 million of cash on hand, and nine unencumbered properties with an aggregate value of approximately $117.0 million. As at the date of this news release, the REIT has approximately $102.3 million of undrawn capacity under its revolving credit facilities and 10 unencumbered properties with an aggregate value of approximately $130.2 million.

As at December 31, 2025, 80% of the REIT's debt was fixed with a weighted average interest rate of 4.47%, a weighted average interest rate swap term and mortgages remaining of 4.1 years, and a weighted average term to maturity of debt of 2.3 years. As at the date of this news release, on a trailing 12-month basis, the borrowing capacity under the REIT's three Credit Facilities increased by an aggregate amount of $140.0 million and the weighted average term to maturity of debt was extended to 2.7 years. As at the date of this news release, 87% of the REIT's debt is fixed.

Units Outstanding

As at December 31, 2025, there were 54,259,404 REIT Units and 833,333 Class B LP Units outstanding.

Outlook 

The REIT is subject to risks associated with inflation, interest rates, currency fluctuations and availability of capital. The REIT is actively monitoring the evolving trade tariff environment and other trade restrictions, and their impact on cross-border trade, material costs, and overall economic market conditions in Canada and the United States. While the full extent and impact of these trade tariffs and trade restrictions remains uncertain, the REIT is continuing to assess their potential effect on its business, property valuations and financial condition.

The Canadian and United States automotive and original equipment manufacturer dealership and service industry is highly fragmented, and the REIT expects continued consolidation over the mid to long term due to increased industry sophistication and growing capital requirements for owner operators, which encourages them to pursue increased economies of scale.

Financial Statements

The REIT's audited consolidated financial statements and related Management's Discussion & Analysis ("MD&A") for the year ended December 31, 2025 are available on the REIT's website at www.automotivepropertiesreit.ca and on SEDAR+ at www.sedarplus.ca.

Conference Call

Management of the REIT will host a conference call for analysts and investors on Thursday, March 5, 2026 at 9:00 a.m. (ET). To join the conference call without operator assistance, participants can register at https://registrations.events/easyconnect/9233614/recKBDUcjlr6k1s4s to receive an instant automated call back. Alternatively, they can dial (647) 932-3411 or (800) 715-9871 to reach a live operator who will join them into the call. A live and archived webcast of the call will be accessible via the REIT's website at www.automotivepropertiesreit.ca.

To access a replay of the conference call, dial (647) 362-9199 or (800) 770-2030, passcode: 9233614 #. The replay will be available until March 12, 2026.

About Automotive Properties REIT

Automotive Properties REIT is an unincorporated, open-ended real estate investment trust focused on owning and acquiring primarily income-producing automotive and other OEM dealership and service properties located in Canada and the United States. The REIT's portfolio currently consists of 92 income-producing commercial properties, representing approximately 3.4 million square feet of gross leasable area, in metropolitan markets across British Columbia, Alberta, Saskatchewan, Manitoba, Ontario and Québec in Canada, and Florida and Ohio in the United States. Automotive Properties REIT is the only public vehicle in Canada focused on consolidating automotive and OEM dealership and service real estate properties. For more information, please visit: www.automotivepropertiesreit.ca.

This news release contains forward-looking information within the meaning of applicable securities legislation, which reflects the REIT's current expectations regarding future events and in some cases can be identified by such terms as "will" and "expected". Forward-looking information includes the REIT's expectations with respect to the impact of changes in economic conditions, including changes in interest rates, currency fluctuation and the rate of inflation, and the impact of tariffs or other trade restrictions, including the impact of each of the foregoing on the REIT and its tenants, and the completion of the acquisition of the Vista Property, including the timing thereof and the benefits anticipated to be derived therefrom. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond the REIT's control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed under "Risks & Uncertainties, Critical Judgments & Estimates" in the REIT's MD&A for the year ended December 31, 2025 and under "Risk Factors" in the REIT's annual information form dated March 4, 2026, which are available on SEDAR+ ( www.sedarplus.ca ) and the REIT's website ( www.automotivepropertiesreit.ca ). The REIT does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. This forward-looking information speaks only as of the date of this news release.

Non-IFRS Financial Measures

This news release contains certain financial measures and ratios which are not defined under International Financial Reporting Standards ("IFRS") and may not be comparable to similar measures presented by other real estate investment trusts or enterprises. FFO, AFFO, FFO payout ratio, AFFO payout ratio, NOI, Cash NOI, Same Property Cash NOI and ACFO are key measures of performance used by the REIT's management and real estate businesses. Debt to GBV, a supplementary financial measure, is a measure of financial position defined by agreements to which the REIT is a party. These measures, as well as any associated "per Unit" amounts, are not defined by IFRS and do not have standardized meanings prescribed by IFRS, and therefore should not be construed as alternatives to net income or cash flow from operating activities calculated in accordance with IFRS. The REIT believes that AFFO is an important measure of economic earnings performance and is indicative of the REIT's ability to pay distributions from earnings, while FFO, NOI, Cash NOI and Same Property Cash NOI are important measures of operating performance of real estate businesses and properties. The IFRS measurement most directly comparable to FFO, AFFO, NOI, Cash NOI and Same Property Cash NOI is net income. ACFO is a supplementary measure used by management to improve the understanding of the operating cash flow of the REIT. The IFRS measurement most directly comparable to ACFO is cash flow from operating activities. For reconciliations of NOI, FFO, AFFO and Cash NOI to net income and comprehensive income, and ACFO to cash flow from operating activities, please see the tables below. For further information regarding these non-IFRS measures and supplementary financial measures, please refer to Section 1 "General Information and Cautionary Statements – Non-IFRS Financial Measures" and Section 6 "Non-IFRS Financial Measures" in the REIT's MD&A for the year ended December 31, 2025 which is incorporated by reference herein and is available on the REIT's website at www.automotivepropertiesreit.ca  and on SEDAR+ at www.sedarplus.ca .

Reconciliation of NOI, Cash NOI, FFO and AFFO


Three Months Ended
December 31,


12 Months Ended
December 31,


($000s, except per Unit amounts)

2025

2024

Variance

2025

2024

Variance 

Calculation of NOI







Property revenue

$27,935

$23,415

$4,520

$101,835

$93,876

$7,959

Property costs

(4,261)

(3,650)

(611)

(15,955)

(14,547)

(1,408)

NOI (including straight‑line adjustments)

$23,674

$19,765

$3,909

$85,880

$79,329

$6,551

Adjustments:







Land lease payments

(99)

(86)

(13)

(397)

(384)

(13)

Straight‑line adjustment

(340)

(94)

(246)

(637)

(676)

39

Cash NOI

$23,235

$19,585

$3,650

$84,846

$78,269

$6,577

Reconciliation of net income to FFO and AFFO







Net income

$14,923

$12,046

$2,877

$44,579

$72,001

$(27,422)

Adjustments:







Change in fair value — Interest rate swaps and foreign exchange translation adjustment

(3,523)

47

(3,570)

1,218

9,810

(8,592)

Distributions on Class B LP Units

171

-

171

228

3,125

(2,897)

Change in fair value - Unit-based compensation

(441)

(1,582)

1,141

86

(9,096)

9,182

Change in fair value — investment properties

3,246

1,441

1,805

6,821

(27,664)

34,485

ROU asset net balance of depreciation/interest and lease payments

(74)

(78)

4

(300)

(297)

(3)

FFO

$14,302

$11,874

$2,428

$52,632

$47,879

$4,753

Adjustments:







Straight‑line adjustment 

(340)

(94)

(246)

(637)

(676)

39

Capital expenditure reserve

(117)

(98)

(19)

(426)

(393)

(33)

AFFO

$13,845

$11,682

$2,163

$51,569

$46,810

$4,759

Number of Units outstanding (including Class B LP Units)

55,092,737

49,090,142

6,002,595

55,092,737

49,090,142

6,002,595

Weighted average Units Outstanding — basic

53,807,165

49,090,142

4,717,023

50,305,063

49,068,183

1,236,880

Weighted average Units Outstanding — diluted

55,258,531

50,297,193

4,961,338

51,671,036

50,235,796

1,435,240

FFO per Unit – basic(1) 

$0.266

$0.242

$0.024

$1.046

$0.976

$0.070

FFO per Unit – diluted(2) 

$0.259

$0.236

$0.023

$1.019

$0.953

$0.066

AFFO per Unit – basic(1)

$0.257

$0.238

$0.019

$1.025

$0.954

$0.071

AFFO per Unit – diluted(2)

$0.251

$0.232

$0.019

$0.998

$0.932

$0.066

Distributions per Unit (3)

$0.206

$0.201

$0.005

$0.813

$0.804

$0.009

FFO payout ratio (3)

79.4 %

85.2 %

5.8 %

79.8 %

84.4 %

4.6 %

AFFO payout ratio (3)

82.1 %

86.6 %

4.5 %

81.5 %

86.3 %

4.8 %










(1)

FFO 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 REIT Units and Class B LP Units.

(2)

FFO 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 REIT Units, Class B LP Units and Unit-based compensation granted to independent trustees and management of the REIT.

(3)

Distributions per Unit, FFO payout ratio and AFFO payout ratio exclude the cash portion of the Special Distribution.

Same Property Cash Net Operating Income


Three Months Ended
December 31,


12 Months Ended
December 31,



2025

2024

Variance

2025

2024

Variance

Same property base rental revenue

$19,871

$19,500

$371

$78,764

$77,133

$1,631

Land lease payments

(99)

(99)

-

(397)

(384)

(13)

Same Property Cash NOI

$19,772

$19,401

$371

$78,367

$76,749

1,618










Reconciliation of Cash Flow from Operating Activities to ACFO 

              12 Months Ended December 31,



($000s)

2025

2024

Variance 

Cash flow from operating activities

$80,893

$75,914

$4,979

Change in non-cash working capital

(929)

570

(1,499)

Interest paid

(25,010)

(24,016)

(994)

Amortization of financing fees

(1,234)

(874)

(360)

Amortization of indemnification fees

(27)

(144)

117

Net interest expense and other financing charges in excess of interest paid

(104)

112

(216)

Capital expenditure reserve

(426)

(393)

(33)

ACFO

$53,163

$51,169

$1,994

ACFO payout ratio

77.40 %

77.10 %

0.30 %






SOURCE Automotive Properties Real Estate Investment Trust