Choice Properties Real Est Invstmnt Trst Q2 Earnings Call Highlights

Choice Properties Real Est Invstmnt Trst Q2 Earnings Call Highlights Written by MarketBeat July 23, 2026 Share Link copied to clipboard. Image from MarketBeat Media, LLC. Key Points Choice Properties reported a solid Q2 with portfolio occupancy at 97.7% and same-asset net operating income up 2.8%, driven by strong leasing spreads in both retail and industrial assets. The retail portfolio remained resilient, with 97.4% occupancy and 12.4% renewal spreads, while the company continued repositioning former Loblaw and Toys “R” Us spaces into higher-rent multi-tenant uses. Progress on the First Capital acquisition is continuing, with shareholder and court approvals already secured and management still expecting the deal to close in the fourth quarter, while the REIT reaffirmed 2026 guidance for stable occupancy and diluted FFO per unit of CAD 1.08 to CAD 1.10. Interested in Choice Properties Real Est Invstmnt Trst? Here are five stocks we like better . Choice Properties Real Est Invstmnt Trst TSE: CHP.UN reported what management described as a solid second quarter, supported by high occupancy, strong leasing spreads and continued progress on retail repositioning and industrial development initiatives. On the company’s Q2 2026 conference call, President and Chief Executive Officer Rael Diamond said the results reflected “the strength of our portfolio and the disciplined execution of our strategy.” He cited strategic leasing in the REIT’s necessity-based retail portfolio and tenant demand in its industrial portfolio as key contributors. Get CHP.UN alerts: Sign Up Portfolio occupancy ended the quarter at 97.7%, down 40 basis points from the prior quarter. Diamond said the decline primarily reflected planned vacancies tied to strategic repositioning initiatives. Average leasing spreads were 19%, while same-asset net operating income grew 2.8%. Retail Leasing Remains Resilient Choice Properties’ retail portfolio ended the quarter at 97.4% occupancy. During the quarter, the REIT completed 643,000 square feet of renewals and 83,000 square feet of new leasing. Retail renewal spreads averaged 12.4%, including increases across categories such as liquor, restaurants and dollar stores. Diamond noted that the renewal spread included 318,000 square feet of fixed-rate option renewals. Excluding those fixed-rate renewals, the average retail renewal spread was approximately 20%. Retail retention was 66%, which Diamond said was mainly due to known non-renewals of two large spaces previously leased to Loblaw, totaling 172,000 square feet. He said both spaces had been used for storage or temporary purposes and carried single-digit gross rents because of the flexible nature of their leases. The first space, a 90,000-square-foot location at Bloor and Dundas, is being converted into a multi-tenant configuration with commitments from Shoppers Drug Mart and GoodLife. Diamond said Choice turned the space over to Shoppers Drug Mart for fixturing during the quarter, with a target opening later this year. Possession for GoodLife is targeted in early 2027. The second space is an 82,000-square-foot location in Laval, where management is pursuing a similar backfill strategy. David Muallim, Senior Vice President of Leasing and Operations, said the Laval site requires “a bit of a rezoning process,” adding that the company expects to share more in coming quarters. Excluding the two Loblaw non-renewals, retail retention was approximately 80%, which Diamond said was broadly in line with historical levels. He added that about 50% of the second-quarter vacancy space has already been re-leased at rents well above expiring rates. Choice also reported progress on former Toys “R” Us locations. No Frills has taken possession and is fixturing at Don Mills Crossing, while the company remains in active discussions with its joint venture partner on two remaining locations. Subsequent to quarter-end, Choice completed the renewal of its 2027 tranche of Loblaw leases, covering 50 retail locations and 3.6 million square feet. The leases were renewed at an average spread of 8.8% and an average term of five years. Diamond said the renewals address approximately 67% of the REIT’s 2027 retail lease maturities. Industrial Portfolio Delivers Strong Spreads Choice’s industrial portfolio occupancy was stable at 98.6%. The REIT completed 353,000 square feet of industrial renewals during the quarter, with an 80.6% retention rate and an average renewal spread of 40.2%. Activity was concentrated in Ontario and Alberta. At Choice Caledon Business Park in the Greater Toronto Area, rent commenced in April at the recently completed National Logistics Services building. Construction is also progressing on Building D, with completion and occupancy targeted for the second half of 2027. Niall Collins, Executive Vice President of Development and Construction, said Building D is “the only 1 million square foot project that’s under construction right now” and that the company is encoura