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REIT reports strong leasing activity across portfolio, driving 7.1% growth in Q2-2026 Same Property NOI while maintaining above market occupancy levels.
TORONTO, Aug. 13, 2026 /CNW/ -- True North Commercial Real Estate Investment Trust (TSX: TNT.UN) (the "REIT") today announced its financial results for the three months ended June 30, 2026 ("Q2-2026") and six months ended June 30, 2026 ("YTD-2026").
"The REIT delivered strong same property NOI growth during the quarter, supported by robust leasing activity and high occupancy across the portfolio," said Daniel Drimmer, the REIT's Chief Executive Officer. "During the quarter, we completed approximately 70,000 square feet of leasing activity, with new leases achieved at an average term of approximately 11 years. These results reflect the strength of our tenant relationships and the quality of our portfolio. Management remains focused on building on this momentum through continued tenant engagement, disciplined capital allocation and initiatives that support long-term value creation for our unitholders."
Q2-2026 highlights
-- The REIT's core portfolio occupancy(1) at the end of Q2-2026 was
approximately 96% with a weighted average lease term ("WALT")(1) of 4.2
years.
-- The REIT contractually leased or renewed approximately 69,900 square feet
with a WALT of 8.4 years achieving positive leasing spreads on renewals
of 1.3% for Q2-2026.
-- Revenue decreased from $28,116 in three months ended June 30, 2025
("Q2-2025") to $27,850 in Q2-2026 representing a 0.9% decrease primarily
due to a reduction in the REIT's Ottawa market occupancy in Q2-2026
relative to same period last year as a result of a strategically executed
early lease termination completed in three months ended December 31, 2025
("Q4-2025") with the property since being classified as held for sale.
Excluding the Ottawa property, revenue would have increased by 5.3% in
Q2-2026 relative to Q2-2025 primarily as a result of strong leasing
activity in 2025 and early 2026 and the impact of contractual rent
increases.
-- Q2-2026 same property net operating income ("Same Property
NOI")(1) excluding assets held for sale increased by approximately 7.1%
compared to the same period in 2025, primarily attributable to strong
leasing activity throughout the portfolio. Excluding the impact of
termination income and free rent in both periods, Same Property NOI in
Q2-2026 would have increased by approximately 5.8%. The REIT continues to
focus on leasing activity and continues to maintain above market
occupancy levels across its portfolio.
-- Q2-2026 net loss and comprehensive loss improved by $8,829 or 74.0%
compared to same period in 2025, primarily due to lower fair value loss
on investment properties and investment properties held for sale.
-- The REIT's Q2-2026 funds from operations ("FFO")(1) and adjusted funds
from operations ("AFFO")(1) increased by $873 and $1,028, respectively
when compared to the same period in 2025 primarily due to increase in
Same Property NOI as well as the impact of dispositions in late 2025 of
primarily vacant buildings which had a negative impact on FFO and AFFO
during Q2-2025. These increases were partially offset by an increase in
interest costs related to increases in the REIT's weighted average
interest rate from the refinancing activity completed throughout 2025.
-- FFO basic and diluted per trust units ("Unit")(1) increased from $0.45 in
Q2-2025 to $0.51 in Q2-2026 and AFFO basic and diluted per
Unit(1) increased from $0.42 in Q2-2025 to $0.49 in Q2-2026, respectively,
due to the reasons outlined above for the changes in FFO and AFFO.
-- On April 23, 2026, the REIT renewed the 2025 normal course issuer bid
("2026 NCIB"), as approved by the TSX. Under the 2026 NCIB, the REIT has
the ability to purchase for cancellation up to a maximum of 1,235,415 of
its Units, representing 10% of the REIT's public float of 12,354,156
Units as of April 9, 2026 through the facilities of the TSX or through a
Canadian alternative trading system and in accordance with applicable
regulatory requirements at a price per Unit equal to the market price at
the time of acquisition.
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(1) This is a non-IFRS financial measure, refer to "Non-IFRS
measures". Represents occupancy, excluding assets
held for sale and WALT.
YTD highlights
-- The REIT contractually leased and renewed approximately 179,900 square
feet with a WALT of 7.5 years and a 3.5% increase over expiring base
rents.
-- Revenue decreased from $59,202 in six months ended June 30, 2025
("YTD-2025") to $57,680 in YTD-2026 representing a 2.6% decrease
primarily attributable to termination income recognized in Q1-2025
related to a Greater Toronto Area ("GTA") vacancy that has since been
re-leased, commencing in 2027. Excluding the $1,314 of termination income
included in YTD-2025 and the impact of the Ottawa property noted above
for Q2-2026, YTD-2026 revenue would have increased by 6.8% in YTD-2026
relative to YTD-2025 primarily as a result of strong leasing activity in
2025 and early 2026 and the impact of contractual rent increases.
-- YTD-2026 Same Property NOI decreased by 0.6% compared to the same period
in 2025 primarily attributable to the $1,314 of early termination income
recognized in YTD-2025. Excluding the termination income and the held for
sale assets, Same Property NOI would have increased by 2.9%. The REIT
continues to focus on leasing activity and continues to maintain above
market occupancy levels across its portfolio.
-- YTD-2026 net loss and comprehensive loss improved by $8,803 or 77.5%
compared to same period in 2025, primarily due to lower fair value loss
on investment properties and investment properties held for sale.
-- The changes in YTD-2026 FFO relative to YTD-2025 were relatively
consistent with those noted above for Q2-2026 changes in FFO. YTD-2026
AFFO declined relative to YTD-2025 as a result of a reduction in the
non-cash straight line rent adjustment added back to AFFO between the two
periods partially offset by the items noted above for FFO changes between
the two periods.
-- FFO basic and diluted per Unit increased from $1.01 and $1.00 in YTD-2025
to $1.02 and $1.01 in YTD-2026 while AFFO basic and diluted per Unit
decreased from $0.99 and $0.98 in YTD-2025 to $0.94 and $0.93 in
YTD-2026, respectively, due to the reasons outlined above for the changes
in FFO and AFFO. Excluding the termination income amounts recorded in
YTD-2025, YTD-2026 diluted AFFO would have increased by approximately
4.3% or $0.04 per Unit relative to YTD-2025.
-- During YTD-2026, the REIT successfully completed the refinancing of
$47,025 for debt maturing in 2026 at a weighted average interest rate of
4.74% and weighted average term of 5.00 years. The REIT has commenced the
process of renewing the remaining 2026 debt maturities and is in the
final stages of extending a majority of these loans with most being with
lenders who the REIT has strong and longstanding relationships with. The
REIT continues to focus on proactively managing its debt maturity profile
to strengthen the REIT's financial position.
Key performance indicators
Q2-2026 Q2-2025 YTD-2026 YTD-2025
Number of properties(1) 37 39
Portfolio gross leasable 4,407,100 sf 4,470,800 sf
area ("GLA")(1)
Occupancy(1)(2) 96 % 93 %
WALT(1) 4.2 years 4.2 years
Revenue from government and
credit rated tenants(1) 73 % 74 %
Revenue $ 27,850 $ 28,116 $ 57,680 $ 59,202
Net operating income
("NOI")(3) 13,480 13,803 27,041 28,468
Net loss and comprehensive
loss (3,098) (11,927) (2,561) (11,364)
Same Property NOI(4) 17,566 17,490 34,475 36,846
FFO $ 7,372 $ 6,499 $ 14,728 $ 14,581
FFO per Unit - basic 0.51 0.45 1.02 1.01
FFO per Unit - diluted 0.51 0.45 1.01 1.00
AFFO $ 7,063 $ 6,035 $ 13,570 $ 14,264
AFFO per Unit - basic 0.49 0.42 0.94 0.99
AFFO per Unit - diluted 0.49 0.42 0.93 0.98
AFFO payout ratio -
diluted(3) 36 % 41 % 37 % 23 %
Distributions declared $ 2,486 $ 2,483 $ 4,970 $ 3,311
(1) This is presented as at the end of the applicable
reporting period, rather than for the quarter.
(2) Represents same property occupancy excluding assets
classified as held for sale as at June 30, 2026. The
REIT's occupancy for all assets owned as at the end
of each reporting period (including any held for sale
assets) was 90% as at the end of Q2-2026 (Q2-2025
- 89%).
(3) This is a non-IFRS financial measure, refer to
"Non-IFRS measures".
(4) Represents Same Property NOI including assets
classified as held for sale during Q2-2026 and Q2-2025.
Same Property NOI excluding assets classified as held
for sale have been presented separately in this press
release.
Operating results