Choice Properties Real Estate Investment Trust

Good morning. My name is Rob and I will be your conference operator today. At this time, I would like to welcome everyone to the Choice Properties Real Estate Investment Trust first quarter 2026 earnings call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you'd like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you'd like to withdraw your question, press star one again. Thank you. I will now hand the call over to Simone Cole, General Counsel and Secretary. Please go ahead.

Thank you. Good morning and welcome to Choice Properties Q1 2026 conference call. I'm joined this morning by Rail Diamond, President and Chief Executive Officer, Aaron Johnston, Chief Financial Officer, Niall Collins, EVP Development and Construction, and David Moalem, SVP Leasing and Operations. Rael and Erin will provide a brief recap of our first quarter operational results and highlights before we open the line for Q&A, where Niall and David will join to answer your questions. Before we begin today's call, I would like to remind you that by discussing our financial and operating performance and in responding to your questions, we may make forward-looking statements, including statements regarding choice properties, objectives, strategies to achieve those objectives, as well as statements with respect to management's beliefs, plans, estimates, intentions, outlook, and similar statements concerning anticipated future events, results, circumstances, performance, or exceptions that are not historical facts. These statements are based on our current estimates and assumptions and are subject to the risks and uncertainties that could cause actual results to differ materially from the conclusions in these forward-looking statements. Additional information on the material risks that can impact our financial results and estimates and the assumptions that were made in applying and making these statements can be found in the recently filed Q1 2026 financial statements and management discussion and analysis, which are available on our website and on CDAR+. And with that, I turn the call over to Rael.

Thank you, Simone, and good morning, everyone. Welcome to our Q1 conference call. Before I begin my remarks on our strong first quarter results, I'd like to first briefly revisit the transformational transaction we announced two weeks ago. On April 16th, we announced that Choice, together with our partner, Kingstead Capital, has agreed to acquire First Capital REIT for approximately $9.4 billion. At closing, Choice will acquire approximately $5 billion of First Capital's high-quality retail assets with Kingsett acquiring the remaining assets. This is a highly compelling transaction. Opportunities to acquire assets of this quality and scale are extremely rare, especially those that align so closely with our strategy. This acquisition further strengthens our portfolio and solidifies choice as Canada's leading REIT. We look forward to providing updates on this transaction's progress throughout the year. Turning now to our first quarter results, we delivered another healthy quarter of strong operating and financial results as our team continues to execute on our strategic priorities. In Q1, portfolio occupancy remained resilient at 98.1%, supported by exceptional renewal activity across our portfolio with average leasing spreads of 21.8%, driving same asset and OR growth of 3%. We're encouraged by strong leasing momentum across the portfolio with healthy activity in both retail and industrial. We continue to backfill retail space, execute on value creation initiatives, and drive industrial growth at near full occupancy. Focusing on retail, we continue to see healthy demand across the portfolio from a variety of necessity-based retailers. During the quarter, we completed 364,000 square feet of renewals and 97,000 square feet of new leasing. Occupancy was largely unchanged at 97.9%. Renewal spreads remained very strong at 17.2%, led by Atlantic and Ontario regions. The spread was primarily driven by 28,000 square foot renewal representing the first market renewal in 15 years for this tenant, which had been paying well below market rents. Excluding this renewal, the average retail spread was still strong at 13.2% and in line with our expectations. Retail retention was 75.8%. This was largely driven by the early termination of two Toys R Us locations and a strategic termination that is already backfilled at higher rents, totaling approximately 50,000 square feet. Excluding these terminations, retention was approximately 85%. This is broadly in line with our historical rates and consistent with our strategy of capturing value from tenant turnover in a strong retail leasing environment. Over half the space vacated this quarter already has committed deals. These leases are expected to commence later this year. We're encouraged by backfilling progress at former Toys R Us locations as we are in advanced leasing discussions with multiple retailers. We have also advanced several value creation initiatives within our retail portfolio during the quarter, including the revitalization of the retail space at Bloor & Dundas. Loblaw vacated 90,000 square feet of warehouse space in a former Zellers in March of this year, and we're now repositioning the property to introduce a new shoppers drug mart and a grid line alongside Loblaw's investment in a no-fills conversion. This initiative is expected to generate approximately $2 million of incremental NOI at stabilization in the second half of 2027, and has created approximately $25 million in total incremental value. The revitalization does not introduce any additional lease encumbrances that would impact our longer-term redevelopment plans. Overall, these initiatives highlight the strength of our assets and our team's ability to identify and execute on value creation opportunities within our portfolio. In industrial, market conditions remain resilient across the country, with quarter-end occupancy of 98.6%. During the quarter, we completed 103,000 square feet of renewals at a spread of 46.2%, driven primarily by Alberta and Atlantic portfolios. Retention in the quarter was 56.6%, largely driven by 73,000 square foot non-renewal in Edmonton, where we were unable to accommodate the tenant's growth requirements. We also completed 24,000 square feet of new leasing in Alberta and Ontario that rents approximately 40% above our average in-place rates. In the GTA, we continue to see a tightening of supply of high-quality, large-bay industrial products as we continue to advance the next phase at Choice Caledon Business Park, we expect to be one of the only available options for new space over 750,000 square feet in the market next year. Lastly, in our mixed use and residential portfolio, occupancy remains stable with favorable leasing at certain residential assets. Moving to our transaction activity, with minimal activity in the quarter, As announced on our Q4 call, we completed two retail acquisitions in Montreal and Edmonton totaling $28 million. Beyond this, there was no additional transactions completed in the quarter. We are pleased to announce that Wellington Investments Limited has acquired our partner's 50% interest in our G2 purpose-built rental residential development in downtown Toronto that we expect to break ground on this year. This partnership allows Choice to advance the project with a strategically aligned equity partner while delivering meaningful, affordable housing to the City of Toronto. Finally, I want to acknowledge the release of our 2025 Environmental, Social, and Governance Report last night. This year's report highlights many of Choice's achievements over the last year, including the completion of the first full year of our three-year climate action roadmap, advancing our pathway to net zero by 2050, and the expansion of our social impact and placemaking initiatives nationwide. The report can be found in the sustainability section of our website, and I encourage you to all take a read. With that, I'll turn the call over to Erin to discuss our financial results and additional capital allocation activity. Erin?