Keeping You Informed - Q2 2024

We are pleased to release our Q2 financial reports, highlighting our progress for the quarter and reaffirming our value-add investment thesis. The quarter concluded with significant economic developments, including the Bank of Canada’s (“BoC”) first interest rate cut since March 2022, followed by another reduction in July. These movements signal a new steady state for interest rates, which we anticipate will accelerate transaction activity, as vendors’ pricing expectations adjust.

At our annual investor meeting in June, we reinforced our belief in the value-add investment thesis, which is even more compelling in a higher interest rate environment. Our focus remains on unlocking value and driving resilient returns by leveraging our vertically integrated platform and expertise in retrofitting buildings. Key highlights of the quarter include:

• Extracting value from excess land via severance: We unlocked value from a site in Ottawa by entering into a sale contract for excess land we are severing from a fund property
• Adding value to commercial sites through intensification: We obtained community council approval for 1.2 million sq. ft. of residential density in Toronto (final approval expected by Q3).
• Continuing our strategic transactions and refinancing program: We have one property under contract for disposition and two properties for which we’re conducting acquisition due diligence. We have also worked to refinance over $92 million of mortgages.
• Completing proactive leasing efforts: year to date, we completed 473,000 sq. ft. of leasing, in line with our budget targets, including 128,000 sq. ft. of new leasing across our fund portfolio.
• Releasing our ESG Report: We published our ESG Report, “Rational Investments, Resilient Returns”, providing disclosures following best-practice frameworks
• Being recognized as one of Canada’s Top Small & Medium Employers, as well as one of Canada's Greenest Employers for 2024.

The challenges of today’s economic landscape are not obstacles, but opportunities for those with vision and expertise. Our value-add strategy isn’t just a response to these conditions—it’s a proven approach designed to thrive in them. As we continue to navigate this new equilibrium, our commitment to unlocking value, driving operational excellence, and capitalizing on market inefficiencies positions us for success. The results we’ve achieved this quarter are a testament to the effectiveness of our strategy and the dedication of our team.

We invite you to review our detailed reports for a deeper dive into the performance of your investments and to look beyond the headlines. We thank you for your continued partnership and support and look forward to our next conversation.