North America Home Finance Inc. (CSE: NAHF) announced its audited financial results for the fiscal year ended June 30, 2026, reporting total assets of $142.88 million, a 25% increase from the prior year. The company recorded a fair value gain of $11.5 million following an accounting policy change for investment properties, while total revenues declined 12% as the business shifted focus from home sales to rental community development. Investors may be watching the company's growing rental income base and the Kelowna occupancy recovery as key signals of operational progress.

Key Points

  • North America Home Finance Inc. (CSE: NAHF, NAHF.PR.A, NAHF.WT) — Canadian residential real estate finance and shared-equity homeownership company
  • Total assets grew 25% to $142.88 million; net income of $3.11 million recorded for fiscal 2026
  • Fair value gain of $11.5 million recognised following shift from amortized cost to fair value accounting for investment properties
  • Kelowna occupancy rose from 76% to 94% since March 31, 2026; Saanich mortgage refinanced to a CMHC-insured 5-year term in July 2026

Revenue Decline Reflects NAHF's Strategic Pivot to Rental Communities

Total revenues for the year ended June 30, 2026, were $3.81 million, down 12% from $4.34 million in fiscal 2025. The company attributes the decline primarily to its deliberate move away from home sales toward building rental communities, where profits will be captured as fair value gains rather than revenue. Home sales fell from three units to one, while rental income grew 75% year-over-year, rising to 75% of total revenue from 38% in the prior year, reflecting the completion and tenanting of 26 homes in Phase 1 of the Saanich Ridge rental community and the acquisition of 80 units at Five Crossings.

Fair Value Accounting Change and Five Crossings Settlement Reshape the Balance Sheet

A policy change from amortized cost to fair value for investment properties generated an $11.5 million gain, which the company states makes its financial statements more reflective of underlying asset value. Investment properties under development expanded sharply to $39.59 million from $11.29 million in the prior year, while non-current financial liabilities decreased $18.22 million to $64.07 million, partly due to mortgage reclassification and repayment activity. The company also finalised the settlement of its Five Crossings profit participation interest at $5.57 million, offset against a promissory note obligation of $5.35 million through contractual set-off.

Kelowna Occupancy Recovery and Saanich Refinancing Strengthen Recurring Cash Flows

Average annualized contractual recurring cash flow — a non-GAAP measure — stood at $3.41 million at June 30, 2026, up $0.45 million from March 31, 2026, driven by rising square footage rented in Kelowna as occupancy recovered to 94%. However, competitive market conditions in Kelowna required rent incentives that reduced average rent per square foot from $35.46 to $33.28, resulting in a net decrease of $0.20 million in average annualized contractual recurring cash flow over the full fiscal year. In July 2026, the company refinanced the Saanich mortgage to a CMHC-insured 5-year term with Peakhill, aligning long-term debt with income-producing assets.

Deposit Growth Signals Continued Wholesale Acquisition Pipeline Expansion

Deposits for condominiums under NAHF's forward wholesale acquisition strategy totalled $24.08 million at June 30, 2026, up from $20.25 million in the prior year, with contributions from both the Collinson Rise/Revo and Glenlake developments. Basic and diluted earnings per share were $0.038 for fiscal 2026, compared with $0.044 in fiscal 2025, on a weighted average share count of 82,158,574. The immediate share price impact was not clear from available public information.