Skyline Investment Products Achieve Strong Q4 2025 Results

Skyline’s private alternative investment products continued to deliver strong results in Q4 2025. Through prudent asset management and strategic investment decisions across our Apartment, Industrial, Retail, and Clean Energy portfolios, we have continued to deliver steady income and unit values for our investors.

Unless otherwise indicated, all metrics are presented on a quarterly, year-over-year basis.

Skyline Apartment REIT: NOI increased 7.47%, driven by expanding operating margins

Skyline Apartment REIT, the largest fund within our platform by portfolio value, delivered another solid quarter of performance. The REIT’s fair market value remained steady at $5.25 billion, supported by a diversified portfolio of 20,491 suites across 49 communities in six provinces. Existing rental fundamentals remained a key strength, with average in-place rent increasing 5.25%, outpacing the Canadian multi-residential annual growth rate of 3.2% in Q4 2025.

In turn, rising in-place rents combined with expanding operating margins help drive overall REIT profitability. NOI rose 7.47% year over year, supported by improved cost control measures, with operating expenses down 9.29%. This reduction helped lift NOI margin over four full percentage points to 60.42%. Funds from Operations (FFO), a primary indicator of the REIT’s operating results, increased 14.66% and totalled $25.56 million for the quarter.

Overall, we are encouraged by these results, given the slowdown in Canadian population growth from the previous year. Our focus on purpose-built multi-residential properties in secondary and tertiary markets has proven insightful by avoiding the most cyclical property sectors, reducing portfolio volatility. With economic fundamentals expected to trend higher in 2026, Skyline Apartment REIT remains well-positioned to capitalize on a more favourable operating environment.

Skyline Industrial REIT: Occupancy remains well above industry average

Turning to Skyline Industrial REIT, whose portfolio increased to approximately $1.78 billion, comprising over 10 million square feet of gross leasable area across 51 properties in five provinces. Base rental revenue grew 2.12% year over year to $23.54 million, driven by a record-high average in-place rent of $9.64 per square foot. Total income rose 0.59% to $35.35 million, with more modest growth reflecting lower non-core rental income.

Portfolio occupancy remained strong at 97.7%, reflecting continued and sustained tenant demand for our properties. The REIT’s occupancy rate remained well above the industrial national average of 95.7%, indicating that core fundamentals remain steady despite ongoing tariff pressures and macroeconomic uncertainty. As per our 2026 Outlook, we expect to see increased clarity on trade and tariff risks in the coming months, allowing businesses with international supply chain exposure to feel more confident in their capital expenditure decisions in 2026.

In a sector facing global supply chain uncertainty, Skyline Industrial REIT’s focus on domestic logistics and distribution helped sustain healthy leasing and tenant retention metrics, supporting consistent income generation for its investors.

Skyline Retail REIT: Milestone Atlantic Canada acquisition supports rental revenue growth

With approximately $1.66 billion in fair market value, Skyline Retail REIT portfolio covers approximately 5.21 million square feet of gross leasable area across 109 properties in five provinces. During the quarter, the REIT reached a significant milestone with the acquisition of its first Atlantic Canada open-air retail property, totalling nearly 74,000 square feet of gross leasable area. The asset will be occupied predominantly by nationally recognized retailers and essential-retail tenants, such as No Frills, Shoppers Drug Mart and Starbucks.

Compared to the same quarter last year, in–place base rental revenue increased by over 2% to $25.45 million, supported by a 1.72% rise in average annual in-place rent in 2025, which reached a record of $20.12 per square foot. Growth was fuelled by a mix of higher rents and the Newfoundland acquisition, which closed in December and became immediately accretive to earnings. Overall, the property represents approximately 1.4% of the total portfolio’s gross leasable area.

As well, occupancy remained strong at 97.2%, as demand for high-quality space continues to exceed available supply. At these levels, the retail portfolio is effectively fully leased, reflecting sustained demand from mostly essential service tenants.

With quality retail space in Canada remaining limited, demand for well-located properties continues to outstrip supply over the long term. This is particularly true in secondary and tertiary markets where local building starts face unique challenges. Focusing on tenant variety with full product and service offerings is reinforcing competitive positioning and local market dominance.

Skyline Clean Energy Fund: NOI advances 69.1% on record biogas revenue

At the end of the fourth quarter, Skyline Clean Energy Fund’s renewable energy portfolio exited with approximately $416 million in assets under management, comprised of 84 solar projects and two biogas facilities with a total generation capacity across the portfolio of 94.72 Megawatts of Direct Current.

On an annual basis, total portfolio revenue increased 27.49%, primarily driven by the collection of Clean Fuel Regulation credits generated between 2022 and 2025. This revenue increase resulted in a sharp 69.1% increase in NOI to $30.92 million from $18.28 million, driven by a more than 10% improvement in net operating margin. While the credit collection was a one-time accounting item, the Fund expects a higher ongoing revenue baseline going forward.

And subsequent to the quarter end on December 31, the Fund’s Board of Trustees approved a $0.53 unit value increase from $18.75 to $19.28 per unit, resulting in a one-year annualized return of 9.24%.

With the Canadian government reaffirming its support for renewable energy in Budget 2025 and the Fund’s repowering initiatives gaining traction, Skyline Clean Energy Fund is well positioned to benefit from the accelerating adoption of renewable power in 2026 and beyond.

Watch Skyline CFO, Wayne Byrd’s Q4 video address for a complete overview of the quarter’s key results and insights.