Q2 2026 Granite Real Estate Investment Trust Earnings Call Transcript

Aug 6, 2026 / 03:00 PM GMT

Release Date Price: €57.36 (+1.13%)

Transcript

Key Points

Positve

Granite Real Estate Investment Trust (GRTUF) delivered strong same property NOI growth of 8.3% on a constant currency basis, driven by a 7% leasing spread and a 220 basis point improvement in occupancy year-over-year.
The company raised and narrowed its full-year 2026 guidance, now expecting FFO per unit growth of 7-8% and AFFO per unit growth of 4-6% year-over-year.
Granite Real Estate Investment Trust (GRTUF) significantly strengthened its balance sheet, reducing its leverage ratio to 32% and debt-to-EBITDA to 6.6 times from 7.3 times at the end of 2025.
The company has a robust capital allocation pipeline with approximately $195 million in pending acquisitions in target US and European markets, funded by accretive dispositions and ATM proceeds with negligible dilution.
Leasing momentum remains positive across most markets, with the company having renewed 65% of 2026 expiries at an average rent increase of 21%, and it is negotiating new leases on over 500,000 square feet of vacant space.
Granite Real Estate Investment Trust (GRTUF) maintains a strong liquidity position of $1.2 billion, with no borrowings on its credit facility, providing ample financial flexibility for future growth.

Negative

Granite Real Estate Investment Trust (GRTUF) recognized a $2.6 million provision related to a CRA audit for denied tax credits, interest, and penalties, which negatively impacted FFO and AFFO by approximately $0.02 per unit.
AFFO per unit declined sequentially by $0.15 due to higher maintenance capital expenditures, leasing costs, and tenant allowances, with AFFO-related capex increasing by $7 million quarter-over-quarter.
The company experienced net fair value losses of $20.6 million on its investment properties, driven by expansion in discount and terminal capitalization rates at select European properties and decreases in fair market rents in Canada.
The GTA and New Jersey markets remain weak, with asking rents down just under 5% year-over-year, and the company expects it will take a few more quarters for GTA rents to bottom out.
Granite Real Estate Investment Trust (GRTUF) faces upcoming debt maturity in December, and management is considering shorter-term financing options due to elevated long-term treasury yields, which could lead to higher refinancing costs.
The company's weighted average cap rate increased by 10 basis points quarter-over-quarter and 20 basis points year-over-year, reflecting softer valuation metrics in certain markets.

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

GRT_u.TO - Granite Real Estate Investment Trust
Q2 2026 Granite Real Estate Investment Trust Earnings Call
Aug 06, 2026 / 03:00PM GMT

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Presentation
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Unidentified_1 [1]
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Ladies and gentlemen, thank you for joining us and welcome to Granite Reath's second quarter 2026 results conference call.

After today's prepared remarks, we will host a question-and-answer session.

If you would like to ask a question, please press 1 to raise your hand.

To withdraw your question, pressar 1 again.

I will now hand the conference over to Teresa Neto, Chief Financial Officer.

Teresa, please go ahead.

Thank you, operator.

Good morning, everyone.

Before we begin today's call, I would like to remind you that statements and information made in today's discussion may constitute forward-looking information and that

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