Earnings release
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MORGUARD.COM FOR IMMEDIATE RELEASE MORGUARD REAL ESTATE INVESTMENT TRUST ANNOUNCES 2026 THIRD QUARTER RESULTS MISSISSAUGA, ON (October 28, 2026) – Morguard Real Estate Investment Trust (“the Trust”) (TSX: MRT.UN) today is pleased to announce its 2026 Third Quarter Results. In thousands of dollars, except per-unit amounts Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Revenue from real estate properties $60,374 $57,688 $179,054 $176,336 Net operating income 27,332 31,263 79,992 82,624 Fair value gains/(losses) on real estate properties 3,054 (10,345) (9,347) (41,914) Net income/(loss) 14,011 4,664 22,038 (8,699) Funds from operations 1 11,182 14,980 31,610 33,411 Adjusted funds from operations 1,2 2,314 6,200 5,545 7,224 Amounts presented on a per unit basis Net income/(loss) – basic $0.21 $0.07 $0.33 ($0.13) Net income/(loss) – diluted $0.18 $0.07 $0.32 ($0.13) Funds from operations – basic 1 $0.17 $0.23 $0.47 $0.51 Funds from operations – diluted 1 $0.15 $0.20 $0.43 $0.46 Adjusted funds from operations – basic 1,2 $0.03 $0.09 $0.08 $0.11 Adjusted funds from operations – diluted 1,2 $0.03 $0.09 $0.08 $0.11 1. The following represents a non-GAAP financial measure/ratio that does not have any standardized meaning prescribed by IFRS and is not necessarily comparable to similar measures presented by other reporting issuers in similar or different industries. This measure should be considered as supplemental in nature and not as substitutes for related financial information prepared in accordance with IFRS. Additional information on this non-GAAP financial measure/ratio can be found under the MD&A section Part I, "Specified Financial Measures". 2. The Trust uses normalized productive capacity maintenance expenditures to calculate adjusted funds from operations. 3. Includes the dilutive impact of convertible debentures and presented on a cash settlement basis for consistency with industry practice for calculating FFO and AFFO.
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MORGUARD.COM SELECTED FINANCIAL INFORMATION The table below sets forth selected financial data relating to the Trust's fiscal three and nine months ended September 30, 2026, and 2025. This financial data is derived from the Trust's condensed consolidated statements, which are prepared in accordance with IFRS. Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 % Change 2026 2025 % Change Revenue from real estate properties $60,374 $57,688 4.7% $179,054 $176,336 1.5% Property operating expenses (18,444) (18,247) 1.1% (56,019) (56,166) (0.3%) Property taxes (12,502) (6,199) 101.7% (36,819) (31,516) 16.8% Property management fees (2,096) (1,979) 5.9% (6,224) (6,030) 3.2% Net operating income 27,332 31,263 (12.6%) 79,992 82,624 (3.2%) Interest expense (15,896) (15,838) 0.4% (47,268) (47,835) (1.2%) General and administrative (840) (1,003) (16.3%) (2,827) (2,924) (3.3%) Other items 6 13 (53.8%) 8 36 (77.8%) Fair value gains/(losses) on real estate properties 3,054 (10,345) (129.5%) (9,347) (41,914) (77.7%) Net income from equity-accounted investment 355 574 (38.2%) 1,480 1,314 12.6% Net income/(loss) $14,011 $4,664 200.4% $22,038 ($8,699) (353.3%) CONSOLIDATED OPERATING HIGHLIGHTS The following is an analysis of net operating income by asset type: Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 % Change 2026 2025 % Change Enclosed regional centres $10,589 $14,802 (28.5%) $30,105 $33,876 (11.1%) Community strip centres 5,462 5,415 0.9% 16,348 15,947 2.5% Subtotal – retail 16,051 20,217 (20.6%) 46,453 49,823 (6.8%) Single-/dual-tenant buildings 6,776 7,343 (7.7%) 20,255 22,044 (8.1%) Multi-tenant buildings 3,651 2,736 33.4% 10,571 7,969 32.7% Subtotal – office 10,427 10,079 3.5% 30,826 30,013 2.7% Industrial 854 967 (11.7%) 2,713 2,788 (2.7%) Net operating income $27,332 $31,263 (12.6%) $79,992 $82,624 (3.2%) The Trust's retail properties NOI for the nine months ended September 30, 2026, was $46.5 million versus $49.8 million for the same period ended 2025, a decreas e of $3.3 million. The decrease was mainly the result of a one-time 2021- 2024 tax refund received in 2025 at one of the Trust's Ontario properties in the amount of $3.2 million, relating mostly to vacant space. The Trust's community strip centre portfolio had robust net operating income growth of 0.9% for the quarter and 2.5% for the year-to-date period. These assets operate at close to full occupancy, resulting in good rental growth on lease renewals over the last two years. The Trust's office properties NOI for the nine months ended September 30, 2026, was $30.8 million versus $30.0 million for the same period ende d 2025, an increase of $0.8 m illion. The favourable va riance is mainly the result of net operating income growth at Penn West Plaza in Calgary, Alberta, offset somewhat by the downsizing upon renewal of major tenants at 111 Dunsmuir and at Standard Life Centre.
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MORGUARD.COM The Trust's industrial properties NOI for the nine months ended Septembe r 30, 2026, was $2.7 million versus $2.8 million for the same period ended 2025, a decrease of $0.1 millio n. The decrease is mainly the result of increased vacancy costs of $0.3 million, offset by increases in basic rent of $0.2 million. Revenue from real estate properties includes contracted rent from tenants along with recoveries of property expenses (including property taxes). The following is an analysis of revenue from real estate properties by segment: Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 % Change 2026 2025 % Change Industrial $1,281 $1,342 (4.5%) $4,022 $4,044 (0.5%) Office – Single-/dual-tenant buildings 13,993 14,640 (4.4%) 41,296 43,337 (4.7%) Office – Multi-tenant buildings 10,427 9,628 8.3% 30,479 28,354 7.5% Retail – Community strip centres 8,649 8,409 2.9% 26,430 25,751 2.6% Retail – Enclosed regional centres 26,024 23,669 9.9% 76,827 74,850 2.6% Total $60,374 $57,688 4.7% $179,054 $176,336 1.5% The following is an analysis of revenue from real estate properties by revenue type: For the three months ended September 30, 2026 2025 Variance Rental revenue $34,980 $34,881 $99 CAM recoveries 13,457 12,680 777 Property tax and insurance recoveries 9,305 7,033 2,272 Other revenue and lease cancellation fees 1,056 1,193 (137) Parking revenue 1,458 1,436 22 Amortized rents 118 465 (347) $60,374 $57,688 $2,686 For the nine months ended September 30, 2026 2025 Variance Rental revenue $104,004 $104,666 ($662) CAM recoveries 40,389 37,582 2,807 Property tax and insurance recoveries 27,564 26,011 1,553 Other revenue and lease cancellation fees 2,994 3,030 (36) Parking revenue 4,288 4,213 75 Amortized rents (185) 834 (1,019) $179,054 $176,336 $2,718 Property operating expenses include costs related to interior and exterior maintenance, insurance and utilities. Property operating expenses for the ni ne months ended September 30, 2026, dec reased 0.3% to $56.0 million from $56.2 million for the same period in 2025. This decrease is primarily due to lower utilities expense compared to 2025. Net operating income for the nine months ended Sept ember 30, 2026, decreased 3.2% compared to 2025. This decrease resulted mainly from the one-time 2021-2024 tax refund received in 2025 at one of the Trust's Ontario properties in the amount of $3.2 million, relating mostly to vacant space. Th is change has contributed to the large increase in property tax expense in 2026, and has also had corresponding impacts on FFO and AFFO for the quarter.
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MORGUARD.COM The Trust records its income producing properties at fair value in accordance with IFRS. These adjustments are a result of the Trust's regular quarterly IFRS fair value process. In accordance with this policy, the following fair value adjustments by segment have been recorded: Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 2026 2025 Retail $4,942 ($3,811) $6,823 ($15,666) Office (1,679) (6,234) (15,011) (26,522) Industrial (209) (300) (1,159) 274 $3,054 ($10,345) ($9,347) ($41,914) Reported net income for the nine months ended September 30, 2026, was $22.0 million as compared to a loss of $8.7 million in 2025. This change is due to the change in fair value losses recorded in 2025, as described above. FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS The Trust presents FFO and AFFO in accordance with the current definition of the REALPAC. In thousands of dollars, except per unit amounts Three Months Ended September 30, Nine Months Ended September 30, 2026 2025 % Change 2026 2025 % Change Net income/(loss) $14,011 $4,664 200.4% $22,038 ($8,699) (353.3%) Adjustments: Fair value (gains)/losses on real estate properties 1 (2,803) 10,338 (127.1%) 9,646 42,176 (77.1%) Amortization of right-of-use assets 18 18 —% 54 54 —% Payment of lease liabilities, net (44) (40) 10.0% (128) (120) 6.7% Funds from operations – basic 11,182 14,980 (25.4%) 31,610 33,411 (5.4%) Interest expense on convertible debentures 2,104 2,104 —% 6,243 6,243 —% Funds from operations – diluted $13,286 $17,084 (22.2%) $37,853 $39,654 (4.5%) Funds from operations – basic $11,182 $14,980 (25.4%) $31,610 $33,411 (5.4%) Adjustments: Straight line rent adjustment 1 (118) (30) 293.3% 185 63 193.7% Normalized PCME (8,750) (8,750) —% (26,250) (26,250) —% Adjusted funds from operations – basic 2,314 6,200 (62.7%) 5,545 7,224 (23.2%) Interest expense on convertible debentures 2,104 2,104 —% 6,243 6,243 —% Adjusted funds from operations – diluted $4,418 $8,304 (46.8%) $11,788 $13,467 (12.5%) 1. Includes respective adjustments included in net income from equity-accounted investment.
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MORGUARD.COM SPECIFIED FINANCIAL MEASURES The Trust reports its financial results in accordance with International Financial Reporting Standards (“IFRS”). However, this earnings release also uses specified financial measures that are not defined by IFRS which follow the disclosure requirements established by National Instrument 52-112 Non-GAAP and Other Financial Measures Disclosure. Specified financial measures are categorized as non-GAAP financial measures, non-GAAP ratios, and other financial measures. Additional details on specified financial measures including supplementary financial measures, capital management measures and total segment measures are set out in the Trust’s Management's Discussion and Analysis for the period ended September 30, 2026 and available on the Trust’s profile on SEDAR+ at www.sedarplus.ca The following Non-GAAP financial measures do not have any standardized meaning prescribed by IFRS and are not necessarily comparable to similar measures presented by other reporting issuers in similar or different industries. These measures should be considered as supplemental in nature and not as substitutes for related financial information prepared in accordance with IFRS. The Trust’s management uses these measures to aid in assessing the Trust’s underlying core performance and provides these additional measures so that investors may do the same. Management believes that the non-GAAP financial measures, which supplement the IFRS measures, provide readers with a more comprehensive understanding of management’s perspective on the Trust’s operating results and performance. FUNDS FROM OPERATIONS ("FFO") FFO is a non-GAAP measure widely used as a real estate industry standard that supplements net income and evaluates operating performance but is not indicative of funds available to meet the Trust's cash requirements. FFO can assist with comparisons of the operating performance of the Trust's real estate between periods and relative to other real estate entities. FFO is computed by the Trust in accordance with the current definition of the Real Property Association of Canada ("REALPAC") and is defined as net income adjusted for fair value changes on real estate properties and gains/(losses) on the sale of real estate properties. The Trust considers FFO to be a useful measure for reviewing its comparative operating and financial performance. ADJUSTED FUNDS FROM OPERATIONS ("AFFO") AFFO is a non-GAAP measure that was developed to be a recurring economic earnings measure for real estate entities. The Trust presents AFFO in accordance with the current definition of the REALPAC. The Trust defines AFFO as FFO adjusted for straight-line rent and productive capacity maintenance expenditures ("PCME"). AFFO should not be interpreted as an indicator of cash generated from operating activities as it does not consider changes in working capital. FINANCIAL STATEMENTS AND MANAGEMENT’S DISCUSSION AND ANALYSIS The Trust’s Q3 2026 Consolidated Financial Statements and Management’s Discussion and Analysis will be made available on the Trust’s website at www.morguard.com and have been filed with SEDAR+ at www.sedarplus.ca Conference Call Details: Date: Thursday, October 29, 2026, 4:00 p.m. (ET) Conference Call #: 1-416-945-7677 or 1-888-699-1199 Conference ID #: 70307 About Morguard Real Estate Investment Trust The Trust is a closed-end real estate investment trust, which owns a diversified portfolio of 45 retail, office and industrial income producing properties in Canada with a book value of $2.2 billion and approximately 8.0 million square feet of leasable space. For further information, please contact: Morguard Real Estate Investment Trust Angela Sahi President and Chief Executive Officer T 905-281-4800 Andrew Tamlin Chief Financial Officer T 905-281-4800