CT Real Estate Investment Trust

Good morning, my name is Gigi, and I'll be your conference operator today. At this time, I would like to welcome everyone to CTREIT's Q1 2025 Earnings Results Conference 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 would like to ask a question during that time, simply press star 1-1 on your telephone keypad. To withdraw your question, please press star 1-1. The speakers on the call today are Kevin Salzberg, President and Chief Executive Officer of CTREIT, Jody Spiegel, Senior Vice President, Real Estate, and Leslie Gibson, Chief Financial Officer. Today's discussion may include forward-looking statements. Such statements are based on management's assumptions and beliefs. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from such statements. Please see CT Reads Public Filings for a discussion of these risk factors, which are included in their Q1 2025 and Annual 2024 Management Discussion and Analysis, as well as their 2024 Annual Information Form. all of which can be found on CTREIT's website and on CDAR+. I will now turn the call over to Kevin Salzberg, President and Chief Executive Officer of CTREIT. Kevin?

Thank you, Gigi. Good morning, everyone, and thank you for joining us this morning on CTREIT's first quarter investor conference call. I am very pleased to report that Q1 was another strong quarter for CTREIT. Our solid portfolio continues to provide a steady and growing base that underpins our ability to deliver reliable and durable results, even in these challenging macroeconomic times. With occupancy stable again this quarter at 99.4%, we delivered growth in same-store NOI of 1.5%, which when coupled with our intensification activity over the past year, led to growth in same-property NOI of 3.1%. NOI overall grew at 4.6% on the back of the same property NOI growth, coupled with growth driven by recently completed acquisitions and developments, as well as a development fee earned in the quarter. This development fee relates to entitlement work that CT re-completed on behalf of Canadian Tire for one of its own properties located in the City of Toronto, and Jody will speak to this a little further in her remarks. The robust growth in net operating income drove AFFO per unit growth of 3.9% in Q1, a very strong showing. On the back of these positive results, our Board of Trustees approved an increase in our distributions of 2.5%, payable with the July 2025 distributions. This represents the 12th time since our initial public offering in 2013 that we have provided our unit holders with such an increase in the monthly amounts they receive from us. A unit holder who has been with us since IPO has enjoyed a 45.9% cumulative increase in distributions paid since that time, which represents a 3.3% compound annual growth rate, a track record that we are very proud of. When I look back over the last five years, whether we were managing our way through a pandemic, volatility spurred on by rapidly rising interest rates, or the most recent economic turmoil and uncertainty brought about by tariffs, CTREIT has managed to consistently deliver strong growth in earnings, increase its distributions on an annual basis, and maintain its strong balance sheet and credit metrics. I am appreciative of the efforts of our team and our relationship with Canadian Tire, which are key drivers of this success, and which put us in a great position to continue to navigate our way through these volatile times. I will now turn it over to Jody and Leslie to provide some additional details on the quarter, our results, and our leasing and development activities.

Thanks, Kevin, and good morning, everyone. As Kevin mentioned, the REIT earned a development fee from Canadian Tire in the quarter for work completed related to the submission of official plan and zone by-law amendment applications for a commercially zoned property owned by CTC in the City of Toronto. These applications, which have now been approved, have set the stage to allow for a mix of uses on-site, including residential and retail, and achieved a total density of approximately 900,000 square feet, as well as permissions for approximately 1,050 residential units. The REIT oversaw and managed this process and was successful in achieving these entitlements. Neither Canadian Tire nor CTREIT currently have any plans or intentions to redevelop this property. We are pleased to report that our own development activities continue to provide tremendous opportunities for us to grow our portfolio of high quality assets. For example, early in the quarter, CTREIT entered into a ground lease agreement with a third party to facilitate construction that is now underway of a new Canadian tire store in Kelowna, British Columbia. Upon completion in Q4 2025, this store will add approximately 186,000 square feet of incremental GLA to our portfolio and will be built to Canadian Tire's Net Zero Ready prototype, which has an energy efficient design. And our development pipeline overall remains strong with 20 projects at various stages, with approximately half of these projects expected to be finished this year, and the remainder expected to be completed in 2026 and beyond. These developments represent a total committed investment of approximately $331 million upon completion, 112 million of which has already been spent, and 154 million of which we anticipate will be spent in the next 12 months. Once built, these projects will add a total incremental GLA of approximately 891,000 square feet to the portfolio, approximately 97% of which has been pre-leased. During the quarter, CTREAD also completed two Canadian tire store lease extensions, and as at the end of Q1, The weighted average lease term for our portfolio was 7.5 years, which remains one of the longest in the sector. As Kevin mentioned earlier, at the end of the quarter, CTREIT maintained its 99.4% off-frequency rate. With that, I will turn it over to Leslie to discuss our financial results. Leslie?