Dream Office Real Estate Investment Trust

Good morning, ladies and gentlemen. Welcome to the Dream Office Read Q4 2025 conference call for Friday, February 20, 2026. During this call, management of Dream Office Read may make statements containing forward-looking information within the meaning of applicable securities legislation. Forward-looking information is based on a number of assumptions and is subject to a number of risks and uncertainties, many of which are beyond Dream Office Read's control that could cause actual results to differ materially from those that are disclosed in or applied by such forward-looking information. Additional information about these assumptions and risks and uncertainties is contained in Dream Office Reads filings with security regulators, including its latest annual information form and MDNA. These filings are also available on Dream Office Reads website at www.dreamofficeread.ca. Later in the presentation, there will be a question and answer session. To queue up for a question, please press star 1 on your telephone keypad. Your host for today will be Mr. Michael Cooper, Chair and CEO of Dream Office READ. Mr. Cooper, please go ahead.

Thank you. Welcome everybody to our fourth quarter conference call. Today, as always, we have Jay Jang, our CFO, but Kingsley Fortis, our Director of Asset Management, and Derek Lau, Senior Vice President of Portfolio Management, will be participating in the call. And maybe for some comment later or questions, we've got the original Gord with us, as it's been quite an interesting time. I guess in August... conference call, I was saying that I think that we're starting to see some real evidence that the market had changed, and if it continues for a number of quarters, it could make a difference. And in the two quarters that have followed, we really have seen a difference in what's happening in the market. I was speaking to a guy who runs a large company who leased hundreds of thousands of square feet in the fourth quarter, and he mentioned that normally they would go to the board, but because of timing and the concern that they were losing opportunities to rent large pieces of space. They moved ahead on the deal without going to the board. So I think a lot of the big pieces of space have been full. Yesterday I saw an article that CIBC Square is 100% leased for both buildings. You know, so the big buildings are full and we definitely are seeing a waterfall. We're pleased that we hit the numbers we had hoped for for the year in terms of committed occupancy, but we did a little bit better. We're seeing some significant tenants. I think Kingsley will walk through how we want to hit our numbers with some specific spaces we think we can lease. I'd say that we clearly are seeing a change in the office environment. We would expect that we'll see increased occupancy over time, but measured. It takes a while, and that takes a while for the tenants to take place, but we're clearly in a much better spot than we've been in. And it's a great celebration for March of 2026. That's been six years since COVID took place. When the federal government orders their people back to start in May or June, it'll be over six years since some of those buildings have been used. I have no idea what they're going to find, whether they've been properly taken care of. And I think that we're going to see governments as a new... I'm new to the market in terms of like the federal government really hasn't leased any space in six years. And I think we're going to start to see more action from the federal government and the Ontario government. So it's shaping up pretty good. And we also started to see that the leasing is sort of water falling down from the top buildings to the type of good buildings we have in good markets. So with that, I'm going to turn it over to Derek.

Thank you, Michael. And good morning. In Q4 2025, we saw encouraging signs across the Canadian office sector, with national vacancy decreasing by 40 basis points to 18%. The decrease was led by Toronto, which realized 1 million square feet of positive absorption and overall vacancy decreasing by 120 basis points to 15.9%. With much of the absorption occurring in Class A buildings, tighter conditions are expected to have a trickle-down effect into remaining office spaces. We are also seeing a decrease in sub-lease space, which returned to 2017 levels. This reflects increasing return to office mandates and a decrease in corporate space optimization efforts. In 2025, Dream Office delivered its strongest leasing year since before the pandemic. We completed approximately 830,000 square feet of leasing, with Toronto accounting for roughly 85% of that volume. Activity accelerated through the year, with new lease economics outperforming our internal budget. We ended the year with downtown Toronto committed occupancy at 87.4% and in-place occupancy at 79.4%. The bulk of the spread is scheduled to commence in 2026. In other markets, we completed 130,000 square feet of leasing, largely comprised of renewables, which is in line with our recent historical pace. Committed occupancy decreased by 340 basis points this quarter to 72.1%. This largely reflects the sale of our Kansas City asset. Excluding this, committed occupancy would have been largely flagged quarter over quarter. Moving to specific projects, at 606 4th Street in Calgary, our conversion from office to residential is progressing well, with project timelines and costs in line with expectation. We continue to target first occupancy in the third quarter of 2027. In downtown Toronto, we completed the redevelopment at 67 Richmond. We are pleased to announce that we have secured a 32,000 square foot lease, which represents the entire remaining vacancy. The leases to a high-quality tenant has raised nearly US $3 billion in capital. Base rents are starting at $35 per square foot and increased to nearly $48 over the 10-year term. The economic lease commencement will occur in stages starting in June 2026 and the remainder in December. Before 2026, we are targeting committed occupancy in downtown Toronto to be in the 88 to 89% range by year end and in-place occupancy to range between 82 and 85%. Based on this leasing momentum, we are targeting comparative NOI growth for downtown Toronto of 2 to 5% for 2026. Comparative NOI growth for the total portfolio, inclusive of our other markets, is expected to be approximately 1 to 3%. We had good leasing results in 2025. Looking ahead, if we were to continue this momentum and achieve average in-place occupancy of 90% in the downtown Toronto portfolio, this would generate incremental NOI of approximately $15 million to $20 million, all else being equal. This would bring downtown Toronto comparative NOI to $95 million to $100 million, including 67 Richmond. Our leasing priorities include 74 Victoria, 30 Adelaide, and our Bay Street assets, where we have seen good leasing at our model suites. At 74 Victoria, we are seeing increased traction. This follows the recent renovation of two model suite floors with several tours and a recent broker event that was well attended. Overall, we have made good leasing progress in 2025, and we are encouraged by the recent improvement in office fundamentals. This includes return to office mandates and broader market activity in the back half of the year. As the sector continues to rebound, our team at State focused on proactive leasing, disciplined risk management, and maintaining high-quality assets. That focus has translated into results, including at Adelaide Place. With AAA vacancy below 4%, we are seeing the impact of our efforts at our highest quality assets, and we are starting to see this in our Bay Street collection. We have delivered steady gains to committed occupancy in downtown Toronto and stability in our other markets. While we recognize that the sector remains challenging, we are well positioned to actively manage these risks through 2026. I will now turn the call over to Kingsley, who will provide some more deal color and what we're seeing on the ground.