Q4 2025 PRO Real Estate Investment Trust Earnings Call

March 5, 2026

Operator: Good morning, and welcome to PROREIT's Q4 and Annual Results Conference Call for fiscal 2025. At this time, all lines have been placed on mute to prevent background noise. Management will make a short presentation, which will be followed by a question-and-answer period open exclusively to financial analysts. To ask a question, simply press the star key, then number one on your telephone keypad. If you would like to withdraw your question, please press the star key followed by number two. For your convenience, the results release, along with Q4 and fiscal 2025 financial statements and Management's Discussion and Analysis are available at PROREIT.com in the Investors section and on SEDAR+. Before we start, I have been asked by PROREIT to read the following message regarding forward-looking statements and non-IFRS measures.

Speaker #4: Management will make a short presentation which will be followed by a question-and-answer period open exclusively to financial analysts. To ask questions, simply press the star key, then number 1 on your telephone keypad.

Speaker #4: If you would like to withdraw your question, please press the star key followed by number 2. For your convenience, the results release along with 4th Quarter and Fiscal 2025 financial statements and management discussion and analysis are available at proreit.com in the Investor section and on Cedar Plus.

Speaker #4: Before we start, I have been asked by PRO REIT to read the following message regarding forward-looking statements and non-IFIRS S measures. PRO REIT's remarks today may contain forward-looking statements about its current and future plans, expectations, intentions, results, levels of activity, performance, goals or achievements, or other future events or developments.

Operator: PROREIT's remarks today may contain forward-looking statements about its current and future plans, expectations, intentions, results, levels of activity, performance, goals or achievements, or other future events or developments. Forward-looking statements are based on information currently available to management and on estimates and assumptions made based on factors that management believes are appropriate and reasonable in the circumstances. However, there can be no assurance that such estimates and assumptions will prove to be correct. Many factors may cause actual results, level of activity, performance, achievements, future events or developments to differ materially from those expressed or implied by the forward-looking statements. As a result, PROREIT cannot guarantee that any forward-looking statement will materialize, and you are cautioned not to place undue reliance on these forward-looking statements.

Speaker #4: Forward-looking statements are based on information currently available to management and on estimates and assumptions made based on factors that management believes are appropriate and reasonable in the circumstances.

Speaker #4: However, there can be no assurance that such estimates and assumptions will prove to be correct. Many factors may cause actual results, level of activity, performance, achievements, future events, or developments to defer materially from those expressed or implied by the forward-looking statements.

Speaker #4: As a result, PRO REIT cannot guarantee that any forward-looking statement will materialize and you are cautioned not to place undue reliance on these forward-looking statements.

Operator: For additional information on the assumptions and risks, please consult the cautionary statement regarding forward-looking statements contained in PROREIT's MD&A, dated 4 March 2026, available at www.sedarplus.ca. Forward-looking statements represent management's expectations as at 4 March 2026, and except as may be required by law, PROREIT has no intention and undertakes no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise. The discussion today will include non-IFRS financial measures. These non-IFRS measures should be considered in addition to, and not as a substitute for, or in isolation from the REIT's IFRS results. For a description of these non-IFRS financial measures, please see the Q4 and fiscal 2025 earnings release and non-IFRS measures section of the MD&A for fiscal 2025 for additional information. I will now turn the call over to Mr.

Speaker #4: For additional information on the assumptions and risks, please consult the cautionary statement regarding forward-looking statements contained in PRO REIT's MDNA dated March 4th, 2026, available at www.cedarplus.ca.

Speaker #4: Forward-looking statements represent management's expectations as at March 4, 2026, and except as may be required by law, PRO REIT has no intention in undertaking no obligation to update or revise any forward-looking statement, whether as a result of new information, future events, or otherwise.

Speaker #4: The discussion today will include non-IFRS financial measures. These non-IFRS measures should be considered in addition to, and not as a substitute for or in isolation from, the REIT's IFRS results.

Speaker #4: For a description of these non-IFRS financial measures, please see the 4th Quarter and Fiscal 2025 earnings release and non-IFRS measures section of the MDNA for Fiscal 2025 for additional information.

Operator: Gordon Lawlor, President and Chief Executive Officer of PROREIT. Please go ahead.

Speaker #4: I will now turn the call over to Mr. Gordon Lawler, President and Chief Executive Officer of PRO REIT. Please go ahead.

Gordon Lawlor: Thank you, Sylvie. Good morning, everyone, and welcome. Joining me today is Alison Schafer, our CFO and Corporate Secretary. Zach Aaron, Vice President of Investments and Asset Management, is not joining us today as he has a new bouncing baby girl as of last week. Congrats, Zach and Julia on his proud new parents. I'll begin with an overview of our fiscal 2025 and Q4 performance before turning the call over to Alison for a more detailed review of our financial results. We're very proud of our performance in 2025, which marked a major milestone for PROREIT as we completed our transition to a pure play industrial REIT focused on small and mid-bay properties. I want to commend our entire team. Achieving this strategic objective established three years ago reflects the disciplined execution and commitment of our employees.

Speaker #2: Thank you, Sylvie. Good morning, everyone, and welcome. Joining me today is Allison Schaefer, our CFO and Corporate Secretary. Zach Aaron, Vice President of Investments and Asset Management, is not joining us today as he has a new bouncing baby girl as of last week.

Speaker #2: Congrats, Zach, and Julia on this proud new parents. I'll begin with an overview of our Fiscal 2025 and 4th Quarter performance before turning the call over to Allison for a more detailed review of our financial results.

Speaker #2: We're very proud of our performance in 2025, which marked a major milestone for PRO REIT as we completed our transition to a pure-play industrial REIT.

Speaker #2: Focused on small and mid-bay properties, I want to commend our entire team. Achieving this strategic objective established three years ago reflects the discipline, execution, and commitment of our employees.

Gordon Lawlor: Over the course of the year, we repositioned our portfolio, strengthened our balance sheet, and enhanced the overall quality of our platform to support sustainable long-term growth. At year-end, our portfolio comprised 105 investment properties totaling 6.4 million sq ft of gross leasable area. Weighted average lease term to maturity was 4.3 years, compared to 3.8 years at the same time last year. In line with our capital recycling strategy, we sold a total of 17 non-core properties during the year for gross proceeds of CAD 71.2 million. We also acquired a portfolio of 7 high-quality industrial properties in Winnipeg, Manitoba, from Parkit Enterprise Inc. for CAD 101.9 million. By the same token, we struck a strategic partnership with Parkit to pursue future growth opportunities.

Speaker #2: Over the course of the year, portfolio to strengthen our balance sheet and enhance the overall quality of our platform to support sustainable long-term growth.

Speaker #2: At year-end, our portfolio comprised 105 investment properties, totaling $6.4 million square feet, of gross leasable area. Weighted average lease term to maturity was 4.3 years, compared to 3.8 years at the same time last year.

Speaker #2: In line with our capital recycling strategy, we sold a total of 17 non-core properties during the year, a gross proceeds of $71.2 million. We also acquired a portfolio of seven high-quality industrial properties in Winnipeg, Manitoba, from Parkett Enterprise, Inc., for $101.9 million.

Speaker #2: By the same token, we struck a strategic partnership with Parkett to pursue future growth opportunities. As part of the transaction, we also successfully raised $42.1 million of equity, further enhancing our financial flexibility and positioning the REIT for future growth.

Gordon Lawlor: As part of the transaction, we also successfully raised CAD 42.1 million of equity, further enhancing our financial flexibility and positioning the REIT for future growth. As of year-end, industrial assets represented 90.5% of our base rent, compared to 80.8% a year ago. The enhanced earnings profile of our industrial-focused portfolio is reflected in our financial performance. NOI rose by 9.6% in Q4 and 8.4% for the year, despite owning 10 fewer properties. Turning to the portfolio transactions during the year, we completed the sale of a non-core office property located in Saint John, New Brunswick, totaling approximately 51,000 sq ft for gross proceeds of CAD 7.2 million. We continue to manage that property on behalf of the purchaser.

Speaker #2: As of year-end, industrial assets represented 90.5% of our base rent, compared to 80.8% a year ago. The enhanced earnings profile of our industrial-focused portfolio is reflected in our financial performance.

Speaker #2: NOI rose by 9.6% in the fourth quarter and 8.4% for the year. Despite owning 10 fewer portfolio transactions during the year, we completed the sale of a non-core office property located in St.

Speaker #2: John, New Brunswick, totaling approximately $51,000 square feet, for gross proceeds of $7.2 million. We continued to manage that property on behalf of the purchaser.

Gordon Lawlor: The sale of our non-core retail property in Rocky Mountain House, Alberta, totaling approximately 5,000 sq ft for gross proceeds of $400,000. Net proceeds for these sales were used to repay related mortgages, credit facilities, and for general corporate purposes. Leveraging our partnership with Parkit, we purchased an industrial property in Winnipeg from them for $5.4 million as we continue to increase our presence in this market. The purchase price was financed through $3.2 million of the non-revolving PROREIT credit facility at approximately $2.1 million of PROREIT equity priced at $6.20 per unit to Parkit. Subsequent to year-end, we engaged in two additional transactions.

Speaker #2: And the sale of our non-core retail property in Rocky Mountain House, Alberta, totaling approximately $5,000 square feet, for gross proceeds of $400,000. Net proceeds for these sales were used to repay related mortgages, credit facilities, and for general corporate purposes.

Speaker #2: Leveraging our partnership with Parkett, we purchased an industrial property in Winnipeg from them for $5.4 million, as we continue to increase our presence in this market.

Speaker #2: The purchase price was financed through $3.2 million of a non-revolving credit facility, and approximately $2.1 million of PRO REIT equity priced at 620 per unit to Parkett.

Speaker #2: Subsequent to year-end, we engaged two additional engaged in two additional transactions. First, we sold our 50% interest in a non-core industrial property in Dartmouth, Nova Scotia, totaling approximately $65,000 square feet, with our share of gross proceeds of $5.7 million.

Gordon Lawlor: First, we sold our 50% interest in a non-core industrial property in Dartmouth, Nova Scotia, totaling approximately 65,000 sq ft, with our share of gross proceeds of CAD 5.7 million. Second, we're in the process of acquiring a 100% interest in a single-tenant, 2024 built, 10-year leased industrial building in Moncton, New Brunswick, totaling approximately 60,000 sq ft of GLA for CAD 12.3 million. Our focused presence in robust secondary markets continues to deliver compelling results. According to CBRE, our core markets of Halifax, Winnipeg, and Ottawa all outperformed the national average in terms of market rent growth in 2025. Turning to leasing activity. Our leasing momentum was sustained throughout the year, driven by contractual rent escalations as well as stronger renewal rates at higher rents on new leases.

Speaker #2: Second, we're in the process of acquiring 100% interest in a single-tenant 2024 build, 10-year leased industrial building in Moncton, New Brunswick. Totaling approximately $60,000 square feet, of GOA, for $12.3 million.

Speaker #2: Our focus presence and robust secondary markets continues to deliver compelling results. According to CBRE, our core markets of Halifax, Winnipeg, and Ottawa all outperformed the national average in terms of market rank growth in 2025.

Speaker #2: Turning to leasing activity, our leasing momentum was sustained throughout the year, driven by contractual rent escalations as well as stronger renewal rates and higher rents on new leases.

Gordon Lawlor: As of today, we've secured 80.1% of GLA maturing in 2025 at a positive average spread of 34.2%. Excluding the Saint-Hyacinthe property, which I'll address shortly, we've renewed 95% of our 2025 GLA. We've also secured renewals on 68.2% of GLA maturing in 2026 at a 33.8% positive average spread, reflecting one of the strongest leasing cycles at this stage in our history and providing meaningful embedded growth heading into 2026. This includes, among other transactions, 5 leases renewed starting in 2026, with rent increases ranging from 40% to 45%. Overall, portfolio occupancy was 95.4% at year-end, compared to 97.8% a year earlier.

Speaker #2: As of today, we've secured 80.1% of GOA maturity in 2025, and a positive average spread of 34.2%. Excluding the St. Hyacinth property, which I'll address shortly, we've renewed 95% of our 2025 GOA.

Speaker #2: We've also secured renewals on 68.2% of GOA maturing in 2026 at a 33.8% positive average spread. Reflecting one of the strongest leasing cycles at this stage in our history, and providing meaningful embedded growth heading into 2026.

Speaker #2: This includes, among other transactions, five leases renewed starting in 2026, with rent increases ranging from 40 to 45 percent. Overall portfolio occupancy was 95.4% at year-end, compared to 97.8% a year earlier.

Gordon Lawlor: As noted on previous calls, our occupancy rate was impacted by a single vacancy in our 176,000 sq ft property located at 6375 Picard Street in Saint-Hyacinthe, Quebec. On 27 February, we entered into a non-binding offer to lease for approximately 74,000 sq ft at this property to a new tenant for a term exceeding 10 years at a market rent. Subject to the completion of the binding lease, rent commencement is expected mid-2026. Excluding this property, our portfolio occupancy would have been approximately 98.1% at year-end. With that, I'll now turn the call over to Allison. Allison, over to you.

Speaker #2: As noted on previous calls, our occupancy rate was impacted by a single vacancy in a 176,000 square foot property located at 6375 Picard Street, in Santee Ascent, Quebec.

Speaker #2: On February 27th, we entered into a non-binding offer to lease for approximately $74,000 square feet at this property, to a new tenant for a term exceeding 10 years at a market rent.

Speaker #2: Subject to the completion of the binding lease rank commencement is expected mid-2026. Excluding this property, our portfolio occupancy would have been approximately 98.1% at year-end.

Speaker #2: With that, I'll now turn the call over to Allison. Allison, over to you.

Alison Schafer: Thank you, Gordie. Good morning, everyone. We are pleased with our Q4 and full year results. In the quarter, property revenue totaled CAD 26.2 million. That's up 5.4% year-over-year, despite owning 10 fewer properties. The increase is mainly driven by contractual increases in rent and higher rental rates on lease renewals and new leases. For the full year, property revenues amounted to CAD 104.1 million, up 4.9% year-over-year. Net operating income, or NOI, was CAD 16.1 million, an increase of 9.6% compared to last year due to the same factors. For the full year, NOI amounted to CAD 63.4 million, which was up 8.4% year-over-year.

Speaker #1: Thank you, Gordy. And good morning, everyone. We are pleased with our 4th Quarter and full-year results. In the quarter, property revenue totaled $26.2 million, that's up 5.4% year over year, despite owning 10 fewer properties.

Speaker #1: The increase is mainly driven by contractual increases in rent and higher rental rates on leased renewals and new leases. For the full year, property revenues amounted to $104.1 million, up 4.9% year over year.

Speaker #1: Net operating income, or NOI, was $16.1 million, an increase of 9.6% compared to last year, due to the same factors. For the full year, NOI amounted to $63.4 million, which was up 8.4% year over year.

Alison Schafer: Q4 same-property NOI, representing 98 of our 105 properties, reached $14.1 million. That was up 8.1% year-over-year, driven by robust 9.1% growth in our industrial segment. The increase reflects contractual rent escalations, stronger renewal rates, and higher rents on new leases. This was achieved despite a decline in overall average occupancy related to the single-tenant vacancy Gordy mentioned earlier. For the full year, same-property NOI reached $53.0 million, up 8% year-over-year. Our funds from operations, or FFO, amounted to $7.8 million for the quarter, which was up 14.3%. This was driven by increases in contractual base rent, higher rates on renewals, and excuse me, higher rental rates on new leases.

Speaker #1: 4th Quarter, same property NOI, representing 98 of our 105 properties, reached $14.1 million. That was up 8.1% year over year, driven by robust 9.1% growth in our industrial segment.

Speaker #1: The increase reflects contractual rent escalations, stronger renewal rates, and higher rents on new leases. This was achieved despite a decline in overall average occupancy related to the single-tenant vacancy Gordy mentioned earlier.

Speaker #1: For the full year, same property NOI reached $53.0 million, up 8% year over year. Our funds from operations, or FFO, amounted to $7.8 million, for the quarter, which was up 14.3%.

Speaker #1: This was driven by increases in contractual-based rent, higher rates on renewals, and—excuse me—higher rental rates on new leases. This was offset by an increase in interest and financing costs.

Alison Schafer: This was offset by an increase in interest and financing costs. Basic AFFO payout ratio was 99.1% in Q4, compared to 96.1% for the same quarter last year. This is primarily driven by the timing of the sale of 17 properties to be completed in 2025, an increase in interest and financing costs, and the issuance of equity in connection with the Parkit transaction in Winnipeg. We expect improvement on our payout ratio, creating some financial flexibility and some room for future acquisitions. The weighted average capitalization rate of our portfolio was stable year-over-year at approximately 6.7% at 31 December 2025. Moving on to our balance sheet. Adjusted debt to annualized adjusted EBITDA ratio came in at 9.0 times at 31 December 2025.

Speaker #1: Basic AFFO payout ratio was 99.1% in Q4, compared to 96.1% for the same quarter last year. This is primarily driven by the timing of the sale of 17 properties we completed in 2025, an increase in interest and financing costs, and the issuance of equity in connection with the Parket transactions in Winnipeg.

Speaker #1: We expect improvement on our payout ratio creating some financial flexibility and some room for future acquisition. The weighted average capitalization rate of our portfolio was stable year over year at approximately 6.7% at December 31st, 2025.

Speaker #1: Moving on to our balance sheet. Adjusted debt to annualized adjusted EBITDA ratio came in at 9.0 times at December 31st, 2025. That was down from 9.2 times at the previous year-end.

Alison Schafer: That was down from 9.2 times at the previous year-end. While our adjusted debt to gross book value decreased to 48.8% from 50.3% at the same time last year. Our midterm goal is to reduce our adjusted debt to adjusted EBITDA ratio and adjusted debt to a growth book value further as we continue to grow the business. At year-end, our total debt, including current and non-current portions, totaled CAD 525 million, compared to the CAD 531.1 million at 30 September 2025, and CAD 499 million at 30 December 2024. Looking at our upcoming maturities, in 2026, we have CAD 157.1 million maturing. We are actively engaged with lenders on these maturities and expect to secure refinancing on competitive terms with robust refinancing proceeds.

Speaker #1: While our adjusted debt to gross book value decreased to 48.8% from 50.3% at the same time last year. Our midterm goal is to reduce our adjusted debt to adjusted EBITDA ratio and adjusted debt to gross book value further as we continue to grow the business.

Speaker #1: At year-end, our total debt, including current and non-current portions, totaled $525 million, compared to the $531.1 million at September 30th, 2025, and $499 million at December 30th, 2024.

Speaker #1: Looking at our upcoming maturities, in 2026, we have $157.1 million maturing. We are actively engaged with lenders on these maturities, and expect to secure refinancing on competitive terms with robust refinancing proceeds.

Alison Schafer: In 2027, we have another CAD 48.7 million maturing, mainly tied to high-performing industrial assets in Burnside Industrial Park. For 2028, we have CAD 59.8 million in maturities. The weighted average interest rate on these mortgages is 3.7% for 2026, 4.8% for 2027, and 3.5% for 2028. Finally, our distribution of CAD 0.0375 per unit was maintained for the Q4 of 2025. That wraps up our financial review. Gordy, back to you for closing remarks.

Speaker #1: In 2027, we have another $48.7 million maturing, mainly tied to high-performing industrial assets in Burnside Industrial Park. And for 2028, we have $59.8 million in maturities.

Speaker #1: The weighted average interest rate on these mortgages is 3.7% for 2026, 4.8% for 2027, and 3.5% for 2028. Finally, our distribution of 3.75 cents per unit was maintained for the 4th Quarter of 2025.

Speaker #1: That wraps up our financial review. Gordy, back to you for closing remarks.

Gordon Lawlor: Thank you, Alison. We're entering 2026 with a clear strategy and a focused industrial platform supported by disciplined financial management. Our priority remains the pursuit of high-quality opportunities aligned with a prudent, value-driven approach to growth. Fundamentals across our small and mid-bay portfolios remain healthy, and we're seeing signs of improving market conditions as we move through 2026. With this strong foundation, we are well positioned to strengthen our leadership position in the Canadian light industrial sector and create sustained long-term value for our unit holders. Thank you. Sylvie, back to you for the question-and-answer period.

Speaker #2: Thank you, Allison. We're entering 2026 with a clear strategy and a focused industrial platform supported by disciplined financial management. Our priority remains the pursuit of high-quality opportunities aligned with our prudent value-driven approach to growth.

Speaker #2: Fundamentals across our small and mid-bay portfolios remain healthy. And we're seeing signs of improving market conditions as we move through 2026. With this strong foundation, we are well-positioned to strengthen our leadership position in the Canadian light industrial sector and create sustained long-term value for our unit holders.

Speaker #2: Thank you. Sylvie, back to you for the question-and-answer period.

Operator: Thank you, sir. Ladies and gentlemen, as stated, we will now take questions from financial analysts. If you would like to ask a question, please press star followed by one on your touch-tone phone. You will then hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press star followed by two. If you're using your speakerphone, please lift the handset first before pressing any keys. Please go ahead and press star one now if you have a question. Thank you. Your first question will be from Sam Damiani at TD Cowen. Please go ahead, Sam.

Speaker #3: Thank you, sir. Ladies and gentlemen, as stated, we will now take questions from financial analysts. If you would like to ask a question, please press star followed by 1 on your touch-tone phone.

Speaker #3: You will then hear a prompt that your hand has been raised. And should you wish to decline from the polling process, please press star followed by 2.

Speaker #3: And if you're using your speakerphone, please lift the handset first before pressing any keys. Please go ahead and press star 1 now if you have a question.

Speaker #3: Thank you. And your first question will be from Sam Damiani at TD Cowen. Please go ahead, Sam.

Sam Damiani: Thanks, good morning. Just on your comments, Gordy, and I guess Alison, too, just with, you know, the NOI growth being very strong and you're seeing improving market conditions as you enter the new year, your leverage did tick down, you know, below 49% with the asset sales that you've completed. I mean, are you seeing, you know, a better path, an easier path, I guess, to bring that leverage, you know, toward those midterm targets now than, let's say, was the case a year ago? Like, should we be building in some expectations for, you know, that leverage to stay further below 50% going forward?

Speaker #4: Thanks. And good morning. Just on your comments, Gordy, and I guess, Allison, too, just with the NOI growth being very strong and you're seeing improving market conditions as you enter the new year, your leverage did tick down below 49% with the asset sales that you've completed.

Speaker #4: I mean, are you seeing a better path, an easier path, I guess, to bring that leverage toward those midterm targets now than, let's say, was the case a year ago?

Speaker #4: Are we—should we be building in some expectations for that leverage to stay further below 50% going forward?

Gordon Lawlor: Thanks, Sam. I think where we are right now, I mean, I like us being around the 50%. I know we have that 45% target. You know, to meaningfully get there, you know, we'd need to tie it into a larger deal with some equity. Really what we're focused now is just staying around the 50. You know, and we talk about where we are. I mean, we have room for about $40 million in acquisitions right now, and we'd like to see if we could execute on that. We announced a great $12 million asset here, so probably room for another $25 or $30 million. You'd probably see that before we focused on the debt reduction.

Speaker #2: Thanks, Sam. I think where we are right now—I mean, I like us being around the 50%. I know we have that 45% target.

Speaker #2: To me, meaningfully get there, we need to tie it into a larger deal with some equity. So really, what we're focused now is just staying around the 50.

Speaker #2: And we talked about where we are. I mean, we have room for about $40 million in acquisitions right now. And we'd like to see if we could execute on that.

Speaker #2: We announced a $12 million grade $12 million asset here. So probably room for another 25 or 30 million. So you'd probably see the op before we focused on the debt reduction.

Gordon Lawlor: We've been so focused on the debt reduction since 2022. We just want to have this opportunity. We see a lot of assets right now out in the market, there's some opportunities here to add about another CAD 40 million to the math. You know, we're still mindful of the 50%. We wouldn't go above that other than if it was on a short-term basis or anything. The 48.8% is where we ended up the year, but we'd probably pick that up a little bit if there was some good acquisitions.

Speaker #2: We've been so focused on the debt reduction since 2022, and we just want to have this opportunity. We see a lot of assets right now within the market.

Speaker #2: So there's here to add about another 40 million to the math and then we're still mindful of the 50%. We wouldn't go above that other than if it was on a short-term basis or anything.

Speaker #2: But the 48.8 is where we ended up the year, but we'd probably tick that up a little bit if there were some good acquisitions.

Sam Damiani: Thank you. That's helpful. Just looking at the lease expiry schedule, you've got 17% expiring in 2027. I assume the government is a decent chunk of that. I mean, do you have any early prospects on extending those? Are there any larger expected departures within that cluster of leases?

Speaker #4: Thank you. That's helpful. Just looking at the lease expiry schedule, you've got 17% expiring in 2027. I assume the government is a decent chunk of that.

Speaker #4: I mean, do you have any early prospects on extending those? Are there any larger expected departures within that cluster of leases?

Gordon Lawlor: I mean, we're reaching out to everybody in 2027. Well, it's a little early on that basis. We have no real inclinations of any big spaces coming back at this point in time for 2027. You know, we have a big chunk of that is under market rent as well. We don't really have a negative view of anything on as far as 2027 goes at this point in time, but obviously we're just getting going on it.

Speaker #2: I mean, we're reaching out to everybody in 2027. It's a little early. And that basis, we have no real inclinations of any big spaces coming back at this point in time for 2027.

Speaker #2: And we have a big chunk of that is under market rent as well. So we don't really have a negative view of anything as far as 2027 goes at this point in time.

Sam Damiani: Okay. All right. That's helpful. Last one for me, just on Picard Street in Saint-Hyacinthe. you know, you've got, I guess, that lease that's almost across the finish line. I'm just wondering what's left to finalize there with that. Any update on prospects for the remaining 100,000 sq ft at that property?

Speaker #2: But obviously, we're just getting going on it.

Speaker #4: Okay. All right. That's helpful. Last one for me, just on Picard Street and St. Hyacinth. You've got I guess that lease that's almost across the finish line.

Speaker #4: I'm just wondering what's left to finalize there with that. And also, any update on prospects for the remaining 100,000 square feet at that property?

Gordon Lawlor: I mean, I just signed the LOI, like, Friday night. So that's fresh, but we've been dealing with this tenant for 3 or 4 months, so we're well through that. You know, we're crossing lease drafts and things like that. You know, if all things move well, you know, they'll be into the building in April for some setup of some work to be done. You know, it's non-binding, but everybody in good faith is working towards this one. It seems like a very good group we have here. Zach's off for a couple of weeks, so it's landed on my plate. I'm pushing it through, you know, to get it across the line, obviously.

Speaker #2: Yeah, yeah, so I mean, I just signed the LOI Friday night, so that's fresh. But we've been dealing with this tenant for three or four months.

Speaker #2: So we're well through that. Where we crossing lease drafts and things like that, and if all things move well, they'll be into the building in April for some setup of some work to be done.

Speaker #2: So, it's non-binding, but everybody in good faith is working towards this one. It seems like a very good group we have here. So, in fact, off for a couple of weeks.

Speaker #2: So it's landed on my plate. So I'm pushing it through to get it across the line, obviously. And as far as other prospects, nailing that piece down, if you were to look at the building, that's the half of the building or facing the 20, the Trans-Canada Highway there.

Gordon Lawlor: As far as other prospects, nailing that piece down, if you were to look at the building, that's the half of the building, facing the 20 TransCanada Highway there. That leaves another 100,000 in the back of the building. There's good shipping in the back right of that building, and then a little bit of shipping in the back bottom of the building. It can be split in 2 more pieces. We're in initial discussions with another 60,000 square foot tenant right now, maybe short-term or mid-term type storage opportunity on one piece of the space, you know, without having to do anything to the building. Literally, we just started that this week, because we've kind of secured the other piece.

Speaker #2: That leaves another 100,000 in the back of the building. There's good shipping in the back right of that building and then a little bit of shipping in the back bottom of the building.

Speaker #2: So it can be split into more pieces. We're in initial discussions with another 60,000 square foot tenant right now, maybe short-term or mid-term type storage.

Speaker #2: Opportunity on one piece of the space without having to do anything to the building. But literally, we just started that this week because we've kind of secured the other piece.

Sam Damiani: Okay. You're getting rents that sort of in line with the kinds of numbers you were talking about last quarter?

Gordon Lawlor: Yep. Higher than nine, lower than 11.

Speaker #4: Okay. And you’re getting rents that are sort of in line with the kinds of numbers you were talking about last quarter?

Sam Damiani: Got it. That's great. I'll turn it back. Thanks, Gordie.

Sam Damiani: Got it. That's great. I'll turn it back. Thanks, Gordon.

Speaker #2: Yep. Higher than 9, lower than 11.

Gordon Lawlor: Thanks.

Operator: Next question will be from Mark Rothschild at Canaccord. Please go ahead, Mark.

Speaker #4: Got it. That's great. I'll turn it back. Thanks, Gordy.

Speaker #2: Thanks.

Mark Rothschild: Thanks, and good morning.

Speaker #3: Next question will be from Mark Rothschild at Canaccord. Please go ahead, Mark.

Gordon Lawlor: Good morning.

Mark Rothschild: Just following up onto this discussion of the same property NOI growth and leases. You started answering or talking about 2027. To what extent do you believe that this, you know, this wide leasing spreads that you're achieving, will continue past 2026?

Speaker #5: Thanks, Sam. Good morning.

Speaker #2: Good morning.

Speaker #5: Okay. Just following up on the discussion of the same property NOI growth and leases. You started answering or talking about 2027. To what extent do you believe that these wide leasing spreads that you're achieving will continue past 2026?

Gordon Lawlor: We have four to five-year cash flow, Mark. I think we've told you that before. We still see the 7% to 9% cash flow growth across 2026, 2027, and 2028, you know, at this point in time, when we, you know. You get out to 2029 and 2030, and you're four and five years out, so you're into other leasing assumptions and terms. We see good strength for 2026, 2027 through 2028, for sure.

Speaker #2: So we have 14 five-year cash flow mark. I think we told you that before. So we still see the 7 to 9 percent cash flow growth across '26, '27, and '28.

Speaker #2: At this point in time, when then you get out to '29 and '30 in your four and five years out. So you're into other leasing assumptions and turns.

Speaker #2: But we see good strength for ’26, ’27, and ’28 for sure.

Mark Rothschild: When you just said cash flow growth, do you mean same property NOI growth, or do you mean actual cash flow FFO?

Speaker #5: When you just said cash flow growth, do you mean same property NOI growth, or do you mean actual cash flow FFO?

Gordon Lawlor: Cash flow FFO.

Mark Rothschild: Okay, great. Maybe just one more for me. Quite a bit of debt maturing, this year. Can you just give a little more clarity on what rates you're seeing now, and what we should expect, based on the current market?

Speaker #2: Cash flow FFO.

Speaker #5: Okay, great. And then maybe just one more for me. Quite a bit of debt maturing this year. Can you just give a little more clarity on what rate you're seeing now, and what we should expect based on the current market?

Gordon Lawlor: Yeah. I mean, it's a great time to have debt coming due it seems, other than all the terrible things going on in the world. Like, three lenders are a big piece of that. We're trying to secure some of that now. We've got good competition among the lenders. We just signed a CAD 29 million, 7-year, brand-new piece with a new lender at 158 over 7 years. I mean, that's a pretty solid rate for us. I think 155 over is the best rate we've ever had on a margin basis. Depending on when we pick the terms, we're trying to break this CAD 150 million up in the next number of years.

Speaker #2: Yeah. I mean, it's a great time to have debt coming due, it seems. Other than all the terrible things going on in the world, like three lenders are a big piece of that.

Speaker #2: We're trying to secure some of that now. We've got good competition among the lenders. So I think we'd be and we just signed a 29-million-dollar seven-year brand new piece with a new lender at 158 over seven years.

Speaker #2: So I mean, that's a pretty solid rate for us. I think 155 over is the best rate we've ever had on a margin basis.

Speaker #2: So I think we'd be depending on when we pick the terms. We're trying to break this 150 million up in the next number of years.

Gordon Lawlor: We may take, you know, some 3-year piece of this, some 5, obviously, and then there was an attractive 7 here. We're trying to split this one up a little bit more. We bought $300 million of assets in 2021, which got us to the point where, you know, it was mostly all 5-year money that was available then. We're trying to split that up. The long story short, I'd say we'd be at about 4.5 on all of it. We'll probably get some 4.3s and then, you know, 4.6s for the longer-term stuff.

Speaker #2: So, we may take some three-year piece of this, some five, obviously, and then there was an attractive seven here. So, we're trying to split this one up a little bit more.

Speaker #2: We bought 300 million of assets in '21, which got us to the point where it was mostly all five-year money that was available then.

Speaker #2: So we're trying to split that up. So the long story short, I'd say we'd be in about four and a half on all of it.

Speaker #2: We'd probably get some 4.3s, and then 4.6s for the longer-term stuff.

Mark Rothschild: Okay, great. Thanks so much. I'll turn it back.

Gordon Lawlor: Thanks.

Operator: Next question will be from Brad Sturges at Raymond James. Please go ahead, Brad.

Speaker #5: Okay. Great. Thanks so much. I'll turn it back.

Speaker #2: Thanks.

Speaker #3: Next question will be from Brad Sturgis at Raymond James. Please go ahead, Brad.

Sam Damiani: Good morning. Just maybe switching gears a bit, you know, the asset sale that you completed to start the year in Halifax, just curious to get a bit more color in terms of the...

Brad Sturges: Good morning. Just maybe switching gears a bit, you know, the asset sale that you completed to start the year in Halifax, just curious to get a bit more color in terms of the...

Speaker #6: Good morning. Just maybe switching gears a bit. The asset sale that you completed to start the year in Halifax, just curious to get a bit more color in terms of the decision around what to roll that decision to sell that asset.

Brad Sturges: The decision around or what drove that decision to sell that asset, is it kind of a one-off or do you see potentially, more rebalancing within the industrial portfolio?

Speaker #6: Is it kind of a one-off, or do you see potentially more rebalancing within the industrial portfolio?

Gordon Lawlor: Yeah, that give or take, a one-off. I mean, that's a joint venture asset with our partner who has a view on the portfolio, obviously. This asset was a little lower ceiling height than the rest of it, kind of orphaned in a different spot in the park. Which we agreed with at the time, just because I've known the asset for several years. We've got it secured now with some longer-term leases, so kind of full value. Thought it was a good time to see if we could sell it. We sold it just a slight premium above our IFRS value. You know, I think it was CAD 175 a foot or something like that.

Speaker #2: Yeah. Give or take, a one-off. I mean, that's a joint venture asset with our partner, who has a view on the portfolio, obviously. This asset was a little lower ceiling height than the rest of it.

Speaker #2: Kind of orphaned in a different spot in the park, and so—which we agreed with at the time, just because I've known the asset for several years.

Speaker #2: We've got it secured now with some longer-term leases. So kind of full value. So I thought it was a good time to see if we could sell it.

Speaker #2: And we sold it just a slight premium above our IFRS value. I think it was 175 bucks a foot or something like that. So we don't have significant discussions with twirling of assets out of the JV.

Gordon Lawlor: We don't have significant discussions with twirling of assets out of the JV. I mean, we sold a small CAD 3 to 4 million retail asset, that type of thing. Just culling on the edges more than a sale program on the JV entirely, Brad.

Speaker #2: I mean, we sold a small three, four-million-dollar retail asset, that type of thing. So it's just calling on the edges more than a sale program on the JV entirely, Brad.

Brad Sturges: Great. Can you comment on what the exit cap rate might have been?

Speaker #6: Great. And can you comment on what the exit cap rate might have been?

Gordon Lawlor: I don't exactly know. I would say it would have been slightly below 7. I don't have Zach here today with the math on it, but I'd say it would have been just below a 7. Six and three quarters, perhaps.

Speaker #2: I don't exactly know. I would say it would have been slightly below 7. I don't have Zach here today with the math on it, but it was, I'd say it would have been just below a 7.

Brad Sturges: Obviously, you bought something in Moncton, maybe just expand on the opportunities either with that acquisition, and then maybe, what else could be in the pipeline from a acquisition opportunity?

Speaker #2: Some three-quarters, perhaps.

Speaker #6: And then obviously, you bought something in Moncton. Maybe just expand on the opportunity you see there with that acquisition. And then maybe what else could be in the pipeline from an acquisition opportunity?

Gordon Lawlor: Yeah, that's an asset, brand-new built asset that we've been monitoring. I think we gave our first offer on that back in April 2024. We couldn't agree on a price. It came up again. There was a rent step that happened, which made it easier to make the math work. That was just a one-off asset that we've been watching. We saw it being built and leased, and we like it a lot. That's a long-term hold for us. As far as other assets, we publicly, you know, the RFA Artis has 1.2 million sq ft portfolio came out here a month ago. There's Winnipeg assets in there, which is obviously of interest to us.

Speaker #2: Yeah. That's an asset brand new built asset that we've been monitoring. I think we gave our first offer on that back in April of '24.

Speaker #2: And we couldn't agree on a price. So it came up again. There was a rent step that happened, which made it easier to make the math work.

Speaker #2: So that was just a one-off asset that we'd been watching. We saw it being built, and leased, and we like it a lot. That's a long-term hold for us.

Speaker #2: As far as other assets, the publicly the RFA artist had a has 1.2 million square feet portfolio, came out here a month ago. There's Winnipeg assets in there, which is obviously be of interest to us.

Gordon Lawlor: I bid on a single tenant asset in Quebec City last week, just a quiet offer. There's like there's CAD 2 million, CAD 100 million of real estate kind of sitting around my desk that we're getting quiet looks at or things like that some of it'll stick. It's a very interesting time, actually. It seems like things are loosening up, and we're gonna see some real estate come out here in the next 6 months, which is positive.

Speaker #2: I've been on an asset in Singleton, an asset in Quebec City. Last week, just a quiet offer. So there's a couple million 100 million of real estate kind of sitting around my desk that we're getting quiet looks at or things like that.

Speaker #2: Some of it will stick. So it's a very interesting time, actually. It seems like things are loosening up, and we're going to see some real estate come out here in the next six months, which is positive.

Brad Sturges: Sounds good. I'll turn it back. Appreciate it.

Gordon Lawlor: Thanks, Brad.

Operator: Next question will be from Tal Woolley at CIBC Capital Markets. Please go ahead, Tal.

Speaker #6: Sounds good. I'll turn it back. Appreciate it.

Speaker #2: Thanks, Brad.

Tal Woolley: Hey, good morning. Apologies, if you answered this before, but just any significant dispositions planned for 2026?

Speaker #3: Next question will be from Tal Wooley at CIBC Capital Markets. Please go ahead, Tal.

Speaker #7: Hey, good morning. Apologies if you answered this before, but just—any significant dispositions planned for 2026?

Gordon Lawlor: no, not for 2026. We're... Do we have any, dude? I just looked at Alison to ask her. I can't keep track of it, what's coming in and out the door anymore.

Gordon Lawlor: No, not for 2026. We're... Do we have any, dude? I just looked at Alison to ask her. I can't keep track of it, what's coming in and out the door anymore.

Speaker #2: No, not for 2026. We don't have any due. I just looked at Allison. You can't keep track of what's coming in and out the door anymore.

Rachel Smith: No, we don't have any...

Rachel Smith: No, we don't have any.

Gordon Lawlor: No, no, we don't have any plans. I mean, what we have left on the retail basis is grocery anchored on our line of credit, honestly. It is like, honestly, just a pain to sell it. You'd have to replace it with other things. We might have one more office building towards the end of the year, small office. You can figure that one out. We're still holding the 60,000 sq ft Ottawa office building. That's got down on it 2.9% until 2029. Good solid asset. I think it's still 80% occupied. I think we leased a floor, but there was some other tos and fro. It's still performing very well. We have no need to fire sale that's a good asset.

Speaker #2: No, no, we don't have any plans. I mean, what we have left on the retail basis is grocery anchored on our line of credit, honestly.

Speaker #2: So it's just like honestly, just a pain to sell it. You'd have to replace it with other things. We might have one more office building.

Speaker #2: Towards the end of the year, small office. You'll figure that one out. And then we're still holding the 60,000 square foot Ottawa office building.

Speaker #2: That's got debt on it, 2.9% until 2029. Could solid asset. I think it's still 80% occupied. I think we some other twos and fro's.

Speaker #2: So it's still performing very well. We have no need to fire sale that. That's a good asset. So yeah, nothing big planned at this time.

Gordon Lawlor: Yeah, nothing big planned at this time. Like I said, gonna try to put a few more assets on the books here with a little bit of room we have, then let the cash flow growth do its thing and keep these buildings leased, obviously.

Speaker #2: Like I said, going to try to put a few more assets on the books here with a little bit of room we have, and then let the cash flow growth do its thing and keep these buildings leased, obviously.

Tal Woolley: Got it. You can talk just a little bit about. There's been a lot of chatter around defense spending, and that matters a lot in, you know, markets in the east. I'm just wondering, you know, are you seeing sort of anything really translate on the ground yet in terms of demand, or how should we think about that tailwind, you know, maybe coming to the market over the next few years?

Speaker #7: Got it. And then maybe you can talk just a little bit about there's been a lot of chatter around defense spending, and that matters a lot.

Speaker #7: And markets in the East, I'm just wondering are you seeing sort of anything really translate on the ground yet in terms of demand, or how should we think about that tailwind maybe coming to the market over the next few years?

Gordon Lawlor: Yeah. I sat in on the Burnside leasing call Tuesday. Every 2 weeks, we have a detailed call where you go through every 2,000 feet, which is a bit painful, but in Zach's absence. I think there's some RFPs out there for some larger space and that. You know, I go around the country talking about the defense spending too. You know, I think where it'll help Halifax is construction around all of that. That's what Burnside is, construction related. You know, they're gonna let more people back in this country again, and they'll land in Halifax as well. I think it's really the defense spending because of what will go on around it versus, you know, a specific defense contractor taking space from our small bay standpoint at least, right?

Speaker #2: Yeah, I sat in on the Burnside Leasing call Tuesday. Every two weeks, we have a detailed call where you go through every 2,000, but—and Zach's absence.

Speaker #2: I think there's some RFPs out there for some larger space, and that I go around the country talking about the defense spending too. I think where it'll help Halifax is the construction around all of that.

Speaker #2: That's what Burnside is, construction-related. They're going to let more people back in this country again. And they'll land in Halifax as well. So I think it's really the defense spending because of what will go on around it versus a specific defense contractor taking space.

Gordon Lawlor: I think Killam would probably have that same view on that. I didn't listen to their call, but I think that's the piece of it. Just defense spending in general. I mean, we have 128,000 sq ft leased in Canada, Ontario. That's Thales, a French contractor that's related to the Halifax project. You know, they're in Ontario, so it's not specific to Halifax. It's just in general, it could help, you know, defense contractors across Canada taking more space. I think it'll be helpful.

Speaker #2: From our small base standpoint, at least, right? So I think Kilim would probably have that same view on that. I didn't listen to their call, but I think that's the piece of it.

Speaker #2: And then just defense spending in general. I mean, we have 128,000 square feet leased in Kanata, Ontario. That's Thales, French contractor. That's related to the Halifax project, but they're in Ontario.

Speaker #2: So it's not specific to Halifax. It's just in general. It could help defense contractors across Canada taking more space. I think it'll be helpful.

Tal Woolley: Just lastly on, you know, are you looking at any sort of developing more new nodes? Like, I think of something like Quebec City where, you know, I think you've got one property right now. Any interest in building out other sort of nodes within the portfolio over the next couple years?

Speaker #7: Okay. And then just lastly, are you looking at developing any more new nodes? I’m thinking of somewhere like Quebec City, where I think you’ve got one property right now.

Speaker #7: Any interest in building out other sort of nodes within the portfolio over the next couple of years?

Gordon Lawlor: Yeah, I mean, Quebec City's been on my list for like 15 years. It's just been hard to buy there. For those of you who have followed, you know that through the common RD of Blackstone, Pure has like 3 million square feet there. We have an interest in getting into that market eventually, as we think some of that real estate will come to fruition. That's definitely an area that we're interested in. I bid on a single tenant building here just last week. The ask was ridiculous, so I don't suspect we'll get anywhere. Yeah, we're cognizant of that market. We've been trying to understand the market rent in the last 3 to 6 months because the rents were pushed there for a while, and we think we've got that figured out now.

Speaker #2: Yeah, I mean, Quebec City has been on my list for like 15 years. It's just been hard to buy there. And for those of you who have followed, you know that through the common RDO, Blackstone, Pure has like 3 million square feet there.

Speaker #2: So we have an interest in getting into that market eventually, as we think some of that real estate will come to fruition. So that's definitely an area that we're interested in.

Speaker #2: I've been on a Singleton building here just last week. The ask was ridiculous, so I don't suspect we'll get anywhere. But yeah, we're cognizant of that market.

Speaker #2: We've been trying to understand the market rent in the last three to six months. Because the rents were pushed there for a while, and we think we've got that figured out now.

Gordon Lawlor: We're happy to look there a little more.

Tal Woolley: Okay. Anywhere else across the portfolio, Western Canada?

Speaker #2: So we're happy to look there a little more.

Gordon Lawlor: Yeah. I mean, I was out west. I was in Calgary for a few days last week. Liked the Calgary small bay market. Spent a whole day driving that. You know, there's some big bombers there out in Balzac area, north. All very fancy, all very shiny, kind of not our real estate. The Calgary small bay market seems to be doing quite well. I've got a trip planned to Edmonton in the next couple weeks as well to just test that back out. You know, the concept, as I said at the board yesterday, if we're trying to get to CAD 2 billion in assets, we have to look at some of these other secondary markets. You know, if you call Calgary and Edmonton secondary, Quebec City, you do, I guess.

Speaker #7: Okay. And anywhere else across the portfolio? Western Canada?

Speaker #2: Yeah. I mean, I was out west. I was in Calgary for a few days, last week. I like the Calgary small bay market. Spent a whole day driving that.

Speaker #2: There are some big bombers out there in the Balzac area, north. All very fancy, all very shiny, but kind of not our real estate. But the Calgary small bay market seems to be doing quite well.

Speaker #2: I've got a trip planned to Edmonton in the next couple of weeks as well to just test that back out. So the concept, as I said, of the board yesterday, if we're trying to get to 2 billion in assets, we have to look at some of these other secondary markets.

Gordon Lawlor: Yeah, we're just looking at those opportunities to see if any of it fits in our wheelhouse. It's an interesting time.

Speaker #2: If you call Calgary and Edmonton secondary, and Quebec City, you do, I guess. So yeah, we're just looking at those opportunities to see if any of it fits in our wheelhouse.

Tal Woolley: Okay. Thanks everyone. Appreciate the time.

Rachel Smith: Thank you.

Speaker #2: So it's an interesting time.

Operator: A reminder to please press star one if you do have any questions. Thank you. Next is Ziming Liu at Desjardins. Please go ahead.

Speaker #7: Okay. Thanks, everyone. Appreciate the time.

Speaker #8: Thank you.

Speaker #9: A reminder to please press star one if you do have any questions. Thank you. Next is Zeminlu at Desjardins. Please go ahead.

Ziming Liu: Hi. Good morning. On 2026 lease maturities, so very encouraged to see the strong lease spreads so far for almost 70% of those maturities. Do you expect to achieve similar spread for the rest of the 2026 maturities? Do you see any material non-renewal risks?

Speaker #10: Hi. Good morning. So on 2026, lease maturities. So very encouraged to see the strong leasing spread so far for almost 70% of those maturities.

Speaker #10: So, do you expect to achieve similar spread for the rest of the 2026 maturities? And do you see any material non-renewal risks?

Gordon Lawlor: I think if I look back to 2024, 2025, 2026, yesterday, we've had plus 30% across all of those years. We don't see any indication of that changing significantly. The 70% that's done, a big piece of that is, I think it comes in in September. It's about 325,000 sq ft from single tenant, temperature control building. That'd be more September that we'd see that cash flow. I think we may get 80,000 sq ft back in a building in Woodstock, Ontario, probably in Q2. That's just recent. That's great space. We've already got some interest in it already, some tours like just in the last number of weeks.

Speaker #2: I think we're going to—I mean, I look back to 2024, '25, '26—yesterday, we've had plus 30% across all of those years. We don't see any indication of that changing significantly.

Speaker #2: The 70% that's done, a big piece of that is, I think it comes in in September. It's about 325,000 square feet, some single-tenant temperature control building.

Speaker #2: So, that'd be more September that we'd see that cash flow. I think we may get 80,000 square feet back in a building in Woodstock, Ontario.

Speaker #2: Probably in Q2. That's just recent. That's great space. We've already got some interest in it already, some tours just in the last number of weeks.

Gordon Lawlor: That would be the only thing that's hitting us right now, probably mid-Q2.

Speaker #2: So that would be the only thing that's hitting us right now. Probably mid-Q2.

Ziming Liu: Okay. Yeah, thanks for the comment. Lastly, just on the acquisition, like what's your acquisition pipeline look like this year and in 2027? Which markets and type of assets like you are targeting, if any?

Speaker #10: Okay. Yeah. Thanks for the comment. So lastly, just on the acquisition, what's your acquisition pipeline look like this year and in 2027? And which markets and type of assets you are targeting, if any?

Gordon Lawlor: Yeah, I mean, we're small mid, a mid bay folks. That's what we're targeting. I mentioned briefly there's some Winnipeg assets in the market right now. We're gonna look at that. Quebec City is an area that's of interest. It's two and a half hours down the road from our head office here in Montreal. Halifax, you know, we'd look more. We have 35+% of the market there with our partners, so no need to do too much unless there was something interesting there. We have room for about $40 million in acquisitions right now. We announced the brand new asset, $12 million in Moncton, you know, at a 7 cap. That was really attractive brand new building for us.

Speaker #2: Yeah. I mean, so we're a small-made bay, mid-bay. Folks, so that's what we're targeting. I mentioned briefly there's some Winnipeg assets in the market right now.

Speaker #2: We're going to look at that. Quebec City is an area that's of interest. It's two and a half hours down the road from our head office here in Montreal.

Speaker #2: Halifax we'd look more we have 35-plus percent of the market there with our partners, so no need to do too much unless there was something interesting there.

Speaker #2: We have room for about 40 million in acquisitions right now. And then we announced the brand new asset $12 million in Moncton at a 7 cap.

Gordon Lawlor: It's just a mix of small and mid-bay assets around our regions. Ottawa is of interest. It's just hard to get assets there. There's a lot of real estate that's gonna come out, I think, here in 2026, so we're gonna be poised and looking at it all.

Speaker #2: So that's a really attractive, brand new building for us. So it's just a mix of small and mid-bay assets around our regions. Ottawa is of interest.

Speaker #2: It's just hard to get assets there. So, there's a lot of real estate that's going to come out, I think, here in '26.

Ziming Liu: Okay. Thank you. Thank you very much. I'll turn back. Thank you.

Speaker #2: So we're going to be poised and looking at it all.

Gordon Lawlor: Thank you.

Operator: Ladies and gentlemen, this concludes our question and answer period for today, as well as the conference call. We would like to thank you for attending and ask that you please disconnect your lines. Enjoy the rest of your day.

Speaker #10: Okay. Thank you. Thank you very much, Kyle, for coming back. Thank you.

Speaker #2: Thank you.

Speaker #9: Ladies and gentlemen, this concludes our question-and-answer period for today, as well thank you for attending and ask that you please disconnect your lines. Enjoy the rest of your day.

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