2026 Q3 Management Discussion & Analysis

For the three and nine months ended September 30, 2026

November 5, 2026

BASIS OF PRESENTATION 1

FORWARD LOOKING STATEMENTS 1

NON-IFRS FINANCIAL MEASURES 1

BUSINESS OVERVIEW AND STRATEGY 4

FINANCIAL AND OPERATING HIGHLIGHTS 5

OUTLOOK 9

ACQUISITIONS, DISPOSITIONS AND ASSETS HELD FOR SALE 10

DEVELOPMENT AND EXPANSION 11

PORTFOLIO OVERVIEW 13

PORTFOLIO VALUE BY ASSET CLASS AND PER SQUARE FOOT 17

INDUSTRIAL LEASING ACTIVITY 19

OCCUPANCY RATE CONTINUITY 20

RENTAL RATES 21

LEASE EXPIRIES 22

PROPERTY COMPOSITION DIVERSITY 23

TOP TEN TENANTS 24

SUMMARY OF RESULTS 25

GENERAL AND ADMINISTRATIVE EXPENSE 28

ADJUSTED EBITDA 29

NAV per unit 30

ADJUSTED NET DEBT 31

SUMMARY OF QUARTERLY RESULTS 32

SAME PROPERTY RESULTS 35

FUNDS FROM OPERATIONS AND ADJUSTED FUNDS FROM OPERATIONS 36

AFFO CAPITAL RESERVE 39

FINANCIAL CONDITION, LIQUIDITY AND CAPITAL RESOURCES 40

MORTGAGES PAYABLE 42

UNSECURED DEBENTURES 42

CREDIT FACILITIES 43

OUTSTANDING UNIT DATA 46

DISTRIBUTIONS 47

MATERIAL ACCOUNTING POLICIES AND ACCOUNTING ESTIMATES 48

NEW ACCOUNTING POLICIES AND STANDARDS ADOPTED BY THE REIT 48

FUTURE ACCOUNTING STANDARDS NOT YET ADOPTED 49

FINANCIAL INSTRUMENTS, RISKS AND UNCERTAINTIES 51

COMMITMENTS AND CONTINGENT OBLIGATIONS 54

RELATED PARTY TRANSACTIONS 55

SUBSEQUENT EVENTS 56

The following management's discussion and analysis ("MD&A") of Nexus Industrial REIT ("the REIT") for the three and nine months ended September 30, 2026 should be read in conjunction with the REIT's audited consolidated financial statements for the years ended December 31, 2025 and 2024 and the unaudited condensed consolidated interim financial statements for the three and nine months ended September 30, 2026.

The information contained in this MD&A reflects events up to November 5, 2026, the date on which this MD&A was approved by the REIT's Board of Trustees. Financial data included in the tables of this MD&A is presented in thousands of Canadian dollars, except per unit amounts and as otherwise indicated, which is the functional currency of the REIT, and has been prepared in accordance with International Financial Reporting Standards as issued by the International Accounting Standards Board ("IFRS Accounting Standards" or "IFRS"). Additional information about the REIT can be accessed at www.sedarplus.ca.

Certain statements contained in this MD&A constitute forward-looking statements which reflect the REIT's current expectations and projections about future results. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "estimates", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the REIT to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including but not limited to: real property ownership and tenant risk, government regulation and environmental matters, economic environment, inflation risk, competition risk, uninsured losses, fixed costs and increased expenses, development risks, including risks associated with data infrastructure opportunities, joint ventures/ co-investment risks, access to capital and reliance on external sources of capital, derivatives risks, tax-related risks, financing risk, credit risk, liquidity risk, foreign exchange risk, and interest rate risk. These risks are more fully discussed under Financial Instruments, Risks and Uncertainties in this MD&A. Actual results and developments are likely to differ, and may differ materially, from those expressed or implied by the forward-looking statements contained in this MD&A. Such forward-looking statements are based on a number of assumptions that may prove to be incorrect.

While the REIT anticipates that subsequent events and developments may cause its views to change, the REIT specifically disclaims any obligation to update these forward-looking statements except as required by applicable law. These forward-looking statements should not be relied upon as representing the REIT's views as of any date subsequent to the date of this MD&A. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements. Accordingly, readers should not place undue reliance on forward-looking statements. The factors identified above are not intended to represent a complete list of the factors that could affect the REIT.

Net operating income ("NOI") and same property NOI ("Same Property NOI") are measures of operating performance based on income generated from the properties of the REIT. Management considers these non-IFRS financial measures to be important measures of the REIT's operating performance. Funds from operations ("FFO") and normalized FFO are a measure of operating performance based on the funds generated from the business of the REIT before reinvestment or provision for other capital needs. Management considers this non-IFRS financial measure to be an important measure of the REIT's operating performance. Management considers adjusted funds from operations ("AFFO") and normalized AFFO, non-IFRS financial measures, to be important performance measures of recurring economic earnings. Total

Indebtedness Ratio and Adjusted debt to Adjusted EBITDA are capital management measures. Management believes these measures are useful in evaluating its degree of financial leverage, borrowing capacity and the relative strength of the REIT's balance sheet. Net asset value ("NAV") represents the REIT's total assets less its total liabilities, excluding Class B LP Units, which are accounted for as a liability but are considered as equity by the REIT. NAV per unit represents NAV divided by the number of REIT Units and Class B LP Units outstanding. Management considers NAV per unit, a non-IFRS financial measure, to be an important measure of the REIT's underlying value.

NOI is used by industry analysts, investors and management to measure operating performance of Canadian real estate investment trusts. NOI represents property revenues less property operating expenses as presented in the consolidated statements of income and comprehensive income prepared in accordance with IFRS. Accordingly, NOI is equivalent to net rental income as presented in the consolidated statements of income and comprehensive income. NOI excludes certain expenses included in the determination of net income such as general and administrative expense, fair value adjustments, income (loss) from equity accounted investment in joint venture, loss on disposal of investment properties, unrealized foreign exchange gain (loss), other income, net interest expense and distributions on Class B LP Units.

Same Property NOI is defined as NOI generated from the REIT's portfolio of investment properties which were owned by the REIT throughout an entire reporting period in both the current and comparative periods. Same Property NOI excludes amortization of straight-line rent, tenant improvements and leasing costs, and termination fees and other non-recurring items. Management considers Same Property NOI to be an important measure of operating performance of the REIT's properties.

Industrial Same Property NOI is defined as NOI generated from industrial properties which were owned by the REIT throughout an entire reporting period in both the current and comparative periods. Industrial Same Property NOI excludes amortization of straight-line rent, tenant improvements and leasing costs, and termination fees and other non-recurring items. Industrial Same Property NOI includes vendor rent obligation amounts which are payable from vendors of properties until the construction of the properties is complete and all tenants are occupying and paying rent. Management considers Industrial Same Property NOI to be an important measure of operating performance of the REIT's industrial properties.

FFO is defined as net income in accordance with IFRS, excluding gains or losses on sales of investment properties, fair value adjustments of investment properties, incentive units and derivative financial instruments, fair value adjustments and other effects of redeemable units classified as liabilities and the Class B LP Units, if any, amortization of right-of-use assets, lease principal payments, and amortization of tenant improvements and leasing costs. FFO also includes adjustments in respect of equity accounted entities for the preceding items. Normalized FFO is defined as FFO, net of adjustments for unique or non-recurring items that are not considered representative of ongoing operational activities of the REIT and certain items where the economic impact of the transactions will be reflected in earnings in future periods.

AFFO is defined as FFO subject to certain adjustments, including differences resulting from recognizing ground lease payments and rental income on a straight-line basis, and reserves for normalized maintenance capital expenditures, tenant improvements and leasing costs. Normalized AFFO is defined as AFFO, net of adjustments for unique or non-recurring items that are not considered representative of ongoing operational activities of the REIT and certain items where the economic impact of the transactions will be reflected in earnings in future periods.

The diluted weighted average number of Units (the sum of both REIT units and Class B LP units are referred to as "Units") used to calculate diluted FFO per Unit and diluted AFFO per Unit reflects conversion of all dilutive potential units, represented by incentive units.

Normalized FFO and Normalized AFFO are considered by management to be important measures which adjust FFO and AFFO, respectively, to exclude the impact of unique or non-recurring items.

AFFO payout ratio, and Normalized AFFO payout ratio are calculated as total distributions declared during the period (including distributions declared on Class B LP Units) divided by AFFO, and Normalized AFFO, respectively. Management considers Normalized AFFO payout ratio to be an important measure of distribution sustainability.

The REIT calculates FFO and AFFO in accordance with the white paper issued by the Real Property Association of Canada dated January 2022.

Total Indebtedness Ratio is defined as Total Indebtedness, less unrestricted cash, divided by the REIT's total assets. The REIT's calculation of Total Indebtedness includes mortgages payable, the credit facilities, unsecured debentures and lease liabilities at their carrying values in the REIT's consolidated statement of financial position.

Net debt is calculated as the sum of current and non-current mortgages payable, the credit facilities, unsecured debentures and lease liabilities at their carrying values in the REIT's consolidated statement of financial position less cash. Management considers Net debt a useful measure for evaluating debt levels for the REIT's investment property portfolio.

Adjusted net debt is calculated as net debt excluding certain capital additions to properties under development from the inception of development for any properties that remain under development as at the end of the respective reporting period. This adjustment is intended to isolate the debt associated with the REIT's income-producing property portfolio by removing the temporary financing of ongoing development projects. Management believes this measure provides a clearer and more comparable view of leverage sustainability against the REIT's stabilized, income-generating assets and is therefore a key metric in assessing financial flexibility and capital allocation decisions.

Adjusted EBITDA is derived from net income, adjusted to exclude interest expense, income taxes, depreciation, and amortization (including amortization of straight line rent, tenant improvements and leasing commissions). Additionally, it excludes losses on the disposal of investment properties, unrealized foreign exchange gains or losses and fair value gains or losses related to investment properties, Class B LP Units, derivative financial instruments, other investments, incentive units and adjustments related to equity-accounted joint ventures. Further adjustments are made for non-recurring and non-cash items, such as development income, non-recurring personnel transition costs, and non-recurring adjustments related to dispositions. Adjusted EBITDA is determined on a last twelve months (LTM) basis, providing a trailing view of performance. The closest IFRS-compliant measure to Adjusted EBITDA is net income and comprehensive income. Management considers Adjusted EBITDA a valuable metric for assessing the REIT's capacity to service its debt, fund capital expenditures, and distribute returns to unitholders. It also provides investors with a clearer perspective on operating performance by excluding non-cash items and one-time factors.

NOI, Same Property NOI, Industrial Same Property NOI, FFO, Normalized FFO, AFFO, Normalized AFFO, AFFO payout ratio, Normalized AFFO payout ratio, Total Indebtedness Ratio, Net debt, Adjusted net debt, Adjusted EBITDA, and NAV are measures not defined by IFRS, do not have standardized meanings prescribed by IFRS and should not be construed as alternatives to net income, cash generated by operating activities or other measures of financial performance calculated in accordance with IFRS. Refer to Summary of Results, Same Property Results, and Funds From Operations and Adjusted Funds From Operations for reconciliations of these Non-IFRS Financial Measures to most directly comparable IFRS measures. NOI, Same Property NOI, Industrial Same Property NOI, FFO, Normalized FFO, AFFO, Normalized AFFO, AFFO payout ratio, Normalized AFFO payout ratio, Total Indebtedness Ratio, Net debt, Adjusted net debt, Adjusted EBITDA and NAV as computed by the REIT may differ from similar measures as reported by other trusts or companies in similar or different industries.

Nexus Industrial REIT is an unincorporated, open-ended real estate investment trust governed by the laws of the Province of Ontario pursuant to an amended and restated declaration of trust dated March 7, 2022. The REIT owns and operates commercial real estate properties with a focus on industrial assets across Canada.

The strategy of the REIT is to grow as a Canada-focused industrial REIT through acquiring and developing industrial real estate assets located in primary and secondary markets in Canada that are expected to be accretive, on a per unit basis, to the AFFO of the REIT, or where there are opportunities to purchase high-quality, well-located assets that will enhance the overall quality of the REIT's portfolio of properties. The REIT seeks to identify potential acquisitions using investment criteria that focus on the security of cash flow, potential for capital appreciation, and potential for increasing value through management of the assets being acquired or development opportunities.

In early 2025, the REIT transitioned from a diversified REIT to a pure-play industrial REIT. Over the past two years, the REIT has sold 15 of its 16 retail properties and 11 office buildings, and now earns roughly 99% of its NOI from its industrial portfolio.

The REIT's industrial properties are 97% occupied as at September 30, 2026, by a roster of high-quality tenants including household names that are of institutional quality. The tenants are primarily Canadian distribution centres and third-party logistics; the REIT has fewer manufacturing and export-driven tenants. This, coupled with the REIT's long weighted average lease term of 6.6 years, embedded rent steps and large lease mark-to-market, has helped to insulate the REIT from some of the geopolitical turmoil that has impacted the Canadian real estate sector.

The REIT has a development pipeline of projects. Notable advancement in the nine months ended September 30, 2026 is as follows:

• 1751 Savage Road, Richmond, BC: to optimize returns, the REIT transitioned the project from additional tennis courts to include discrete micro-industrial units that may be used individually or on a combined basis as data centres. During the second quarter of this year, permitting was completed and construction commenced. During the third quarter of this year, the foundation was poured and progress was made with respect to framing of the micro-industrial units. The REIT incurred aggregate development expenditures of $13.2 million during the nine months ended September 30, 2026 for this project.

• 555 Adams Road, the planning phase has been completed and the construction permit application has been submitted for review. The REIT plans to construct micro-industrial units that may be used individually or on a combined basis as data centres. The REIT incurred aggregate development expenditures of $9.5 million during the nine months ended September 30, 2026 for this project.

• Four other development projects are in early planning stages. See further details in the Development and Expansion section below.

• Strong Industrial occupancy(1) of 97%, in line with June 30, 2026.

• Normalized AFFO payout ratio(2) improved by 1,130 basis points to 95.6% versus a year ago.

• Completed renewals of 225,480 sq. ft. at an average spread of 29% over expiring and in-place rents.

• Sold an industrial property located in Red Deer, AB for a price of $11.3 million.

• Advanced the Richmond micro-industrial and data infrastructure development project.

• Net income of $31.9 million driven by NOI(2) of $34.7 million, and fair value adjustments (gains) of $18.1 million, partially offset by finance expense of $17.4 million, general and administrative expense of $2.1 million, and loss from equity accounted investment of $1.1 million.

• NOI(2) increased by 7.8% versus a year ago to $34.7 million primarily driven by growth in Same Property NOI, incremental NOI from completed developments and newly acquired industrial properties.

• Industrial Same Property NOI(2) increased 4.2% versus a year ago to $31.5 million driven by higher occupancy and market lift on renewals.

• Normalized FFO(2) per unit increased $0.013 versus a year ago to $0.194 and Normalized AFFO(2) per unit increased $0.020 versus a year ago to $0.166.

• Issued $300.0 million, 4.563%, 3.5 year Series C senior unsecured debentures and used the proceeds to repay existing indebtedness.

  The following summarizes financial highlights for the nine months ended September 30, 2026:

• Industrial occupancy(1) improved to 97% from 96% at December 31, 2025.

• Normalized AFFO payout ratio(2) improved by 570 basis points to 98.0% versus a year ago.

• Completed renewals of 646,573 sq. ft. at an average spread of 11% over expiring and in-place rents.

• Sold an industrial property located in Red Deer, AB for a price of $11.3 million.

• Sold an industrial property located in Calgary, AB for a price of $8.5 million.

• Sold 80% interest in development land located in Hamilton, ON for a price of $14.1 million.

• Transitioned the development projects in Richmond and Kelowna to include an option for data infrastructure use.

• Net income of $51.2 million driven by NOI(2) of $102.6 million, and fair value adjustments (gains) of $10.5 million, partially offset by finance expense of $53.5 million, general and administrative expense of $6.8 million, and loss from equity accounted investment of $1.0 million.

• NOI(2) increased by 6.4% versus a year ago to $102.6 million primarily driven by growth in Same Property NOI, incremental NOI from completed developments and newly acquired industrial properties.

• Industrial Same Property NOI(2) increased 3.2% versus a year ago to $91.0 million principally due to higher occupancy and market lift on renewals.

• Normalized FFO(2) per unit increased $0.004 versus a year ago to $0.560 and Normalized AFFO(2) per unit increased $0.022 versus a year ago to $0.481.

• Unitholders' equity increased by $36.4 million to $1.1 billion or $15.07 per unit. NAV per unit(2) of $13.24 increased $0.02 or 0.2% versus December 31, 2025.

• Issued $300.0 million, 4.236%, 3 year Series A senior unsecured debentures and $200.0 million, 4.641%, 5 year Series B senior unsecured debentures in April 2026, and $300.0 million, 4.563%, 3.5 year Series C senior unsecured debentures in September 2026, and used the proceeds to repay existing indebtedness.

• Unencumbered investment properties as a percentage of total investment properties improved to a high of 59.2% representing $1.5 billion of total unencumbered assets, as compared to 49.7% and $1.3 billion of total unencumbered assets as at December 31, 2025, respectively.

1. In-place and committed.

2. This is a Non-IFRS Financial Measure. Refer to Non-IFRS Financial Measures for definitions of these measures and Summary of Results for a reconciliation of these measures to standardized IFRS measures.

On October 1, 2026, the REIT completed the sale of excess land located in Blackfalds, Alberta for a price of

$2.5 million.

In October 2026, a secured credit facility of $20.5 million ($16.4 million at the REIT's ownership) relating to a co-owned property in which the REIT has an 80% interest was extended from its previous maturity date of November 30, 2026 to August 31, 2027. The REIT has provided a guarantee up to $10.2 million of the facility.

(In thousands of Canadian dollars, except per unit amounts)

Nine months ended September 30,

FFO (1) 18,875 17,309 53,525 52,509

(1) This is a Non-IFRS Financial Measure. Refer to Non-IFRS Financial Measures for definitions of these measures.

(2) Includes distributions payable to holders of Class B LP Units which are accounted for as finance expense in the consolidated financial statements.

(3) Weighted average number of units includes Class B LP Units.

(1) This is a Non-IFRS Financial Measure. Refer to Non-IFRS Financial Measures for definitions of these measures.

(2) Includes three properties and one land parcel (four properties - December 31, 2025) classified as assets held for sale.

(3) Includes committed new leases for future occupancy.

(4) Includes Class B LP Units.

The REIT is focused on delivering total unitholder return through profitable long-term growth, and by pursuing its strategy as a Canada-focused pure-play industrial REIT.

For 2026, the REIT now anticipates Same Property NOI(1) growth of between 3% to 4% in its industrial portfolio as compared to mid-single digit growth disclosed in the previous quarter. The decrease is principally due to a planned opportunistic sale of an investment property located in Calgary, AB, which was previously planned to be leased by Q3 2026, and changes in timing of leasing at two of the REIT's properties in London and Calgary. The expected Same Property NOI(1) growth in the industrial portfolio is primarily attributed to the lease-up of vacant space and releasing space at market rents that exceed expiring rents, thereby continuing to benefit from positive spreads between market rental rates and the REIT's in-place rental rates.

In 2026, the REIT expects to benefit from:

• the 325,000 sq. ft. expansion project at St. Thomas, ON for an existing tenant that was completed in Q3 2025, which is contributing $4.9 million in annual stabilized NOI(1), representing a contractual going-in yield of 9.0% on total development costs of $55.1 million,

• the 115,000 sq. ft. small-bay industrial building that was constructed in Q3 2025 adjacent to an existing building that the REIT owns in Calgary, AB, which, once stabilized, is expected to earn a yield of 11.0% on total development costs of $14.8 million, and

• the acquisition of two industrial properties in Montreal and Longueuil, QC in November 2025 totalling 282,721 sq. ft., that are expected to contribute $2.6 million in annual stabilized NOI(1), representing a going-in yield of 6.6% on the purchase price of $40.1 million.

The normalized AFFO payout ratio(1) for the three and nine months ended September 30, 2026 was 95.6% and 98.0%, respectively. The REIT believes that the current distributions are sustainable, and anticipates the normalized AFFO payout ratio(1) to average below 100% for the full fiscal year in 2026.

(1) This is a Non-IFRS Financial Measure. Refer to Non-IFRS Financial Measures for definitions of these measures.

There were no acquisitions of income producing properties completed during the nine months ended September 30, 2026.

On August 11, 2026, the REIT sold an industrial property located in Red Deer, AB for a price of $11.3 million. The property was previously classified as an asset held for sale. Net of closing costs and working capital adjustments of $0.3 million, the REIT received cash proceeds of $11.0 million.

On June 22, 2026, the REIT completed the sale of its 80% interest in development land located in Hamilton, ON for a price of $14.1 million. Net of closing costs and working capital adjustments of $0.05 million, the REIT received cash proceeds of $14.2 million. See also Related Party Transactions section in this MD&A.

On February 20, 2026, the REIT sold an industrial property located in Calgary, AB for a price of $8.5 million. The property was previously classified as an asset held for sale. Net of closing costs and working capital adjustments of $0.4 million, the REIT received cash proceeds of $8.1 million.

As part of its capital-recycling program, the REIT intends to sell three investment properties located in Hamilton, ON, Anjou, QC, and Calgary, AB, and surplus land in Blackfalds, AB, with a combined carrying value of $54.3 million as at September 30, 2026. These properties are being marketed for sale, or are in various stages of the contractual agreement process.

During the nine months ended September 30, 2026, the REIT incurred $23.0 million of costs relating to development projects (year ended December 31, 2025 - $23.3 million).

The following table provides development project details that are either currently underway or in the planning stage as at September 30, 2026.

(in millions of Canadian dollars)

Property location Type of project

Additional GLA at the REIT's share (square feet)

Costs incurred to date

Total estimated costs

(1) Total estimated costs and costs incurred to date exclude the value of a land parcel transferred from income producing property for this development in the amount of $6.1 million. Total estimated costs are further described in the "Commitments and Contingent Obligations" section.

(2) Total estimated costs and costs incurred to date exclude the value of a land parcel acquired in the amount of $18.8 million.

The following table provides development project details that were completed during the year ended December 31, 2025.

(in millions of Canadian dollars)

Additional GLA at the REIT's share

Estimated unlevered

(1) Represents the estimated return on cost calculated as the expected NOI divided by the total construction cost, excluding any debt used for development.

The REIT is pursuing a sub strategy within its portfolio of investment properties to develop infrastructure based projects where such investments meet the REIT's investment objectives and disciplined approach to capital allocation. Management has identified and believes that 1751 Savage Rd, Richmond and 555 Adams Rd, Kelowna, have the existing electrical infrastructure, available power capacity and strategic locations that may provide a competitive advantage in pursuing possible digital infrastructure opportunities.

The REIT has entered into a development and profit sharing agreement (the "Profit Sharing Agreement") with Studio Events Ltd., a tenant, that enables the REIT to earn income from its tenant's data operations. The Profit Sharing Agreement creates a conditional exclusive platform for Studio Events Ltd. and its affiliated companies, to construct and develop data infrastructure projects across all of the REIT's investment property portfolio, at properties that are owned 100% by the REIT, whereby the REIT funds and owns the approved infrastructure. Data revenues are first used to fund operating costs, after which the REIT earns a prescribed return and rents, and then the residual net operating profits are split equally with Studio Events Ltd.

At 1751 Savage Road, the REIT is developing an additional tennis court and micro-industrial units that may be used individually or combined as data infrastructure, referred to as "vaults". These vaults are designed to accommodate data operations, micro-industrial activities or storage. Vaults fitted for data operations are designed with dedicated power, backup power and cooling systems, providing customers with separately secured space for their equipment. Customers may occupy one or more vault.

The REIT anticipates development costs of $41.3 million and additional data infrastructure and fixturing costs of $19.0 million, for a combined investment of $60.3 million, at the 1751 Savage Road site. The planned data operations are for an aggregate gross electrical capacity of 9.9 MW across the site. The property currently has 2.1 MW of electrical capacity available for use, with conditional BC Hydro approval to increase capacity to

6.6.MW and then further to 9.9 MW. The REIT expects the project to generate attractive returns and meaningful value creation for unitholders.

If market conditions or other circumstances prevent continued operation of a data business at the property, the completed units will instead be used for micro-industrial or storage purposes, with an expected stabilized blended return comparable to the property's current return. During the quarter, foundations were poured and framing was initiated. The REIT incurred development expenditures of $9.2 million during the quarter ended September 30, 2026 for this project.

At 555 Adams Road, the REIT is developing micro-industrial units which may also be used individually or combined as data infrastructure. The REIT anticipates no change in the total development costs of $47.3 million and to generate a minimum unlevered return on investment of 6.0%, with potential for higher returns and additional development costs if the units are used as data infrastructure. The planning phase has been completed and the construction permit application has been submitted for review. The REIT incurred development expenditures of $4.3 million during the quarter ended September 30, 2026 for this project.

The REIT's views and estimates regarding data infrastructure opportunities constitute forward looking information. See also Forward Looking Statements section in this MD&A discussion of risks and uncertainties.

As at September 30, 2026, the REIT owns a portfolio of 86 properties (including three investment properties held for sale) comprising approximately 12.1 million square feet of gross leasable area at the REIT's ownership interest.

The following table summarizes the REIT's properties by asset class as at September 30, 2026:

GLA at the REIT's Share (square

1. The REIT owns a 50% interest in these properties.

2. Property is accounted for as an equity investment in joint venture.

3. The REIT also holds a 22% interest in a limited partnership that owns a development property (844 Glancaster Rd, Hamilton). The interest in the limited partnership is accounted for as an investment in a financial asset.

4. The REIT owns an 80% interest in 190 Glover Road.

The following table summarizes the REIT's portfolio values by asset class and according to classification on the consolidated financial statements as at September 30, 2026:

(in thousands of Canadian dollars)

The following table summarizes the REIT's portfolio values by asset class and according to classification on the consolidated financial statements as at December 31, 2025:

(in thousands of Canadian dollars)

The value of the REIT's industrial portfolio as a percentage of total investment properties was 99.0% as at September 30, 2026, which remained unchanged as compared to December 31, 2025.

The following table summarizes the REIT's share of its industrial portfolio by dollar value, value per square foot and the weighted average cap rate as at September 30, 2026:

(in thousands of Canadian dollars)

The following table summarizes the REIT's share of its industrial portfolio by dollar value, value per square foot and the weighted average cap rate as at December 31, 2025:

(in thousands of Canadian dollars)

The weighted average cap rate for the industrial portfolio was 5.95% as at September 30, 2026, as compared to 5.87% at December 31, 2025. The 8-basis point increase (expansion) in cap rates reflects changes in the Canadian industrial market. As part of the REIT's quarterly revaluation of its investment property portfolio, the REIT evaluates changes in cap rate assumptions stemming from market movement across the Canadian industrial landscape. As part of this exercise, the REIT considers the impact from national cap rate surveys published by Canadian accredited appraisers.

The following table summarizes rental rate growth during the three months ended September 30, 2026:

During the quarter, the REIT renewed six industrial tenants in Ontario, Quebec ranging from 3 to 7 year terms, which reflects the lease-up of space at market rental rates that are higher than expiring rents by an average of

$2.66 per square foot.

In Ontario, the increase in rental rate growth is primarily driven by an increase in the rental rate upon renewal of an investment property from $7.50 to $9.75 per square foot, with no change in GLA. In Quebec, the significant increase in rental rate growth is primarily attributed to an investment property that was re-leased at a rental rate reflecting market of $13 per square foot, as compared to expiring in-place rents of $6 per square foot.

The following table summarizes the vacant space that was leased during the three months ended September 30, 2026:

Quebec 8,947

Saskatchewan 27,306

Total 36,253

The vacant space leased in Saskatchewan relates to the lease-up of a unit at the REIT's 855 Park St, Regina, property which brings the property to 100% occupancy.

The following table summarizes rental rate growth during the nine months ended September 30, 2026:

During the nine months ended September 30, 2026, the REIT renewed 15 industrial tenants in Alberta, Ontario Quebec, and Saskatchewan ranging from 2 to 7 year terms, which reflects the lease-up of space at market rental rates that are lower than expiring rents by an average of $0.78 per square foot.

In Alberta, the significant decrease in rental rate growth is primarily attributed to an investment property that was re-leased at a rental rate reflecting market of $23 per square foot, as compared to expiring in-place rents of $58 per square foot.

The rental rate growth during the nine months ended September 30, 2026 of 11% was lower than the growth during the year ended December 31, 2025 of 60%, which was principally due to a lower spread between market rental rates and expiring space during the nine months ended September 30, 2026.

The following table summarizes the vacant space that was leased during the nine months ended September 30, 2026:

Alberta 51,749

Quebec 8,947

Saskatchewan 84,306

Total 145,002

The vacant space leased during the nine months ended September 30, 2026, excludes 189,625 square feet relating to the REIT's former investment property located at 7740 - 40 Red Deer, AB, which was disposed of during the third quarter of 2026.

The table below provides a summary of occupancy changes in the REIT's share of its industrial portfolio during the three months ended September 30, 2026:

(in square feet) Occupied Area Vacant Area Leasable Area

In-place Occupancy

Rate

(1) Relates to the disposal of 7740-40 Avenue, Red Deer, AB, during the quarter.

The table below provides a summary of occupancy changes in the REIT's share of its industrial portfolio during the nine months ended September 30, 2026:

(in square feet) Occupied Area Vacant Area Leasable Area

In-place Occupancy

Rate

The following table summarizes in-place rental rates and estimated market rental rates for the REIT's share of its industrial portfolio. Estimated market rental rates are based upon management's best estimates as at September 30, 2026.

(1) Includes an industrial property with 93,000 square feet of mezzanine space that is not included in the GLA. If included in the GLA, the weighted average in-place rental rate would be $13.24 per square foot and the estimated weighted average market rental rate would be $16.72 per square foot.

The following table summarizes in-place rental rates and estimated market rental rates for the REIT's share of its industrial portfolio as at December 31, 2025:

(1) Includes an industrial property with 93,000 square feet of mezzanine space that is not included in the GLA. If included in the GLA, the weighted average in-place rental rate would be $12.68 per square foot and the estimated weighted average market rental rate would be $16.74 per square foot.

The total spread between estimated market rental rates and in-place rental rates was 14.6% as at September 30, 2026, as compared to 18.7% at December 31, 2025. The decrease is primarily due to the REIT re-leasing space during the nine months ended September 30, 2026 at rates that approximate market rental rates.

In addition to the estimated spread between market rents and in-place rents in the REIT's industrial portfolio shown above, many of the REIT's industrial leases contain contractual rent increases throughout their terms.

The following table summarizes lease expiries for the REIT's share of its property portfolio.

The following table summarizes the REIT's top ten tenants based on the percentage of annualized base rent contributed to the REIT for the nine months ended September 30, 2026. The top ten tenants have a WALT of

7.9 years.

Tenant

% of Annualized

Base Rent WALT (years)

Nine months ended September 30,

(1) Relates to the REIT's 50% interest in Société en Commandite 2045 Stanley, the limited partnership that owns the office building located at 2039-2047 rue Stanley in Montreal. Investment in joint venture is accounted for using the equity accounting method.

Net income for the three months ended September 30, 2026 was $31.9 million or $28.4 million higher as compared to the same period in 2025, primarily due to the increase in fair value adjustments on Class B LP units and derivative financial instruments of $23.4 million and $7.2 million, respectively, and a higher NOI of

$2.5 million mainly due to higher Same Property NOI and NOI generated from recently completed acquisitions and developments, partially offset by a higher investment property fair value adjustment (loss) of $2.8 million, a higher loss from equity accounted investment of $1.3 million resulting from fair value adjustment (loss) recorded in the joint venture, and a higher finance expense of $0.6 million.

Net income for the nine months ended September 30, 2026 was $51.2 million or $22.3 million higher as compared to the same period in 2025, primarily due to the increase in fair value adjustments on Class B LP units and derivative financial instruments of $14.6 million and $13.0 million, respectively, and a higher NOI of

$6.2 million mainly due to higher Same Property NOI and NOI generated from recently completed acquisitions and developments, partially offset by a higher investment property fair value adjustment (loss) of $6.0 million, a higher finance expense of $3.1 million, a higher loss from equity accounted investment of $1.4 million resulting from fair value adjustment (loss) recorded in the joint venture, and a lower foreign exchange loss of

$0.8 million.

NOI for the three months ended September 30, 2026 was $34.7 million or $2.5 million higher as compared to the same period in 2025, which was primarily due to a $1.2 million increase in Same Property NOI, $1.0 million relating to completed developments and expansions, $0.7 million from acquisitions of industrial income producing properties closed subsequent to September 30, 2025, $0.3 million relating to amortization of tenant improvements and leasing costs that was ceased during the nine months ended September 30, 2026 as a result of change in application of accounting methodology, and $0.1 million higher termination fee income, partially offset by $0.6 million relating to straight-line rent adjustments and $0.2 million relating to dispositions completed since Q3 2025.

NOI for the nine months ended September 30, 2026 was $102.6 million or $6.2 million higher as compared to the same period in 2025, which was primarily due to $4.1 million relating to completed developments and expansions, $1.8 million from acquisitions of industrial income producing properties that closed subsequent to September 30, 2025, $1.8 million increase in Same Property NOI and $1.0 million relating to amortization of tenant improvements and leasing costs that was ceased during the nine months ended September 30, 2026 as a result of change in application of accounting methodology, partially offset by $1.0 million relating to dispositions completed since Q3 2025, $1.0 million relating to straight-line rent adjustments and $0.5 million lower termination fee income.

General and administrative expense for the three months ended September 30, 2026 decreased slightly by

$0.07 million as compared to the same period in 2025, which was primarily due to lower professional service fees of $0.09 million and lower public company expenses of $0.06 million, offset by higher general office expenses and other of $0.07 million. General and administrative expense for the nine months ended September 30, 2026, increased by $0.1 million as compared to the same period in 2025, which was primarily due to higher general office expenses and other of $0.2 million, offset by lower professional service fees of

$0.1 million.

The fair value adjustment on investment properties for the three months ended September 30, 2026 was a loss of $7.1 million. The REIT engaged external appraisers to value properties totaling $133.3 million during the quarter. Overall, the fair value loss recorded for the REIT's portfolio primarily consists of a $5.8 million fair value loss resulting from changes in stabilized NOI and a $1.3 million fair value loss due to adjustments to capitalization rates.

The fair value adjustment on investment properties for the nine months ended September 30, 2026 was a loss of $12.6 million. The REIT engaged external appraisers to value properties totaling $472.9 million during the nine months ended September 30, 2026. Overall, the fair value loss recorded for the REIT's portfolio primarily consists of a $34.9 million fair value loss due to adjustments to capitalization rates, and a $14.0 million fair value loss relating to investment property sale price adjustments prior to disposition, partially offset by a $36.3 million fair value gain resulting from changes in stabilized NOI.

The fair value adjustment on Class B LP Units was driven by changes in the trading price of REIT Units into which the Class B LP Units are exchangeable. The trading price of REIT Units as at September 30, 2026 was

$7.25 as compared to $8.09 as at June 30, 2026, and compared to $7.90 as at December 31, 2025. The fluctuation in the REIT's unit price from period to period resulted in an unrealized gain of $19.3 million in the three months ended September 30, 2026 (2025 - $4.2 million loss), and an unrealized gain of $14.6 million in the nine months ended September 30, 2026 (2025 - $0.1 million gain). As at September 30, 2026, 22,820,596 Class B LP Units were outstanding (December 31, 2025 - 25,270,338).

The fair value adjustment on derivative financial instruments was a $5.8 million gain and a $8.3 million gain for the three months and nine months ended September 30, 2026, respectively (2025 - $1.4 million loss and

$4.6 million loss, respectively). The gain for the three months ended September 30, 2026 was primarily due to realized gains on terminated swaps during the quarter and changes in expectations relating to interest rates when compared to prior quarter-end valuations, whereas the gain for the nine months ended September 30, 2026 was primarily influenced by the same factors noted above, which impacted the fair value of interest rate swaps. The REIT uses interest rate swaps to fix the interest rate on $109.0 million of its floating-rate mortgages.

The REIT also entered in total return swap agreements ("TRS") to manage the fair value exposure associated with its Incentive unit plans. For the nine months ended September 30, 2026, the TRS resulted in a fair value loss of $0.2 million stemming from the aforementioned decrease in the trading price of REIT Units.

The foreign exchange was $0.02 million gain and $0.1 million loss for the three and nine months ended September 30, 2026, respectively (2025 - $0.1 million loss and $0.6 million gain, respectively). The foreign exchange losses were due to foreign exchange fluctuations impacting the REIT's cross-currency swaps and a deferred purchase obligation denominated in US dollars related to the acquisition of an investment property in 2021.

Net interest expense of $13.9 million for the three months ended September 30, 2026, (2025 - $13.1 million) increased by $0.8 million compared to the same period in 2025, primarily due to higher unsecured debenture interest expense of $5.6 million resulting from new bonds issued during the period, higher amortization of deferred financing costs of $0.2 million also due to new bonds issued during the period, and lower capitalized interest of $0.5 million due to the timing of completion on development properties, offset by lower credit facility interest of $4.7 million due to the aforementioned partial repayment of the credit facility during the period and lower interest on mortgages by $0.7 million resulting from principal repayments.

Net interest expense of $42.7 million for the nine months ended September 30, 2026, (2025 - $39.2 million) increased by $3.5 million compared to the same period in 2025, primarily due to higher unsecured debenture interest expense of $10.3 million resulting from new bonds issued during the period, higher amortization of deferred financing costs of $0.5 million due to partial repayment of the credit facility and new bonds issued during the period, and lower capitalized interest of $1.6 million due to the timing of completion on development properties, offset by lower credit facility interest of $7.3 million due to the aforementioned partial repayment of the credit facility during the period and lower interest on mortgages by $1.6 million resulting from principal repayments.

General and administrative expense consists of the following:

September 30,

(In thousands of Canadian dollars) Three months ended

General and administrative expense for the three months ended September 30, 2026 decreased slightly by

$0.07 million as compared to the same period in 2025, which was primarily due to lower professional service fees of $0.09 million and lower public company expenses of $0.06 million, offset by higher general office expenses and other of $0.07 million. General and administrative expense for the nine months ended September 30, 2026, increased by $0.1 million as compared to the same period in 2025, which was primarily due to higher general office expenses and other of $0.2 million, offset by lower professional service fees of

$0.1 million.

The following table reconciles the REIT's net income to Adjusted EBITDA for the trailing twelve months ended September 30, 2026 and 2025:

(In thousands of Canadian dollars)

2026 2025 Change

1. Includes equity accounted investments adjustments.

2. Includes amortization of straight line rent, tenant improvements, and leasing commissions.

3. This is a Non-IFRS Financial Measure. Refer to Non-IFRS Financial Measures for definitions of these measures and Summary of Results for a reconciliation of these measures to standardized IFRS measures.

Adjusted EBITDA for the trailing twelve months ended September 30, 2026 was $123.8 million, an increase of

$3.3 million as compared to September 30, 2025. The increase was primarily due to a $7.1 million increase in NOI driven by strong leasing activities, improved Same Property NOI and contributions from newly acquired and developed industrial properties, partially offset by a $3.1 million decrease in income earned from a property under development in respect of a property for which construction was completed in 2025, a $0.4 million higher general and administrative expense, a $0.2 million higher amortization expense mainly due to straight-line rent and a $0.1 million lower non-recurring costs related to asset dispositions and non-recurring personnel transition costs.

NAV per unit - basic (1) 13.24 13.22

1. This is a Non-IFRS Financial Measure. Refer to Non-IFRS Financial Measures for definitions of these measures and Summary of Results for a reconciliation of these measures to standardized IFRS measures.

The REIT's NAV per unit increased $0.02 to $13.24 as at September 30, 2026, compared with December 31, 2025. Net income of $51.2 million or $0.53 per unit increased NAV, while distributions of $35.0 million or $0.36 per unit and fair value adjustments on Class B LP Units of $14.6 million or $0.15 per unit reduced NAV, resulting in a net increase of $0.02 to NAV per unit.

1. This is a Non-IFRS Financial Measure. Refer to Non-IFRS Financial Measures for definitions of these measures and Summary of Results for a reconciliation of these measures to standardized IFRS measures.

The REIT's Total Indebtedness Ratio as at September 30, 2026, was 49.0% as compared to 49.3% as at December 31, 2025. The decrease in the ratio was primarily driven by repayment of mortgages at maturity along with a higher cash balance, partially offset by the issuance of unsecured debentures, the proceeds of which were used to repay the REIT's credit facilities.

1. This is a Non-IFRS Financial Measure. Refer to Non-IFRS Financial Measures for definitions of these measures and Summary of Results for a reconciliation of these measures to standardized IFRS measures.

The REIT's Adjusted net debt as at September 30, 2026 was $1,250.5 million as compared to $1,262.2 million as at December 31, 2025. The $11.7 million decrease was primarily driven by repayment of mortgages at maturity, a higher cash balance along with a higher expenditure on properties under development, partially offset by the issuance of unsecured debentures, the proceeds of which were used to repay the REIT's credit facilities.

(In thousands of Canadian dollars, except per unit amounts)

(In thousands of Canadian dollars, except per unit amounts)

1. At the REIT's share.

2. Includes committed new leases for future occupancy.

3. This is a Non-IFRS Financial Measure. Refer to Non-IFRS Financial Measures for definitions of these measures and Summary of Results for a reconciliation of these measures to standardized IFRS measures.

4. Includes distributions payable to holders of Class B LP Units which are accounted for as finance expense in the consolidated financial statements.

5. Weighted average number of units includes Class B LP Units.

6. Note that the prior quarters have been updated to conform with the current period presentation.

The total number of investment properties decreased from Q4 2024 through to Q3 2025 which was primarily due to dispositions of non-core assets, including 15 retail properties, one office building, and three industrial assets. In Q4 2025, the increase in total number of investment properties was due to the acquisition of two income producing properties located in Montreal, QC. The number of investment properties decreased from Q1 2026 through to Q3 2026 as the REIT closed on the dispositions of two income producing properties located in Calgary, AB and Red Deer, AB, and a development lands located in Hamilton, ON.

The industrial occupancy rate - in place and committed - fell from Q4 2024 through to Q1 2026 due to temporary vacancies in the portfolio resulting in part from developments that the REIT completed and were not yet fully leased, and the CCAA filing of two tenants in March 2025. In Q2 2026 and Q3 2026, however, the industrial occupancy rate improved to 97% as a result of new leases executed during the period.

The REIT disposed a group of non-core assets noted above in transition to a pure-play industrial REIT, which, along with certain new vacancies in the portfolio, resulted in a declining trend in property revenues and NOI(1) from Q4 2024 through Q2 2025. Property revenues and NOI(1) increased since Q3 2025 as a result of completed acquisitions, developments and expansions, and realization of market lift on lease renewals.

Net income (loss) fluctuated in the periods above principally due to changes in fair market value of investment properties, Class B LP Units and derivative financial instruments.

FFO(1) and AFFO(1) decreases were principally due to the REIT carrying high debt levels and interest expense related to property acquisitions and ongoing development projects. This resulted in a normalized AFFO payout ratio(1) above 100% from Q4 2024, which began to improve as development projects were completed and tenanted during 2025 and 2026. During the period ended Q3 2026, the normalized AFFO payout ratio fell below 100% as a result of the improved NOI. The REIT expects that the normalized AFFO payout ratio to average below 100% for the full fiscal year in 2026.

Per unit amounts are impacted by the operating results discussed above and by changes in the number of units outstanding. The weighted average units outstanding were stable from Q4 2024 to Q2 2025. The increase in weighted average units outstanding from Q2 2025 to Q3 2025 reflects the issuance of units (Class B LP units) relating to the development project at Richmond, BC. The weighted average units outstanding are also impact by the issuance under incentive unit plan and employee unit purchase plan, from quarter to quarter.

All other changes in per unit amounts are driven by the operating results discussed above.

Net debt(1) increased from Q4 2024 to Q1 2026 as a result of borrowing to fund development projects and acquisitions, partially offset by cash generated by operating activities and dispositions. From Q1 2026 net debt declined from cash generated by operating activities driven by positive net operating income. The Total Indebtedness Ratio(1) decreased since Q4 2024 as the REIT completed and tenanted development projects. The Total Indebtedness Ratio(1) increased Q4 2025 through Q1 2026 due to additional draws on credit facilities for the purpose of funding investment property acquisitions and development expenditures. The ratio fell in Q2 2026 and Q3 2026 as the REIT's net debt balance decreased during the quarters.

Unencumbered investment properties as a percentage of total investment properties steadily increased from Q4 2024 to Q3 2025, primarily due to mortgages coming to term and mortgages discharged as part of property dispositions. In Q3 2025, this ratio improved significantly due to the discharge of security on 12 properties as the REIT paid down a secured credit facility. From Q4 2025 through to Q3 2026, this ratio further increased as a result of paying off mortgages upon maturity and acquisitions of investment properties. The REIT utilizes its available credit facilities as an alternative to secured financing when terms are favourable.

The value of total assets fluctuated in the quarters presented principally due to acquisitions, dispositions and fair value adjustments in connection with changes in NOI(1) and capitalization rate assumptions revalued quarterly.

Changes in total equity and NAV per unit(1) were driven by the factors noted above.

1. This is a Non-IFRS Financial Measure. Refer to Non-IFRS Financial Measures for definitions of these measures and Summary of Results for a reconciliation of these measures to standardized IFRS measures.

   ‌SAME PROPERTY RESULTS

   The following is a reconciliation of the REIT's Same Property NOI, highlighting key adjustments that impacted the REIT's core portfolio's performance.

   (In thousands of Canadian dollars)

   Three months ended September 30,

   Nine months ended September 30,

   2026 2025 Change 2026 2025 Change

   	$	$	$	$	$	$
   Property revenues	45,744	43,295	2,449	138,383	130,071	8,312
   Property expenses	(11,050)	(11,098)	48	(35,737)	(33,634)	(2,103)
   NOI(1)	34,694	32,197	2,497	102,646	96,437	6,209
   Add/(Deduct):
   Amortization of tenant improvements
   and leasing costs	-	349	(349)	-	976	(976)
   Straight-line adjustments of rent	(1,148)	(1,720)	572	(2,907)	(3,872)	965
   Development and expansion	(990)	-	(990)	(4,173)	(61)	(4,112)
   Acquisitions	(666)	-	(666)	(1,837)	-	(1,837)
   Disposals	15	(156)	171	(59)	(1,037)	978
   Lease termination fees and other non-recurring items	(81)	-	(81)	(1,750)	(2,285)	535
   Same Property NOI(1)	31,824	30,670	1,154	91,920	90,158	1,762
   Industrial Same Property NOI(1)	31,511	30,234	1,277	90,953	88,144	2,809

   1. This is a Non-IFRS Financial Measure. Refer to Non-IFRS Financial Measures for definitions of these measures.

Same Property NOI for the three and nine months ended September 30, 2026, increased by $1.2 million and

$1.8 million, respectively, as compared to the same periods in 2025, which was primarily due to higher occupancy and market lift on renewals.

Industrial Same Property NOI for the three and nine months ended September 30, 2026, increased by approximately $1.3 million and $2.8 million, respectively, as compared to the same periods in 2025, which was principally due to higher occupancy and market lift on renewals.

The following is a reconciliation of the REIT's FFO and AFFO to net income and comprehensive income.

(In thousands of Canadian dollars, except per unit amounts)

Nine months ended September 30,

Fair value adjustments

Adjustments for equity accounted joint venture (1)

Distributions on Class B LP Units expensed

(In thousands of Canadian dollars, except per unit amounts)

Nine months ended September 30,

1. Adjustment for equity accounted joint venture relates to a fair value adjustment of swaps in place at the joint venture to swap floating rate bankers' acceptance rates to a fixed rate and a fair value adjustment of the joint venture investment property.

2. Capital reserve includes maintenance capital expenditures, tenant improvements and leasing costs. Reserve amounts are established with reference to building condition reports, appraisals, and internal estimates of tenant renewal, tenant improvements and leasing costs. The REIT believes that a reserve is more appropriate given the fluctuating nature of capital expenditures.

3. Weighted average number of units includes the Class B LP Units.

4. These adjustments represent one-time balance sheet write-offs, early mortgage repayment charges, and other costs associated with the disposals made during the period.

5. The adjustments primarily relate to a one-time write-off of deferred financing costs associated with the repayment of credit facilities in April 2026, unrealized foreign exchange losses (gains) on transactions related to deferred purchase consideration, and other one-time adjustments.

6. This is a Non-IFRS Financial Measure. Refer to Non-IFRS Financial Measures for definitions of these measures.

FFO for the three months ended September 30, 2026 was $18.9 million or $1.6 million higher than the same period last year, primarily driven by a $2.5 million increase in NOI, a $0.2 million higher foreign exchange adjustment stemming from a deferred purchase obligation denominated in US dollars, a $0.1 million decrease in general and administrative expense, partially offset by a $0.8 million increase in net interest expense and a $0.4 million lower tenant improvements and leasing costs amortization adjustment. (See details in Financial Results section.)

FFO for the nine months ended September 30, 2026 was $53.5 million or $1.0 million higher than last year, primarily driven by a $6.2 million increase in NOI, partially offset by a $3.5 million increase in net interest expense, a $1.0 million lower tenant improvements and leasing costs amortization adjustment, a $0.5 million lower foreign exchange adjustment stemming from a deferred purchase obligation denominated in US dollars, a $0.1 million lower FFO from equity accounted joint venture and a $0.1 million increase in general and administrative expense. (See details in Financial Results section.)

AFFO for the three months ended September 30, 2026 was $16.1 million or $2.1 million higher than the same period last year, primarily attributable to the factors that impacted FFO as noted above, along with a lower straight-line rent and ground lease adjustment of $0.6 million.

AFFO for the nine months ended September 30, 2026 was $45.8 million or $2.0 million higher than last year, primarily attributable to the factors that impacted FFO as noted above, along with a lower straight-line rent and ground lease adjustment of $1.0 million primarily resulting from rent adjustments at a property located in Richmond, BC which was partially offset by lower straight-line rent adjustments at various properties.

The REIT continues to focus on enhancing AFFO through active asset management and the execution of its development pipeline.