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 Q4 2025 Earnings 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 CTE, Jody Spiegel, Senior Vice President, Real Estate, and Leslie Gibson, Chief Financial Officer. Today's discussions 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 CTREIT's public filings for a discussion of these risk factors, which are included in their Q4 2025 Management Discussion and Analysis and 2025 Annual Information Form, 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, and good morning, everyone. We were very pleased to report that 2025 shaped up to be a great year for CTREIT. In the face of continued geopolitical uncertainty and macroeconomic disruption, CTREIT once again delivered on its value proposition to unit holders. CTREIT's goal is to provide its investors with strong returns, growing distributions, and stability. We manage our business with these hallmarks in mind. focusing on growth opportunities that leverage our strategic relationship with Canadian Tire, optimizing our existing asset base, and maintaining a balance sheet that provides us with a resilient foundation. In 2025, we successfully deployed approximately $235 million and added nearly 900,000 square feet of new retail to our portfolio, with approximately 400,000 square feet of that being added in the fourth quarter alone. Although we were very pleased with the quantum and quality of the new space that we brought on this past year, as I discussed on our conference call last quarter, we were even happier with how we delivered these results. Across 13 discrete investments, our team found new opportunities to acquire assets from third parties, to redevelop and improve existing CT REIT properties, and to build new locations, both for Canadian Tire and for other third party tenants. As we look to the future, we will lean into these growth levers and the core competencies that we have built in order to continue to create value for our unit holders and to improve our portfolio. This portfolio growth coupled with our foundation of contractual rent escalations and our successful lease renewals contributed to our strong financial performance in 2025. As we have seen across our peer group, demand for retail space continues to outpace supply and the fundamentals for retail real estate are currently very strong. Jody will provide a little more color on this momentarily, but we continue to leverage this dynamic to drive organic growth and seek out new opportunities. Our successes over the course of the last year led to solid growth in our bottom line. In the fourth quarter, net operating income grew by 4.9%, and adjusted funds from operations per unit grew by 2.9%. For the full year, growth in net operating income came in at 4.6%, and adjusted funds from operations per unit grew by 2.8%. And we achieved this growth while maintaining our payout ratio in the low 70% range and further reducing our indebtedness ratio by approximately 130 basis points relative to the end of 2024. We were also pleased that construction began at the Kansas Square property related to Canadian Tire's new long-term head office lease in Q4. This project will substantially refurbish the existing 640,000 square foot office complex with completion anticipated towards the end of 2028. With the improvements that we will be making to the property and the new Eglinton LRT line now operational, the future for this asset looks bright. I want to take a moment to recognize the CTREIT team for their hard work and dedication over the past year. In addition to our financial and operational achievements, We made a difference in our communities in 2025 through our fundraising efforts, the way we managed our assets, and through our various sustainability-related initiatives. I am very proud of the efforts of our entire team, and I'm optimistic about what 2026 will bring for CTREIT as we continue to advance our business. And with that, I will pass it over to Jody for her comments on our investment development and leasing activity. Jody?

Thanks, Kevin, and good morning, everyone. As highlighted in our press release yesterday, we were pleased to have completed several previously announced projects in the fourth quarter. These included six intensification projects, five of which represented expansions of existing Canadian Tire stores that are located in Victoria, British Columbia, Winnipeg, Manitoba, Fergus and Brampton, Ontario, and Donacona, Quebec. The last intensification project related to the development of a third-party pad at an existing Canadian Tire anchored property in Fort Francis, Ontario. In Q4, we also completed the development of a new 172,000 square foot Canadian Tire store in Kelowna, British Columbia, and the redevelopment of a vacant former Canadian Tire store in Lloydminster, Alberta. This building was successfully backfilled with a national grocer, furniture store, and a footwear retailer. Finally, as previously announced, We also acquired the freehold interest underlying an existing Canadian tire ground lease, as well as a multi-tenant commercial retail building in Fort Saskatchewan, Alberta. As Kevin noted, this is a very productive quarter for growth. In total, projects completed in the fourth quarter represented $160 million of investment and added more than 400,000 square feet of incremental GLA to the portfolio. They are also strong examples of how we collaborate with our principal tenant, Canadian Tire, to unlock additional value for our unifold. Looking ahead, our development pipeline remains healthy. We currently have 11 projects at various stages of progress, with four expected to be completed in 2026 and the remainder in 2027 and beyond. These developments, including the Canada Square office retrofit project in Toronto, represent a committed investment of approximately $329 million, of which $102 million has been spent to date. We expect to invest roughly $78 million over the next 12 months to advance these projects. Once completed, they will add just over 600,000 square feet of new GLA to the portfolio, approximately 95% of which is already pre-leased. Turning to leasing, During the fourth quarter, CT REITs completed a little over a million square feet of lease extensions, primarily comprised of 14 Canadian tire store lease renewals. For the full year, we completed 30 Canadian tire store lease extensions and overall renewed retail leases representing over 2 million square feet of GLA. For the full year, these renewals were completed at a weighted average first-year rental uplift of approximately 10.4%. As of year end, we maintained a long-weighted average lease term for the portfolio at 7.2 years, and our occupancy rate remained robust at 99.5%, up 10 basis points from a year ago. I will now turn it over to Leslie to discuss our financial results. Leslie?