Nexus Industrial REIT Announces Third Quarter 2026 Financial Results

News originally published by

November 6, 2026, 00:25 GMT

Net Income improved to $31.9 million; Normalized AFFO payout ratio⁽²⁾ improved to 95.6%

Strong operating performance driven by a healthy industrial occupancy⁽¹⁾ of 97%

TORONTO, Nov. 05, 2026 (GLOBE NEWSWIRE) -- Nexus Industrial REIT (the “REIT”) (TSX: NXR.UN) announced today its results for the third quarter ended September 30, 2026.

“I am thrilled with our third quarter results, as we continued to make progress as a Canada-focused pure-play industrial REIT,” said Kelly Hanczyk, CEO of Nexus Industrial REIT.

“We delivered excellent financial results, highlighted by a normalized AFFO payout ratio⁽²⁾ of 95.6% in the quarter. We realized sequential growth in all key metrics such as NOI⁽²⁾, Adjusted EBITDA⁽²⁾, FFO⁽²⁾ and AFFO⁽²⁾. These results were driven by strong operations, including a 97% occupancy, and healthy industrial Same Property NOI⁽²⁾ growth, as well as our development and capital recycling programs.

“We also completed our third investment grade bond offering, raising $300 million, which lowers our cost of capital while reducing risk.

“I am increasingly excited by our growth options. In the quarter we completed over 225 thousand square feet of renewals at an average lift of 29% over in-place and expiring rents. And, we advanced our micro-industrial project in Richmond, B.C., which has potential for use as data-infrastructure as early as Q1-2027 at outsized returns.

“I have never been more optimistic and excited for the future: we have first-class portfolio, strong operating platform, investment-grade balance sheet, and exceptional growth opportunities. I am confident that our strategy will continue to be rewarding for our unitholders” concluded Mr. Hanczyk.

Third Quarter 2026 Highlights:

Strong Industrial occupancy⁽¹⁾ of 97%, in line with June 30, 2026.
Normalized AFFO payout ratio⁽²⁾ improved by 1,130 basis points to 95.6% versus a year ago.
Completed renewals of 225,480 sq. ft. at an average spread of 29% over expiring and in-place rents.
Sold an industrial property located in Red Deer, AB for a price of $11.3 million.
Advanced the Richmond micro-industrial and data infrastructure development project.
Net income of $31.9 million driven by NOI⁽²⁾ of $34.7 million, and fair value adjustments (gains) of $18.1 million, partially offset by finance expense of $17.4 million, general and administrative expense of $2.1 million, and loss from equity accounted investment of $1.1 million.
NOI⁽²⁾ increased by 7.8% versus a year ago to $34.7 million primarily driven by growth in Same Property NOI, incremental NOI from completed developments and newly acquired industrial properties.
Industrial Same Property NOI⁽²⁾ increased 4.2% versus a year ago to $31.5 million driven by higher occupancy and market lift on renewals.
Normalized FFO⁽²⁾ per unit increased $0.013 versus a year ago to $0.194 and Normalized AFFO⁽²⁾ per unit increased $0.020 versus a year ago to $0.166.
Issued $300.0 million, 4.563%, 3.5 year Series C senior unsecured debentures and used the proceeds to repay existing indebtedness.

Year-to-Date 2026 Highlights:

Industrial occupancy⁽¹⁾improved to 97% from 96% at December 31, 2025.
Normalized AFFO payout ratio⁽²⁾ improved by 570 basis points to 98.0% versus a year ago.
Completed renewals of 646,573 sq. ft. at an average spread of 11% over expiring and in-place rents.
Sold an industrial property located in Red Deer, AB for a price of $11.3 million.
Sold an industrial property located in Calgary, AB for a price of $8.5 million.
Sold 80% interest in development land located in Hamilton, ON for a price of $14.1 million.
Transitioned the development projects in Richmond and Kelowna to include an option for data infrastructure use.
Net income of $51.2 million driven by NOI⁽²⁾ of $102.6 million, and fair value adjustments (gains) of $10.5 million, partially offset by finance expense of $53.5 million, general and administrative expense of $6.8 million, and loss from equity accounted investment of $1.0 million.
NOI⁽²⁾ increased by 6.4% versus a year ago to $102.6 million primarily driven by growth in Same Property NOI, incremental NOI from completed developments and newly acquired industrial properties.
Industrial Same Property NOI⁽²⁾ increased 3.2% versus a year ago to $91.0 million principally due to higher occupancy and market lift on renewals.
Normalized FFO⁽²⁾ per unit increased $0.004 versus a year ago to $0.560 and Normalized AFFO⁽²⁾ per unit increased $0.022 versus a year ago to $0.481.
Unitholders' equity increased by $36.4 million to $1.1 billion or $15.07 per unit. NAV per unit⁽²⁾ of $13.24 increased $0.02 or 0.2% versus December 31, 2025.
Issued $300.0 million, 4.236%, 3 year Series A senior unsecured debentures and $200.0 million, 4.641%, 5 year Series B senior unsecured debentures in April 2026, and $300.0 million, 4.563%, 3.5 year Series C senior unsecured debentures in September 2026, and used the proceeds to repay existing indebtedness.
Unencumbered investment properties as a percentage of total investment properties improved to a high of 59.2% representing $1.5 billion of total unencumbered assets, as compared to 49.7% and $1.3 billion of total unencumbered assets as at December 31, 2025, respectively.

(1) In-place and committed.
(2) This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for details.

Subsequent events

On October 1, 2026, the REIT completed the sale of excess land located in Blackfalds, Alberta for a price of $2.5 million.

In October 2026, a secured credit facility of $20.5 million ($16.4 million at the REIT's ownership) relating to a co-owned property in which the REIT has an 80% interest was extended from its previous maturity date of November 30, 2026 to August 31, 2027. The REIT has provided a guarantee up to $10.2 million of the facility.

Summary of Results

(In thousands of Canadian dollars, except per unit amounts)	Three months ended September 30,				Nine months ended September 30,
	2026		2025		2026		2025
	$		$		$		$
FINANCIAL INFORMATION
Operating Results
Property revenues	45,744		43,295		138,383		130,071
NOI⁽¹⁾	34,694		32,197		102,646		96,437
Net income and comprehensive income	31,883		3,449		51,249		28,975
Adjusted EBITDA (LTM)⁽¹⁾	123,840		120,520		123,840		120,520

FFO⁽¹⁾	18,875		17,309		53,525		52,509
Normalized FFO⁽¹⁾	18,832		17,538		54,406		52,862
AFFO⁽¹⁾	16,125		13,988		45,815		43,834
Normalized AFFO⁽¹⁾	16,082		14,180		46,696		43,691
Distributions declared⁽²⁾	15,374		15,152		45,779		45,301
Same Property NOI⁽¹⁾	31,824		30,670		91,920		90,158
Industrial Same Property NOI⁽¹⁾	31,511		30,234		90,953		88,144

Weighted average units outstanding (000s):
Basic⁽³⁾	97,100		96,928		97,085		95,132
Diluted⁽³⁾	97,465		97,181		97,450		95,385

Per unit amounts:
Distributions per unit – basic^{(2) (3)}	0.160		0.160		0.480		0.480
Distributions per unit – diluted^{(2) (3)}	0.160		0.160		0.480		0.480

Normalized FFO per unit – basic^{(1) (3)}	0.194		0.181		0.560		0.556
Normalized FFO per unit – diluted^{(1) (3)}	0.193		0.180		0.558		0.554

Normalized AFFO per unit – basic^{(1) (3)}	0.166		0.146		0.481		0.459
Normalized AFFO per unit – diluted^{(1) (3)}	0.165		0.146		0.479		0.458

AFFO payout ratio^{(1) (2)}	95.3	%	108.3	%	99.9	%	103.3	%
Normalized AFFO payout ratio – basic^{(1) (2)}	95.6	%	106.9	%	98.0	%	103.7	%
Normalized AFFO payout ratio – diluted^{(1) (2)}	96.0	%	107.1	%	98.4	%	104.0	%

Same Property NOI Growth %⁽¹⁾	3.8	%	2.7	%	2.0	%	2.2	%
Industrial Same Property NOI Growth %⁽¹⁾	4.2	%	2.9	%	3.2	%	2.9	%

⁽¹⁾	This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for details.
⁽²⁾	Includes distributions payable to holders of Class B LP Units which are accounted for as finance expense in the consolidated financial statements.
⁽³⁾	Weighted average number of units includes Class B LP Units.

	September 30,		December 31,
	2026		2025
(In thousands of Canadian dollars, unless stated otherwise)	$		$
PORTFOLIO INFORMATION
Total Portfolio
Number of investment properties⁽²⁾	86		89
Investment properties fair value (excludes assets held for sale)	2,504,247		2,506,423
Gross leasable area (“GLA”) (in millions of sq. ft.) (at the REIT's ownership interest)	12.1		12.4
Industrial occupancy rate – in-place and committed (year-end)⁽³⁾	97	%	96	%
Weighted average lease term (“WALT”) (years)	6.6		6.9
Industrial WALT (years)	6.6		6.9
Estimated spread between industrial portfolio market and in-place rents	14.6	%	18.7	%

FINANCING AND CAPITAL INFORMATION
Financing
Net debt⁽¹⁾	1,302,771		1,307,119
Total Indebtedness Ratio⁽¹⁾	49.0	%	49.3	%
Net Debt to Adjusted EBITDA⁽¹⁾	10.5		10.9
Adjusted Net Debt to Adjusted EBITDA⁽¹⁾	10.1		10.5
Debt service coverage ratio (times)	1.76		1.70
Secured Indebtedness Ratio	19.2	%	22.4	%
Unencumbered investment properties as a percentage of investment properties	59.2	%	49.7	%
Total assets	2,660,118		2,650,360
Cash	22,466		6,111
Capital
Total equity (per consolidated financial statements)	1,119,693		1,083,289
Total equity (including Class B LP Units)	1,285,143		1,282,925
Total number of Units (in thousands)⁽⁴⁾	97,097		97,022
NAV per unit⁽¹⁾	13.24		13.22

⁽¹⁾	This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for details.
⁽²⁾	Includes three properties and one land parcel (four properties - December 31, 2025) classified as assets held for sale.
⁽³⁾	Includes committed new leases for future occupancy.
⁽⁴⁾	Includes Class B LP Units.

Net income

Net income for the three months ended September 30, 2026 was $31.9 million or $28.4 million higher as compared to the same period in 2025, primarily due to the increase in fair value adjustments on Class B LP units and derivative financial instruments of $23.4 million and $7.2 million, respectively, and a higher NOI of $2.5 million mainly due to higher Same Property NOI and NOI generated from recently completed acquisitions and developments, partially offset by a higher investment property fair value adjustment (loss) of $2.8 million, a higher loss from equity accounted investment of $1.3 million resulting from fair value adjustment (loss) recorded in the joint venture, and a higher finance expense of $0.6 million.

Net income for the nine months ended September 30, 2026 was $51.2 million or $22.3 million higher as compared to the same period in 2025, primarily due to the increase in fair value adjustments on Class B LP units and derivative financial instruments of $14.6 million and $13.0 million, respectively, and a higher NOI of $6.2 million mainly due to higher Same Property NOI and NOI generated from recently completed acquisitions and developments, partially offset by a higher investment property fair value adjustment (loss) of $6.0 million, a higher finance expense of $3.1 million, a higher loss from equity accounted investment of $1.4 million resulting from fair value adjustment (loss) recorded in the joint venture, and a lower foreign exchange loss of $0.8 million.

Net operating income

NOI for the three months ended September 30, 2026 was $34.7 million or $2.5 million higher as compared to the same period in 2025, which was primarily due to a $1.2 million increase in Same Property NOI, $1.0 million relating to completed developments and expansions, $0.7 million from acquisitions of industrial income producing properties closed subsequent to September 30, 2025, $0.3 million relating to amortization of tenant improvements and leasing costs that was ceased during the nine months ended September 30, 2026 as a result of change in application of accounting methodology, and $0.1 million higher termination fee income, partially offset by $0.6 million relating to straight-line rent adjustments and $0.2 million relating to dispositions completed since Q3 2025.

NOI for the nine months ended September 30, 2026 was $102.6 million or $6.2 million higher as compared to the same period in 2025, which was primarily due to $4.1 million relating to completed developments and expansions, $1.8 million from acquisitions of industrial income producing properties that closed subsequent to September 30, 2025, $1.8 million increase in Same Property NOI and $1.0 million relating to amortization of tenant improvements and leasing costs that was ceased during the nine months ended September 30, 2026 as a result of change in application of accounting methodology, partially offset by $1.0 million relating to dispositions completed since Q3 2025, $1.0 million relating to straight-line rent adjustments and $0.5 million lower termination fee income.

Fair value adjustment of investment properties

The fair value adjustment on investment properties for the three months ended September 30, 2026 was a loss of $7.1 million. The REIT engaged external appraisers to value properties totaling $133.3 million during the quarter. Overall, the fair value loss recorded for the REIT’s portfolio primarily consists of a $5.8 million fair value loss resulting from changes in stabilized NOI and a $1.3 million fair value loss due to adjustments to capitalization rates.

The fair value adjustment on investment properties for the nine months ended September 30, 2026 was a loss of $12.6 million. The REIT engaged external appraisers to value properties totaling $472.9 million during the nine months ended September 30, 2026. Overall, the fair value loss recorded for the REIT’s portfolio primarily consists of a $34.9 million fair value loss due to adjustments to capitalization rates, and a $14.0 million fair value loss relating to investment property sale price adjustments prior to disposition, partially offset by a $36.3 million fair value gain resulting from changes in stabilized NOI.

Development and Expansion

During the nine months ended September 30, 2026, the REIT incurred $23.0 million of costs relating to development projects (year ended December 31, 2025 - $23.3 million).

The following table provides development project details that are either currently underway or in the planning stage as at September 30, 2026.

(in millions of Canadian dollars)
Property location	Type of project	Additional GLA at the REIT's share (square feet)	Costs incurred to date		Total estimated costs

Underway
Savage Road, Richmond, BC⁽¹⁾	Intensification	80,000	$	13.9	$	60.3

Planning
Exeter Road, London, ON	Intensification	210,000	$	—
Adams Road, Kelowna, BC⁽²⁾	Intensification	179,000	$	11.9	$	47.3
Richard Ruston Drive, Windsor, ON	Intensification	60,000	$	—
Cuddy Blvd. London, ON	Intensification	40,000	$	0.1
Edgar Industrial Drive, Red Deer, AB	Intensification	60,000	$	—

Total planning		549,000	$	12.0	$	47.3

Total		629,000	$	25.9	$	107.6

(1)	Total estimated costs and costs incurred to date exclude the value of a land parcel transferred from income producing property for this development in the amount of $6.1 million. Total estimated costs are further described in the "Commitments and Contingent Obligations” section in the REIT's MD&A.
(2)	Total estimated costs and costs incurred to date exclude the value of a land parcel acquired in the amount of $18.8 million.

The following table provides development project details that were completed during the year ended December 31, 2025.

(in millions of Canadian dollars)
Property location	Type of project	Additional GLA at the REIT's share (square feet)	Total Costs		Estimated unlevered yield⁽¹⁾		Completion date

102 Ave, SE Calgary, AB	Intensification	115,000	$	14.8	11.0	%	August, 2025
Dennis Road, St. Thomas, ON	Hybrid	325,000	$	55.1	9.0	%	September, 2025
Total		440,000	$	69.9	9.4	%

(1) Represents the estimated return on cost calculated as the expected NOI divided by the total construction cost, excluding any debt used for development.

Strategic Review of Data Infrastructure Opportunities

The REIT is pursuing a sub strategy within its portfolio of investment properties to develop infrastructure based projects where such investments meet the REIT’s investment objectives and disciplined approach to capital allocation. Management has identified and believes that 1751 Savage Rd, Richmond and 555 Adams Rd, Kelowna, have the existing electrical infrastructure, available power capacity and strategic locations that may provide a competitive advantage in pursuing possible digital infrastructure opportunities.

The REIT has entered into a development and profit sharing agreement (the "Profit Sharing Agreement”) with Studio Events Ltd., a tenant, that enables the REIT to earn income from its tenant’s data operations. The Profit Sharing Agreement creates a conditional exclusive platform for Studio Events Ltd. and its affiliated companies, to construct and develop data infrastructure projects across all of the REIT’s investment property portfolio, at properties that are owned 100% by the REIT, whereby the REIT funds and owns the approved infrastructure. Data revenues are first used to fund operating costs, after which the REIT earns a prescribed return and rents, and then the residual net operating profits are split equally with Studio Events Ltd.

At 1751 Savage Road, the REIT is developing an additional tennis court and micro-industrial units that may be used individually or combined as data infrastructure, referred to as “vaults”. These vaults are designed to accommodate data operations, micro-industrial activities or storage. Vaults fitted for data operations are designed with dedicated power, backup power and cooling systems, providing customers with separately secured space for their equipment. Customers may occupy one or more vault.

The REIT anticipates development costs of $41.3 million and additional data infrastructure and fixturing costs of $19.0 million, for a combined investment of $60.3 million, at the 1751 Savage Road site. The planned data operations are for an aggregate gross electrical capacity of 9.9 MW across the site. The property currently has 2.1 MW of electrical capacity available for use, with conditional BC Hydro approval to increase capacity to 6.6.MW and then further to 9.9 MW. The REIT expects the project to generate attractive returns and meaningful value creation for unitholders.

If market conditions or other circumstances prevent continued operation of a data business at the property, the completed units will instead be used for micro-industrial or storage purposes, with an expected stabilized blended return comparable to the property’s current return. During the quarter, foundations were poured and framing was initiated. The REIT incurred development expenditures of $9.2 million during the quarter ended September 30, 2026 for this project.

At 555 Adams Road, the REIT is developing micro-industrial units which may also be used individually or combined as data infrastructure. The REIT anticipates no change in the total development costs of $47.3 million and to generate a minimum unlevered return on investment of 6.0%, with potential for higher returns and additional development costs if the units are used as data infrastructure. The planning phase has been completed and the construction permit application has been submitted for review. The REIT incurred development expenditures of $4.3 million during the quarter ended September 30, 2026 for this project.

The REIT's views and estimates regarding data infrastructure opportunities constitute forward looking information. Refer to Forward Looking Statements discussion of risks and uncertainties.

Outlook

The REIT is focused on delivering total unitholder return through profitable long-term growth, and by pursuing its strategy as a Canada-focused pure-play industrial REIT.

For 2026, the REIT now anticipates Same Property NOI⁽¹⁾ growth of between 3% to 4% in its industrial portfolio as compared to mid-single digit growth disclosed in the previous quarter. The decrease is principally due to a planned opportunistic sale of an investment property located in Calgary, AB, which was previously planned to be leased by Q3 2026, and changes in timing of leasing at two of the REIT's properties in London and Calgary. The expected Same Property NOI⁽¹⁾ growth in the industrial portfolio is primarily attributed to the lease-up of vacant space and releasing space at market rents that exceed expiring rents, thereby continuing to benefit from positive spreads between market rental rates and the REIT's in-place rental rates.

In 2026, the REIT expects to benefit from:

the 325,000 sq. ft. expansion project at St. Thomas, ON for an existing tenant that was completed in Q3 2025, which is contributing $4.9 million in annual stabilized NOI⁽¹⁾, representing a contractual going-in yield of 9.0% on total development costs of $55.1 million,
the 115,000 sq. ft. small-bay industrial building that was constructed in Q3 2025 adjacent to an existing building that the REIT owns in Calgary, AB, which, once stabilized, is expected to earn a yield of 11.0% on total development costs of $14.8 million, and
the acquisition of two industrial properties in Montreal and Longueuil, QC in November 2025 totalling 282,721 sq. ft., that are expected to contribute $2.6 million in annual stabilized NOI⁽¹⁾, representing a going-in yield of 6.6% on the purchase price of $40.1 million.

The normalized AFFO payout ratio⁽¹⁾ for the three and nine months ended September 30, 2026 was 95.6% and 98.0%, respectively. The REIT believes that the current distributions are sustainable, and anticipates the normalized AFFO payout ratio⁽¹⁾ to average below 100% for the full fiscal year in 2026.

(1) This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for details.

Earnings Call

Management of the REIT will host a conference call at 10:00 AM Eastern Standard Time on Friday, November 6, 2026, to review the financial results and operations.

To participate in the conference call, please dial 1-647-846-8414 or 1-833-752-3601 (toll free in Canada and the US) at least five minutes prior to the start time and ask to join the Nexus Industrial REIT conference call.

A recording of the conference call will be available until December 6, 2026. To access the recording, please dial 1-412-317-0088 or 1-855-669-9658 (toll free in Canada and the US) and enter access code 2977413.

November and December Distributions

The REIT will make a cash distribution in the amount of $0.05333 per unit, representing $0.64 per unit on an annualized basis, payable December 15, 2026, to unitholders of record as of November 30, 2026.

The REIT will also make a cash distribution in the amount of $0.05333 per unit, representing $0.64 per unit on an annualized basis, payable January 15, 2027, to unitholders of record as of December 31, 2026.

About Nexus Industrial REIT

Nexus is a growth-oriented real estate investment trust focused on increasing unitholder value through the acquisition of industrial properties located in primary and secondary markets in Canada, and the ownership and management of its portfolio of properties. The REIT currently owns a portfolio of 86 properties comprising approximately 12.1 million square feet of gross leasable area. The REIT has approximately 97,100,000 voting units issued and outstanding, including approximately 74,279,000 REIT Units and approximately 22,821,000 Class B LP Units of subsidiary limited partnerships of Nexus, which are convertible to REIT Units on a one-to-one basis.

Non-IFRS Measures

Information in this news release is a select summary of results. This news release should be read in conjunction with the REIT’s Management’s Discussion and Analysis for the three and nine months ended September 30, 2026 (“MD&A”) and the Trust's consolidated financial statements and the accompanying notes for the three and nine months ended September 30, 2026 (the “Financial Statements”). The Financial Statements are prepared in accordance with IFRS accounting standards as issued by the IASB, however, included in the tables above and elsewhere in this news release are non-IFRS financial measures or non-IFRS ratios which do not have a standardized meaning prescribed under generally accepted accounting principles (“GAAP”) in accordance with IFRS and that should not be construed as an alternative to net income / loss or other measures of financial performance calculated in accordance with IFRS and may not be comparable to similar measures as reported by other issuers. A definition of each non-IFRS financial measure or ratio used herein and an explanation of management's reasons as to why it believes the measure is useful to investors are incorporated by reference and can be found on page 1 in the REIT’s MD&A available on SEDAR+ at www.sedarplus.ca and on the REIT’s website under Investor Relations. See Appendix A of this earnings release for a reconciliation of the non-IFRS financial measures to the primary financial statement measures.

Forward Looking Statements

Certain statements contained in this news release constitute forward-looking statements which reflect the REIT’s current expectations and projections about future results. Often, but not always, forward-looking statements can be identified by the use of words such as “plans”, “expects” or “does not expect”, “is expected”, “estimates”, “intends”, “anticipates” or “does not anticipate”, or “believes”, or variations of such words and phrases or state that certain actions, events or results “may”, “could”, “would”, “might” or “will” be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the REIT to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to: real property ownership and tenant risk, government regulation and environmental matters, economic environment, inflation risk, competition risk, uninsured losses, fixed costs and increased expenses, development risks, including risks associated with data infrastructure opportunities, joint ventures/co-investment risks, access to capital and reliance on external sources of capital, derivatives risks, tax-related risks, financing risk, credit risk, liquidity risk, foreign exchange risk, and interest rate risk. These risks are more fully discussed under Financial Instruments, Risks and Uncertainties in the REIT's MD&A. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this news release. Such forward-looking statements are based on a number of assumptions that may prove to be incorrect.

While the REIT anticipates that subsequent events and developments may cause its views to change, the REIT specifically disclaims any obligation to update these forward-looking statements except as required by applicable law. These forward-looking statements should not be relied upon as representing the REIT’s views as of any date subsequent to the date of this news release. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect the REIT.

For further information please contact:

Kelly C. Hanczyk, CEO at (416) 906-2379 or
Mike Rawle, CFO at (647) 823-1381

APPENDIX A – NON-IFRS FINANCIAL MEASURES

(In thousands of Canadian dollars, except per unit amounts)	Three months ended September 30,						Nine months ended September 30,
	2026		2025		Change		2026		2025		Change
FFO⁽⁶⁾	$		$		$		$		$		$

Net income and comprehensive income	31,883		3,449		28,434		51,249		28,975		22,274
Adjustments:
Loss on disposal of investment properties	367		2		365		720		283		437
Fair value adjustments	(18,135	)	9,876		(28,011	)	(10,483	)	11,434		(21,917	)
Adjustments for equity accounted joint venture⁽¹⁾	1,229		(41	)	1,270		1,330		43		1,287
Distributions on Class B LP Units expensed	3,534		3,744		(210	)	10,786		11,154		(368	)
Amortization of tenant improvements and leasing costs	—		358		(358	)	—		1,001		(1,001	)
Lease principal payments	(27	)	(26	)	(1	)	(80	)	(76	)	(4	)
Amortization of right-of-use assets	30		30		—		91		90		1
Net effect of unrealized foreign exchange on USD debt and related hedges	(6	)	(83	)	77		(88	)	(395	)	307
Funds from operations (FFO)⁽⁶⁾	18,875		17,309		1,566		53,525		52,509		1,016
Weighted average units outstanding (000s) - basic⁽³⁾	97,100		96,928		172		97,085		95,132		1,953
FFO per unit – basic⁽⁶⁾	0.194		0.179		0.015		0.551		0.552		(0.001	)

FFO⁽⁶⁾	18,875		17,309		1,566		53,525		52,509		1,016
Add: Non-recurring personnel transition costs	—		—		—		220		107		113
Add: Non-recurring adjustments from asset dispositions⁽⁴⁾	—		51		(51	)	43		556		(513	)
Add: Other one-time adjustments⁽⁵⁾	(43	)	178		(221	)	618		(310	)	928
Normalized FFO⁽⁶⁾	18,832		17,538		1,294		54,406		52,862		1,544
Weighted average units outstanding (000s) - basic⁽³⁾	97,100		96,928		172		97,085		95,132		1,953
Normalized FFO per unit – basic⁽⁶⁾	0.194		0.181		0.013		0.560		0.556		0.004



(In thousands of Canadian dollars, except per unit amounts)	Three months ended September 30,						Nine months ended September 30,
	2026		2025		Change		2026		2025		Change
AFFO⁽⁶⁾	$		$		$		$		$		$

FFO⁽⁶⁾	18,875		17,309		1,566		53,525		52,509		1,016
Adjustments:
Straight-line adjustments, ground lease and rent	(1,150	)	(1,721	)	571		(2,910	)	(3,875	)	965
Capital reserve⁽²⁾	(1,600	)	(1,600	)	—		(4,800	)	(4,800	)	—
Adjusted funds from operations (AFFO)⁽⁶⁾	16,125		13,988		2,137		45,815		43,834		1,981
Weighted average units outstanding (000s) Basic⁽³⁾	97,100		96,928		172		97,085		95,132		1,953
AFFO per unit – basic⁽⁶⁾	0.166		0.144		0.022		0.472		0.461		0.011
Distributions declared	15,374		15,152		222		45,779		45,301		478
AFFO payout ratio - basic⁽⁶⁾	95.3	%	108.3	%	(13.0	)%	99.9	%	103.3	%	(3.4	)%


AFFO⁽⁶⁾	16,125		13,988		2,137		45,815		43,834		1,981
Add: Non-recurring personnel transition costs	—		—		—		220		107		113
Add: Non-recurring adjustments from asset dispositions⁽⁴⁾	—		14		(14	)	43		60		(17	)
Add: Other one-time adjustments⁽⁵⁾	(43	)	178		(221	)	618		(310	)	928
Normalized AFFO⁽⁶⁾	16,082		14,180		1,902		46,696		43,691		3,005
Weighted average units outstanding (000s) Basic⁽³⁾	97,100		96,928		172		97,085		95,132		1,953
Normalized AFFO per unit – basic⁽⁶⁾	0.166		0.146		0.020		0.481		0.459		0.022
Distributions declared	15,374		15,152		222		45,779		45,301		478
Normalized AFFO payout ratio - basic⁽⁶⁾	95.6	%	106.9	%	(11.3	)%	98.0	%	103.7	%	(5.7	)%

(1)	Adjustment for equity accounted joint venture relates to a fair value adjustment of swaps in place at the joint venture to swap floating rate bankers’ acceptance rates to a fixed rate and a fair value adjustment of the joint venture investment property.
(2)	Capital reserve includes maintenance capital expenditures, tenant improvements and leasing costs. Reserve amounts are established with reference to building condition reports, appraisals, and internal estimates of tenant renewal, tenant improvements and leasing costs. The REIT believes that a reserve is more appropriate given the fluctuating nature of capital expenditures.
(3)	Weighted average number of units includes the Class B LP Units.
(4)	These adjustments represent one-time balance sheet write-offs, early mortgage repayment charges, and other costs associated with the disposals made during the period.
(5)	The adjustments primarily relate to a one-time write-off of deferred financing costs associated with the repayment of credit facilities in April 2026, unrealized foreign exchange losses (gains) on transactions related to deferred purchase consideration, and other one-time adjustments.
(6)	This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for details.

SAME PROPERTY RESULTS

(In thousands of Canadian dollars)
	Three months ended September 30,						Nine months ended September 30,
	2026		2025		Change		2026		2025		Change
	$		$		$		$		$		$

Property revenues	45,744		43,295		2,449		138,383		130,071		8,312
Property expenses	(11,050	)	(11,098	)	48		(35,737	)	(33,634	)	(2,103	)
NOI⁽¹⁾	34,694		32,197		2,497		102,646		96,437		6,209
Add/(Deduct):
Amortization of tenant improvements and leasing costs	—		349		(349	)	—		976		(976	)
Straight-line adjustments of rent	(1,148	)	(1,720	)	572		(2,907	)	(3,872	)	965
Development and expansion	(990	)	—		(990	)	(4,173	)	(61	)	(4,112	)
Acquisitions	(666	)	—		(666	)	(1,837	)	—		(1,837	)
Disposals	15		(156	)	171		(59	)	(1,037	)	978
Lease termination fees and other non-recurring items	(81	)	—		(81	)	(1,750	)	(2,285	)	535
Same Property NOI⁽¹⁾	31,824		30,670		1,154		91,920		90,158		1,762

Industrial Same Property NOI⁽¹⁾	31,511		30,234		1,277		90,953		88,144		2,809

(1) This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for details.

ADJUSTED EBITDA

(In thousands of Canadian dollars)	Trailing twelve months ended September 30,
	2026		2025		Change
	$		$		$

Net income	81,822		78,652		3,170
Add (deduct):
Net interest expense	56,640		53,151		3,489
Distributions on Class B LP Units	14,482		14,900		(418	)
Fair value adjustments⁽¹⁾	(26,626	)	(27,049	)	423
Amortization expense⁽¹⁾⁽²⁾	(3,925	)	(3,738	)	(187	)
Loss on disposal of investment properties	1,134		1,205		(71	)
Unrealized foreign exchange (gain) loss	50		(13	)	63
Income from development property	—		3,097		(3,097	)
Non-recurring personnel transition costs	220		107		113
Non-recurring costs related to asset dispositions	43		208		(165	)
Adjusted EBITDA⁽³⁾	123,840		120,520		3,320

(1)	Includes equity accounted investments adjustments.
(2)	Includes amortization of straight line rent, tenant improvements, and leasing commissions.
(3)	This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for details.

NAV per unit

(In thousands of Canadian dollars, except per unit amounts)	September 30,		December 31,
	2026		2025
NAV per unit ⁽¹⁾	$		$

Total assets	2,660,118		2,650,360
Less: Total liabilities	(1,540,425	)	(1,567,071	)
Total unitholders equity	1,119,693		1,083,289
Add: Class B LP Units	165,450		199,636
NAV ⁽¹⁾	1,285,143		1,282,925

Units outstanding (000s) – basic:
REIT Units	74,277		71,752
Class B LP Units	22,820		25,270
	97,097		97,022
NAV per unit – basic ⁽¹⁾	13.24		13.22

(1) This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for details.

TOTAL INDEBTEDNESS RATIO

(In thousands of Canadian dollars)	September 30,		December 31,
	2026		2025
Total Indebtedness Ratio⁽¹⁾	$		$
Current and non-current:
Mortgages payable	480,794		563,231
Unsecured debentures	796,765		—
Credit facilities	16,963		731,019
Lease liabilities	10,533		10,613
Liabilities associated with assets held for sale	20,182		8,367
Total indebtedness⁽¹⁾	1,325,237		1,313,230
Less: unrestricted cash	(22,466	)	(6,111	)
Net debt	1,302,771		1,307,119
Total assets	2,660,118		2,650,360
Total Indebtedness Ratio⁽¹⁾	49.0	%	49.3	%

(1) This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for details.

ADJUSTED NET DEBT

(In thousands of Canadian dollars)	September 30,		December 31,
	2026		2025
	$		$
Current and non-current:
Mortgages payable	480,794		563,231
Unsecured debentures	796,765		—
Credit facilities	16,963		731,019
Lease liabilities	10,533		10,613
Liabilities associated with assets held for sale	20,182		8,367
Total indebtedness⁽¹⁾	1,325,237		1,313,230
Less: Unrestricted cash	(22,466	)	(6,111	)
Less: Additions to properties under development	(52,270	)	(44,943	)
Adjusted net debt⁽¹⁾	1,250,501		1,262,176

(1) This is a Non-IFRS Financial Measure. Refer to Non-IFRS Measures for details.

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