Automotive Properties Real Estate Investment Trust

Good morning, ladies and gentlemen, and welcome to the Automotive Properties REITs 2025 third quarter 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 rate'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 MDNA and annual information form, which are available on CDAR+. 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 meaning meetings under IFRS. Please refer to the REIT's latest MDNA for additional information regarding non-IFRS financial measures. This call is being recorded on November 14, 2025. I would now like to turn the conference over to Milton Lamb. Please go ahead, Mr. Lamb.

Milton Lamb That's great. Thank you, Krista. And good morning, everyone. Thank you for joining us today. On the call with me is Andrew Calra, our Chief Financial Officer. We had an active period in advancing our strategic initiatives for unit holders, including a distribution increase in completing approximately $151 million of acquisitions. During the quarter, we deployed approximately $93.6 million for acquisitions of seven automotive properties, including five Automotive Dealership Inclusion Repair Centers in the Greater Montreal Area, a Rivian Tenanted Property in Orlando, Florida, and subsequent to Quarter End, we completed the acquisition of an additional four automotive properties in the Greater Montreal Area at a combined purchase price of $57.3 million. We expect these property acquisitions to drive continued growth in our AFFO per unit. In addition, we recently completed a bought deal equity offering and concurrent private placement for a combined gross proceeds of approximately $57.1 million. While our results for the third quarter don't yet reflect a full quarter impact of our recent acquisitions, we still generated solid growth in our key performance metrics. Compared to Q3 a year ago, Rental revenue increased by 7.9%. Cash NOI is up 6.5%. Same property cash NOI increased by 2.3%. And AFF per unit diluted increased to 25.2 cents up from 23.3 cents. Supported by the strong financial performance The Board of Trustees approved a 2.2% increase to unit holder distributions in the quarter, increasing our annualized distribution per unit from 80.4 cents to 82.2 cents. We're pleased with our progress in advancing our strategic initiatives for our unit holders, and we look forward to realizing the full impact of our acquisitions in the quarters ahead. I'd now like to turn it over to Andrew Calra to review our financial results and position in more detail. Andrew?

Thanks, Milton, and good morning, everyone. Our property rental revenue for the quarter increased to $25.4 million from $23.5 million in Q3 a year ago, reflecting growth from the properties we acquired subsequent to Q3 last year and contractual annual rent increases, partially offset by the reduction of rent from the sale of our Kennedy Lands property in October 2024. Total cash NOI and same property cash NOI for the quarter total $21 million and $19.6 million respectively, representing increases of 6.5% and 2.3% compared to Q3 a year ago. Interest expense and other financing charges for the quarter were $6.5 million, a slight decrease in Q3 a year ago due to lower floating rates. Our GNA expenses were $1.7 million for the quarter, an increase of $0.3 million from Q3 last year, in line with our expectations. Net income and other comprehensive income was $10.4 million compared to $1.8 million in Q3 last year. The increase was primarily due to changes in non-cash, fair value adjustments, four interest rate swaps, and Class B LP units and unit-based compensation, and a foreign currency gain. FFO and AFFO increased by 8.3% and 8.8% respectively compared to Q3 last year, reflecting higher rental revenue from acquisitions and contractual rent increases, partially offset from the reduction of rent from the sale of the candy lands. We paid unit holder distribution of $10.1 million or 20.4 cents per unit in the quarter representing an ASFO payout ratio of 81%, down from 86.3% in Q3 last year, reflecting the positive impact of the properties acquired subsequent to Q3 last year and contractual rent increases partially offset by the reduction of rent from the sale of the Kennedy lands and the increase to REITs distribution. The cap rate applicable to our portfolio was essentially flat quarter over quarter at 6.7%, the $3.6 million fair value adjustment primarily related to the write-off of closing costs associated with the new acquisitions. We continue to be proactive with our debt to limit our exposure to interest rate fluctuations and enhance our financial flexibility. During the quarter, we renewed and extended just over $29 million of floating to fixed interest rate swaps, for the term of five to six years at rates just under 4.6%. We increased the amount of the non-revolving portion of facility two by $40 million and the maturity date was extended from January, 2028 to March, 2029 at the same credit spread. This extension of maturity term is consistent with our strategy and that we've executed on a regular basis for all our credit facilities. Subsequent to quarter end, we renewed a floating to fixed interest rate swap within Facility 2 in the amount of $15 million for a term of six years and an interest rate of 4.4%. We increased the amount of the non-revolving portion of Facility 3 by $40 million. We have a well-balanced level of annual maturities with only $63 million of swaps maturing over the next 24 months. We have a weighted average interest rate swap term and mortgages remaining at four years. As at November 13th, 84% of our debt was fixed through interest rate swaps and mortgages. We have a fixed average effective interest rate through swaps and mortgages of 4.4, which is comparable to recently completed swap rates. We also completed $57.3 million equity offering, including the exercise of the over-allotment by the underwriters. As a result of the successful completion of the offering and the issuance of $10 million of Class B LP units and the completion of our acquisition of four properties subsequent to quarter end, as of November 13th, our debt-to-GBV ratio was approximately 45%. We had approximately $7.5 million cash on hand, approximately $9 million of undrawn capacity under our credit facilities and eight unencumbered properties with an aggregate value of approximately $117 million. I'd like to turn the call back to Milton for closing comments. Thank you very much.