from AIP Realty Trust (CVE:AIP.U)
AIP Realty Trust Announces First Quarter 2026 Results
VANCOUVER, BC / ACCESS Newswire / May 29, 2026 / AIP Realty Trust (the "Trust" or "AIP Realty") (TSXV:AIP.U) today announced its financial results for the three months ended March 31, 2026. All dollar amounts are stated in U.S. dollars.
Q1 2026 Highlights
The demand for light industrial flex facilities is continuing to drive rental rate increases, and Eagle Court is demonstrating robust leasing momentum. While the Trust aims to minimize vacancies and has been successful in this endeavor, unit turnover provides an opportunity to update suite revenue per square foot and bring it in line with current market conditions. New leases signed in at Eagle Court have seen an average 19% increase in suite revenue per square foot.
Investment property revenue was $121,697 for the three months ended March 31, 2026, compared to $124,232 in the same period in 2025, a decrease of $2,535, or 2%. The decline in investment property revenue was primarily due to a decline in miscellaneous income from permitting assistance and other one-time charges as compared to 2025.
Investment property operating expense for the three months ended March 31, 2026, decreased to $44,494, compared to $64,742 for the three months ended March 31, 2025, a decrease of $20,148, or 31%. The decrease in investment property operating expense was primarily due to a decrease in maintenance and repair expense, along with a reduction in miscellaneous expense, primarily from fire and safety inspection charges in 2025, with no comparable amount in 2026.
As a result, overall investment property net rental income for the three months ended March 31, 2026, was $77,203, compared to $59,490 for the three months ended March 31, 2025, an increase of $17,713, or 29%.
During the three months ended March 31, 2026, the Trust issued 1,367,946 Preferred Units - Series B Convertible (each a "Preferred Unit") as part of the fifth tranche of a non-brokered private placement (the "Financing"), at a price of $0.50 per Preferred Unit, for aggregate gross proceeds of $683,973. The Trust incurred $70,000 of finder's fees to a non-related third party and incurred $4,190 of legal fees in connection with the fifth tranche of the Financing. The Trust is utilizing the proceeds of the Financing for working capital and general corporate purposes.
Between January 1, 2026 and March 31, 2026, Realty USA issued convertible promissory notes ("Notes") with an aggregate principal amount of $1,305,000. The Notes bear interest at a fixed rate of 6% per annum, are unsecured, and mature one year from the issuance date.
Selected Financial Information
For the Three Months Ended, | ||||||||
March 31, 2026 (Unaudited) | March 31, 2025 (Unaudited) | |||||||
Investment property revenue | $ | 121,697 | $ | 124,232 | ||||
Investment property operating expense | (44,494 | ) | (64,742 | ) | ||||
Investment property net rental income | 77,203 | 59,490 | ||||||
Trust expense | ||||||||
Professional fees | 399,098 | 477,143 | ||||||
Interest and finance | (72,622 | ) | 473,340 | |||||
General, administrative, and other | 14,706 | (3,808 | ) | |||||
Trustee fees and management compensation | 516,250 | 533,750 | ||||||
857,432 | 1,480,425 | |||||||
Loss before other items | (780,229 | ) | (1,420,935 | ) | ||||
Fair value adjustment to investment properties | (39,666 | ) | 91,403 | |||||
Net Loss and Total Comprehensive Loss | $ | (819,895 | ) | $ | (1,329,532 | ) | ||
March 31, 2026 (Unaudited) | December 31, 2025 (Audited) | |||||||
Investment property | $ | 6,023,507 | $ | 6,063,173 | ||||
Cash | $ | 43,333 | $ | 83,748 | ||||
Project debt (net of debt discount) | $ | 2,815,470 | $ | 2,824,331 | ||||
Convertible Promissory Notes | $ | 1,305,000 | $ | - | ||||
Series A-1 preferred share liability | $ | 2,200,000 | $ | 2,200,000 | ||||
Accounts payable and accrued expenses | $ | 9,190,773 | $ | 8,672,789 | ||||
Units outstanding | 4,924,448 | 4,924,448 | ||||||
The foregoing is a summary of selected information for the three months ended March 31, 2026 and December 31, 2025 and is qualified in its entirety by, and should be read in conjunction with, the Trust's audited consolidated financial statements and management discussion and analysis for the years ended December 31, 2025 and 2024. These documents are available on SEDAR+ at www.sedarplus.com, and on the Trust's website at www.aiprealtytrust.com.
Related party disclosures
The executive management team of the Trust is the same executive management team as AllTrades. There were no cash payments made by the Trust to its executive management team or any trustee during the three months ended March 31, 2026 or 2025. At March 31, 2026 and December 31, 2025, the Trust had recorded $7,296,885 (2025 - $6,840,635) of accrued and unpaid management compensation and $1,156,699 (2025 - $1,096,699) of accrued and unpaid compensation for its trustees.
The accrued and unpaid compensation for management was on a non-cash basis for the initial three years through April 14, 2025, and will only be issued in Units of the Trust, upon written approval from the Board of Trustees. Effective December 31, 2025, the Board of Trustees approved the continuation of the accrual of compensation for management in the form of Units of Trust at the same amount, on a deferred basis, with payment to be made at such time as the Trust is sufficiently funded.
Future Plans and Outlook
As previously disclosed in November 2025, the Board of Trustees continues to explore the execution of its business plan and relationship with AllTrades and anticipates closing the AllTrades Transaction by the end of the third quarter of 2026.
Subsequent Events
From April 1, 2026 to April 17, 2026, Realty USA issued Notes for an additional $50,000 of proceeds. As a result, the outstanding Notes balance is $1,355,000.
Effective May 8, 2026, the Trust refinanced the project debt that had a maturity date of February 9, 2026 with another financial institution for the Eagle Court project. The new loan is for $2,940,110, and the maturity date is November 8, 2027 with an interest rate ceiling of 8.17%. Monthly interest-only payments are required through February 8, 2027. If the outstanding principal balance is not paid in full by February 8, 2027, a principal payment of $25,452 is required. If the outstanding principal balance is not paid by May 8, 2027, a principal payment of $8,750 is required. If the outstanding principal balance is not paid in full by August 8, 2027, a principal payment in the amount of $8,884 is required. See Note 4 - Project Debt. As a component of the project debt refinancing discussed above, Plymouth agreed to exchange its 4,400,000 OP Units acquired through the Plymouth Transaction for a Secured Promissory Note through a Redemption Agreement. As a result of the Redemption Agreement, the Put Option granted to Plymouth was terminated. The new Plymouth Secured Promissory Note is for $2,287,699, accrues interest at 12% annually, and the outstanding principal and all accrued interest is due on the maturity date of September 30, 2027. The Promissory Note is secured by a Junior Deed of Trust behind the $2,940,110 refinanced 1st deed of trust position discussed above.
About AIP Realty Trust
AIP Realty Trust is an unincorporated, open-ended mutual fund trust with a growing portfolio of AllTrades-branded SIBS light industrial flex facilities focused on small businesses and the trades and services sectors in the U.S. These properties appeal to a diverse range of small space users, such as contractors, skilled trades, suppliers, repair services, last-mile providers, small businesses, and assembly and distribution firms. They typically offer attractive fundamentals, including low tenant turnover, stable cash flow, and low capex intensity, as well as significant growth opportunities. With an initial focus on the Dallas-Fort Worth market, AIP plans to roll out this innovative property offering nationally. AIP holds the exclusive rights to finance the development of and to purchase all the completed and leased properties built across North America by its development and property management partner, AllTrades Industrial Properties, LLC. For more information, please visit www.aiprealtytrust.com.
For further information from the Trust, contact:
Leslie Wulf
Executive Chairman
(214) 679-5263
les.wulf@aiprealtytrust.com
Or
Greg Vorwaller
Chief Executive Officer
(778) 918-8262
greg.vorwaller@aiprealtytrust.com
Cautionary Statement on Forward-Looking Information
This press release contains statements which constitute "forward-looking information" within the meaning of applicable securities laws, including statements regarding the plans, intentions, beliefs and current expectations of AIP Realty Trust with respect to future business activities and operating performance. Forward-looking information is often identified by the words "may", "would", "could", "should", "will", "intend", "plan", "anticipate", "believe", "estimate", "expect" or similar expressions and includes information regarding, future acquisitions by the Trust, the ability to obtain regulatory and unitholder approvals and other factors. When or if used in this news release, the words "anticipate", "believe", "estimate", "expect", "target", "plan", "forecast", "may", "schedule" and similar words or expressions identify forward-looking statements or information. These forward-looking statements or information may relate to the commencement of development on certain of the AllTrades facilities proposed financing activity, proposed acquisitions, regulatory or government requirements or approvals, the reliability of third-party information and other factors or information. Such statements represent the Trust's current views with respect to future events and are necessarily based upon a number of assumptions and estimates that, while considered reasonable by the Trust, are inherently subject to significant business, economic, competitive, political and social risks, contingencies and uncertainties. Many factors, both known and unknown, could cause results, performance or achievements to be materially different from the results, performance or achievements that are or may be expressed or implied by such forward- looking statements. These forward-looking statements are made as of the date hereof and are expressly qualified in their entirety by this cautionary statement. The Trust does not intend, and do not assume any obligation, to update these forward-looking statements or information to reflect changes in assumptions or changes in circumstances or any other events affecting such statements and information other than as required by applicable laws, rules and regulations.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
This news release is not an offer of securities for sale in the United States. The securities may not be offered or sold in the United States absent registration or an exemption from registration under U.S. Securities Act of 1933, as amended (the "U.S. Securities Act"). The Trust has not registered and will not register the securities under the U.S. Securities Act. The Trust does not intend to engage in a public offering of their securities in the United States.
SOURCE: AIP Realty Trust
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