Alaris Equity Partners Income Trust (AD-UN) investor relations material

Executive summary

• 2025 saw strong operating performance with growth in total revenue and operating income, increased net book value per unit, record capital deployment, and a payout ratio below target range.

• Net book value per unit rose by $0.52 to $25.31, driven by operational earnings and foreign exchange gains.

• Reported earnings were impacted by unrealized foreign exchange losses in 2025, but underlying operations remained solid; in Q1 2026, earnings benefited from a $20.1 million unrealized FX gain.

• Earnings from operations rose 34.8% in Q4 and 17.3% for the year, while comprehensive income was affected by FX losses and absence of a prior year one-time gain.

• Portfolio diversification remains strong, with positive momentum expected into 2026 and constructive performance across most partners.

Financial highlights

• Total revenue and operating income increased 15.9% in Q4 and 14% for 2025, and 2.7% year-over-year in Q1 2026, driven by fair value gains and higher partner distributions.

• Net book value per unit increased CAD 0.64 for 2025 and reached $25.31 in Q1 2026.

• Earnings and comprehensive income for 2025 decreased 61% to CAD 90.8 million due to FX losses and absence of a non-recurring gain, but surged 75.9% to $40.4 million in Q1 2026 due to FX gains.

• Distributable cash flow per unit decreased 16% for 2025 but increased 6.0% year-over-year to $0.71 in Q1 2026.

• Quarterly distribution was raised by 3% to $0.38 per unit in April 2026.

Outlook and guidance

• Q1 2026 total partner revenue expected at approximately CAD 46.9 million; Q2 2026 projected at $47.9 million.

• Run rate revenue for the next 12 months estimated at CAD 200 million and $203.6 million; run rate G&A at CAD 20.5 million.

• Expected payout ratio for 2026 in the 60%-65% range, supporting growth and distributions.

• Management anticipates further capital deployment and potential partner exits in the second half of 2026.

• Guidance does not include potential gains from anticipated partner monetizations.