Granite REIT (TSX: GRT; OTCQX: GRTUF) presented its growth strategy at the Financial Services Virtual Investor Conference on Thursday, September 24, 2026, underscoring a commitment to disciplined expansion across its roughly CAD 9.6 billion portfolio of approximately 62 million square feet of industrial and logistics assets.
President and CEO Kevan Gorrie described the company as "one of Canada's true blue-chip REITs," with a geographic mix split between the United States at 50%—concentrated in the Southeast and Midwest—Europe including the U.K. at 30%, and Canada at 20% focused around the Greater Toronto Area.
Occupancy stood above 98% overall, with Europe nearing 100%. Gorrie called that level "a fully baked number" and said the company aims to stay in the 96% to 98% range rather than chase higher figures.
On profitability, Granite REIT reported compound annual growth in funds from operations per unit of just over 10% over the past five years. Same-property net operating income grew 8.3% on a constant-currency basis, with Canada contributing in double digits and the U.S. more than 9%.
The REIT raised its annual distribution to CAD 3.55 from CAD 3.00, marking an 18% increase and extending a streak of 15 consecutive annual raises since its 2011 inception. It spun out of Magna International's portfolio in 2011 and converted to a REIT structure in 2013.
AFFO payout ratio declined from 80% in 2021 to roughly 65%–66% in 2025, while annual cash retention exceeded CAD 100 million. "All I would leave you with is the payout ratio in maintaining conservative capital ratios is a priority for our organization," Gorrie said.
Total debt to EBITDA was in the mid-sixes as of the second quarter and stood at 7.1 times on a DBRS basis at December 31, 2025—a measure that does not account for cash on hand. The company targets leverage below 7.0x debt to EBITDA and a leverage ratio at or below 35%. Credit rating remains BBB (high) from DBRS, with potential upgrade eligibility if criteria continue to be met.
Acquisition capacity was estimated at CAD 300 million to CAD 400 million before requiring asset sales or equity issuance. Granite completed approximately CAD 195 million in acquisitions by early Q4, following about CAD 200 million in the second quarter. The company targets asset yields of 6% or higher within three years, emphasizing the U.K. and select Southeast U.S. markets.
The development program generated almost CAD 200 million in total profit and nearly CAD 3 in profit per unit, with a weighted average yield on cost of just over 7% and an internal rate of return approaching 30%. Profit margins ran roughly 20% to 25%. Speculative development was suspended in the second half of 2023 due to market deterioration; the program now focuses on design-build opportunities. A 400,000-square-foot build-to-suit project in Houston is fully leased to a Fortune 50 company on a 12-year lease, projecting an unlevered yield of about 7.5%.
More than CAD 1 billion has been deployed toward eligible green projects verified by third-party providers, representing over 87% of green bond commitments.
Unit buybacks totaled about CAD 500 million from 2023 to 2025, funded through free cash flow rather than debt. Debt maturities are scheduled for 2026 and 2028.
On governance, Granite added Amber Choudhry, with background in debt and banking at CIBC and experience in Canadian public markets, and Jonathan Kelly, a U.K.-based former manager of a Blackstone data center fund in Europe and former Brookfield executive, to its board.
