Granite Real Estate Investment Trust Q2 2026 Earnings Recap

Shares of Granite REIT declined by 0.7% after quarter two results as the market weighed nonrecurring charges and a cautious outlook despite healthy same-property NOI growth and a narrowed guidance range.

Key Takeaways

• Same-property NOI increased 8.3% on a constant currency basis, supported by leasing spreads of 7% and higher occupancy by 220 basis points year-over-year.
• FFO per unit was $1.56, down $0.01 sequentially but up 12.2% year-over-year; excluding nonrecurring items, normalized FFO per unit would have improved modestly quarter-over-quarter.
• AFFO per unit declined $0.15 sequentially to $1.26, impacted by elevated maintenance capital expenditures of $14.7 million, up $7 million from Q1.
• Nonrecurring negative impacts totaling $1.3 million included a $2.6 million provision related to a tax audit and a one-time lease termination fee, reducing FFO and AFFO by approximately $0.02 per unit.
• Guidance was narrowed with expected 2026 FFO per unit growth of 7–8% (to $6.30–$6.40) and AFFO growth of 4–6%, but investors remain cautious given increased G&A and capital expenditure pressures.