Q1 2026 Automotive Properties Real Estate Investment Trust Earnings Call

May 14, 2026

Operator: Good morning, ladies and gentlemen, welcome to Automotive Properties REIT's 2026 Q1 Results Conference Call and Webcast. At this time, all lines are in a listen-only mode. Following management's remarks, we will conduct a question and answer session. Please be aware that certain information discussed today may be forward-looking in nature. Such forward-looking information reflects the REIT's current views with respect to future events. Any such information is subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected in the forward-looking information. For more information on the risks, uncertainties, and assumptions relating to forward-looking information, please refer to the REIT's latest MD&A and annual information form, which are available on SEDAR+. Management may also refer to certain non-IFRS financial measures.

Speaker #1: Following management's remarks, we will conduct a question-and-answer session. Please be aware that certain information discussed today may be forward-looking in nature. Such forward-looking information reflects the REIT's current views with respect to future events.

Speaker #1: Any such information is subject to risks, uncertainties, and assumptions that could cause actual results to differ materially from those projected in the forward-looking information.

Speaker #1: For more information on the risks, uncertainties, and assumptions relating to forward-looking information, please refer to the REIT's latest MDNA and annual information form, which are available on Cedar Plus.

Speaker #1: Management may also refer to certain non-IFRS financial measures. Although the REIT believes these measures provide useful supplemental information about financial performance, they are not recognized measures and do not have standardized meanings under IFRS.

Operator: Although the REIT believes these measures provide useful supplemental information about financial performance, they are not recognized measures and do not have standardized meanings under IFRS. Please refer to the REIT's latest MD&A for additional information regarding non-IFRS financial measures. This call is being recorded on 14 May 2026. I would now like to turn the conference over to Milton Lamb, President and CEO. Please go ahead, Mr. Lam.

Speaker #1: Please refer to the REIT's latest MDNA for additional information regarding non-IFRS financial measures. This call is being recorded on May 14th, 2026. I would now like to turn the conference over to Milton Lamb, President and CEO.

Speaker #1: Please go ahead, Mr. Lamb.

Speaker #2: That's great. Thank you, John. And good morning, everyone. Thank you for joining us today. With me is Andrew Kalra, our Chief Financial Officer. Our strong First Quarter performance reflects the positive impact of the 13 property acquisitions we completed in 2025 for an aggregate purchase price of approximately $200 million.

Milton Lamb: That's great. Thank you, John, and good morning, everyone. Thank you for joining us today. With me is Andrew Kalra, our Chief Financial Officer. Our strong Q1 performance reflects the positive impact of the 13 property acquisitions we completed in 2025 for an aggregate purchase price of approximately CAD 200 million, and the partial contributions of the 2 additional property acquisitions completed during the Q1. Compared to Q1 of last year, our property rental revenue has increased by 21.7%. Cash NOI was up 19%. AFFO per unit diluted increased to CAD 0.262 from CAD 0.247. This represents a record quarterly AFFO per unit amount for APR, demonstrating the positive impact of our acquisitions and the embedded growth from contractual fixed or CPI-adjusted annual rent increases in our net lease structure.

Speaker #2: And the partial contributions of the two additional property acquisitions completed during the quarter. Compared to Q1 of last year, our property rental revenue has increased by 21.7%.

Speaker #2: Cash NOI was up 19%, and AFFO per unit diluted increased to 26.2 cents from 24.7 cents. This represents a record quarterly AFFO per unit amount for the APR, demonstrating the positive impact of our acquisitions and the embedded growth from contractual fixed or CPI-adjusted annual rent increases in our net lease structure.

Speaker #2: This is further reflected in a reduced AFFO payout ratio of 78.6% in the quarter even after our 2025 distribution increase. The two acquisitions we completed during the quarter—a full-service Hyundai dealership located in Quebec City and a Rivian tenanted sales-delivery and service facility—in Vista, San Diego County, California.

Milton Lamb: This is further reflected in a reduced AFFO payout ratio of 78.6% in the quarter, even after our 2025 distribution increase. The two acquisitions we completed during the quarter, a full-service Hyundai dealership located in Quebec City and a Rivian-tenanted sales, delivery and service facility in Vista, San Diego County, California. Subsequent to quarter end on 7 April, we completed our second property acquisition in Southern California, consisting of two Penske Automotive dealership properties in Santa Ana in Orange County. The dealerships are situated on parcels of land totaling approximately 6 acres within the Santa Ana Auto Mall, one of the area's premier dealership corridors. The dealerships include Audi South Coast, a 32,000 square foot full-service Audi dealership, and South Coast Volkswagen, a 29,000 square foot full-service VW dealership, both operated by Penske Automotive Group.

Speaker #2: Subsequent quarter-end on April 7th, we completed our second property acquisition in Southern California consisting of two Penske Automotive dealership properties in Santa Ana, in Orange County.

Speaker #2: The dealerships are situated on parcels of land totaling approximately six acres within the Santa Ana Auto Mall, one of the area's premier dealership corridors.

Speaker #2: The dealerships include Audi South Coast, a $32,000 square foot full-service Audi dealership; and South Coast Volkswagen, a $29,000 square foot full-service VW dealership, both operated by Penske Automotive Group.

Speaker #2: We expect our acquisitions from last year—sorry, and to date in 2026—to drive continued growth in our AFFO per unit going forward. At this point, I'd now like to turn it over to Andrew Kalra to review our financial results in greater detail.

Milton Lamb: We expect our acquisitions from last year, sorry, and to date in 2026 to drive continued growth in our AFFO per unit going forward. At this point, I'd now like to turn it over to Andrew Kalra to review our financial results in greater detail. Andrew.

Speaker #2: Andrew?

Speaker #3: Thanks, Milton. And good morning, everyone. Our property rental revenue for the quarter increased to million, from 23.9 million in Q1 a year ago reflecting growth from the properties acquired during and subsequent to Q1 last year and contractual annual rent increases.

Andrew Kalra: Thanks, Milton. Good morning, everyone. Our property rental revenue for the quarter increased to CAD 29.1 million from CAD 23.9 million in Q1 a year ago, reflecting growth from the properties acquired during and subsequent to Q1 last year and contractual annual rent increases. Total cash NOI and same-property cash NOI for the quarter totaled CAD 23.8 million and CAD 20.4 million, respectively, representing increases of 19% and 2.1% compared to Q1 last year. Interest expense and other financing charges for the quarter were CAD 7.3 million, an increase of CAD 1.3 million from Q1 last year, reflecting additional debt incurred to fund our acquisitions. Our G&A expenses were CAD 1.6 million for the quarter, an increase of CAD 0.1 million from Q1 last year, and in line with our expectations.

Speaker #3: Total cash NOI and same property cash NOI for the quarter total 23.8 million, and 20.4 million respectively representing increases of 19 and 2.1% compared to Q1 last year.

Speaker #3: Interest expense and other financing charges for the quarter were $7.3 million, an increase of $1.3 million from Q1 last year, reflecting additional debt incurred to fund our acquisitions.

Speaker #3: Our GNA expenses were 1.6 million for the quarter and increase of 0.1 million from Q1 last year and in line with our expectations. Net income and other comprehensive income was 25.3 million compared to 7.6 million in Q1 last year; the increase was primarily due to higher NOI, changes in non-cash fair value adjustments, for four investment properties, and interest rate swaps, partially offset by higher interest costs and the change in non-cash fair value adjustments for Class B units and unit-based compensation.

Andrew Kalra: Net income and other comprehensive income was CAD 25.3 million, compared to CAD 7.6 million in Q1 last year. The increase was primarily due to higher NOI changes in non-cash fair value adjustments for investment properties and interest rate swaps, partially offset by higher interest costs and the change in non-cash fair value adjustments for Class B units and unit-based compensation. FFO, AFFO increased by 20.4% and 19.1% respectively compared to Q1 last year, reflecting higher rental revenue from the acquisitions and contractual rent increases. On a per unit basis, FFO increased to CAD 0.268 diluted, up from CAD 0.251 in Q1 last year, and AFFO increased to CAD 0.262, up from CAD 0.247.

Speaker #3: FFO, AFFO increased by 20.4 and 19.1% respectively compared to Q1 last year reflecting higher rental revenue from the acquisitions, and contractual rent increases. On a per-unit basis, FFO increased to 26.8 cents diluted up from 25.1 cents in Q1 last year and AFFO increased to 26.2 cents up from 24.7 cents.

Speaker #3: We paid unit holder distribution totaling 20.6 cents per unit in the quarter representing an AFFO payout ratio of 78.6%. This compares with total distributions of 20.1 cents per unit in Q1 last year for a payout ratio of 81.4%.

Andrew Kalra: We paid unitholder distribution totaling CAD 0.206 per unit in the quarter, representing an AFFO payout ratio of 78.6%. This compares with total distributions of CAD 0.201 per unit in Q1 last year for a payout ratio of 81.4%. The decline in our payout ratio, despite the increase in our monthly cash distributions effective last year, 2025, demonstrates the positive impact of the properties we acquired and subsequent to Q1 last year and contractual rent increases. The cap rate applicable to our portfolio was 6.75% at quarter end, which was flat compared to 2025 year end, up slightly from 6.7% at the end of Q1 last year. We continue to be proactive with our debt strategy, limit with our exposure to interest rate fluctuation, enhance our financial flexibility.

Speaker #3: The decline in our payout ratio despite the increase in our monthly cash distributions effective last year, 2025, demonstrates the positive impact of the properties we acquired subsequent to Q1 last year and contractual rent increases.

Speaker #3: The cap rate applicable to our portfolio was 6.75% at quarter-end, which was flat compared to 2025 year-end, up slightly from 6.7% at the end of Q1 last year.

Speaker #3: We continue to be proactive with our debt strategy limit with our exposure to interest rate fluctuation and enhance our financial flexibility. During the quarter, we entered into floating-to-fixed interest rate swaps within facility three totaling 45 million for terms of five to seven years at rates between 4.45 and 4.59%.

Andrew Kalra: During the quarter, we entered into floating to fixed interest rate swaps within facility 3 totaling CAD 45 million for terms of 5 to 7 years at rates between 4.45% and 4.59%. We also increased the amount of the revolving portion of facility 1 by CAD 25 million, extended the maturity to June 2029 with the same credit spread. At quarter-end, we had a debt to GBV ratio of 46.3%, providing further acquisition capacity. As at 31 March 2026, 77% of our debt was fixed with a weighted average interest rate of 4.48%, a weighted average interest rate and mortgages remaining of 4.2 years, and a weighted average term maturity of debt of 2.8 years as we continue to increase and extend our credit facilities.

Speaker #3: We also increased the amount of revolving of the revolving portion of facility one by 25 million extended the maturity to June 2029 with the same credit spread.

Speaker #3: At quarter-end, we had a debt-to-GBV ratio of 46.3 providing further acquisition capacity. As at March 31st, 2026, 77% of our debt was fixed with a weighted average interest rate of 4.48%, a weighted average interest rate and mortgages remaining of 4.2 years.

Speaker #3: And a weighted average term maturity of debt of 2.8 years as we continue to increase and extend our credit facilities. As at May 13th, we had approximately 32.5 million of undrawn capacity under our credit facilities.

Andrew Kalra: As at 13 May, we had approximately CAD 32.5 million of undrawn capacity under our credit facilities, 13 unencumbered properties valued at approximately CAD 195.4 million. I'd like to turn the call back to Milton for closing remarks. Thank you very much.

Speaker #3: 13 unencumbered properties valued at approximately $195.4 million. I'd like to turn the call back to Milton for closing remarks. Thank you very much.

Speaker #2: Great. Thanks, Andrew. Following our entry into the US market last year, we're pleased with the increased geographic and tenant diversity we've established through our latest acquisition south of the border.

Milton Lamb: Great. Thanks, Andrew. Following our entry into the US market last year, we're pleased with the increased geographic and tenant diversity we've established through our latest acquisition south of the border. We now own properties in Ohio, Florida, and California, representing leading automotive brands, including Tesla, Rivian, and Penske Automotive with their Audi and VW properties. We continue to position APR.UN as an attractive partner to major automotive dealerships, groups, and OEMs in Canada and the United States. Following a highly active year of acquisitions in 2025 and a solid start to 2026, we're now approaching just under 100 properties in total of our portfolio with tenant leases with leading automotive groups and OEMs contributing to our cash flows in support of unit holder distributions.

Speaker #2: We now own properties in Ohio, Florida, and California representing leading automotive brands including Tesla, Rivian, and Penske Automotive with their Audi and VW properties.

Speaker #2: We continue to position APR as an attractive partner to major automotive dealerships groups and OEMs in Canada and the United States. Following an highly active year of acquisitions in 2025, and a solid start to 2026, we're now approaching just under 100 properties in total of our portfolio.

Speaker #2: With tenant leases with leading automotive groups and OEMs contributing to our cash flows in support of unit holder distributions. We are successfully executing on our key objectives.

Milton Lamb: We are successfully executing on our key objectives, including driving AFFO per unit and to build value for unit holders. We look forward to building our positive momentum in the year ahead, supported by growing property portfolio featuring high quality tenants, providing essential retail and services, 100% occupancy and rent collection, locations in prime metropolitan markets featuring GDP and population growth with attractive net lease structures and embedded fixed or CPI-adjusted rental growth. That now concludes our remarks. I'd like to open up the line for questions. Joanne, please go ahead.

Speaker #2: Including driving AFFO per unit and to build value for unit holders. We look forward to building our positive momentum in the year ahead supported by growing property portfolio featuring high-quality tenants, providing essential retail and services, 100% occupancy and rent collection, locations in prime metropolitan markets, featuring GDP and population growth, with attractive net lease structures, and embedded fixed or CPI-adjusted rental growth.

Speaker #2: That now concludes our remarks. I'd like to open up the line for questions. Joellen, please go ahead.

Speaker #4: Thank you. If you would like to ask a question, please press star followed by the number one on your telephone keypad. In the interest of time, we ask that you please limit yourselves to one question and one follow-up.

Operator: Thank you. If you would like to ask a question, please press star followed by the number 1 on your telephone keypad. In the interest of time, we ask that you please limit yourselves to one question and one follow-up. Thank you. Our first question comes from Jonathan Kelcher from TD Cowen. Please go ahead. Your line is open.

Speaker #4: Thank you. Our first question comes from Jonathan Kelcher from TD Cowen. Please go ahead if your line is open.

Speaker #5: Thanks, good morning.

Jonathan Kelcher: Thanks. Good morning.

Speaker #2: Good morning.

Milton Lamb: Good morning.

Speaker #5: The question's just on what sort of drives the activity in the US. I guess in Canada, a lot of your deals are sort of driven by dealer M&A.

Jonathan Kelcher: Question's just on what sort of drives the activity in the US. I guess in Canada, a lot of your deals are sort of driven by dealer M&A. How does that compare to the US?

Speaker #5: How does that compare to the US?

Milton Lamb: A, the US just has more metropolitan markets that have GDP and population growth. B, whether it's the underlying Section 1031's tax structure, One Big Beautiful Bill Act, there just tends to be a higher velocity of trading. People are more willing to take profits and losses. In Canada, people tend to buy assets and hold on to them for significant amounts of time, if not perpetuity. That's a lot of the reason why we end up being more active when it is a transaction related to M&A, where we stand beside dealers as they do the operations acquisition.

Speaker #2: A, the US just has more metropolitan markets that have GDP and population growth. But B, whether it's the underlying 1031s, tax structure, big, beautiful bill, there just tends to be a higher velocity of trading.

Speaker #2: People are more willing to take profits and losses. Where in Canada, people tend to buy assets and hold on to them for significant amounts of time, if not perpetuity.

Speaker #2: That's a lot of the reason why we end up being more active when it is a transaction related to M&A. Where we stand beside dealers as they do the operations acquisition.

Speaker #5: Okay. And do you see that opportunity with some of the groups you're talking to in the US?

Jonathan Kelcher: Okay. Do you see that opportunity with some of the groups you're talking to in the US?

Speaker #2: I think that M&A side will be in common on both sides of the border. But there's just a lot more velocity in the States and there's just larger markets.

Milton Lamb: I think that M&A side will be in common on both sides of the border. There's just a lot more velocity in the States, and there's just larger markets. The M&A theme that we've been active in growing and built a good portfolio working with dealers, that I think will occur on both sides of the border.

Speaker #2: But the M&A theme that we have been active and growing and built a good portfolio working with dealers that I think will occur on both sides of the border.

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

Jonathan Kelcher: Okay, thanks. I'll turn it back.

Speaker #4: Our next question comes from Syram Srinivas from APB Cormark. Please go ahead. Your line is open.

Operator: Our next question comes from Sairam Srinivas from ATB Cormark. Please go ahead. Your line is open.

Speaker #6: Thank you, Abrida. Guys, obviously, going back to the question on the US acquisitions, when you kind of put that in line with OEM requirements and capital requirements in the business, do you find the dealerships in the US being a lot more intense in terms of online capital commitments and actually investing a lot of capital into their assets versus in Canada it's probably not as much?

Sairam Srinivas: Thank you, operator. Guys, obviously, going back to the question on the US acquisitions, when you kind of put that in line with OEM requirements and capital requirements in the business, do you find the dealerships in the US being a lot more intense in terms of, you know, owning capital commitments and actually investing a lot of capital into their assets versus in Canada, it's probably not as much. Is that something you're seeing?

Speaker #6: Is that something you're seeing?

Speaker #2: No, I'd actually say it's flipped a bit. Canada has a bit of a higher cost component to both the underlying land, depending on the market, but it's certainly in the markets we're looking at on the Toronto, Vancouver's, s, Montreal's, Calgary's.

Milton Lamb: No, I'd actually say it's flipped a bit. Canada has a bit of a higher cost component to both the underlying land, depending on the market, but it's certainly in the markets we're looking at on the Toronto, Vancouvers, Montreals, and Calgaries. Construction costs are greater in Canada. The OEM requirements are pretty similar, but the cost to complete those requirements, I would say, often are higher in Canada.

Speaker #2: And then construction costs are greater in Canada. So the OEM requirements are pretty similar but the cost to complete those requirements I would say often are higher in Canada.

Sairam Srinivas: Fair enough. That's good. Thanks. Might as well turn it back.

Speaker #5: All right. That's good. Thanks, Milton. I'll turn it back.

Speaker #4: Our next question comes from Brad Sturgis from Raymond James. Please go ahead. Your line is open.

Operator: Our next question comes from Brad Sturges from Raymond James. Please go ahead. Your line is open.

Speaker #5: Hey, good morning.

Brad Sturges: Hey, good morning.

Speaker #2: Good morning, Brad.

Milton Lamb: Good morning, Brad.

Speaker #5: Just on the Orange County, Orange County acquisition, I think the rent growth, the contractual rent growth is based on California CPI, but there's a cap.

Brad Sturges: Just on the Orange County, Orange County acquisition, I think the rent growth, the contractual rent growth is based on California CPI, but there's a cap. I'm just curious if you could give a little more color how the cap would work?

Speaker #5: I'm just curious if you give a bit more color how the cap would work.

Milton Lamb: We can't and don't get into specifics, but it's similar to other caps where you've got a maximum. And that is, you know, that CPI kicks in on the renewal. It's a roll-up formula at that point. You know, similar to what we have with Daysource, the one we recently did as well. It's not that uncommon in the market where you get a bit of a floor and a cap.

Speaker #2: We can't and don't get into specifics, but it's similar to other caps where you've got a maximum. And that is that CPI kicks in on the renewal.

Speaker #2: So it's a roll-up formula at that point. It's similar to what we have with DaySource. The one we recently did as well. So it's not that uncommon in the market where you get a bit of a floor and a cap.

Speaker #5: Gotcha. Okay. I guess my other question is, is there any update at this point on Vaughn whether strategically you're looking at releasing or a potential asset sale?

Brad Sturges: Gotcha. Okay. I guess my other question is there any update at this point on Vaughan, whether strategically you're looking at re-leasing or a potential asset sale?

Speaker #2: Yeah. We talked about it's not that long ago when we did the end-of-year call. It's amazing how quick this Q1 creeps up on us.

Milton Lamb: You know, we talked about it. It's not that long ago when we did the end of year call. It's amazing how quickly this Q1 creeps up on us. The short answer is we're trying to balance the fact that 3 acres of land there has got great high density potential, but it's also got great retail value. It's, you know, where, how much do we want to invest for a long-term tenancy? Can we get a termination option to allow us to potentially access that density sooner? Do we do a shorter-term deal that has, you know, immediate access to that when we want it? As you can imagine, it's a bit of a balancing act. The good news is it's a great property, we're doing some head scratching in a good way.

Speaker #2: But the short answer is we're trying to balance the fact that three acres of land there is got great high-density potential, but it's also got great retail value.

Speaker #2: So it's where, how much do we want to invest for a long-term tenancy? Can we get a termination option to allow us to potentially access that density sooner?

Speaker #2: Or do we do a shorter-term deal that has immediate access to that when we want it? As you can imagine, it's a bit of a balancing act.

Speaker #2: The good news is it's a great property. So we're doing some head-scratching in a good way.

Speaker #5: Okay. I'll turn it back. Thank you.

Brad Sturges: Okay. Turning back. Thank you.

Speaker #4: Our next question comes from Jimmy Shawn from RBC Capital Markets. Please go ahead. Your line is open.

Operator: Our next question comes from Jimmy Shan from RBC Capital Markets. Please go ahead. Your line is open.

Jimmy Shan: Thanks. We saw, last quarter, the W. P. Carey deal, with Go Auto. Obviously, they have, you know, a little bit lower cost of capital.

Jimmy Shan: Thanks. We saw, last quarter, the W. P. Carey deal, with Go Auto. Obviously, they have, you know, a little bit lower cost of capital. Them or any new entrants sort of changing the competitive landscape in getting deals. Do you see change in pricing on deals? Any thoughts there?

Speaker #6: Thanks. So we saw last quarter the W. P. Carey deal with Go Auto. Obviously, they have a lower cost of capital. Do you see them or any new entrants sort of changing the competitive landscape in getting deals?

Jimmy Shan: Them or any new entrants sort of changing the competitive landscape in getting deals. Do you see change in pricing on deals? Any thoughts there?

Speaker #6: Do you see change in pricing on deals? Any thoughts there?

Milton Lamb: Yeah. It's interesting. I mean, that was a very large deal. Certainly where we're trading right now at a discount to NAV has some implications. GoAuto's an existing tenant of ours, so obviously we know them. You know, the lower cost of capital on access to bonds for a few groups, they have to be larger transactions or often would be larger transactions. There is also drainage because of Canada's tax system when you're bringing that money into the States. That's the first deal in a while that we've seen someone come up and play in our sandbox. You know, is there gonna be competition? Sure. Is it something that makes us worry? We've been very active on our pipeline.

Speaker #2: Yeah. It's interesting. I mean, that was a very large deal. And certainly, where we're trading right now at a discount to NAV has some implications GoAuto's an existing tenant of ours.

Speaker #2: So, obviously, we know them. The lower cost of capital on access to bonds for a few groups—they have to be larger transactions, or often would be larger transactions.

Speaker #2: But there is also drainage because of Canada's tax system when you're bringing that money into the States. That's the first deal in a while that we've seen someone come up and play in our sandbox.

Speaker #2: Is there going to be competition? Sure. Is it something that makes us worry? We've been very active on our pipeline. So in some ways, it's confirmational.

Milton Lamb: You know, in some ways it's confirmational, in other ways it just shows that we continue to have discipline, and continue to have access to markets to place money in attractive real estate.

Speaker #2: In other ways, it just shows that we continue to have discipline, and continue to have access to markets to place money in attractive real estate.

Speaker #6: Okay. And sorry, my follow-up would be just a different question. Basic question. Maybe for Andrew. Sequentially, the interest expense declined from Q4 to Q1.

Jimmy Shan: Okay. Sorry, my follow-up would be just a different question, basic question.

Milton Lamb: Yeah

Jimmy Shan: maybe for Andrew. Sequentially, the interest expense declined from Q4 to Q1. The balance went up. I'm just curious, what's the dynamic there?

Speaker #6: That balance went up. I'm just curious what's the dynamic there.

Andrew Kalra: The dynamic there is, there's more floating in Q1, and the floating rate's considerably lower. When we did buy the acquisitions, we bought them on revolving. That's basically the difference there.

Speaker #2: The dynamic there is there's more floating. In Q1, and the floating rates are considerably lower. So when we did buy the acquisitions, we bought them on revolving.

Speaker #2: And that's basically the difference there.

Speaker #6: Okay. And so we should expect that to keep it floating?

Jimmy Shan: Okay. We should expect that to You gonna keep it floating?

Speaker #2: Yeah. The strategy has always been to use the revolver for the acquisitions, and then to play swaps. We did that at the beginning of the year.

Andrew Kalra: Yeah. The strategy's always been to use the revolver for the acquisitions and then to play swaps. We did that at the beginning of the year, we were probably averaging, let's say, between four and a half to five year to six year money. Since the conflict, we've seen the five to seven year go up about 50 basis points. The anticipation is that we'll hope to taper off by the end of the year, we'll see the long-term swap rates come down to where we're averaging. The opportunity with our credit facility is that we can react relatively very quickly, play swaps and move that floating to fixed. It provides us with considerable amount of flexibility.

Speaker #2: And we were probably averaging, let's say, between four and a half to five year to six year money. And since the conflict, we've seen the five to seven year go up about 50 basis points.

Speaker #2: The anticipation is that we'll hope to taper off by the end of the year. And we'll see the long-term swap rates come down to where we're averaging the opportunity with our credit facility is that we can react relatively very quickly and play swaps and move that floating to fixed.

Speaker #2: So it provides us with considerable amount of flexibility.

Speaker #5: All right. Okay. Makes sense. Thanks.

Jimmy Shan: All right. Okay. Makes sense. Thanks.

Speaker #2: Okay.

Andrew Kalra: Okay.

Speaker #4: For any additional questions, please press star followed by one. Our next question comes from Ximen Liu from Zhejiang Bay. Please go ahead. Your line is open.

Operator: Our next question comes from Zemin Lu from Zhijia Bank. Please go ahead, your line is open.

Speaker #5: Hi. Good morning. So I just want to turn to Canada. How does the DeLorey acquisition pipeline look like?

Zemin Lu: Hi. Good morning. I just want to turn to Canada, like how does the Dilawri acquisition pipeline looks like?

Zemin Liu: Hi. Good morning. I just want to turn to Canada, like how does the Dilawri acquisition pipeline looks like?

Milton Lamb: We continue to have a strategic alliance with them. As they continue to grow, we anticipate and hope that we'll do more deals with them. Again, they are the largest group, and we certainly have good relationship with them. Unlike grocery and other industries within Canada, we have to work with a large number of dealership groups. The very nature of, you know, the largest being, you know, 3% market share, and we already own the vast majority of the real estate, we anticipate there's gonna be as many or probably a lot more outside of the Dilawri Group that we'll continue to be active with.

Speaker #2: Yeah. They continue to be we continue to have a strategic alliance with them. As they continue to more deals with them. But again, they are the largest group.

Speaker #2: And we certainly have good relationship with them. But unlike grocery and other industries within Canada, we have to work with a large number of dealership groups.

Speaker #2: So the very nature of the largest being 3% market share and we already own the vast majority of the real estate. We anticipate there's going to be as many or probably a lot more outside of the DeLorey group that will continue to be active with.

Speaker #5: Okay. That's very helpful. So another question is that I'm just wondering whether there's any other leases really in 2026. And those or can you remind us of the NOY impact of the SAF lease expiry?

Zemin Lu: Okay. That's very helpful. Another question is that I'm just wondering whether there's any other leases rolling in 2026. Can you remind us about the NOI impact of the SAS lease expiry?

Zemin Liu: Okay. That's very helpful. Another question is that I'm just wondering whether there's any other leases rolling in 2026. Can you remind us about the NOI impact of the SAS lease expiry?

Speaker #2: I don't think we've been specific on the NOY impact. But a little scratching and I'm sure everyone around this call can figure it out approximately.

Milton Lamb: I don't think we've been specific on the NOI impact, but a little scratching and I'm sure everyone around this call can figure it out approximately. That is the only outstanding 2026 lease expiration. We have very little that has in 2027 as well.

Speaker #2: That is the only outstanding 2026 lease expiration. And we have very little that has in '27 as well.

Speaker #5: Okay. That's good. Yeah. I'll turn it back. Thank you.

Zemin Lu: Okay. That's good. Yeah, I'll turn it back. Thank you.

Zemin Liu: Okay. That's good. Yeah, I'll turn it back. Thank you.

Speaker #2: Thank you.

Milton Lamb: Thank you.

Speaker #4: And we have no further questions. I'd like to turn the call back over to Milton Lamb for any closing remarks.

Operator: We have no further questions. I'd like to turn the call back over to Milton Lamb for any closing remarks.

Speaker #2: That's great. Thank you, everyone. We look forward to getting back on a call for Q2. Enjoy the long weekend.

Milton Lamb: That's great. Thank you, everyone. We look forward to getting back on a call for Q2. Enjoy the long weekend.

Operator: This concludes today's conference call. Thank you for your participation. You may now disconnect.

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Q1 2026 Automotive Properties Real Estate Investment Trust Earnings Call

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Event Details

Automotive Properties

APR_u.TO

Earnings

Q1 2026 Automotive Properties Real Estate Investment Trust Earnings Call

Thursday, May 14th, 2026 at 1:00 PM

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Automotive Properties

Earnings