Allied Properties Real Estate Investment Trust

goals and what we're focusing on for the remainder of the year. Dan will do the same from a financial perspective. JP will outline the positive leasing momentum by urban markets. We're then pleased to answer any questions. We may, in the course of this conference call, make forward-looking statements about future events or future performance. By their nature, these statements are subject to risks and uncertainties that may cause actual events or results to differ materially, including those described under the heading risks and uncertainties in our 2024 annual report. Material assumptions underpinning any forward-looking statements we make include those described under forward-looking statements in our most recent quarterly report. We're focused on delivering long-term value. This includes driving leasing and operational results, development completion, and strengthening the balance sheet. The quarter-end results reflect the resilience of our operating platform, and we're also making progress in executing our long-term strategy of portfolio optimization. First, leasing and operational results. Our portfolio continues to demonstrate strength despite headwinds. JP and Nan will expand on the highlights, which include improved lease area, positive stay mass and NY, and the successful implementation of our rental residential platform. While lease deals continue to take longer to complete due to the availability of options and ongoing macroeconomic disruption, we continue to experience a shift towards improving fundamentals in urban centers. With space mandates from organizations across industry, including significant bank mandates in the Toronto market, we expect leasing momentum to accelerate over the next few quarters. Second, we made progress on our development and upgrade activities. At M4 in Vancouver, which is currently 77% leased to three users, fixturing has commenced, and we're negotiating leases on the remaining space. This includes a current user that's already looking to expand. We also agreed to acquire the remaining 50% interest, which will close on September 30th. There will be no cash exchange as part of this transaction. We're pleased to be 100% owners of this project. It aligns perfectly with our operating focus and expands our urban office platform in the vibrant, non-pleasent banks of your neighborhood, enabling us to better serve knowledge-based organizations. At Toronto House, our in-house rental residential operating platform has achieved a 48% lease-up, meeting our ambitious targets to date. At King Toronto, we're heading towards successful completion alongside West Bank. Securing the international retailer that anchors the commercial component is facilitating the lease-up of the remaining space. We're currently in various stages of negotiation with seven retailers. Blazing is taking place on the fourth level, and we're pleased with the progress. As construction continues, we've been able to remove some of the hoarding, providing the public with a better sense of the street-level experience. It's truly a distinctive project that will elevate the entire King West Village neighborhood on completion next year. All the development and upgrade projects currently underway will be completed by the end of 2020. Last but certainly not least are found sheets. We're focused on strengthening it, keeping ample liquidity and improving our debt metrics. Nan will outline our plan to address debt coming due early next year, and we're confident in our ability to do so optimally, given the success we've had this year in addressing the issues of the financial and financial maturity with minimal impact on interest expense. Our disposition program of non-core assets continues. Private market valuations remain robust, and our IFRS values continue to be validated. We currently have nine assets under sale contract, totaling $200 million of co-seek. All co-seek will be allocated to debt reduction as part of our path to achieving a net -to-ebit ratio of under 10 times by the end of 2025 and under 9 times by the end of 2025. Nan will now elaborate on our financial results with found sheet metrics. Thank you Cecilia. Good morning everyone. We are pleased with our performance this quarter and encouraged by the emerging positive market fundamentals, which are reinforcing our strategic direction and operational resilience. I'll provide an overview of a few highlights from the quarter. CNAQ NOI of the rental portfolio grew by 1.1%, driven in part by the successful transition of our development completions into the rental portfolio and their continued stabilization. Our average in-place net rent of occupied square foot increased by 1% compared to the same period ending the quarter at $25.32. We saw strong leasing activity again this quarter. We leased over 588,000 square feet, including 75,000 square feet of expansions from existing users. Our lease area is now at .2% and our -to-date retention ratio sits at 69%, modestly below our historical average. We are also seeing a shift in user behavior with larger mandates in place and longer lease terms on new leases and renewals. That kind of commitment reflects growing confidence in the market and in our portfolio. J.P. will expand further on this later. While we have seen short-term pressure on FFO and ASFO per unit, mainly due to high interest costs from the 2024 acquisition, we are pleased to have made solid leasing progress in these properties that will meaningfully contribute to our growth in the future. We are finalizing the lease of our full FFO at 400 West Georgia, which will be 100% lease, a significant milestone. Leasing at Toronto House is gaining strong traction with 222 residential units leased. These results reaffirm the quality of our assets and the strength of demand in our key urban markets. Our development projects are making excellent progress with only three ground-up projects remaining. Our top-two growth book value is down to .8% compared to .4% last year. The remaining cost to complete is $119 million, with the majority of this to be invested by the end of 2026. As of December 31, 2023, we had ground-up and redevelopment projects that were expected to contribute $90 million to $103 million in stabilized NOI on completion. As of June 30, 2025, completed projects have contributed $60 million based on this quarter's annualized NOI. With the lease up of Toronto House and redevelopment at N4 in Vancouver, there will be incremental annualized NOI of $3 million in the second half of 2025 and another $10 million expected in 2026. We will achieve stabilized NOI on these projects throughout 2027 and 2028, subject to the successful lease up of an agency. The decapitalization impact on NOI is approximately 50% on stabilized projects. Capitalized interest is expected to reduce by 20% in Q1 2026 compared to this quarter. Our balance sheet and deleveraging efforts are of top priority. We are firmly committed to reducing our net debt to EBITDA to below 10 times by year end and below 9 times by the end of 2026. This will be driven by three key initiatives. First, focusing on operations by leasing our organic portfolio, stabilizing our 2024 agronitions, and completing our development projects. Second, our disposition program. We remain on track to divest approximately $300 million in -co-active sales this year. As of today, we have $200 million under contract and these transactions will close in the second half of 2025. Third, the monetization of our loan receivable at 150 West Georgia. This process is underway with 14 prospective groups evaluating the opportunities. We are still targeting a December 2025 close. At quarter end, our liquidity remains strong with $635 million available on our unsecured credit facility. We issued $850 million in unsecured debentures in 2025 and used these proceeds to proactively address our upcoming debt insurances. We effectively refinanced 20% of our expanding debt and saw only a marginal increase in our interest expense of approximately $1 million on an annualized basis related to this refinancing. Through this, we also saw moody withdrawal via unsolicited rating and our spread title in the secondary market. Looking ahead, we have $850 million of debt insuring in early 2025. A portion of this will be repaid as part of our deleveraging plan with approximately half expected to be refinanced. We have optionality in addressing the refinancing, including both secure and unsecured financing. Although our preference is to continue our unsecured debenture program. We've made significant progress in the first half of the year, just like macroeconomic and geopolitical uncertainties. We still have more work to do, but we remain confident in our strategy, in our platform, and in our ability to deliver long-term values. Thank you for your time today. I'll now pass it over to Jay Peak.

Thanks, Dan. In Q2, we continue to experience strong conversion rates, robust expansion activity, and a shift towards larger space requirements among prospective users, despite the uncertain macroeconomic environment. Following the close of the quarter, we've observed a noticeable increase in our leasing pipeline as more and more organizations reaffirm that the office is the principal venue for creativity and connectivity. In Q2, our lease area remains stable and outperforms each of the urban submarkets in which we operate, except for Vancouver, where we are making great progress in addressing acquired vacancies. We remain extremely encouraged by the number of existing users in our portfolio that continue to require more space. In Q2, 75,000 square feet of new leasing activity represented expansions, a 50% increase compared to the previous quarter. We are also encouraged by our improving retention rate, which -to-date is 69%, closer to our historical average of 70% to 75%. The average rental rate in the same period was up .1% when comparing the ending to starting base rent and up .2% when comparing average to average. The observed moderation in rental rate growth upon renewal is in line with our expectations and reflects the anticipated impact of increased supply, a message we have been communicating for several years. Tour activity continues to be strong. Tour activity in our rental portfolio was up 13% from the prior quarter and up 21% from the prior year. Industries represented by touring organizations continue to be technology, media, professional services, education, and medical uses. At the end of last quarter, we reported we had 1.3 million square feet of leasing activity under negotiation or at the prospect stage, including 684,000 square feet of new leasing activity. In Q2, we completed 588,000 square feet of leasing activity, including 407,000 square feet of new leasing, resulting in a 60% conversion rate. At the end of this quarter, we had 1.2 million square feet of leasing activity under negotiation or at the prospect stage, of which 60% represents new leasing opportunities and 40% represents renewals. I'll now provide a brief overview of each armpit. In Montreal, we continue to observe strong demand from users with larger space requirements. There are currently 10 perspective groups with mandates greater than 50,000 square feet considering space in our portfolio, including two groups representing a total of 150,000 square feet with which we are in advanced discussions. We also continue to see strong demand from existing users with large mandates to expand because of increasing utilization. Most of our vacancy in Montreal is concentrated at La Cite, a portfolio of assets located between Old Montreal and Bridgerton Town, comprising eight buildings totaling more than 1.2 million square feet. There are currently five perspective groups with mandates between 12,000 and 100,000 square feet considering these options at La Cite. These prospects represent the technology, professional services, and medical sectors. In Toronto, we continue to see an increase in demand from respective users with larger space requirements. There are presently 34 users with mandates greater than 10,000 square feet touring our portfolio, including nine groups representing a total of 130,000 square feet with which we are in advanced discussions. Last quarter, we reported we were in discussions with seven existing users looking to expand. We are pleased to report that we completed five of those expansions and are currently in discussions with 12 other users looking to increase their footprints representing 70,000 square feet of new leasing activity. Of the 12 users looking to expand, 11 are technology firms. At Toronto House, we are very pleased with our residential leasing efforts as we are almost 50% leased. In Kitchener, we observed an increase in leasing activity. Three existing users recently expanded and we are in active discussions with a tech user looking to lease upwards of 50,000 square feet. We are also in advanced stages of a renewal with a large tech firm that represents the largest maturity in 2026 across our national portfolio. In Calgary, we continue to see an increase in the size of mandates in the market as there are currently six prospective organizations with requirements in excess of 10,000 square feet evaluating options in our portfolio, including three groups representing a total of 30,000 square feet with which we are in advanced discussions. At Vintage Towers, we experienced a large known non-renewal totaling 45,000 square feet in Q2 that we have been communicating for several quarters. We're pleased to report that we have backfilled two-thirds of the space and continue to see strong directivity on the remaining availability. Vancouver remains the strongest leasing market in Canada. There are presently eight users with mandates between 10,000 and 50,000 square feet evaluating space in our portfolio, including three groups representing a total of 130,000 square feet with which we are in advanced discussions. We are also engaged in discussions with four existing users looking to expand representing 40,000 square feet of leasing activity. At 400 West Georgia, we are now fondly in agreement with an education user for the remaining vacant space totaling 64,000 square feet to expect possession in September 2025. While the uncertain macroeconomic may impact leasing activity in the near term, we remain confident in our ability to outperform the market in each city due to our concentration of distinctive urban workspace in many rich urban environments and the strength of our operating platform as validated by our net promoter score, which is 150% higher than our peer average. I will now turn the call back to Cecilia.

Thanks, JCP. Before we turn to questions, I want to reiterate my confidence in our portfolio and our team. Our urban portfolio is not only unique, but strategically positioned for the future. I say this as Canadian cities are increasingly concentrating into centers of creativity, innovation, and opportunity. And urban workspace plays a critical role in that, making allies well positioned to meet the growing demand. Our team is focused, patient, and confident that our fundamentals will ultimately be recognized. We now be pleased to answer any questions.

Thank you. The floor is now open for questions. If you have dialed in and would like to ask a question, please press star one on your telephone keypad to raise your hand and join the queue. If you would like to withdraw your question, simply press star one again. If you are called upon to ask a question and are listening via loudspeaker on your device, please pick up your handset and ensure that your phone is not on mute when asking a question. Your first question comes from the line of Jonathan Keltcher of TD Cowan. Your line is open.

Thanks. Good morning. First question, just on the outlook for 2025, I guess your target is for FFO to be down 4% from last year. Just based on the first half of this year, that would imply a pretty good step up in FFO over the back half of 2025. How did the first half track internally versus that expectation? What are you seeing that gives you confidence to maintain that target?

Sure. The first half of the year tracked exactly as we expected, Jonathan. What gives us confidence, and I'll ask Nan to outline the path forward, but what gives confidence is the momentum that we, Nan, and JP just outlined in the market. Nan, why don't you just go through the pathway? Yeah, Jonathan, some of the key drivers that we're going to have in the second half of the year, this is the first, stabilize from Toronto Health in 400 West Georgia. Disposition proceeds to pay down debt to reduce interest expense. No more Angela's revenue that's going to be in the second half that was in the first half. Commencing of leased area that currently in our leased of .2% that will be productive in the second half and organic growth.

Okay, that's helpful. I guess a lot of the organic growth sounds like the thing that is not guaranteed and everything else sounds pretty sure. Is that how to think about it?

Yeah, I mean, nothing's guaranteed, but we see a path to achieving our targets at the end of 2025, and that's what we remain focused on.

Okay, and then secondly, JP, you gave a whole bunch of stats, which is very helpful, but at the beginning, I guess you said the, and we've seen articles on this, that there's been a pickup in demand more recently. Are the stats you gave as of the end of June or are they current? I guess that's my first question and I have a follow up on that.

At the end of Q2, Jonathan, we were working on 1.2 million square feet of leasing activity, of which 60% represented new leasing activity. Subsequent to the quarter end, we've seen that number increase by a couple hundred thousand.

Okay, that's helpful. And then is that, I guess everybody's seen the articles with financial firms. Are you seeing more of an increase from other sectors and maybe are there any markets, geographic markets that are seeing more versus others?

We're seeing an increase in demand across all sectors and all markets, Jonathan. That's a function of more and more organizations referring back to an autocentric model, which is increasing utilization and in turn demand. And the availability of high quality space is declining with no new supply coming online after 2026 and subsequently falling in line with near historic lows. And as such, organizations recognize that the window is narrowing to just a few more years to secure the state of space.

Okay, thanks. I'll turn it back.

Your next question comes from the line of Lauren Kalmar of Desjardins Capital Markets. Your line is open.

Thanks. Good morning, everybody. Maybe just sticking with the target, obviously you guys kept your 90% in place occupancy target and you mentioned Lisa 400 West Georgia and a couple other or some positive momentum release in front because you may be give us a bit of a bridge as to how you kind of get from that 85 to 90 in the next couple quarters.

Well, it will be through continued lease up and pushing the occupancy accordingly.

Okay, so are there any I guess known outside of, you know, I guess the West Bank or sorry, West Georgia is necessarily 100% known but outside of that, is there any other kind of known occupancy catalyst that you're expecting over the back half of the year or is it really just relying on, you know, the leasing momentum and whatever leasing activity gets done in the back half?

Laura, we continue to see positive momentum in all markets across all sectors. In my remarks earlier, I touched on each city and made reference to the total square footage, with which we're in advanced discussions and the ever increasing leasing pipeline that I made reference to in responding to Jonathan gives us confidence that we'll continue to see positive momentum.

Okay, fair enough. And then just flipping to the acquisition remaining 50% from West Bank out in the or for the Vancouver office development, you guys have now done, you know, I think three of the four projects you've had you bought them out of. King Toronto, I've asked about before, I'm just wondering, is there any change in your outlook as to whether or not you have to take that in as well?

No, we fully intend to continue working alongside West Bank at King Toronto and to complete the project alongside West Bank.

Okay, and then just the last one, I know you guys talked year to date retention. Q1 was obviously pretty solid to Q came down a bit. Can you maybe give us some color on what happened there and how you expect that to turn over the balance of the year?

Lawrence, the balance of the year there's 800,000 square feet maturing. We're in advanced stages of renewal discussions on 400,000. We expect 200,000 to come back. And we're very pleased with our ongoing efforts to backfill those known non-renewals. And the balance of the majorities we continue to work on.

Fair enough. Thank you very much for the call. I'll turn back. Thank

you.

Your next question comes from the line of Brad Sturgis of Raymond James. Your line is open.

Hey, good morning. Just following on the same line of questioning around leasing and potential upside or recovery on occupancy. In terms of the commentary, obviously there is some potential demand improvement through the return to office mandates. Just I guess one of the headwinds you guys have seen of latest timelines to complete deals have been long. Do you think with the new mandates you'll start to see timelines starting to shorten up or what would be the catalyst to normalize on the negotiation front?

Yeah, I think we see opportunities to shorten some of those timelines. I think the user that we're finalizing negotiations with at 400 West George is a great example. They need to be in the space by September. And we'll be finalizing that paper over the next couple of weeks. So that's one example where we're able to capitalize on the need for certain organizations they have urgency and we have space that we can provide for them to occupy sooner rather than later. So we see the opportunity for more situations like that. But we'll see how Q3 plays out and we remain cautiously optimistic.

So at this point, it's probably wait and see until how the fall kind of starts to trend, but potentially we could start to see those timelines start to narrow a bit.

Exactly.

Okay. And in terms of 400 West Georgia, its occupancy is potentially could be in September. When would the rent commence and then how should we think about the term and the associated leasing costs with that lease?

Rent commencement would be January 2027. So the terms are reflective of the market.

I guess I mean more like in terms of the length of term of that lease and then so and then just to clarify the leasing costs would be more in line with market levels at this point.

Yes, 10 years leasing cost in line with market.

Okay, great. I'll turn it

back. Thank you. Your next question comes from line of Mack Kornak of National Bank Financial. Your line is open.

Hey guys, just with regards to the leasing that you're seeing right now, I mean it sounds like tour activities up and people are considering your space. Would you say the bulk of that is tenants looking to relocate in the market, relocate in your own buildings or is that new kind of space to the market? I'm just trying to think if somebody moving to your building from another building or are they kind of new to the space and maybe they bring down the overall vacancy rate across the market?

It's a function of tenants seeking high quality assets to offer great workplace experiences requiring in many cases an increase in their footprint because of higher utilization. There are a couple organizations with which we're working who have not maintained an office presence and they are now wanting to introduce an off-decentric model so that it's a reflection of a number of different variables.

That makes sense and then just on the accounting front, for a few quarters you've kind of seen straight line rent grind down. Is there anything to that or is that dynamics of leasing maybe free rent or is that I'm not entirely sure?

The straight line rent converting to cash rent, that's why I say not that NOI is out just for it's mostly from our development pipeline in particular properties like 20 Ride Off and 710 over there.

Should we expect that, I mean it's near zero at this point, should we expect that it kind of flattens or you're expecting to kind of rebuild straight line rent as you do some of these longer term leases where I mean I think for the 400 West Georgia one it sounds like they're going to be in place in September but they won't be paying rent until January of 27, is that correct?

Correct, so it'll start rebuilding because we're planning to be picturing starting in Q3.

Okay so as you do some of this Lisa we'll see it more in FFO than AFO.

Exactly.

And then just quickly on the Vancouver purchase, did you guys with your partner look at taking that to the market or was it just a logical purchase on your part to own 100%? No

it was logical for us to take over the remaining interest that.

Okay thanks

Ed.

Thanks.

Your next question comes from the line of pardon your next question comes from the line of Gaurav Mathur of Green Street, your line is open.

Thank you and good morning everyone. Under 300 million of non-core asset sales what would the average occupancy of the assets be currently?

It's very low.

Okay and would be right and would be fair to say that you know the sale of these assets would potentially help in meeting the year-end occupancy goal.

They're not currently included in our leased area they can ask that help for sale so it's not part of the occupancy or lease area calculation currently so no I wouldn't have any impact on that.

Okay great and then just switching to 150 West Georgia and while there are multiple options for monetization there would one of those options be an outright sale and if so what would the potential buy pool look like?

Well it is an outright sale it is an outright 100% sale and it's being marketed in a way that will get us the optimal outcome which would be to have our loan being repaid by December 31st of this year.

Thank you for that and is there could you provide any color on the potential buy pool?

Not at this stage it's well underway and we're pleased with the progress that's all I'm able to say right now.

Okay thank you for that I'll turn it back to the operator.

Thanks. Your next question comes from the line of Pammy Beer of RBC Capital Markets your line is open.

Thanks good morning JP I think you know you mentioned some comments around utilization and can you maybe just talk about what trends you're seeing in your portfolio through Q2 and whether the utilization trends have actually continued or have they changed through July?

Yeah probably they continue to improve as you know Western Canada, Calgary and Vancouver have let their Eastern counterparts in utilization throughout the past number of years and continue to perform exceptionally well in that regard. We're now seeing Toronto and Montreal improve utilization at similar levels and that's driving driving demand as we articulated earlier.

What would those levels be for Toronto Montreal like roughly like a percentage range or?

We're nearing 80%.

Okay and that's if you were to compare that to again going back to maybe 2019 how would that stack up?

It represents approximately three or four days a week in the office as you know Pammy organizations including your own are increasing their their their mandates as there's widespread recognition that the office remains the principal venue for creativity and connectivity so we're expect trends around utilization to continue to improve. In our view there's really no longer a question around utilization. Organizations are returning and that's driving demand and we'll continue to do so.

Got it. Just coming back to that 90% occupancy I guess expectation by year end how much of that is coming from some of the development leasing that starts to kick in in the second half of the year versus say you know assumed lease up of other vacant space?

The development lease up wouldn't have

a material impact Pammy because we would be adding the space to the numerator and the denominator so mathematically it just doesn't have that much impact it's really the four things that Nan outlined.

Okay and then just there was I guess the additional disclosure on the development NOI that's helpful you know you mentioned another 10 million of contributions in contributions in 2026 for a couple of projects I think that gets you to maybe 70 million ish next year so for the remaining 30 million or so or maybe 20 to 30 million and relative to your total range what are some of the largest spaces that that relates to?

It was primarily in the redevelopment portfolio Pammy so RCA in Montreal, 1001 and portions of CCMF in Montreal as well those would be the largest portions of buildings and redevelopment.

And would the expectation there like are you seeing any traction that maybe gives you some confidence that 2027 is a reasonable expectation for some of that

2027 timing is going to prove to be perfect the way that the market is moving.

Okay I will I'll turn it back thanks so much.

Thank you.

Your next question comes from a line of Tal Woodley of CIBC Capital Markets your line is open.

Hi good morning everybody. Just on the disposition pool the 300 million do you have a rough estimate that we could use for the NOI yield just so we've got an idea of what to take out for dispositions going forward?

Yeah it's about three, two and a half. It's pretty low because it's very low occupancy some of the buildings are actually empty

so

pretty low yielding.

Great okay and then on the 150 West Georgia loan balance do you have a rough estimate of how much of that is accrued interest versus principal?

We can get into that Tal.

Okay perfect and then just a you know a broader question I guess overall operationally financially it would seem to me like you're sort of trying to communicate this this feels like we're sort of in the trough of this cycle does that is that a fair characterization of what you're trying to message to the market?

Absolutely.

Okay that's great thanks very much everybody.

Thanks Tal.

And your next question comes from a line of Mario Ceric of Scotiabank your line is open. Hi good morning.

Morning.

I just have a I think a two-part question on distribution sustainability. First part internally like when you think about occupancy and in the push to get to 90% plus is there a specific occupancy internally that you have in mind that you need to hit in order for you to view the distribution as sustainable given the expected leasing costs of the occupancy lease up? And then secondly how much time would you give yourselves or how much time is the board give management before deciding on whether that occupancy is achievable before you reassess the distribution?

We're very comfortable in where we're sitting at to the distribution Mario. Obviously the payout is higher than what we would ultimately be targeting but we see a path to having the payout ratio moderate and ultimately in time get closer to what our targeted levels would be but both management and the board see that path today and are comfortable with the sustainability of the distribution.

Got it. Is that path like a 2026 event or is that a path that can take us into 2027?

Path to what sorry?

A path to sustainable distribution at an occupancy level whatever you think that occupancy level may be required to have a sustainable distribution event.

Yeah we see that it's sustainable today and so that's seeing occupancy improving it only becomes more sustainable with the passage of time.

Okay and then just my second question you highlighted rightfully the multiple articles looking at financial service tenants asking people to come back to work more often. Typically financial services isn't a big part of your portfolio given the smaller kind of floor plates and average space requirements. Can you maybe talk about the indirect impact of that to leasing demand for your portfolio and whether there actually may be some opportunity to expand your financial services kind of presence

come forward? Yeah you're right we haven't typically had financial institutions in our portfolio. What we see is that the options that are available to users in the market will be soaked up so absorption will accelerate with these large space mandates from the banks and that will have a trickle effect in terms of there being more urgency in the market for users to lock down space as space drive up.

And Mario it's representative of a broader theme that we're seeing across all sectors and markets in our portfolio.

Okay and with and I think someone else kind of asked a similar question but with respect to the new tenant demand in your leasing discussion pipeline how much of it may be coming from suburban markets today? Have we seen a shift back into demand for downtown space from the suburbs or is that still something that is

being seen? We have seen demand from organizations located in suburban markets looking to urban centers that continues to increase but the nature of demand is diverse and representative of a number of different themes that we've touched on during this call Mario.

Okay that's it for me thank you.

Thanks.

There are no further questions at this time this concludes our Q&A session. I'll now turn the conference back over to Cedelia for closing remarks.

Thanks JL and thanks everyone for attending our conference call.

My final message is this,

we recognize the uncertainties in the broader macroeconomic environment but we're encouraged by the growing signs of momentum in the cities where we operate. Canada, Canadian cities and Canadians will benefit in the long term from any short-term disruption we may face. Canadian cities in particular will emerge stronger and allied as well positioned to benefit as a result. We look forward to keeping you updated on our progress going forward.

This concludes today's conference call you may now disconnect.