Choice Properties REIT Reports 2025 Full-Year Results, Raises Distribution Amid Strong Retail and Industrial Real Estate Demand

Choice Properties (TSX: CHP.UN) on Feb. 18, 2026, reported consolidated financial results for the quarter and year ended Dec. 31, 2025, posting funds from operations (FFO) per unit diluted of $1.069 for the full year — a 3.6% increase over the prior year — and announcing a fourth consecutive annual distribution increase.

The Toronto-based REIT attributed the performance to sustained tenant demand across its grocery-anchored retail real estate and well-located industrial real estate assets, which together drove improved occupancy and cash flow growth throughout the year.

"Choice Properties delivered strong operational and financial results in the fourth quarter and throughout 2025. Our high-quality portfolio of grocery anchored centres and well-located industrial assets continued to benefit from strong tenant demand, driving improved occupancy and cash flow growth," said Rael Diamond, President and Chief Executive Officer of the Trust. "The strength of our balance sheet and our disciplined approach to operations, capital recycling, and development execution position us for continued stability and growth in line with our proven strategy for long-term value creation. Looking ahead, we remain confident in our business and are pleased to announce our fourth consecutive annual distribution increase for unitholders."

Retail and Industrial Real Estate Drive Occupancy Gains

Choice Properties ended the year with a portfolio-wide occupancy rate of 98.2%. By asset class, retail real estate occupancy reached 98.0%, industrial real estate occupancy stood at 98.8%, and mixed-use and residential properties registered 93.7%.

Same-Asset net operating income (NOI) on a cash basis grew 2.2% for the full year, while Total NOI on a cash basis increased 4.7%.

For the fourth quarter specifically, Same-Asset NOI on a cash basis grew 2.4% and Total NOI on a cash basis grew 4.4%. FFO per unit diluted for Q4 came in at $0.262, representing 0.8% year-over-year growth. Long-term renewal leasing spreads for the quarter reached 21.5%.

Real Estate Development and Capital Recycling Activity

In Q4, Choice Properties delivered $160.5 million of development projects, adding approximately 600,500 square feet of new commercial GLA on a proportionate share basis. Notable among these was a 530,000-square-foot logistics facility at Choice Caledon Business Park, completed during the fourth quarter.

Choice Properties also completed $261.3 million of real estate transactions on a proportionate share basis in Q4, reflecting continued portfolio management activity through acquisitions and dispositions.

Net Loss Driven by Fair Value Adjustments, Not Operating Performance

Despite strong operational metrics, Choice Properties reported a full-year net loss of $61.2 million, compared to net income of $784.4 million in the prior year. The Trust reported a Q4 net loss of $53.4 million, compared to net income of $791.9 million in the same quarter of the prior year.

The Trust attributed the swing primarily to an unfavorable fair value adjustment in its Exchangeable Units, compared with a favorable adjustment recorded in the prior year. The non-cash nature of the adjustment means it did not affect FFO, which the Trust uses as a measure of operating performance.

Distribution Increase

Choice Properties announced a fourth consecutive annual distribution increase. The specific per-unit amount of the new distribution was not detailed in the available source material beyond the headline reference to $0.78.

The Trust's Annual Report to Unitholders is available in the Investors section of its website at www.choicereit.ca and has been filed on SEDAR+ at www.sedarplus.ca.