Canadian Apartment Properties Real Estate Investment Trust

Hello everyone, thank you for joining us and welcome to the Canadian Apartment Properties Read second quarter 2026 earnings call. After today's prepared remarks, we will host a question and answer session. If you would like to ask a question, please press star 1 to raise your hand. To withdraw your question, press star 1 again. I will now hand the conference over to Nicole Dolan, Investor Relations. Nicole, 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 CAPREIT, 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 Brad Cutsey, President and Chief Executive Officer.

Thanks, Nicole, and good morning, everyone. Joining me today is Stephen Co, our Chief Financial Officer. Before we begin, I'd like to say that it's been a privilege to be joining you today for my first earnings call as President and Chief Executive Officer of Capri. At this time, I'd also like to acknowledge my predecessor, Mark Kenney, for his many years of leadership and the significant contributions he's made to Capri. While I'm still in the early stages of my tenure, the past several weeks have given me the opportunity to spend time with our people and our portfolio, and I have already been encouraged by the high quality of the platform and the depth of expertise across the organization. Together, they've reinforced my confidence in the solid foundation upon which CAPRE is built, and I look forward to further building on that foundation in the years ahead. With that, let's turn to slide four and walk through some highlights from the year to date. From a capital allocation perspective, CAPREIT has completed approximately $66 million of acquisitions and dispositions in Canada, $145 million in property divestments in Europe, and the privatization of European residential REIT for $99 million, which provides us with the greater flexibility to manage the sale of the remaining European assets. We've also continued to invest in our NCIB program with $71 million deployed so far this year. Operationally, while markets conditions remained pressured across the multifamily sector, CAPREIT continued to demonstrate resilience. Physical Opacity per same property Canadian Portfolio was 97.5% on June 30th, which is meaningful above Yardie's latest quarterly average of 95.3% nationally. More recently, CAPREIT's Physical Opacity as of July 31st was down slightly to 97.3%, which is consistent with the typical seasonal trend observed between June and July. While maintaining healthy occupancy levels, we've also achieved 2.3% growth in our same-property occupied AMR year-over-year. Combined with effective cost initiatives, our Canadian same-property NOI margin remains strong at 64.2% for the six months ended June 30, 2026. Our balance sheet total debt represented 41.2% of real estate value as of June 30th, 2026, which is up modestly versus the previous year, mainly due to fair value losses recognized on investment properties. Overall, these results reflect the strength of the portfolio and the team in which it continues to be a challenging operating environment. That said, while market conditions remain competitive, we are beginning to see early signs that operating fundamentals may be stabilizing. In line with that, we will have several consecutive months of moderation in our loss to lease on turnovers, which we'll discuss in more detail later on in the call. I'd now like to spend a few minutes highlighting our capital allocation priorities. Turning to slide six, over the past several years, CAPREIT has significantly enhanced the quality of its portfolio. Today, approximately 68% of the portfolio consists of core legacy assets, of which 97% are located in rent-patrolled markets. This provides stability in our rent growth profile, even in the softer operating environment, given the significant embedded mark-to-market opportunity across these assets. A further 19% of the portfolio is comprised of recently constructed communities that are expected to benefit from lower capital requirements, greater operating efficiencies, and strong long-term earnings growth potential as market fundamentals normalize. The remaining 13% of the portfolio across Canada and Europe represents the source of continued capital recycling. With this, while we remain disciplined and optimistic, selectively monetizing low cash yield analysis where value has been maximized and redeploying that capital into investments accretive to FFO per unit in the near term. In addition to optimizing the portfolio through ongoing repositioning, we've been investing in the implementation of a new ERP system in order to enhance our leasing capabilities, improve data-driven decision-making, streamline processes, and support further optimization of our cost structures over time. More broadly, as I continue to assess the business over the coming quarters, I'll be evaluating the entire portfolio to ensure that every capital allocation and decision supports stronger FFO per unit growth and enhanced long-term cash flow position and the creation of sustainable value for our unit holders. With those objectives in mind, our NCIB program continues to represent compelling use of capital available to us in the current environment. You can see on slide 7 that since 2022, we deployed approximately $1 billion to repurchase nearly 24 million trust units at an average price of approximately $43 per unit. And as I mentioned earlier, during 2026, we invested approximately $71 million to buy back trust units at a weighted average price of $36 per unit. which represents a sizable discount to our June 30th diluted NAV of $54 per unit. We believe these accretive repurchases not only create immediate value today, but also positions unit holders to benefit more fully in the value created once rental housing market fundamentals return to balance. And that inflection is ultimately reflected in the capital markets. Going forward, we'll continue to evaluate the NCIB alongside every other capital allocation alternative. and deployed funds into the program where repurchases are accretive to FFO per unit and NAV per unit while remaining leverage neutral. With that, I'll turn the call over to Stephen to walk through our operational and financial results. Thanks, Brad.