Crombie Real Estate Investment Trust (CRR.UN) investor relations material

Executive summary

• Q1 2026 results showed disciplined execution of a necessity-based, grocery-anchored strategy, with property revenue up 3.6% year-over-year to $127.1 million and commercial same-asset property cash NOI up 3.7%.

• Committed occupancy reached 97.6%, with robust leasing activity and 83.6% of annual minimum rent from necessity-based retailers.

• Portfolio expanded through strategic acquisitions, including two retail-related industrial properties totaling 539,000 sq. ft. for $129.8 million and a 29,000 sq. ft. grocery property in Surrey, BC.

• Modernization investments and development progress, notably at The Marlstone in Halifax, contributed to value creation and initial occupancy.

• Annual distribution increased for the second consecutive year, up 1.11% to $0.91 per unit, reflecting platform stability and financial strength.

Financial highlights

• FFO per unit grew 6.5% year-over-year to $0.33; AFFO per unit rose 7.4% to $0.29; property revenue reached $127.1 million.

• Commercial same-asset property cash NOI reached $84.3 million, up 3.7% year-over-year.

• Operating income attributable to unitholders increased 12.2% to $27.8 million.

• FFO payout ratio improved to 68.4%; AFFO payout ratio to 77.6%.

• Available liquidity at quarter-end was $536.3 million.

Outlook and guidance

• Management maintains a long-term same-asset NOI growth target of 2%-3%, with current trends potentially exceeding the upper end for 2026.

• Modernization investments of $6.4 million in Q1 2026 are expected to yield 6-7% returns.

• Major development pipeline could add 10.7 million sq. ft. and approximately 11,600 residential units, with several projects advancing.

• The Marlstone is expected to be dilutive to FFO in 2026, turning accretive in the back half of 2027 as occupancy stabilizes.

• Double-digit blended renewal spreads are expected to continue in the short to medium term.