Canadian Net Real Estate Investment Trust

Good morning. I would like to welcome everyone to the Canadian Net REIT second quarter 2022 earnings conference call. At this time, all participants are on a listen-only mode. Following the presentation, we will conduct a question and answer session. To ask the question during the session, you will need to press star 1-1 on your telephone. I would like to advise everyone that this conference is being recorded. I would now like to turn the conference over to Ben Gazee, Canadian NET REIT's Chief Financial Officer. Sir, you may begin.

Thank you, Operator. Good morning, everyone, and thank you for joining us on our Q2 2022 results conference call. Before we begin today, we are obliged to advise you that in talking about our financial and operating performance and in responding to questions today, we may make forward-looking statements, including statements concerning Canadian NET's objectives and strategies to achieve them, as well as statements with respect to our plans, estimates, and intentions, or concerning anticipated future events, results, circumstances, or performance, which are not historical facts. These statements are based on our current expectations and assumptions and are subject to risk and uncertainties that could cause our actual results to differ materially from the conclusions in these forward-looking statements. Additional information on the risk that could impact our actual results and the expectations and assumptions we applied in making these forward-looking statements can be found in CanadianNet's most recent annual information form for the year ended December 31st, 2021, and management's discussion and analysis for the period ended June 30th, 2022, which are available on our website at www.canadiannet.ca and on CDAR at www.cdar.com. We will also refer to non-IFRS financial measures today, which are widely used in the Canadian real estate industry, including FFO, FFO, and NOI. CanadianNet believes these financial measures provide useful information to both management and investors in measuring the financial performance and financial condition of CanadianNet. These financial measures do not have any standardized definitions prescribed by IFRS and may not be comparable to similarly titled measures reported by other entities. For more information, please refer to the section Non-IFRS Financial Measures of our MD&A for the period ended June 30th, 2022. I will now turn the call over to Jason Paravano, Canadian Net REITs President and CEO. Jason.

Thank you, Ben. Good morning. In the second quarter of 2022, we continue to execute our business strategy. We have maintained a portfolio of 101 properties at a near 100% occupancy level. During the quarter, we completed four acquisitions, while adding a new tenant to the portfolio, a giant tiger in Shura, Nova Scotia. In addition, we purchased a metro anchored property in St. André-Avlin, a standalone metro in Cheneville, and a Couchetard sea store and service station in St. Jerome. We continue to add properties to the portfolio that diversify the tenant mix, as well as the geographies we are exposed to. Strong retail properties in A locations and secondary markets. More so, these properties fall within the category of essential needs-oriented retail. Following the end of the quarter, we purchased our 100th and 101st properties, one of them being the first in the province of New Brunswick. The properties are a Midas in Fredericton, New Brunswick, and a 53,000-square-foot Rona in Châtellier, Quebec, two firsts for Canadian Net Read. These properties are positioned in irreplaceable locations, in high-traffic retail nodes, and lease to strong covenant retailers, similar to the composition of the existing portfolio. We will be completing the development of a QSR in the Cerre de Terrebonne in the coming weeks, and we recently began the redevelopment of an old Burger King into a Benny & Co. in the city of Jonquière. In the next quarters, we also plan to begin the development of three previously announced additional locations for the Benny & Co. banner. The REIT has a 40% interest in all the projects mentioned above. Shifting to what we're seeing in the market and the macroeconomic landscape, a popular topic of conversation right now is inflation and interest rates. Our business, which is focused on owning and acquiring properties on a triple net lease basis, allows us to be somewhat immune to inflation as higher operating costs are borne by our tenants. The REITs operating costs for our properties are almost exclusively charged back to our tenants under the structure of those leases, with a few exceptions. With respect to interest rates, we have been able to take advantage of mortgage assumptions at pre-hike levels, which has allowed us to take advantage of a meaningful spread between interest rates and going-in cap rates on newly acquired acquisitions. I will now turn over the call to Ben Gizith, Canadian RETS CFO. Ben.