Latest news with #ChoiceProperties
National Post
3 days ago
- Business
- National Post
Choice Properties Real Estate Investment Trust Completes Issuance of $350 Million Series W Senior Unsecured Debentures and $150 Million Series X Senior Unsecured Debentures
Article content TORONTO — Choice Properties Real Estate Investment Trust ('Choice Properties', the 'Trust' or 'we') (TSX: announced today that it has completed its previously announced issuance, on a private placement basis in certain provinces of Canada (the 'Offering'), of (i) $350 million aggregate principal amount of series W senior unsecured debentures of the Trust bearing interest at a rate of 4.628% per annum and maturing on August 8, 2035 (the 'Series W Debentures') and (ii) $150 million aggregate principal amount of series X senior unsecured debentures of the Trust bearing interest at a rate of 5.369% per annum and maturing on August 8, 2055 (the 'Series X Debentures' and, together with the Series W Debentures, the 'Debentures'). Article content Article content The Trust intends to use the net proceeds of the Offering to repay existing indebtedness, including the redemption in full of the Trust's $200 million aggregate principal amount of 4.055% series F senior unsecured debentures due November 24, 2025 (the 'Series F Debentures') on September 5, 2025, and for general business purposes. Article content Morningstar DBRS has provided the Debentures with a credit rating of 'BBB (high)' with a 'positive' trend and S&P Global Ratings has provided the Debentures with a credit rating of 'BBB+'. The Debentures rank equally with all other unsecured indebtedness of the Trust that has not been subordinated. Article content The Debentures were sold on an agency basis by a syndicate of agents co-led by TD Securities, CIBC Capital Markets, RBC Capital Markets, BMO Capital Markets, and Scotiabank. The Debentures offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful. Article content Choice Properties is a leading Real Estate Investment Trust that creates enduring value through places where people thrive. Article content We are more than a national owner, operator and developer of high-quality commercial and residential real estate. We believe in creating spaces that enhance how our tenants and communities come together to live, work, and connect. This includes our industry leadership in integrating environmental, social and economic sustainability practices into all aspects of our business. In everything we do, we are guided by a shared set of values grounded in Care, Ownership, Respect and Excellence. Article content For more information, visit Choice Properties' website at and Choice Properties' issuer profile at Article content This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Choice Properties' current expectations regarding future events, including the intended use of proceeds of the Offering and the redemption of the Series F Debentures. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Choice Properties' control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed in Choice Properties' 2025 Second Quarter Report and current Annual Information Form. Choice Properties does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. All forward-looking statements contained in this press release are made as of the date hereof and are qualified by these cautionary statements. Article content Article content Article content Article content Contacts Article content For further information: Article content
National Post
5 days ago
- Business
- National Post
Choice Properties Real Estate Investment Trust Announces Issuance of $350 million of Series W Senior Unsecured Debentures and $150 million of Series X Senior Unsecured Debentures, and Redemption of $200 million of Series F Senior Unsecured Debentures
Article content TORONTO — Choice Properties Real Estate Investment Trust ('Choice Properties', the 'Trust' or 'we') (TSX: announced today that it has agreed to issue, on a private placement basis in certain provinces of Canada (the 'Offering'), (i) $350 million aggregate principal amount of series W senior unsecured debentures of the Trust that will bear interest at a rate of 4.628% per annum and will mature on August 8, 2035 (the 'Series W Debentures') and (ii) $150 million aggregate principal amount of series X senior unsecured debentures of the Trust that will bear interest at a rate of 5.369% per annum and will mature on August 8, 2055 (the 'Series X Debentures' and, together with the Series W Debentures, the 'Debentures'). Article content Article content Offering of Debentures Article content The Debentures will be sold at par and are being offered on an agency basis by a syndicate of agents co-led by TD Securities, CIBC Capital Markets, RBC Capital Markets, BMO Capital Markets, and Scotiabank. Subject to customary closing conditions, the Offering is expected to close on August 8, 2025. Article content The Trust intends to use the net proceeds of the Offering to repay existing indebtedness, including the redemption in full of the Trust's $200 million aggregate principal amount of 4.055% series F senior unsecured debentures due November 24, 2025 (the 'Series F Debentures') on September 5, 2025, and for general business purposes. Article content It is a condition of closing of the Offering that the Debentures be rated at least 'BBB' (high) with a 'positive' trend by Morningstar DBRS and at least 'BBB+' by Standard and Poor's Ratings Services. The Debentures will rank equally with all other unsecured indebtedness of the Trust that has not been subordinated. Article content The Debentures being offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful. Article content Redemption of Series F Debentures Article content The Trust announced today that it has provided holders of its Series F Debentures a notice of redemption pursuant to which the Trust will redeem the entire outstanding principal amount of the Series F Debentures on September 5, 2025 and has fixed September 4, 2025 as the record date for this redemption. As of the date hereof, there is $200 million aggregate principal amount of the Series F Debentures outstanding. Article content On the redemption date, the Series F Debentures will be redeemed in accordance with their terms at a redemption price per $1,000 principal amount of the Series F Debentures equal to $1,000 plus accrued and unpaid interest to but excluding the redemption date of $11.554, and will thereafter cease to be outstanding. Article content We are more than a national owner, operator and developer of high-quality commercial and residential real estate. We believe in creating spaces that enhance how our tenants and communities come together to live, work, and connect. This includes our industry leadership in integrating environmental, social and economic sustainability practices into all aspects of our business. In everything we do, we are guided by a shared set of values grounded in Care, Ownership, Respect and Excellence. Article content For more information, visit Choice Properties' website at and Choice Properties' issuer profile at Article content This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Choice Properties' current expectations regarding future events, including the expected closing of the Offering, the intended use of proceeds of the Offering and the redemption of the Series F Debentures. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Choice Properties' control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed in Choice Properties' 2025 Second Quarter Report and current Annual Information Form. Choice Properties does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. All forward-looking statements contained in this press release are made as of the date hereof and are qualified by these cautionary statements. Article content Article content Article content Article content Contacts Article content Article content Erin Johnston Article content Article content Article content
Globe and Mail
5 days ago
- Business
- Globe and Mail
Choice Properties Real Estate Investment Trust Announces Issuance of $350 million of Series W Senior Unsecured Debentures and $150 million of Series X Senior Unsecured Debentures, and Redemption of $200 million of Series F Senior Unsecured Debentures
Choice Properties Real Estate Investment Trust ('Choice Properties', the 'Trust' or 'we') (TSX: announced today that it has agreed to issue, on a private placement basis in certain provinces of Canada (the 'Offering'), (i) $350 million aggregate principal amount of series W senior unsecured debentures of the Trust that will bear interest at a rate of 4.628% per annum and will mature on August 8, 2035 (the 'Series W Debentures') and (ii) $150 million aggregate principal amount of series X senior unsecured debentures of the Trust that will bear interest at a rate of 5.369% per annum and will mature on August 8, 2055 (the 'Series X Debentures' and, together with the Series W Debentures, the 'Debentures'). Offering of Debentures The Debentures will be sold at par and are being offered on an agency basis by a syndicate of agents co-led by TD Securities, CIBC Capital Markets, RBC Capital Markets, BMO Capital Markets, and Scotiabank. Subject to customary closing conditions, the Offering is expected to close on August 8, 2025. The Trust intends to use the net proceeds of the Offering to repay existing indebtedness, including the redemption in full of the Trust's $200 million aggregate principal amount of 4.055% series F senior unsecured debentures due November 24, 2025 (the 'Series F Debentures') on September 5, 2025, and for general business purposes. It is a condition of closing of the Offering that the Debentures be rated at least 'BBB' (high) with a 'positive' trend by Morningstar DBRS and at least 'BBB+' by Standard and Poor's Ratings Services. The Debentures will rank equally with all other unsecured indebtedness of the Trust that has not been subordinated. The Debentures being offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the Debentures in any jurisdiction in which such offer, solicitation or sale would be unlawful. Redemption of Series F Debentures The Trust announced today that it has provided holders of its Series F Debentures a notice of redemption pursuant to which the Trust will redeem the entire outstanding principal amount of the Series F Debentures on September 5, 2025 and has fixed September 4, 2025 as the record date for this redemption. As of the date hereof, there is $200 million aggregate principal amount of the Series F Debentures outstanding. On the redemption date, the Series F Debentures will be redeemed in accordance with their terms at a redemption price per $1,000 principal amount of the Series F Debentures equal to $1,000 plus accrued and unpaid interest to but excluding the redemption date of $11.554, and will thereafter cease to be outstanding. About Choice Properties Real Estate Investment Trust Choice Properties is a leading Real Estate Investment Trust that creates enduring value through places where people thrive. We are more than a national owner, operator and developer of high-quality commercial and residential real estate. We believe in creating spaces that enhance how our tenants and communities come together to live, work, and connect. This includes our industry leadership in integrating environmental, social and economic sustainability practices into all aspects of our business. In everything we do, we are guided by a shared set of values grounded in Care, Ownership, Respect and Excellence. For more information, visit Choice Properties' website at and Choice Properties' issuer profile at Forward-Looking Statements This press release may contain forward-looking information within the meaning of applicable securities legislation, which reflects Choice Properties' current expectations regarding future events, including the expected closing of the Offering, the intended use of proceeds of the Offering and the redemption of the Series F Debentures. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Choice Properties' control that could cause actual results and events to differ materially from those that are disclosed in or implied by such forward-looking information. Such risks and uncertainties include, but are not limited to, the factors discussed in Choice Properties' 2025 Second Quarter Report and current Annual Information Form. Choice Properties does not undertake any obligation to update such forward-looking information, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. All forward-looking statements contained in this press release are made as of the date hereof and are qualified by these cautionary statements.
Cision Canada
29-07-2025
- Business
- Cision Canada
George Weston Reports Strong Operating Performance Offset by Earnings Impact of Fair Value Adjustment Related to Choice Properties Unit Price Gain of 4.9% Français
TORONTO, July 29, 2025 /CNW/ - George Weston Limited (TSX: WN) ("GWL" or the "Company") today announced its consolidated unaudited results for the 12 weeks ended June 14, 2025 (2). GWL's 2025 Second Quarter Report has been filed on SEDAR+ and is available at and in the Investor Centre section of the Company's website at "George Weston had another strong quarter of operational and financial performance," said Galen G. Weston, Chairman and Chief Executive Officer, George Weston Limited. "Our operating businesses continue to position George Weston for success as Loblaw delivers on its strategy while providing exceptional value for Canadians, and Choice Properties strengthened its portfolio with disciplined property acquisitions and divestitures." Loblaw Companies Limited ("Loblaw") delivered strong performance this quarter by continuing to provide Canadians with quality, value, service, and convenience across its nationwide network of stores and digital platforms. Strong sales growth was driven by new store openings and improved same-store sales, with everyday value offerings, personalized PC Optimum™ loyalty rewards, and impactful promotions driving higher customer engagement. In the food retail business, consumers continued to focus on value, which resulted in outperformance by hard discount and Real Canadian Superstores banners. Same-store traffic, basket size, and item count all increased compared to the same quarter last year. Food retail tonnage volume also increased, reflecting solid market share gains within both discount and conventional segments. In drug retail, robust pharmacy and healthcare services drove continued strength, led by specialty drug growth. Front store sales momentum continued, particularly in prestige beauty categories, partially offset by the strategic exit from certain electronics items. Loblaw advanced its full-year plan to open approximately 80 new stores and 100 new pharmacy clinics, providing access to affordable, quality groceries and healthcare to more communities across Canada. This included opening 10 stores and 12 pharmacy clinics in the quarter, bringing the year-to-date total to 20 new stores and 23 new pharmacy clinics. In addition, Loblaw continued to successfully execute the ramp-up of its East Gwillimbury distribution centre. Choice Properties Real Estate Investment Trust ("Choice Properties") delivered another solid quarter, reflecting the strength of its portfolio and disciplined financial strategy. Robust demand for Choice Properties' grocery-anchored retail and well-located industrial assets supported its performance. Choice Properties further strengthened its position by advancing its strategic priorities through $427 million in transactions. GWL also separately announced today a 3-for-1 common share stock split to ensure its common shares remain accessible to retail investors and employees who participate in the Company's employee share ownership program. The stock split will not dilute shareholders' equity. The stock split will be implemented by way of a stock dividend. Further details are provided in the Company's separate news release of July 29, 2025. 2025 SECOND QUARTER HIGHLIGHTS Revenue was $14,823 million, an increase of $732 million, or 5.2%. Adjusted EBITDA (1) was $1,923 million, an increase of $117 million, or 6.5%. Net earnings available to common shareholders of the Company were $258 million ($1.96 per common share), compared to $400 million ($2.97 per common share) in the same period in 2024. The decrease was primarily due to the unfavourable year-over-year impact of the fair value adjustment of the Trust Unit liability as a result of the increase of Choice Properties' unit price in the quarter, partially offset by the favourable impact of lapping prior year charges. Adjusted net earnings available to common shareholders of the Company (1) were $401 million, an increase of $7 million, or 1.8%. Contribution to adjusted net earnings available to common shareholders of the Company (1) from the publicly traded operating companies was $443 million, an increase of $17 million, or 4.0%. Adjusted diluted net earnings per common share (1) were $3.06, an increase of $0.13 per common share, or 4.4%. Repurchased for cancellation 1.1 million common shares at a cost of $295 million. GWL Corporate free cash flow (1) was $293 million. Subsequent to the end of the second quarter of 2025, the Company's Board of Directors approved a 3-for-1 stock split of the Company's outstanding common shares. The stock split will be implemented by way of a stock dividend where the Company will issue to shareholders two additional common shares for each common share held. The stock split will be effective at the close of business on August 18, 2025 for shareholders of record as of the close of business on August 14, 2025. For details regarding the stock split, please see the Company's news release at CONSOLIDATED RESULTS OF OPERATIONS The Company operates through its two reportable operating segments: Loblaw and Choice Properties, each of which are publicly traded entities. As such, the Company's financial statements reflect and are impacted by the consolidation of Loblaw and Choice Properties. The consolidation of these entities into the Company's financial statements reflects the impact of eliminations, intersegment adjustments and other consolidation adjustments, which can positively or negatively impact the Company's consolidated results. Additionally, cash and short-term investments and other investments held by the Company, and all other company level activities that are not allocated to the reportable operating segments, such as net interest expense, corporate activities and administrative costs are included in GWL Corporate. To help our investors and stakeholders understand the Company's financial statements and the effect of consolidation, the Company reports its results in a manner that differentiates between the Loblaw segment, the Choice Properties segment, the effect of consolidation of Loblaw and Choice Properties, and lastly, GWL Corporate. The Company's results reflect the year-over-year impact of the fair value adjustment of the Trust Unit liability as a result of the significant changes in Choice Properties' unit price, recorded in net interest expense and other financing charges. The Company's results are impacted by market price fluctuations of Choice Properties' Trust Units on the basis that the Trust Units held by Unitholders, other than the Company, are redeemable for cash at the option of the holder and are presented as a liability on the Company's consolidated balance sheet. The Company's financial results are negatively impacted when the Trust Unit price increases and positively impacted when the Trust Unit price declines. ($ millions except where otherwise indicated) For the periods ended as indicated 12 Weeks Ended Jun. 14, 2025 Jun. 15, 2024 $ Change % Change Revenue $ 14,823 $ 14,091 $ 732 5.2 % Operating income $ 1,440 $ 795 $ 645 81.1 % Adjusted EBITDA (1) from: Loblaw $ 1,838 $ 1,711 $ 127 7.4 % Choice Properties 252 240 12 5.0 % Effect of consolidation (157) (140) (17) (12.1) % Publicly traded operating companies (i) $ 1,933 $ 1,811 $ 122 6.7 % GWL Corporate (10) (5) (5) (100.0) % Adjusted EBITDA (1) $ 1,923 $ 1,806 $ 117 6.5 % Adjusted EBITDA margin (1) 13.0 % 12.8 % Net earnings attributable to shareholders of the Company $ 268 $ 410 $ (142) (34.6) % Loblaw (ii) $ 377 $ 241 $ 136 56.4 % Choice Properties (154) 514 (668) (130.0) % Effect of consolidation 61 (154) 215 139.6 % Publicly traded operating companies (i) $ 284 $ 601 $ (317) (52.7) % GWL Corporate (26) (201) 175 87.1 % Net earnings available to common shareholders of the Company $ 258 $ 400 $ (142) (35.5) % Diluted net earnings per common share ($) $ 1.96 $ 2.97 $ (1.01) (34.0) % Loblaw (ii) $ 381 $ 350 $ 31 8.9 % Choice Properties 112 105 7 6.7 % Effect of consolidation (50) (29) (21) (72.4) % Publicly traded operating companies (i) $ 443 $ 426 $ 17 4.0 % GWL Corporate (42) (32) (10) (31.3) % Adjusted net earnings available to common shareholders of the Company (1) $ 401 $ 394 $ 7 1.8 % Adjusted diluted net earnings per common share (1) ($) $ 3.06 $ 2.93 $ 0.13 4.4 % (i) Publicly traded operating companies is the contribution to the Company's financial performance from its controlling interest in Loblaw and Choice Properties after the effect of consolidation, each of which are publicly traded entities. Effect of consolidation includes eliminations, intersegment adjustments and other consolidation adjustments. See "Results by Operating Segment" section of this News Release for further information. (ii) Contribution from Loblaw, net of non-controlling interests. Net earnings available to common shareholders of the Company in the second quarter of 2025 were $258 million ($1.96 per common share), a decrease of $142 million ($1.01 per common share) compared to the same period in 2024. The decrease was due to the unfavourable year-over-year net impact of adjusting items totaling $149 million ($1.14 per common share), partially offset by an improvement of $7 million ($0.13 per common share) in the consolidated underlying operating performance of the Company. The unfavourable year-over-year net impact of adjusting items totaling $149 million ($1.14 per common share) was primarily due to: the unfavourable year-over-year impact of the fair value adjustment of the Trust Unit liability of $462 million ($3.50 per common share) as a result of the increase in Choice Properties' unit price in the second quarter of 2025; and the unfavourable year-over-year impact of the prior year reversal of a transaction related provision of $39 million ($0.29 per common share) that was determined to be no longer required at Choice Properties; partially offset by, the favourable year-over-year impact of prior year charges related to the settlement of class action lawsuits of $253 million ($1.89 per common share); the favourable year-over-year impact of lower amortization of intangible assets at Loblaw of $41 million ($0.31 per common share) primarily related to certain intangible assets associated with the 2014 acquisition of Shoppers Drug Mart Corporation ("Shoppers Drug Mart") which are now fully amortized; the favourable year-over-year impact of the fair value adjustment on Choice Properties' investment in real estate securities of Allied Properties Real Estate Investment Trust ("Allied") of $33 million ($0.25 per common share) as a result of the change in Allied's unit price; and the favourable year-over-year impact of the fair value adjustment on investment properties of $29 million ($0.23 per common share) driven by Choice Properties, net of the effect of consolidation. Adjusted net earnings available to common shareholders of the Company (1) in the second quarter of 2025 were $401 million, an increase of $7 million, or 1.8%, compared to the same period in 2024. The increase was driven by the favourable year-over-year impact of $17 million from the contribution of the publicly traded operating companies, partially offset by the unfavourable year-over-year impact of $10 million at GWL Corporate due to the year-over-year impact of the fair value adjustment on other investments, an increase in adjusted net interest expense and other financing charges (1) and an increase in income tax expense related to GWL's participation in Loblaw's Normal Course Issuer Bid ("NCIB"). Adjusted diluted net earnings per common share (1) were $3.06 in the second quarter of 2025, an increase of $0.13 per common share, or 4.4%, compared to the same period in 2024. The increase was due to the performance in adjusted net earnings available to common shareholders (1) as described above and the favourable impact of shares purchased for cancellation over the last 12 months ($0.09 per common share) pursuant to the Company's NCIB. GWL CORPORATE FINANCING ACTIVITIES The Company completed the following select GWL Corporate financing activities: NCIB – Purchased and Cancelled Shares In the second quarter of 2025, the Company purchased and cancelled 1.1 million common shares (2024 – 1.8 million common shares) for aggregate consideration of $295 million (2024 – $339 million) under its NCIB. As at June 14, 2025, the Company had 128.3 million common shares issued and outstanding, net of shares held in trusts (June 15, 2024 – 132.1 million common shares). The Company has an automatic share purchase plan ("ASPP") with a broker in order to facilitate the repurchase of the Company's common shares under its NCIB. During the effective period of the ASPP, the Company's broker may purchase common shares at times when the Company would not be active in the market. Refer to note 11, "Share Capital", of the Company's second quarter 2025 unaudited interim period condensed consolidated financial statements for more information. Participation in Loblaw's NCIB The Company participates in Loblaw's NCIB in order to maintain its proportionate percentage ownership interest. In the second quarter of 2025, Loblaw repurchased 0.9 million common shares (2024 – 1.3 million common shares) from the Company for aggregate consideration of $200 million (2024 – $190 million). 12 Weeks Ended Jun. 14, 2025 Jun. 15, 2024 ($ millions) For the periods ended as indicated Loblaw Choice Properties Effect of consol- idation GWL Corporate Total Loblaw Choice Properties Effect of consol- idation GWL Corporate Total Revenue $ 14,672 $ 351 $ (200) $ — $14,823 $ 13,947 $ 336 $ (192) $ — $ 14,091 Operating income $ 1,237 $ 350 $ (136) $ (11) $ 1,440 $ 866 $ 273 $ (82) $ (262) $ 795 Adjusted operating income (1) 1,247 251 (73) (11) 1,414 1,147 239 (57) (6) 1,323 Adjusted EBITDA (1) $ 1,838 $ 252 $ (157) $ (10) $ 1,923 $ 1,711 $ 240 $ (140) $ (5) $ 1,806 Net interest expense (income) and other financing charges $ 212 $ 504 $ (231) $ 5 $ 490 $ 190 $ (241) $ 48 $ — $ (3) Adjusted net interest expense (income) and other financing charges (1) 212 139 (54) 5 302 190 134 (53) — 271 Earnings (loss) before income taxes $ 1,025 $ (154) $ 95 $ (16) $ 950 $ 676 $ 514 $ (130) $ (262) $ 798 Income taxes $ 270 $ — $ 34 $ (2) $ 302 $ 180 $ — $ 24 $ (73) $ 131 Adjusted income taxes (1) 273 — 31 14 318 254 — 25 14 293 Net earnings attributable to non-controlling interests $ 378 $ — $ — $ 2 $ 380 $ 255 $ — $ — $ 2 $ 257 Prescribed dividends on preferred shares in share capital — — — 10 10 — — — 10 10 Net earnings (loss) available to common shareholders of the Company $ 377 $ (154) $ 61 $ (26) $ 258 $ 241 $ 514 $ (154) $ (201) $ 400 Adjusted net earnings available to common shareholders of the Company (1) 381 112 (50) (42) 401 350 105 (29) (32) 394 Effect of consolidation includes the following items: LOBLAW OPERATING RESULTS Loblaw has two reportable operating segments, retail and financial services, with all material operations carried out in Canada. Loblaw's retail segment consists primarily of food retail and drug retail. Loblaw provides Canadians with grocery, pharmacy and healthcare services, other health and beauty products, apparel, general merchandise and financial services. Revenue Loblaw revenue in the second quarter of 2025 was $14,672 million, an increase of $725 million, or 5.2%, compared to the same period in 2024, driven by an increase in retail sales and in financial services revenue. The sale of Wellwise by Shoppers™ (" Wellwise") was completed in the first quarter of 2025. Revenue related to Wellwise in the second quarter of 2025 was nil (2024 – $21 million). Excluding the impact of revenue related to Wellwise, revenue increased by 5.4%. Retail sales were $14,389 million, an increase of $731 million, or 5.4%, compared to the same period in 2024. The increase was primarily driven by the following factors: food retail sales were $10,213 million (2024 – $9,653 million) and food retail same-store sales growth was 3.5% (2024 – 0.2%); Loblaw's internal food inflation was lower than the Consumer Price Index for Food Purchased from Stores of 3.3% (2024 – 1.7%); and food retail traffic increased and basket size increased. drug retail sales were $4,176 million (2024 – $4,005 million) and drug retail same-store sales growth was 4.1% (2024 – 1.5%); pharmacy and healthcare services same-store sales growth was 6.2% (2024 – 5.4%), led by specialty prescriptions. On a same-store basis, the number of prescriptions increased by 3.1% (2024 – 2.1%) and the average prescription value increased by 3.9% (2024 – 1.9%); and front store same-store sales growth was 1.7% (2024 – decline of 2.4%). Front store same-store sales growth was primarily driven by higher sales of beauty and over-the-counter ("OTC") products, partially offset by the decision to exit certain low margin electronics categories. In the second quarter of 2025, 10 food and drug stores were opened and 1 food and drug store was closed. Retail square footage was 72.5 million square feet, a net increase of 1.2 million square feet, or 1.7% compared to the same period in 2024. Financial services revenue was $377 million, an increase of $10 million, or 2.7%, compared to the same period in 2024, primarily driven by higher sales attributable to The Mobile Shop™ and higher insurance commission income, partially offset by lower interest income. Operating Income Loblaw operating income in the second quarter of 2025 was $1,237 million, an increase of $371 million, or 42.8%, compared to the same period in 2024. Adjusted EBITDA (1) Loblaw adjusted EBITDA (1) in the second quarter of 2025 was $1,838 million, an increase of $127 million, or 7.4%, compared to the same period in 2024, driven by an increase in retail of $110 million and an increase in financial services of $17 million. Retail adjusted EBITDA (1) increased by $110 million compared to the same period in 2024, driven by an increase in retail gross profit of $238 million, partially offset by an increase in retail selling, general and administrative expenses ("SG&A") of $128 million. Retail gross profit percentage of 32.0% was stable compared to the same period in 2024, primarily driven by improvements in shrink, offset by changes in sales mix in drug retail pharmacy categories. Retail SG&A as a percentage of sales was 19.8%, a favourable decrease of 10 basis points compared to the same period in 2024, primarily due to operating leverage from higher sales and the year-over-year impact of certain real estate activities, partially offset by incremental costs related to opening new stores and the automated distribution facility. Financial services adjusted EBITDA (1) increased by $17 million compared to the same period in 2024, primarily driven by higher revenue as described above, lower operating costs, and lower credit card receivable charge-offs. The increase was partially offset by higher loyalty program costs. Depreciation and Amortization Loblaw depreciation and amortization in the second quarter of 2025 was $600 million, a decrease of $79 million compared to the same period in 2024, primarily driven by the impact of lower amortization related to certain intangible assets associated with the 2014 acquisition of Shoppers Drug Mart which are now fully amortized, partially offset by an increase in depreciation of fixed assets related to conversions of retail locations and opening new stores, and an increase in depreciation of leased assets. Included in depreciation and amortization was the amortization of intangible assets related to the acquisitions of Shoppers Drug Mart and Lifemark Health Group ("Lifemark") of $9 million (2024 – $115 million). Choice Properties owns, manages and develops a high-quality portfolio of commercial and residential properties across Canada. Revenue Choice Properties revenue in the second quarter of 2025 was $351 million, an increase of $15 million, or 4.5%, compared to the same period in 2024 and included revenue of $201 million (2024 – $193 million) generated from tenants within Loblaw. The increase in revenue in the second quarter of 2025 was primarily driven by: higher rental rates primarily in the retail and industrial portfolios; and contributions from acquisitions, net of dispositions, and completed developments; partially offset by, lower lease surrender revenue. Net Interest Expense (Income) and Other Financing Charges Choice Properties net interest expense and other financing charges in the second quarter of 2025 were $504 million, compared to net interest income and other financing charges of $241 million in the same period in 2024. The change of $745 million was primarily driven by the unfavourable year-over-year change in the fair value adjustment on the Class B LP units ("Exchangeable Units") of $737 million, as a result of the increase in the unit price in the quarter. Net (Loss) Income Choice Properties recorded a net loss of $154 million in the second quarter of 2025, compared to net income of $514 million in the same period in 2024. The unfavourable change of $668 million was primarily driven by: higher net interest expense and other financing charges as described above; and the unfavourable year-over-year impact of the prior year reversal of a transaction related provision of $39 million that was determined to be no longer required; partially offset by, the favourable year-over-year change in the fair value adjustment on investment properties, including those held within equity accounted joint ventures, of $67 million; the favourable year-over-year change in the fair value adjustment of investment in real estate securities of $37 million driven by the change in Allied's unit price; and an increase in rental revenue as described above. Funds from Operations (1) Funds from Operations (1) in the second quarter of 2025 were $192 million, an increase of $7 million compared to the same period in 2024. The increase was primarily due to an increase in rental income and lower general and administrative expenses. The increase was partially offset by higher interest expense and lower interest income. OUTLOOK (2) The Company's 2025 outlook remains unchanged and it continues to expect adjusted net earnings (1) to increase due to the results from its operating segments, and to use excess cash to repurchase shares. Loblaw Loblaw will continue to execute on retail excellence while advancing its growth initiatives with the goal of delivering consistent operational and financial results in 2025. Loblaw's businesses remain well positioned to meet the everyday needs of Canadians. In 2025, Loblaw's results will include the impact of a 53rd week, which is expected to benefit adjusted net earnings per common share (1) growth by approximately 2%. On a full-year comparative basis, excluding the impact of the 53rd week, Loblaw continues to expect: its retail business to grow earnings faster than sales; adjusted net earnings per common share (1) growth in the high single-digits; to continue investing in its store network and distribution centres by investing a net amount of $1.9 billion in capital expenditures, which reflects gross capital investments of approximately $2.2 billion, net of approximately $300 million of proceeds from property disposals; and to return capital to shareholders by allocating a significant portion of free cash flow to share repurchases. Choice Properties Choice Properties is focused on capital preservation, delivering stable and growing cash flows and net asset value appreciation. Its high-quality portfolio is primarily leased to necessity-based tenants and logistics providers, who are less sensitive to economic volatility and therefore provide stability to its overall portfolio. Choice Properties will continue to advance its development program, with a focus on commercial developments, which provides the best opportunity to add high-quality real estate to its portfolio at a reasonable cost and drive net asset value appreciation over time. Choice Properties is confident that its business model, stable tenant base, strong balance sheet and disciplined approach to financial management will continue to benefit its operations. In 2025, Choice Properties is targeting: stable occupancy across the portfolio, resulting in approximately 2% - 3% year-over-year growth in Same-Asset NOI, cash basis (3); annual FFO (1) per unit diluted (3) in a range of $1.05 to $1.06, reflecting approximately 2% - 3% year-over-year growth; and strong leverage metrics, targeting Adjusted Debt to EBITDAFV (3) below 7.5x. FORWARD-LOOKING STATEMENTS This News Release contains forward-looking statements about the Company's objectives, plans, goals, aspirations, strategies, financial condition, results of operations, cash flows, performance, prospects, opportunities and legal and regulatory matters. Specific forward-looking statements in this News Release include, but are not limited to, statements with respect to the Company's anticipated future results, events and plans, strategic initiatives and restructuring, regulatory changes including further healthcare reform, future liquidity, planned capital investments, and the status and impact of information technology systems implementations. These specific forward-looking statements are contained throughout this News Release including, without limitation, in the "Outlook" section of this News Release. Forward-looking statements are typically identified by words such as "expect", "anticipate", "believe", "foresee", "could", "estimate", "goal", "intend", "plan", "seek", "strive", "will", "may", "should" and similar expressions, as they relate to the Company and its management. Forward-looking statements reflect the Company's estimates, beliefs and assumptions, which are based on management's perception of historical trends, current conditions and expected future developments, as well as other factors it believes are appropriate in the circumstances. The Company's estimates, beliefs and assumptions are inherently subject to significant business, economic, competitive and other uncertainties and contingencies regarding future events and, as such, are subject to change. The Company can give no assurance that such estimates, beliefs and assumptions will prove to be correct. Numerous risks and uncertainties could cause the Company's actual results to differ materially from those expressed, implied or projected in the forward-looking statements, including those described in the "Enterprise Risks and Risk Management" section of the Management's Discussion and Analysis in the Company's 2024 Annual Report and the Company's Annual Information Form for the year ended December 31, 2024. Readers are cautioned not to place undue reliance on these forward-looking statements, which reflect the Company's expectations only as of the date of this News Release. Except as required by law, the Company does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. DECLARATION OF QUARTERLY DIVIDENDS Subsequent to the end of the second quarter of 2025, the Company's Board of Directors declared a quarterly dividend on GWL Common Shares, Preferred Shares, Series I, Preferred Shares, Series III, Preferred Shares, Series IV and Preferred Shares, Series V payable as follows: Common Shares $0.8938 per share (on a pre-stock split basis) payable October 1, 2025, to shareholders of record September 15, 2025; Preferred Shares, Series I $0.3625 per share payable September 15, 2025, to shareholders of record August 31, 2025; Preferred Shares, Series III $0.3250 per share payable October 1, 2025, to shareholders of record September 15, 2025; Preferred Shares, Series IV $0.3250 per share payable October 1, 2025, to shareholders of record September 15, 2025; Preferred Shares, Series V $0.296875 per share payable October 1, 2025, to shareholders of record September 15, 2025. 2025 SECOND QUARTER REPORT The Company's 2024 Annual Report and 2025 Second Quarter Report are available in the Investor Centre section of the Company's website at and have been filed on SEDAR+ and are available at INVESTOR RELATIONS Shareholders, security analysts and investment professionals should direct their requests to Roy MacDonald, Group Vice-President, Investor Relations, at the Company's Executive Office or by e-mail at [email protected]. Additional financial information has been filed electronically with various securities regulators in Canada through SEDAR+. This News Release includes selected information on Loblaw, a public company with shares trading on the Toronto Stock Exchange ("TSX"), and selected information on Choice Properties, a public real estate investment trust with units trading on the TSX. For information regarding Loblaw or Choice Properties, readers should refer to the respective materials filed on SEDAR+ from time to time. These filings are also maintained on the respective companies' corporate websites at and Ce rapport est disponible en français. APPENDIX 1: NON-GAAP AND OTHER FINANCIAL MEASURES The Company uses non-GAAP and other financial measures and ratios as it believes these measures and ratios provide useful information to both management and investors with regard to accurately assessing the Company's financial performance and financial condition. Further, certain non-GAAP measures and other financial measures of Loblaw and Choice Properties are included in this document. For more information on these measures, refer to the materials filed by Loblaw and Choice Properties, which are available on or at or respectively. Management uses these and other non-GAAP and other financial measures to exclude the impact of certain expenses and income that must be recognized under GAAP when analyzing underlying consolidated and segment operating performance, as the excluded items are not necessarily reflective of the Company's underlying operating performance and make comparisons of underlying financial performance between periods difficult. The Company adjusts for these items if it believes doing so would result in a more effective analysis of underlying operating performance. The exclusion of certain items does not imply that they are non-recurring. These measures do not have a standardized meaning prescribed by GAAP and therefore they may not be comparable to similarly titled measures presented by other publicly traded companies, and should not be construed as an alternative to other financial measures determined in accordance with GAAP. ADJUSTED EBITDA The Company believes adjusted EBITDA is useful in assessing and making decisions regarding the underlying operating performance of the Company's ongoing operations and in assessing the Company's ability to generate cash flows to fund its cash requirements, including its capital investment program. The following table reconciles adjusted EBITDA to operating income, which is reconciled to GAAP net earnings attributable to shareholders of the Company reported for the periods ended as indicated. (i) The following items impacted adjusted EBITDA in 2025 and 2024: Amortization of intangible assets acquired with Shoppers Drug Mart and Lifemark The acquisition of Shoppers Drug Mart in 2014 included approximately $6 billion of definite life intangible assets, which are being amortized over their estimated useful lives. In 2024, the annual amortization associated with the acquired intangibles was $479 million. The annual amortization will decrease to approximately $130 million in 2025, of which $110 million and $6 million was recorded in the first and second quarters of 2025, respectively. Annual amortization will be approximately $30 million in 2026 and thereafter. The acquisition of Lifemark in 2022 included approximately $299 million of definite life intangible assets, which are being amortized over their estimated useful lives. Fair value adjustment of derivatives Loblaw is exposed to commodity price and U.S. dollar exchange rate fluctuations. In accordance with Loblaw's commodity risk management policy, Loblaw enters into exchange traded futures contracts and forward contracts to minimize cost volatility relating to fuel prices and the U.S. dollar exchange rate. These derivatives are not acquired for trading or speculative purposes. Pursuant to Loblaw's derivative instruments accounting policy, changes in the fair value of these instruments, which include realized and unrealized gains and losses, are recorded in operating income. Despite the impact of accounting for these commodity and foreign currency derivatives on Loblaw's reported results, the derivatives have the economic impact of largely mitigating the associated risks arising from price and exchange rate fluctuations in the underlying commodities and U.S. dollar commitments. Fair value adjustment on investment properties The Company measures investment properties at fair value. Under the fair value model, investment properties are initially measured at cost and subsequently measured at fair value. Fair value is determined based on available market evidence. If market evidence is not readily available in less active markets, the Company uses alternative valuation methods such as discounted cash flow projections or recent transaction prices. Gains and losses on fair value are recognized in operating income in the period in which they are incurred. Gains and losses from disposal of investment properties are determined by comparing the fair value of disposal proceeds and the carrying amount and are recognized in operating income. Fair value adjustment of investment in real estate securities Choice Properties received Allied Class B Units as part of the consideration for the Choice Properties disposition of six office assets to Allied in 2022. Choice Properties recognized these units as investments in real estate securities. The investment in real estate securities is exposed to market price fluctuations of Allied trust units. An increase (decrease) in the market price of Allied trust units results in income (a charge) to operating income. Gain on sale of non-operating property In the second quarter of 2025, Loblaw recorded a gain related to the sale of a non-operating property to a third party of $1 million (2024 – nil). Charges related to settlement of class action lawsuits On July 24, 2024, the Company and Loblaw entered into binding Minutes of Settlement and on January 31, 2025, the Company and Loblaw entered into a Settlement Agreement to resolve nationwide class action lawsuits against them relating to their role in an industry-wide price-fixing arrangement involving certain packaged bread products. In the second quarter of 2024, the Company and Loblaw recorded charges of $256 million and $164 million, respectively, in SG&A, relating to the settlement and related costs. The Settlement Agreement was approved by the Ontario Superior Court of Justice in May 2025 and if approved by the court in Quebec, it will resolve all of the consumers' claims against the Company and Loblaw relating to this matter. Transaction costs and other related recoveries In the second quarter of 2024, Choice Properties recorded a reversal of a transaction related provision for $39 million that was determined to be no longer required. ADJUSTED NET INTEREST EXPENSE AND OTHER FINANCING CHARGES The Company believes adjusted net interest expense and other financing charges is useful in assessing the ongoing net financing costs of the Company. The following table reconciles adjusted net interest expense and other financing charges to GAAP net interest expense and other financing charges reported for the periods ended as indicated. The following item impacted adjusted net interest expense and other financing charges in 2025 and 2024: Fair value adjustment of the Trust Unit liability The Company is exposed to market price fluctuations as a result of the Choice Properties Trust Units held by Unitholders other than the Company. These Trust Units are presented as a liability on the Company's consolidated balance sheets as they are redeemable for cash at the option of the holder, subject to certain restrictions. This liability is recorded at fair value at each reporting date based on the market price of Trust Units at the end of each period. An increase (decrease) in the market price of Trust Units results in a charge (income) to net interest expense and other financing charges. ADJUSTED INCOME TAXES AND ADJUSTED EFFECTIVE TAX RATE The Company believes the adjusted effective tax rate applicable to adjusted earnings before taxes is useful in assessing the underlying operating performance of its business. The following table reconciles the effective tax rate applicable to adjusted earnings before taxes to the GAAP effective tax rate applicable to earnings before taxes as reported for the periods ended as indicated. 12 Weeks Ended ($ millions except where otherwise indicated) Jun. 14, 2025 Jun. 15, 2024 Adjusted operating income (i) $ 1,414 $ 1,323 Adjusted net interest expense and other financing charges (i) 302 271 Adjusted earnings before taxes $ 1,112 $ 1,052 Income taxes $ 302 $ 131 Add impact of the following: Tax impact of items excluded from adjusted earnings before taxes (ii) — 142 Outside basis difference in certain Loblaw shares 16 20 Adjusted income taxes $ 318 $ 293 Effective tax rate applicable to earnings before taxes 31.8 % 16.4 % Adjusted effective tax rate applicable to adjusted earnings before taxes 28.6 % 27.9 % (i) See reconciliations of adjusted operating income and adjusted net interest expense and other financing charges above. (ii) See the adjusted EBITDA table and the adjusted net interest expense and other financing charges table above for a complete list of items excluded from adjusted earnings before taxes. In addition to certain items described in the "Adjusted EBITDA" and "Adjusted Net Interest Expense and Other Financing Charges" sections above, the following item impacted adjusted income taxes and the adjusted effective tax rate in 2025 and 2024: Outside basis difference in certain Loblaw shares The Company recorded a deferred tax recovery of $16 million in the second quarter of 2025 (2024 – $20 million) on temporary differences in respect of GWL's investment in certain Loblaw shares that are expected to reverse in the foreseeable future as a result of GWL's participation in Loblaw's NCIB. ADJUSTED NET EARNINGS AVAILABLE TO COMMON SHAREHOLDERS AND ADJUSTED DILUTED NET EARNINGS PER COMMON SHARE The Company believes that adjusted net earnings available to common shareholders and adjusted diluted net earnings per common share are useful in assessing the Company's underlying operating performance and in making decisions regarding the ongoing operations of its business. The following table reconciles adjusted net earnings available to common shareholders of the Company and adjusted net earnings attributable to shareholders of the Company to net earnings attributable to shareholders of the Company and then to net earnings available to common shareholders of the Company reported for the periods ended as indicated. ($ millions except where otherwise indicated) 12 Weeks Ended Jun. 14, 2025 Jun. 15, 2024 Net earnings attributable to shareholders of the Company $ 268 $ 410 Less: Prescribed dividends on preferred shares in share capital (10) (10) Net earnings available to common shareholders of the Company $ 258 $ 400 Less: Reduction in net earnings due to dilution at Loblaw (4) (3) Net earnings available to common shareholders for diluted earnings per share $ 254 $ 397 Net earnings attributable to shareholders of the Company $ 268 $ 410 Adjusting items (refer to the following table) 143 (6) Adjusted net earnings attributable to shareholders of the Company $ 411 $ 404 Less: Prescribed dividends on preferred shares in share capital (10) (10) Adjusted net earnings available to common shareholders of the Company $ 401 $ 394 Less: Reduction in net earnings due to dilution at Loblaw (4) (3) Adjusted net earnings available to common shareholders for diluted earnings per share $ 397 $ 391 Diluted weighted average common shares outstanding (in millions) 129.6 133.6 The following table reconciles adjusted net earnings available to common shareholders of the Company and adjusted diluted net earnings per common share to GAAP net earnings available to common shareholders of the Company and diluted net earnings per common share as reported for the periods ended as indicated. (i) Contribution from Loblaw, net of non-controlling interests. (ii) Net of income taxes and non-controlling interests, as applicable. GWL CORPORATE FREE CASH FLOW GWL Corporate free cash flow is generated from dividends received from Loblaw, distributions received from Choice Properties, and proceeds from participation in Loblaw's NCIB, less corporate expenses, interest and income taxes paid. (i) GWL Corporate, financing, and other costs includes all other company level activities that are not allocated to the reportable operating segments such as net interest expense, corporate activities, administrative costs and changes in non-cash working capital. Also included are preferred share dividends. CHOICE PROPERTIES' FUNDS FROM OPERATIONS Choice Properties considers Funds from Operations to be a useful measure of operating performance as it adjusts for items included in net income that do not arise from operating activities or do not necessarily provide an accurate depiction of its performance. Funds from Operations is calculated in accordance with the Real Property Association of Canada's Funds from Operations & Adjusted Funds from Operations for International Financial Reporting Standards issued in January 2022. The following table reconciles Choice Properties' Funds from Operations to net income for the periods ended as indicated. SOURCE George Weston Limited
National Post
17-07-2025
- Business
- National Post
Choice Properties Real Estate Investment Trust Reports Results for the Six Months Ended June 30, 2025
Article content TORONTO — Choice Properties Real Estate Investment Trust ('Choice Properties' or the 'Trust') (TSX: today announced its consolidated financial results for the three and six months ended June 30, 2025. The 2025 Second Quarter Report to Unitholders is available in the Investors section of the Trust's website at and has been filed on SEDAR+ at Article content 'Choice Properties delivered another solid quarter, reflecting the strength of our portfolio and disciplined financial strategy,' said Rael Diamond, President and Chief Executive Officer of the Trust. 'Robust demand for our grocery-anchored retail and well-located industrial assets supported our performance, and we advanced our strategic priorities through $427 million in transactions that further strengthened our position.' Article content 2025 Second Quarter Highlights Article content Reported a net loss for the quarter of $154.2 million compared to net income of $513.2 million in the same prior year period. The loss in the current quarter is primarily due to an unfavourable fair value adjustment in the Trust's Exchangeable Units (1). Reported FFO (2) per unit diluted of $0.265, an increase of 3.9% compared to the same prior year period. Period end occupancy remained strong at 97.8%: Retail at 97.8%, Industrial at 98.0%, and Mixed-Use & Residential at 95.4%. Achieved leasing spreads (3) on long-term renewals of 13.2% and 38.9% in the Retail and Industrial portfolios, respectively. Same-Asset NOI on a cash basis (2) increased by 1.4% compared to the same prior year period. Retail increased by 1.7%; Industrial increased by 0.2%. Growth in the industrial segment was impacted by a bad debt provision reversal in the prior year following the resolution of a tenant dispute. Excluding bad debt expense, industrial increased by 4.2%; Mixed-Use & Residential increased by 1.6%. Completed $427.1 million of transactions in the quarter: Acquired an industrial distribution centre in Ajax, ON from Loblaw for a purchase price of $182.9 million. Concurrent with the transaction, the property was leased back to Loblaw. Acquired eight industrial outdoor storage sites located across Canada for a purchase price of $162.0 million. Disposed of nine industrial sites located in Calgary, AB for proceeds of $73.4 million. Acquired a mixed-use parcel in Toronto, ON for $6.0 million and disposed of a retail property in Halifax, NS for $2.8 million. Transferred $13.9 million of properties under development to income producing status, delivering approximately 30,900 square feet of new commercial GLA (including 6,900 square feet associated with a ground lease) on a proportionate share basis (2) through retail intensifications. Invested $34.2 million of capital in development projects on a proportionate share basis (2). Maintained healthy and stable debt metrics with Adjusted Debt to EBITDAFV (2) of 7.2x, Adjusted Debt to Total Assets (2) at 40.8%, and Interest Coverage ratio (2) of 3.3x. Maintained a strong liquidity position with approximately $1.3 billion of available credit and a $13.5 billion pool of unencumbered properties. Article content Subsequent Events Article content Subsequent to quarter end, Choice Properties and Loblaw renewed 39 of a tranche of 41 leases expiring in 2026, comprising 2.52 million of 2.62 million square feet, at a weighted average spread of 8.6% and a weighted average extension term of 5.0 years. Article content (i) Exchangeable Units are required to be classified as financial liabilities at fair value through profit and loss under GAAP. They are recorded at their fair value based on the market trading price of the Trust Units, which results in a negative impact to the financial results when the Trust Unit price rises and a positive impact when the Trust Unit price declines. (ii) Fair value gains (losses) excluding Exchangeable Units includes adjustments to fair value of investment properties, investment in real estate securities, and unit-based compensation. (iii) Includes Trust Units and Exchangeable Units. Article content Quarterly Results Article content Choice Properties reported a net loss of $154.2 million for the second quarter of 2025 compared to net income of $513.2 million in the same prior year period. The decrease of $667.5 million was primarily due to changes in certain non-cash adjustments to fair value including: Article content a $736.2 million unfavourable change in the adjustment to fair value of the Trust's Exchangeable Units due to the increase in the Trust's unit price; partially offset by a $65.5 million favourable change in the adjustment to fair value of investment properties; and a $37.0 million favourable change in the adjustment to fair value of the investment in real estate securities of Allied, driven by the change in Allied's unit price in the quarter. Article content In addition to the fair value changes described above, the reversal of a $38.6 million transaction related provision during the second quarter of 2024 further contributed to the decrease. The decrease was partially offset by higher net operating income of $9.4 million. Article content Year-to-Date Results Article content Choice Properties reported a net loss of $250.5 million for the six months ended June 30, 2025 compared to net income of $655.5 million in the same prior year period. The decrease of $906.0 million was primarily due to changes in certain non-cash adjustments to fair value including: Article content a $1,040.9 million unfavourable change in the adjustment to fair value of the Trust's Exchangeable Units due to the increase in the Trust's unit price; partially offset by a $96.8 million favourable change in the adjustment to fair value of investment properties; and a $57.6 million favourable change in the adjustment to fair value of the investment in real estate securities of Allied, driven by the change in Allied's unit price in the quarter. Article content In addition to the fair value changes described above, the reversal of a $38.6 million transaction related provision during the second quarter of 2024 further contributed to the decrease. The decrease was partially offset by higher net operating income of $15.4 million. Article content Quarterly and Year-to-Date Results Article content For the three and six months ended June 30, 2025, Same-Asset NOI, Cash Basis (2) increased by $3.4 million and $10.1 million, respectively, compared to the same prior year primarily due to increased revenue from higher rental rates on renewals, new leasing, and contractual rent steps mainly in the retail and industrial portfolios. The increase was partially offset by the impact of a bad debt provision reversal in the prior year in the industrial portfolio following the resolution of a tenant dispute. In addition, the increase for the six month period included a property tax incentive recognized in the mixed-use and residential portfolio in the first quarter of 2025. Article content FFO (2) increased by $6.9 million and $10.6 million for the three and six months ended June 30, 2025, respectively. The increase was primarily due to an increase in net operating income and lower general and administrative expenses, partially offset by higher interest expense and lower interest income. Article content AFFO (2) decreased by $9.7 million and $2.5 million for the three and six months ended June 30, 2025, respectively. The decrease was primarily due to the earlier commencement of maintenance capital projects in the current year, partially offset by the increase in FFO (1) as noted above. AFFO is impacted by the seasonality inherent in the timing of executing capital projects. Article content Outlook Article content We are focused on capital preservation, delivering stable and growing cash flows and net asset value appreciation. Our high-quality portfolio is primarily leased to necessity-based tenants and logistics providers, who are less sensitive to economic volatility and therefore provide stability to our overall portfolio. We will continue to advance our development program, with a focus on commercial developments, which provides us with the best opportunity to add high-quality real estate to our portfolio at a reasonable cost and drive net asset value appreciation over time. Article content We are confident that our business model, stable tenant base, strong balance sheet, and disciplined approach to financial management will continue to benefit us. In 2025, Choice Properties is targeting: Article content Stable occupancy across the portfolio, resulting in approximately 2%-3% year-over-year growth in Same-Asset NOI, Cash Basis; Annual FFO per unit diluted in a range of $1.05 to $1.06, reflecting approximately 2%-3% year-over-year growth; and Strong leverage metrics, targeting Adjusted Debt to EBITDAFV below 7.5x. Article content Non-GAAP Financial Measures and Additional Financial Information Article content In addition to using performance measures determined in accordance with International Financial Reporting Standards ('IFRS' or 'GAAP'), Choice Properties also measures its performance using certain non-GAAP measures, and provides these measures in this news release so that investors may do the same. Such measures and related per-unit amounts are not defined by IFRS and therefore should not be construed as alternatives to net income or cash flows from operating activities determined in accordance with IFRS. Furthermore, the supplemental measures used by management may not be comparable to similar measures presented by other real estate investment trusts or enterprises. The non-GAAP measures included in this news release are defined and reconciled to the most comparable GAAP measure below. Choice Properties believes these non-GAAP financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of the Trust for the reasons outlined below. Article content Non-GAAP Measure Description Proportionate Share Represents financial information adjusted to reflect the Trust's equity accounted joint ventures and financial real estate assets and its share of net income (loss) from equity accounted joint ventures and financial real estate assets on a proportionately consolidated basis at the Trust's ownership percentage of the related investment. Management views this method as relevant in demonstrating the Trust's ability to manage the underlying economics of the related investments, including the financial performance and cash flows and the extent to which the underlying assets are leveraged, which is an important component of risk management. Net Operating Income ('NOI'), Accounting Basis Defined as property rental revenue including straight-line rental revenue, reimbursed contract revenue and lease surrender revenue, less direct property operating expenses and realty taxes, and excludes certain expenses such as interest expense and indirect operating expenses in order to provide results that reflect a property's operations before consideration of its financing or the costs of operating the entity in which it is held. Management believes that NOI is an important measure of operating performance for the Trust's commercial real estate assets that is used by real estate industry analysts, investors and management, while also being a key input in determining the fair value of the Choice Properties portfolio. NOI, Cash Basis Defined as property rental revenue and reimbursed contract revenue, excluding straight-line rental revenue and lease surrender revenue, less direct property operating expenses and realty taxes, and excludes certain expenses such as interest expense and indirect operating expenses in order to provide results that reflect a property's operations before consideration of its financing or the costs of operating the entity in which it is held. Management believes NOI, Cash Basis is a useful measure in understanding period-over-period changes in income from operations due to occupancy, rental rates, operating costs and realty taxes. Same-Asset NOI, Cash Basis and Same-Asset NOI, Accounting Basis Same-Asset NOI is used to evaluate the period-over-period performance of those commercial properties and stabilized residential properties, owned and operated by Choice Properties since January 1, 2024, inclusive. NOI from properties that have been (i) purchased, (ii) disposed, (iii) subject to significant change as a result of new development, redevelopment, expansion, or demolition, or (iv) residential properties not yet stabilized (collectively, 'Transactions') are excluded from the determination of Same-Asset NOI. Same-Asset NOI, Cash Basis, is useful in evaluating the realization of contractual rental rate changes embedded in lease agreements and/or the expiry of rent-free periods, while also being a useful measure in understanding period-over-period changes in NOI due to occupancy, rental rates, operating costs and realty taxes, before considering the changes in NOI that can be attributed to Transactions and development activities. Funds from Operations ('FFO') Calculated in accordance with the Real Property Association of Canada's ('REALPAC') Funds From Operations (FFO) & Adjusted Funds From Operations (AFFO) for IFRS issued in January 2022. Management considers FFO to be a useful measure of operating performance as it adjusts for items included in net income (or loss) that do not arise from operating activities or do not necessarily provide an accurate depiction of the Trust's past or recurring performance, such as adjustments to fair value of Exchangeable Units, investment properties, investment in real estate securities, and unit-based compensation. From time to time, the Trust may enter into transactions that materially impact the calculation and are eliminated from the calculation for management's review purposes. Management uses and believes that FFO is a useful measure of the Trust's performance that, when compared period over period, reflects the impact on operations of trends in occupancy levels, rental rates, operating costs and realty taxes, acquisition activities and interest costs. Adjusted Funds from Operations ('AFFO') Calculated in accordance with REALPAC's Funds From Operations (FFO) & Adjusted Funds From Operations (AFFO) for IFRS issued in January 2022. Management considers AFFO to be a useful measure of operating performance as it further adjusts FFO for capital expenditures that sustain income producing properties and eliminates the impact of straight-line rental revenue. AFFO is impacted by the seasonality inherent in the timing of executing property capital projects. In calculating AFFO, FFO is adjusted to exclude straight-line rental revenue and deduct expenditure relating to internal leasing activities and property capital projects. Working capital changes, viewed as short-term cash requirements or surpluses, are deemed financing activities pursuant to the methodology and are not considered when calculating AFFO. Capital expenditures which are not deducted in the calculation of AFFO comprise those which generate a new investment stream, such as constructing a new retail pad during property expansion or intensification, development activities or acquisition activities. Accordingly, AFFO differs from FFO in that AFFO excludes from its definition certain non-cash revenues and expenses recognized under GAAP, such as straight-line rental revenue, but also includes capital and leasing costs incurred during the period which are capitalized for GAAP purposes. From time to time, the Trust may enter into transactions that materially impact the calculation and are eliminated from the calculation for management's review purposes. AFFO Payout Ratio AFFO payout ratio is a supplementary measure used by Management to assess the sustainability of the Trust's distribution payments. The ratio is calculated using cash distributions declared divided by AFFO. Earnings before Interest, Taxes, Depreciation, Amortization and Fair Value ('EBITDAFV') Defined as net income (loss) attributable to Unitholders, reversing, where applicable, income taxes, interest expense, amortization expense, depreciation expense, adjustments to fair value and other adjustments as allowed in the Trust Indentures, as supplemented. Management believes EBITDAFV is useful in assessing the Trust's ability to service its debt, finance capital expenditures and provide distributions to its Unitholders. Total Adjusted Debt Defined as variable rate debt (construction loans, mortgages, and credit facility) and fixed rate debt (senior unsecured debentures, construction loans and mortgages), as measured on a proportionate share basis, and does not include the Exchangeable Units which are included as part of unit equity on account of the Exchangeable Units being economically equivalent and receiving equal distributions to the Trust Units. Total Adjusted Debt is presented on a net basis to include the impact of other finance charges such as debt placement costs and discounts or premiums, and defeasance or other prepayments of debt. Net Asset Value ('NAV') NAV is an alternative measurement of equity. It is calculated by summing Unitholder's Equity and the fair value of the Trust's Exchangeable Units. Under GAAP, Exchangeable Units are considered debt. The Exchangeable Units are not required to be repaid and the holder of these units has the right to convert them into Units, therefore management considers the Exchangeable Units to be equivalent to equity. NAV is a useful measure as it reflects management's view of the intrinsic value of the Trust. NAV per unit allows management to determine if the Trust is trading at a discount or premium to its intrinsic value. Adjusted Debt to EBITDAFV and Adjusted Debt to EBITDAFV, net of cash Calculated as Total Adjusted Debt divided by EBITDAFV. This ratio is used to assess the financial leverage of Choice Properties, measure its ability to meet financial obligations, and provide a snapshot of its balance sheet strength. Management also presents this ratio with Total Adjusted Debt calculated net of cash and cash equivalents at the measurement date. Article content Three Months Six Months Net Operating Income Rental revenue $ 350,779 $ 25,496 $ 376,275 $ 697,691 $ 50,630 $ 748,321 Property operating costs (99,223 ) (7,614 ) (106,837 ) (200,286 ) (15,444 ) (215,730 ) 251,556 17,882 269,438 497,405 35,186 532,591 Other Income and Expenses Interest income 9,028 (2,893 ) 6,135 20,689 (7,203 ) 13,486 Investment income 5,315 — 5,315 10,630 — 10,630 Fee income 738 — 738 3,208 — 3,208 Net interest expense and other financing charges (148,957 ) (6,818 ) (155,775 ) (295,146 ) (13,677 ) (308,823 ) General and administrative expenses (14,976 ) — (14,976 ) (29,713 ) — (29,713 ) Share of income from equity accounted joint ventures 5,720 (5,720 ) — 21,875 (21,875 ) — Amortization of intangible assets (250 ) — (250 ) (500 ) — (500 ) Adjustment to fair value of unit-based compensation (875 ) — (875 ) (893 ) — (893 ) Adjustment to fair value of Exchangeable Units (364,124 ) — (364,124 ) (601,596 ) — (601,596 ) Adjustment to fair value of investment properties 93,486 (2,451 ) 91,035 123,444 7,569 131,013 Adjustment to fair value of investment in real estate securities 9,093 — 9,093 119 — 119 Loss before Income Taxes (154,246 ) — (154,246 ) (250,478 ) — (250,478 ) Income tax expense (1 ) — (1 ) (2 ) — (2 ) Net Loss $ (154,247 ) $ — $ (154,247 ) $ (250,480 ) $ — $ (250,480 ) Article content The following table reconciles net income, as determined in accordance with GAAP, to net income on a proportionate share basis (2) for the three and six months ended June 30, 2024: Article content Three Months Six Months Net Operating Income Rental revenue $ 335,388 $ 22,864 $ 358,252 $ 673,346 $ 46,314 $ 719,660 Property operating costs (93,195 ) (8,041 ) (101,236 ) (191,300 ) (16,287 ) (207,587 ) 242,193 14,823 257,016 482,046 30,027 512,073 Residential Inventory Income Gross sales — — — 11,268 — 11,268 Cost of sales — — — (9,234 ) — (9,234 ) — — — 2,034 — 2,034 Other Income and Expenses Interest income 15,275 (6,147 ) 9,128 25,034 (8,075 ) 16,959 Investment income 5,315 — 5,315 10,630 — 10,630 Fee income 625 — 625 1,326 — 1,326 Net interest expense and other financing charges (146,204 ) (4,813 ) (151,017 ) (288,488 ) (11,176 ) (299,664 ) General and administrative expenses (17,200 ) — (17,200 ) (31,838 ) — (31,838 ) Share of income from equity accounted joint ventures 1,370 (1,370 ) — 6,088 (6,088 ) — Amortization of intangible assets (250 ) — (250 ) (500 ) — (500 ) Transaction costs and other related expenses 38,615 — 38,615 38,615 — 38,615 Adjustment to fair value of unit-based compensation 1,288 — 1,288 2,069 — 2,069 Adjustment to fair value of Exchangeable Units 372,039 — 372,039 439,323 — 439,323 Adjustment to fair value of investment properties 28,035 (2,493 ) 25,542 26,670 (4,688 ) 21,982 Adjustment to fair value of investment in real estate securities (27,870 ) — (27,870 ) (57,511 ) — (57,511 ) Income before Income Taxes 513,231 — 513,231 655,498 — 655,498 Income tax recovery — — — 12 — 12 Net Income $ 513,231 $ — $ 513,231 $ 655,510 $ — $ 655,510 Article content The following table reconciles net (loss) income, as determined in accordance with GAAP, to Net Operating Income, Cash Basis for the periods ended as indicated: Article content For the periods ended June 30 ($ thousands) Three Months Six Months 2025 2024 Change $ 2025 2024 Change $ Net (Loss) Income $ (154,247 ) $ 513,231 $ (667,478 ) $ (250,480 ) $ 655,510 $ (905,990 ) Residential inventory income — — — — (2,034 ) 2,034 Interest income (9,028 ) (15,275 ) 6,247 (20,689 ) (25,034 ) 4,345 Investment income (5,315 ) (5,315 ) — (10,630 ) (10,630 ) — Fee income (738 ) (625 ) (113 ) (3,208 ) (1,326 ) (1,882 ) Net interest expense and other financing charges 148,957 146,204 2,753 295,146 288,488 6,658 General and administrative expenses 14,976 17,200 (2,224 ) 29,713 31,838 (2,125 ) Share of income from equity accounted joint ventures (5,720 ) (1,370 ) (4,350 ) (21,875 ) (6,088 ) (15,787 ) Amortization of intangible assets 250 250 — 500 500 — Transaction costs and other related expenses — (38,615 ) 38,615 — (38,615 ) 38,615 Adjustment to fair value of unit-based compensation 875 (1,288 ) 2,163 893 (2,069 ) 2,962 Adjustment to fair value of Exchangeable Units 364,124 (372,039 ) 736,163 601,596 (439,323 ) 1,040,919 Adjustment to fair value of investment properties (93,486 ) (28,035 ) (65,451 ) (123,444 ) (26,670 ) (96,774 ) Adjustment to fair value of investment in real estate securities (9,093 ) 27,870 (36,963 ) (119 ) 57,511 (57,630 ) Income tax expense (recovery) 1 — 1 2 (12 ) 14 Net Operating Income, Accounting Basis – GAAP 251,556 242,193 9,363 497,405 482,046 15,359 Straight-line rental revenue 570 1,434 (864 ) 937 1,173 (236 ) Lease surrender revenue (74 ) (1,224 ) 1,150 (158 ) (3,773 ) 3,615 Net Operating Income, Cash Basis – GAAP 252,052 242,403 9,649 498,184 479,446 18,738 Adjustments for equity accounted joint ventures and financial real estate assets 16,347 14,165 2,182 32,285 28,755 3,530 Article content The following table reconciles net (loss) income, as determined in accordance with GAAP, to Funds from Operations for the periods ended as indicated: Article content For the periods ended June 30 Three Months Six Months ($ thousands except where otherwise indicated) 2025 2024 Change $ 2025 2024 Change $ Net (Loss) Income $ (154,247 ) $ 513,231 $ (667,478 ) $ (250,480 ) $ 655,510 $ (905,990 ) Add (deduct) impact of the following: Amortization of intangible assets 250 250 — 500 500 — Transaction costs and other related expenses — (38,615 ) 38,615 — (38,615 ) 38,615 Adjustment to fair value of unit-based compensation 875 (1,288 ) 2,163 893 (2,069 ) 2,962 Adjustment to fair value of Exchangeable Units 364,124 (372,039 ) 736,163 601,596 (439,323 ) 1,040,919 Adjustment to fair value of investment properties (93,486 ) (28,035 ) (65,451 ) (123,444 ) (26,670 ) (96,774 ) Adjustment to fair value of investment properties to proportionate share (2) 2,451 2,493 (42 ) (7,569 ) 4,688 (12,257 ) Adjustment to fair value of investment in real estate securities (9,093 ) 27,870 (36,963 ) (119 ) 57,511 (57,630 ) Interest otherwise capitalized for development in equity accounted joint ventures 2,340 3,069 (729 ) 4,836 5,577 (741 ) Exchangeable Units distributions 76,189 75,199 990 151,718 149,739 1,979 Internal expenses for leasing 2,163 2,579 (416 ) 4,573 5,067 (494 ) Income tax expense (recovery) 1 — 1 2 (12 ) 14 Funds from Operations $ 191,567 $ 184,714 $ 6,853 $ 382,506 $ 371,903 $ 10,603 FFO per unit – diluted $ 0.265 $ 0.255 $ 0.010 $ 0.528 $ 0.514 $ 0.014 Weighted average number of units outstanding – diluted (i) 723,810,797 723,659,539 151,258 723,790,848 723,664,669 126,179 (i) Includes Trust Units and Exchangeable Units. Article content For the periods ended June 30 Three Months Six Months ($ thousands except where otherwise indicated) 2025 2024 Change $ 2025 2024 Change $ Funds from Operations $ 191,567 $ 184,714 $ 6,853 $ 382,506 $ 371,903 $ 10,603 Add (deduct) impact of the following: Internal expenses for leasing (2,163 ) (2,579 ) 416 (4,573 ) (5,067 ) 494 Straight-line rental revenue 570 1,434 (864 ) 937 1,173 (236 ) Straight-line rental revenue adjustment to proportionate share (2) (1,535 ) (658 ) (877 ) (2,901 ) (1,272 ) (1,629 ) Property capital (12,171 ) (2,606 ) (9,565 ) (12,600 ) (7,000 ) (5,600 ) Direct leasing costs (2,316 ) (2,024 ) (292 ) (3,775 ) (3,196 ) (579 ) Tenant improvements (5,487 ) (1,369 ) (4,118 ) (8,814 ) (4,395 ) (4,419 ) Operating capital expenditures adjustment to proportionate share (2) (1,520 ) (312 ) (1,208 ) (3,570 ) (2,400 ) (1,170 ) Adjusted Funds from Operations $ 166,945 $ 176,600 $ (9,655 ) $ 347,210 $ 349,746 $ (2,536 ) AFFO per unit – diluted $ 0.231 $ 0.244 $ (0.013 ) $ 0.480 $ 0.483 $ (0.003 ) AFFO payout ratio – diluted (i) 83.5 % 77.9 % 5.6 % 79.9 % 78.3 % 1.6 % Distribution declared per unit $ 0.193 $ 0.190 $ 0.003 $ 0.384 $ 0.378 $ 0.006 Weighted average number of units outstanding – diluted (ii) 723,810,797 723,659,539 151,258 723,790,848 723,664,669 126,179 (i) AFFO payout ratio is calculated as cash distributions declared divided by AFFO. (ii) Includes Trust Units and Exchangeable Units. Article content The following table reconciles Net Asset Value (2) as at the dates indicated below: Article content ($ thousands except where otherwise indicated) As at June 30, 2025 As at December 31, 2024 Change $ Unitholders' equity $ 4,521,720 $ 4,899,800 $ (378,080 ) Exchangeable Units 5,885,346 5,283,750 601,596 NAV (2) $ 10,407,066 $ 10,183,550 $ 223,516 NAV (2) per unit $ 14.38 $ 14.07 $ 0.31 Trust Units and Exchangeable Units, end of period 723,810,797 723,710,497 100,300 Article content Management's Discussion and Analysis and Consolidated Financial Statements and Notes Article content Information appearing in this news release is a select summary of results. This news release should be read in conjunction with the Choice Properties 2025 Second Quarter Report to Unitholders, which includes the unaudited interim period condensed consolidated financial statements and MD&A for the Trust, and is available at and on SEDAR+ at Article content Conference Call and Webcast Article content Management will host a conference call on Friday, July 18, 2025 at 10:00 AM (EDT) with a simultaneous audio webcast. To access via teleconference, please dial +1 (240) 789-2714 or +1 (888) 330-2454 and enter the event passcode: 4788974. The link to the audio webcast will be available on Article content Choice Properties is a leading Real Estate Investment Trust that creates enduring value through places where people thrive. Article content We are more than a national owner, operator and developer of high-quality commercial and residential real estate. We believe in creating spaces that enhance how our tenants and communities come together to live, work, and connect. This includes our industry leadership in integrating environmental, social and economic sustainability practices into all aspects of our business. In everything we do, we are guided by a shared set of values grounded in Care, Ownership, Respect and Excellence. For more information, visit Choice Properties' website at and Choice Properties' issuer profile at Article content Cautionary Statements Regarding Forward-looking Statements Article content This news release contains forward-looking statements relating to Choice Properties' operations and the environment in which the Trust operates, which are based on management's expectations, estimates, forecasts and projections. These statements are not guarantees of future performance and involve risks and uncertainties that are difficult to control or predict. Therefore, actual outcomes and results may differ materially from those expressed in these forward-looking statements. Readers, therefore, should not place undue reliance on any such forward-looking statements. Further, a forward-looking statement speaks only as of the date on which such statement is made. Management undertakes no obligation to publicly update any such statement, to reflect new information or the occurrence of future events or circumstances, except as required by law. Article content Numerous risks and uncertainties could cause the Trust's actual results to differ materially from those expressed, implied or projected in the forward-looking statements, including those described in Section 12 'Enterprise Risks and Risk Management' of the Trust's MD&A for the year ended December 31, 2024 and those described in the Trust's Annual Information Form for the year ended December 31, 2024. Article content Article content Article content
