Highlights

• True North Commercial REIT paid C$0.0575 per unit on 16 November for unitholders of record on 30 October.

• Third-quarter AFFO Payout Ratio was 31 percent, with diluted AFFO of C$0.55 per unit for the period.

• Indebtedness equalled 62.6 percent of gross book value, and C$126 million of mortgages remained under refinancing.

• The trust agreed on 30 October to sell a Calgary office property for C$57 million, closing around December.

On the income statement, True North Commercial Real Estate Investment Trust (TSX:TNT.UN) pays out barely a third of its adjusted funds from operations. On the balance sheet, the office landlord carries Debt equal to 62.6% of gross book value, with three mortgages worth C$126 million and its Credit facility, all maturing in 2026, still being finalised.

Its monthly C$0.0575 distribution therefore sits beside a busy refinancing calendar and a C$57 million Calgary sale that is expected to close around 14 December.

Distribution terms and yield

The October distribution, announced on 15 October, went to unitholders of record on 30 October and was paid on 16 November. Twelve monthly payments of C$0.0575 had ex-dates between 11 November 2025 and 10 November 2026, a trailing total of C$0.69.

Against the 10 November close of C$7.35, that equals a trailing Yield of 9.39%, identical to the indicated yield because the rate has not changed. The units closed at C$8.00 in earlier screening data, so the higher yield reflects a lower price rather than a bigger payout.

Third-quarter operations

Revenue fell 3.1% to C$29.7 million, although it rose 1.0% excluding an Ottawa property held for sale after an early Lease termination in late 2025. Same property NOI, excluding that asset, grew 4.5%. FFO reached C$0.58 per unit and diluted AFFO C$0.55, giving a 31% payout ratio for the quarter and 35% for the year to date.

Core occupancy stood at about 93%, or 90% including held-for-sale assets. The trust leased or renewed roughly 107,000 square feet during the quarter at renewal spreads of 7.3%, and its weighted average lease term was 4.1 years.

Debt maturities in focus

Interest coverage was 2.30 times, the weighted average fixed rate was 4.57% and the average term to Maturity was just 1.95 years. Year-to-date refinancing totalled C$113.8 million at 4.83%. Available Liquidity came to C$25.0 million, comprising C$7.2 million of cash and C$17.8 million undrawn on the credit facility.

Leverage has barely shifted this year, with the debt-to-gross-book-value ratio at 62.5% on 31 December 2025. Net Income for the quarter was C$2.3 million, against a loss of C$5.2 million a year earlier, while NOI eased to C$14.2 million from C$15.4 million. Distributions declared totalled C$2.5 million in the quarter and C$7.5 million for the nine months.

Asset sales and buybacks

On 30 October, the trust agreed to sell 3699 63rd Avenue NE in Calgary, a 209,400-square-foot property, for C$57 million. Its normal course issuer bid, renewed on 23 April, permits repurchase of up to 1,235,415 units. The bid is capped at 10% of the public float of 12,354,156 units measured on 9 April. No strategic review has been announced, and index membership has not been verified. The Calgary sale remains subject to closing, so its proceeds are not yet in hand.