From the Desk of Wayne Byrd, Chief Financial Officer, Skyline
Following an eventful start to 2025, I’m pleased to share that the first quarter of 2025 delivered another period of solid, stable performance across all of Skyline’s private alternative investment products.
Despite ongoing volatility in public markets, each of our funds demonstrated resilience and consistency, underpinned by disciplined asset management and long-term investment strategies. With our quarterly financials finalized, I’d like to walk you through the key results and drivers behind our performance.
All comparisons are year-over-year, unless otherwise noted.
Skyline Apartment REIT
Beginning with Skyline Apartment REIT—our longest-standing and largest investment product by portfolio value – we saw the REIT’s fair market value grow to $5.11 billion, representing a 1.14% increase year-over-year. This growth was largely driven by strong rental growth and disciplined portfolio management. The REIT ended the quarter with over 21,000 suites in 52 communities across seven provinces, showing its strong presence across Canada.
The REIT also delivered solid portfolio-wide revenue growth, with rental income up 2.2% to a record $94.15 million. This growth was driven by a 7.51% rise in average in-place rent and healthy occupancy rate of almost 94%. Elevated market prices on hydro over the winter months contributed to $2.5 million in extra utility costs, equivalent to a 3.2 cent of fund from operation (FFO) per unit. We anticipate recovering approximately half of this utility variance over the remainder of the year as cost fluctuations stabilize.
While we continue to keep a close eye on expenses, rental demand remains strong, and portfolio occupancy is healthy. For investors, the Apartment REIT has offered stable, essential housing supported by long-term income potential and disciplined management, even amid short-term margin pressure.
Skyline Industrial REIT
Skyline Industrial REIT continued to benefit from strong fundamentals in Canada’s industrial real estate sector. The portfolio’s fair value rose to $1.79 billion in the quarter, with leasing activity and tenant retention remaining robust. Across Canada, our industrial portfolio now covers over 10 million square feet across 51 properties, with several more expected to become leased and income-generating through 2026.
Total Income came in at $35.44 million with base rent increasing 14.78%, reflecting strength in core rental growth. Average annual in-place rent reached a new record of $9.48 per square foot, while net operating income (NOI) held steady at $24.04 million. FFO came in at $11.49 million, essentially in line with the prior year.
With a portfolio-wide availability rate well below the national average, we continue to see strong tenant retention and sustained rental growth. For investors, the REIT continues to deliver dependable income, steady performance, and solid fundamentals that signal promise for future unit value growth.
Skyline Retail REIT
Turning to our essentials-based retail REIT, delivering a strong start to the year, driven by consistent tenant demand and prudent capital allocation. Skyline Retail REIT’s portfolio fair value ended the quarter at $1.61 billion, with the committed occupancy remaining strong at 98.7%. At quarter’s end, the REIT’s portfolio now sits at 108 properties across 65 communities in four Canadian provinces.
On the revenue side, total income climbed 2.81% to a record quarterly high of $38.74 million. The increase was also reflected in NOI, which rose 2.21% to $23.10 million. FFO—a key metric representing the cash generated by our REIT’s core real estate operations—increased 7.84% to $11.83 million.
With limited supply and continued high demand across the retail real estate industry—and a portfolio that’s nearly fully leased—we’re seeing strong and steady rental growth. With nearly 80% of Skyline Retail REIT’s portfolio focused on essentials-based retail – think grocery, pharmacy, and medical – we believe the REIT is well positioned to continue delivering resilient, long-term performance for its investors.
Skyline Clean Energy Fund
Finally, Skyline Clean Energy Fund began the quarter with the Board of Trustees approving a $0.45 increase in unit value, followed by a $0.34 increase on the first day of the second quarter, bringing the current total unit value to $17.99. Together, these changes resulted in a trailing 12-month return of 9.10% and above the Fund’s targeted return range of 8-12%. Total assets under management, consisting of a roughly 2:1 solar/biogas mix, grew to $383.1 million on a quarterly basis.
Another defining feature of Skyline Clean Energy Fund is its highly reliable and steady income stream. For the quarter, the combined revenue from its biogas and solar assets totalled $56.83 million, an increase of 52.66%. The increase is largely driven by the successful integration of a major solar acquisition completed at the end of 2023.
For our investors, Skyline Clean Energy Fund provides diversified access to the renewable energy sector, offering reliable long-term income and exposure to a fast-growing, future-focused industry.
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Across all our funds, we continue to prioritize income stability, quality assets, and long-term risk-adjusted growth. This includes actively managing our portfolios, pursuing strategic acquisitions, and optimizing performance through disciplined capital allocation. While market conditions may shift, we remain confident in our strategy and the overall resilience of our collective investment portfolio. Our ongoing goal, as has been the case since our inception, is to deliver lasting value to you—our investors.
Thank you for your continued trust in Skyline. We look forward to keeping you informed and invested in what matters most.
Wayne Byrd, CPA, CMA
Chief Financial Officer, Skyline
Watch the full Q1 CFO Address below
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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 March 31, 2025
For media inquiries, please contact:
Cindy BeverlyVice President, Marketing & Communications
Skyline
5 Douglas Street, Suite 301
Guelph, ON N1H 2S8
cbeverly@skylinegrp.ca