Message from the CEO
Dear All Island REIT Unitholders,
We’re pleased to share our Q1 2025 financial results and provide an update on the continued progress Management is making in delivering strong, long-term value for our unitholders.
Net Asset Value (NAV) Update
Management engaged a third-party appraiser to support the repricing of the NAV per unit at December 31,
Based on this review and strong revenue growth across the portfolio, the NAV per unit has increased from $18.35 to $18.87.
This increase reflects ongoing value creation and represents a one-year annualized return of 10.14% for Class F DRIP units, or 10.85% since inception (annualized).
Year to Date September 30, 2025 Results
Financial Highlights
- All Island REIT generated strong year-over-year rental growth, increasing rental revenue by $2,266,000 (19.91%) compared to the prior year, primarily due to the significant acquisitions completed earlier this year. Excluding these acquisitions, rent rental revenue grew by $660,000 (5.76%), reflecting strong rental growth on turnover and stabilized vacancy.
- All Island REIT increased its net operating income by $1,611,000 (23.41%), or $431,700 (6.31%) excluding acquisitions, outpacing revenue growth and highlighting our focus on driving efficiencies and reducing operating expenses in the portfolio.
- Net income, excluding fair value increases, decreased by $364,000 (12.07%) in comparison to the prior year due to bridge financing costs associated with the Q1 acquisitions and investments in our brand and capital raising platform. These are one-time costs incurred primarily in Q1. Net income for the three months ended September 30, 2025 increased $31,600 (3.90%) from the prior year.
Operating Highlights
- Vacancy improved materially: economic vacancy fell from its 6.26% peak in Q1 to 2.17% in Q3, reflecting healthy demand and effective leasing execution
- Annual rent increases and stronger turnover rents contributed to a 5.76% year-over-year uplift in same-property rental revenues.
Acquisitions
- We continue to execute on our strategy to acquire individual leasehold units as they come onto the market. Year-to-date, we have purchased five units totaling $1,575,000. These units are estimated to add $92,800 in annual net operating income to the portfolio, generating a yield of 5.90%, which significantly outpaces the Victoria rental market (4.00%).
Distribution Policy
- All Island REIT has historically used a percentage of NAV to calculate its quarterly distribution. As the NAV per unit was updated annually in March, cash distributions remained consistent quarter over quarter. With the NAV per unit now updated quarterly, and in order to ensure predictable cash flow and to align us with industry practice, management will transition to a fixed $/unit distribution beginning December 31, 2025. The distribution rate will be reviewed regularly and updated as deemed prudent.
- The quarterly $/unit distribution for December, 31, 2025 will be held at the Q3 rate of $0.1606/unit.
Auditor Appointment
- As part of our commitment to strong governance, the Trust recently completed an auditor review through a competitive tender process. Following this process, we have appointed Deloitte as our new external auditor for the upcoming fiscal year. We look forward to continuing our relationship with MNP through other channels, including tax planning and consulting, and thank them for their excellent service as our auditor over the past seven years.
Looking ahead, with a focus on stabilized operations and increased rental income, All Island REIT is well positioned for a strong Q4.
Sincerely,
Brendan Sutton
CEO
All Island REIT
References
Class F DRIP Units: Unitholders receive distributions in the form of additional units through the Distribution Reinvestment Plan (DRIP).
Inception: AIE REIT was established in May 2017 with the acquisition of a $65 million portfolio in the Comox Valley, excluding two commercial properties that were sold shortly after completion.
Management: Management of All Island Equity REIT.
Net Asset Value (NAV): Aggregate value of the trust’s properties less the aggregate value of the trust’s liabilities, subject to valuation rules set and estimates made by the Trust from time to time.Trust or All Island REIT: All Island Equity REIT, a Real Estate Investment Trust.