Q2 2025 Granite Real Estate Investment Trust Earnings Call

August 7, 2025

Good morning. My name is Jenny and I will be your conference operator today.

At this time, I would like to welcome everyone to Granite reads. A second quarter, 2025 results conference call.

All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a questioning answer session. If you would like to ask a question during this time, simply press star 1 on your telephone keypad, if you would like to withdraw your question, please press star 2. Thank you speaking. To you on the call this morning is Kevin Gorey, president and chief executive officer and Teresa Netto Chief Financial Officer.

Teresa Neto: Good morning, everyone. Before we begin today's call, I would like to remind you that the statements and information made in today's discussion may constitute forward-looking statements and forward-looking information and that actual results could differ materially from any conclusion, forecast, or projection. These statements and information are based on certain material factors or assumptions, reflect management's current expectations, and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from forward-looking statements or information.

I will now turn the call over to Theresa NATO to go over certain adversaries.

Teresa Neto: These risks and uncertainties and material factors and assumptions applied in making forward-looking statements or information are discussed in Granite's material filed with the Canadian Securities Administrators and the U.S. Securities and Exchange Commission from time to time, including the Risk Factor section of its annual information form for 2024 and Granite's Management's Discussion and Analysis for the year ended 31 December 2024, filed on 26 February 2025, and for the quarter ended 30 June 2025, filed on 6 August 2025. Granite posted Q2 2025 results in line with management's annual forecast and guidance, largely driven by strong NOI growth and positive accretion from NCIB unit repurchases, partially offset by unfavorable foreign exchange.

Good morning everyone. Before we begin today's call, I would like to remind you that the statements and information made. In today's discussion, May constitute 4 looking statements and 4 looking information and that actual results could differ materially from any conclusion, forecast or projection. These statements and information are based on certain material factors or assumptions, reflect Management's, current expectations, and are subject to known and unknown risks and uncertainties that could cause actual results to differ materially from forward-looking statements, or information. These risks, and uncertainties and material factors and assumptions applied in making forward-looking statements, or information or discussed in Grant's material filed with the Canadian Security administrators and the US Securities and Exchange Commission from time to time, including the risk factor section of its annual information form.

Teresa Neto: FFO per unit in Q2 was $1.39, representing a $0.07 or 4.8% decrease from Q1 and a $0.07 or 5.3% increase relative to the same quarter in the prior year. In Q1, FFO included a number of non-recurring items, including lease close-out revenue, a reversal of prior year bonus accruals, and a favorable credit relating to a prior year German withholding tax reserve, all totaling $1.7 million, where if excluded, FFO per unit would have been $1.43. Therefore, Q2 2025 FFO per unit is $0.04 lower relative to a normalized Q1. However, in Q2, the US dollar weakened by 3.6%, partially offset by the euro strengthening by 4%, which caused a further negative impact of $0.04 to FFO per unit quarter-over-quarter.

Number 2024 and granite's Management's discussion and Analysis for the year ended. December 31st 2024 filed on February 26th and for the quarter ended, June 30 files on August 6th, 25. Granite posted Q2 25 results in line with Management's, annual forecasts and guidance. Largely driven by strong noi growth and positive accretion from ncib unit repurchases, partially offset by unfavorable foreign exchange.

Ffo per unit in Q2 was 1.39 representing a 7 Cent or 4.8% decrease from q1 and a 7 Cent or 5.3% increase relative to the same quarter in the prior year.

Included ffo per unit, would have been a143.

Therefore, Q2 25 ffo per unit is 4 cents, lower relative to a normalized q1.

Teresa Neto: In addition, Granite realized a foreign currency loss of CAD 1 million on monetary items that was driven by the large changes in foreign currency rates and their impact on settling financial accruals. If the impacts of foreign currency are isolated and excluded, FFO per unit in Q2 is in fact slightly ahead of normalized Q1 by 1 cent due to NCIB accretion, offset partially by a small decline in NOI tied to new vacancies commencing in the quarter.

However, in Q2 the US dollar weakened by 3.6% partially offset by the Euro, strengthening by 4%, which caused a further negative 4 cents, uh, to ffo negative impact of 4 cents to ffo per unit quarter over quarter.

In addition, Granite realized a foreign currency loss of 1 million on monetary items that was driven by the large changes in foreign currency rates and their impact on settling Financial approvals.

Teresa Neto: AFFO per unit in Q2 was CAD 1.23, which is CAD 0.18 lower relative to Q1 and CAD 0.06 higher relative to the same quarter last year, with a decrease versus Q1 mostly tied to higher capital expenditures, leasing costs, and tenant allowances incurred largely driven by strong leasing activity during the quarter as previously mentioned. AFFO related capital expenditures incurred in the quarter totaled CAD 8 million, which is an increase of CAD 7.3 million over Q1 and CAD 0.9 million lower than the same quarter last year. For 2025, we continue to expect AFFO related expenditures to come in at approximately CAD 40 million for the year, unchanged from our estimates previously provided.

In the impacts of, if the impact of foreign currency are isolated and excluded ffo per unit, in Q2 is, in fact, slightly ahead of normalized, q1 by 1 cent due to ncib, accretion offset, partially by a small decline. In noi, tied to new, vacancies, commencing in the quarter.

Afo per unit in Q2 was 1.23 which is 18 cents, lower relative to q1 and 6 cents, higher relative, to the same quarter last year with the decrease versus q1 mostly tied to higher Capital expenditures, leasing costs and tenant allowances incurred. Largely driven by strong leasing activity during the quarter as previously mentioned.

Ifo related Capital expenditures incurred in the quarter to totaled 8 million which is an increase of 7.3 million over q1 and 0.9 million lower than the same quarter last year.

Teresa Neto: Same property NOI for Q2 was strong relative to the same Q2 last year, increasing 4.6% on a constant currency basis and up 7.4% when foreign currency effects are included. Same property NOI growth was driven primarily by CPI and contractual rent increases across all of Granite's regions, positive leasing spreads on lease renewals primarily in the US and Canada, the expiration of a free rent period associated with the completed development in the prior year in Canada, and the lease commencement of two expansion projects in Canada and the Netherlands, and a new lease commencing at a development project in the US.

4 2025, we continue to expect afo related expenditures to come in at approximately 40 million for the year unchanged from our estimate previously provided

same property on a y for the second quarter with strong relative to the same quarter last year, increasing 4.6% on a constant currency basis and up 7.4% when foreign currency affects our included,

Teresa Neto: Given the strong leasing activity in Q2 2025 and the effects of removing assets held for sale, we are raising our guidance for the year for constant currency, same property NOI based on a 4 quarter average to be in the range of 5% to 6.5%, up from our previous estimate of 4.5% to 6%. G&A for the quarter was CAD 10 million, which was CAD 2.3 million higher than the same quarter last year and CAD 1.5 million higher than Q1. The increase relative to Q1 includes CAD 0.3 million unfavorable fair value adjustments to non-cash compensation liabilities, which does not impact Granite's FFO and AFFO.

I know growth was driven primarily by CPI and contractual rent increases across all of Granite’s regions. Positive leasing spreads on lease renewals were primarily in the U.S. and Canada, along with the expiration of a free rent period associated with the completed development in the prior year in Canada. Additionally, the lease commencement of two expansion projects in Canada and the Netherlands, and a new lease commencing at a development project in the U.S.

Given the strong leasing activity in the second quarter of 25 and the effects of removing assets held for sale, we are raising our guidance for the year. For constant currency, same property on the Y based on a 4 quarter average to be in the range of 5 to 6 and a half percent up from our previous estimate of 4 and a half to 6%.

Teresa Neto: G&A expenses that do impact FFO and AFFO were approximately CAD 1.2 million higher than Q1, which is mostly related to the absence of a reversal of the prior year bonus accrual recorded in Q1 and higher public entity costs due to seasonality relating to Granite's AGM in June and a 2024 ESGR report that was released yesterday. For 2025, we continue to expect G&A expenses that impact FFO and AFFO of approximately CAD 10 million per quarter or roughly 7% of revenues. Interest expense was higher in Q2 relative to Q1 by CAD 0.4 million, while interest income decreased by CAD 0.3 million compared to Q1, resulting in an increase to net interest expense. The increase in interest expense was primarily driven by draws on the credit facility to fund Granite's NCIB repurchases.

GNA for the quarter was 10 million, which was 2.3 million higher than the same quarter last year and 1.5 million higher than q1. The increase relative to q1 includes 3 million, unfavorable fair value, adjustments to non-cash, compensation liabilities, which does not impact granite's, ffo and afo.

G&A expenses that do impact ffo and afo were approximately 1.2 million higher than q1, which is mostly related to the absence of a reversal of the prior year. Bonus of cruel, recorded in q1 and higher public entity costs, due to seasonality relating to Grant's AGM in June. And a 2024 ESG are report that was released yesterday.

For 25 2025, we continue to expect GNX GNA expenses that impact ffo and afo of approximately 10 million per quarter or roughly 7% of revenues.

It just expands with higher in Q2 relative to Q1 by $0.4 million. While interest income decreased by $0.3 million compared to the first quarter, resulting in an increase to net interest expense.

Teresa Neto: The decrease in interest income was due to lower invested cash balances. Net interest expense was higher, the impact to both FFO and AFFO per unit is more than offset by the accretion from repurchased units under the NCIB. Granite's weighted average cost of debt is currently 2.71%, and the weighted average debt to term to maturity is 3.9 years. With Granite's net debt maturity now in September 2026, we continue to expect interest expense to remain stable over the next approximate 12 months or roughly CAD 24 million per quarter, barring any other new transactions. Q2 2025 current income tax was CAD 3 million, which is CAD 0.4 million higher as compared to the prior year and CAD 0.5 million higher as compared to Q1.

Though net interest net interest expense was higher the impact of both episode and ethical per unit is more than offset by the accretion from repurchase units under the in CIB.

The increase in interest expense was primarily driven by draws on the credit facility to fund granite's. Ncib repurchases. The decrease in interest income was due to lower invested cash. Balances, although net, net. Interest expense was higher the impact to both ffo and afo per unit is more than offset by the accretion from repurchased unit.

Grant its weighted average cost of debt is currently $2, 71% and a weighted average debt to term to maturity of three nine years with granted net debt maturity now in September 2026, we continue to expect interest expense to remain stable over the next approximate 12 months or roughly $24 million per quarter.

It's under the ncip.

Barring any other new transactions.

Q2, 'twenty five current income tax was $3 million, which is <unk> 4 million higher as compared to the prior year and point $5 million higher as compared to Q1. The increase in current tax relative to Q1 is mostly related to the strengthening of the euro relative to the Canadian dollar and the absence of the point 2 million credit.

Teresa Neto: The increase in current tax relative to Q1 is mostly related to the strengthening of the euro relative to Canadian dollar and the absence of the CAD 0.2 million credit related to the German withholding tax reserve we recognized in Q1. For the remainder of 2025, we are expecting current income taxes to come in at approximately CAD 2.8 million per quarter. Regarding 2025 estimates, Granite is increasing its 2025 guidance. Granite's current outlook reflects lease renewals and new leasing of vacant space completed year to date. The acquisition of the Florida property as we completed on 30 June 2025, and excludes any potential impact from the disposition activity of the 5 assets that Granite has classified as assets held for sale, since the timing of such dispositions can't be determined at this time. The outlook also factors year-to-date financing and NCIB activity.

Related to the German withholding tax reserve, we recognized in Q1.

For the remainder of 2025, we are expecting current income taxes to come in at approximately $2 8 million per quarter.

Regarding twenty-five estimates granted is increasing its 25 guidance granted current outlook reflects lease renewals and new leasing of vacant space completed year to date the acquisition of the Florida property as we completed on June 30th and excludes any potential impact from the disposition activity of the five assets.

But granted has classified as assets held for sale.

What's the timing of such dispositions cannot be determined at this time.

The outlook also factors year to date financing and N CIB activity.

Teresa Neto: For FFO per unit, we are raising guidance from last quarter to the range of CAD 5.75 to 5.90, which represents an approximate 6% to 9% increase over 2024. For AFFO per unit, we are increasing our guidance to the range of CAD 4.90 to 5.05, which represents an increase of 1% to 4% over 2024, partially impacted by higher maintenance capital expenditures, which we discussed in prior calls. Granite's forecast was updated this quarter to assume a range of, on foreign currency of US dollar to Canadian dollar of 1.35 to 1.39. That was previously 1.37 to 1.42. The range for the euro Canadian dollar of 1.56 to 1.61, previously 1.52 to 1.58. Granite will continue to provide updates on guidance each quarter based on leasing and any other transaction activity.

For episodes per unit, we are raising guidance from last quarter to the range of $5 75 to $5 90.

Which represents an approximate 6% to 9% increase over 24 for <unk> per unit, we are increasing our guidance to the range of $4 90 to 505, which represents an increase of 1% to 4% over 2024, partially impacted by higher maintenance capital expenditures, which we discussed in prior calls.

Granted forecast was updated this quarter to assume a range.

On foreign currency of U S dollar to Canadian dollar and 135 to $1 39 that was previously $1 37 to $1 42, and the range for the Euro Canadian dollar and 156 to $1 61, previously $1 52 to $1 58.

Granted we will continue to provide updates on guidance each quarter based on leasing and any other transaction activity.

Teresa Neto: Our balance sheet comprises of investment properties of CAD 9 billion at the end of the quarter, and that was reduced by the approximate CAD 310.5 million due to the classification of 5 assets as held for sale, consistent with our messaging from the last quarter in which Kevin will discuss further. This was further reduced by CAD 189 million foreign exchange translation losses on Granite's foreign-based investment properties, mostly driven by the 5.3% decrease in the US spot exchange rate relative to Q1, partially offset by a small gain of CAD 16.8 million on the portfolio. The $49.7 million increase due to the Florida acquisitions.

Our balance sheet comprises of investment properties of $9 billion at the end of the quarter and that was reduced by entoproct by the approximately $310 5 million due to the classification of five assets as held for sale.

Consistent with our messaging from the last quarter in which Kevin will discuss.

Discuss further this was further reduced by 189 million foreign exchange translation losses on granite foreign based investment properties.

Mostly driven by the five 3% decrease in the U S spot exchange rate relative to Q1, partially offset by a small gain of $16 8 million on the portfolio and the $49 7 million increase due to the Florida acquisitions.

Teresa Neto: The REIT's overall weighted average cap rate of 5.5% on in-place NOI increased 13 basis points from the end of Q1. It has increased 21 basis points since the same quarter last year. Net leverage at the end of the quarter was 36%, which is an increase of 4% from the last quarter at 32%. Net debt to EBITDA was 7.1x, a slight increase from 6.8 in Q1, consistent relative to Q2 2024. The increase in Granite's key leverage ratios is primarily due to the classification of the five assets as held for sale, as they are excluded from the investment property value, resulting in a decrease in the denominator of the net leverage ratio.

Or are the rates overall weighted average cap rate of five 5% on in place NOI increased 13 basis points from the end of Q1 and has increased 21 basis points since the same quarter last year.

Net leverage at the end of the quarter was 36%, which is an increase of 4% from the last quarter at 32% net debt to EBITDA was seven one times, a slight increase from $6 eight in Q1 and consistent relative to the second quarter of 'twenty for the increase in granites key leverage ratios is primarily due to the classification.

<unk> of the five assets as held for sale. If they are excluded from the investment property values, resulting in a decrease in the denominator of the net leverage ratio.

Teresa Neto: In addition, Granite has increased unsecured debt due to drawing on the credit facility to fund repurchases of units under the NCIB, resulting in an outstanding balance of CAD 91 million at the end of Q2. Granite expects these ratios to normalize lower when asset sales are completed. Our liquidity is approximately CAD 1 billion, currently representing cash on hand of about CAD 86 million and the undrawn operating line of CAD 914 million. As of today, Granite has CAD 95 million drawn on the credit facility and CAD 2.4 million in letters of credit outstanding. We do expect to reduce the outstanding balance on the credit facility throughout 2025 with free cash flow from operations, barring any other major transactions.

In addition, granite has increased unsecured debt due to drawing on the credit facility to fund repurchases of units under the NCI be resulting in an outstanding balance of $91 million at the end of the second quarter.

Granite expects these ratios to normalize lower when asset sales are completed.

Our liquidity is approximately $1 billion currently representing cash on hand of about $86 million and the Undrawn operating line of $914 million as of today granite is $95 million drawn on the credit facility and $2 4 million in letters of credit outstanding.

We do expect to reduce the outstanding balance on its credit facilities throughout 2025 with free cash flow from operations barring any other major transactions.

Teresa Neto: As noted in our disclosures, we have been taking advantage of the significant discount to NAV, and we repurchased year to date 2.2 million units on average with unit cost of CAD 67.01 for a total consideration of about CAD 145 million. I'll turn over the call now to Kevan. Thank you.

And as noted in our disclosures, we have been taking advantage of the significant discount to NAV.

We repurchased year to date, two 2 million units on average with unit cost of $67 and <unk> for total consideration of about $145 million I'll turn over the call now to Kevin. Thank you.

Kevan Gorrie: Thanks, Teresa. Good morning, everyone. As Teresa mentioned, the Q2 results more or less were in line, obviously impacted negatively by the weakening of the US dollar in the quarter. As mentioned, excluding the negative impact of FX and favorable one-time items in Q1, Q2 was slightly ahead of Q1 with a slight drop in NOI of CAD 0.01 offset by roughly CAD 0.02 net positive impact from unit buyback activity in Q1 and Q2. As you can see from our Q2 guidance, we expect our financial performance to continue to strengthen over the remainder of the year. As shown in the MD&A, occupancy in the quarter was assisted by the listing of one of our vacant assets for sale in Indy.

Thanks, Theresa good morning, everyone.

As Teresa mentioned, the Q2 results more or less where in line, obviously impacted negatively by the weakening of the U S dollar in the quarter.

And as mentioned, excluding the negative impact of FX and favorable onetime items in the first quarter Q2 was slightly ahead of the first quarter with a slight drop in NOI of <unk> offset by roughly two said net positive impact from unit buyback activity in the first and second quarters.

And as you can see from our Q2 guidance, we expect our financial performance to continue to strengthen over the remainder of the year.

As shown in the MDA occupancy in the quarter was assisted by the listing of one of our vacant assets for sale and indeed, the new vacancy in the quarter was more than offset by strong leasing activity.

Kevan Gorrie: The new vacancy in the quarter was more than offset by strong leasing activity as the team executed on roughly 1.3 million square feet of renewals related to 2026 expiries and 1.1 million square feet of new leases since the Q1 call. These new leases are expected to contribute over CAD 10.5 million in gross rents in the portfolio in the first year. In terms of mark-to-market on renewal, we have now renewed roughly 80% of our 2025 expiries at a weighted average increase of over 40%. That excludes the new lease in Atlanta, where the team achieved an increase in rental rate of 58% over the expiring rent at the end of the Q1.

As the team executed on roughly one 3 million square feet of renewals related to 2026, Expiries and $1 1 million square feet of new leases since the first quarter call.

These new leases are expected to contribute over $10 5 million in gross rent in the portfolio in the first year.

In terms of mark to market on renewal.

We have now renewed roughly 80% of our 2025 expiries at a weighted average increase of over 40% and that excludes the new lease in Atlanta, where the team achieved an increase in rental rate of 58% over the expiring rent at the end of the first quarter.

Kevan Gorrie: In addition to the contribution from new leasing, the renewal increases that we have achieved on our 2025 expiries will also contribute strongly to further NOI growth in Q3 and Q4. To illustrate this point, the five largest renewal increases by dollar value represent roughly CAD 13 million in additional rent annually. Those five renewal increases commence in order of magnitude from largest to smallest on 1 October, on 1 January 2026, on 1 September, 1 May, and 1 August. Only one of those increases occurs in the first half of the year, and the obvious point being that the increases are significantly weighted to the latter part of the year as we have discussed on previous calls. A few comments I would make on relevant market data.

In addition to the contribution from new leasing the renewal increases that we have achieved on our 2025 Expiries will also contribute strongly to.

Further NOI growth in the third and fourth quarters too.

To illustrate this point the five largest renewal increases by dollar value represent roughly $13 million in additional rent annually.

Those five renewal increases commenced an order of magnitude from largest to smallest on October one.

On January one 2026.

On September one.

May one and August one.

So only one of those increases occurs in the first half of the year and the obvious point being that the increases are significantly weighted to the latter part of the year as we have discussed on previous calls.

A few comments I would make and relevant market data eight.

Kevan Gorrie: Eight of our 15 markets in North America reported flat or a decline in market vacancy from Q1, with Savannah and Memphis reporting the largest quarter-over-quarter increases in vacancy. The majority of our markets reported positive net absorption in Q2, with the exception of Toronto and New Jersey. The GTA was once again our weakest market in terms of demand, posting negative 900,000 sq ft in net absorption following a positive print in Q1. Dallas and Houston saw the strongest net absorption in Q2 at 5.6 and 2.7 million sq ft respectively. With respect to market asking rents, Broward County, a key submarket of the Miami market and home to our new acquisition, posted the strongest quarter-over-quarter growth in asking rent at 3.4%, followed by Nashville at 3%.

Eight of our 15 markets in North America reported flat or decline in market vacancy from the first quarter with Savannah, and Memphis reporting the largest quarter over quarter increases in vacancy.

The majority of our markets reported positive net absorption in the second quarter with the exception of Toronto in New Jersey.

The GTA was once again, our weakest market and charter demand posting negative 900000 square feet of net absorption following a positive prints in the first quarter.

Dallas and Houston saw the strongest net absorption in the second quarter at $5, six and $2 7 million square feet respectively.

With respect.

Go to market asking rents Broward County, Submarket of the Miami market and home to our new acquisition posted the strongest quarter over quarter growth in asking rent at three 4% followed by Nashville at 3%.

Kevan Gorrie: Conversely, Dallas and Toronto posted the weakest quarterly asking rent growth at negative 6.7% and 1.2% respectively. While leasing conditions continue to slowly improve across our portfolio, and our leasing performance was obviously strong in the quarter, net absorption overall remains below the 10-year average and conditions remain competitive generally. In Europe, vacancy in Germany and the Netherlands was flat to slightly below Q1 levels and remains below 5%. Similarly, market rent growth, although subdued, remained positive quarter-over-quarter and year to date in the low to mid single digits. Net absorption or take up remains healthy across both markets, with Germany and the Netherlands recording well over 10 million square feet of positive net absorption, respectively, year to date.

Conversely, Dallas and Toronto posted the weakest quarterly.

Asking rent growth a negative $6 seven and one 2% respectively.

So while leasing conditions continued to slowly improve across our portfolio.

And our leasing performance was obviously strong in the quarter net absorption overall remains below the 10 year average and conditions remain competitive generally.

In Europe vacancy in Germany, and the Netherlands was flat to slightly below first quarter levels and remains below 5%.

Similarly market rent growth or subdued remained positive quarter over quarter and year to date in the low to mid single digits.

Net absorption or take up remains healthy across both markets with Germany, and the Netherlands reporting well over 10 million square feet of positive net absorption respectively year to date.

Kevan Gorrie: For comparison, there was roughly 4.5 million square feet of positive net absorption in all of Canada over that same period. Concurrent with our Q2 results, I am once again pleased to announce the publication of our corporate sustainability or ESG+R report, which summarizes our activities and progress against targets for 2024, including now achieving roughly 50 megawatts of peak rooftop solar capacity within our portfolio, achieving green building certification on 63 properties, or roughly half of our portfolio, and being ranked first in our peer group of North American listed industrial companies for ESG performance by GRESB. Sustainability is an important area for Granite, I invite you to read a report now posted to the website. I don't have a lot of comments on our quarterly IFRS value.

For comparison, there was roughly $4 5 million square feet of positive net absorption in all of Canada over that same period.

Concurrent with our second quarter results.

I am once again pleased to announce the publication of our corporate sustainability or ESG, plus our report, which summarizes our activities and progress against targets for 2024, including now achieving roughly 50 megawatts peak rooftop solar capacity within our portfolio achieving.

Achieving green building certification on 63 properties are roughly half of our portfolio.

And being ranked first in our peer group of North American listed industrial companies for ESG performance bike Rusty.

Sustainability is an important area for granite and I invite you to read a report now posted to the website.

I don't have a lot of comments on our quarterly <unk> value as Teresa mentioned, the roughly $70 million positive impact of leasing activity rent growth and the addition of two new assets in Florida was more than offset by the negative impact of FX, primarily are all related to the sniff.

Kevan Gorrie: As Teresa mentioned, roughly CAD 70 million positive impact of leasing activity, rent growth, and the addition of 2 new assets in Florida was more than offset by the negative impact of FX primarily or all related to the significant weakening of the US dollar versus the Canadian dollar since the end of the Q1. Moving on to capital allocation. The list of assets held for sale, combined with the announcement of our new acquisition in the Miami market and our NCIB activity, reflect our priorities as a company to fund strategic acquisitions, our build to suit development program, and unit buybacks on an opportunistic basis to retain cash in the sale of select non-core assets.

Significant weakening of the U S dollar versus the Canadian dollar since the end of the first quarter.

Moving on to capital allocation.

List of assets held for sale combined with the announcement of our new acquisition in the Miami market and are in CIB activity reflect our priorities as a company to fund strategic acquisitions.

Our build to suit development program and unit buybacks on an opportunistic basis to retain cash and the sale of select non core assets.

Kevan Gorrie: We have obviously used our line of credit to fund the new acquisition and NCIB activity in the near term, but the objective remains to fund our growth on a debt-neutral basis, thereby maintaining our conservative capital ratios and the strength of our balance sheet. At this time, I don't wish to telegraph individual target markets for new acquisitions, but I can tell you that the team is currently active on new opportunities. As I have commented in the past, we will look to deploy capital in select core markets in Europe, Canada, and the US. In closing, the team's achievements on new leasing and renewals year to date have positioned us very well for continued strong organic growth in the coming quarters.

We have obviously use our line of credit to fund the new acquisition and NCI be activity in the near term.

But the objective remains to fund our growth and the debt neutral basis.

Thereby maintaining a conservative capital ratios and the strength of our balance sheet.

At this time I don't wish to telegraph individual market target markets for new acquisitions, but I can tell you that the team is currently active on new opportunities and as a.

As I have commented in the past, we will look to deploy capital in select core markets in Europe, Canada and the U S.

In closing the team's achievements on new leasing and renewals year to date have positioned us very well for continued strong organic growth in the coming quarters.

Kevan Gorrie: As evidenced by our announced acquisition and list of assets held for sale, successful execution of the disposition program and effective capital redeployment will be a focus of ours for the remainder of this year and into 2026. On that, I will turn the call over for questions.

As evidenced by our announced acquisition and list of assets held for sale.

Successful execution of the disposition program and effective capital redeployment will be a focus of ours for the remainder of this year and into 2026.

And on that I will turn the call over for questions.

Operator: Thank you. Ladies and gentlemen, we will now begin the question-and-answer session. Should you have a question, please press the star followed by the one on your touchtone phone. Should you wish to cancel your request, please press the star followed by the two. Our first question is from Fred Blondeau from Green Street. Your line is now open.

Thank you ladies and gentlemen, we will now begin the question and answer session should you have a question. Please press the star followed by the one I know touched on filings should you wish to cancel your request. Please press the star followed by the tail.

Our first question is from Fred <unk>.

Green Street. Your line is now open.

Fred Blondeau: Thank you. Good morning. I have two questions from me for Kevin. Kevin, you touched on the capital allocation. Just to clarify, is it fair to say that you seem to be a little bit more, your appetite has improved in terms of acquisitions on an opportunistic basis. Does that mean that, you know, you'll be focusing a bit more on acquisitions versus the NCIB, or your view will remain quite balanced between the two at this stage?

Thank you and good morning, two questions from me for Kevin.

Let me touch on the capital allocation just to clarify.

Is it fair to say that you seem to be a little bit more.

Hypotyposis improve in terms of acquisitions.

On an opportunistic basis does that mean that.

You'll be focusing a bit more on acquisitions versus NCI D or your view will remain quite balanced between the two at this stage.

Kevan Gorrie: Well, I think the NCIB activity depends very much on the, on the price of the units, to be fair. On the acquisition side, we do expect to be more active. I think we find pricing for core assets and developments in our target markets to be attractive. I think we find the spread between those markets or tier one markets and markets that we're in, such as Indy and Columbus, that spread is quite low, and I think it's lower than we've seen in many years. I think it's a good opportunity for us to continue our rotation into those core markets, the ones that we're targeting. I do expect us to be active on that.

Well I think the NCI activity depends very much on the price of the units to be fair.

On the acquisition side, we do expect to be more active I think we find pricing for core assets and developments in our target markets to be attractive.

And I think we find the spread between those markets are a tier one market and markets that we're in such as India and Columbus to be quite that spread is quite low and I think it is lower than we've seen in many years. So I think it's a good opportunity for us to continue our rotation into those core markets. The ones that we are targeting <unk>.

<unk> to be active on that hopefully we're not active on the inside.

Kevan Gorrie: Hopefully, we're not active on the NCIB based on the price of the units, but it always remains an option, if we find pricing to be very compelling on the NCIB side.

Based on the price of the units, but there are always remains an option.

If we find pricing could be very compelling on the on the <unk> side.

Fred Blondeau: Got it. Thank you. Secondly, is it fair to say that Germany is performing below your expectations so far this year? Or you feel like the underperformance is related to more, you know, short-term specific factors in the country?

Got it thank you.

Secondly.

Is it fair to say that Germany, performing below your expectations.

So far this year.

Or you feel like the under performance is related to more short term specific factors in there.

Country.

Kevan Gorrie: Well, we don't have a lot of leasing activity to point to, Fred, to see that it's underperforming our expectations. I think it has slowed, activity has slowed, but vacancy has sort of held in there in a very low level. We continue to see market rent growth, which is more than we can say for a lot of markets, including the GTA. If you were to characterize Germany as being weak, I would wonder what your view of the Toronto market would be.

Well its we don't have a lot of leasing activity to point to see that at an underperforming our expectations. I think it's I think it has slowed activity has slowed but they can see as sort of held in there in a very low level and we continue to see market rent growth.

Which is more than we can say for a lot of markets, including the GTA. So.

If you if you were to characterize Germany as being weak I would wonder what your view of the.

The Toronto market would be.

Fred Blondeau: Mm-hmm. That's great. Thank you.

That's great. Thank you.

Okay.

Operator: Thank you. Your next question is from Sam Damiani from TD Cowen. Your line is now open.

Thank you and your next question is from Sam Damiani from TD Cowen. Your line is now open.

Sam Damiani: Thank you. Good morning, everyone. Kevin, just, you know, with the big surge in leasing this quarter, you know, 3 sizable leases, covering some vacant space, we wanted you to touch on what's changed. What allowed you to sort of come to terms with these 3 tenants, that really wasn't available, you know, 6, 12 months ago?

Thank you and good morning, everyone, Kevin just with the big surge in leasing this quarter three sizable leases co.

Covering some vacant space I Wonder if you can just.

Okay.

Touch on what's changed.

What allowed you to sort of come to terms with these three tenants.

Really wasn't wasn't available 612 months ago.

Kevan Gorrie: I don't know, Sam Damiani, that there's any clear catalyst that I can point to. I mean, as we've said, we have seen activity pick up across our portfolio. I think what we're finally starting to see is maybe we're seeing more activity than other portfolios out there, which isn't really a shock to us. As to why they're actually signing leases today, I can't point to a clear one. I just think, we were due certainly for a few of these leases. I can tell you on the lease in Louisville, there were multiple prospects on that. I think what we're finally starting to see is the delays in leasing decisions that tenants are making, they can no longer delay those decisions, and they're moving forward.

I don't know Sam that Theres any clear catalysts that I can point to I mean, as we've said we have seen activity pick up across our portfolio and I think what we're finally starting to see is maybe we're seeing more activity than other portfolios out there which isn't.

Really a shock to us.

As to why they're actually signing leases today.

I can't point to a clear one I just think.

We reduce certainly for a few of these leases I can tell you on the recent Louisville, there were multiple prospects on that so I think what we're finally starting to see is as the delays and leasing decisions that tenants are making they can no longer delay those decisions.

And they're moving forward and so I would say right now we probably have another 300 to 350000 feet under lease negotiation. So the activity continues to be good but I will tell you tenants continue to be cautious.

Kevan Gorrie: I would say right now, we probably have another 300 to 350,000 feet under lease negotiation. The activity continues to be good. I will tell you, tenants continue to be cautious. Not that you're asking about tariffs, particularly, but when we look at our US portfolio, I think there's a general consensus that tariffs will ultimately be good for the US portfolio because it is going to drive more US production, domestic US production. I think right now there remains an uncertainty about what the rules of the game really are, and we can see that. We can see that tenants probably need more space. They're just not sure how to proceed with the uncertainty around what these tariffs are going to look like from various countries. That's where we are today.

And not that you are asking about tariffs, particularly but when we look at our U S portfolio I think.

I think there is a general consensus that.

Tariffs will ultimately be good for the U S portfolio, because it is going to drive more U S production domestic U S production.

But I think right now there remains uncertainty about what the rules of the game really are and we can see that we can see the tenant probably need more space. They are just not sure. How to proceed with the uncertainty around what these tariffs are going to look like from various countries. So that's where we are today.

Kevan Gorrie: I think slow and steady improvement in the market is what we would look to over the coming quarters overall.

And I think I think slow and steady improvement in the market is what we would look to over the coming quarters overall.

Kevan Gorrie: I think slow and steady improvement in the market is what we would look to over the coming quarters overall.

Sam Damiani: That's great. Would you say the rents that you achieved with these three leases, you know, kind of in line with what you were expecting, you know, again, 6, 12 months ago, or?

That's great and would you say the rents that you achieved with these three leases.

Kind of in line with what you were expecting.

612 months ago or.

Kevan Gorrie: I think they were stronger.

I think they were stronger.

Stronger yes.

Sam Damiani: Yeah. That's great. Okay, maybe just moving on the, I guess, the outlook for the year-end committed occupancy. You know, it's been a lot of change since the last quarter with assets held for sale and this leasing. How would you characterize, you know, your or update your outlook for year-end committed occupancy?

Okay, maybe just moving on on the <unk>.

I guess the outlook for the year and committed occupancy it's been a lot of change since the last quarter with the assets held for sale in this leasing.

How would you how would you characterize your or update your outlook for yearend committed occupancy.

Kevan Gorrie: I think we would expect our occupancy to be between 96.5% and 97% at the end of the year, and so roughly 100 basis points over what we were expecting at the end of Q1.

I think we would expect our occupancy to be between 96, 5% and 97% at the end of the year and so roughly 100 basis points over what we what we were expecting at the end of the first quarter.

Sam Damiani: Sorry, that's committed? How much of that would be, you know...

And sorry, that's committed.

How much of that would be would be.

Kevan Gorrie: Most of it.

Most of the industry.

Sam Damiani: occupancy for next year.

Kevan Gorrie: Most of it. Yeah, I would say most of it would be in 2025.

Yes, I would say most of it would be in 2025.

Sam Damiani: Okay, perfect. Okay. Thank you. I'll turn it back.

Okay perfect. Okay. Thank you and I'll turn it back.

Okay.

Operator: Thank you. Your next question is from Mike Markidis from BMO. Your lines are open.

Thank you and your next question is from Mike <unk> from BMO. Your line is now open.

Mike Markidis: Thanks, operator. Just with the $300 and some odd million of assets held for sale, I think they're fully occupied or close to it, and most of them in the US. Are you able to give us some sort of range of income attached to those assets?

Thanks, operator.

Just what the 300 and some odd million dollars of assets held for sale I think there I think the fully occupied or close to it.

And most of them in the U S are you able to give us some sort of brain income attached to those assets.

Kevan Gorrie: The majority are occupied, just the one is vacant. There's two assets in Indy, two in Columbus, one in the Netherlands. The income that's attached to those-

Oh the majority are occupied just the one is bacon Sears to two assets in India two in Columbus, one in the Netherlands.

The income that's attached to the yes, we have.

Teresa Neto: Yeah, we have a schedule in the MD&A. It's CAD 14.8 million of annualized revenue associated with those assets.

Scheduled near the end of its $14 8 million of annualized revenue associated with those assets great. Thanks.

Mike Markidis: Great. Thanks. Oh, perfect. I missed that. Thank you. Okay, just Kevan, with your respect to comment, obviously you don't want to get into the markets, et cetera, that you're targeting for acquisitions and the team seems active. Are you able to give us sort of like a quantum of opportunities that's being considered or underwritten today?

Thank you.

Okay, and just Kevin with your respect to comment obviously don't want to get into the markets et cetera that youre targeting for acquisitions on the teams that are you able to give us sort of like a quantum.

Quantum of opportunities Thats being considered are underwritten today.

Kevan Gorrie: We have roughly CAD 65 million in negotiation right now, both in Europe and probably this would be a guess right now, Mike, but I would say probably another CAD 100 million to 150 million that we're pursuing. Early days.

We have roughly $65 million Canadian.

Negotiation right now both in Europe.

And probably I would.

It would be a guess right now, Mike, but I would say, probably another $100 million to $150 million.

But were pursuing early days.

Mike Markidis: Okay. Got it. Spec development, I guess being officer, not spec development, build to suit development, I should say. I know you've got the one project in Houston that's underway. Is it reasonable to think or like are you close to getting anything else done on the development side, on the build to suit, or is that something that just, it'll enclose?

Okay got it and then.

Spec development, I guess being circumspect about one build to suit developments I should say I know you've got the one project in Houston much.

That's underway.

It reasonable to think like are you close to getting anything else done on the on the developments.

Build to suit or is that something that just closed.

Kevan Gorrie: We have activity on our Brantford site, and we have some further activity on our Houston site, but early days, so nothing that's close. Maybe we'll have a little bit more information on our Q3 call.

We are we have activity on our Bradford site and we have some further activity on our Houston site, but early days. So nothing thats close maybe we'll have a little bit more information on our third quarter call.

Mike Markidis: Okay. That's all I have. Thanks so much.

Okay.

That's all I have thanks, so much.

Operator: Thank you. Your next question is from Mark Rothschild from Canaccord Genuity. Your line is now open.

Thank you and your next question is from Mark <unk> from Canaccord Genuity. Your line is now open.

Mark Rothschild: Thanks. Hi, everyone. Kevan, I heard your comment just now from an earlier question on tariffs and some positive. There is some positive leasing news that you had. Your tone overall maybe just sounds a bit cautious still. I recognize that market vacancy in the US has increased. There's so much news about companies expanding operations in the US. Are we possibly heading into a time where fundamentals can improve meaningfully in the US, and is that something you think about as you consider capital allocation decisions?

Thanks, Dan Taiwan.

Kevin I heard your comments just now.

An earlier question on tariffs and some positive there is some positive leasing news that you had for your tone overall, maybe just sounds a bit cautious bill I recognize that market vacancy in the U S has increased.

There's so much news about companies expanding operations in the U S.

Possibly heading into a time on fundamentals can improve meaningfully in the U S is that something you think about as you consider capital allocation decisions.

Kevan Gorrie: Yeah, I think what you're hearing, Mark, is a fair comment. I think our leasing has been strong. Leasing activity and traffic in our portfolio is positive, but it's against a more cautious backdrop in the market, and that's what I'm hoping comes through. I think our portfolio is performing well, probably better than most in the market. In terms of the tariffs, I have to think that once the agreements are signed and people understand what the tariffs are, and hopefully they're as low as possible. I think what people are waiting for is just certainty around what the deals are. I think that that will...

Yes, I think what you are hearing Mark is it fair comment I think our leasing has been strong leasing activity leasing activity and traffic in our portfolio.

Is positive, but it's against a more cautious backdrop in the market and Thats, what im hoping comes through I think our portfolio is performing well.

Better than most in the market.

In terms of the tariffs.

Thank you.

Once the agreements are signed and people understand what the tariffs are and hopefully they're as low as possible, but I think what people are waiting for is just certainty around what the deals are and I think that that will I don't want to say it'll Alicia significant.

Kevan Gorrie: I don't wanna say it'll unleash a significant, you know, movement in leasing, but I think it will be a positive catalyst for the leasing market once the uncertainty around the impact, the extent of the tariffs is removed.

Movement in leasing, but I think it will be a positive catalyst for the leasing market once the once that certainty once the uncertainty around the impact the extent of the tariffs.

Moved.

Mark Rothschild: Maybe this just isn't the type of business you're in, but are you seeing opportunities to buy assets with vacancy with a more positive outlook, or is it just that's not your core business?

And maybe this just isn't the type of business you're in but are you seeing opportunities to buy assets with vacancy with a more positive outlook or is it just that's not your core business.

Kevan Gorrie: I think, I think that's on the table for us to buy a vacant asset, and we have pursued those at the right price. I mean, cost basis remains probably the most important thing that we pay attention to. Obviously, location, quality of asset. It has to be in a market that we like. That's definitely on the, on the table for us. I will tell you, to your point, we can't seem to get there on pricing because sellers probably have the same level of confidence in the future of the market that we do. The opportunities are there. We just can't seem to shake them loose at pricing that we want, which is not a surprise to us. By the way, you know, one of the assets we have for sale has vacancy.

Oh, I think I think that's on the table for us to buy a vacant asset and we have pursued dose.

At the right price I mean cost basis remains probably the most important thing that we pay attention to obviously location quality of asset has to be in a market that we like.

That's definitely on the table for us, but I will tell you to your point.

We can't seem to get there on pricing because sellers probably have the same level of confidence in the future of the market that we do so.

The opportunities are there, we just can't seem to shake them loose of pricing that we want which is not a surprise to us and by the way one of the assets. We have for sale has vacancy we're going to take the same approach to that I don't think were interested in any sort of compromise sale because it is vacant we have enough confidence in.

Kevan Gorrie: We're going to take the same approach to that. I don't think we're interested in any sort of compromised sale because it's vacant. We have enough confidence in the market that we're gonna want to achieve pricing on the sell side as well.

And the market that we're going to want to achieve pricing on the sell side as well.

Mark Rothschild: Okay, I appreciate that. Thank you so much.

Okay I appreciate that thank you so much.

Operator: Thank you. Your next question is from Kyle Stanley from Desjardins Capital Markets. Your line is now open.

Thank you and your next question is from Kyle Stanley from Davidson. Your line is now open.

Kyle Stanley: Thanks. Morning, everyone. One of your US peers earlier in earnings season kind of mentioned an element of FOMO, it seems like, from occupiers that may have been contributing to the recent pickup in demand for space. Just love to hear your thoughts on that comment and, you know, could that help explain maybe the more recent leasing demand you've seen maybe since June?

Good morning, everyone.

One of your U S peers earlier in earnings season kind of mentioned an element of fomo. It seems like from occupiers that may have been contributing to the recent pickup in demand for space just.

Just love to hear your thoughts on that comment and could that help explain maybe the more recent leasing demand you've seen may be since since June.

Kevan Gorrie: Well, I think we saw it in real time, Kyle, in Louisville, where we actually had a competition for the space, and I think that advanced the timeline on it. Yes, and I also think, you know, an important element of all of this that I think gets overlooked is, you know, we renewed over 90% of our expiries last year. This year, we will renew between 80% and 85%. I hope everyone appreciates that those are very strong numbers. I think one of the things that we are seeing in the market is, although a lot of tenants may be hesitant to expand their space, they certainly don't wanna lose it. I think part of it is, and this is becoming a bigger factor in the US, is fear of losing out on workforce.

Well I think we saw it in real time, Kyle in Louisville, where we actually had a comp competition for the space and I think that advance the timeline on it so.

Yes, and I also think.

An important element of all of this that I think gets overlooked is we renewed over 90% of our Expiries last year. This year, we will renew between 80 and 85% and I hope everyone appreciates that those are very strong numbers and I think one of the things that we are seeing in the market is.

Though.

A lot of tenants may be hesitant to expand their space. They certainly don't want to lose it and I think part of it is and this is becoming a bigger factor in the U S is fear of losing out on workforce.

Kevan Gorrie: That is becoming a really important element for tenants. I think that will lead into that sort of FOMO comment that you're referring to. We expect to see that probably later this year or early into 2026 for sure.

And so that is becoming a really important element for tenants and I think.

I think that will lead into that sort of formal comment that you're.

You're referring to we expect to see that probably later this year early into 2026 for sure.

Kyle Stanley: Okay. No, that's very helpful context. Just with regards to the Louisville asset, I think going back to, you know, when it was vacated, I believe in 2023, you'd highlighted a potential, you know, 20% gain to lease opportunity. Obviously, a lot's changed in the market since then. Be curious to know if you can disclose, you know, how did that work?

Okay.

Very helpful context, I'm, just with regards to the Louisville asset I think going back to when it was vacated I believe in 2023, you'd highlighted a potential 20% gain to lease opportunity obviously, a lot's changed in the market. Since then be curious to know if you can disclose.

How did that work.

Kevan Gorrie: Yeah, I think we were right in line with that.

Yes, I think we were right in line with that.

Kyle Stanley: Okay. That's encouraging.

Okay, that's encouraging.

Kevan Gorrie: Yes. I can tell you we achieved better rents than we thought at the time.

Tell you.

I can tell you we achieved.

We achieved better rents than we thought at the time.

Kyle Stanley: Okay, great. Just the last one, obviously looking at your assets held for sale, you disclosed kind of the locations of them. What's the private market like? You know, what's demand like for those types of assets today? You know, who are the buyers that are active?

Okay great.

And then just the last one obviously looking at your assets held for sale.

You disclosed kind of the locations of them.

What's the private market like.

What's demand like for those types of assets today.

And who are the buyers that are active.

Kevan Gorrie: Well, I think, going out to the market on these, we have seen a lot of interest coming in, i.e., signing NDAs. The level of activity on the NDAs has been high, which would suggest to us that there's a fair amount of capital on the sidelines looking for assets in these markets. We think that it's strong. We will see. I think we're pretty disciplined on pricing both ways. There's pricing that we want to achieve here. So far the level of interest that's come in on those assets has been strong.

Well I think.

Going out to the market on these we have seen.

A lot of.

Interest coming in I E signing NDA. So the level of activity on the NDA has been high which would suggest to us that there's a fair amount of capital on the sidelines looking for assets in these markets. So we think that is strong we will see I think we're pretty disciplined on pricing both ways.

So there is pricing that we want to achieve here.

But so far the level of interest that's come in on those assets has been has been strong.

Kyle Stanley: Okay. No, very helpful. Thanks for that. I'll turn it back.

Okay very helpful. Thanks, a lot I'll turn it back.

Operator: Thank you. Your next question is from Brad Sturges from Raymond James. Your line is now open.

Thank you and your next question is from Brad Sturges from Raymond James Your line is now open.

Brad Sturges: Hey, good morning. Just following up on Kyle's question there, I think last quarter you talked about even being open to selling in Toronto. I guess at this point it's more a function of where you're seeing the best demand with these five assets. Is there something you're thinking around the softness in the Toronto market that or there's leasing that needs to get done that would make it maybe less of an ideal time to maybe sell a little bit out of Toronto right now?

Hey, good morning.

Just following up on Karl's question there just.

I think last quarter, you talked about even being open to selling.

In Toronto I guess at this point, it's more a function of where youre seeing the best demand with these five assets or.

Is there something youre thinking around the softness in the China market that or there is leasing that needs to get done that would make it maybe a less than ideal time to maybe sell a little bit of trouble right now.

Kevan Gorrie: Yeah. I mean, we have assets listed for sale or lease in the Toronto market, and we have assets in Europe that we're working through leasing, et cetera, we would consider a sale on. These are ones that we have identified for a formal marketing process and moving forward with. Part of it's market concentration. You know, we've talked about rotation in markets we wanna be in and markets where we could probably afford to trim and free up some capital for deployment. That's why these ones were sort of chosen as ones to formally market and which we expect to dispose of within the next 12 months.

Yes, I mean, we have assets listed for sale or lease in the Toronto market and we have assets in Europe.

We're working through leasing et cetera, we would consider a sale on either ones that we have identified for a formal marketing process and moving forward with part of its market concentration we've talked about rotation in markets. We want at the end of markets, where we could probably.

Fourth the tremor.

And free up some capital for deployment. So thats why these ones were sort of chosen.

As wants to formally market.

Which we expect to dispose off within the next 12 months that doesn't mean that there aren't other noncore assets within our portfolio that we're in discussions on or may sell or at least consider selling.

Kevan Gorrie: That doesn't mean that there aren't other non-core assets within our portfolio that we're in discussions on or may sell or at least consider selling, that are not listed as assets held for sale.

That are not listed as assets held for sale.

Brad Sturges: I guess, to expand the program further, you would need to see line of sight on the acquisition side or use of capital for that to expand beyond what you've got today.

I guess to expand the program first of all you would need to see line of sight on the acquisition side or use of capital for that to expand beyond what.

Kevan Gorrie: We're always. Yeah, we're always trying to balance the timing of it. As you can see, we didn't hesitate to use the line of credit on the acquisition in Florida, nor did we hesitate to use the line of credit on the NCIB activity. Now, there is a limit to that, but we're retaining cash, so we have confidence, as Teresa mentioned, we will pay down that line of credit. We're trying to balance sort of assets going out and assets coming in. It's never easy to sort of balance those. I wouldn't say...

We're always trying to balance the timing of it but as you can see we didnt hesitate to use the line of credit on the acquisition in Florida, nor do we hesitate to use a line of credit on the NCI activity now there is a limit to that but we're retaining cash. So we have confidence as Teresa mentioned, we will pay down that line of credit.

We're trying to balance sort of assets.

Going out and assets coming in.

But it's never easy to sort of balance those so I wouldn't say I would say that the pace of disposition. Our successful disposition will be a consideration for us, but I don't think we would hesitate to make the right acquisition at the right time, even if its a portfolio and use a line of credit to to execute on.

Kevan Gorrie: I would say that the pace of disposition or successful disposition will be a consideration for us. I don't think we would hesitate to make the right acquisition at the right time, even if it's a portfolio, and use the line of credit to execute on that. If that answers your question, Brad.

If that answers your question Brad Yes.

Brad Sturges: Yeah. Yeah. Last question. Just circling back to Louisville real quick. I think that that 20% gap that you kinda highlighted, is that a gross basis, or how would that look like on a net effect? Would it be similar? Like, would it have been more of like a standardized TI package that would have been used?

Last question, just circling back to Louisville, real quick I think that that 20% gap.

Kind of highlighted is that a gross basis or how would that look like on a net effect it would it be similar.

There have been more like a standardized ti package that would have been used.

Kevan Gorrie: Well, the one thing I will say, if you're talking about pre-rent and that, I don't wanna get into the specifics of it. If you look at the lease term in terms of months, you can kinda get a guess. You can kinda guess and see the amount of free rent that's in the term of the lease, and it gives you an idea. In this case, I mean, we bought this building occupied, so it's hard for us to look back and see what the net effect of rent was when the deal was first done, which is the way you really should do it to compare apples to apples.

Well the one thing I will say, if you're talking about free rent in that I don't want to get into the specifics of it but if you look at the lease term in terms of months you can kind of get a guess you can kind of guess and see the amount of free rent. That's in the that's in the terminal lease and it gives you an idea but in this case I mean, we bought.

What this building.

Occupied so it's hard for us to look back and see what the net effective rent was when the deal first one which is the way you really should do it to compare apples to apples. So I don't have an answer for you on that but I would just say that I think that the.

Kevan Gorrie: I don't have an answer for you on that, but I would just say that I think that the net effect of rent over the expired rent is very close to the rent because I think that the free rent within the term was quite nominal.

The net effective rent over the expiring rent is very close to the to the rent because I think that the free rent within the term was quite normal.

Brad Sturges: Okay. That helps. Thank you.

Okay.

Thank you.

Okay.

Kevan Gorrie: Thanks.

Operator: Thank you. Your next question is from Himanshu Gupta from Deutsche Bank. Your line is now open.

Thank you and your next question is from Himanshu Gupta from Scotiabank. Your line is now open.

Himanshu Gupta: Thank you and good morning. Just looking at the acquisitions in Florida, going in cap rate of 5, how do you get that 15% increase you mentioned in the next 2 years? I mean, considering the board is like 6 to 7 years.

Thank you and good morning.

So just look at the acquisitions in Florida.

Going in cap rate of five.

How do you get that 15% increase you mentioned in the next two years.

I think the board is it like six to seven years.

Kevan Gorrie: Yeah. There's contractual escalations built into the leases, and that's what gets us up in the next couple of years.

Yes, theres contractual escalations built into the leases and Thats what gets us up in the next couple of years.

Himanshu Gupta: Okay. I mean, bigger picture-wise, as you resume your acquisition program, is 5 to 6 cap rates going in is what you're targeting? I mean, anything in mind there?

Okay.

And then.

And bigger picture wise as you resume your acquisition program.

Is 5% to six cap rates going in is what you are targeting.

And the team behind it.

Kevan Gorrie: Well, I don't think the going-in cap rate is sort of the most important thing that we're targeting. We really are more long-term IRR-driven. I think if you were to use a number, I think 5% to 6% would be fair overall.

Well I.

I don't think the going in cap rate as the.

Is sort of the.

The most important thing that we're that we're targeting we really are more long term IRR driven but I think if you were to use a number I think 5% to 6% would be fair.

Overall.

Himanshu Gupta: Okay.

Kevan Gorrie: Yeah.

Okay.

Himanshu Gupta: For the CAD 300 million dispositions, sub-5 cap rate on your in-place NOI, fair to say that? I mean, based on your CAD 14.8 million in-place NOI, something in that range.

For the $300 million dispositions.

Cascade on your in place NOI Patency It back and then based on your $14 $8 million in place NOI, so something in that range.

Kevan Gorrie: I think that that's fair. Yeah.

Yes, I think Thats fair.

Brad Sturges: Yeah, the math is 4.8.

Teresa Neto: Yeah, the math is 4.8.

Yes.

$4 eight okay.

Kevan Gorrie: Yeah.

Brad Sturges: Yeah.

Teresa Neto: Yeah.

Himanshu Gupta: Okay. Okay. Fair enough.

Okay. Okay.

Brad Sturges: Thank you.

Teresa Neto: Thank you.

Himanshu Gupta: Yeah. No, thank you. Kevan Gorrie, on the acquisition program, coming back there, I mean, as you resume your program here, are there or were there any discussions to go for, you know, like a relatively smaller bay assets or multi-tenant properties?

And then yeah no. Thank you and then Kevin on the acquisition program coming back there.

And as you resume your program here.

Or were there any discussions to go forward.

The smaller the asset so a multi tenant property.

Kevan Gorrie: Yes. I think we're always looking at what best fits our portfolio. In terms of small bay, no. I can tell you that that is something that is not on our radar. Now, something that's... Well, I think infill is used rather irresponsibly at times. The smaller to mid bay, yes, as long as it's logistics-focused, we have. I will tell you the, the small bay for us has a lot of, and I've talked about this many times before, has a lot of concerns for us and a lot of drawbacks. That is not on our radar, that sort of small multi. Anything that's small to, sorry, mid bay, whether it's a multi or a single, as long as it's really functional logistics that's well-located in our markets, is on our radar.

Yes, I think we're always looking at what best fits our portfolio in terms of small bay.

I can tell you got that is something that is not on our radar now something thats.

I think infill used rather irresponsibly at times, but.

The smaller to mid day, yes, as long as this logistics focused.

We have I will tell you the small base for US has a lot of and I've talked about this many times before.

A lot of concerns for us and a lot of drawbacks and so that is not on our radar that sort of small multi.

Anything that's that small to mid day.

Whether it's multi or single as long as it's really functional logistics, that's well located in our markets is on our radar.

Himanshu Gupta: Okay, fair enough. Then just turning to Indianapolis lease, which got done, did you demise that second property? I think only a portion of that, you know, 290,000 square feet got done. That was the idea?

Okay fair enough.

And then just turning to Indianapolis lease, which got done.

Did you device that second property and I think only a portion of that.

The 90000 square feet Goodbye.

That's the idea.

Kevan Gorrie: Yeah, yep, 290,000 feet, which is being demised as we speak. I think we listed 178 of the 290, which I think our original underwriting, we had 2 tenants in there. This is very much in line with our original pro forma and expectations for the building.

Yes, 290000 feet, which is being demised as we speak and I think we listed 178 of the $2 98, which is which I think our original underwriting we have two tenants in there. So this is this is very much in line with our original pro forma and expectations for the building.

Himanshu Gupta: For the bigger piece, and you're, you know, exploring demising that property too as well, the bigger property next door?

And for the bigger piece and your clothing devising that property to us the biggest property next door.

Kevan Gorrie: Yeah. We have responded to RFPs for the entire building. We've responded to RFPs for a portion of the building. There is activity on the building. I don't wanna say what size range right now, but we are open to demising the large one as well. That probably would've been in our original pro forma as well.

Yes, we have responded to rfps for the entire building we've responded to rfps for a portion of the building. So there are there is activity on the building I don't want to say what size range right now, but we are open to devising the large one as well.

And that probably would've been in our original pro forma as well.

Himanshu Gupta: Okay. Okay. Thank you. Maybe just one last quick question here. I mean, 2025 lease expiries is almost done now. I mean, as you shift focus on 2026, any space expected to come back or, you know, any chunky deals you're expecting?

Okay. Okay. Thank you maybe just one last quick question here on.

In 2025 lease Expiries is almost done now.

I mean as you shift focus on 2026 any space expected to come back or any chunky.

Kevan Gorrie: Yeah. I think we've talked about the one in Pennsylvania, 750,000 feet with Samsung. We are expecting that to come back to us. I think it's in the latter part of 2026. I think we discussed it on the previous call. It's a very strong location on I-78, within a 2.5-hour drive of what? New York, Philly, Baltimore, Washington. That one we are expecting to come back. Again, we're sort of running the leasing process right now, and we expect there to be some decent activity over the coming quarters.

Yes, I think as we've talked about the one in Pennsylvania 750000 feet with Samsung we are expecting that to come back to us I think it's in the latter part of 2026.

But I think we discussed it on previous calls a very strong location on <unk> 78.

Within a two and a half hour drive of what New York Philly Baltimore, Washington.

So that one we are expecting to come back and.

Again, we're sort of running the leasing process right now.

We expect there to be some decent activity over the coming quarters.

Himanshu Gupta: Awesome. Thank you, and I'll jump back. Thank you.

Awesome, Thank you and thank.

Thank you.

Alright. Thank you once again should you have a question. Please press star one.

Operator: Thank you. Once again, should you have a question, please press star one. Your next question is from Matt Kornack from National Bank Financial. Your line is now open.

And your next question is from Matt <unk> from National Bank Financial Your line is now open.

Matt Kornack: Hey, guys. Can you just provide a bridge as to kind of where in place and like rent paying occupancy would be today to kind of your 96% to 97% end of year? It sounds like there's still a lot to be captured potentially into 2026 on that front as well. I'm just trying to gauge kind of how it comes in on an economic basis versus a straight line basis, because it's pretty big number of GLA.

Hey, guys.

Can you just provide a bridge as to kind of were in place and like rent paying occupancy would be today to kind of your 96% to 97% end of year. It sounds like there's still a lot to be captured potentially into 2026 on that front as well I'm just trying to gauge kind of how it can.

Comes in on an economic basis versus a straight line basis, because it's a pretty big number GLA.

Kevan Gorrie: I'm trying to understand the question. Sorry, Matt, I'm just looking at it, but.

I'm trying to understand the question sorry mountain just looking at as well.

Teresa Neto: Well, I think we have committed occupancy. I think he's trying to get at, like, where is the free rent?

I think we have committed in occupancy I think was trying to get at like whereas the fin claims.

Matt Kornack: In place, like.

Sure.

Like I guess.

Teresa Neto: Yeah. Like, I guess, by the end of the year, we're at least gonna be at 96.5% in place, right?

By the end of the year or at least going to be at 96, 5% in place right.

Kevan Gorrie: Yeah.

Teresa Neto: Like, we know that for sure.

Know that for sure.

Kevan Gorrie: No, no. By Q4.

No by the fourth quarter, Yes, that's what I say before the end of the year, but the fourth quarter, sorry by the fourth quarter, we will see at 96, 5%.

Teresa Neto: Yeah. That's what I'm saying, before the end of the year. Sorry, by Q4, we will hit 96.5%. Yeah.

Yes.

Matt Kornack: Okay. I mean.

Okay and then.

Teresa Neto: Yeah.

I mean.

Matt Kornack: The full benefit will be felt in call it 2026.

So the full benefit will be felt.

Kevan Gorrie: Matt, like, if I could, like I said, like I pointed out before, look at the lease term in months, and you get a sense of the free rent.

In Colorado.

Kevan Gorrie: Matt, like, if I could, like I said, like I pointed out before, look at the lease term in months, and you get a sense of the free rent.

If I could like I said.

Oh before look at the lease term in months and.

And you get a sense of the free rent.

Matt Kornack: Okay. Okay, we'll do that. Needless to say, the setup is very positive for 2026 growth. Is there anything in other than the Pennsylvania asset in 2026 that you've got any concern about? Or at this point is it pretty locked? I know you haven't done much in, like, the committed for next year, but would you think that you'd get kind of in that 80% to 90% retention ratio again?

Okay.

Okay, we'll do that but needless to say.

The setup is very positive for 26 growth is there anything in other than.

So, Pennsylvania asset in 2006.

You have got any concern about her or at this point is that pretty locked I know you haven't done much in the committed.

For next year, but would you think that you would get kind of in the 80% to 90% retention ratio again.

Kevan Gorrie: Yeah. I don't wanna throw a number out there. If your question is, do we have any particular concerns? No, we don't. We know we have 750,000 fee coming back. We think the mark-to-market there is probably 15% to 20%. We're, you know, encouraged by sort of the prospects there to drive rents in the future, but don't have any specific concerns about 2026 at this time.

I don't want to throw a number out there to your question is do we have any particular concerns no.

We don't we know we have 750000 fee coming back, but we think the mark to market there is probably 15% to 20% so.

We are encouraged by sort of the prospects there to drive rents in the future, but don't have any specific concerns about 26 at this time.

Matt Kornack: I think you highlighted it last quarter and achieved a good rent spread in the US this quarter. Can you give us a sense as to kind of where mark-to-market sits for the geographies at this point or what you'd expect? I know Europe was kind of low single digits, but it sounded like there were some fixed renewal aspects there as well.

And I think you highlighted it last quarter.

And achieved a good rent spread in the U S. This quarter.

Can you give us a sense as to kind of where mark to market sits.

The geographies at this point or what you had expected I know Europe was kind of.

Low single digits, but it sounded like there were some.

Fixed renewal aspects there as well.

Kevan Gorrie: Are you talking about 2026 specifically?

Are you talking about 2026, specifically.

Matt Kornack: Maybe just in terms of the balance of 2025 and then, how 2026 is shaping up.

Maybe just in terms of the balance of 25, and then you have 26 in shaping up.

Kevan Gorrie: I don't have that for you. I think we'll make a point on the Q3 call to have more specific numbers. The only reason I'm hesitating is we've moved rent so much on these assets that I'd rather wait for another quarter and give you a better idea of our viewpoint, if that's okay.

I don't have that for you I think will make a point on the Q3 call to to have more specific numbers and only the only reason I'm hesitating is we've moved rents so much.

These assets that.

I would rather wait for another quarter and give you give you a better idea of our viewpoint.

Got it okay.

Matt Kornack: The last one for me, Toronto, like you've done well in your portfolio in the Toronto market. At this point, do you feel good with what you own in the market?

And then the last one for me.

Matt Kornack: The last one for me, Toronto, like you've done well in your portfolio in the Toronto market. At this point, do you feel good with what you own in the market?

Toronto.

You've done well in your portfolio in the Toronto market is it.

At this point do you feel good with what you all in the market.

Kevan Gorrie: I think I lost you for a bit there. You had mentioned that we had done well in Toronto. Are we happy with the portfolio in Toronto? Was that the question?

I think I lost you for a bit there you had mentioned that we have done well in Toronto are we happy with the portfolio in Toronto was that the question would you look to <unk>.

Matt Kornack: No. Would you look to, as you kind of expand into, I guess, gateway markets, I don't know if the pricing is attractive in Toronto at this point or more attractive, but would you look to add in Toronto or any other Canadian market for that matter?

You kind of.

And then I guess.

Gateway markets.

The pricing is attractive in Toronto at this point or more attractive, but would you look to add in Toronto or any other Canadian markets for that matter.

Kevan Gorrie: Yeah, I think we would. I think what's really important to us when we underwrite is the strength of the market, what we think the market is going to do and how it's gonna perform over the next 5 to 10 years. That's how we base our pricing on it as well. I think for us, we think some markets will outperform Toronto, and therefore, we adjust our pricing accordingly. We do wanna continue to grow in the GTA market. I think right now we just probably have a different view than most on where rents will be in the market in a couple of years from now, and that obviously impacts our pricing on those assets. I am confident we will grow in the Toronto market.

Yes, I think we would I think what's really important to us when we underwrite as the strength of the market. What we think the market is going to do and how it's going to perform over the next five to 10 years and I think for and Thats, how we base our pricing on it as well.

Yes.

For us we think some markets will outperform Toronto and therefore, we adjust our pricing accordingly, so we do want to continue to grow in the GTA market I think right now, we just probably have a different view than most and where rents.

We will be in the market in a couple of years from now and that obviously impacts our pricing.

On those on those assets.

We will I am confident we will grow in the Toronto market I, just think we're going to remain very disciplined on pricing.

Kevan Gorrie: I just think we're gonna remain very disciplined on pricing and what we buy.

On what we buy.

Pammi Bir: Makes sense. Thanks, Kevan.

Matt Kornack: Makes sense. Thanks, Kevan.

Okay makes sense.

Thanks, Kevin.

Operator: Thank you. Your next question is from Tal Woolley from CIBC Capital Markets. Your line is now open.

Thank you and your next question is from Tal Woolley from CIBC capital markets. Your line is now open.

Tal Woolley: Hi, good morning. Hello? Oh.

Hi, good morning.

Hello.

Kevan Gorrie: Morning.

Tal Woolley: Yeah. We're here. Hey. Teresa, I was just wondering, if I'm reading my charts here correctly, you're sort of if you were looking to float unsecured right now, you're probably looking at a rate in the 4s, low 4s?

Good morning.

Okay Alright.

Sorry, I was just wondering if I'm reading my charts here correctly, you're sort of if you were looking to float unsecured right now youre, probably looking at a rate in the fours low fours.

Kevan Gorrie: Yeah, that's right. I would say right around four, especially, you know, looking at the deal that Choice did yesterday, and that broadened spreads quite a bit. That would be on the Canadian front. If we were to go, like, to swap to euro, which, of course, you know we do most of our debt that way, we would be looking at three and a half.

Yes, that's right I would say right around four alright, especially if you're looking at the deal that choice did yesterday and that Brian spreads quite a bit so that would be on the Canadian front. If we were to go late to swap to Euro which of course, you know we do most of our debt that way we'd be looking at three five.

Tal Woolley: Okay. Perfect. I guess, Kevan, let's assume for a moment I'm a representative from a pension plan here in Canada. I come to you and say, I've got a couple billion dollars I'd like Granite to manage for me and invest in industrial real estate. First of all, are you interested in that proposition?

Okay.

Perfect.

And then I guess, Kevin let's assume for a moment.

Presentative from a pension plan here in Canada.

And I have to say I've got a couple billion dollars I'd like granite to manage for me and invest in industrial real estate first of all are you interested in that proposition.

Kevan Gorrie: Oh, that is a loaded question. Understanding the strings attached and the conditions, probably not, I would say.

All of that is a loaded question.

Okay.

Yeah.

Understanding the strength of attacks and the conditions, probably not I would say what if each only.

Tal Woolley: What if the fees...

Kevan Gorrie: If you're telling me. Well, we're not a fee driver. We are open to the right strategic partnerships, I would say that. I wouldn't say no forever. I just feel our focus is on building the portfolio and the business in the right way, and there will be a time, I think, for a JV partnerships, but those have to be on the right terms.

Well, we're not we're not a fee driver.

We're open to we are open to the right strategic partnerships I would say that so I wouldn't say no forever just feel our focus is on building the portfolio and the business in the right way and there will be a time I think.

Sure.

JV partnerships, but those have to be on the right terms.

Tal Woolley: Okay.

Kevan Gorrie: You have to be very aligned. I think the last few years will show you though, that will put partnerships and alignment under a lot of pressure, right? I think it has been constructive to go through the challenges that I think all REITs and all companies gone through over the past few years. I think anyone coming out of this would look at partnership opportunities carefully. To answer your question, under the right conditions, absolutely.

And you have to be very aligned and I think the last few years will show you that we will put partnerships and alignment under a lot of pressure right. I think it has been constructive to go through.

The challenges that I think all rights in all company has gone through over the over the past few years. So I think anyone coming out of this would look at.

Partnership opportunities carefully and so to answer your question.

Under the right conditions absolutely.

Tal Woolley: Okay. Let's say we can come to mutually agreeable terms. Where would you expect of a, you know, if you maybe do it on a percentage basis, how much would you look to buy in Europe versus Canada versus the US right now?

Okay.

So, let's say, we can come to mutually agreeable terms, where would you expect.

If you can maybe do it on a percentage basis, how much was how much would you look to buy in Europe versus Canada versus the U S right now.

Kevan Gorrie: Well, I think for us, I think Europe is providing more compelling opportunities today, that can change. I think as you've seen, we like certain markets in the US, and there's always opportunities in the US. There are fewer, although I say compelling, there is not as much transaction volume in Europe, but the opportunities we are seeing today are more compelling in Europe. I think for now, that is going to continue. If you look at our activity, and this is just an opinion of mine at a point in time today, I would say we'll probably be more active in Europe, and select markets in the US and less so in Canada over the next 12 months, based more on opportunities and pricing that we see on those opportunities.

Well.

Yes.

<unk>.

I think I think for US I think Europe is providing more compelling opportunities today.

And that can change and I think as <unk> seen we like certain markets in the U S and there is always opportunities in the U S.

There are fewer although I say compelling.

There is not as much transaction volume in Europe, but the opportunities. We are seeing today are more compelling in Europe and I think for now that's going to continue. So if you look at our activity and this is just an.

And a team of mine at a point in time today I would say, we're probably be more active in Europe.

And select markets in the U S and less so in Canada over the next 12 months based more on opportunities and pricing that we see on those opportunities.

Tal Woolley: Sorry, your reason for calling Europe compelling is that your, the returns you think you can get upfront are materially better than what you can get elsewhere?

And sorry, your your your reason for calling Europe compelling is that your.

The returns you think you can get upfront are.

Our students are materially better than what you can get elsewhere.

Kevan Gorrie: Not materially. I mean, it's very, the market's very efficient, believe me. We're not the only ones that are trying to place capital. If you look at the, you know, quantum of private equity capital, institutional capital, pursuing these types of assets is very large. It is a challenge for a company like Granite to find the right opportunities that fit for us in a very competitive capital environment right now. That's what we do. We've been successful through the years doing just that. I'm confident we'll continue to be successful. To me, I just feel that there will be better performance overall in Europe than we will see in markets in the US. Again, that can change, and it depends on pricing.

Not materially I mean, its very the.

Our market is very efficient believe me.

The only ones that are trying to place capital if you look at the.

Quantum of Av.

Private equity capital and institutional capital pursuing these types of assets is very large and it.

It is.

It is a challenge for a company like granted to find the right opportunities that fit for us.

In a very competitive capital environment right now, but that's what we do we've been successful through the years due in doing just that so im comfortable will continue to be successful.

But.

To me.

There will be better performance.

Overall in Europe than we will see in markets in the U S and again that can change and it depends on pricing it depends on the denominator as well.

Kevan Gorrie: It depends on the denominator as well.

Tal Woolley: Are you factoring in the cost of financing there too with Europe as well? Is that part of what makes it compelling?

And in fact, when you are.

Tal Woolley: Are you factoring in the cost of financing there too with Europe as well? Is that part of what makes it compelling?

Factoring in the cost of financing there too with Europe as well as a part of what makes it compelling.

Kevan Gorrie: It can, but that will be a consideration. That wouldn't be a major consideration. When we underwrite most deals, we do it on a leverage neutral basis. A growth basis, i.e., without leverage, right? That's the acquisition and the asset has to stand on its own without the benefit of leverage and pricing on the debt.

It can but that will be a consideration that wouldn't be a major consideration when we underwrite most deals we do it on a leverage neutral basis.

And a gross basis I E without leverage right. So that the acquisition and the asset has to stand on its own without the benefit of leverage and pricing on the debt.

Operator: Okay. All right. That's great. Thanks very much.

Okay.

Right that's great. Thanks very much.

Yes.

Okay.

Operator: Thank you. Your next question is from Pammi Bir from the RBC Capital Markets. Your line is now open.

Thank you and your next question is from Thomas <unk> from RBC capital markets. Your line is now open.

Pammi Bir: Thanks. Good morning. Kevin, you've made some good leasing progress and but you've also mentioned or maybe emphasized a bit of caution still among tenants. Are you seeing any pressure on any of the tenant base at the moment or anything that maybe gives you some concern, either by segment or by market?

Thanks, Good morning, Kevin you've made some good leasing progress, but you've also mentioned or maybe emphasize a bit of caution still among tenants are you seeing any pressure on any of the tenant base at the moment or anything that maybe gives you some concern either by segment or by market.

Kevan Gorrie: No, I don't think we have any immediate concerns. I didn't think I came by that. I didn't think I sort of sounded that negative, I guess I did. No, I think everyone's sort of reading too much into this, that we think that there's this sort of shoe to drop. We're not aware of any immediate concerns with our tenant base, if that's the sort of question.

No I don't think we have any immediate concerns and I didn't think I can buy it I didn't think so.

Sounded that negative.

I guess I did but no.

I think everyone's sort of reading too much into this but we think that there is this sort of shoe to drop we're not aware of any immediate concerns with our with our tenant base if thats the sort of question.

Pammi Bir: Okay. just lastly, any notable changes in terms of bad debts?

And then just lastly, any any any notable changes in terms of bad debt.

Teresa Neto: No, nothing right now.

No nothing provisioning.

Pammi Bir: Provisioning?

Teresa Neto: No, we've provisioned nothing, Pammi, and no credit watch at the moment.

We provisioned nothing and no no credit lock at the moment.

Pammi Bir: Okay, great.

Okay, all right thanks very much.

Teresa Neto: On any of us.

Pammi Bir: Thanks very much.

Teresa Neto: Yeah.

Pammi Bir: Got it.

Teresa Neto: No problem.

Got it I'll turn it back thank you.

Pammi Bir: I'll turn it back. Thank you.

Operator: Thank you. There are no further questions at this time. Please proceed.

Thank you operator at this time. Please proceed.

Kevan Gorrie: All right. Well, thank you everyone for being on the call today and look forward to hopefully, speaking with you again in Q3.

Alright, well, thank you everyone for being on the call today and look forward to speaking with you again in Q3.

Operator: Thank you, ladies and gentlemen. This concludes today's conference call. You may now disconnect your lines.

Thank you ladies and gentlemen. This concludes today's conference call you may now disconnect your lines.

Q2 2025 Granite Real Estate Investment Trust Earnings Call

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