Key takeaways:
- Skyline Apartment REIT portfolio achieves record average in-place rents, driving higher income.
- Skyline Industrial REIT occupancy rate remains well above the national average.
- Skyline Retail REIT leasing spreads on existing space remains on track to surpass last year’s record performance.
- Skyline Clean Energy Fund achieves 25.60% increase in Net Operating Income.
Even in a complex and unsettled economic environment, Skyline’s portfolio of Funds delivered a steady performance. Proactive management and strong asset positioning across our Apartment, Industrial, Retail, and Clean Energy platforms continue to provide consistent distribution and unit value growth investors have come to expect. With preliminary third-quarter of 2025 results available, we are pleased to share key highlights with our investors and stakeholders.
All figures provided are on a year-over-year basis, unless otherwise indicated.
Skyline Apartment REIT: Incremental revenue growth supports steady performance
Skyline Apartment REIT, the largest fund by portfolio value, delivered another solid quarter of performance in Q3. The REIT’s fair market value rose to $5.25 billion, supported by a diversified portfolio of 20,731 suites across 50 communities in seven provinces. Key rental metrics remained a core strength, as average in-place rent grew 5.89%, outpacing the Canadian multifamily annual growth rate of 4.8% in the previous quarter.
Positive leasing trends continued to underpin steady financial results. Total rental income increased 0.64% to $95.46 million, driven primarily by higher average in-place rents across the portfolio. Net Operating Income Margin (NOI%) reached 57.19%, surpassing the 2025 forecast of 55.18% by two percentage points and reflected sustained operational efficiency.
Funds from Operations (FFO), a key measure of operating performance, totalled $23.46 million for the year, while economic occupancy came in at 95.01%. Gross potential rent, which represents the total rental income a property could generate if every unit or space were 100% leased at market, increased 1.87%.
Overall, we are encouraged with these results given the slowdown in Canadian immigration levels in 2025. Since most of the cutbacks targeted non-permanent residents—particularly student admissions—Skyline was comparatively insulated from the impact relative to our competitors. With economic fundamentals expected to improve in 2026, the portfolio is well-positioned to capture the benefits of strengthening labour markets.
Skyline Industrial REIT: Occupancy rate remains well below the national average
In an environment where global trade uncertainty remained persistent, Industrial REIT turned in a solid operating performance over the past year. The portfolio remained steady at a fair value of $1.77 billion, encompassing 51 properties across five provinces. With eight development projects in the pipeline, investors can anticipate future growth as these properties come online.
On the topline, base rental revenue grew 2.85% year-over-year to $23.44 million, driven by a near-record $9.52 per square foot average in-place rent. This increase in revenue drove 3.77% increase in FFO reflecting improved free cash flow in the REIT. Occupancy remained robust at 97.2%, significantly above the national average vacancy rate of 5.4%.
With improving overall economic fundamentals, the 2025 Budget’s lower business tax rate, and gradually easing trade uncertainty, Industrial REIT is well-positioned to capitalize on these transitional tailwinds over the next year.
Skyline Retail REIT: Record average in-place rents drive growth
With approximately $1.61 billion in assets under management, Skyline Retail REIT’s portfolio covers over 5.16 million square feet of gross leasable area across 63 properties in four provinces.
Compared to the same quarter last year, base rent increased 0.26% to $25.00 million, driven by a record average annual in-place rent, which reached over twenty dollars per square foot ($20.02) for the first time. FFO came in virtually unchanged at $11.93 million over the prior year, while economic occupancy rose slightly to 97.4%. Notably, leasing spreads on existing space remains on track to surpass last year’s record performance.
With the availability of quality space in short supply in Canada, demand for well-located properties continues apace—particularly in secondary and tertiary markets. With a roster comprised of almost 80% essential retail tenants of leading Canadian essential retailers, the tenant base provides a foundation for resilient long-term income in even in challenging consumer spending environments.
Skyline Clean Energy Fund: Double-digit revenue increase drives profitability
Skyline Clean Energy Fund’s renewable energy portfolio finished Q2 2025 with approximately $404 million in assets under management. With 84 solar projects and two biogas facilities, the portfolio delivered a total power generation capacity of 94.72 megawatts of direct current (MW/DC).
On an annual basis, total revenue rose 10.28% across the portfolio, with approximately 69% of revenue concentrated in the Fund’s solar assets. NOI registered at $17.34 million, supported by a 28.74% NOI margin. So far this year, earnings before interest, taxes, depreciation and amortization (EBITDA) for the biogas portfolio has exceeded budget by 88% as continued federal government support of the Clean Fuels Regulation credit market has had a positive impact on credit prices.
There was also another unit value increase to report. Following quarter-end on October 1, 2025, the Fund’s Board of Trustees approved a unit value increase of $0.25, from $18.50 to $18.75.
With Canada’s solar and energy storage capacity is projected to grow by as much as 800–1,200% by 2035, Skyline Clean Energy Fund is positioned to benefit from the rapid expansion of renewable power uptake over the coming decade.