CT REIT Confirms Dividend, Highlighting Stability in Shifting Market

TORONTO, ON – February 17, 2026 – CT Real Estate Investment Trust (TSX: CRT.UN) today affirmed its commitment to unitholder returns, declaring its monthly cash distribution for February 2026. The announcement of a $0.07903 per unit payout, payable on March 16, comes on the heels of strong full-year financial results, reinforcing the REIT's reputation as a bastion of stability for income-seeking investors. However, its unique and deeply integrated relationship with its primary tenant, Canadian Tire Corporation, continues to be a central point of analysis for its long-term strategy.

This latest distribution, which annualizes to $0.94836 per unit, maintains the increased rate established in mid-2025, underscoring a period of sustained operational strength and strategic growth for the real estate trust.

A Track Record of Reliable Returns

For investors navigating a landscape of economic uncertainty, consistency is paramount. CT REIT has built its reputation on this principle. The current distribution level reflects a 2.5% increase that took effect in July 2025, marking the twelfth time the REIT has boosted its payout since its initial public offering in 2013. This history represents a compound annual growth rate of 3.3% in distributions over more than a decade, a testament to its durable business model.

The REIT's current dividend yield stands at approximately 5.69%, a figure that places it in the upper echelon of dividend-paying stocks on the Canadian market and makes it an attractive option for those prioritizing passive income. This yield is notably higher than the market's bottom quartile and competitive even among its real estate peers.

Underpinning these returns is a healthy financial structure. The REIT's dividend payout ratio, recently reported at a sustainable 58.81%, indicates that distributions are well-covered by earnings, leaving ample capital for reinvestment and operational management. This prudent approach provides a buffer against market volatility and reassures investors of the dividend's security. Further enhancing its appeal, CT REIT offers a Distribution Reinvestment Plan (DRIP), allowing unitholders to automatically reinvest their cash distributions into additional units. Participants in the plan receive a bonus equivalent to 3.0% of the reinvested amount, providing a powerful compounding effect for long-term holders.

Strong Fundamentals and Strategic Growth

The ability to consistently reward unitholders is directly tied to the REIT's robust operational performance. In its full-year 2025 financial results, also released today, CT REIT reported a 2.9% growth in Adjusted Funds From Operations (AFFO) per unit, a key industry metric for measuring performance and distribution capacity.

This financial growth is fueled by a meticulously managed and expanding property portfolio. Throughout 2025, the trust invested approximately $235 million in completed projects and ongoing developments, adding nearly 893,000 square feet of gross leasable area (GLA). The fourth quarter was particularly active, contributing over 400,000 square feet of new, high-quality retail space to the portfolio.

This expansion has not come at the cost of quality or occupancy. As of December 31, 2025, CT REIT's portfolio boasted an impressive committed occupancy rate of 99.5% across its more than 375 properties. This near-full occupancy is a clear indicator of the high demand for its well-located, primarily single-tenant retail locations. The strength of its tenant relationships was further highlighted by the renewal of 30 Canadian Tire store leases during 2025, securing long-term cash flow from its primary partner.

In the earnings release, Kevin Salsberg, President and CEO of CT REIT, noted that these results underscore the REIT's ability to deliver strong returns and demonstrate its reliability, durability, and growth potential amidst macroeconomic challenges.

The Canadian Tire Anchor: Stability and Concentration

At the core of CT REIT's business model is its symbiotic relationship with Canadian Tire Corporation (CTC). As of the end of 2025, CTC occupied 92.1% of the REIT's total GLA and accounted for 90.7% of its annualized base minimum rent. This makes CT REIT an outlier in the sector, where tenant diversification is often a key strategic goal.

This high concentration is a double-edged sword. On one hand, it provides unparalleled stability. Having a well-established, national retailer as an anchor tenant ensures a predictable and secure revenue stream, insulating the REIT from the vacancy risks that plague multi-tenant retail centres. The long-term, net-lease structure of these agreements places the onus of property operating costs on the tenant, further simplifying operations and protecting cash flows for CT REIT. The renewal of dozens of leases in the past year reinforces the strength and mutual benefit of this partnership.

On the other hand, such significant reliance on a single tenant introduces a substantial concentration risk. The fortunes of CT REIT are inextricably linked to the performance and strategic direction of Canadian Tire. Any significant downturn in CTC's retail business, a shift in its corporate real estate strategy, or unforeseen market disruption could have an outsized impact on the REIT's revenue and, consequently, its ability to maintain and grow distributions. While CTC remains a dominant force in Canadian retail, this dependence remains a key consideration for analysts evaluating CT REIT's long-term risk profile.

A Barometer for Canadian Retail Real Estate

Beyond its own performance, CT REIT's success offers valuable insights into the broader Canadian retail real estate market. In an era where headlines often focus on the decline of brick-and-mortar retail due to the rise of e-commerce, CT REIT's thriving portfolio tells a different story. It suggests a bifurcation in the market, where certain segments are not just surviving but flourishing.

The trust's focus on single-tenant properties occupied by essential and high-traffic retailers like Canadian Tire appears to be a winning formula. These are not enclosed malls susceptible to declining foot traffic; they are destination locations that are integral to community life and often serve as hubs for both in-person shopping and e-commerce fulfillment, such as click-and-collect services.

The REIT's continued investment in new developments indicates a strong conviction in the future of this real estate class. Its ability to maintain a 99.5% occupancy rate while expanding its footprint demonstrates that demand for modern, well-located physical retail space remains robust. This performance suggests that the narrative of a retail apocalypse is overly simplistic. Instead, the market is evolving, favoring resilient, adaptable formats and strong tenant covenants, a niche where CT REIT has firmly established itself as a leader.