Thank you for standing by. This is the conference operator. Welcome to the Melcor REIT first quarter 2022 results conference call. As a reminder, all participants are in listen-only mode, and the conference is being recorded. After the presentation, there will be an opportunity to ask questions. To join the question queue, you may press star then one on your telephone keypad. Should you need assistance during the conference call, you may signal an operator by pressing star then zero. I would now like to turn the conference over to Naomi Stefura, CFO. Please go ahead. Thank you, Cha. Good morning, and welcome to our conference call and webcast for the first quarter of 2022. With me on today's call is Andrew Melton, Chief Executive Officer of the Melcor REIT. I will begin today's call with the mandatory statements, and then I'll walk you through a few financial highlights. Afterwards, I'll turn the call over to Andrew to walk through our operational highlights. Our goal is to keep our remarks to a brief high-level review of the year or quarter, and then open up the call for your questions. If you have not reviewed the materials related to this call, including the management's discussion and analysis and the financial statements, they are available on the investor relations section of our website at melcorreit.ca and on sedar.com. Certain statements made during this call may be forward-looking. For a complete discussion of items that may cause actual results to differ, please refer to the Business Environment and Risk section of our annual MD&A. Second, we report our financial results in Canadian dollars and in accordance with IFRS. We supplement our financial reporting with non-standard measures, including FFO, AFFO, ACFO, and NOI. We believe these measures are important in evaluating our performance, but caution listeners that they may not be comparable to similar measures presented by other companies. These non-standard measures are defined and reconciled in our press release and in the MD&A. I will now walk everyone through some of the financial highlights of our results for Q1, 2022. First off, I would like to note that fees received in the first quarter of 2021 due to the early termination of a retail tenant in Leduc Commons have skewed our results when making a direct comparison to this quarter. I will refer to this as the early termination event while reviewing our results. Additional detail on the event can be found in the highlights section of the MD&A. Our portfolio performance remained stable through the first three months of 2022, with rental revenue down 3% and NOI down 6%. However, adjusting for the early termination event, revenue was in fact up 3% and NOI was up 2%. FFO was down 8% to CAD 6.53 million or CAD 0.22 per unit. However, again, excluding the early termination event, FFO was up 7% or CAD 0.43 million. Management believes FFO best reflects our true operating performance. ACFO was stable at CAD 5.77 million or CAD 0.20 per unit. ACFO better reflects our cash position and therefore our ability to pay distributions by excluding accretion expense, which is a non-cash item. Our monthly distributions remained stable over year-end at CAD 0.04 a month and increased 14% over Q1 2021. The quarterly payout ratio was 61% based on ACFO compared to 53% in Q1 2021 as a result of the higher distributions made in this quarter. Subsequent to quarter end, we announced distributions of CAD 0.04 per unit for the months of April and May. As at March 31, 2022, we had CAD 7.87 million in cash and CAD 35 million in undrawn liquidity under our revolving credit facility. I will now turn the call over to Andrew Melton to speak to our portfolio's operations and performance. Thank you, Naomi. Thanks, Cha, for your work on the call. Hello, everyone. Thanks for joining our call. I am pleased to report stable results for the first quarter of 2022. Much of the workforce, including the good staff at Melcor, have returned to the office and brought much-welcomed energy back into our city centers and the business community. We are pleased and encouraged with leasing activity and have completed renewals and new deals across our portfolio. In the quarter, we signed over 179,000 sq ft of new and renewed leasing and tenant retention of 86%. Further leasing is promising with a noticeable increase in inbound interest, tours, and offers. As always, our team started early to secure renewals of the 9.6% of our GLA that expires in 2022, and we're experiencing quite a bit of success. Earlier in the quarter, we announced the addition of two major tenants in two of our properties, being Habitat for Humanity in Red Deer, Alberta, and that store is now open and operating. The Innovate Edmonton deal, which has been a very popular topic in downtown Edmonton office market, will open its doors in downtown Edmonton later in the fall, and our team is working hard with the tenant on their tenant improvements. We'll have some more exciting news to come. To ensure we are all working towards a more sustainable future for the REIT, we continue our progress in the Edmonton Corporate Climate Leaders Program. We have completed a benchmark of our own energy usage and are now in the process of setting our targets for climate actions. We will communicate these targets to stakeholders before the year-end. As Naomi mentioned, we have held our distribution steady at CAD 0.04 per unit per month and have declared the similar distribution in April and May. Last month, we welcomed Randy Ferguson to the role of Senior Vice President of Investment Properties, which includes the REIT's entire portfolio of 39 properties. Randy brings over 40 years of experience to the real estate industry to Melcor and Melcor REIT. We're very happy to have him on board, and he's already been making a positive difference. Changes have become natural. Change has become our natural state. For the first time in a long time, the change feels positive and reassuring. We are looking forward to the rest of 2022 and feel well-positioned to seize on opportunities as they arise. At this time, we'd like to open the phone lines to take your questions. Cha, please open the lines. Thank you. We will now begin the question and answer session. To join the question queue, you may press star then one on your telephone keypad. You will hear a tone acknowledging your request. If you are using a speakerphone, please pick up your handset before pressing any keys. To withdraw your question, please press star then two. We will pause for a moment as callers join the queue. The first question comes from Tom Callaghan with RBC Capital Markets. Please go ahead. Thanks, and, good morning. Morning, Tom. Morning. Just wanted to start on a leasing front. Certainly seems like 2022 is off to a very good start. Maybe just looking ahead to the 117,000 sq ft of future commitments and those 74,000 of new leases that you mentioned. Just curious, are they spread out across asset classes and geographies, or maybe they're more weighted to one particular asset class or geography? Yeah, I should have mentioned that. That's a great question because what has really encouraged us is we're seeing the activity across all asset classes and across all regions. We'll remind you that we are in Regina and Kelowna. The activity's been nicely spread out through all regions and all asset class. Okay. Got it. Thanks. Maybe just more broadly, curious to get your thoughts on what you're seeing in the office sector. You know, obviously with both Edmonton and Calgary appearing to have notched positive absorption in Q1. Just curious in terms of what you're seeing with respect to your properties and your tenants and maybe how you see the outlook evolving from here. Our office product, fortunately or unfortunately, we don't have any exposure in the downtown Calgary office market. Our downtown office exposure is in Edmonton. Second to that, we have a fair amount of office space outside of the core and in other communities other than Edmonton. Specifically in Edmonton, I mean, it's still very, very difficult. Every deal is a real challenge. Rental rates continue to inch downwards and TIs continue to inch up. We feel in the Edmonton perspective that our buildings are. We kind of cater to smaller tenants, and we find that we're able to generate quite a bit of good success given the tough market. I mean, I won't kid myself, it's still tough, but we're finding some success in that market. In the peripheral markets, we're holding our own. We're doing quite well. Rents are not coming off too terribly much, and we are holding our own and getting new activity. Seeing new activity. Awesome. That's That's perfect. That's great. Then just last one for me before I hand it back. Maybe just on acquisitions. You made a comment in your release about kind of renewed market stability and improved business conditions. Just curious if you have any general observations on what you're seeing in the market. Then maybe secondly, just given the sharp rise that we've seen in yields, are you seeing any movement with respect to vendor expectations on sales price and the like? That second question is a loaded one. Not yet. I sure don't. The vendor expectations are, if anything, in certain product, they seem to be still sort of cap rates or downward pressure. I think all the pundits would suggest that with what's happening with interest rates, that those yields could possibly be going up later in the year. What was your first question again? I can't remember. They were tough questions, those ones. No. Just general observations, kind of what you're seeing in the market. That was certainly helpful. Okay. Thank you. Appreciate it, Andrew. Once again, if you have a question, please press star then one. The next question comes from Kyle Stanley with Desjardins. Please go ahead. Thanks. Morning, everyone. Morning, Kyle. Hi, Kyle. You've already dealt with about, you know, 138,000 sq ft of your 309,000 sq ft maturing in 2022. I'm just, you know, looking to get your thoughts on, you know, the balance of those maturities, obviously more specifically focused on Edmonton. You know, what's left in Edmonton office. Then, you know, you mentioned in your prepared remarks that you're encouraged by the activity in the market. I'm just wondering, are you seeing tenants? You know, are they looking to take longer terms or, you know, are we still seeing maybe kind of shorter, kind of kick the can down the road terms to see what things look like in the near term? Or, you know, just, I guess, general leasing thoughts. A combination, Kyle. I would say that well, I'm just thinking about the deals we currently are negotiating now or have on the go. I would say that they're looking for longer terms, which is encouraging to me because maybe the tenants are seeing that we might be at or close to the bottom of the rental rate slide, and they're wanting to take advantage of that, and they're probably feeling more comfortable about their own businesses. I would say the tenants are looking for longer terms. Okay, that's good to know. Could you remind me how much of your remaining maturities in 2022 are related to Edmonton office? Not the vast majority of them, that's for sure. They're like, there's no big vacancies that we're struggling with that are gonna, if we don't happen to successfully renew them, that are gonna move the needle. They're spread out pretty much throughout the portfolio. Okay, great. Maybe just taking a higher level view of the REIT for a second. I mean, you know, you've dealt with volatility, I guess now over a number of years, and it does sound like your commentary is more optimistic at the moment, just given what you're seeing. I'm just wondering, can you maybe walk through what the REIT's operational goals now are for 2022 and maybe going forward? Well, obviously there's some things we can't talk about. Just business as usual, Kyle. I mean, if you take a look back at it, the real stress that was put on the Alberta economy really started back in 2014. Melcor REIT has been sort of, you know, in a pretty good fist fight all the, you know, up until now. Like, I think we've proven our method of operation and our approach to running a real estate portfolio is succeeding. We're just gonna keep the same thing, keep the tenants happy, keep them renewed, keep our costs down, keep the buildings clean, take care of tenant concerns, just keep going the same way we've been doing it. Okay, great. Just a few kind of modeling-related questions. Was there any bad debt or non-recurring items in NOI this quarter? Not significantly, no. Okay. Pretty clean, good run rate. That makes sense. I guess just looking at your debt maturity profile right at the moment, you know, have you been able to forward lock anything? I think, you know, you mentioned in your disclosure around a 3.5% interest rate on the mortgages that are maturing in the next 12 months. I think based on market rates that we're seeing, there's probably maybe upwards of 100 basis points higher on kind of new refinancing. Is that in line with what you're thinking? Yes. We've secured almost all of the upcoming, all of 2022 financing, short of maybe one that we're working on, and they're all approximately 100-120 higher on renewal than the expiring. That's for 2022. Looking out to 2023, you know, we're starting to look at those as well. Interestingly enough, almost every single mortgage maturing in 2023 and 2024 are coming off ten-year rates. In an interesting way, the 10-year rates that are expiring aren't far off from the five-year rates that are, you know, in the market today. Depending on how those get refinanced, we might not see as much of that, you know, full 1% increase, but that's, you know, a little bit further out. Okay, great. I guess just with, you know, how are you thinking about that Class C maturity? How will that be managed? The Class C is slated to be a renewal. Okay. Yeah. That's it for me. I'll turn it back. Thanks, everyone. The next question comes from Jenny Ma with BMO Capital Markets. Please go ahead. Hi, good morning. Morning, Jenny. Hi, Jenny. I had a quick question actually on the Class Cs, because you've got one piece. Now, granted, it's small, but it's coming off, you know, 1.75%. That's gonna be, you know, I think hard to find. Can you remind us on the Class Cs, when you renew them, is there a formulaic approach to determining the rate or is it more or less going to be, you know, market-driven? Like how should we think about how those Class Cs renew in terms of rate? Yeah, it is market-driven. That CAD 1.75 has been renewed at CAD 2.94. Oh, okay. So. That's very helpful. Yeah. Okay. You're still getting a bit of a, I guess, an advantage in renewals? No. Oh, sorry, Jenny. Was it partly? It's a one year, so it's a bit of an overall position. Oh, gotcha. Okay. I think the rate's not super indicative because it's a one-year rate. Oh, it's a one-year rate. Okay. Understood. Is it formula driven or is there some element of negotiation to it? It's directly with the inherent lender. Right. like Melcor pulls the debt with the lender, it's the rate that Melcor gets from the lender, and we pass it on to the REIT. Oh, okay. Understood. That's very helpful. Yeah. Remind me what the timing on the Class Cs is for 2022? I believe it. When it rolls over. May. Like it's right now. May? Yeah. Now. Okay. Okay, great. All right. That's all for me. Thank you. Yeah. This concludes the question and answer session. I would like to turn the conference back over to Mr. Melton for any closing remarks. Thanks again, Cha. I guess I'd firstly like to say I just wanted to thank everybody on the call for your continued support. Without you, I mean, we really need the support and the help, so it's very much appreciated. Thank you for your questions. Those were tougher questions than normally come at us. I hope that's a good sign. In closing, I would like to thank our leasing and operations and property management teams for working tirelessly to attract and retain the best tenants for our properties. It's really been working so far this year. I'd also like to extend my gratitude to our great finance and administration and HR communications and IT teams for making everything possible and behind the scenes. We're one month into the next quarter. We're looking forward to reporting the continued positive results, and look forward to talking to you in the next quarter. Thanks again for the call, and have a wonderful, great weekend. This concludes today's conference call. You may disconnect your lines. Thank you for participating, and have a pleasant day.