Canadian Apartment Properties Real Estate Investment Trust

Hello, everyone, and thank you for joining the Canadian Apartment Property REIT's fourth quarter 2025 results conference call. My name is Claire, and I will be coordinating your call today. During the presentation, you can register a question by pressing star followed by 1 on your telephone keypad. If you change your mind, please press star followed by 2 on your telephone keypad. I will now hand over to your host, Nicole Dolan, Investor Relations, to begin. Please go ahead.

Thank you, operator, and good morning, everyone. Before we begin, let me remind everyone that during our conference call this morning, we may include forward-looking statements about expected future events and the financial and operating results of CAPRI, which are subject to certain risks and uncertainties. We direct your attention to slide two and our other regulatory filings for important information about these statements. I will now turn the call over to Mark Kenney, President and CEO.

Thanks, Nicole, and good morning, everyone. Joining me this morning is Stephen Koh, our Chief Financial Officer. Let's start in slide four with some key highlights from 2025. This past year, we continued to actively reposition our portfolio, and we met our disposition target by selling more than $400 million of non-core assets in Canada. We also sold $784 million of ancillary interests in Europe. We used a portion of net proceeds to purchase $659 million in well-built, strategically aligned properties which offer low capital investment requirements and high cash returns above our portfolio average. We also continue to capitalize on the public-private market disconnect by spending $294 million on our NCIB program to enhance earnings for unit holders. Operationally, same property occupancies remained healthy at 97.3% as of December 31st, 2025. across which average rent grew by 3.8%. This reflects the effectiveness of our leasing and retention strategies, which Stephen will expand on shortly. Combined with ongoing enhancements to cost management and procurement governance, our same property NOI margin expanded to 64.7% for 2025. In addition, we finished the year with a total debt to gross book value ratio on target at 39.3%. in line with our commitment to maintain balance sheets of strength. Turning to slide six, I want to highlight the progress we've made in transforming the portfolio for long-term value creation. Today, 79% of our portfolio is made up of value-add assets, with 68% of this considered a core long-term holding. This 68% comprises high-quality, well-located communities that form the backbone of CAPREIT's strategy and will continue to drive stable, predictable performance over the long run. We've classified the other 11% as opportunistic dispositions. These are assets that we would consider selling if we were able to achieve compelling pricing. Maintaining this flexibility is an important part of our ongoing capital recycling strategy, ensuring that we are consistently rotating into higher quality, higher cash yielding opportunities. In addition, we have an intentional 19% allocation to recently constructed properties. These newer assets help balance the portfolio, bringing down its average age and capital requirements, and adding stability from a building quality and operating cost perspective. This mix gives us a more resilient platform through various market cycles. And finally, eRES now represents just 2% of our consolidated portfolio. down from 6% at the beginning of the year, reflecting the extent of our European dispositions in 2025, which have greatly simplified our business. On slide 7, we've displayed our 2025 non-core divestments in Canada, with $411 million sold. These properties had higher capital expenditures, lower expected returns, or other attributes that no longer met our strategic standards. These sales allowed us to recycle capital into stronger performing properties, which also contributed to important community partnerships, including meaningful transactions with nonprofits and the Squamish nation. And then on slide eight, you will see how we spent $659 million to add to our portfolio 15 well-built prime located properties across key urban markets in Canada. These buildings were acquired at attractive price points with strong economic yields that boost the cash flow generating potential of our portfolio. In addition, the recently constructed properties were purchased at pricing well below replacement cost. By investing in these mid-market properties and divesting from off-strategy underperforming buildings, we reduced the portfolio's long-term capital needs and enhanced its performance. Our NCIB activity is summarized in slide nine. This program has effectively allowed us to invest in our own optimized portfolio at a cap rate well above current market levels for comparable assets while increasing unit holder returns. In 2025, we remained active on this buyback program with $294 million invested at a weighted average purchase price of $41. This represents a substantial discount to our NAV for unit of $56 as of December 31st, 2025. And since we started leveraging this program in 2022, we spent a total of $960 million to date to generate higher earnings for unit holders. With that, I'll hand it over to Stephen to discuss our operational financial results.