Highlights 

  • Same-property NOI for Q3 2025 increased by 2.4% compared to the prior year. 
  • Debt to GBV stood at 42.3% in Q3 2025, reflecting continued balance sheet discipline. 
  • Portfolio occupancy remained steady at 87.8% as of September 30, 2025. 
  • The REIT entered into an agreement to be acquired by RFA Capital Holdings Inc. through a court-approved plan of arrangement. 
  • The NCIB program included the purchase of more than 1.17 million common units during the quarter. 

Strategic Progress and Business Developments 

Artis Real Estate Investment Trust (TSX:AX.UN) announced its financial results for the third quarter of 2025, detailing operational stability and strategic advances despite a challenging commercial real estate backdrop. During the quarter, management focused on executing its strategy of loweringleverage, improving financial resilience, and optimizing its portfolio. 

A key development for theREITwas the announcement of a proposed combination with RFA Capital Holdings Inc. Under the arrangement, RFA will acquire all outstanding REIT units through a court-approved process, creating RFA Financial Inc.—a diversified platform spanning a Schedule I bank, amortgageorigination business, and Artis’s real estate portfolio. The REIT stated that this transaction could expand growth pathways, enhance access to capital, and provide unitholders exposure to Canada’s financial services sector. 

Artis continued to execute its normal course issuer bid, acquiring 1,172,459 common units at an average of CAD 7.44 and 27,300 preferred units at an average of CAD 20.76.  

Financial and Operational Performance 

For the third quarter, Artis reported revenue of CAD 59,514 thousand, down from CAD 66,369 thousand in the prior year. Netoperating incomewas CAD 30,110 thousand, while the REIT recorded a net loss of CAD 33,587 thousand.Funds from operationsdeclined to CAD 17,067 thousand, with an FFO per diluted unit of CAD 0.17. 

Same-property NOI increased 2.4% year over year—a notable positive indicator reflecting stable leasing conditions within the core portfolio. Portfolio occupancy remained steady at 87.8%, or 88.5% including commitments.Leasingactivity included 89,683 square feet of new leases and 113,047 square feet of renewals, with renewal rates achieving a 0.6% weighted-average increase. 

Balance sheetmetrics showeddebtto grossbook valueat 42.3%, up from 40.2% at year-end 2024. AdjustedEBITDAinterest coverage ratio was 2.38. At quarter-end, the REIT had CAD 26.7 million in cash and CAD 49.4 million available on credit facilities. 

Outlook and Pending Transaction 

The proposed transaction with RFA Capital marks a significant pivot for Artis as it transitions toward participation in an integrated financial services and real estate platform. Management stated that unitholders could benefit from redeployment of capital into RFA’s banking andmortgageunits, alongside continuedcash flowsfrom the real estate portfolio. 

With the environmental and market backdrop remaining complex for commercial real estate, the REIT emphasized its commitment to maintaining operational focus while progressing toward closing the arrangement in early 2026. 

Conclusion 

Artis REIT’s third-quarter results reflect stable operations, disciplined financial management, and strategic ambition. While financial metrics softened due to broader real estate challenges, the REIT’s consistent occupancy, growing same-property NOI, and planned combination with RFA Capital indicate a transformative period ahead. Unitholders will play a pivotal role as the proposed transaction moves toward a December vote and anticipated closing in 2026.