Colonial Coal International Corp. press release

Granite REIT Announces 2026 First Quarter Results

2026-05-06

TSXV - TSX Venture Exchange · Coal · Sulfur · Canada

Granite Real Estate Investment Trust (TSX: GRT.UN) ("Granite" or the "Trust") announced today its condensed consolidated results for the three month period ended March 31, 2026.

FIRST QUARTER 2026 HIGHLIGHTS

Highlights for the three month period ended March 31, 2026 are set out below:

Financial:

Granite's net operating income ("NOI") was $134.2 million in the first quarter of 2026 compared to $125.7 million in the prior year period, an increase of $8.5 million primarily as a result of new and renewal leasing activity mostly in Canada and the United States, contractual rent adjustments and consumer price index based increases across the portfolio, and the acquisitions of eight income-producing properties in the United States and the United Kingdom beginning in the second quarter of 2025, partially offset by the dispositions of five income-producing properties beginning in the fourth quarter of 2025; Constant currency same property NOI - cash basis (4) increased by 8.3% for the first quarter of 2026; Funds from operations ("FFO") (1) was $95.8 million ($1.57 per unit) in the first quarter of 2026 compared to $91.0 million ($1.46 per unit) in the first quarter of 2025; Adjusted funds from operations ("AFFO") (2) was $85.9 million ($1.41 per unit) in the first quarter of 2026 compared to $88.4 million ($1.41 per unit) in the first quarter of 2025; During the three month period ended March 31, 2026, the Canadian dollar strengthened against the US dollar, and weakened against the Euro compared to the prior year period. The impact of foreign exchange on FFO and AFFO for the three month period ended March 31, 2026, relative to the same period in 2025, was unfavourable by $0.02 per unit for each measure; AFFO payout ratio (3) was 63% for the first quarter of 2026 compared to 60% in the first quarter of 2025; Granite recognized $7.3 million in net fair value gains on investment properties in the first quarter of 2026, primarily attributable to increases in fair market rents, partially offset by the expansion in discount and terminal capitalization rates at select U.S. properties. The value of investment properties was increased by unrealized foreign exchange gains of $81.4 million in the first quarter of 2026 primarily resulting from the relative weakening of the Canadian dollar against the US dollar, partially offset by the slight strengthening of the Canadian dollar against the Euro as at March 31, 2026 compared to December 31, 2025; and Granite's net income attributable to unitholders in the first quarter of 2026 was $91.2 million compared to $43.9 million in the prior year period primarily due to a $55.5 million favourable change in fair value adjustments on investment properties and an $8.5 million increase in net operating income as noted above, partially offset by a $10.8 million increase in income tax expense, a $3.2 million increase in general and administrative expenses, and a $1.7 million increase in loss on sale of investment properties.

Investments:

As previously announced on February 25, 2026, on January 30, 2026, Granite completed the disposition of a 0.2 million square foot income-producing property in Netherlands that was classified as held for sale as at December 31, 2025, for gross proceeds of $37.6 million; On March 11, 2026, Granite completed the disposition of a 1.0 million square foot income-producing property in the United States for gross proceeds of $104.5 million; and As at March 31, 2026, two income-producing properties located in the United States and Canada were classified as assets held for sale with a fair value of $57.7 million.

Operations:

In-place occupancy as at March 31, 2026 was 97.5%, representing a decrease of 50 basis points relative to in-place occupancy as at December 31, 2025 and an increase of 270 basis points relative to in-place occupancy as at March 31, 2025. Committed occupancy as at May 6, 2026 is 98.3%; During the first quarter of 2026, Granite achieved average rental rate spreads of 23% over expiring rents representing approximately 1.1 million square feet of new leases and renewals taking effect in the quarter; and Subsequent to March 31, 2026, Granite executed a lease commencing in the second quarter of 2026 for approximately 225,000 square feet of previously vacant space at a property in Columbus, Ohio for a 60-month term with a North American third-party logistics company. Following this lease execution, the approximately 478,000 square foot building will now be fully occupied for the quarter ending June 30, 2026.

Financing:

On March 24, 2026, Morningstar DBRS confirmed Granite REIT Holdings Limited Partnership's Issuer Rating and credit ratings on its debentures at BBB (high) and changed the trends to Positive from Stable; and Subsequent to March 31, 2026, Granite issued 65,100 units under its at-the-market equity distribution program at an average unit price of $93.67 for gross proceeds of $6.1 million excluding issuance costs.

| GRANITE’S FINANCIAL AND OPERATING HIGHLIGHTS | | | | | | | | | | | | | | | | | | | Three Months Ended March 31, | | | | | | | | (in millions, except as noted) | 2026 | | 2025 | | | | | | Revenue | $ | 165.8 | | | $ | 154.7 | | | Net operating income ("NOI") | $ | 134.2 | | | $ | 125.7 | | | NOI - cash basis (4) | $ | 131.2 | | | $ | 123.0 | | | Constant currency same property NOI - cash basis (4) | | 8.3 | % | | | 4.7 | % | | Net income attributable to unitholders | $ | 91.2 | | | $ | 43.9 | | | Funds from operations ("FFO") (1) | $ | 95.8 | | | $ | 91.0 | | | Adjusted funds from operations ("AFFO") (2) | $ | 85.9 | | | $ | 88.4 | | | Diluted FFO per unit (1) | $ | 1.57 | | | $ | 1.46 | | | Diluted AFFO per unit (2) | $ | 1.41 | | | $ | 1.41 | | | Monthly distributions paid per unit | $ | 0.89 | | | $ | 0.85 | | | AFFO payout ratio (3) | | 63 | % | | | 60 | % | | | | | | | | | | | As at March 31, 2026 and December 31, 2025 | 2026 | | 2025 | | | | | | Fair value of investment properties | $ | 9,474.8 | | | $ | 9,478.4 | | | Assets held for sale (10) | $ | 57.7 | | | $ | 81.0 | | | Cash and cash equivalents | $ | 94.2 | | | $ | 139.6 | | | Total debt (5) | $ | 3,216.8 | | | $ | 3,422.1 | | | Net leverage ratio (6) | | 33 | % | | | 35 | % | | Indebtedness ratio (11)(12) | 6.8x | | | 7.3x | | | | | Number of income-producing properties | | 139 | | | | 141 | | | Gross leasable area (“GLA”), square feet | | 61.5 | | | | 62.6 | | | Occupancy, by GLA | | 97.5 | % | | | 98.0 | % | | Committed occupancy, by GLA (9) | | 98.3 | % | | | 98.6 | % | | Magna as a percentage of annualized revenue (8) | | 27 | % | | | 26 | % | | Magna as a percentage of GLA | | 20 | % | | | 19 | % | | Weighted average lease term in years, by GLA | | 5.3 | | | | 5.5 | | | Overall capitalization rate (7) | | 5.6 | % | | | 5.6 | % |

The above disclosure includes certain non-GAAP performance measures and non-GAAP ratios (see _"NON-GAAP PERFORMANCE MEASURES, RATIOS AND RECONCILIATIONS _"). A more detailed discussion of Granite’s condensed consolidated financial results for the three months ended March 31, 2026 and 2025 is contained in Granite's Management Discussion and Analysis of Operations and Financial Position ("MD&A") for the three months ended March 31, 2026 and the unaudited condensed consolidated financial statements for those periods and the notes thereto, which are available through the internet on the Canadian Securities Administrators’ System for Electronic Data Analysis and Retrieval Plus (“SEDAR+”) and can be accessed at www.sedarplus.ca .

2026 OUTLOOK

Granite is maintaining its 2026 guidance initially published on February 25, 2026. Granite’s current outlook reflects no material change to its assumptions regarding leasing activity, operations, asset dispositions and acquisitions, capital expenditures or financing plans. The high and low ranges are driven by foreign currency exchange rate assumptions which remain unchanged and are outlined in the table below.

The table below outlines Granite’s forecast for the year ending December 31, 2026:

Granite’s 2026 forecast assumes no favourable reversals of tax provisions relating to prior years which cannot be determined at this time. Non-GAAP performance measures are included in Granite’s 2026 forecast above (see “ _NON-GAAP PERFORMANCE MEASURES _”). See also “ _FORWARD-LOOKING INFORMATION _”.

CONFERENCE CALL

Granite will hold a conference call and live audio webcast to discuss its financial results. The conference call will be chaired by Kevan Gorrie, President and Chief Executive Officer.

To hear a replay of the webcast, please visit https://granitereit.com/events . The replay will be available for 90 days.

ANNUAL GENERAL MEETING OF UNITHOLDERS

Granite’s Annual General Meeting of Unitholders (the "Meeting") will take place on June 4, 2026 at 10:00 a.m. (ET) virtually by way of a live audio webcast. Unitholders can participate at the Meeting by joining the live audio webcast online at https://meetings.lumiconnect.com/400-283-114-610 . Refer to the “Voting Information and General Proxy Matters” within Granite’s Management Information Circular for detailed instructions on how to vote at the Meeting. The webcast of the Meeting will be archived on our website following the conclusion of the Meeting. Please refer to the Annual Meetings page at www.granitereit.com for additional details on the virtual Meeting.

OTHER INFORMATION

Additional property statistics as at March 31, 2026 have been posted to our website at https://granitereit.com/property-statistics-q 1 -202 6 . Copies of financial data and other publicly filed documents are available through the internet on SEDAR+, which can be accessed at www.sedarplus.ca .

Granite is a Canadian-based REIT engaged in the acquisition, development, ownership and management of logistics, warehouse and industrial properties in North America and Europe. Granite owns 145 investment properties representing approximately 61.5 million square feet of gross leasable area.

For further information, please see our website at www.granitereit.com or contact Teresa Neto, Chief Financial Officer, at (647) 925-7560.

NON-GAAP PERFORMANCE MEASURES, RATIOS AND RECONCILIATIONS

Readers are cautioned that certain terms used in this press release such as FFO, AFFO, FFO payout ratio, AFFO payout ratio, same property NOI - cash basis, constant currency same property NOI - cash basis, total debt and net debt, net leverage ratio, and any related per unit amounts used by management to measure, compare and explain the operating results and financial performance of the Trust do not have standardized meanings prescribed under IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards” or “GAAP”) and, therefore, should not be construed as alternatives to net income, cash provided by operating activities or any other measure calculated in accordance with IFRS Accounting Standards. Additionally, because these terms do not have a standardized meaning prescribed by IFRS Accounting Standards, they may not be comparable to similarly titled measures presented by other publicly traded entities.

| (1) | | FFO is a non-GAAP performance measure that is widely used by the real estate industry in evaluating the operating performance of real estate entities. Granite calculates FFO as net income attributable to unitholders excluding fair value gains (losses) on investment properties and financial instruments, gains (losses) on sale of investment properties including the associated current income tax, foreign exchange gains (losses) on certain monetary items not forming part of a net investment in a foreign operation, fair value remeasurement on deferred units, deferred income taxes, corporate restructuring costs and certain other items, net of non-controlling interests in such items. The Trust’s determination of FFO follows the definition prescribed by the Real Property Association of Canada (“REALPAC”) guidelines on Funds From Operations & Adjusted Funds From Operations for IFRS Accounting Standards dated January 2022 (“REALPAC Guidelines”) except for the exclusion of corporate restructuring costs. Granite considers FFO to be a meaningful supplemental measure that can be used to determine the Trust’s ability to service debt, fund capital expenditures and provide distributions to unitholders. FFO is reconciled to net income, which is the most directly comparable GAAP measure (see table below). FFO should not be construed as an alternative to net income or cash flow provided by operating activities determined in accordance with IFRS Accounting Standards. | | | | | | (2) | | AFFO is a non-GAAP performance measure that is widely used by the real estate industry in evaluating the recurring economic earnings performance of real estate entities after considering certain capital costs associated with sustaining such earnings. Granite calculates AFFO as net income attributable to unitholders including all adjustments used to calculate FFO and further adjusts for actual maintenance capital expenditures that are required to sustain Granite’s productive capacity, leasing costs such as leasing commissions and tenant allowances incurred and non-cash straight-line rent and tenant incentive amortization, net of non-controlling interests in such items. The Trust's determination of AFFO follows the definition prescribed by the REALPAC Guidelines except for the exclusion of corporate restructuring costs as noted above. Granite considers AFFO to be a meaningful supplemental measure that can be used to determine the Trust’s ability to service debt, fund expansion capital expenditures, fund property development and provide distributions to unitholders after considering capital costs associated with sustaining operating earnings. AFFO is also reconciled to net income, which is the most directly comparable GAAP measure (see table below). AFFO should not be construed as an alternative to net income or cash flow provided by operating activities determined in accordance with IFRS Accounting Standards. |

| | | Three Months Ended March 31, | | | | | | | (in millions, except per unit amounts) | | 2026 | 2025 | | | | | | Net income attributable to unitholders | | $ | 91.2 | | $ | 43.9 | | | Add (deduct): | | | | | | | | | Fair value (gains) losses on investment properties, net | | | (7.3 | ) | | 48.2 | | | Fair value gains on financial instruments, net | | | (0.1 | ) | | (0.1 | ) | | Loss on sale of investment properties | | | 1.7 | | | — | | | Deferred tax expense (recovery) | | | 9.9 | | | (0.3 | ) | | Fair value remeasurement of the Executive Deferred Unit Plan | | | 0.2 | | | (0.3 | ) | | Fair value remeasurement of the Directors Deferred Unit Plan | | | 0.1 | | | (0.3 | ) | | Non-controlling interests relating to the above | | | 0.1 | | | (0.1 | ) | | FFO | [A] | $ | 95.8 | | $ | 91.0 | | | Add (deduct): | | | | | | | | | Maintenance or improvement capital expenditures incurred | | | (5.1 | ) | | (0.4 | ) | | Leasing costs | | | (0.9 | ) | | (0.3 | ) | | Tenant allowances | | | (0.9 | ) | | — | | | Straight-line rent amortization | | | (3.0 | ) | | (1.9 | ) | | Non-controlling interests relating to the above | | | — | | | — | | | AFFO | [B] | $ | 85.9 | | $ | 88.4 | | | Basic FFO per unit | [A]/[C] | $ | 1.58 | | $ | 1.46 | | | Diluted FFO per unit | [A]/[D] | $ | 1.57 | | $ | 1.46 | | | Basic AFFO per unit | [B]/[C] | $ | 1.42 | | $ | 1.42 | | | Diluted AFFO per unit | [B]/[D] | $ | 1.41 | | $ | 1.41 | | | Basic weighted average number of units | [C] | | 60.6 | | | 62.3 | | | Diluted weighted average number of units | [D] | | 60.9 | | | 62.5 | |

| (3) | | The FFO and AFFO payout ratios are calculated as monthly distributions, which exclude special distributions, declared to unitholders divided by FFO and AFFO (non-GAAP performance measures), respectively, in a period. FFO payout ratio and AFFO payout ratio may exclude revenue or expenses incurred during a period that can be a source of variance between periods. The FFO payout ratio and AFFO payout ratio are supplemental measures widely used by investors in evaluating the sustainability of the Trust’s monthly distributions to unitholders. |

| | | Three Months Ended March 31, | | | | | | | (in millions, except as noted) | | 2026 | 2025 | | | | | | Monthly distributions declared to unitholders | [A] | $ | 53.8 | | $ | 52.8 | | | FFO | [B] | | 95.8 | | | 91.0 | | | AFFO | [C] | | 85.9 | | | 88.4 | | | FFO payout ratio | [A]/[B] | | 56 | % | | 58 | % | | AFFO payout ratio | [A]/[C] | | 63 | % | | 60 | % |

| (4) | | Same property NOI — cash basis refers to the NOI — cash basis (NOI excluding lease termination and close-out fees, and the non-cash impact from straight-line rent and tenant incentive amortization) for those properties owned by Granite throughout the entire current and prior year periods under comparison. Same property NOI — cash basis excludes properties that were acquired, disposed of, classified as development properties or assets held for sale during the periods under comparison. Granite believes that same property NOI — cash basis is a useful supplementary measure in understanding period-over-period organic changes in NOI — cash basis from the same stock of properties owned. |

| | | | Three Months Ended

March 31, | | | | | | | | | | | | Sq ft (1) (in millions) | | 2026 | 2025 | $ change | % change | | | | | | | | Revenue | | | $ | 165.8 | | $ | 154.7 | | 11.1 | | | | | Less: Property operating costs | | | | 31.6 | | | 29.0 | | 2.6 | | | | | NOI | | | $ | 134.2 | | $ | 125.7 | | 8.5 | | 6.8 | % | | Add (deduct): | | | | | | | | | | | | | | Lease termination and close-out fees | | | | — | | | (0.8 | ) | 0.8 | | | | | Straight-line rent amortization | | | | (3.0 | ) | | (1.9 | ) | (1.1 | ) | | | | NOI - cash basis | 62.1 | | $ | 131.2 | | $ | 123.0 | | 8.2 | | 6.7 | % | | Less NOI - cash basis for: | | | | | | | | | | | | | | Acquisitions | 1.6 | | | (4.3 | ) | | — | | (4.3 | ) | | | | Dispositions and assets held for sale | 3.4 | | | (0.7 | ) | | (6.2 | ) | 5.5 | | | | | Same property NOI - cash basis | 60.0 | | $ | 126.2 | | $ | 116.8 | | 9.4 | | 8.0 | % | | Constant currency same property NOI - cash basis (2) | 60.0 | | $ | 126.2 | | $ | 116.5 | | 9.7 | | 8.3 | % |

| (1) | | The square footage relating to the NOI — cash basis represents GLA of 62.1 million square feet as at March 31, 2026. The square footage relating to the same property NOI — cash basis represents the aforementioned GLA excluding the impact from the acquisitions, dispositions, assets held for sale and developments during the relevant period. | | (2) | | Constant currency same property NOI - cash basis is calculated by converting the comparative same property NOI - cash basis at current period average foreign exchange rates. |

| (5) | | Total debt is calculated as the sum of all current and non-current debt, the net mark to market fair value of derivatives and lease obligations. Net debt subtracts cash and cash equivalents from total debt. Granite believes that it is useful to include the derivatives and lease obligations for the purposes of monitoring the Trust’s debt levels. | | | | | | (6) | | The net leverage ratio is calculated as net debt (a non-GAAP performance measure defined above) divided by the fair value of investment properties (excluding assets held for sale). The net leverage ratio is a non-GAAP ratio used in evaluating the Trust’s degree of financial leverage, borrowing capacity and the relative strength of its balance sheet. |

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