Q2 2026 Morguard Real Estate Investment Trust Earnings Call

July 30, 2026

Speaker #3: Good afternoon, ladies and gentlemen, and welcome to the Morguard Real Estate Investment Trust 2026 Second Quarter Results Conference Call. At this time, all lines are in a listen-only mode.

Operator 2: Good afternoon, ladies and gentlemen, and welcome to the Morguard Real Estate Investment Trust Q2 2026 results conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on 30 July 2026. I would now like to turn the conference over to Andrew Tamlin, your Chief Executive Officer. Please go ahead.

Operator: Good afternoon, ladies and gentlemen, and welcome to the Morguard Real Estate Investment Trust Q2 2026 results conference call. At this time, all lines are in a listen-only mode. Following the presentation, we will conduct a question and answer session. If at any time during this call you require immediate assistance, please press star zero for the operator. This call is being recorded on 30 July 2026. I would now like to turn the conference over to Andrew Tamlin, your Chief Executive Officer. Please go ahead.

Speaker #3: Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press star 0 for the operator.

Speaker #3: This call is being recorded on Thursday, July 30, 2026. I would now like to turn the conference over to Andrew Tamlin, your Chief Executive Officer.

Speaker #3: Please go ahead.

Speaker #4: Thank you, and good afternoon, everyone. My name is Andrew Tamlin, Chief Financial Officer of Morguard REIT. Welcome to the Morguard REIT Second Quarter 2026 Earnings Conference Call.

Andrew Tamlin: Thank you, and good afternoon, everyone. My name is Andrew Tamlin, Chief Financial Officer of Morguard REIT. Welcome to the Morguard REIT Q2 2026 earnings conference call. I am joined this afternoon by John Ginis, Vice President of Retail Asset Management, Tom Johnston, Senior VP of Western Office Asset Management, and Todd Febbo, Senior VP Office and Asset Management of Eastern Canada. Thank you all for taking the time to join the call. Before we jump into the call, I would like to point out that our comments will mostly refer to the Q2 2026 MD&A and financial statements, which have been posted to our website. I refer you specifically to the cautionary language at the front of the MD&A, which would also apply to any comments that we make on this call.

Speaker #4: I am joined this afternoon by John Guinness, Vice President of Retail Asset Management; Tom Johnson, CRVP of Western Office Asset Management; and Todd Fabbo, Senior Vice President of Office Asset Management for Eastern Canada.

Speaker #4: Thank you all for taking the time to join the call. Before we jump into the call, I would like to point out that our comments will mostly refer to the second quarter 2026 MD&A and financial statements, which have been posted to our website.

Speaker #4: I refer you specifically to the cautionary language at the front of the MD&A, which would also apply to any comments that we make on this call.

Speaker #4: Our second quarter results have exceeded expectations and reflect solid combined same-asset growth of 7.5% for the quarter. We continue to see a rebound in our office results, and our retail results have continued to produce solid growth in a resilient sector.

Andrew Tamlin: Our Q2 results have exceeded expectations and reflect solid combined same asset growth of 7.5% for the quarter. We continue to see a rebound in our office results, and our retail results have continued to produce solid growth in a resilient sector. The REIT's net operating income for the Q2 was CAD 27.1 million, which was up 5.5% from CAD 25.7 million in 2025. Year-to-date 2026 net operating income was up 2.5% over 2025. While our office results include a couple of large vacancies in two of our Ottawa and Vancouver assets, they continue to reflect the increased demand for office space as companies continue to look for return-to-work options. There also continues to be solid growth in our Penn West Plaza results as we move past the initial period of 2025 inducements provided for the lease-up of this building.

Speaker #4: The REIT's net operating income for the second quarter was $27.1 million, which was up 5.5% from $25.7 million in 2025. Year-to-date 2026 net operating income was up 2.5% over 2025.

Speaker #4: While our office results include a couple of large vacancies in two of our Ottawa and Vancouver assets, they continue to reflect the increased demand for office space as companies continue to look for return-to-work options.

Speaker #4: There also continues to be solid growth in our Penwest Plaza results, as we move past the initial period of 2025 inducements provided for the lease-up of this building.

Speaker #4: PENWEST Plaza's NOI grew by $1.2 million in the second quarter and remains at approximately 80% occupancy. As mentioned, our office net operating income includes the decrease of 84,000 square feet in space that was returned to the landlord on two separate occasions at the beginning of the year.

Andrew Tamlin: Penn West Plaza's NOI grew CAD 1.2 million in the Q2 and remains at approximately 80% occupancy. As mentioned, our office net operating income includes the decrease of 84,000 square feet in space that was returned to the landlord in two separate occasions at the beginning of the year. We believe these two vacancies will be short-term in nature as both buildings are well located in favorable, in-demand urban areas. All of our other individual office assets are seeing either similar or improved occupancy from a year ago and is consistent with the larger trend of companies imposing back to the office policies. From a retail perspective, we have had good success in continuing to add other quality retail tenants in the last 12 months throughout the portfolio. Further positive leasing spreads throughout 2025 have also helped to improve the retail NOI into 2026.

Speaker #4: We believe these two vacancies will be short-term in nature, as both buildings are well-located and in high-demand urban areas. All of our other individual office assets are seeing either similar or improved occupancy compared to a year ago, which is consistent with the larger trend of companies imposing back-to-the-office policies.

Speaker #4: From a retail perspective, we have had good success in continuing to add other quality retail tenants in the last 12 months throughout the portfolio.

Speaker #4: Further, positive leasing spreads throughout 2025 have also helped to improve the retail NOI into 2026. Our community strip portfolio continues to produce solid same-store growth of 5.9% for the quarter and 2.4% year-to-date, and is effectively operating at 100% occupancy.

Andrew Tamlin: Our community strip portfolio continues to produce solid same store growth of 5.9% for the quarter and 2.4% year to date, and are effectively operating at 100% occupancy. Our enclosed malls have seen improved same asset growth of 2.5% for the quarter and 3% year to date. Looking at the remainder of 2026, we do expect our retail results to remain stable. While we are working through the Missing Bay income, we are still seeing positive retail fundamentals. Further, we are working on some retail developments, which I will touch on in a few minutes. Both traffic and sales per square foot numbers in our portfolio have been solid. Turning to financing and liquidity, the trust is CAD 61 million in liquidity at the end of the quarter, which is unchanged from Q1 and down slightly from CAD 68 million at the end of 2025.

Speaker #4: Our enclosed models have seen improved same-asset growth of 2.5% for the quarter and 3% year-to-date. Looking at the remainder of 2026, we do expect our retail results to remain stable.

Speaker #4: While we are working through the missing-bay income, we are still seeing positive retail fundamentals. Further, we are working on some retail developments, which I will touch on in a few minutes.

Speaker #4: Both traffic and sales per square foot numbers in our portfolio have been solid. Turning to financing and liquidity, the Trust is at $61 million in liquidity at the end of the quarter, which is unchanged from Q1 and down slightly from $68 million at the end of 2025.

Speaker #4: The trust also has $219 million in unencumbered assets, along with some up-financing opportunities into 2026 and 2027. The trust's interest expense declined by $240,000 in the second quarter of 2026 over 2025, mainly due to some lower interest rates on mortgage renewals and short-term interest rates.

Andrew Tamlin: The trust is also CAD 219 million in unencumbered assets, along with some up financing opportunities into 2026 and 2027. The trust interest expense declined CAD 240,000 in Q2 of 2026 over 2025, mainly due to some lower interest rates on mortgage renewals and short-term interest rates. During 2026, the trust has renewed four mortgages totaling CAD 103 million, with a slightly higher average rate upon renewal. The trust has approximately 22% of its debt as variable at the end of the quarter, which has increased slightly from 21% at the end of the year. We do expect to see an opportunity for additional up financing in 2026, as we are currently in discussions with lenders about some upcoming mortgage renewals.

Speaker #4: During 2026, the Trust has renewed four mortgages totaling $103 million, with a slightly higher average rate upon renewal. The Trust has approximately 22% of its debt as variable at the end of the quarter, which has increased slightly from 21% at the end of the year.

Speaker #4: We do expect to see an opportunity for additional up-financing in 2026, as we are currently in discussions with lenders about some upcoming mortgage renewals.

Speaker #4: In general, we have seen the lending market open up more in the last couple of years, with lower spreads, especially on attractive assets, along with lenders being more open to looking at office finance opportunities.

Andrew Tamlin: In general, we have seen the lending market open up more in the last couple of years with lower spreads, especially on attractive assets, along with lenders being more open to looking at office finance opportunities. As mentioned in past quarters, the trust's operating capital reserve has been established to be CAD 35 million in 2026, which is unchanged from 2025. This equates to CAD 17.5 million for the six months year to date. Actual cash spent for the quarter amounted to only CAD 11.4 million, which is typical to have slower capital spending during H1. We do expect to spend the full amount of the reserve by the end of the year, though. Our overall occupancy level of 85.2% at the end of Q2 2026 has increased 40 basis points from 84.8% at the end of Q1.

Speaker #4: As mentioned in past quarters, the Trust's operating capital reserve has been established at $35 million in 2026, which is unchanged from 2025. This equates to $17.5 million for the six-month year-to-date period.

Speaker #4: Actual cash spent for the quarter amounted to only $11.4 million, which is typical, as capital spending is often slower during the first half of the year.

Speaker #4: We do expect to spend the full amount of the reserve by the end of the year, though. Our overall occupancy level of 85.2% at the end of the second quarter of 2026 has increased 40 basis points from 84.8% at the end of Q1.

Speaker #4: Retail occupancy has increased by 60 basis points, and office occupancy has increased by 100 basis points since the first quarter. We continue to expect these percentages to rise in the coming quarters, as additional leasing deals are booked.

Andrew Tamlin: The retail occupancy has increased 60 basis points, and the office occupancy has increased 100 basis points since Q1. We continue to expect this percentage to rise in the coming quarters as additional leasing deals get booked. We believe that the decline in industrial occupancy is temporary and will be reversing in the short term. In looking at the 764,000 in remaining square feet that is coming up for renewal in the last two quarters of 2026, we feel good about the vast majority of this space. For tenant renewals greater than 10,000 square feet, there is only one small tenant that is at risk of not renewing. Looking quickly at 2027 for the same tenant threshold, it is a similar story with only a couple of smaller office industrial type tenants that are at risk, none of which will be overly impactful.

Speaker #4: We believe that the decline in industrial occupancy is temporary and will be reversing in the short term. In looking at the 764,000 square feet remaining that is coming up for renewal in the last two quarters of 2026, we feel good about the vast majority of this space.

Speaker #4: For tenant renewals greater than 10,000 square feet, there is only one small tenant that is at risk of not renewing. Looking quickly at 2027, for the same tenant threshold, it is a similar story with only a couple of smaller office-industrial type tenants that are at risk.

Speaker #4: None of which will be overly impactful. As mentioned in past quarters, we are now embarking on a strategic merchandising program for Saint-Laurent, which will see the addition of some new nationally recognized brand names being added to the tenant roster, along with expansion plans for other tenants on the existing rent roll.

Andrew Tamlin: As mentioned in past quarters, we are now embarking on a strategic merchandising program for St. Laurent, which will see the addition of some new nationally recognized brand names being added to the tenant roster, along with expansion plans for other tenants on the existing rent roll. The current development spend in the amount of approximately CAD 6 million to date includes build-outs for tenants such as Sephora and H&M. These are all now open, and we have received very positive reviews about their impact. We ultimately expect to spend in the range of CAD 25 million to 30 million as we look to add more discriminating tenants and also look to activate the former Sears space at St. Laurent. This work will also include the demolition of the former Sears parking deck, which is no longer needed and has exceeded its useful life.

Speaker #4: The current development spend, in the amount of approximately $6 million to date, includes build-outs for tenants such as Sephora and H&M. These are all now open, and we have received very positive reviews about their impact.

Speaker #4: We ultimately expect to spend in the range of $25 million to $30 million as we look to add more discriminating tenants and also look to activate the former Sears space at Saint-Laurent.

Speaker #4: This work will also include the demolition of the former Sears parking deck, which is no longer needed and has exceeded its useful life. We are now pleased to announce the following mix of tenants, which will be opening between now and the end of 2027.

Andrew Tamlin: We are now pleased to announce the following mix of tenants, which will be opening between now and the end of 2027. Currently, we are nearing completion of the new Uniqlo premises, which is 12,600 square feet and is scheduled to open early in 2027. We are also pleased to announce that the former Sears box will be re-tenanted and will include a new Sport Chek and Splitsville. The Sport Chek is a relocation of an existing tenant and will be a great complement to Splitsville, who is opening a new entertainment option at St. Laurent. This work has begun, and both tenants are scheduled to open in approximately one year from now. The trust has also had two No Frills grocery deals which have been undertaken.

Speaker #4: Currently, we are nearing completion of the new UNIQLO premises, which is 12,600 square feet, and is scheduled to open early in 2027. We are also pleased to announce that the former Sears box will be re-tenanted and will include a new Sport Chek and Splitsville.

Speaker #4: The Sport Chek is a relocation of an existing tenant, and will be a great complement to Splitsville, which is opening a new entertainment option at Saint-Laurent.

Speaker #4: This work has begun, and both tenants are scheduled to open in approximately one year from now. The trust has also had two No Frills grocery deals, which have been undertaken.

Speaker #4: During the fourth quarter of 2025, a new no-frills grocery store opened at Parkland Mall in Red Deer, and we are now seeing the income from that space.

Andrew Tamlin: During Q4 2025, a new No Frills grocery store opened at Parkland Mall in Red Deer, and we are now seeing the income for that space. The cost was CAD 1.6 million and activated previously vacant space. We are quite pleased with this outcome. There is also a new No Frills opening at the center in Saskatoon in early 2027 with a cost of approximately CAD 5 million. The trust believes that both of these new popular grocery options will be strong additions to these malls. The trust will also be re-tenanting the old Peavey Mart box at our open retail asset in Airdrie. The new tenant will be a gym operator, and this will represent a combined spend of approximately CAD 1.5 million and will be quite accretive to the income of the REIT starting in 2027.

Speaker #4: The cost was $1.6 million and activated previously vacant space. We are quite pleased with this outcome. There is also a new No Frills opening at the center in Saskatoon in early 2027, with a cost of approximately $5 million.

Speaker #4: The Trust believes that both of these new, popular grocery options will be strong additions to these malls. The Trust will also be re-tenanting the old PV Mart box at our open-air retail asset in Airdrie.

Speaker #4: The new tenant will be a gym operator, and this will represent a combined spend of approximately $1.5 million. It will be quite accretive to the income of the REIT, starting in 2027.

Speaker #4: Wrapping up, we continue to believe that there are strong fundamentals in the retail leasing environment, and that the office market is in full rebound mode.

Andrew Tamlin: Wrapping up, we continue to believe that there are strong fundamentals in the retail leasing environment, and that the office market is in full rebound mode. We are looking forward to continued positive leasing conversations for all of our assets. Most of our enclosed malls remain dominant in their geographical area, and our strip malls, which are largely grocery anchored, have performed very steady. Beyond our retail assets, we have high-quality office buildings in Canada's largest markets with a high degree of government office tenants. We continue to be positive about our business and the objective of building value for our unitholders, and we look forward to continuing to execute our strategy and thank you for your continued support. We will now open the floor to questions.

Speaker #4: We are looking forward to continued positive leasing conversations for all of our assets. Most of our enclosed malls remain dominant in their geographical areas and our strip malls, which are largely grocery-anchored, have performed very steadily.

Speaker #4: Beyond our retail assets, we have high-quality office buildings in Canada's largest markets, with a high degree of government office tenants. We continue to be positive about our business and the objective of building value for our unitholders. We look forward to continuing to execute our strategy, and thank you for your continued support.

Speaker #4: We will now open the floor to questions.

Speaker #1: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the number 1 on your touch-tone phone.

Operator 2: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the number one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star followed by the number two. If you are using a speakerphone, please lift the handset before pressing any key. One moment please for your first question. Your first question comes from the line of Jonathan Kelcher from TD Cowen. Your line is now open.

Operator: Thank you. Ladies and gentlemen, we will now begin the question and answer session. Should you have a question, please press the star followed by the number one on your touchtone phone. You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star followed by the number two. If you are using a speakerphone, please lift the handset before pressing any key. One moment please for your first question. Your first question comes from the line of Jonathan Kelcher from TD Cowen. Your line is now open.

Speaker #1: You will hear a prompt that your hand has been raised. Should you wish to decline from the polling process, please press the star, followed by the number 2.

Speaker #1: If you are using a speakerphone, please lift the handset before pressing the N key. One moment, please, for your first question. Your first question comes from the line of Jonathan Kelcher from TD Cowen.

Speaker #1: Your line is now open.

Speaker #2: Thanks. Good afternoon. First question, just on the Saint-Laurent Center: with, I guess, the new tenants—and you're saying that's going well—how is that impacting your negotiations with other tenants on renewals, and getting new tenants into some of the empty spaces there?

Jonathan Kelcher: Thanks. Good afternoon. First question, just on the St. Laurent Center. With, I guess, the new tenants, and you're saying that's going well, how is that impacting your negotiations with other tenants on renewals and getting new tenants into some of the empty spaces there?

Speaker #3: Do you mind taking that, John?

Andrew Tamlin: Do you mind taking that, John?

Speaker #2: Sure.

John Ginis: Sure. No problem. Thanks, Andrew, and thanks, Jonathan, for the question. St. Laurent Center has been a key center for the REIT from a retail perspective for an extended period of time. As Andrew said in his opening remarks, we have initiated a remerchandising program over almost a year and a half ago, and we are trying to target large national or international tenants to complement the roster that exists there today. To directly answer your question in terms of how the retailing community is receiving what we're doing, productivity of the shopping center is up because foot traffic is up. Foot traffic is up about 10%, sales productivity from the small bay inline tenants is also up by approximately 10%. It's all positive trending.

Speaker #3: No problem. Thanks, Andrew. And thanks, John, for the question. So, Saint-Laurent Center has been a key center for the REIT from a retail perspective for an extended period of time, and as Andrew said in his opening remarks, we have initiated a re-merchandising program almost a year and a half ago.

Speaker #3: And we are trying to target large national or international tenants to complement the roster that exists there today. To directly answer your question in terms of how the retailing community is receiving what we're doing: productivity of the shopping center is up because foot traffic is up.

Speaker #3: And foot traffic is up about 10%, and then sales productivity from the small-bay inline tenants is also up by approximately 10%. So it's all positive trending.

Speaker #3: And with respect to renewals, clearly—and this goes back to, again, Andrew's introductory remarks—we're seeing some really good, positive leasing spreads with respect to all of our enclosed assets, or the vast majority, I should say. But specifically Saint-Laurent, because obviously they see the value of the long-term benefits of re-anchoring the shopping center.

John Ginis: With respect to renewals, clearly, and this goes back to, again, Andrew's introductory remarks, we're seeing some really good positive leasing spreads with respect to all of our enclosed assets, or the vast majority, I should say, but specifically St. Laurent, because obviously they see the value of the long-term benefits of re-anchoring the shopping center. We still have a lot of work to do, but all of the conversations have been very progressive to date.

Speaker #3: We still have a lot of work to do, but all of the conversations have been very progressive to date.

Speaker #2: Okay, that's helpful. In the MD&A, it talks about a 120,000-square-foot renewal with a retail tenant at the same rate. Was that a contractual renewal rate?

Jonathan Kelcher: Okay. That's helpful. In the MD&A, it talks about 120,000 square foot renewal with a retail tenant at the same rate. Was that a contractual renewal rate?

Speaker #3: Yeah, at Saint-Laurent?

Andrew Tamlin: Yeah. At St. Laurent?

Speaker #2: Yeah, I don't know if it's Saint-Laurent.

John Ginis: Yeah.

Jonathan Kelcher: I don't know if it's the same across-.

Speaker #3: I believe it was.

John Ginis: I believe it was. Go ahead, Andrew.

Speaker #2: Go ahead, Andrew.

Speaker #3: Yeah, I think it was somebody that had an option. Yeah, maybe we could look at that offline, Jonathan.

Andrew Tamlin: Yeah, I think it was somebody that had an option. Yeah, maybe we could look at that offline, Jonathan.

Speaker #2: Okay. Okay. And then the office renewal in B.C. next year, the $235,000—will there be any change in the rate there, either up or down?

Jonathan Kelcher: Okay. The office renewals in BC next year, the 235,000. Will there be any change in the rate there, either up or down?

Andrew Tamlin: What was the renewal rates on the BC asset, Tom?

Speaker #3: What were the renewal rates on the BC asset comp?

Speaker #4: So that's the ones at 111 Dunsmuir?

Tom Johnston: That's the ones at 111 Dunsmuir?

Speaker #3: I think it's Seymour.

Andrew Tamlin: I think it's Seymour.

Speaker #4: Oh, it's Seymour. Okay. Those are Jonathan. It's Tom Johnston in Vancouver. Those rents were structured quite a few years ago, so the province of British Columbia tends to extend well in advance.

Tom Johnston: It's Seymour. Jonathan, it's Tom Johnston in Vancouver. Those rents were structured quite a few years ago, the province of British Columbia tends to extend well in advance of their expiry date. I don't have them handy, but they were in the high teens.

Speaker #4: Of their expiry date. So I don't have them handy, but they were in the high teens.

Speaker #2: Okay, that is helpful. And then lastly, is there any update on your HBC space, if there is any, from last quarter?

Jonathan Kelcher: That is helpful. Then lastly, just any update on your HBC space, if there is any from last quarter.

Speaker #3: You want to take that one, John?

Andrew Tamlin: Do you want to take that one, John?

Speaker #2: Sure, no problem, Andrew. So, Jonathan, we have exposure to two shopping centers, as you know—Saint-Laurent and Cambridge Centre. We have successfully released the lower level of the former HBC at Saint-Laurent to Urban Behavior.

John Ginis: Sure. No problem, Andrew. Jonathan, we have exposure to two shopping centers, as you know, St. Laurent and Cambridge Center.

Jonathan Kelcher: Yeah.

John Ginis: We have successfully re-leased the lower level of the former HBC at St. Laurent to Urban Behavior. In order to facilitate the redevelopment of Sears at St. Laurent, as Andrew noted again in his remarks to the addition of a new format, Sport Chek and Foot Locker. Urban Behavior, which actually does exceptionally well here in terms of sales performance, really wanted to retain the store. As a short-term solution, we said, Okay, well, why don't you move into the lower level of the former HBC? Which they gladly took, and they opened in May of this year. With respect to Cambridge Center, we are still working through options. It's a two-level box single-level shopping center, it's still going to require more work on our end. We're currently working through a transaction as we speak. Can't really announce it yet because we're not binding.

Speaker #2: In order to facilitate the redevelopment of Sears at Saint-Laurent, we, as Andrew noted again in his remarks, plan to add the addition of a new format Sport Chek and Splitsville. Urban Behavior, which actually does exceptionally well here in terms of sales performance, really wanted to retain the store.

Speaker #2: So, it's a short-term solution. We said, 'Okay, well, why don't you move into the lower level of the former HBC,' which they gladly took, and they opened in May of this year.

Speaker #2: With respect to Cambridge Centre, we are still working through options. It’s a two-level block, single-level shopping center, but it’s still going to require more work on our end.

Speaker #2: But we are currently working through a transaction as we speak. I can't really announce it yet because we're not binding, but our hope is that in Q3, we're going to be in a position where we can announce something with respect to at least the lower level of that space.

John Ginis: Our hope is that in Q3, we're going to be in a position whereby we can announce something with respect to at least the lower level of that space.

Speaker #3: Okay, that's it for me. I'll turn it back. Thanks.

Jonathan Kelcher: Okay. That's it for me. I'll turn it back. Thanks. Thanks, Jonathan.

Speaker #2: Thanks, Jonathan.

Speaker #1: Thank you. Again, participants, if you would like to ask a question, please press star, followed by the number 1 on your touch-tone phone. Again, that's star and the number 1 on your touch-tone phone.

Operator 2: Thank you. Again, participants, if you would like to ask a question, please press star followed by the number one on your touchtone phone. Again, that's star and the number one on your touchtone phone. Your next question comes from the line of Sean Waterhouse. Your line is open.

Operator: Thank you. Again, participants, if you would like to ask a question, please press star followed by the number one on your touchtone phone. Again, that's star and the number one on your touchtone phone. Your next question comes from the line of Sean Waterhouse. Your line is open.

Speaker #1: Your next question comes from the line of Sean Waterhouse. Your line is open.

Speaker #5: Hey, guys. Thanks for the question. I'm seeing on the balance sheet there's around $64 million of land held for development, so just wondering if there's any plan in terms of that—if approvals are being sought for any projects, and/or is that kind of viewed as a non-core asset?

Sean Waterhouse: Hey, guys. Thanks for the question. I'm seeing on the balance sheet there is around CAD 64 million of land held for development. Just wondering if there's any plan in terms of that, if approvals are being sought for any projects and or is that kind of viewed as a non-core asset?

[Analyst]: Hey, guys. Thanks for the question. I'm seeing on the balance sheet there is around CAD 64 million of land held for development. Just wondering if there's any plan in terms of that, if approvals are being sought for any projects and or is that kind of viewed as a non-core asset?

Speaker #3: Those are more long-term developments. Anything that we're kind of seeking on entitlements for is more of a long-term play. There's nothing that is going to be coming up from other than just kind of the projects that we spoke of.

Andrew Tamlin: Those are more long-term developments. Anything that we're kind of seeking out entitlements for is more of a long-term play. There's nothing that is going to be coming up from other than just kind of the projects that we spoke of. There's nothing else that we're actively working on. It's more just kind of longer-term entitlements.

Speaker #3: There's nothing else that we're actively working on. It's more just kind of longer-term entitlements.

Speaker #5: All right. Thanks for that.

Sean Waterhouse: All right. Thanks for that.

[Analyst]: All right. Thanks for that.

Speaker #3: Thank you.

Andrew Tamlin: Thank you.

Speaker #1: And, Speaker, we don't have anyone on the line. I would like to turn the call over again to Mr. Andrew Tamlin. Please continue.

Operator 2: Speaker, we don't have anyone on the line. I would like to turn the call over again to Mr. Andrew Tamlin. Please continue.

Operator: Speaker, we don't have anyone on the line. I would like to turn the call over again to Mr. Andrew Tamlin. Please continue.

Speaker #3: Thank you, everybody, for joining the call. We'll look forward to joining you for the third quarter call, and hope everybody has a good long weekend.

Andrew Tamlin: Thank you, everybody for joining the call. We'll look forward to joining you for the Q3 call. Hope everybody has a good long weekend. Thanks. Bye.

Speaker #3: Thanks. Bye.

Operator 2: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for your participation. You may now disconnect.

Q2 2026 Morguard Real Estate Investment Trust Earnings Call

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