Q2 2026 Crombie Real Estate Investment Trust Earnings Call Transcript

Aug 6, 2026 / 02:00 PM GMT

Release Date Price: $11.81 (-5.14%)

Transcript

Key Points

Positve

Crombie Real Estate Investment Trust (CROMF) delivered its seventh consecutive quarter of double-digit renewal spreads, with a first-year growth rate of 11.3% over expiring rents.
Committed occupancy remained near all-time highs at 97.5%, reflecting strong tenant demand for its grocery-anchored portfolio.
Commercial same-asset property cash NOI grew 3.2% in the quarter, driven by solid leasing activity and contractual rent step-ups.
The company successfully closed a $300 million senior unsecured notes offering at a record-low spread of 124 basis points, strengthening its balance sheet and liquidity.
The Milestone residential project in Halifax reached its grand opening, with leasing momentum building (over 30% occupied by end of July) and rents above initial underwriting.
Crombie Real Estate Investment Trust (CROMF) continued disciplined capital allocation, acquiring Ocean Park, a 30,000 sq ft Safeway-anchored asset, and investing in modernization projects with targeted yields of 6-8%.
The company maintained a strong balance sheet with debt to gross fair value at 42.6%, interest coverage of 3.4x, and a growing unencumbered asset pool of $4.2 billion.
Management expects to meet or exceed its long-term same-asset NOI growth target of 2-3% for the year, supported by consistent operational execution.

Negative

FFO per unit declined 2.9% year-over-year, impacted by lower lease termination income, higher interest expense, and additional units issued under the DRIP.
Economic occupancy decreased slightly to 96.6% from the first quarter, reflecting natural lease expiries and early terminations, including the Toys R Us departure.
Finance costs increased by $1.1 million in the quarter due to higher interest on credit facilities, partially offset by lower mortgage interest.
The Milestone project's total estimated cost increased slightly to $72 million, and the yield on cost remains in the 4.5-5.5% range, which is below the company's typical 6-8% target for non-major investments.
The company has no near-term plans to initiate new major development projects, limiting potential growth from this segment until market conditions improve.
Leasing for the Toys R Us space in Newfoundland is still pending execution, with no definitive timeline for completion.
The company faces ongoing challenges in leasing up its stabilized residential properties, particularly in markets like Davey, which experienced a dip due to immigration policy changes.
Management declined to provide specific guidance on FFO break-even occupancy for the Milestone, leaving uncertainty for investors modeling the drag until stabilization.

Refinitiv StreetEvents Event Transcript
E D I T E D V E R S I O N

CRR_u.TO - Crombie Real Estate Investment Trust
Q2 2026 Crombie Real Estate Investment Trust Earnings Call
Aug 06, 2026 / 02:00PM GMT

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Presentation
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Unidentified_1 [1]
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Good morning everyone, and welcome to Crombie Reed's second quarter 2026 conference call.

As a reminder, all participants are on the mode and the conference is being recorded.

At this time, all lines are in listen-only mode.

Following the presentation, we will conduct a question-and-answer session.

To join the question queue, you may pressar then 1 on your telephone keypad.

Any time during the conference you require immediate assistance, please press star and 0 to signal and opera 626.

And turn the conference over to Magda Nair, Manager of investor relations at Crombie, please go ahead.

Good day everyone, and welcome to Crombie Weeds

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