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GRANITE REIT 77 King St. W. , Suite 4010 P.O. Box 159 Toronto , Ontario Canada M5K 1H1 GRANITE ANNOUNCES 2021 THIRD QUARTER RESULTS , $ 260 MILLION OF NEW ACQUISITIONS AND DEVELOPMENTS , AND A 3.3 % DISTRIBUTION INCREASE COMMENCING DECEMBER 2021 November 3 , 2021 , Toronto , Ontario , Canada - Granite Real Estate Investment Trust and Granite REIT Inc. ( TSX : GRT.UN ; NYSE : GRP.U ) ( " Granite " or the " Trust ” ) announced today its combined results for the three and nine month periods ended September 30 , 2021 and also announced $ 260 million of committed / completed acquisitions in the United States and Netherlands , as well as a distribution increase of 3.3 % effective with the December 2021 distribution . THIRD QUARTER 2021 HIGHLIGHTS Highlights for the three month period ended September 30 , 2021 , including events subsequent to the quarter , are set out below : Financial : • Granite's net operating income ( " NOI " ) was $ 84.5 million in the third quarter of 2021 compared to $ 76.5 million in the prior year period , an increase of $ 8.0 million primarily as a result of acquisition activity beginning in the third quarter of 2020 ; - • Same property NOI - cash basis ( 4 ) increased by 5.0 % for the three month period ended September 30 , 2021 , excluding the impact of foreign exchange ; • Funds from operations ( " FFO " ) ( 1 ) was $ 65.2 million ( $ 0.99 per unit ) in the third quarter of 2021 compared to $ 55.5 million ( $ 0.96 per unit ) in the third quarter of 2020 ; • • Adjusted funds from operations ( " AFFO " ) ( 2 ) was $ 61.2 million ( $ 0.93 per unit ) in the third quarter of 2021 compared to $ 52.7 million ( $ 0.91 per unit ) in the third quarter of 2020 ; • AFFO payout ratio ( 3 ) was 81 % for the third quarter of 2021 compared to 80 % in the third quarter of 2020 ; • Granite recognized $ 432.2 million in net fair value gains on investment properties in the third quarter of 2021 which were attributable to various factors including fair market rent increases as well as compression in discount and terminal capitalization rates for properties located in the GTA , across the United States and Europe . The value of investment properties was further increased by unrealized foreign exchange gains of $ 68.9 million resulting from the relative weakening of the Canadian dollar against the US dollar as at September 30 , 2021 versus June 30 , 2021 ; • Granite's net income attributable to stapled unitholders increased to $ 421.8 million in the third quarter of 2021 from $ 105.2 million in the prior year period primarily due to a $ 370.1 million increase in net fair value gains on investment properties and a $ 8.0 million increase in net operating income as noted above , partially offset by a $ 61.3 million increase in deferred and current income tax expense ; and 1