Granite Real Estate Investment Trust completed the sale of three U.S. income‑producing properties totaling 1.7 million square feet for $189.5 million (US$137.5 million) on December 19, 2025, and announced the acquisition of five U.S. logistics assets and a UK development site for a total of $292 million (C$292 million). The U.S. acquisitions add roughly 1.2 million square feet at a purchase price of $256.1 million (US$185.7 million) and were acquired at a weighted‑average in‑going yield of 4.7%, with management projecting a stabilized yield of about 6.0% within two years. The UK transaction involves a 15‑acre parcel that currently hosts an income‑producing property with a two‑year lease term and is slated for a future 0.3 million square‑foot e‑commerce and logistics warehouse.
Granite’s liquidity remains robust, with approximately $0.9 billion in cash and undrawn credit after the deals. The company’s portfolio now totals about 60.9 million square feet across 140 investment properties, a net increase in square footage that reflects a strategic shift toward Tier 1 logistics hubs. The disposition yielded a weighted average of 6.1%, higher than the acquisition yield, underscoring the company’s focus on yield enhancement through stabilization and development.
CEO Kevan Gorrie said the transactions demonstrate a successful execution of Granite’s capital‑rotation strategy, re‑entering the U.K. market and reinforcing its focus on high‑growth logistics assets. Gorrie added that the company’s strong cash position and disciplined capital allocation will support continued portfolio quality improvements and future distribution growth.
The company’s Q3 2025 results—FFO per unit of $1.48 and AFFO per unit of $1.26—provide a solid operating foundation. New leases for approximately 769,000 square feet were signed in Q4 2025, and occupancy remained high at 97.1%. These metrics suggest that the recent transactions are part of a broader strategy to maintain high asset quality while expanding into high‑demand markets.
Analysts responded positively to the announcement, with several firms raising their price targets and upgrading their outlooks. The market reaction reflected confidence in Granite’s execution of its capital‑rotation plan and its re‑entry into the U.K. logistics market, which is expected to drive long‑term yield growth.
Granite also announced its intention to voluntarily delist from the NYSE and deregister from SEC reporting, a move that will reduce regulatory costs and simplify its reporting structure. The delisting, effective December 17, 2025, aligns with the company’s focus on operational efficiency and capital allocation.
The combination of a strong liquidity position, a growing portfolio of high‑quality logistics assets, and a clear capital‑rotation strategy positions Granite to capitalize on continued demand for e‑commerce and industrial real estate. The company’s disciplined approach to yield management and its focus on Tier 1 hubs suggest a resilient business model amid evolving market conditions.
The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.