SmartCentres Reports Stable Performance and Strong Leasing Momentum

TORONTO, Nov. 04, 2026 /CourierPR/ -- SmartCentres Real Estate Investment Trust reported stable operating performance for the quarter ending September 30, 2026, highlighting continued leasing momentum and growing occupancy. The trust's retail portfolio remains resilient, with an in-place and committed occupancy rate of 98.2%, marking a 10 basis point improvement from the previous quarter. The trust has extended approximately 57,000 square feet of lease maturities with strong rent growth of 11.8% (excluding Anchors) and 6.8% (including Anchors), bringing the total to 89% of leases maturing in 2026.

The trust's retail operations have seen a 2.5% increase in Same Properties NOI (Net Operating Income) for the three months ended September 30, 2026, compared to the same period in 2025, with a 3.8% increase excluding Anchors. This growth is attributed to higher net rental income from lease-up and renewal activities across the trust's retail portfolio. Additionally, the trust has maintained strong leasing momentum, with approximately 104,000 square feet of vacant space leased during the quarter, contributing to a total of 408,000 square feet leased year to date. The trust also executed leases for approximately 330,000 square feet during the quarter, bringing the total to 393,000 square feet year to date.

In the development sector, the trust's retail growth program continues to progress with the construction of three new SmartCentres anchored by Walmart in Kingston, Ontario, Lindsay, Ontario, and Winnipeg, Manitoba. A long-term lease with Walmart has been signed for Kingston, Ontario, and construction is expected to begin in the fourth quarter of 2026. The trust has also completed the construction of self-storage facilities in Montreal and Laval, bringing its operating portfolio to 16 facilities and creating another meaningful source of recurring cash flow.

The trust has further strengthened its balance sheet and extended its debt maturity profile through the issuance of $450 million of unsecured debentures. The net proceeds from this issuance were used to repay maturing debt and to repay outstanding floating rate debt on operating lines, providing additional financial flexibility to support future growth. The trust has also completed the construction of the 200,000 square foot Canadian Tire flagship store in Toronto’s Leaside neighbourhood, with delivery to the tenant expected in the fourth quarter of 2026. Construction of the 65-unit rental building within the ArtWalk block at the Vaughan Metropolitan Centre has commenced, with the underground work completed. The underground parking structure is also complete, and the formwork has reached the eighteenth floor during the quarter.

The trust has continued to advance its development initiatives, with the construction of the 65-unit rental building within the ArtWalk block at the Vaughan Metropolitan Centre advancing as planned. The underground work has been completed, and the formwork has reached the eighteenth floor. The trust has also completed the construction of self-storage facilities in Montreal (Notre-Dame) and Laval East, Quebec, increasing the operating self-storage portfolio to 16 facilities. Construction continues to progress at Burnaby and Victoria, British Columbia, and Edmonton (Allard), Alberta, with all three facilities expected to open in 2027. Construction contracts have also been awarded for the Edmonton (127 Ave NW) facility, while the trust and its partner continue to pursue municipal approvals for two additional sites in Ontario and British Columbia.

The trust has reported a net operating income of $141.8 million for the three months ended September 30, 2026, representing an increase of $0.5 million, or 0.4%, compared to the same period in 2025. The increase was primarily attributable to higher net rental income from lease-up and renewal activities across the trust's retail portfolio, offset by a decrease in net profit on residential sales, following the completion of all townhome closings at the Vaughan NW project in the second quarter of 2026. The trust's FFO (Funds from Operations) per Unit for the three months ended September 30, 2026, was $0.54, compared to $0.59 for the same period in 2025. The decrease was primarily due to higher interest expense and a decrease in fair value adjustment on TRS, which was fully settled in the second quarter of 2026. FFO with adjustments per Unit decreased to $0.55 from $0.56 for the same period in 2025, primarily attributable to higher interest expense.