Keeping You Informed - Q1 2024

During the first quarter of 2024, Crown identified opportunities for strategic acquisitions.  Although the office asset class is often oversimplified in general discussions, we take a more detailed approach beyond the headlines and are finding valuable investment opportunities through careful analysis.The uncertain economic environment has led to a reluctance on the part of owners and lenders to transact.  However, this quarter marked a significant change as sellers began to adjust their expectations to better match market realities.  These changes are improving conditions for transactions and Crown is well-positioned to capitalize on these opportunities.Key highlights from the first quarter that underscore our deep market intelligence and bolster our confidence as we evaluate opportunities include:

• Successfully acquired a 160,000 sq. ft. office complex (located on an 11-acre site) from a publicly traded REIT on attractive risk-adjusted returns for our value-add fund;
• Executed contracts to sell $178 million of fund properties, including an office asset valued at approximately $80 million to a buyer interested in longer-term development potential;
• Evaluated over $700 million of potential commercial investment opportunities and underwrote over $200 million; and
• Submitted LOI’s for over $150 million of on- and off-market offerings, including a sizeable Toronto office property;

Crown’s integrated operating platform further enhances our competitive advantage, providing further insights regarding leasing opportunities, cost of capital, and construction expenses.  This quarter, we achieved the following milestones in our fund portfolio:

• Completed ~183,000 sq. ft. of leasing transactions, surpassing our budgeted sq. ft.;
• Secured renewal rates at or above in-place rents for almost 80% of these transactions; and
• Advanced discussions for over $120 million in financing with various lenders.

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Looking ahead, as interest rates and inflation trajectories become clearer through 2024, we anticipate a market characterized by better-informed sellers and consequently, narrowing bid-ask spreads. We are optimistic about the coming months and remain committed to keeping you updated as we continue to leverage these market conditions, our position in the market, and our platform, to deliver superior returns and better work environments.Thank you for your continued trust and partnership.