Ravelin Properties REIT Reports Third Quarter 2025 Results

Toronto, Ontario--(Newsfile Corp. - November 12, 2025) - Ravelin Properties REIT (TSX: RPR.UN) ("Ravelin" or the "REIT"), an internally managed global owner and operator of well-located commercial real estate, announces financial results for the three and nine months ended September 30, 2025.

The REIT's unaudited interim financial statements and Management's Discussion and Analysis for the nine months ended September 30, 2025 are available under the REIT's issuer profile on SEDAR+ and can also be found on the REIT's website at ravelinreit.com.

"In Q3/25 Ravelin achieved its highest quarterly level of gross rental revenue and net operating income since Q3/24 despite the impact of prior asset sales. I am pleased to report Ravelin experienced a return to stability in same property net operating income for the first time since Q2/24.

"Recent growth in our leasing pipeline gives me further confidence that the business has reached its inflection point," said Shant Poladian, Chief Executive Officer of the REIT.

"With enhanced levels of property management and multiple physical improvement projects actively underway, our tenants, prospects, and leasing agents have taken notice of Ravelin's approach to operating the business. I am confident that our tenant-first approach to customer service is gaining traction and look forward to further strengthening our execution capabilities in the months ahead."

Highlights

• 235,163 square feet of new leases and renewals were signed in the third quarter of 2025 (inclusive of leases which will commence in future quarters). These deals were completed at a weighted average net rental rate per square foot of $18.29, consisting of 25 lease deals at a 6.5 year weighted average lease term. Excluding cases of leasing previously vacant space, these new leases and renewals were completed at 20.5% above the prior rental rate.

• The REIT's current leasing pipeline exceeds 895,000 square feet of renewals and new leases across its global portfolio. In addition, the REIT has more than 100,000 square feet of rent reviews underway in Ireland, whereby the REIT has an opportunity to increase in-place rents to market rent levels during the lease terms.

• Same-property NOI for the quarter ended September 30, 2025 before lease termination fees was $21.1 million compared to $21.3 million for the quarter ended September 30, 2024.

• Occupancy as at September 30, 2025 was 74.5%, a decrease from 75.8% as at June 30, 2025. The sequential decline is largely attributable to a previously known vacate at 280 Broadway in Winnipeg, MB for 75,000 sf.

• Management is reviewing the potential to redevelop 280 Broadway into a higher and better use, which may include a partial or full conversion to a self-storage facility. There are several other high vacancy properties which management is considering other alternatives to traditional office use.

• The REIT's liquidity as at September 30, 2025 consisted of unrestricted cash of $12.2 million compared to $13.6 million at December 31, 2024. This excludes property level restricted cash of $10.8 million compared to $10.7 million at December 31, 2024.

• On a trailing twelve month basis, the REIT generated $76.4 million of Adjusted EBITDA. This resulted in a net debt to Adjusted EBITDA ratio of 14.5x, inclusive of convertible debentures, or 12.4x excluding convertible debentures.

• Adjusted EBITDA for the third quarter of 2025 on an annualized basis (Q3/25 x 4) was $83.1 million. This resulted in a net debt to Adjusted EBITDA ratio of 13.3x, inclusive of convertible debentures, or 11.4x excluding convertible debentures.

• The full impact of the REIT's September 2, 2025 acquisition of the 25% co-ownership interest in two of its GTA properties will result in further reduction to the net debt to Adjusted EBITDA ratio in the quarters ahead.

• The REIT is in active discussions with its senior lenders, including G2S2, to extend the two forbearance agreements which expired on September 30, 2025. As of the date hereof, no agreement has been reached with the senior lenders with respect to any extension of the forbearance agreements, and there can be no assurance that the REIT will be successful in negotiating an extension of the forbearance period.

Summary of Q3 2025 Results

¹EBITDA is calculated using trailing twelve month actuals, as defined below.

Investor Information

The REIT's financial results and supplemental materials have been filed under the REIT's issuer profile on SEDAR+ and are also available on the REIT's website at ravelinreit.com under the Investors page. For any questions related to the REIT's financial results or ongoing business initiatives, please contact the REIT's investor relations team at ir@ravelinreit.com or (647) 792-6060.

About Ravelin Properties REIT (TSX: RPR.UN)

The REIT owns and operates a portfolio of well-located commercial real estate assets in North America and Europe. The majority of the REIT's portfolio is comprised of government and high-quality credit tenants. Visit ravelinreit.com to learn more.

Forward-Looking Statements

Certain information herein constitutes "forward-looking information" as defined under Canadian securities laws which reflect management's expectations regarding objectives, plans, goals, strategies, future growth, results of operations, performance, business prospects and opportunities of the REIT. The words "plans", "expects", "does not expect", "scheduled", "estimates", "intends", "anticipates", "does not anticipate", "projects", "believes", or variations of such words and phrases or statements to the effect that certain actions, events or results "may", "will", "could", "would", "might", "occur", "be achieved", or "continue" and similar expressions identify forward-looking statements. Forward-looking statements contained herein include, but are not limited to, statements relating to: the REIT's current leasing pipeline and anticipated future leasing activity; Such forward-looking statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations.

Forward-looking statements are necessarily based on a number of estimates and assumptions that, while considered reasonable by management as of the date hereof, are inherently subject to significant business, economic and competitive uncertainties and contingencies. When relying on forward-looking statements to make decisions, the REIT cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not the times at or by which such performance or results will be achieved. A number of factors could cause actual results to differ, possibly materially, from the results discussed in the forward-looking statements. Additional information about risks and uncertainties is contained in the REIT's Annual Information Form for the year ended December 31, 2024, available under the REIT's issuer profile on SEDAR+ and on the REIT's website at ravelinreit.com.

Non-IFRS Measures

We disclose a number of financial measures in this news release that are not measures used under IFRS, including NOI, FFO, Core-FFO, AFFO, NAV, adjusted EBITDA, net debt to adjusted EBITDA ratio and interest coverage ratio, in addition to certain measures on a fully-diluted per unit basis.

• NOI is defined as rental revenue, excluding non-cash straight-line rent and leasing costs amortized to revenue, less property operating costs prior to International Financial Reporting Interpretations Committee 21, Levies ("IFRIC 21") adjustments. Rental revenue for purposes of measuring NOI excludes revenue recorded as a result of determining rent on a straight-line basis and the amortization of leasing costs in revenue for IFRS. Same-property NOI includes those properties owned by the REIT for each of the current period and the relevant comparative period.

• FFO is defined as net income adjusted for certain items including transaction costs, change in fair value of properties, change in fair value of financial instruments, change in fair value of Class B LP units, deferred income taxes, tax on gains on disposals of investment properties, distributions to Class B unitholders, depreciation and IFRIC 21 property tax adjustments.

• Core-FFO is defined as FFO adjusted for the REIT's share of lease payments received for a data centre in Winnipeg, Manitoba (the "Data Centre"), which for IFRS purposes is accounted for as a finance lease.

• AFFO is defined as FFO adjusted for amortization of deferred transaction costs; de-recognition and amortization of mark-to-market ("MTM") adjustments on mortgages refinanced or discharged; adjustments for interest rate subsidies received; recognition of the REIT's share of lease payments received for the Data Centre, which for IFRS purposes, is accounted for as a finance lease; amortization of straight-line rent; and normalized direct leasing and capital costs.

• FFO per unit, Core-FFO per unit and AFFO per unit are defined as FFO, Core-FFO and AFFO divided by the weighted average diluted number of units outstanding, respectively.

• NAV is defined as the aggregate of the carrying value of the REIT's equity, Class B LP units, deferred units, and deferred tax liability.

• Adjusted EBITDA is defined as earnings before interest, income taxes, depreciation, fair value gains (losses) from both financial instruments and investment properties, while also excluding non-recurring items such as transaction costs from dispositions, acquisitions or other events.

• Net debt to adjusted EBITDA is defined as the aggregate amount of debt outstanding, less cash on hand, divided by the trailing twelve-month adjusted EBITDA.

• Interest coverage ratio is defined as adjusted EBITDA divided by the REIT's interest expense for the period.

We use these measures for a variety of reasons, including measuring performance, managing the business, capital allocation and the assessment of risk. Descriptions of why these non-IFRS measures are useful to investors and how management uses each measure are included in the Management's Discussion and Analysis for the nine months ended September 30, 2025, which readers should read when evaluating the measures included herein. We believe that providing these performance measures on a supplemental basis to our IFRS results is helpful to investors in assessing the overall performance of our businesses in a manner similar to management. These financial measures should not be considered as a substitute for similar financial measures calculated in accordance with IFRS. We caution readers that these non-IFRS financial measures may differ from the calculations disclosed by other businesses, and as a result, may not be comparable to similar measures presented by others.

Calculation and Reconciliation of Non-IFRS Measures

The tables below summarize a calculation of non-IFRS measures based on IFRS financial information.

The calculation of NOI is as follows:

¹In accordance with IFRIC 21, the REIT recognizes property tax liability and expense on its existing U.S. properties as at January 1 of each year, rather than progressively, i.e., ratably throughout the year. The recognition of property taxes as a result of IFRIC 21 has no impact on NOI, FFO or AFFO.
²Refer to "Non-IFRS measures" section above.

The reconciliation of cash flow from operating activities to FFO, Core-FFO and AFFO is as follows:

¹Refer to "Non-IFRS measures" section above.

The calculation of trailing twelve month adjusted EBITDA is as follows:

 
¹In accordance with IFRIC 21, the REIT recognizes property tax liability and expense on its existing U.S. properties as at January 1 of each year, rather than progressively, i.e., ratably throughout the year. The recognition of property taxes as a result of IFRIC 21 has no impact on NOI, FFO, Core-FFO or AFFO.
²Adjusted EBITDA is based on actuals for the twelve months preceding the balance sheet date.
³Refer to "Non-IFRS measures" section above.

The calculation of net debt is as follows:

The calculation of net debt to adjusted EBITDA is as follows:

¹Adjusted EBITDA is based on actuals for the twelve months preceding the balance sheet date.
²Refer to "Non-IFRS measures" section above.

The interest coverage ratio is calculated as follows:

¹Adjusted EBITDA and interest expense are based on actuals for the twelve months preceding the balance sheet date.
²Refer to "Non-IFRS measures" section above.

The following is the calculation of IFRS NAV on a total and per unit basis at September 30, 2025 and December 31, 2024:

¹Represents the fully diluted number of units outstanding and includes outstanding REIT units, DUP units and Class B LP units.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/274296