Dream Office Real Estate Investment Trust

Good morning, ladies and gentlemen, and welcome to the Dream Office Reef third quarter 2026 conference call for Friday, November 6th, 2026. During this call, management of Dream Office Reef 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 Reef's control. that could cause actual results to differ materially from those that are disclosed in or implied by such forward-looking information. Additional information about these assumptions and risks and uncertainties is contained in Dream Office REIT's filings with securities regulators, including its latest annual information form and MD&A. These filings are also available on Dream Office REIT's website at www.dreamofficereit.ca. Later in the presentation, we will have a question and answer session to queue up for a question, press star 1 on your telephone keypad. Your host for today will be Mr. Michael Cooper, Chair and CEO of Dream Office Reef. Mr. Cooper, please go ahead.

Thank you very much and welcome everybody to our third quarter conference call. I'm here today with Derrick Kingsley and Jay who will speak in that order. Just before I turn it over to them, I would say that the last five quarters have been really good for the office market in Canada, especially in Toronto. We've been seeing significant lease in volume, reduction of sublease base, reduction of vacancy, increase of occupancy. And it looks good, obviously. You know, it started with the highest, most expensive buildings, and it is working its way down. We're pretty pleased with the progress we've had throughout this period. Each lease is still a lot of work. It's not like falling off a log. but it's generally been in one direction which is positive. I think we're starting to get more momentum and Adelaide Place is almost full. 30 Adelaide is in great shape. I mean most of our buildings are great and the ones that are a little bit behind are catching up so we're feeling quite positive. The punch to the gut was finding out that ILAC had ceased operations. Even the senior management didn't know about it. We had worked with them on a lot of things. We had no expectation of Thank you, Michael, and good morning.

The Canadian office sector experienced positive momentum in Q3 2026. National vacancy decreased by 40 basis points quarter-over-quarter to 16.7%. Of note, downtown Toronto vacancy decreased by 90 basis points to 13.1% and experienced 790,000 square feet of positive absorption over this period. In addition, national subway space fell 1.3 million square feet, representing the largest quarterly drop since 2005. This base currently sits below 9 million square feet, marking the first time since Q2 2020 and is down approximately 50% from its peak. In Q3 2026, Dream Office completed 43,000 square feet of new leases and 49,000 square feet of renewals. Toronto committed occupancy was 90% at the end of the quarter and was flat compared with Q2 2026. Other markets committed occupancy was 74.9%, representing an increase of 300 base points quarter over quarter. The increase was due to new leasing, representing 140 basis points of the increase, and the reclassification of Sussex Centre into a joint venture, representing 160 basis points. Jay will speak on the recast later in the call. On September 18th, International Language Academy of Canada, or ILAC, filed for bankruptcy and ceased operations. ILAC previously occupied 132,000 square feet across our Toronto portfolio. The leases were displayed in October. At 655 Bay Street, we have backfilled 53,000 square feet, immediately offsetting approximately 40% of the total vacated area by ILAC. Kingsville will provide additional color on ILAC as well as our progress on backfilling this space later on the call. At 606 4th Street in Calgary, our conversion from office to residential remains on track. The old office windows, building envelope, and facade have been removed and replaced with a new energy-efficient window wall system. Interior electrical, mechanical, plumbing, and finishing work is progressing as planned. Project timelines and costs remain in line with expectations. All major construction packages have been tendered, which enhances the predictability of project costs. First occupancy is targeted for Q3 2027. For the quarter, compared properties NOI increased by 4.5% year-over-year to $24.4 million. The increase was due largely to new leasing in Toronto, as well as higher step-ups in rent and other markets. For Toronto, comparative property NLI increased by 4.1% year-over-year to $20.3 million. Through Q3 2026, we were turning ahead of our prior committed and in-place occupancy guidance. However, as a result of the ILEX departure, which occurred post-quarter end, we are updating our year-end Toronto committed occupancy target to 85% to 87% and our in-place occupancy target to 82% to 84%. These revised targets reflect the impact of ILEX departure Partially offset by tenants taking occupancy under contracted leases. Higher NOI from other properties and portfolio in the fourth quarter is expected to mitigate the net impact of ILAC's departure. As a result, we are maintaining our 2026 comparative properties NOI growth targets of 3-5% for downtown Toronto and 1-3% for the total portfolio. Overall, Q3 2026 was a strong operational quarter. while we were disappointed by Alex's departure, we are pleased to have converted a sizable footprint of the former sub-tenant's legacy to a head lease. We remain confident in our ability to relieve the remaining space and recover income over time. I'll now turn the call over to Kingsley for more color on our leasing progress and what we're seeing on the ground.