Earnings release
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GRANITE REIT 77 King St. W. , Suite 4010 P.O. Box 159 Toronto , Ontario Canada M5K 1H1 GRANITE REIT ANNOUNCES 2026 SECOND QUARTER RESULTS AND THE ISSUANCE OF ITS 2025 CORPORATE SUSTAINABILITY REPORT - August 5 , 2026 , Toronto , Ontario , Canada Granite Real Estate Investment Trust ( TSX : GRT.UN ) ( " Granite " or the " Trust " ) announced today its condensed consolidated results for the three and six month periods ended June 30 , 2026 and also announced that today it released its 2025 Corporate Sustainability report . SECOND QUARTER 2026 HIGHLIGHTS Highlights for the three month period ended June 30 , 2026 are set out below : Financial : • Granite's net operating income ( " NOI " ) was $ 135.4 million in the second quarter of 2026 compared to $ 123.4 million in the prior year period , an increase of $ 12.0 million primarily as a result of new and renewal leasing activity mostly in Canada and the United States , contractual rent adjustments and consumer price index based increases across the portfolio , and the acquisitions of eight income - producing properties in the United States and the United Kingdom beginning in the second quarter of 2025 , partially offset by the dispositions of five income - producing properties beginning in the fourth quarter of 2025 ; • Constant currency same property NOI - cash basis ( 4 ) increased by 8.3 % for the second quarter of 2026 ; • Funds from operations ( " FFO " ) ( 1 ) was $ 95.2 million ( $ 1.56 per unit ) in the second quarter of 2026 compared to $ 85.4 million ( $ 1.39 per unit ) in the second quarter of 2025 . Excluding the net impact of $ 2.6 million in general and administrative expenses and interest and penalty provisions recognized relating to assessments received from the Canada Revenue Agency pertaining to a five - year HST audit of one of Granite's subsidiaries and the recognition of $ 1.3 million in lease termination and close - out fee revenue , FFO per unit for the second quarter of 2026 would have been $ 1.58 ; • • Adjusted funds from operations ( " AFFO " ) ( 2 ) was $ 77.3 million ( $ 1.26 per unit ) in the second quarter of 2026 compared to $ 75.1 million ( $ 1.23 per unit ) in the second quarter of 2025. Excluding the net impact of ( $ 1.3 ) million of non - recurring items noted in FFO above , AFFO per unit for the second quarter of 2026 would have been $ 1.28 ; During the three month period ended June 30 , 2026 , the Canadian dollar weakened against the Euro , and remained consistent against the US dollar compared to the prior year period . The impact of foreign exchange on FFO and AFFO for the three month period ended June 30 , 2026 , relative to the same period in 2025 , was favourable by $ 0.01 per unit for each measure ; 1
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• AFFO payout ratio (3) was 70% for the second quarter of 2026 compared to 69% in the second quarter of 2025; • The fair value of investment properties increased by $124.7 million primarily due to unrealized foreign exchange gains of $112.6 million resulting from the relative weakening of the Canadian dollar against the US dollar and the Euro as at June 30, 2026 compared to March 31, 2026, and capital expenditures at properties primarily in the United States and Canada of $32.9 million, partially offset by fair value losses on investment properties of $20.6 million. Granite recognized $12.9 million in fair value losses, including assets held for sale, in the second quarter of 2026, primarily attributable to the expansion in the discount and terminal capitalization rates at select European properties due to market conditions and decreases in fair market rents at select properties in Canada, partially offset by increases in fair market rents at select properties in the United States, and a fair value gain on an asset held for sale in the United States; and • Granite's net income attributable to unitholders in the second quarter of 2026 was $70.0 million compared to $95.0 million in the prior year period primarily due to a $29.7 million unfavourable change in fair value adjustments on investment properties, and a $8.2 million increase in general and administrative expenses, partially offset by a $12.0 million increase in net operating income as noted above. Investments: • As at June 30, 2026 , two income-producing properties located in the United States and Canada were classified as assets held for sale with a fair value of $66.2 million; and • Subsequent to June 30, 2026 , on July 20, 2026, Granite completed the disposition of a 41,200 square foot income-producing property located in Canada that was classified as held for sale as at June 30, 2026, for a gross sale price of $16.5 million. Operations: • In-place occupancy as at June 30, 2026 was 98.0%, representing an increase of 50 basis points relative to in-place occupancy as at March 31, 2026 and an increase of 220 basis points relative to in-place occupancy as at June 30, 2025. Committed occupancy as at August 5, 2026 is 98.1%; • During the second quarter of 2026, Granite achieved average rental rate spreads of 7% over expiring rents representing approximately 0.3 million square feet of new leases and renewals taking effect in the quarter including a 0.1 million square foot month-to-month fixed rate lease extension at one U.S. property; and • During the second quarter of 2026, Granite executed a lease commencing in the second quarter of 2026 for approximately 52,500 square feet of the remaining vacant space at a previously completed development in Tennessee for a 63-month term. Following this lease execution, the approximately 0.5 million square foot business park is now fully leased as at June 30, 2026. 2
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Financing: • During the second quarter of 2026, Granite issued 709,975 units under its at-the-market equity distribution program (the “ATM Program”) at an average unit price of $96.39 for gross proceeds of $68.4 million excluding issuance costs; and • Subsequent to June 30, 2026, Granite issued 723,200 units under its ATM Program at an average unit price of $96.82 for gross proceeds of $70.0 million excluding issuance costs. Year to date, Granite has issued 1,433,175 units under its ATM Program at an average price of $96.61 for gross proceeds of $138.4 million excluding issuance costs. GRANITE’S FINANCIAL AND OPERATING HIGHLIGHTS Three Months Ended June 30, Six Months Ended June 30, (in millions, except as noted) 2026 2025 2026 2025 Revenue . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 165.1 $ 149.3 $ 330.9 $ 303.9 Net operating income ("NOI") . . . . . . . . . . . . . . . . . . . . . . $ 135.4 $ 123.4 $ 269.7 $ 249.0 NOI - cash basis(4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 130.9 $ 121.1 $ 262.2 $ 244.0 Constant currency same property NOI - cash basis(4) . . . 8.3 % 4.6 % 8.3 % 4.5 % Net income attributable to unitholders . . . . . . . . . . . . . . . $ 70.0 $ 95.0 $ 161.3 $ 138.9 Funds from operations ("FFO")(1) . . . . . . . . . . . . . . . . . . . . $ 95.2 $ 85.4 $ 191.1 $ 176.5 Adjusted funds from operations ("AFFO")(2) . . . . . . . . . . $ 77.3 $ 75.1 $ 163.3 $ 163.6 Diluted FFO per unit(1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.56 $ 1.39 $ 3.13 $ 2.85 Diluted AFFO per unit(2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 1.26 $ 1.23 $ 2.67 $ 2.64 Monthly distributions paid per unit . . . . . . . . . . . . . . . . . . $ 0.89 $ 0.85 $ 1.77 $ 1.70 AFFO payout ratio(3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 70 % 69 % 66 % 64 % As at June 30, 2026 and December 31, 2025 2026 2025 Fair value of investment properties . . . . . . . . . . . . . . . . . . $ 9,603.1 $ 9,478.4 Assets held for sale(10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 66.2 $ 81.0 Cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . $ 94.6 $ 139.6 Total debt(5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,201.3 $ 3,422.1 Net leverage ratio(6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32 % 35 % Indebtedness ratio(11)(12) . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6.6x 7.3x Number of income-producing properties . . . . . . . . . . . . 139 141 Gross leasable area (“GLA”), square feet . . . . . . . . . . . . . 61.5 62.6 Occupancy, by GLA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 98.0 % 98.0 % Committed occupancy, by GLA(9) . . . . . . . . . . . . . . . . . . . . 98.1 % 98.6 % Magna as a percentage of annualized revenue(8) . . . . . . 26 % 26 % Magna as a percentage of GLA . . . . . . . . . . . . . . . . . . . . . 19 % 19 % Weighted average lease term in years, by GLA . . . . . . . 5.1 5.5 Overall capitalization rate(7) . . . . . . . . . . . . . . . . . . . . . . . . . 5.7 % 5.6 % The above disclosure includes certain non-GAAP performance measures and non-GAAP ratios (see "NON-GAAP PERFORMANCE MEASURES, RATIOS AND RECONCILIATIONS "). A more detailed discussion of Granite’s condensed consolidated financial results for the three and six month periods ended June 30, 2026 and 2025 is contained in Granite's Management Discussion and Analysis of Operations and Financial Position ("MD&A") for the three and six 3
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month periods ended June 30, 2026 and the unaudited condensed consolidated financial statements for those periods and the notes thereto, which are available through the internet on the Canadian Securities Administrators’ System for Electronic Data Analysis and Retrieval Plus (“SEDAR+”) and can be accessed at www.sedarplus.ca. 2025 CORPORATE SUSTAINABILITY REPORT Today, Granite released its 2025 Corporate Sustainability report which highlights Granite's sustainability program initiatives and updates from the 2025 calendar year. A copy of the report can be found on Granite's website at https://granitereit.com/sustainability. 2026 OUTLOOK Granite is updating its 2026 guidance and narrowing the ranges relative to guidance initially published on February 25, 2026. Granite’s current outlook reflects lease renewals and new leasing, dispositions, and financing transactions completed year to date. In addition, the outlook assumes the disposition of the assets held for sale of $66.2 million in Q3 2026 and assumes new acquisitions totaling approximately $195 million executed by early Q4 2026, financed by net proceeds from the dispositions, draws on Granite’s $1.0 billion unsecured revolving credit facility (the “Credit Facility”), and cash on hand. The outlook assumes no material changes to its assumptions regarding remaining leasing activity for the year, operations and capital expenditures. The high and low ranges are driven by foreign currency exchange rate assumptions which have been updated for the US dollar and British pound and are outlined in the table below. The table below outlines Granite’s current forecast for the year ending December 31, 2026: Measure Current Previously Published February 25, 2026 EUR:CAD exchange rate(1) no change 1.58 to 1.62 USD:CAD exchange rate(1) 1.37 to 1.41 1.34 to 1.40 GBP:CAD exchange rate(1) 1.83 to 1.88 1.80 to 1.86 FFO per unit $6.30 to $6.40 $6.25 to $6.40 AFFO per unit $5.45 to $5.55 $5.40 to $5.55 Maintenance capital expenditures, tenant allowances and leasing commissions impacting AFFO no change $40.0 million Constant currency same property NOI - cash basis, four quarter average 6.0% to 6.5% 5.5% to 6.5% (1) Exchange rate assumptions pertain to the forecast period only. Granite’s 2026 forecast assumes no favourable reversals of tax provisions relating to prior years which cannot be determined at this time. Non-GAAP performance measures are included in Granite’s 2026 forecast above (see “ NON-GAAP PERFORMANCE MEASURES ”). See also “FORWARD-LOOKING INFORMATION”. 4
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CONFERENCE CALL Granite will hold a conference call and live audio webcast to discuss its financial results. The conference call will be chaired by Kevan Gorrie, President and Chief Executive Officer. Date: Thursday, August 6, 2026 at 11:00 a.m. (ET) Telephone: North America (Toll-Free): 1-833-461-5787 International (Toll): 1-365-657-4084 Conference ID/Passcode: 870 555 998 Webcast: To access the live audio webcast in listen-only mode, please visit https://events.q4inc.com/attendee/870555998 or https://granitereit.com/events. To hear a replay of the webcast, please visit https://granitereit.com/events. The replay will be available for 90 days. OTHER INFORMATION Additional property statistics as at June 30, 2026 have been posted to our website at https:// granitereit.com/property-statistics-q2-2026. Copies of financial data and other publicly filed documents are available through the internet on SEDAR+, which can be accessed at www.sedarplus.ca. Granite is a Canadian-based REIT engaged in the acquisition, development, ownership and management of logistics, warehouse and industrial properties in North America and Europe. Granite owns 145 investment properties representing approximately 61.5 million square feet of gross leasable area. For further information, please see our website at www.granitereit.com or contact Teresa Neto, Chief Financial Officer, at (647) 925-7560. NON-GAAP PERFORMANCE MEASURES, RATIOS AND RECONCILIATIONS Readers are cautioned that certain terms used in this press release such as FFO, AFFO, FFO payout ratio, AFFO payout ratio, same property NOI - cash basis, constant currency same property NOI - cash basis, total debt and net debt, net leverage ratio, and any related per unit amounts used by management to measure, compare and explain the operating results and financial performance of the Trust do not have standardized meanings prescribed under IFRS® Accounting Standards as issued by the International Accounting Standards Board (“IFRS Accounting Standards” or “GAAP”) and, therefore, should not be construed as alternatives to net income, cash provided by operating activities or any other measure calculated in accordance with IFRS Accounting Standards. Additionally, because these terms do not have a standardized meaning prescribed by IFRS Accounting Standards, they may not be comparable to similarly titled measures presented by other publicly traded entities. 5
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(1) FFO is a non-GAAP performance measure that is widely used by the real estate industry in evaluating the operating performance of real estate entities. Granite calculates FFO as net income attributable to unitholders excluding fair value gains (losses) on investment properties and financial instruments, gains (losses) on sale of investment properties including the associated current income tax, foreign exchange gains (losses) on certain monetary items not forming part of a net investment in a foreign operation, fair value remeasurement on deferred units, deferred income taxes, corporate restructuring costs and certain other items, net of non-controlling interests in such items. The Trust’s determination of FFO follows the definition prescribed by the Real Property Association of Canada (“REALPAC”) guidelines on Funds From Operations & Adjusted Funds From Operations for IFRS Accounting Standards dated January 2022 (“REALPAC Guidelines”) except for the exclusion of corporate restructuring costs. Granite considers FFO to be a meaningful supplemental measure that can be used to determine the Trust’s ability to service debt, fund capital expenditures and provide distributions to unitholders. FFO is reconciled to net income, which is the most directly comparable GAAP measure (see table below). FFO should not be construed as an alternative to net income or cash flow provided by operating activities determined in accordance with IFRS Accounting Standards. (2) AFFO is a non-GAAP performance measure that is widely used by the real estate industry in evaluating the recurring economic earnings performance of real estate entities after considering certain capital costs associated with sustaining such earnings. Granite calculates AFFO as net income attributable to unitholders including all adjustments used to calculate FFO and further adjusts for actual maintenance capital expenditures that are required to sustain Granite’s productive capacity, leasing costs such as leasing commissions and tenant allowances incurred and non-cash straight-line rent and tenant incentive amortization, net of non-controlling interests in such items. The Trust's determination of AFFO follows the definition prescribed by the REALPAC Guidelines except for the exclusion of corporate restructuring costs as noted above . Granite considers AFFO to be a meaningful supplemental measure that can be used to determine the Trust’s ability to service debt, fund expansion capital expenditures, fund property development and provide distributions to unitholders after considering capital costs associated with sustaining operating earnings. AFFO is also reconciled to net income, which is the most directly comparable GAAP measure (see table below). AFFO should not be construed as an alternative to net income or cash flow provided by operating activities determined in accordance with IFRS Accounting Standards. 6
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Three Months Ended June 30, Six Months Ended June 30, (in millions, except per unit amounts) 2026 2025 2026 2025 Net income attributable to unitholders $ 70.0 $ 95.0 $ 161.3 $ 138.9 Add (deduct): Fair value losses (gains) on investment properties, net . . . . . . . . . . . . . . . . . . . . . . . . . . . 12.9 (16.8) 5.6 31.4 Fair value losses (gains) on financial instruments, net . . . . . . . . . . . . . . . . . . . . . . . . . . 1.4 (0.7) 1.3 (0.8) Loss on sale of investment properties . . . . . . . . — — 1.7 — Deferred tax expense . . . . . . . . . . . . . . . . . . . . . . 6.0 8.0 15.9 7.8 Fair value remeasurement of the Executive Deferred Unit Plan . . . . . . . . . . . . . . . . . . . . . . . 2.7 (0.4) 2.9 (0.7) Fair value remeasurement of the Directors Deferred Unit Plan . . . . . . . . . . . . . . . . . . . . . . . 2.2 0.2 2.3 (0.1) Non-controlling interests relating to the above — 0.1 0.1 — FFO [A] $ 95.2 $ 85.4 $ 191.1 $ 176.5 Add (deduct): Maintenance or improvement capital expenditures incurred . . . . . . . . . . . . . . . . . . . . (11.5) (3.8) (16.6) (4.2) Leasing costs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . (1.0) (4.1) (1.9) (4.4) Tenant allowances . . . . . . . . . . . . . . . . . . . . . . . . . (2.2) (0.1) (3.1) (0.1) Straight-line rent amortization . . . . . . . . . . . . . . . (3.2) (2.3) (6.2) (4.2) Non-controlling interests relating to the above — — — — AFFO [B] $ 77.3 $ 75.1 $ 163.3 $ 163.6 Basic FFO per unit [A]/[C] $ 1.56 $ 1.40 $ 3.15 $ 2.87 Diluted FFO per unit [A]/[D] $ 1.56 $ 1.39 $ 3.13 $ 2.85 Basic AFFO per unit [B]/[C] $ 1.27 $ 1.23 $ 2.69 $ 2.66 Diluted AFFO per unit [B]/[D] $ 1.26 $ 1.23 $ 2.67 $ 2.64 Basic weighted average number of units [C] 60.9 61.0 60.7 61.6 Diluted weighted average number of units [D] 61.2 61.3 61.1 61.9 (3) The FFO and AFFO payout ratios are calculated as monthly distributions, which exclude special distributions, declared to unitholders divided by FFO and AFFO (non-GAAP performance measures), respectively, in a period. FFO payout ratio and AFFO payout ratio may exclude revenue or expenses incurred during a period that can be a source of variance between periods. The FFO payout ratio and AFFO payout ratio are supplemental measures widely used by investors in evaluating the sustainability of the Trust’s monthly distributions to unitholders. 7
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Three Months Ended June 30, Six Months Ended June 30, (in millions, except as noted) 2026 2025 2026 2025 Monthly distributions declared to unitholders . . . [A] $ 54.1 $ 51.7 $ 107.9 $ 104.5 FFO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [B] 95.2 85.4 191.1 176.5 AFFO . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [C] 77.3 75.1 163.3 163.6 FFO payout ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [A]/[B] 57 % 61 % 56 % 59 % AFFO payout ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . [A]/[C] 70 % 69 % 66 % 64 % (4) Same property NOI — cash basis refers to the NOI — cash basis (NOI excluding lease termination and close-out fees, and the non-cash impact from straight-line rent and tenant incentive amortization) for those properties owned by Granite throughout the entire current and prior year periods under comparison. Same property NOI — cash basis excludes properties that were acquired, disposed of, classified as development properties or assets held for sale during the periods under comparison. Granite believes that same property NOI — cash basis is a useful supplementary measure in understanding period-over-period organic changes in NOI — cash basis from the same stock of properties owned. Sq ft(1) Three Months Ended June 30, Sq ft(1) Six Months Ended June 30, (in millions) 2026 2025 $ change % change (in millions) 2026 2025 $ change % change Revenue $ 165.1 $ 149.3 15.8 $ 330.9 $ 303.9 27.0 Less: Property operating costs . . . . . . . . . . . . . . . . . . 29.7 25.9 3.8 61.2 54.9 6.3 NOI $ 135.4 $ 123.4 12.0 9.7 % $ 269.7 $ 249.0 20.7 8.3 % Add (deduct): Lease termination and close-out fees . . . . . . . . . . (1.3) — (1.3) (1.3) (0.8) (0.5) Straight-line rent amortization . . . . . . . . . . . . (3.2) (2.3) (0.9) (6.2) (4.2) (2.0) NOI - cash basis 62.1 $ 130.9 $ 121.1 9.8 8.1 % 62.1 $ 262.2 $ 244.0 18.2 7.5 % Less NOI - cash basis for: Acquisitions . . . . . . . . . . . . . . 1.6 (4.4) — (4.4) 1.6 (8.8) — (8.8) Dispositions and assets held for sale . . . . . . . . . . . . 3.4 0.3 (4.9) 5.2 3.4 (0.3) (11.1) 10.8 Same property NOI - cash basis 60.0 $ 126.8 $ 116.2 10.6 9.1 % 60.0 $ 253.1 $ 232.9 20.2 8.7 % Constant currency same property NOI - cash basis(2) 60.0 $ 126.8 $ 117.1 9.7 8.3 % 60.0 $ 253.1 $ 233.8 19.3 8.3 % (1) The square footage relating to the NOI — cash basis represents GLA of 62.1 million square feet as at June 30, 2026. The square footage relating to the same property NOI — cash basis represents the aforementioned GLA excluding the impact from the acquisitions, dispositions, assets held for sale and developments during the relevant period. (2) Constant currency same property NOI - cash basis is calculated by converting the comparative same property NOI - cash basis at current period average foreign exchange rates. (5) Total debt is calculated as the sum of all current and non-current debt, the net mark to market fair value of derivatives and lease obligations. Net debt subtracts cash and cash equivalents from total debt. Granite believes that it is useful to include the derivatives and lease obligations for the purposes of monitoring the Trust’s debt levels. 8
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(6) The net leverage ratio is calculated as net debt (a non-GAAP performance measure defined above) divided by the fair value of investment properties (excluding assets held for sale). The net leverage ratio is a non-GAAP ratio used in evaluating the Trust’s degree of financial leverage, borrowing capacity and the relative strength of its balance sheet. As at June 30, 2026 and December 31, 2025 2026 2025 Unsecured debt, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,020.7 $ 3,276.6 Derivatives, net . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 146.3 110.8 Lease obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34.3 34.7 Total debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 3,201.3 $ 3,422.1 Less: cash and cash equivalents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 94.6 139.6 Net debt . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [A] $ 3,106.7 $ 3,282.5 Investment properties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [B] $ 9,603.1 $ 9,478.4 Net leverage ratio . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . [A]/[B] 32 % 35 % (7) Overall capitalization rate is calculated as stabilized net operating income (property revenue less property expenses) divided by the fair value of the income-producing property. (8) Annualized revenue for each period presented is calculated as the contractual base rent for the month subsequent to the quarterly reporting period multiplied by 12 months. Annualized revenue excludes revenue from properties classified as assets held for sale. (9) Committed occupancy as at August 5, 2026. (10) Assets held for sale are excluded from investment properties and related property metrics. Accordingly, two such assets that were held for sale as at June 30, 2026 were excluded from investment properties and related metrics as at June 30, 2026 . Two such assets that were held for sale as at December 31, 2025 were excluded from investment properties and related property metrics as at December 31, 2025. (11) Adjusted EBITDA is calculated as net income attributable to unitholders before lease termination and close-out fees, interest expense, interest income, income tax expense, depreciation and amortization expense, fair value gains (losses) on investment properties and financial instruments, fair value remeasurement on deferred units, other expense relating to real estate transfer tax and loss on the sale of investment properties, foreign exchange gains (losses) on certain monetary items not forming part of a net investment in a foreign operation, corporate restructuring costs and certain other items, net of non- controlling interests in such items. (12) The indebtedness ratio is calculated as total debt (a non-GAAP performance measure defined above) divided by Adjusted EBITDA (a non-GAAP performance measure defined above) and Granite believes it is useful in evaluating the Trust's ability to repay outstanding debt using its operating cash flows. 9
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FORWARD-LOOKING INFORMATION This press release may contain statements that, to the extent they are not recitations of historical fact, constitute “forward-looking information” within the meaning of applicable Canadian securities legislation. Forward-looking information may include, among others, statements regarding Granite’s future plans, goals, strategies, intentions, beliefs, estimates, costs, objectives, capital structure, cost of capital, tenant base, tax consequences, economic performance or expectations, or the assumptions underlying any of the foregoing. Words such as “outlook”, “may”, “would”, “could”, “should”, “will”, “likely”, “expect”, “anticipate”, “believe”, “intend”, “plan”, “forecast”, “strategy”, “project”, “estimate”, “seek” and similar expressions are used to identify forward-looking information. Forward-looking information should not be read as guarantees of future events, performance or results and will not necessarily be accurate indications of whether or the times at or by which such future performance will be achieved. Undue reliance should not be placed on such statements. There can also be no assurance that Granite’s expectations regarding various matters, including the following, will be realized in a timely manner, with the expected impact or at all: Granite’s ability to deliver cash flow stability and growth and create long-term value for unitholders; Granite’s ability to advance its sustainability program and related targets and goals; the expansion, diversification and quality of Granite's real estate portfolio, including acquisitions of properties in new markets and the reduction in Granite’s exposure to Magna and the special purpose properties; Magna’s potential renewal of leases; Granite’s ability to dispose of assets held for sale and the timing of such dispositions; Granite’s ability to accelerate growth and to grow its net asset value, FFO and AFFO per unit, and constant currency same property NOI - cash basis; Granite's ability to execute on its strategic plan and its priorities in 2026; Granite's 2026 outlook for FFO per unit, AFFO per unit and constant currency same property NOI, including the anticipated impact of future foreign currency exchange rates on FFO and AFFO per unit and expectations regarding Granite's business strategy; fluctuations in foreign currency exchange rates and the effect on Granite's revenues, expenses, cash flows, assets and liabilities; Granite's ability to offset interest or realize interest savings relating to its debentures and cross currency interest rate swaps; Granite’s ability to find and integrate satisfactory acquisition, joint venture and development opportunities and to strategically deploy the proceeds from recently sold properties and financing initiatives; Granite's intended use of available liquidity, its ability to obtain secured funding against its unencumbered assets and its expectations regarding the funding of its ongoing operations and future growth; any future offerings under Granite’s base shelf prospectuses; obtaining site planning approval of a 0.7 million square foot distribution facility on the 34.0 acre site in Brantford, Ontario; obtaining site plan approval for the future phases of its development for up to 0.7 million square feet on the 68.7 acre site in Houston, Texas and construction of the 0.4 million square foot distribution facility in Houston, Texas and the expected timing and potential yield from each project; the development of 12.9 acres of land in West Jefferson, Ohio and the potential yield from that project; the development of a 0.6 million square foot multi-phased business park on the remaining 36.0 acre parcel of land in Brantford, Ontario and the potential yield from that project; the development of a 0.2 million square foot modern distribution/logistics facility on the 10.1 acres of land in Brant County, Ontario; estimates regarding Granite's development properties and expansion projects, including square footage of construction, total construction costs and total costs; Granite’s ability to meet its target occupancy goals; Granite’s ability to secure sustainability or other certifications for any of its properties; Granite’s ability to generate peak solar capacity on its properties; the amount of any distributions and distribution increase, including whether any 10
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expected increases can be achieved in a timely manner, with the expected impact or at all; the adoption of any accounting standards and the timing thereof; GRESB's release of the results of its 2026 assessment; and the effect of any legal proceedings on Granite. Forward-looking information is based on information available at the time and/or management’s good faith assumptions and analyses made in light of Granite’s perception of historical trends, current conditions and expected future developments, as well as other factors Granite believes are appropriate in the circumstances. Forward-looking information is subject to known and unknown risks, uncertainties and other unpredictable factors, many of which are beyond Granite’s control, that could cause actual events or results to differ materially from such forward-looking information. Important factors that could cause such differences include, but are not limited to, the risk of changes to tax or other laws and treaties that may adversely affect Granite’s mutual fund trust status under the Income Tax Act (Canada) or the effective tax rate in other jurisdictions in which Granite operates; the risk related to tariffs, global trade and supply chains that may adversely impact Granite’s tenants’ operations and in turn impact Granite’s operations and financial performance; economic, market and competitive conditions and other risks that may adversely affect Granite’s ability to expand and diversify its real estate portfolio; and the risks set forth under “Risks and Uncertainties” in Granite's MD&A for the three and six months ended June 30, 2026 filed on August 5, 2026 and in the "Risk Factors" section in Granite's AIF for 2025 dated February 25, 2026 , filed on SEDAR+ at www.sedarplus.ca, all of which investors are strongly advised to review. The “Risk Factors” section also contains information about the material factors or assumptions underlying such forward-looking information. Forward-looking information speaks only as of the date the information was made and unless otherwise required by applicable securities laws, Granite expressly disclaims any intention and undertakes no obligation to update or revise any forward-looking information contained in this press release to reflect subsequent information, events or circumstances or otherwise. 11