Earnings release
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1 Allied Properties Real Estate Investment Trust (“Allied”) (TSX: “AP.UN”) today announced results for the three months ended June 30, 2026. “Our second quarter results reflect steady execution and tangible progress against our three-year outlook, ” said Allied President and CEO Cecilia Williams. “We remain focused on executing our leasing strategy, progressing our disposition program and strengthening the balance sheet. ” Q2 2026 HIGHLIGHTS — Occupied and leased area of 84.4% and 86.7%, respectively, were higher than expected, reflecting earlier occupancy from lease-up. — Completed 522,029 square feet of total leasing, including 104,771 square feet of new leasing activity in the rental portfolio. — Completed $243 million of dispositions to date with an incremental $78 million firm, totaling approximately $321 million of gross proceeds secured year to date. — Net debt to EBITDA* improved to 12.0x from 12.3x in Q1. — Excluding a one-time $5.9 million contractual severance expense, FFO* per unit of $0.24 and AFFO* per unit of $0.17 reflect lower interest income and a $1.5 million or $0.01 per unit non-recurring retroactive property tax assessment. — Same Asset NOI* in the rental portfolio of (12.6)% was lower than expected due to a 190 basis points impact from a non-recurring retroactive property tax assessment. TORONTO, JULY 28, 2026 Allied Announces Second-Quarter Results • Leasing and occupancy ahead of expectations • Disposition program is on track • Net debt to EBITDA continues to improve * This is a non-GAAP measure. FFO per unit and AFFO per unit exclude condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation. Refer to the Non-GAAP Measures section below.
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2 OUTLOOK Execution in the first half of 2026 reinforces management’s confidence in its three-year outlook. Allied reallocated capital to advance development completion and support near-term leasing. This will reduce capitalized expenses, which impacts the 2026 Same Asset NOI forecast. As a result, the outlook for Same Asset NOI is revised to (8.0)% to (9.0)%. The table below details management’s outlook for year-end 2026: ACTUALS Q1 REVISED CURRENT Q2 REVISED METRIC SIX MONTHS ENDED JUNE 30, 2026 2026 OUTLOOK 2026 OUTLOOK Occupied area by year-end 84.4% 84% to 86% On track - no change NOI* $153.1 million $310 million to $320 million On track - no change Growth/(decline) in Same Asset NOI* (rental portfolio) (11.5)% (5.5)% to (6.5)% (8.0)% to (9.0)% FFO* (1)(2) $95.0 million $185 million to $200 million (3) On track - no change Interest expense (4) $79.3 million $145 million to $155 million On track - no change Capital expenditures $124.3 million $220 million to $240 million (development, residential inventory, recurring rental portfolio) On track - no change Non-core, low-yielding property dispositions $243 million ~ $500 million aggregate gross proceeds On track - no change Net debt to EBITDA (2)(5) 12.0x Mid-11x range On track - no change (1) Excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation. (2) The composition of this non-GAAP measure changed from prior period to adjust for severance expense as it is non-recurring. (3) This includes $20 million of interest income from loans receivable on KING Toronto and 150 West Georgia. (4) Interest expense before capitalized interest and excluding distributions on Exchangeable LP Units is expected to be $175 million to $185 million. (5) Net debt as a multiple of Annualized Adjusted EBITDA * by year-end. * This is a non-GAAP measure. Refer to the Non-GAAP Measures section below. Q2 2026 RESULTS OPERATIONS At the end of Q2 2026, Allied’s occupied and leased area were higher than expected at 84.4% and 86.7%, respectively, reflecting earlier occupancy from lease-up. Allied leased a total of 522,029 square feet of GLA in Q2 2026, 462,739 square feet in its rental portfolio and 59,290 square feet in its development portfolio. Of the 462,739 square feet Allied leased in its rental portfolio, 64,196 square feet were vacant at the beginning of the quarter, 92,811 square feet matured in the quarter and 305,732 square feet represent future maturities. Including relocations and early renewals related to maturities in Q2 2026, Allied leased 77.0% of the expiring GLA, modestly better than expected. Rental rates on renewals increased by 1.3% ending-to-starting base rent and 7.8% average-to-average base rent, in line with expectations. 37,574 square feet of space leased in Q2 2026 involved expansion by existing users. 67,197 square feet of space leased in Q2 2026 involved new users to the portfolio. Allied continues to see strong demand from existing users for expansion space. Allied’s total leasing pipeline including leasing and renewals increased 11% in Q2 2026 and is up 33% since the beginning of the year. This increased activity is an encouraging indication for future occupancy and earnings growth.
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3 PROPERTY DISPOSITIONS Allied’s disposition program remains a key strategic priority and will continue to support deleveraging objectives. For 2026, Allied set a disposition target of approximately $500 million and is currently on track to meet that target. In Q2 2026, Allied completed the sale of nine properties, generating total gross proceeds of $197 million, bringing dispositions closed to date to $243 million. In addition, one property is firm for total expected proceeds of approximately $78 million and is expected to close in Q3 2026. The remaining pipeline is at various stages of marketing and includes two rental-residential assets, with dispositions targeted to close by year-end 2026. All proceeds from disposition will be allocated to repaying debt. COMPLETION OF DEVELOPMENT PIPELINE The sole remaining committed development, KING Toronto at 489-539 King Street West, will comprise 440 condominium units of which 92% are pre-sold, 46,000 square feet of office space, and 122,000 square feet of retail space. Completion of the commercial and residential components is expected in the second half of 2027. Whole Foods Market is the anchor tenant for the retail portion and is committed to occupying 32,878 square feet. To manage costs and support timely completion, Allied continues to oversee onsite construction management. Management remains focused on completing this development project and does not expect to initiate new development projects in the foreseeable future. FINANCIAL MEASURES The following tables summarize GAAP financial measures for the three and six months ended June 30, 2026, and 2025: FOR THE THREE MONTHS ENDED JUNE 30 (in thousands except for % amounts) 2026 2025 CHANGE % CHANGE Rental revenue $140,510 $145,045 $(4,535) (3.1)% Property operating costs $(70,720) $(65,095) $(5,625) (8.6)% Operating income $69,790 $79,950 $(10,160) (12.7)% Interest income $7,7 8 2 $10,699 $(2,917) (27 .3)% Interest expense $(39,842) $(32,817) $(7 ,025) (21.4)% General and administrative expenses $(11,095) $(5,947) $(5,148) (86.6)% Condominium marketing expenses $(59) $(5) $(54) (1,080.0)% Amortization of other assets $(458) $(360) $(98) (27 .2)% T ransaction costs $(2,960) $(660) $(2,300) (348.5)% Mark-to-market recovery (expense) on unit-based compensation $440 $(28) $468 1,671.4% Fair value loss on investment properties and investment properties held for sale $(758,998) $(129,734) $(629,264) (485.0)% Fair value loss on Exchangeable LP Units $(7 ,912) $(9,093) $1,181 13.0% Fair value (loss) gain on derivative instruments $(1,390) $2,782 $(4,172) (150.0)% Expected credit loss on loans and notes receivable $— $— $— —% Impairment of residential inventory $— $(9,527) $9,527 100.0% Net loss and comprehensive loss (1) $(744,702) $(94,740) $(649,962) (686.0)% (1) For the three months ended June 30, 2026, includes interest income on loans receivable on KING Toronto and 150 West Georgia of $7,390 (June 30, 2025 - $8,982). An expected credit loss on loans receivable of $nil (June 30, 2025 - $nil) was recognized for the three months ended June 30, 2026. Operating income is affected by non-renewals, decapitalization of operating costs as space became ready for its intended use, dispositions, lower development fee income, and a retroactive multi-year property tax assessment.
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4 Interest expense reflects lower capitalized interest due to the completion of development and upgrade projects, and the disposition of properties under development. Before accounting for capitalized interest expense, interest expense decreased by $3 million, or 6.4%. Refer to the MD&A and Note 10 in the financial statements for more detailed information. General and administrative expenses include $5.9 million of one-time contractual severance cost. Fair value loss on investment properties and investment properties held for sale reflect higher market discount rates and terminal capitalization rates based on transactions in the quarter primarily in Toronto and Montréal as well as changes to cash flow assumptions. Across the portfolio, overall capitalization rates, discount rates, and terminal capitalization rates increased between 30-42 bps. FOR THE SIX MONTHS ENDED JUNE 30 (in thousands except for % amounts) 2026 2025 CHANGE % CHANGE Rental revenue $284,441 $295,681 $(11,240) (3.8)% Property operating costs $(145,042) $(134,496) $(10,546) (7 .8)% Operating income $139,399 $161,185 $(21,786) (13.5)% Interest income $18,029 $20,794 $(2,765) (13.3)% Interest expense $(79,279) $(63,501) $(15,778) (24.8)% General and administrative expenses $(17 ,403) $(12,230) $(5,173) (42.3)% Condominium marketing expenses $(93) $(13) $(80) (615.4)% Amortization of other assets $(922) $(733) $(189) (25.8)% T ransaction costs $(4,839) $(660) $(4,179) (633.2)% Mark-to-market expense on unit-based compensation $(1,957) $(451) $(1,506) (333.9)% Fair value loss on investment properties and investment properties held for sale $(893,355) $(293,833) $(599,522) (204.0)% Fair value gain (loss) on Exchangeable LP Units $41,568 $(118) $41,686 35,327 .1% Fair value loss on derivative instruments $(479) $(3,313) $2,834 85.5% Expected credit loss on loans and notes receivable $(44,000) $— $(44,000) (100.0)% Impairment of residential inventory $(48,065) $(9,527) $(38,538) (404.5)% Net loss and comprehensive loss (1) $(891,396) $(202,400) $(688,996) (340.4)% (1) For the six months ended June 30, 2026, includes interest income on loans receivable on KING Toronto and 150 West Georgia of $16,973 (June 30, 2025 - $17,509). An expected credit loss on loans receivable of $44,000 (June 30, 2025 - $nil) was recognized for the six months ended June 30, 2026. Operating income is affected by non-renewals, decapitalization of operating costs as space became ready for its intended use, dispositions, lower development fee income and a retroactive multi-year property tax assessment. Interest expense reflects lower capitalized interest due to the completion of development and upgrade projects, and the disposition of properties under development. Before accounting for capitalized interest expense, interest expense decreased by $4 million, or 4.2%. Refer to the MD&A and Note 10 in the financial statements for more detailed information. General and administrative expenses include $5.9 million of one-time contractual severance cost. Fair value loss on investment properties and investment properties held for sale reflect higher market discount rates and terminal capitalization rates based on transactions in the quarter primarily in Toronto and Montréal, changes to cash flow assumptions, adjustments to land values in Toronto, and cost increases in the development portfolio. Across the portfolio, overall capitalization rates, discount rates and terminal capitalization rates increased on average between 30-42 bps.
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5 The following table summarizes other financial measures as at June 30, 2026, and 2025: AS AT JUNE 30 (in thousands except for per unit and % amounts) 2026 2025 CHANGE % CHANGE Investment properties (1) $7 ,065,795 $9,297 ,966 $(2,232,171) (24.0)% Unencumbered investment properties (2) $6,300,785 $8,168,766 $(1,867 ,981) (22.9)% T otal Assets(1) $8,223,158 $10,415,874 $(2,192,716) (21.1)% Cost of PUD as a % of GBV (2) 5.7% 6.8% — (1.1)% NAV per unit (3) $18.97 $38.97 $(20.00) (51.3)% Debt (1) $4,080,734 $4,565,645 $(484,911) (10.6)% T otal indebtedness ratio (2) 49.8% 44.0% — 5.8% Annualized Adjusted EBITDA (2)(4) $332,360 $377 ,328 $(44,968) (11.9)% Net debt as a multiple of Annualized Adjusted EBITDA (2)(4) 12.0x 11.9x 0.1x — Interest coverage ratio including interest capitalized and excluding financing prepayment costs - three months trailing (2)(4) 1.9x 2.2x (0.3x) — Interest coverage ratio including interest capitalized and excluding financing prepayment costs - twelve months trailing (2) 2.0x 2.2x (0.2x) — (1) This measure is presented on a GAAP basis. (2) This is a non-GAAP measure. Refer to the Non-GAAP Measures section below. (3) Net asset value per unit ("NAV per unit") is calculated as total equity plus the value of the class B limited partnership units of Allied Properties Exchangeable Limited Partnership ("Exchangeable LP Units") as at the corresponding period ended, divided by the actual number of Units and Exchangeable LP Units. The rationale for including the value of Exchangeable LP Units is because they are economically equivalent to Units, receive distributions equal to the distributions paid on the Units and are exchangeable, at the holder’s option, for Units. (4) For the three months ended June 30, 2026, includes interest income on loans receivable on KING Toronto and 150 West Georgia of $7,390 (June 30, 2025 - $8,982). An expected credit loss on loans receivable of $nil (June 30, 2025 - $nil) was recognized for the three months ended June 30, 2026. NON-GAAP MEASURES Management uses financial measures based on IFRS® Accounting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards" or "GAAP") and non-GAAP measures to assess Allied's performance. Non-GAAP measures do not have any standardized meaning prescribed under IFRS Accounting Standards, and therefore, should not be construed as alternatives to net income or cash flow from operating activities calculated in accordance with IFRS Accounting Standards. Refer to the Non-GAAP Measures section on page 13 of the MD&A as at June 30, 2026, available on www.sedarplus.ca, for an explanation of the composition of the non-GAAP measures used in this press release and their usefulness for readers in assessing Allied's performance. Such explanation is incorporated by reference herein.
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6 The following tables summarizes non-GAAP financial measures for the three and six months ended June 30, 2026, and 2025: FOR THE THREE MONTHS ENDED JUNE 30 (in thousands except for per unit and % amounts) 2026 2025 CHANGE % CHANGE Adjusted EBITDA $83,090 $94,332 $(11,242) (11.9)% Same Asset NOI - rental portfolio $69,415 $79,408 $(9,993) (12.6)% Same Asset NOI - total portfolio $73,407 $84,033 $(10,626) (12.6)% FFO $47 ,520 $68,999 $(21,479) (31.1)% FFO per unit (diluted) $0.243 $0.494 $(0.251) (50.8)% FFO payout ratio 74.1% 91.2% — (17 .1)% AFFO $33,721 $63,477 $(29,756) (46.9)% AFFO per unit (diluted) $0.172 $0.454 $(0.282) (62.1)% AFFO payout ratio 104.5% 99.1% — 5.4% All amounts below are excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation: FFO $47 ,139 $69,198 $(22,059) (31.9)% FFO per unit (diluted) $0.241 $0.495 $(0.254) (51.3)% FFO payout ratio 74.7% 90.9% — (16.2)% AFFO $33,340 $63,676 $(30,336) (47.6)% AFFO per unit (diluted) $0.170 $0.456 $(0.286) (62.7)% AFFO payout ratio 105.7% 98.8% — 6.9% FOR THE SIX MONTHS ENDED JUNE 30 (in thousands except for per unit and % amounts) 2026 2025 CHANGE % CHANGE Adjusted EBITDA $166,429 $188,881 $(22,452) (11.9)% Same Asset NOI - rental portfolio $139,394 $157 ,547 $(18,153) (11.5)% Same Asset NOI - total portfolio $146,571 $167 ,191 $(20,620) (12.3)% FFO $92,977 $140,083 $(47 ,106) (33.6)% FFO per unit (diluted) $0.514 $1.002 $(0.488) (48.7)% FFO payout ratio 72.2% 89.8% — (17 .6)% AFFO $67 ,375 $128,302 $(60,927) (47 .5)% AFFO per unit (diluted) $0.372 $0.918 $(0.546) (59.5)% AFFO payout ratio 99.6% 98.0% — 1.6% All amounts below are excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation: FFO $95,027 $140,713 $(45,686) (32.5)% FFO per unit (diluted) $0.525 $1.007 $(0.482) (47 .9)% FFO payout ratio 70.6% 89.4% — (18.8)% AFFO $69,425 $128,932 $(59,507) (46.2)% AFFO per unit (diluted) $0.384 $0.922 $(0.538) (58.4)% AFFO payout ratio 96.7% 97.6 % — (0.9)%
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7 Allied reviews the level and sustainability of its distributions quarterly. In the near term, the current excess of distributions over cash available to Allied is expected to continue, but to improve as proceeds from dispositions support deleveraging and lease-up activity contributes to the economic productivity of the portfolio. Allied’s current distribution plan is to maintain monthly distributions of $0.72 per unit on an annualized basis. The following tables reconcile the non-GAAP measures to the most comparable GAAP measures for the three and six months ended June 30, 2026, and 2025. These terms do not have any standardized meaning prescribed under IFRS Accounting Standards and may not be comparable to similarly titled measures presented by other publicly traded entities. The following table reconciles Allied's net loss and comprehensive loss to Adjusted EBITDA, a non-GAAP measure, for the three and six months ended June 30, 2026, and 2025. THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, 2026 JUNE 30, 2025 JUNE 30, 2026 JUNE 30, 2025 Net loss and comprehensive loss for the period (1) $(744,702) $(94,740) $(891,396) $(202,400) Interest expense 39,842 32,817 79,279 63,501 Amortization of other assets 458 360 922 733 Amortization of improvement allowances 10,802 9,635 20,627 19,145 Severance expense 5,870 — 5,870 — Expected credit loss on loans and notes receivable — — 44,000 — Impairment of residential inventory — 9,527 48,065 9,527 T ransaction costs 2,960 660 4,839 660 Fair value loss on investment properties and investment properties held for sale 758,998 129,734 893,355 293,833 Fair value loss (gain) on Exchangeable LP Units 7 ,912 9,093 (41,568) 118 Fair value loss (gain) on derivative instruments 1,390 (2,782) 479 3,313 Mark-to-market (recovery) expense on unit-based compensation (440) 28 1,957 451 Adjusted EBITDA $83,090 $94,332 $166,429 $188,881 (1) Includes interest income on loans receivable on KING Toronto and 150 West Georgia of $7,390 and $16,973 (June 30, 2025 - $8,982 and $17,509) for the three and six months ended June 30, 2026, respectively. The following table reconciles operating income to net operating income, a non-GAAP measure, for the three and six months ended June 30, 2026, and 2025. THREE MONTHS ENDED SIX MONTHS ENDED JUNE 30, 2026 JUNE 30, 2025 JUNE 30, 2026 JUNE 30, 2025 Operating income, GAAP basis $69,790 $79,950 $139,399 $161,185 Amortization of improvement allowances 10,802 9,635 20,627 19,145 Amortization of straight-line rent (3,972) (240) (6,891) (1,227) Total NOI $76,620 $89,345 $153,135 $179,103
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8 Same Asset NOI, a non-GAAP measure, is measured as the net operating income for the properties that Allied owned and operated for the entire duration of both the current and comparative period. THREE MONTHS ENDED CHANGE JUNE 30, 2026 JUNE 30, 2025 $ % Rental Portfolio - Same Asset NOI $69,415 $79,408 $(9,993) (12.6)% Assets Held for Sale - Same Asset NOI 2,812 2,655 157 5.9 Rental Portfolio and Assets Held for Sale - Same Asset NOI $72,227 $82,063 $(9,836) (12.0)% Development Portfolio - Same Asset NOI (1) 1,180 1,970 (790) (40.1) Total Portfolio - Same Asset NOI $73,407 $84,033 $(10,626) (12.6)% Acquisitions 245 — 245 Dispositions 1,066 3,764 (2,698) Lease terminations 1,159 3 1,156 Development fees and corporate items 743 1,545 (802) Total NOI $76,620 $89,345 $(12,725) (14.2)% (1) Includes properties held for future development. SIX MONTHS ENDED CHANGE JUNE 30, 2026 JUNE 30, 2025 $ % Rental Portfolio - Same Asset NOI $139,394 $157 ,547 $(18,153) (11.5)% Assets Held for Sale - Same Asset NOI 4,910 5,394 (484) (9.0) Rental Portfolio and Assets Held for Sale - Same Asset NOI $144,304 $162,941 $(18,637) (11.4)% Development Portfolio - Same Asset NOI (1) 2,267 4,250 (1,983) (46.7) Total Portfolio - Same Asset NOI $146,571 $167 ,191 $(20,620) (12.3)% Acquisitions 329 — 329 Dispositions 2,995 8,571 (5,576) Lease terminations 1,691 75 1,616 Development fees and corporate items 1,549 3,266 (1,717) Total NOI $153,135 $179,103 $(25,968) (14.5)% (1) Includes properties held for future development.
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9 The following tables reconcile Allied's net loss and comprehensive loss to FFO, FFO excluding condominium- related items, financing prepayment costs, transaction costs and the mark-to-market adjustment on unit-based compensation, AFFO, and AFFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation, which are non-GAAP measures, for the three and six months ended June 30, 2026, and 2025. THREE MONTHS ENDED JUNE 30, 2026 JUNE 30, 2025 CHANGE Net loss and comprehensive loss (1) $(744,702) $(94,740) $(649,962) Adjustment to fair value of investment properties and investment properties held for sale 758,998 129,734 629,264 Adjustment to fair value of Exchangeable LP Units 7 ,912 9,093 (1,181) Adjustment to fair value of derivative instruments 1,390 (2,782) 4,172 Severance expense 5,870 — 5,870 Expected credit loss on loans and notes receivable — — — Impairment of residential inventory — 9,527 (9,527) T ransaction costs 2,960 660 2,300 Incremental leasing costs 2,059 2,459 (400) Amortization of improvement allowances 10,802 9,635 1,167 Amortization of property, plant and equipment (2) 106 99 7 Distributions on Exchangeable LP Units 2,125 5,314 (3,189) FFO $47 ,520 $68,999 $(21,479) Condominium marketing costs 59 5 54 Financing prepayment costs — 166 (166) Mark-to-market adjustment on unit-based compensation (440) 28 (468) FFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation $47 ,139 $69,198 $(22,059) FFO $47 ,520 $68,999 $(21,479) Amortization of straight-line rent (3,972) (240) (3,732) Regular leasing expenditures (7 ,510) (3,046) (4,464) Regular and recoverable maintenance capital expenditures (676) (515) (161) Incremental leasing costs (related to regular leasing expenditures) (1,641) (1,721) 80 AFFO $33,721 $63,477 $(29,756) Condominium marketing costs 59 5 54 Financing prepayment costs — 166 (166) Mark-to-market adjustment on unit-based compensation (440) 28 (468) AFFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation $33,340 $63,676 $(30,336) Weighted average number of units (3) Basic and diluted 195,765,128 139,765,128 56,000,000 Per unit - basic and diluted (1) FFO $0.243 $0.494 $(0.251) FFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation $0.241 $0.495 $(0.254) AFFO $0.172 $0.454 $(0.282) AFFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation $0.170 $0.456 $(0.286)
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10 THREE MONTHS ENDED JUNE 30, 2026 JUNE 30, 2025 CHANGE Payout Ratio FFO 74.1% 91.2% (17 .1)% FFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation 74.7% 90.9% (16.2)% AFFO 104.5% 99.1% 5.4% AFFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation 105.7% 98.8% 6.9% (1) For the three months ended June 30, 2026, includes interest income and interest income per unit on loans receivable on KING Toronto and 150 West Georgia of $7,390 and $0.038 (June 30, 2025 - $8,982 and $0.064), respectively. An expected credit loss on loans receivable of $nil (June 30, 2025 - $nil) was recognized for the three months ended June 30, 2026. (2) Property, plant and equipment relates to owner-occupied property. (3) The weighted average number of units includes Units and Exchangeable LP Units. SIX MONTHS ENDED JUNE 30, 2026 JUNE 30, 2025 CHANGE Net loss and comprehensive loss (1) $(891,396) $(202,400) $(688,996) Adjustment to fair value of investment properties and investment properties held for sale 893,355 293,833 599,522 Adjustment to fair value of Exchangeable LP Units (41,568) 118 (41,686) Adjustment to fair value of derivative instruments 479 3,313 (2,834) Severance expense 5,870 — 5,870 Expected credit loss on loans and notes receivable 44,000 — 44,000 Impairment of residential inventory 48,065 9,527 38,538 T ransaction costs 4,839 660 4,179 Incremental leasing costs 4,245 5,060 (815) Amortization of improvement allowances 20,627 19,145 1,482 Amortization of property, plant and equipment (2) 210 199 11 Distributions on Exchangeable LP Units 4,251 10,628 (6,377) FFO $92,977 $140,083 $(47 ,106) Condominium marketing costs 93 13 80 Financing prepayment costs — 166 (166) Mark-to-market adjustment on unit-based compensation 1,957 451 1,506 FFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation $95,027 $140,713 $(45,686) FFO $92,977 $140,083 $(47 ,106) Amortization of straight-line rent (6,891) (1,227) (5,664) Regular leasing expenditures (14,144) (5,499) (8,645) Regular and recoverable maintenance capital expenditures (1,212) (1,513) 301 Incremental leasing costs (related to regular leasing expenditures) (3,355) (3,542) 187 AFFO $67,375 $128,302 $(60,927) Condominium marketing costs 93 13 80 Financing prepayment costs — 166 (166) Mark-to-market adjustment on unit-based compensation 1,957 451 1,506 AFFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation $69,425 $128,932 $(59,507)
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11 SIX MONTHS ENDED JUNE 30, 2026 JUNE 30, 2025 CHANGE Weighted average number of units (3) Basic and diluted 180,914,299 139,765,128 41,149,171 Per unit - basic and diluted (1) FFO $0.514 $1.002 $(0.488) FFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation $0.525 $1.007 $(0.482) AFFO $0.372 $0.918 $(0.546) AFFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation $0.384 $0.922 $(0.538) Pay-out Ratio FFO 72.2% 89.8% (17 .6%) FFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation 70.6% 89.4% (18.8%) AFFO 99.6% 98.0% 1.6% AFFO excluding condominium-related items, financing prepayment costs, and the mark-to-market adjustment on unit-based compensation 96.7% 97.6 % (0.9%) (1) For the six months ended June 30, 2026, includes interest income and interest income per unit on loans receivable on KING Toronto and 150 West Georgia, of $16,973 and $0.094 (June 30, 2025 - $17,509 and $0.125), respectively. An expected credit loss on loans receivable of $44,000 (June 30, 2025 - $nil) was recognized for the six months ended June 30, 2026. (2) Property, plant and equipment relates to owner-occupied property. (3) The weighted average number of units includes Units and Exchangeable LP Units. CONFERENCE CALL The Company will hold a conference call and live audio webcast at 10:00 a.m. (ET) on Wednesday, July 29, 2026, to discuss financial results for the quarter ended June 30, 2026. The conference call can be accessed by dialing 365-657-4084 or 1-833-461-5787, conference ID #638628508. A replay of the call will be available here or at www.alliedreit.com and will be archived for 90 days.
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12 CAUTIONARY STATEMENTS This press release may contain forward-looking statements (which includes the outlook) with respect to Allied, including with respect to its operations, strategy, financial performance and condition, market demand and supply for Allied’s properties and market trends, occupancy rates, cash flow growth, the timing and results of the non-core low-yielding property dispositions, the outlook, the timing and completion of the KING Toronto development, no new development projects in the foreseeable future for Allied, the anticipated use of proceeds from property dispositions and the assumptions underlying any of the foregoing. These statements generally can be identified by the use of forward-looking words such as “forecast”, “goals”, “outlook”, “may”, “will”, “expect”, “estimate”, “anticipate”, “intends”, “believe”, “assume”, “plans” or “continue” or the negative thereof or similar variations. The forward-looking statements in this press release and the outlook are not guarantees of future results, operations or performance and are based on estimates and assumptions that are subject to risks and uncertainties, including those described under “Risks and Uncertainties” in Allied’s Annual MD&A, as updated by quarterly reports, which are available at www.sedarplus.ca. Actual results may differ materially from the outlook. Those risks and uncertainties include risks associated with availability of cash flow and distributions, timing of property sales and the proceeds therefrom, financing and interest rates, satisfying financial and non- financial covenants, access to capital, general economic conditions, joint arrangements and partnerships, debtor credit risk, credit rating risk, unit-based compensation liabilities, dilution of Unitholders, financial leverage, non-systemic risk associated with the ownership of real estate, competitiveness of the real estate market, the current stage of the cycle for residential condominiums and rental-residential units, reliance on key personnel, unexpected costs or liabilities related to acquisitions, the accuracy and reliability of forward looking financial information, guidance and the outlook, the correctness of the assumptions used in the outlook are incorrect, lease roll-over risk, user termination and financial stability, development and construction risk, access to capital, valuation risk, general global market, economic and political conditions, cybersecurity, data and privacy risks, taxation risk and changes in legislation, environmental and climate change risk, public health crises, litigation and uninsurable losses. Allied’s actual results and performance for future periods, including the timing, extent and success of the Action Plan could differ materially from what is discussed herein. These cautionary statements qualify all forward-looking statements (including the outlook) attributable to Allied and persons acting on its behalf. All forward-looking statements speak only as of the date of this press release and, except as required by applicable law, Allied has no obligation to update such statements. ABOUT ALLIED Allied is a leading owner-operator of distinctive urban workspace in Canada’s major cities. Allied’s mission is to provide knowledge-based organizations with workspace that is sustainable and conducive to human wellness, creativity, connectivity and diversity. Allied’s vision is to make a continuous contribution to cities and culture that elevates and inspires the humanity in all people. FOR FURTHER INFORMATION, PLEASE CONTACT: INVESTOR RELATIONS ir@alliedreit.com