CT Real Estate Investment Trust

Thank you for standing by. The speakers on today's call are Kevin Salzberg, President and Chief Executive Officer of C.T. Reid, Jody Spiegel, Senior Vice President, Real Estate, and Leslie Gibson, Chief Financial Officer. Today's discussion contains information that may constitute forward-looking information within the meaning of applicable securities laws, although C.T. Reid believes that the Forward-looking information in today's discussion is based on information, estimates, and assumptions that are reasonable. Such information is necessarily subject to a number of risks, uncertainties, and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking information. For information on these material risks, uncertainties, factors, and assumptions, please see the REIT's second quarter 2026 and full year 2025 MDNA, as well as the 2025 AIF, which are available on the website and filed on CDAR+. The REIT does not undertake to update any forward-looking information, whether written or oral, except as is required by applicable laws. And now I'd like to turn the call over to Kevin Salisbury, President and Chief Executive Officer of CTREIT. Kevin?

Thank you, Jonathan. Good morning, everyone, and thank you for joining us on our call today. CTREIT delivered another solid quarter in Q2, reflecting the strength and resilience of our portfolio and the disciplined execution of our strategy. Our objective remains unchanged. to be Canada's premier net lease REIT by delivering strong risk-adjusted returns, portfolio stability, and reliable, durable, and growing distributions for our uniholders. During the second quarter, we continued to advance that objective through a combination of strong operating performance, strategic investments, advancing our development activity, and prudent capital management. From an operating perspective, our results once again demonstrated the durability of our business model. Our portfolio remains substantially fully occupied, and we continue to successfully address upcoming lease maturities. Same property NOI, including the benefits of our intensification program, grew 2.5%. AFFO per unit on a diluted basis also increased 2.5% year over year, while overall NOI increased 4.8%. We were also active on the growth front during the quarter. In addition to completing a $13 million bend-in in St. Catharines, Ontario, we closed approximately $76 million of previously announced investments and developments that added more than 230,000 square feet of incremental GLA to the portfolio. Jody will discuss these investments in greater detail in a moment, but these activities demonstrate our ability to continue growing through a mix of acquisitions, developments, and intensifications while remaining focused on opportunities that complement our existing portfolio and generate attractive long-term returns. Another highlight during the quarter was the successful issuance of $300 million of Series K unsecured debentures. This transaction allowed us to refinance maturing debt, extend our debt maturity profile, and further strengthen our financial flexibility. As Leslie will describe, we remain well-positioned to fund our development pipeline and pursue future investment opportunities as they arise. Finally, as we previously disclosed, our board recently approved a 3.5% increase in our monthly distributions, which took effect in the quarter. The increase is supported by our conservative AFFO payout ratio and marks another step in CT REIT's long-term track record of distribution growth and value creation for our unit holders.

Overall, we were pleased with our performance in the quarter and remain confident in the outlook for the business.