Earnings release
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CT REIT CT REIT Reports Second Quarter 2026 Results Toronto , August 10 , 2026 - CT Real Estate Investment Trust ( " CT REIT " or the " REIT " ) ( TSX : CRT.UN ) today reported its consolidated financial results for the second quarter ending June 30 , 2026 . " CT REIT delivered a solid second quarter , supported by a resilient portfolio and our disciplined approach to operating and growing the business , ” said Kevin Salsberg , President and Chief Executive Officer of CT REIT . " During the quarter , we made several strategic investments and renewed key leases , while also strengthening our financial position through the successful completion of our latest unsecured debenture offering . These activities highlight the consistency of our model and our continued focus on delivering dependable long - term value to Unitholders . " New Investment Activity During the second quarter , CT REIT completed a $ 13 million vend - in of a Canadian Tire store and Canadian Tire Gas + gas bar in St. Catharines , ON from Canadian Tire Corporation , Limited . The investment is expected to earn a going - in yield of 6.90 % and represents approximately 52,400 square feet of incremental gross leasable area ( " GLA " ) . Property St. Catharines Туре Vend - in GLA ( sf . ) 52,400 Timing Q2 2026 Activity Vend - in of a Canadian Tire store and Canadian Tire Gas + gas bar Update on Previously Announced Investments CT REIT invested $ 76 million in previously disclosed projects that were completed in the second quarter of 2026 , adding 232,300 square feet of incremental GLA to the portfolio as detailed in the table below . Property Centre Edmonton , AB Туре 50 , Third GLA ( sf . ) Party 75,800 Timing Q2 2026 Activity Acquisition Third party acquisition Canadian Tire anchored multi- tenant property of a Oliver , BC Third Party Acquisition Q2 2026 Third party acquisition of land adjacent to an existing CT REIT owned multi - tenant property
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Marché Rosemère, Rosemère, QC Third Party Acquisition 54,000 Q2 2026 Third party acquisition of a retail property adjacent to an existing CT REIT owned Canadian Tire store Penticton, BC Intensification 51,700 Q2 2026 Expansion of an existing Canadian Tire store Burlington, ON Intensification 28,300 Q2 2026 Expansion of an existing Canadian Tire store Valleyfield, QC Intensification 22,500 Q2 2026 Expansion of an existing Canadian Tire store
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Financial and Operational Summary Summary of Selected Information (in thousands of Canadian dollars, except unit, per unit and square footage amounts) Three Months Ended June 30, Six Months Ended June 30, 2026 2025 Change 2026 2025 Change Property revenue $ 156,706 $ 149,782 4.6 % $ 314,264 $ 300,178 4.7 % Net operating income 1 $ 124,660 $ 118,909 4.8 % $ 248,925 $ 237,612 4.8 % Net income $ 126,233 $ 103,003 22.6 % $ 241,971 $ 208,657 16.0 % Net income per unit - basic 2 $ 0.529 $ 0.434 21.9 % $ 1.015 $ 0.880 15.3 % Net income per unit - diluted 2,3 $ 0.451 $ 0.365 23.6 % $ 0.869 $ 0.737 17.9 % Funds from operations 1 $ 84,298 $ 81,245 3.8 % $ 168,762 $ 162,342 4.0 % Funds from operations per unit - diluted 2,4,5 $ 0.353 $ 0.342 3.2 % $ 0.707 $ 0.683 3.5 % Adjusted funds from operations 1,6 $ 77,956 $ 75,490 3.3 % $ 156,091 $ 150,952 3.4 % Adjusted funds from operations per unit - diluted 2,4,5,6 $ 0.326 $ 0.318 2.5 % $ 0.654 $ 0.635 3.0 % Distributions per unit - paid 2 $ 0.237 $ 0.231 2.5 % $ 0.474 $ 0.463 2.5 % AFFO payout ratio 4,6 72.7 % 72.6 % 0.1 % 72.5 % 72.9 % (0.4) % Cash generated from operating activities $ 103,734 $ 100,181 3.5 % $ 229,397 $ 214,184 7.1 % Weighted average number of units outstanding 2 Basic 238,506,757 237,370,297 0.5 % 238,378,747 237,182,294 0.5 % Diluted 3 319,405,592 328,334,913 (2.7) % 319,258,527 328,183,384 (2.7) % Diluted (non-GAAP) 5 238,957,926 237,740,125 0.5 % 238,810,861 237,588,596 0.5 % Indebtedness ratio 38.9 % 39.8 % (0.9) % Gross leasable area (square feet) 7 32,000,788 31,169,260 2.7 % Occupancy rate 7,8 99.5 % 99.5 % — % 1 Non-GAAP financial measure. See “Specified Financial Measures” below for more information. 2 Total units means Units and Class B LP Units outstanding. 3 Diluted units determined in accordance with IFRS Accounting Standards include restricted and deferred units issued under various plans and the effect of assuming that all of the Class C LP Units will be settled with Class B LP Units. Refer to section 7.0 of CT REIT’s Management's Discussion and Analysis for the period ending June 30, 2026 (“MD&A”). 4 Non-GAAP ratio. See “Specified Financial Measures” below for more information. 5 Diluted units used in calculating non- GAAP measures include restricted and deferred units issued under various plans and exclude the effect of assuming that all of the Class C LP Units will be settled with Class B LP Units. Refer to section 7.0 of the MD&A. 6 Comparative data has been restated using normalized maintenance capital expenditures, consistent with current period methodology. Refer to section 10.1 (e) of the MD&A. 7 Refers to retail and industrial properties, and excludes Properties Under Development. 8 Occupancy and other leasing key performance measures have been prepared on a committed basis which includes the impact of existing lease agreements contracted on or before June 30, 2026 and June 30, 2025, respectively and vacancies as at the end of those respective reporting periods. Financial Highlights Net Income – Net income was $126.2 million for the quarter, an increase of $23.2 million, compared to the same period in the prior year, primarily due to increases in the fair value adjustment on investment properties and higher revenues from the Property portfolio, partially offset by higher interest expense, property expense, and general and administrative expenses.
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Net Operating Income (NOI) 1 – Same store NOI was $118.2 million and same property NOI was $119.7 million for the quarter, which were $1.5 million or 1.3%, and $2.9 million or 2.5%, respectively, higher when compared to the prior year. Same store NOI increased primarily due to contractual rent escalations . The increase in same property NOI was primarily due to the increase in same store NOI noted above, as well as from the intensifications completed in 2025 and 2026. In the second quarter, NOI was $124.7 million, which was $5.8 million or 4.8% higher compared to the same period in the prior year. This was primarily due to the increase in same property NOI, coupled with an increase in NOI due to properties that were acquired and developed in 2025 and 2026. Funds from Operations (FFO) 1 – FFO for the quarter was $84.3 million , which was $3.1 million or 3.8% higher than the same period in 2025, primarily due to the acquisitions, intensifications and developments completed during 2025 and 2026, and lease renewal related base rent increases, partially offset by higher property expenses and interest costs. FFO per unit - diluted (non- GAAP) for the quarter was $0.353, which was $0.011 or 3.2% higher, compared to the same period in 2025, due to the growth of FFO exceeding the growth in weighted average units outstanding - diluted (non-GAAP). Adjusted Funds from Operations (AFFO) 1 – AFFO for the quarter was $78.0 million, which was $2.5 million or 3.3% higher than the same period in 2025, primarily due to the acquisitions, intensifications and developments completed during 2025 and 2026, contractual rent escalations, and lease renewal related base rent increases, partially offset by higher property expenses, interest costs and maintenance capital expenditure. AFFO per unit - diluted (non-GAAP) for the quarter was $0.326, which was $0.008 or 2.5% higher, compared to the same period in 2025, due to the growth of AFFO exceeding the growth in weighted average units outstanding - diluted (non-GAAP). Distributions – Distributions per Unit paid in the quarter amounted to $0.237, which was 2.5% higher than the same period in 2025 due to the increase in the rate of distributions that became effective with the monthly distributions paid in July 2025. Operating Results Leasing – CTC is CT REIT’s most significant tenant. As at June 30, 2026, CTC represented 92.0% of total GLA and 90.6% of annualized base minimum rent. Occupancy – As at June 30, 2026, CT REIT’s portfolio occupancy rate, on a committed basis, was 99.5%. 1 Non-GAAP financial measure. See “Specified Financial Measures” for more information.
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—————————————————————————————————————————————— Specified Financial Measures In addition to disclosing results in accordance with International Financial Reporting Standards (“IFRS”) Accounting Standards, CT REIT also provides supplementary non- Generally Accepted Accounting Principles (“GAAP”) measures and ratios. References to GAAP mean IFRS Accounting Standards. CT REIT believes these non- GAAP financial measures and ratios, read together with our GAAP results, provide useful information to both management and investors in measuring the financial performance of CT REIT and its abil ity to meet its principal objective of creating unitholder value over the long term by generating reliable, durable and growing monthly cash distributions on a tax -efficient basis. Non-GAAP financial measures and ratios do not have a standardized meaning under GAAP and are unlikely to be comparable to similar measures and ratios presented by other companies and should not be viewed in isolation from, or as a substitute for, GAAP results. See below for further information on non- GAAP financial measures and ratios used by management in this document and, where applicable, for reconciliations to the nearest GAAP measures. Net Operating Income (NOI) NOI is a non- GAAP financial measure defined as property revenue less property expense, adjusted for straight-line rent. The most directly comparable primary financial statement measure is property revenue. Management believes that NOI is a useful key indicator of performance as it represents a measure of property operations over which management has control. NOI is also a key input in determining the fair value of the Property portfolio. The following table reconciles GAAP property revenue to NOI: (in thousands of Canadian dollars) Three Months Ended Six Months Ended For the periods ended June 30, 2026 2025 Change 2026 2025 Change Property revenue $ 156,706 $ 149,782 4.6 % $ 314,264 $ 300,178 4.7 % Less: Property expense (34,128) (32,629) 4.6 % (69,518) (66,191) 5.0 % Property straight-line rent adjustment 2,082 1,756 18.6 % 4,179 3,625 15.3 % Net operating income $ 124,660 $ 118,909 4.8 % $ 248,925 $ 237,612 4.8 % Funds From Operations (FFO) and Adjusted Funds From Operations (AFFO)
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Certain non-GAAP financial measures for the real estate industry have been defined by the Real Property Association of Canada under its publications, “REALPAC Funds From Operations & Adjusted Funds From Operations for IFRS” and “REALPAC Adjusted Cashflow from Operations for IFRS”. CT REIT calculates Fund From Operations, Adjusted Funds From Operations and Adjusted Cashflow from Operations in accordance with these publications. The following table reconciles GAAP net income and comprehensive income to FFO and further reconciles FFO to AFFO: (in thousands of Canadian dollars) Three Months Ended Six Months Ended For the periods ended June 30, 2026 2025 Change ¹ 2026 2025 Change Net Income and comprehensive income $ 126,233 $ 103,003 22.6 % $ 241,971 $ 208,657 16.0 % Adjustments: Fair value adjustment on investment property (44,287) (23,560) 88.0 % (75,454) (48,373) 56.0 % Deferred income tax 1,156 818 41.3 % 599 647 (7.4) % Lease principal payments on right-of-use assets (305) (126) NM (505) (271) 86.3 % Fair value adjustment of unit-based compensation 1,157 773 49.7 % 1,440 1,014 42.0 % Internal leasing expense 344 337 2.1 % 711 668 6.4 % Funds from operations $ 84,298 $ 81,245 3.8 % $ 168,762 $ 162,342 4.0 % Property straight-line rent adjustment 2,082 1,756 18.6 % 4,179 3,625 15.3 % Direct leasing costs 2 (174) (186) (6.5) % (350) (365) (4.1) % Maintenance capital expenditures 3 (8,250) (7,325) 12.6 % (16,500) (14,650) 12.6 % Adjusted funds from operations $ 77,956 $ 75,490 3.3 % $ 156,091 $ 150,952 3.4 % ¹ NM - not meaningful. ² Excludes internal and external leasing costs related to development projects. 3 Comparative data has been restated using normalized maintenance capital expenditures, consistent with current period methodology. Refer to ‘Change to Capital Expenditure Approach’ below. Funds From Operations (FFO) FFO is a non- GAAP financial measure of operating performance used by the real estate industry, particularly by those publicly traded entities that own and operate income- producing properties. The most directly comparable primary financial statement measure is net income and comprehensive income. The use of FFO, together with the required IFRS Accounting Standards presentations, has been included for the purpose of improving the understanding of the operating results of CT REIT. Management believes that FFO is a useful measure of operating performance that, when compared period-over-period, reflects the impact on operations of trends in occupancy levels, rental rates, operating costs and property taxes, acquisition activities and interest costs, and provides a perspective of the financial performance that is not immediately apparent from net income determined in accordance with IFRS Accounting Standards. FFO adds back to net income items that do not arise from operating activities, such as fair value adjustments. FFO, however, still includes non- cash revenues related to accounting for straight -line rent
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and makes no deduction for the recurring capital expenditures necessary to sustain the existing earnings stream. Adjusted Funds From Operations (AFFO) AFFO is a non-GAAP financial measure of recurring economic earnings used in the real estate industry to assess an entity’s distribution capacity. The most directly comparable primary financial statement measures are net income and comprehensive income. CT REIT calculates AFFO by adjusting FFO for non- cash income and expense items such as amortization of straight-line rents. AFFO is also adjusted for maintaining the productive capacity required for sustaining property infrastructure and revenue from real estate properties and direct leasing costs. As property capital expenditures do not occur evenly during the fiscal year or from year to year, the maintenance capital expenditures in the AFFO calculation, which is used as an input in assessing the REIT’s distribution payout ratio, is intended to reflect an annual spending level. The maintenance capital expenditures guidance is primarily based on planned expenditures informed by building condition reports. Management believes that AFFO is a useful measure of operating performance similar to FFO, as described above, adjusted for the impact of non-cash income and expense items. Change to Capital Expenditure Approach The REIT has elected to change the methodology used to calculate the maintenance capital expenditures deduction in AFFO. Previously the REIT used a capital expenditure reserve based on a rate per square foot. Starting in 2026, the REIT moved to a normalized maintenance capital expenditures approach set out below. Management believes the new approach simplifies the calculation of the maintenance capital expenditures deduction in AFFO and provides more objective information since the total fiscal year deduction represents the actual capital expenditures incurred in the year. Since the REIT’s initial public offering in 2013, the REIT has established a regular recurring run rate of sustaining and maintaining capital reinvestment for its exis ting space. Management believes the move to a normalized maintenance capital expenditures approach is a more meaningful and useful measure to understanding the capital expenditures required to maintain our properties’ infrastructure. Normalized maintenance capital expenditures relate to sustaining and maintaining existing space and do not include expenditures related to development; nor do they relate to capital expenditures that are revenue enhancing with the addition of new gross leasable area. For further information to our quarters, see section 11.0 of the MD&A.
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FFO and AFFO Unit Ratios FFO per unit - basic, FFO per unit - diluted (non- GAAP), AFFO per unit - basic and AFFO per unit - diluted (non- GAAP) are non- GAAP ratios and reflect FFO and AFFO on a weighted average per unit basis. Management believes these non- GAAP ratios are useful measures to investors since the measures indicate the impact of FFO and AFFO, respectively, in relation to an individual per unit investment in the REIT. When calculating diluted per unit amounts, diluted units include restricted and deferred units issued under various plans and exclude the effects of settling the Class C LP Units with Class B LP Units. Management believes that FFO per unit ratios are useful measures of operating performance that, when compared period-over-period, reflect the impact on operations of trends in occupancy levels, rental rates, operating costs and property taxes, acquisition activities and interest costs, and provides a perspective of the financial performance that is not immediately apparent from net income per unit determined in accordance with IFRS Accounting Standards. Management believes that AFFO per unit ratios are usef ul measures of operating performance similar to FFO, as described above, adjusted for the impact of non- cash income and expense items. The component of the FFO per unit ratios, which is a non- GAAP financial measure, is FFO, and the component of AFFO per unit ratios, which is a non- GAAP financial measure, is AFFO. Three Months Ended Six Months Ended For the periods ended June 30, 2026 2025 Change 2026 2025 Change Funds from operations/unit – basic $ 0.353 $ 0.342 3.2 % $ 0.708 $ 0.684 3.5 % Funds from operations/unit – diluted $ 0.353 $ 0.342 3.2 % $ 0.707 $ 0.683 3.5 % Three Months Ended Six Months Ended For the periods ended June 30, 2026 2025 Change 2026 2025 Change Adjusted funds from operations/unit – basic 1 $ 0.327 $ 0.318 2.8 % $ 0.655 $ 0.636 3.0 % Adjusted funds from operations/unit – diluted 1 $ 0.326 $ 0.318 2.5 % $ 0.654 $ 0.635 3.0 % 1 Comparative data has been restated using normalized maintenance capital expenditures, consistent with current period methodology. Refer to section 10.1 (e) of the MD&A. Management calculates the weighted average units outstanding - diluted (non -GAAP) by excluding the full conversion of the Class C LP Units to Class B LP Units, which is not considered a likely scenario. As such, the REIT’s fully diluted per unit FFO and AFFO amounts are calculated, excluding the effects of settling the Class C LP Units with Class B LP Units, which management considers a more meaningful measure.
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AFFO Payout Ratio The AFFO payout ratio is a non- GAAP ratio which measures the sustainability of the REIT’s distribution payout. Management believes this is a useful measure to investors since this metric provides transparency on performance. Management considers the AFFO payout ratio to be the best measure of the REIT’s distribution capacity. The component of the AFFO payout ratio, which is a non- GAAP ratio, is AFFO, and the composition of the AFFO payout ratio is as follows: Three Months Ended Six Months Ended For the periods ended June 30, 2026 2025 Change 2026 2025 Change Distribution per unit - paid (A) $ 0.237 $ 0.231 2.5 % $ 0.474 $ 0.463 2.5 % AFFO per unit - diluted (non-GAAP) 1,2 (B) $ 0.326 $ 0.318 2.5 % $ 0.654 $ 0.635 3.0 % AFFO payout ratio (A)/(B) 2 72.7 % 72.6 % 0.1 % 72.5 % 72.9 % (0.4) % ¹ For the purposes of calculating diluted per unit amounts, diluted units include restricted and deferred units issued under variou s plans and excludes the effects of settling the Class C LP Units with Class B LP Units. 2 Comparative data has been restated using normalized maintenance capital expenditures, consistent with current period methodology. Refer to section 10.1 (e). Same Store NOI Same store NOI is a non- GAAP financial measure which reports the period- over-period performance of the same asset base having consistent GLA in both periods. CT REIT management believes same store NOI is a useful measure to gauge the change in asset productivity and asset value. The most directly comparable primary financial statement measure is property revenue. Same Property NOI Same property NOI is a non- GAAP financial measure that is consistent with the definition of same store NOI above, except that same property includes the NOI impact of intensifications. Management believes same property NOI is a useful measure to gauge the change in asset productivity and asset value, as well as measure the additional return earned by incremental capital investments in existing assets. The most directly comparable primary financial statement measure is property revenue.
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The following table summarizes the same store and same property components of NOI: (in thousands of Canadian dollars) Three Months Ended Six Months Ended For the periods ended June 30, 2026 2025 Change ¹ 2026 2025 Change ¹ Same store $ 118,157 $ 116,697 1.3 % $ 236,304 $ 233,403 1.2 % Intensifications 2026 413 — NM 540 — NM 2025 1,170 130 NM 2,325 130 NM Same property $ 119,740 $ 116,827 2.5 % $ 239,169 $ 233,533 2.4 % Acquisitions and developments 2026 1,389 755 84.0 % 2,630 1,117 NM 2025 3,531 1,327 NM 7,126 2,962 NM Net operating income $ 124,660 $ 118,909 4.8 % $ 248,925 $ 237,612 4.8 % Add: Property expense 34,128 32,629 4.6 % 69,518 66,191 5.0 % Property straight-line rent adjustment (2,082) (1,756) 18.6 % (4,179) (3,625) 15.3 % Property Revenue $ 156,706 $ 149,782 4.6 % $ 314,264 $ 300,178 4.7 % ¹ NM - not meaningful. Management's Discussion and Analysis and Interim Condensed Consolidated Financial Statements (Unaudited) and Notes Information in this press release is a select summary of results. This press release should be read in conjunction with CT REIT’s MD&A and Interim Condensed Consolidated Financial Statements (Unaudited) and Notes for the period ended June 30, 2026, which are both available on SEDAR+ at sedarplus.ca and at ctreit.com. Note: Unless otherwise indicated, all figures in this press release are as at June 30, 2026, and are presented in Canadian dollars. Forward-Looking Statements This press release contains statements and other information that constitute “forward- looking information” or “forward -looking statements” under applicable securities legislation (collectively, “forward- looking statements”) that reflect management's current expectations relating to matters such as future financial performance and operating results. Forward- looking statements provide information about management's current beliefs, expectations and plans and allow investors and others to better understand the REIT’s anticipated financial condition, results of operations, business strategy and financial needs. Readers are cautioned that such information may not be appropriate for other purposes. All statements, other than statements of historical fact, included in this document that address activities, events or developments that CT REIT or a third- party expects or anticipates will or may occur in the
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future, including the REIT’s future growth, financial condition, financial needs, results of operations, performance, business strategy, business prospects and opportunities and the assumptions underlying any of the foregoing, are forward- looking statements. Without limiting the foregoing, the REIT’s ability to complete the investments, the timing and terms of any such investments and the benefits expected to result from such investments, are forward-looking statements. By its very nature, forward- looking information requires the use of estimates and assumptions and is subject to inherent risks and uncertainties. It is possible that the REIT's assumptions, estimates, analyses, beliefs, and opinions are not correct, and that the REIT's expectations and plans will not be achieved. Although the forward- looking statements contained in this press release reflect management’s current beliefs and are based on information currently available to CT REIT and on assumptions CT REIT believes are reasonable about future events and financial trends that management believes may affect the REIT’s financial condition, results of operations, business strategy and financial needs, such information is necessarily subject to a number of factors that could c ause actual results to differ materially from management's expectations and plans as set forth in such forward-looking statements. For more information on the risks, uncertainties, factors and assumptions that could cause the REIT's actual results to differ from current expectations, refer to section 5 “Risk Factors” of CT REIT's Annual Information Form for fiscal 2025, and to sections 12.0 “Enterprise Risk Management” and 14.0 “Forward- looking Information” of CT REIT's MD&A for fiscal 2025, as well as the REIT’s other public filings, all of which are available at sedarplus.ca and at ctreit.com. The forward-looking statements contained herein are based on certain factors and assumptions as of the date hereof and do not take into account the effect that transactions or non- recurring or other special items announced or occurring after the statements are made can have on the REIT’s business. CT REIT does not undertake to update any forward- looking statements, whether written or oral, that may be made from time to time by it or on its behalf, to reflect new information, future events or otherwise, except as required by applicable securities laws. Information contained in or otherwise accessible through the websites referenced in this press release does not form part of this press release and is not incorporated by reference into this press release. All references to such websites are inactive textual references and are for information only. Additional information about CT REIT has been filed electronically with various securities regulators in Canada through SEDAR+ and is available at sedarplus.ca and at ctreit.com.
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Conference Call CT REIT will conduct a conference call to discuss information included in this news release and related matters at 9:00 a.m. ET on August 11, 2026. The conference call will be available simultaneously and in its entirety to all interested investors and the news media through a webcast by visiting https://edge.media-server.com/mmc/p/op39od2n/lan/en or by visiting https://www.ctreit.com/English/news- and-events/events-and-webcasts/default.aspx and will be available through replay for 12 months. About CT Real Estate Investment Trust CT REIT is an unincorporated, closed- end real estate investment trust formed to own income- producing commercial properties located primarily in Canada. Its portfolio is comprised of 380 properties totalling 32 million square feet of GLA, consisting primarily of net lease single- tenant retail properties across Canada. Canadian Tire Corporation, Limited, is CT REIT's most significant tenant. For more information, visit ctreit.com. For Further Information Media: Canadian Tire Media Hotline, 416-480-8453, mediainquiries@cantire.com Investors: Lesley Gibson, 416-480-8566, lesley.gibson@ctreit.com