Highlights

• Alaris reported third-quarter 2026 results showing distributions of C$0.39 per unit and a 31.7% payout ratio.

• Partner distribution Revenue climbed 25.9% to C$72.2 million, while unrealised Fair Value losses reached C$58.9 million.

• The trust lifted its quarterly rate in steps from C$0.37 to C$0.39 across the past four payments.

• Management projects record run-rate revenue near C$231 million and a run-rate Payout Ratio of roughly 63%.

Fresh numbers are in. Alaris Equity Partners Income Trust (TSX:AD.UN) released third-quarter 2026 results on 3 November, confirming distributions of C$0.39 per unit and a quarterly payout ratio of 31.7%, down from 41.4% a year earlier.

Strong partner Cash Flow carried the quarter, yet higher interest rates dented the valuation of its investments. Both forces matter when sizing up the payout.

A distribution that has stepped higher

Ex-dates between 11 November 2025 and 10 November 2026 brought payments of C$0.37, C$0.37, C$0.38 and C$0.39, summing to C$1.51. The most recent C$0.39 went ex on 29 September and was paid on 15 October. A fourth-quarter amount had not been declared at the time of writing.

On a closing price of C$21.67 on 10 November 2026, the trailing Yield is about 6.97%. Annualising the current C$0.39 quarterly rate gives C$1.56 and an indicated yield of about 7.20%. The gap reflects the rate rising during the year.

The C$0.39 rate compares with C$0.34 paid a year earlier, so the quarterly amount has climbed by five cents across four consecutive declarations. That progression came while the trust kept its payout ratio well below its target range.

Cash coverage from the partner book

Partner distribution revenue rose to C$72.2 million, ahead of the C$69.2 million the trust had forecast. Net distributable cash flow reached C$54.7 million, or C$1.19 per unit, a 46.4% increase.

The year-to-date payout ratio stood at 45.1%. On a run-rate basis, management estimates the ratio at approximately 63%, below its long-term target range of 65% to 70%. For the fourth quarter, Alaris expects partner revenue of about C$53 million, reflecting the timing of common distributions.

That softer fourth-quarter guide does not signal a change in the distribution by itself, but it shows how lumpy partner cash flows can be from one quarter to the next. Investors comparing quarters will need to separate timing effects from underlying partner performance.

Deployment and Balance Sheet moves

The trust deployed C$188.0 million during the quarter, including US$95.0 million into Nexus and US$35.0 million into TESCO, taking the portfolio to 26 partners. Fleet paid US$13.8 million in common distributions, up 34%.

Estimated next-twelve-month run-rate revenue climbed to roughly C$231 million, a record, from C$208.4 million at the end of June. Senior Credit Facility commitments were increased to US$500 million from US$450 million.

The valuation drag

Net unrealised fair value losses of C$58.9 million cut total revenue and Operating Income to C$3.1 million from C$74.9 million. Alaris attributed about 60% of those losses to higher risk-free interest rates.

Net Book Value per unit eased to C$24.87 from C$25.83 at 30 June, including C$0.43 of dilution from a C$115 million bought deal. Partner performance and rate movements will continue to drive both reported Earnings and book value.