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Skyline Funds Post Solid Financial Performance in Q2 2025

Key takeaways:

  • Apartment REIT’s portfolio posts strong leasing growth well above the national average.
  • Industrial REIT registers robust average in-place rent metrics.
  • Retail REIT’s portfolio remains almost fully leased, with committed occupancy reaching 98.4%.
  • Clean Energy Fund records significant jump in portfolio-wide revenue and net operating income.

Amid a complex economic climate, Skyline’s portfolio of Funds continued to deliver consistent results. Across our Apartment, Industrial, Retail, and Clean Energy platforms, disciplined management and strategic asset positioning remain the backbone to steady income generation that has defined our Funds since inception. With preliminary second-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: Strong rental growth in a challenging market

In a period of multi-month declining average rental asks in Canada since the first half of 2024, Skyline Apartment REIT has countered this trend, achieving growth rates significantly above the market. Notably, average in-place rent grew 7.7%, outperforming the national trend, where residential rental prices fell 3.3% after peaking in May 2024. In turn, strong rental growth supported profitability, with the REIT posting a 3.03% increase in Net Operating Income (NOI) to $54.1 million, alongside a 5.86% rise in cash flow from operations, despite a reduction of 904 units.

On the leasing side, occupancy remained solid at 95%, and net operating margin hit a year-high, thanks in part to tighter expense control as evidenced by a 0.88% decline in net operating expenses during this period. Funds From Operation (FFO), a key measure of the REIT’s profitability, climbed 5.86% to $23.46 million.

Amid challenging macro conditions, Skyline Apartment REIT continued to generate stable cash flow and deliver strong performance for investors, reinforcing our long-term confidence in the portfolio’s resilience.

Skyline Industrial REIT: Sustaining High Occupancy and Record Rents

In a sector dealing with significant global trade uncertainty, the REIT’s focus on Canada’s domestic economy helped strengthen leasing activity, which in turn supported profitability.

Base rental revenue grew 7.74% year-over-year to $23.54 million, driven by a record $9.53 per square foot average in-place rent. This, in turn, drove a 3.53% increase in FFO, reflecting improved free cash flow in the REIT. Occupancy sat at 98.1%, remaining strong by historical standards. Importantly, the REIT’s portfolio-wide availability rate stayed below the national average, supporting continued tenant retention and rental growth despite tariff-related trade headwinds.

These results highlight the Industrial portfolio’s underlying strength and its ability to sustain high occupancy, consistent income, and solid cash flow generation.

Skyline Retail REIT: Essential Retail Resilience

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 65 properties in four provinces.

Compared to the same quarter last year, total income increased 0.70% to $37.67 million, driven by a 2.78% gain in average annual in-place rent. FFO held steady at $11.12 million, while committed occupancy remained robust at 98.4% as constrained market supply of available space for lease continues to support consistent rental growth and leasing spreads for the REIT.

Given the shortage of available retail space, demand for well-located properties continues to support rental growth in secondary and tertiary markets. With an impressive roster of leading Canadian essential retailers, the tenant base provides a foundation for stable long-term income going forward.

Skyline Clean Energy Fund: Portfolio Growth and Value Uplift

Skyline Clean Energy Fund’s renewable energy portfolio finished Q2 2025 with approximately $382 million in assets under management. Comprised of 80 solar projects and two biogas facilities, the portfolio assets have a combined total generation capacity of 94,716 kW/DC across the portfolio.

Measured annually, total revenue rose 28.92% across the portfolio, with approximately 69% of revenue concentrated in the Fund’s solar assets. NOI registered at $16.69 million, which was a 24.31% increase from a year ago. So far this year, NOI for the biogas portfolio has exceeded budget by 23% as continued federal government support of the Clean Fuels Regulation credit market has had a positive impact on credit prices.

On July 2 and following the close of the quarter, the Fund’s Board of Trustees approved a $0.51 unit value increase from $17.99 to $18.50.

With considerable policy and clean energy procurement tailwinds continuing for the foreseeable future, Skyline Clean Energy Fund remains well-positioned to continue its growth trajectory in the coming quarters.

Click here to watch the full video address highlights

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About Skyline

Skyline is a capital management company that acquires, develops, and manages real estate properties and renewable infrastructure assets, and offers them as private alternative investment products.

Skyline currently manages more than $9 billion* in assets across its real estate and renewable infrastructure platforms.

With approximately 1,000 employees across Canada, Skyline works to provide safe, clean, and comfortable places for tenants to call home, great places to do business, sustainable solutions for a greener future, and an engaging experience for its investors.

For more information about Skyline, please visit SkylineGroupOfCompanies.ca.

*As at June 30, 2025

For media inquiries, please contact:

Cindy Beverly
Vice President, Marketing & Communications
Skyline
5 Douglas Street, Suite 301
Guelph, ON N1H 2S8
cbeverly@skylinegrp.ca

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