H&R Real Estate Investment Trust

Good morning and welcome to H&R Real Estate Investment Trust 2025 Third Quarter Earnings Conference Call. Before beginning the call, H&R would like to remind listeners that certain statements, which may include predictions, conclusions, forecasts or projections, and the remarks that follow may contain forward-looking information which reflect the current expectations of management regarding future events and performance and speak only as of today's date. Forward-looking information requires management to make assumptions, or rely on certain material factors and is subject to inherent risks and uncertainties, and actual results could differ materially from the statements in the forward-looking information. In discussing H&R's financial and operating performance and in responding to your questions, we may reference certain financial measures which do not have a meaning recognized or standardized under IFRS. or Canadian generally accepted accounting principles and are therefore unlikely to be comparable to similar measures presented by other reporting issuers. Non-GAAP measures should not be considered as alternatives to net income or comparable metrics determined in accordance with IFRS as indicators of H&R's performance, liquidity, cash flows, and profitability. H&R's management uses these measures to aid in assessing the REIT's underlying performance and provides these additional measures so that investors can do the same. Additional information about the material factors, assumptions, risks, and uncertainties that could cause actual results to differ materially from the statements in the forward-looking information and the material factors or assumptions that may have been applied in making such statements together with details on H&R's use of non-GAAP financial measures are described in more detail in H&R's public filings, which can be found on H&R's website. and www.cedarplus.com. I would now like to introduce Mr. Tom Hofstetter, Chief Executive Officer of H&R REIT. Please go ahead, Mr. Hofstetter.

Thank you, and good morning, everyone. With me today is Larry Froome, our CFO, Emily Watson, President of the Plantower Residential. We have a lot to talk about today, so I think I'll just jump in and hand it over to Larry, followed by Emily, and then Q&A, right?

Thank you, Tom, and good morning, everyone. As at September 30th, 2025, the value of our real estate assets broken down between our segments are as follows. Residential is our largest segment at 50%, industrial 19%, office 16%, and retail 15%. By geography, 71% of our real estate assets by value are now located in the United States. Overall, given the headwinds we face with multi-family supply concerns, a weak office market, the tariff war creating general market uncertainty, and a weaker Canadian economy, we are very pleased with our results, and in particular the 2.1% growth in same property net operating income on a cash basis for the nine months end of September 30th, 2025, compared to the same period last year. For the nine months end of September 30th, 2025, FFO was 90 cents, Same as a nine month period ending September 30th, 2024. An amazing result considering that property sales of approximately 500 million over the 21 month period from January 1, 2024 to September 30th, 2025. Breaking down our same property net operating income on a cash basis between the segments. Residential was down 3.4% for Q3, 2025 versus Q3 last year. and was up 1.2% for the nine months toward 2025 versus the same period last year. Emily will provide more details on Nantower's results shortly. Our offer segment, same property net operating income on a cash basis, increased 0.5% for Q3 versus Q3 last year and was up 1.5% for the nine months 2025 versus the same period last year. primarily due to the strengthening of the US dollar. Our office occupancy of September 30th, 2025 was 96.9% with an average remaining lease term of 5.3 years. Our office portfolio now consists of 15 properties and comprise 16% of our total portfolio. Retail segment same property net operating income cash basis increased 5.3% for Q3 2025 versus Q3 last year and was up 7.3% for the nine months 2025 versus the same period last year due to occupancy gains in river landing and forests. Industrial segment same property net operating income decreased 7.5% for Q3 2025 versus Q3 last year and was down 1.9% for the nine months 2025 reversed the same period last year. Industrial occupancy decreased from 98.9% on December 31st, 2024 to 89.9% on September 30th, 2025. During the quarter, we leased our newly constructed 122,000 square foot industrial property at 6,900 minutes road. This lease will commence in December 2025. In addition, a further 108,000 square feet of vacant industrial space was leased with these leases commencing in Q4 this year and Q1 next year. Our SFO payout ratio was a healthy 50% for the nine months end of September 30th, 2025. And our ASFO payout ratio was also healthy at 61.3%. Our balance sheet remains strong. That's the total assets with the least proportion of share at September... 30th, 2025 was 47.3% and debt to EBITDA was 9.3 times. Our own encumbered property pool totaled approximately $4.1 billion. With that, I'll turn the call over to Emily for an update from the Landtower residential segment. Emily, please go ahead.