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Vital Infrastructure Reports Third Quarter 2026 Results

Press Release
Wednesday at 5:46pm AST · November 11, 2026 24 min read

Toronto, Ontario–(Newsfile Corp. – November 11, 2026) – Vital Infrastructure Property Trust (TSX: VITL.UN) (“Vital Infrastructure” or the “REIT”) today announced its financial results for the three and nine months ended September 30, 2026. Unless otherwise noted, all amounts are in Canadian dollars.

“Our third quarter results reflect the resilience of our portfolio, supported by solid operating fundamentals and stable cash flows,” said Zach Vaughan, Chief Executive Officer of Vital Infrastructure. “Our recent refinancing initiatives have strengthened our balance sheet, extended our debt maturity profile, and enhanced our financial flexibility. As we continue to simplify our portfolio, our focus is increasingly shifting toward disciplined capital deployment in North America to drive sustainable earnings growth and long-term unitholder value.”

Q3 2026 Highlights(1)

  • Net income for Q3 2026 was $21.9 million, compared with $31.2 million in Q3 2025. The decrease primarily reflected a $34.0 million decline in net operating income following non-core asset sales and the deconsolidation of Vital Healthcare Property Trust (“Vital Trust”), partially offset by an $11.6 million reduction in finance costs due to lower debt levels and lower general and administrative expenses.
  • Adjusted funds from operations (“AFFO”)(2) was $0.10 per unit, compared with $0.11 per unit in both Q3 2025 and Q2 2026, with an AFFO payout ratio of 89% (Q3 2025 – 85%; Q2 2026 – 85%). The decrease from Q2 2026 primarily reflected the full-quarter impact of the European portfolio sale, partially offset by contributions from North American acquisitions. Compared with Q3 2025, AFFO(2) included distributions received from Vital Trust rather than a proportionate share of its results, resulting in a reduction in AFFO(2) of $1.6 million ($0.007 per unit), partly offset by favourable foreign exchange movements and lower finance costs.
  • Same-property net operating income (“SPNOI”)(2) increased 3.5% compared to Q3 2025, excluding the impact of the outsourcing of facilities operations in Canada, primarily driven by inflation-linked rent adjustments, rentalized capital expenditures and improved cost recoveries across all regions. Including these costs, SPNOI(2) increased 2.6% to $51.8 million.​‌
  • Debt to gross book value(2) was 43.6% on an IFRS basis and 49.9% on a proportionate basis(2) at September 30, 2026 (December 31, 2025 – 46.4% and 52.4%, respectively). Debt to Annualized Adjusted EBITDA(2) was 8.5x (December 31, 2025 – 8.6x), reflecting annualized quarterly net operating income (“NOI”) adjusted for the full-quarter impact of acquisitions and dispositions. The economic weighted average interest rate on a proportionate basis(2) increased to 5.33% (December 31, 2025 – 4.71%), primarily due to the repayment of lower-rate European mortgages following the European portfolio sale and the maturity of Australian interest rate swaps.
  • Portfolio fundamentals remained strong, with 97% occupancy and a weighted average lease expiry (“WALE”) of 12.7 years.
  • Net asset value (“NAV”) was $7.43 per unit at September 30, 2026 compared with $7.66 at June 30, 2026. The decrease of $0.23 per unit, or 3%, primarily reflected mark-to-market losses on the REIT’s investment in Vital Trust units, the impact of the revised Calvary lease terms on the valuations of the Australian hospital portfolio and management platform, and the reclassification from deferred to current of the tax liability recognized in connection with the 2025 Vital Trust internalization.
  • The REIT recorded fair value gains on investment properties of $7.1 million on an IFRS basis compared with $8.8 million in Q3 2025. On a proportionate basis(2), fair value gains were $0.1 million as IFRS gains were offset by fair value reductions on properties held through joint ventures, including the Australian hospital properties. The portfolio capitalization rate was 6.97% on a proportionate basis(2) at September 30, 2026 (December 31, 2025 – 6.90%).
  • General and administrative expenses, excluding unit-based compensation expense and employee termination benefits and related expenses, declined by approximately $2.7 million year-over-year to $8.9 million on a proportionate basis(2) (Q3 2025 – $11.6 million), reflecting the ongoing simplification of the REIT’s platform. Headcount declined approximately 42% to 134 from 230 a year earlier. The REIT continues to target an annualized G&A run-rate, on the same basis, of approximately $35 million by the end of 2026.

Australian Hospital Portfolio

  • During the quarter, the REIT announced that Calvary Health Care (“Calvary”) is expected to replace Healthscope Pty Ltd (“Healthscope”) as tenant at the REIT’s 12 Australian hospital properties held through its 30%-owned joint venture. The transition is targeted for completion by November 30, 2026, subject to satisfaction of standard regulatory approvals and other applicable conditions.
  • The proposed lease arrangement is expected to extend the portfolio’s weighted average lease term by approximately 5.5 years, increasing WALE to approximately 18 years, and includes enhanced rent indexation provisions.
  • Based on the REIT’s 30% ownership interest, lease incentives are expected to reduce annualized AFFO(2) by approximately $0.01 per unit during the incentive period.
  • The REIT recorded a reduction to NAV of approximately $26.6 million related to its interest in the Australian portfolio, reflecting the revised Calvary lease terms.

Acquisition and Divestiture Activity

  • During the quarter, the REIT completed the acquisition of the East New York Health Hub, an approximately 142,000 sq ft, seven-storey, purpose-built integrated community health centre in Brooklyn, New York, for US$91.1 million ($128.3 million). The property is 100% leased with approximately 11 years of remaining lease term.
  • The REIT also completed the acquisition of two medical outpatient facilities totalling approximately 51,000 sq ft in Burlington, Ontario and 43,000 sq ft in Edmonton, Alberta for aggregate consideration of $40.6 million.
  • Collectively, these acquisitions represented approximately $168.9 million of investment, substantially completing the redeployment of proceeds from the European portfolio sale.

Financing Activity

  • During the quarter, the REIT established a $500.0 million senior unsecured credit facility maturing in August 2031, replacing its previous $370.0 million secured credit facility. The facility is supported by approximately $2.1 billion of unencumbered assets on a proportionate basis(2) at September 30, 2026 (December 31, 2025 – $1.2 billion), enhancing the REIT’s financial flexibility and access to unsecured financing.
  • During the quarter, the REIT refinanced A$715.0 million of Australian joint venture term debt ($210.2 million at the REIT’s share), extending the maturity from December 2026 to December 2028 and reducing the debt’s weighted average interest rate by approximately five basis points.
  • The REIT ended the quarter with $357.4 million of available liquidity on a proportionate basis(2), comprising $296.8 million of undrawn capacity under the corporate credit facility and the term loan secured by Vital Trust units, and $60.6 million of cash.
  • Subsequent to quarter end, the REIT completed a private placement of $300.0 million aggregate principal amount of 4.865% Series C senior unsecured debentures maturing October 15, 2029. Net proceeds were used to repay outstanding indebtedness, including the redemption of all outstanding 6.25% Series H convertible debentures ($152.1 million aggregate principal amount) on October 26, 2026, and for general corporate purposes.

Normal Course Issuer Bid

  • The REIT announced today that the Toronto Stock Exchange (“TSX”) has approved its intention to implement a normal course issuer bid (“NCIB”). Under the NCIB the REIT may purchase, through the facilities of the TSX and any alternative trading system in Canada, up to $8,526,700 aggregate principal amount of its Series I convertible unsecured debentures (“Series I Debentures”) and 21,891,970 of its trust units (“Units”), each representing approximately 10% of the respective public float as of November 4, 2026. The REIT had, $85,267,000 aggregate principal amount of Series I Debentures outstanding, and 250,018,529 issued and outstanding Units as at November 4, 2026. The NCIB will run from November 16, 2026 to November 15, 2027, or earlier if completed or terminated. All securities acquired under the NCIB will be cancelled.
  • Daily purchases made by the REIT through the NCIB may not exceed $5,801 aggregate principal amount of Series I Debentures, being 25% of the average daily trading volume of $23,206 aggregate principal amount of Series I Debentures on the TSX for the six-month period ended October 30, 2026, or 218,606 Units, being 25% of the average daily trading volume of 874,426 Units on the TSX for the six-month period ended October 30, 2026.
  • The REIT also intends to adopt an automatic securities purchase plan, effective November 16, 2026, to permit repurchases during blackout periods, in accordance with any advance instructions that the REIT may elect to deliver.
  • Under its current NCIB, which expires on November 13, 2026, the REIT is authorized to acquire up to $15,515,000 aggregate principal amount of Series H Debentures, $8,625,000 aggregate principal amount of Series I Debentures, and 22,177,862 Units. As of November 4, 2026, the REIT purchased $3,171,000 aggregate principal amount of Series H Debentures at a weighted average price of $1,010.77 per $1,000 principal amount of Series H Debentures and $1,011,000 aggregate principal amount of Series I Debentures at a weighted average price of $1,038.14 per $1,000 principal amount of Series I Debenture on the open market.

¹ Results for 2026 reflect the deconsolidation of Vital Trust, a New Zealand Stock Exchange-listed entity in which the REIT holds an approximately 24% interest, and the transition to equity accounting, which impacts comparability with prior periods. Vital Trust’s operating results are excluded from leasing metrics and portfolio statistics.
2 Refer to Non-GAAP and Other Supplementary Measures section.

Selected Operating and Financial Information (1):

($ thousands except where otherwise indicated) (unaudited)     As at
September 30, 2026		     As at
December 31, 2025		  
Assets under management (i)    $  5,766,000    $  5,933,000  
Number of properties     107     133  
Gross leasable area (millions of sf)     11.4     13.0  
Period end occupancy     96.9  %    96.4  % 
Weighted Average Lease Expiry (Years)     12.7     12.3  
Debt to Gross Book Value (IFRS)(2)     43.6  %    46.4  % 
Debt to Gross Book Value (Proportionate)(2)     49.9  %    52.4  % 
Debt to Annualized Adjusted EBITDA     8.5x     8.6x  
Weighted average overall capitalization rate (Proportionate)(2)     6.97  %    6.90  % 
NAV per Unit    $  7.43    $  7.55  
Economic Weighted Average Interest Rate (Proportionate)(2)     5.33  %    4.71  % 

 

(i) Assets under management represents the aggregate fair value of investment properties, the quoted market price of the REIT’s investment in Vital Trust units, lease assets, real estate related financial instruments and assets held for sale, including third-party interests in these assets.

For the periods ended September 30
($ thousands) (unaudited)		     Three Months     Nine Months
    2026     2025     $ Change     2026     2025   $ Change
Net income    $  21,894    $  31,167    $  (9,273)   $   18,328    $  48,258  $  (29,930)
Funds from Operations (“FFO”), excluding                      
accelerated amortization of deferred                                        
financing costs(2)(i)      26,581      28,075      (1,494)        79,957      82,163      (2,206)  
Adjusted Funds from Operations (“AFFO”) (2)     25,389     26,328     (939)     77,506     76,081   1,425
FFO – diluted, excluding accelerated                              
amortization of deferred financing                                         
costs(2)(i)    $  0.11    $   0.11   $  —      $  0.32    $   0.33    $  (0.01)  
AFFO(2) per unit – diluted    $  0.10    $  0.11    $  (0.01)    $  0.31    $  0.30  $  0.01
Distributions per unit    $  0.09    $  0.09    $  —    $  0.27    $  0.27  $  —
AFFO(2) payout ratio     89   %   85   %   4  %     87  %    88  %   (1)  %

 

(i) Excludes non-recurring accelerated amortization of deferred financing costs on early debt repayments, which varies between periods:

  • 2026: $1.4 million and $1.9 million (three and nine months, respectively), recognized on early repayment of the secured revolving credit facility, which was replaced by the new unsecured facility, the REIT’s share of the refinancing of Australian joint venture term debt, and certain European mortgages using proceeds from the European portfolio sale.
  • 2025: nil and $3.4 million (three and nine months, respectively), recognized on the early repayment of debt using proceeds from the sale of Assura units and the issuance of senior unsecured debentures.

Non-GAAP and Other Supplementary Measures
This news release includes certain non-GAAP financial measures, non-GAAP ratios and other specified financial measures (as defined in National Instrument 52-112, Non-GAAP and Other Financial Measures Disclosure) in addition to measures prepared in accordance with IFRS. These measures do not have standardized meanings under IFRS and may not be comparable to similar measures presented by other issuers. They should not be considered as alternatives to measures determined in accordance with IFRS. Definitions and reconciliations to the most directly comparable IFRS measures are provided below.

Non-GAAP Measure Description and Purpose
Proportionate Basis
  • Proportionate basis is a non-GAAP presentation method used by the REIT to reflect its economic interest in equity-accounted joint ventures and subsidiaries by including the REIT’s proportionate share of assets, liabilities, revenues and expenses, where applicable.
  • Following the internalization of Vital Trust and the resulting loss of control, the REIT’s investment in Vital Trust is accounted for as an equity-accounted investment under IFRS. For purposes of the proportionate basis presentation, this investment is not proportionately consolidated. Instead, it is presented as a single line item on the proportionate balance sheet at its IFRS carrying value, with distributions presented separately and the remaining equity-accounted income recognized as a non-cash adjustment in the proportionate income statement.
  • Management believes the proportionate basis presentation provides useful information by more closely reflecting the underlying economics of the REIT’s investments. However, this presentation is not defined under IFRS and may not be comparable to similar measures presented by other issuers.
Net Operating Income
(“NOI”)
  • NOI represents revenue from investment properties, including straight-line rent and lease termination income, less property operating costs and is presented as net property operating income in the REIT’s consolidated financial statements prepared in accordance with IFRS.
  • NOI reflects the operating performance of the REIT’s income-producing properties before the impact of financing, income taxes and other non-property-level items.
  • NOI is also presented on a proportionate basis in the MD&A. Management believes NOI is an important measure of property-level operating performance used by real estate industry analysts, investors and management, and a key input in determining the fair value of the REIT’s income-producing portfolio.
Same-Property NOI
(Constant Currency)
(“SPNOI”)
  • SPNOI is a non-GAAP financial measure used to assess period-over-period operating performance of income-producing properties owned by the REIT for a full reporting period in both the current and comparative periods.
  • The measure excludes straight-line rental revenue, NOI attributable to properties that have been acquired, disposed of, or are subject to significant change as a result of development, redevelopment or expansion activities, as well as properties held for redevelopment. For the periods presented, SPNOI also excludes comparative-period NOI from Vital Trust to reflect its deconsolidation and current presentation.
  • SPNOI also excludes the impact of non-recurring items.
  • To enhance comparability, foreign currency impacts are excluded by converting comparative-period results using current-period average exchange rates.
  • SPNOI is derived from NOI and presented on a proportionate basis.
  • Management believes SPNOI is useful in understanding changes in NOI attributable to occupancy, contractual rental rate changes, operating costs and realty taxes, before considering the impact of acquisitions, dispositions and development activity.
Funds from Operations
(“FFO”)
  • FFO is a non-GAAP financial measure derived from IFRS net income (loss), the most directly comparable financial measure.
  • FFO adjusts IFRS net income (loss) for items that are not considered indicative of the recurring operating performance of income-producing real estate, including fair value adjustments, gains or losses on property dispositions, unrealized foreign exchange, deferred income taxes, current income taxes on property dispositions and transaction-related items. The measure also reflects the economic benefit of certain management fees eliminated on consolidation but realized through non-controlling interests, and excludes certain investment, financing and general and administrative costs.
  • Following the internalization of Vital Trust, FFO reflects the distributions received from Vital Trust, and excludes the REIT’s non-cash share of Vital Trust’s earnings.
  • The REIT generally calculates FFO in accordance with REALPAC guidance, subject to certain adjustments disclosed in the reconciliation. FFO is also presented excluding accelerated amortization of deferred financing costs.
  • Management uses FFO to assess operating performance and believes it meaningfully reflects period-over-period changes in occupancy, rental rates, operating costs, realty taxes, transaction activity and interest costs.
Adjusted Funds from
Operations (“AFFO”)
  • AFFO is a non-GAAP financial measure derived from FFO, the most directly comparable financial measure.
  • AFFO adjusts FFO for non-cash items and other items that do not reflect recurring cash outflows from owning and operating income-producing real estate, including financing-related accelerated amortization, straight-line rent differences and unit-based compensation.
  • AFFO also includes an adjustment for leasing costs and non-recoverable maintenance capital expenditures. For the REIT’s North American and European portfolios, the adjustment is a reserve that reflects management’s estimate of expected recurring capital requirements over time and may differ from actual expenditures in a given period. In Brazil and Australia, where these costs are generally more predictable under long-term, triple-net leases, the adjustment is based on actual expenditures.
  • The REIT generally calculates AFFO in accordance with REALPAC guidance, subject to certain adjustments disclosed in the reconciliation, and includes its proportionate share of adjustments related to equity accounted investments and joint ventures.
  • Management uses AFFO to assess operating performance and distribution sustainability and believes it reflects recurring operating cash flows after providing for recurring leasing and capital requirements.
AFFO Payout Ratio
  • AFFO payout ratio is a non-GAAP financial ratio used by management to assess the sustainability of the REIT’s distribution payments.
  • The ratio is calculated as cash distributions declared divided by AFFO for the period.
  • Management uses this ratio, together with other financial metrics, in evaluating distribution levels and long-term capital allocation decisions.
Adjusted Earnings
before
Interest, Taxes,
Depreciation and
Amortization (“Adjusted EBITDA”)
and
Annualized Adjusted EBITDA
  • Adjusted EBITDA is a non-GAAP financial measure derived from IFRS net income (loss).
  • The measure excludes interest expense, income taxes, depreciation and amortization, fair value adjustments, unit-based compensation, unrealized foreign exchange gains and losses, gains and losses on dispositions, transaction costs and other items not considered indicative of the recurring operating performance of income-producing real estate, as detailed in the applicable reconciliations.
  • Following the internalization of Vital Trust, Adjusted EBITDA includes distributions received from Vital Trust in place of the REIT’s share of Vital Trust’s Adjusted EBITDA.
  • Annualized Adjusted EBITDA is a non-GAAP financial measure presented on a proportionate basis. It is calculated as quarterly Adjusted EBITDA, adjusted to include the net operating income that properties acquired during the quarter would have earned over a full quarter (to the extent not already included) and to exclude the net operating income of properties disposed of during the quarter, and then multiplied by four.
  • Management uses Adjusted EBITDA to assess recurring operating earnings and debt service capacity and uses Annualized Adjusted EBITDA to assess leverage on a basis that reflects the properties owned at period end, without distortion from the timing of acquisitions and dispositions.
Debt
  • Debt is a supplementary financial measure representing the REIT’s indebtedness, as defined and calculated for the purposes of the financial ratios and covenants disclosed in the MD&A.
  • It generally includes mortgages, loans and credit facilities, lease liabilities and debentures reported in the consolidated financial statements and may include the REIT’s proportionate share of debt held in joint ventures, as applicable.
  • Debt may be presented on an IFRS or proportionate basis and, depending on the applicable definition, may exclude certain components; in the ratios presented in the MD&A, Debt is shown before deducting unamortized financing costs.
  • Management and lenders use Debt to assess leverage, financing capacity and compliance with debt-related covenants, including in relation to Gross Book Value and other measures, as applicable. Management also uses Debt in Debt to Annualized Adjusted EBITDA, which is used for monitoring purposes and is not a covenant.
Debt to Annualized
Adjusted EBITDA
  • Debt to Annualized Adjusted EBITDA is a non-GAAP ratio calculated as Debt divided by Annualized Adjusted EBITDA, each determined on a proportionate basis and as defined in this section.
  • Management uses this ratio to assess the REIT’s leverage and the approximate number of years of recurring earnings required to repay its debt, based on earnings that reflect the properties owned at period end.
  • The ratio is used for monitoring purposes only and is not a covenant under the REIT’s Declaration of Trust, revolving credit agreement or senior unsecured debenture indentures.
Gross Book Value
(“GBV”)
  • Gross Book Value is defined as total assets reported in the consolidated financial statements.
  • This measure may be presented on an IFRS or a proportionate basis, as applicable.
  • Gross Book Value is used, as applicable, in leverage ratios and covenant calculations in accordance with the definitions contained in the REIT’s Declaration of Trust, revolving credit agreement, and senior unsecured debenture indentures, including Debt to Gross Book Value.
Debt to Gross Book Value
  • Debt to Gross Book Value is a supplementary financial ratio calculated as Debt divided by Gross Book Value, as defined and calculated for the purposes of the applicable financial ratios and covenants disclosed in the MD&A, and is presented on an IFRS and proportionate basis, as applicable.
  • Management and lenders use this ratio to assess the REIT’s leverage and compliance with leverage-related covenants.
Net Asset Value (“NAV”)
  • NAV is a non-GAAP financial measure calculated as total assets less total liabilities and non-controlling interests, adjusted for the proportionate share of unit-based compensation liabilities, net deferred tax liabilities and net derivative financial instruments, and to reflect management’s estimates of fair value, including the fair value of the Manager and the quoted market price of Vital Trust units.
  • Management uses NAV as a measure of the REIT’s intrinsic value, and NAV per Unit as a valuation metric to assess whether the REIT’s units are trading at a discount or premium to intrinsic value.
Per Unit Measures
  • FFO per Unit, AFFO per Unit, NAV per Unit and Distributions declared per Unit are calculated by dividing the applicable measure by the number of units outstanding, calculated on a basic or diluted basis, as applicable.
  • Per unit amounts are calculated using the weighted average number of units outstanding during the period or units outstanding at period end, as applicable.
  • Where relevant, diluted unit counts include the impact of vested trust units, exchangeable or convertible units and other dilutive instruments, in accordance with the applicable calculation methodology.

 

The table below reconciles net income as determined in accordance with IFRS to net income on a proportionate basis(2) for the periods presented.

($ thousands)     For the three months ended
    September 30, 2026     September 30, 2025
    IFRS Basis     Adjustments     Proportionate Basis(1)     IFRS Basis     Adjustments   Proportionate Basis(1)
Net operating income                      
Revenue from investment properties    $  61,214    $  11,467    $  72,681    $  104,286    $  (15,090)  $  89,196
Property operating costs     (16,086)     (990)     (17,076)     (25,118)     2,750   (22,368)
    45,128     10,477     55,605     79,168     (12,340)   66,828
                     
Other income (expenses)                      
Interest and other income     1,341     (359)     982     2,386     (1,154)   1,232
Management fees     3,565     (958)     2,607     4,016     2,412   6,428
Share of income (loss) from equity                      
accounted investments       380      (380)      —        4,666      (4,666)      —
Non-cash equity income from Vital                       
Trust       —      194      194        —      —      —
Distributions from Vital Trust     —     3,800     3,800     —     —   —
Finance costs     (20,870)     (5,547)     (26,417)     (32,502)     2,380   (30,122)
General and administrative                      
expenses       (10,831)      (235)      (11,066)       (16,218)      373      (15,845) 
Transaction costs     (1,109)     —     (1,109)     (3,201)     —   (3,201)
Foreign exchange gain (loss)     141     (14)     127     (2,638)     2,619   (19)
Accretion of financial liabilities     (762)     —     (762)     (970)     —   (970)
Fair value adjustment of                      
convertible debentures       2,206      —      2,206        (6,850)      —      (6,850)
Fair value adjustment of financial                       
instruments       —      96      96        4,248      (1,937)      2,311
Fair value adjustment of investment                       
properties       7,093      (7,000)      93        8,781      (4,142)      4,639
Net loss on disposals of assets     (198)     —     (198)     (311)     299   (12)
Fair value adjustment of unit-based                       
compensation liabilities      507      —      507        (380)      —      (380)
Income (loss) before taxes     26,591     74     26,665     40,195     (16,156)   24,039
                     
Current income tax expense     (30,953)     (4)     (30,957)     (6,241)     2,325   (3,916)
Deferred income tax (expense)                       
recovery       26,256      (70)      26,186        (2,787)      (1,171)      (3,958)
Income tax expense     (4,697)     (74)     (4,771)     (9,028)     1,154   (7,874)
                     
Net income    $  21,894    $  —    $  21,894    $  31,167    $  (15,002)  $  16,165
Less: non-controlling interests     —     —     —     15,002     (15,002)   —
Net income attributable to                       
unitholders     $   21,894    $   —    $   21,894      $   16,165    $   —   $  16,165 

 

The following table reconciles net income (loss), as determined in accordance with IFRS, to net income (loss) on a proportionate basis(2) for the nine months ended September 30, 2026 and 2025:

($ thousands)     For the nine months ended
    September 30, 2026     September 30, 2025
    IFRS Basis     Adjustments     Proportionate Basis(2)     IFRS Basis     Adjustments   Proportionate Basis(2)
Net property operating income                      
Revenue from investment                      
properties    $   201,371     $   36,674    $   238,045      $   314,937    $   (42,814)   $    272,123
Property operating costs     (59,951)     (4,431)     (64,382)     (82,313)     7,808   (74,505)
    141,420     32,243     173,663     232,624     (35,006)   197,618
Other income (expenses)                      
Interest and other income     4,846     (1,485)     3,361     11,115     (3,251)   7,864
Management fees     11,164     (3,017)     8,147     11,379     7,508   18,887
Share of income (loss) from equity                       
accounted investments      4,748       (4,748)      —        572      (572)      —
Non-cash equity income from Vital                      
Trust       —      2,646      2,646        —      —      —
Distributions from Vital Trust     —     11,384     11,384     —     —   —
Finance costs     (62,864)     (15,751)     (78,615)     (104,512)     5,447   (99,065)
General and administrative                      
expenses       (40,455)      (691)      (41,146)        (45,957)      947      (45,010)
Transaction costs     (6,469)     —     (6,469)     (15,023)     6   (15,017)
Foreign exchange gain (loss)     (471)     (14)     (485)     4,655     1,097   5,752
Accretion of financial liabilities     (3,901)     —     (3,901)     (4,786)     —   (4,786)
Fair value adjustment of                      
convertible debentures      5,062       —      5,062        (17,541)      —      (17,541)
Fair value adjustment of financial                       
instruments       (572)      829      257        24,670      5,696      30,366
Fair value adjustment of investment                       
properties       (9,517)      (17,156)      (26,673)        (23,947)      5,230      (18,717)
Net loss on disposals of assets     (11,099)     (4,213)     (15,312)     (5,089)     511   (4,578)
Fair value adjustment of unit-based                       
compensation liabilities       74      —      74        (1,262)      —      (1,262)
Income (loss) before taxes     31,966     27     31,993     66,898     (12,387)   54,511
                     
Current income tax expense     (48,429)     158     (48,271)     (13,379)     5,563   (7,816)
Deferred income tax (expense)                      
recovery       34,791      (185)     34,606         (5,261)      (199)      (5,460)
Income tax expense     (13,638)     (27)     (13,665)     (18,640)     5,364   (13,276)
                     
Net income    $  18,328    $  -    $  18,328    $  48,258    $  (7,023)  $  41,235
Less: non-controlling interests     —     —     —     7,023     (7,023)   —
Net income attributable to
                                
unitholders     $  18,328    $  —    $  18,328      $  41,235    $  —   $  41,235 

 

The table below reconciles net income as determined in accordance with IFRS to Net Operating Income on a proportionate basis(2) for the periods presented.

For the periods ended September 30
($ thousands)		     Three Months     Nine Months
    2026     2025     $ Change     2026     2025   $ Change
Net income    $  21,894    $  31,167    $  (9,273)    $  18,328    $  48,258  $  (29,930)
Interest and other income     (1,341)     (2,386)     1,045     (4,846)     (11,115)   6,269
Management fees     (3,565)     (4,016)     451     (11,164)     (11,379)   215
Share of income (loss) from equity     (380)     (4,666)     4,286     (4,748)     (572)   (4,176)
accounted investments                                       
Finance costs     20,870     32,502     (11,632)     62,864     104,512   (41,648)
General and administrative expenses     10,831     16,218     (5,387)     40,455     45,957   (5,502)
Transaction costs     1,109     3,201     (2,092)     6,469     15,023   (8,554)
Foreign exchange gain (loss)     (141)     2,638     (2,779)     471     (4,655)   5,126
Accretion of financial liabilities     762     970     (208)     3,901     4,786   (885)
Fair value adjustment of convertible                      
debentures       (2,206)      6,850      (9,056)        (5,062)      17,541      (22,603)
Fair value adjustment of financial                      
instruments       —      (4,248)      4,248        572      (24,670)      25,242
Fair value adjustment of investment                      
properties       (7,093)      (8,781)      1,688        9,517      23,947      (14,430)
Net loss on disposals of assets     198     311     (113)     11,099     5,089   6,010
Fair value adjustment of unit-based                      
compensation liabilities       (507)      380      (887)        (74)      1,262     (1,336) 
Income tax expense     4,697     9,028     (4,331)     13,638     18,640   (5,002)
Net Operating Income (IFRS)     45,128     79,168     (34,040)     141,420     232,624   (91,204)
Adjustment for equity accounted    
investments       10,477      (12,340)      22,817        32,243      (35,006)      67,249
Net Operating Income (proportionate)    $  55,605   $   66,828   $   (11,223)    $  173,663    $  197,618 $  $ (23,955)

 

The table below reconciles Net Operating Income to Same-Property Net Operating Income for the periods presented.

For the periods ended September 30
($ thousands)		     Three Months     Nine Months
    2026     2025     $ Change     2026     2025   $ Change
Net Operating Income (proportionate)    $  55,605    $  66,828    $  (11,223)    $  173,663    $  197,618  $  (23,955)
Straight-line rental revenue     (929)     (824)     (105)     (2,477)     (2,673)   196
Lease termination fees     —     —     —     (52)     (110)   58
Foreign currency translation     —     2,891     (2,891)     —     9,160   (9,160)
Vital Trust NOI     —     (10,168)     10,168     —     (29,391)   29,391
Acquisitions / Dispositions     (2,618)     (8,113)     5,495     (17,780)     (25,560)   7,780
Other     (275)     (139)     (136)     (746)     (180)   (566)
Same-Property Net Operating Income    $  51,783    $  50,475    $  1,308    $  152,608    $  148,864 $  3,744

 

Same-Property Net Operating Income by region is as follows for the periods presented:

For the periods ended September 30
($ thousands)		     Three Months   Nine Months  
    2026     2025     $ Change     % Change   2026 2025 $ Change % Change  
North America    $  20,568    $  20,214    $  354     1.8 % %   $  60,411 $  59,602 $  809 1.4   %
Brazil     16,176     15,510     666     4.3 % %   47,855 45,875 1,980 4.3   %
Europe     4,510     4,511     (1)     —  %   13,569 13,384 185 1.4   %
Australia     10,529     10,240     289     2.8 % %   30,773 30,003 770 2.6  % 
Same-Property Net Operating     $  51,783    $  50,475    $  1,308     2.6 % %   $ 152,608 $ 148,864 $ 3,744 2.5  % 
Income     $   51,783    $  50,475    $  1,308      2.6 %    $ 152,608     $ 148,864     $ 3,744      2.5  % 

 

The following table reconciles net income attributable to unitholders to Funds from Operations(2) for the periods presented:

For the periods ended September 30
($ thousands)		     Three Months   Nine Months
    2026     2025   $ Change   2026 2025 $ Change
Net income attributable to unitholders   $   21,894    $  16,165 $  5,729   $ 18,328 $ 41,235 $ (22,907)
Add / (Deduct):                    
Fair value adjustment of convertible             
debentures      (2,206)       6,850     (9,056)        (5,062)      17,541      (22,603) 
Fair value adjustment of financial         
instruments       —      (4,248)     4,248        572      (24,670)      25,242 
Fair value adjustment of investment         
properties      (7,093)      (8,781)     1,688        9,517      23,947      (14,430) 
Fair value adjustment of unit-based      
compensation liabilities      (507)      380     (887)        (74)      1,262      (1,336) 
Less: Non-controlling interests’ share     
of fair market value losses (gains)       —      7,084     (7,084)        —      (20,294)      20,294 
Accretion of financial liabilities     762     970   (208)   3,901 4,786 (885)
Unrealized foreign exchange loss (gain)     (262)     2,827   (3,089   298 (4,588) 4,886
Less: Non-controlling interests’ share of unrealized foreign    
 exchange loss (gain)       —      (2,795)     2,795        —      (1,266)      1,266 
Deferred tax expense (recovery)     (26,256)     2,787   (29,043)   (34,791) 5,261 (40,052)
Less: Non-controlling interests’ share     
of deferred taxes       —      1,109     (1,109)        —      (694)      694 
Transaction costs     1,109     3,201   (2,092)   6,469 15,023 (8,554)
Less: Non-controlling interests’ share     
of transaction costs       —      —     —        —      (6)      6 
Net loss on disposal of assets     198     311   (113)   11,099 5,089 6,010
Less: Non-controlling interests’ share     
of net loss on disposal      —      (298)     298        —      (510)      510 
Tax on profits or losses on disposals    
of properties and on proceeds from the internalization of Vital Trust      30,164      581     29,583        44,732      581      44,151 
Net adjustments for equity accounted             
entities       6,974      (875)     7,849        20,725      10,395      10,330 
Non-cash equity income from Vital Trust     (194)     —   (194)   (2,646) — (2,646)
Internal leasing costs     377     526   (149)   1,583 1,365 218
Property taxes accounted for under     
IFRIC 21       (15)      (20)     5        5      8      (3) 
Net adjustment for lease liabilities     83     25   58   43 46 (3)
Employee termination benefits and      
related expenses       (65)      2,078     (2,143)        2,692      3,693      (1,001) 
G&A expenses related to strategic     
tenant inducements       209      198     11        619      609      10 
Funds from Operations(2)    $  25,172    $  28,075 $  (2,903)   $ 78,010 $ 78,813 $ (803)
FFO per Unit – Basic    $  0.10    $  0.11 $  (0.01   $ 0.31 $ 0.32 $ (0.01)
FFO per Unit – Diluted    $  0.10    $  0.11 $  (0.01   $ 0.31 $ 0.32 $ (0.01)
                   
Weighted average number of units                     
outstanding                                       
Basic     250,018,529     249,662,325   356,204   250,009,946 248,879,957 1,129,989
Diluted     251,084,501     250,712,935   371,566   250,913,478 249,944,171 969,307

 

The following table reconciles FFO(2) to FFO excluding accelerated amortization of deferred financing costs(2):

For the periods ended September 30
($ thousands)		     Three Months Nine Months
    2026     2025   $ Change 2026 2025 $ Change
FFO(1)    $  25,172    $  28,075 $   (2,903) $  78,010 $  78,813 $  (803)
Accelerated amortization of deferred     
financing costs       1,317      —      1,317      1,855      3,350      (1,495)
Accelerated amortization of deferred financing costs through equity     
accounted  investments       92      —      92      92      —      92
FFO, excluding accelerated amortization     
of deferred financing costs(1)     $   26,581    $   28,075    $   (1,494)    $   79,957    $   82,163    $   (2,206)
FFO per unit – diluted, excluding accelerated amortization of deferred     
financing costs(1)    $   0.11    $  0.11     —     $ 0.32     $ 0.33     $ (0.01) 
Weighted avg number of units outstanding –    
diluted       251,084,501      250,712,935     371,566      250,913,478      249,944,171      969,307 

 

The following table reconciles Funds from Operations(2) to Adjusted Funds from Operations(2) for the periods presented:

For the periods ended September 30
($ thousands)		     Three Months   Nine Months
    2026   2025 $ Change   2026 2025 $ Change
Funds from Operations(2)    $  25,172  $  28,075 $  (2,903)   $  78,010 $  78,813 $  (803)
Add / (Deduct):        
Accelerated amortization of deferred     
financing costs       1,317     -      1,317        1,855      3,350        (1,495)
Unit-based compensation expense     2,281   2,118 163   8,938 5,709 3,229
Straight-line rental revenue     (961)   (95) (866   (2,477 ) (300) (2,177)
Less: non-controlling interests’ share of    
straight-line revenue       —     (539)      539        -      (1,567)      1,567
Leasing costs and non-recoverable      (2,400)   (2,790) 390   (8,487) (9,184) 697
maintenance capital expenditures                                       
Less: non-controlling interests’ share of     
actual capex and leasing costs       —     35      (35)        —      540      (540)
Net adjustments for equity accounted     
entities       (20)     (476)      456        (333)      (1,280)      947
Adjusted Funds from Operations(2)    $  25,389 $   26,328 $ (939)   $ 77,506 $ 76,081 $ 1,425
AFFO(1) per Unit – Basic    $  0.10 $   0.11 $ (0.01)   $ 0.31 $ 0.31 $ —
AFFO(1) per Unit – Diluted    $  0.10 $   0.11 $ (0.01)   $ 0.31 $ 0.30 $ 0.01
Distributions per Unit    $  0.09 $   0.09 $ –   $ 0.27 $ 0.27 $ —
                 
Weighted average number of units outstanding                  
Basic     250,018,529   249,662,325 356,204   250,009,946 248,879,957 1,129,989
Diluted     251,084,501   250,712,935 371,566   250,913,478 249,944,171 969,307

 

Management’s Discussion and Analysis and Condensed Consolidated Interim Financial Statements and Notes

Information appearing in this news release is a select summary of results. This news release should be read in conjunction with the Vital Infrastructure Property Trust’s Third Quarter Report to Unitholders, which includes the condensed consolidated interim financial statements and the MD&A for the REIT, and is available at www.vitalreit.com and on SEDAR+ at www.sedarplus.ca.

Corporate Presentation

Download the REIT’s Updated Corporate Presentation: www.vitalreit.com/investors

Q3 2026 Results Conference Call

The REIT will be hosting its Q3 2026 results conference call on Thursday, November 12, 2026 at 10:00 a.m. ET. The dial-in numbers for the conference call are as follows:
Canada – Toronto: (647) 932-3411
Canada (toll free): (800) 715-9871
Conference ID: 4140820
Link to audio webcast: https://www.gowebcasting.com/15015

About Vital Infrastructure

Vital Infrastructure Property Trust (TSX: VITL.UN) provides investors with access to a portfolio of high-quality international healthcare real estate infrastructure. As at September 30, 2026, the REIT held interests in a diversified portfolio of 107 income-producing properties totalling 11.4 million square feet of gross leasable area located throughout major markets in North America, Brazil, Europe and Australia. The REIT’s portfolio of outpatient, inpatient, and other health research facilities is characterized by long-term indexed leases and stable occupancies. Vital Infrastructure leverages its global workforce in six countries to serve as a long-term real estate partner to leading healthcare operators. For additional information, please visit www.vitalreit.com.

Contacts

Zach Vaughan, Chief Executive Officer, [email protected]
Stephanie Karamarkovic, Chief Financial Officer, [email protected]
Steven Hong, Vice President, Investor Relations, [email protected], [email protected], (905) 229-9266

Forward-Looking Statements

This press release may contain forward-looking statements with respect to the REIT, its operations, strategy, financial performance and condition. These statements can generally be identified by words such as “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe”, or “continue” or the negative thereof or similar variations.

Forward-looking statements in this press release include statements concerning the anticipated transition of the Australian hospital portfolio from Healthscope to Calvary, including the expected timing and financial impact.

The REIT’s actual results and performance discussed herein could differ materially from those expressed or implied by such statements. The forward-looking statements contained in this press release are based on numerous assumptions which may prove incorrect, and which could cause actual results or events to differ materially from the forward-looking statements. These include assumptions relating to the REIT’s properties continuing to perform as they have recently, various general economic, political, demographic and market factors, including exchange rates remaining constant, local real estate conditions remaining strong, and interest rates remaining at current levels or decreasing, the availability of equity and debt financing to the REIT; and the REIT’s ability to refinance, or extend the maturity of, its existing debt, the costs and returns of certain initiatives, tenant credit and leasing assumptions, and the successful completion of the Healthscope/Calvary transition and performance under the revised lease arrangements. Such forward-looking statements are also qualified in their entirety by the inherent risks and uncertainties surrounding future expectations and the risks described under the heading “Risk Factors” in the REIT’s Annual Information Form and the risks and uncertainties set out in the MD&A, which are available on SEDAR+ at www.sedarplus.ca.

Unless otherwise stated, all forward-looking statements speak only as of the date of this press release, and, except as expressly required by applicable law, the REIT assumes no obligation to update such statements.

To view the source version of this press release, please visit https://www.newsfilecorp.com/release/323558

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