RFA Financial (RFA) Q2 2025 earnings summary

Executive summary

• Occupancy improved to 87.8% as of June 30, up from 87.1% at March 31, driven by a major U.S. industrial lease commencement.

• Achieved 3.6% rental rate growth on 210,643 sq ft of renewals, reflecting portfolio strength.

• Disposed of a Canadian retail property for CAD 4.8 million and repaid CAD 200 million in senior unsecured debentures.

• Utilized NCIB to repurchase 1,771,089 common units and 58,900 preferred units.

• Focused on reducing leverage, strengthening the balance sheet, and unlocking long-term value for unitholders.

Financial highlights

• Net asset value per unit was CAD 12.98 at quarter end, down from CAD 13.75 at December 31, 2024.

• Debt to gross book value stood at 41.1% as of June 30, up from 40.2% at year-end.

• Revenue for Q2 2025 was $59.1 million, down 30.3% year-over-year; net loss was $23.5 million versus net income of $0.8 million in Q2 2024.

• FFO for Q2 2025 was $17.0 million ($0.17 per unit diluted), down 40.9% year-over-year; AFFO was $8.2 million ($0.08 per unit diluted), down 51.9%.

• FFO payout ratio increased to 88.2% from 55.6% year-over-year; AFFO payout ratio rose to 187.5% from 93.8%.

Outlook and guidance

• Confident that execution of the current strategy will support long-term distribution sustainability and net asset value growth.

• Management expects further improvement in debt metrics and liquidity as additional dispositions are completed.

• Expect resolution of the Common R portfolio before year-end, with ongoing discussions and optimism for a transaction.

• Remain opportunistic on acquisitions and capital allocation, evaluating various opportunities across asset classes.

• Focus remains on maximizing long-term value for unitholders and capitalizing on high-quality opportunities.