Choice Properties targets 2026 annual FFO per unit diluted of C$1.08 to C$1.10
Company expects 2%-3% yr-over-yr growth in 2026 Same-Asset NOI, Cash Basis
Choice Properties targets Adjusted Debt to EBITDAFV below 7.5x in 2026
Overview
Canada real estate investment trust's Q2 FFO per unit rose 0.8% yr/yr
Same-asset NOI, cash basis, grew 2.8% in Q2
Net loss widened due to non-cash fair value adjustments on exchangeable units
Analyst coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 6 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the commercial reits peer group is "buy"
Wall Street's median 12-month price target for Choice Properties Real Estate Investment Trust is C$16.50, about 1.3% above its July 21 closing price of C$16.29
The stock recently traded at 18 times the next 12-month earnings vs. a P/E of 14 three months ago
Result drivers and key details
Leasing spreads - Co said robust leasing spreads and tenant demand, especially in the industrial portfolio, supported results
FFO increased - Driven by strong same-asset net operating income growth, partially offset by higher interest expense primarily due to new debt issuances over the past twelve months bearing interest at higher rates than maturing debt, as well as a higher average debt balance
Segment performance - Same-asset NOI rose 2.8%, with industrial up 5.8% and retail growth affected by a tenant bankruptcy
Occupancy and repositioning - Occupancy dipped due to strategic repositioning and expiry of non-operational retail space
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