Q2 2026 SmartCentres Real Estate Investment Trust Earnings Call Transcript
Key Points
- Same-property NOI grew 2.6% in Q2, or 4.4% excluding anchors, with occupancy rising to 98.1%.
- Rental lifts on lease renewals were strong, up 12% excluding anchors, and 86% of 2026 maturities were executed by Q2 end.
- Successfully re-leased four of six former Toys 'R' Us locations at higher rents, with strong interest in the remaining two.
- Cash collections remained robust at 99%, and the Toronto and Montreal Premium Outlets are nearly fully leased with strong sales.
- The company unwound its total return swap, generating a modest gain and eliminating future FFO volatility from this item.
- Liquidity is solid with $715 million available (or $965 million including accordion), and the corporate revolver was extended to 2031.
- FFO with adjustments declined slightly to $0.54 per unit from $0.55 in the prior year, due to higher interest and G&A expenses.
- Recorded a fair value loss of $196.2 million on investment properties, mainly due to deferred development activities.
- Adjusted debt to adjusted EBITDA remains elevated at 9.8 times, with a relatively short weighted average debt term of 2.9 years.
- The company has no current plans to buy back units despite trading at a discount to fair value, which may disappoint some investors.
- Development pipeline is limited, with only nine projects under construction, and the company is cautious about high-rise development timing.
- The disposition pipeline of $200-300 million over the next two to three years is still intact but no deals have been announced yet.
Good day, ladies and gentlemen. Welcome to the SmartCentre's VET Q2 2026 conference call. I would like to introduce Mr. Peter Slan. Please go ahead.
Thank you, operator, and good morning, everyone. Welcome to SmartCentre's second quarter 2026 results call.
I'm Peter Slan, Chief Financial Officer, and as in prior quarters, I'm joined on today's call by Mitch Goldhar, Executive Chair and CEO. And by Rudy Gobin, our Chief Portfolio and Asset Management Officer.
We'll begin today's call with some comments from Mitch. Rudy will then provide some operational highlights and I will review our financial results. We will then be pleased to take your questions.
Just before I turn the call over to Mitch, I would like to refer you specifically to the cautionary language about forward-looking information which can be found at the front of our MD&A. This also applies to comments that any of the speakers make today.
Next, over to you.
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