Image source: © 2025 Krish Capital Pty. Ltd.

Highlights:

  • Automotive Properties' Q2 2025 AFFO per Unit rose to CAD 0.249, up 6.9% from Q2 2024, with an AFFO payout ratio of 80.7%.

  • Two agreements signed to acquire seven automotive properties, including the completed purchase of a Rivian-tenanted site in Tampa, Florida for USD 13.1 million (CAD 18.8 million).

  • Annual cash distribution increased from CAD 0.804 per Unit to CAD 0.822 per Unit, effective for the August 2025 payment.

Automotive Properties Real Estate Investment Trust (TSX: PR.UN) has released its financial results for the second quarter (Q2 2025) and year-to-date period ended June 30, 2025. The REIT also confirmed two agreements to acquire seven automotive properties and announced a 2.2% increase in its annual cash distribution.

Q2 2025 Performance

In Q2 2025, the REIT generated AFFO of CAD 12.6 million, or CAD 0.249 per Unit (diluted), compared to CAD 11.7 million, or CAD 0.233 per Unit (diluted), in the prior-year period. The increase was primarily attributed to the contribution from properties acquired after Q2 2024 and contractual rent escalations, partly offset by reduced rental income from the October 2024 sale of the Kennedy Lands in Markham, Ontario. The AFFO payout ratio declined from 86.3% in Q2 2024 to 80.7% in Q2 2025.

Funds from Operations (FFO) increased 6.6% to CAD 12.8 million, or CAD 0.254 per Unit (diluted), compared to CAD 12.0 million, or CAD 0.239 per Unit, a year earlier. Adjusted Cash Flow from Operations (ACFO) rose 12.7% to CAD 14.0 million from CAD 12.4 million.

Rental revenue grew 4.6% year-over-year to CAD 24.6 million, while total Cash NOI increased 5.6% to CAD 20.6 million. Same Property Cash NOI improved 2.4% to CAD 19.5 million, mainly reflecting contractual rent increases.

Net income and comprehensive income stood at CAD 11.2 million in Q2 2025, compared to CAD 37.3 million in Q2 2024, with the decline largely driven by differences in non-cash fair value adjustments.

Property Transactions

During the quarter, the REIT completed the acquisition of a Rivian-tenanted property in Tampa, Florida for approximately USD 13.1 million (CAD 18.8 million), funded through its revolving credit facilities. The REIT also entered into agreements to acquire seven additional automotive properties. Assuming completion, the REIT’s Debt to Gross Book Value (Debt to GBV) ratio is projected to rise from 44.4% to approximately 47.6%.

Distributions and Liquidity

The Board of Trustees approved an annual cash distribution increase from CAD 0.804 per Unit to CAD 0.822 per Unit, equivalent to a monthly distribution of CAD 0.0685 per Unit. The adjustment will take effect for the August 2025 distribution, payable on or about September 15, 2025, to unitholders of record as of August 29, 2025.

As of June 30, 2025, the REIT had CAD 68.5 million of undrawn credit capacity, CAD 0.6 million in cash, and five unencumbered properties valued at approximately CAD 85.8 million. Fixed-rate debt accounted for 91% of borrowings, with a weighted average interest rate of 4.36%.