{"success":true,"data":{"pressRelease":{"id":"13873","rtpr_id":"nBw2ZShLca","ticker":"CHP_U","exchange":"TSX","all_tickers":["CHP_U"],"title":"Choice Properties Real Estate Investment Trust Reports Results for the Three Months Ended March 31, 2026","author":"Business Wire","published_at":"2026-04-29T20:47:00.235Z","article_body":"Choice Properties Real Estate Investment Trust Reports Results for the Three\nMonths Ended March 31, 2026\n\nChoice Properties Real Estate Investment Trust (“Choice Properties” or the\n“Trust”) (TSX: CHP.UN) today announced its consolidated financial results\nfor the three months ended March 31, 2026. The First Quarter Report to\nUnitholders is available in the Investors section of the Trust’s website at\nwww.choicereit.ca\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.choicereit.ca&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.choicereit.ca&index=1&md5=bb73cde6237c0ae5e4833651280e0169)\n, and has been filed on SEDAR+ at www.sedarplus.ca\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.sedarplus.ca&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.sedarplus.ca&index=2&md5=d8aa4b6241df96e27ffaa30a76c8be67)\n.\n\n“Choice Properties started the year strong, with stable occupancy and robust\nleasing spreads. Same-Asset NOI and FFO per unit growth reflected this solid\noperating performance and the continued momentum across our portfolio,” said\nRael Diamond, President and Chief Executive Officer of the Trust. “With our\nbusiness in excellent shape and an industry‑leading balance sheet, we\nannounced a transformational acquisition subsequent to quarter end. The\npotential opportunity to add high‑quality urban retail assets will\nmeaningfully strengthen our national platform and enhance long‑term value\nfor Unitholders.”\n\n2026 First Quarter Highlights\n\n\n * Reported a net loss of $87.2 million compared to a net loss of $96.2 million\nin the prior year period.\n\n * Reported FFO((1)) per unit diluted of $0.271, representing year-over-year\ngrowth of 2.7%.\n\n * FFO((1)) per unit diluted, excluding lease surrender revenue and the reduction\nin Allied Properties REIT’s (“Allied”) distribution, increased by 3.5%\ncompared to the prior year period.\n\n * Achieved Same-Asset NOI, Cash Basis((1)) growth of 3.0% and Total NOI, Cash\nBasis((1)) growth of 4.2%.\n\n * Achieved long term renewal leasing spreads((2)) of 21.8%.\n\n * Period end occupancy remained stable at 98.1%, with Retail at 97.9%,\nIndustrial at 98.6%, and Mixed-Use & Residential at 93.8%.\n\n * Completed $28.5 million of real estate transactions on a proportionate share\nbasis((1)).\n\n * Delivered $9.3 million of development projects, adding approximately 21,900\nsquare feet of new commercial GLA on a proportionate share basis((1) )through\nretail intensifications.\n\nSubsequent Event\n\nOn April 16, 2026, the Trust announced that it entered into an agreement with\nFirst Capital Real Estate Investment Trust (“FCR”) and KingSett Capital,\non behalf of its investors (collectively, “KingSett”) pursuant to which\nKingSett and the Trust will acquire FCR in a unit and cash transaction valued\nat approximately $9.4 billion, including the assumption of certain debt (the\n“Transaction”).\n\nUpon closing of the Transaction, the Trust will acquire approximately $5.0\nbillion of FCR’s high-quality retail assets and KingSett will acquire\napproximately $4.4 billion of FCR’s assets and all of FCR’s issued and\noutstanding units.\n\nFor additional details regarding the agreement and the Transaction, refer to\nthe April 16, 2026 press release posted on the Trust’s website at\nwww.choicereit.ca/investors/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.choicereit.ca%2Finvestors%2F&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.choicereit.ca%2Finvestors%2F&index=3&md5=8f6c16b274b6067675279a1dd53ef6fd)\n.\n\nPerformance Highlights\n As at or for the periods ended   Three Months     \n ($ thousands except where otherwise indicated)   March 31, 2026   March 31, 2025   Change   Change % \n FFO((1))   $ 196,020   $ 190,939   $ 5,081   2.7 % \n                   \n FFO per unit diluted((1))     0.271     0.264     0.007   2.7 % \n                   \n Net Loss     (87,194)     (96,233)     9,039   (9.4) % \n                   \n Weighted average number of units outstanding - diluted((i))     723,810,797     723,770,677     40,120   — % \n (i) Includes Trust Units and Exchangeable Units \n\n\nFunds from Operations\n\nFFO((1)) increased by $5.1 million, or 2.7% per unit diluted for the three\nmonths ended March 31, 2026. The increase was primarily due to higher net\noperating income and lease surrender revenue, partially offset by higher\ninterest expense, lower investment income as a result of the reduction in\nAllied’s distribution, higher general and administrative expenses, and lower\nfee income.\n\nGrowth in FFO((1) )per unit diluted was impacted by higher lease surrender\nrevenue of $1.9 million in the current year and a reduction of Allied’s\ndistribution of $3.2 million. Excluding these items, FFO((1)) per unit diluted\nfor the three-month period increased by $0.009 or 3.5%.\n\nNet Loss\n\nChoice Properties reported a net loss of $87.2 million for the three months\nended March 31, 2026, compared to a net loss of $96.2 million in the prior\nyear period. The difference of $9.0 million was primarily due to changes in\ncertain non-cash adjustments to fair value including:\n\n\n * a $49.0 million favourable change in the adjustment to fair value of\ninvestment properties.\n\n * a $19.8 million favourable change in the adjustment to fair value of the\nTrust’s Exchangeable Units((3)) due to the change in the Trust’s unit\nprice; partially offset by\n\n * a $40.5 million unfavourable change in the adjustment to fair value of the\ninvestment in real estate securities of Allied, driven by the change in\nAllied’s unit price; and\n\n * a $18.9 million decrease in income from equity accounted joint ventures\nresulting from the unfavourable change in the adjustment to fair value of\nrelated investment properties.\n\nSelect Proportionate Share((1)) Operational and Financial Highlights\n As at or for the periods ended   Three Months     \n ($ thousands except where otherwise indicated)   March 31, 2026   March 31, 2025   Change   Change % \n NOI, Cash Basis((1))   $ 273,085   $ 262,070   $ 11,015   4.2 % \n                   \n Same-Asset NOI, Cash basis((1))   $ 255,532   $ 247,986   $ 7,546   3.0 % \n                   \n Long term renewal spreads((2))     21.8 %     11.7 %     10.1 %   n/a \n                   \n Occupancy (% of GLA)     98.1 %     97.7 %     0.4 %   n/a \n                   \n NAV((1)) per unit   $ 14.53   $ 14.17   $ 0.36   2.5 % \n   \n\n\n\n * Same-Asset NOI, Cash Basis((1)) increased by 3.0% for the three months ended\nMarch 31, 2026 compared to the prior year period.\n\n\n* Retail increased by 3.2%;\n\n * Industrial increased by 6.2%; and\n\n * Mixed-Use & Residential decreased by 15.4% due to the impact of a property\ntax incentive recognized in the prior year period. Excluding the mixed-use\n& residential portfolio, Same-Asset NOI on a cash basis((1) )increased by\n3.8%.\n\n\n\n\n * Period end occupancy decreased by 10 basis points from December 31, 2025 to\n98.1%, with:\n\n\n* Retail at 97.9%, Industrial at 98.6%, and Mixed-Use & Residential at\n93.8%.\n\n\n\n\n * Achieved leasing spreads((2) )on long-term renewals of 21.8%, with 17.2% and\n46.2% in the Retail and Industrial portfolios, respectively.\n\nOutlook\n\nWe are focused on capital preservation, delivering stable and growing cash\nflows and net asset value appreciation. Our high-quality portfolio is\nprimarily leased to necessity-based tenants and logistics providers, who are\nless sensitive to economic volatility and therefore provide stability to our\noverall portfolio. We will continue to advance our development program, with a\nfocus on commercial developments, which provides us with the best opportunity\nto add high-quality real estate to our portfolio at a reasonable cost and\ndrive net asset value appreciation over time.\n\nWe are confident that our business model, stable tenant base, strong balance\nsheet, and disciplined approach to financial management will continue to\nbenefit us. We cannot predict the timing of the closing of the Transaction\nwith FCR and KingSett, and its impact on our financial results. In 2026,\nexcluding this impact, Choice Properties is targeting:\n\n\n * Stable occupancy across the portfolio, resulting in approximately 2%-3%\nyear-over-year growth in Same-Asset NOI, Cash Basis((1));\n\n * Annual FFO per unit diluted((1)) in a range of approximately $1.08 to $1.10;\nand\n\n * Strong leverage metrics, targeting Adjusted Debt to EBITDAFV((1)) below 7.5x.\n\nIssuance of ESG Report\n\nOn April 29, 2026, the Trust issued its 2025 Environmental, Social and\nGovernance Report, available on the Trust’s website at\nwww.choicereit.ca/sustainability\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.choicereit.ca%2Fsustainability%2F&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.choicereit.ca%2Fsustainability&index=4&md5=d1e70bae6d25d6dabfef68dd0be77c23)\n.\n\nConference Call and Webcast\n\nManagement will host a conference call on Thursday, April 30, 2026 at 9:00 AM\n(EDT) with a simultaneous audio webcast. To access via teleconference, please\ndial +1 (888) 330-2454 or +1 (240) 789-2714 and enter the event passcode:\n4788974. The link to the audio webcast will be available on\nwww.choicereit.ca/investors\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.choicereit.ca%2Finvestors%2F&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.choicereit.ca%2Finvestors&index=5&md5=77c0c2f6406b5dfadf81317b1cdc03c4)\n.\n\nChoice Properties’ Annual Meeting of Unitholders will be held on Thursday,\nApril 30, 2026 at 11:00 AM (ET) in a virtual meeting format via live webcast.\nUnitholders can attend the meeting by joining the live webcast online at\nhttps://meetings.lumiconnect.com/400-970-939-471\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fmeetings.lumiconnect.com%2F400-970-939-471&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=https%3A%2F%2Fmeetings.lumiconnect.com%2F400-970-939-471&index=6&md5=e8a13c3d584ac50782d1580755dc12f1)\n. Refer to “How do I attend and participate in the virtual Meeting?” in\nthe Management Proxy Circular, which is available to be viewed online at\nwww.choicereit.ca\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.choicereit.ca%2F&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.choicereit.ca&index=7&md5=c7c73ff28470e9e9990153b665df3c42)\nor under Choice Properties’ SEDAR+ profile at www.sedarplus.ca\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.sedarplus.ca%2F&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.sedarplus.ca&index=8&md5=57f95d7bb3c7b998cc08ed32bebf1c8d)\nfor detailed instructions on how to attend and vote at the meeting. The\nwebcast of the meeting will be archived on our website following the meeting.\nPlease refer to the events page at www.choicereit.ca\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.choicereit.ca%2F&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.choicereit.ca&index=9&md5=8bf3996066c5994f2e7ad047d1dffb29)\nfor additional details on the virtual meeting.\n\nAbout Choice Properties Real Estate Investment Trust\n\nChoice Properties is Canada’s largest real estate investment trust, guided\nby a clear purpose: to create places where people thrive. This is how we build\nenduring value. As a national owner, operator, and developer of high-quality\ncommercial and residential real estate, we go beyond managing assets. We\ncreate places that strengthen how tenants and communities live, work, and\nconnect. Our platform is built on industry leadership in sustainability,\ncommunity engagement, and social impact, embedded across how we operate,\nbuild, and grow. As a trusted steward of capital, we are committed to\ndisciplined execution, long-term value creation, and responsible growth.\nEverything we do is guided by our core values of Care, Ownership, Respect, and\nExcellence. For more information, visit Choice Properties’ website at\nwww.choicereit.ca\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.choicereit.ca%2F&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.choicereit.ca&index=10&md5=2c29dac6a2743f29c3f4cb8a77934e6e)\nand Choice Properties’ issuer profile at www.sedarplus.ca\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.sedarplus.ca%2Fhome%2F&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.sedarplus.ca&index=11&md5=dd876891c63216d1380f45c45fe81888)\n.\n ((1) )Refer to Non-GAAP Financial Measures and Additional Financial \n Information section. \n ((2) )Long term renewal spreads are calculated as the difference between the \n average rate during the renewal term and the expiring rental rate. \n ((3) )Exchangeable Units are required to be classified as financial \n liabilities at fair value through profit and loss under GAAP. They are \n recorded at their fair value based on the market trading price of the Trust \n Units, which results in a negative impact to the financial results when the \n Trust Unit price rises and a positive impact when the Trust Unit price \n declines. \n\n\nNon-GAAP Financial Measures and Additional Financial Information\n\nChoice Properties prepares and releases unaudited interim and audited annual\nconsolidated financial statements in accordance with International Financial\nReporting Standards (“IFRS” or “GAAP”), along with its MD&A, which\nshould be read in conjunction with this news release.\n\nIn addition to results provided in accordance with IFRS, Choice Properties\nalso measures its performance using certain non-GAAP measures, which are\nprovided in this news release so that investors may do the same. These\nnon-GAAP measures include FFO, NOI Cash basis, Same-Asset NOI Cash basis, NAV,\nProportionate share, and Adjusted Debt to EBITDAFV. Such measures and related\nper-unit amounts are not defined by IFRS and therefore should not be construed\nas alternatives to net income or cash flows from operating activities\ndetermined in accordance with IFRS. Furthermore, the supplemental measures\nused by management may not be comparable to similar measures presented by\nother real estate investment trusts or enterprises. The non-GAAP measures\nincluded in this news release are defined and reconciled to the most\ncomparable GAAP measure below. Choice Properties believes these non-GAAP\nfinancial measures provide useful information to both management and investors\nin measuring the financial performance and financial condition of the Trust\nfor the reasons outlined below.\n\nProportionate share represents financial information adjusted to reflect the\nTrust’s equity accounted joint ventures and financial real estate assets and\nits share of net income (loss) from equity accounted joint ventures and\nfinancial real estate assets on a proportionately consolidated basis at the\nTrust’s ownership percentage of the related investment. Management views\nthis method as relevant in demonstrating the Trust’s ability to manage the\nunderlying economics of the related investments, including the financial\nperformance and cash flows and the extent to which the underlying assets are\nleveraged, which is an important component of risk management.\n\nThe following table reconciles net loss, as determined in accordance with\nGAAP, to net loss on a proportionate share basis for the three months ended\nMarch 31, 2026:\n       Three Months \n ($ thousands)   GAAP Basis   Adjustment to Proportionate Share Basis   Proportionate Share Basis \n Net Operating Income             \n   Rental revenue   $ 361,192   $ 31,298   $ 392,490 \n   Property operating costs     (105,095)     (9,614)     (114,709) \n         256,097     21,684     277,781 \n Other Income and Expenses             \n   Interest income     11,009     (4,484)     6,525 \n   Investment income     2,126     —     2,126 \n   Fee income     1,167     —     1,167 \n   Net interest expense and other financing charges     (150,063)     (7,390)     (157,453) \n   General and administrative expenses     (16,058)     —     (16,058) \n   Share of income from equity accounted joint ventures     (2,765)     2,765     — \n   Amortization of intangible assets     (250)     —     (250) \n   Adjustment to fair value of unit-based compensation     (296)     —     (296) \n   Adjustment to fair value of Exchangeable Units     (217,683)     —     (217,683) \n   Adjustment to fair value of investment properties     79,003     (12,575)     66,428 \n   Adjustment to fair value of investment in real estate securities     (49,480)     —     (49,480) \n Loss before Income Taxes     (87,193)     —     (87,193) \n   Income tax expense     (1)     —     (1) \n Net Loss   $ (87,194)   $ —   $ (87,194) \n   \n\n\nThe following table reconciles net loss, as determined in accordance with\nGAAP, to net loss on a proportionate share basis for the three months ended\nMarch 31, 2025:\n       Three Months \n ($ thousands)   GAAP Basis   Adjustment to Proportionate Share Basis   Proportionate Share Basis \n Net Operating Income             \n   Rental revenue   $ 346,912   $ 25,134   $ 372,046 \n   Property operating costs     (101,063)     (7,830)     (108,893) \n         245,849     17,304     263,153 \n Other Income and Expenses \n   Interest income     11,661     (4,310)     7,351 \n   Investment income     5,315     —     5,315 \n   Fee income     2,470     —     2,470 \n   Net interest expense and other financing charges     (146,189)     (6,859)     (153,048) \n   General and administrative expenses     (14,737)     —     (14,737) \n   Share of income from equity accounted joint ventures     16,155     (16,155)     — \n   Amortization of intangible assets     (250)     —     (250) \n   Transaction costs and other related expenses     —     —     — \n   Adjustment to fair value of unit-based compensation     (18)     —     (18) \n   Adjustment to fair value of Exchangeable Units     (237,472)     —     (237,472) \n   Adjustment to fair value of investment properties     29,958     10,020     39,978 \n   Adjustment to fair value of investment in real estate securities     (8,974)     —     (8,974) \n Loss before Income Taxes     (96,232)     —     (96,232) \n   Income tax expense     (1)     —     (1) \n Net Loss   $ (96,233)   $ —   $ (96,233) \n   \n\n\nNet Operating Income (“NOI”), Accounting Basis, is defined as property\nrental revenue including straight-line rental revenue, reimbursed contract\nrevenue and lease surrender revenue, less direct property operating expenses\nand realty taxes, and excludes certain expenses such as interest expense and\nindirect operating expenses in order to provide results that reflect a\nproperty’s operations before consideration of how it is financed or the\ncosts of operating the entity in which it is held. Management believes that\nNOI is an important measure of operating performance for the Trust’s\ncommercial real estate assets that is used by real estate industry analysts,\ninvestors and management, while also being a key input in determining the fair\nvalue of the Choice Properties portfolio.\n\nNOI, Cash Basis, is defined as property rental revenue and reimbursed contract\nrevenue, excluding straight-line rental revenue and lease surrender revenue,\nless direct property operating expenses and realty taxes. Management believes\nNOI, Cash Basis is a useful measure in understanding period-over-period\nchanges in income from operations due to occupancy, rental rates, operating\ncosts and realty taxes.\n\nThe following table reconciles net loss, as determined in accordance with\nGAAP, to Net Operating Income, Cash Basis for the periods ended as indicated:\n For the periods ended March 31 ($ thousands)   Three Months \n     2026     2025   Change $ \n Net Loss   $ (87,194)   $ (96,233)   $ 9,039 \n Residential inventory income     —     —     — \n Interest income     (11,009)     (11,661)     652 \n Investment income     (2,126)     (5,315)     3,189 \n Fee income     (1,167)     (2,470)     1,303 \n Net interest expense and other financing charges     150,063     146,189     3,874 \n General and administrative expenses     16,058     14,737     1,321 \n Share of income from equity accounted joint ventures     2,765     (16,155)     18,920 \n Amortization of intangible assets     250     250     — \n Adjustment to fair value of unit-based compensation     296     18     278 \n Adjustment to fair value of Exchangeable Units     217,683     237,472     (19,789) \n Adjustment to fair value of investment properties     (79,003)     (29,958)     (49,045) \n Adjustment to fair value of investment in real estate securities     49,480     8,974     40,506 \n Income tax expense (recovery)     1     1     — \n Net Operating Income, Accounting Basis - GAAP     256,097     245,849     10,248 \n Straight-line rental revenue     1,104     367     737 \n Lease surrender revenue     (1,926)     (84)     (1,842) \n Net Operating Income, Cash Basis - GAAP     255,275     246,132     9,143 \n Adjustments for equity accounted joint ventures and financial real estate     17,810     15,938     1,872 \n assets \n Net Operating Income, Cash Basis - Proportionate Share   $ 273,085   $ 262,070   $ 11,015 \n   \n\n\nSame-Asset NOI, Cash Basis represents NOI only for those assets that were\nowned and operated by the Trust since January 1, 2025 inclusive.\n\nThe following table reconciles NOI, Cash Basis to Same-Asset NOI, Cash Basis\nfor the periods ended as indicated:\n For the periods ended March 31 ($ thousands)   Three Months \n     2026     2025   Change $ \n Net Operating Income, Cash Basis - Proportionate Share   $ 273,085   $ 262,070   $ 11,015 \n Less:             \n Transactions NOI, Cash Basis - Proportionate Share     (17,553)     (14,084)     (3,469) \n Same-Asset NOI, Cash Basis - Proportionate Share   $ 255,532   $ 247,986   $ 7,546 \n   \n\n\nFunds from Operations (“FFO”) is calculated in accordance with the Real\nProperty Association of Canada’s Funds From Operations (FFO) & Adjusted\nFunds From Operations (AFFO) for IFRS issued in January 2022. Management\nconsiders FFO to be a useful measure of operating performance as it adjusts\nfor items included in net income (or loss) that do not arise from operating\nactivities or do not necessarily provide an accurate depiction of the\nTrust’s past or recurring performance, such as adjustments to fair value of\nExchangeable Units, investment properties, investment in real estate\nsecurities, and unit-based compensation. From time to time, the Trust may\nenter into transactions that materially impact the calculation and are\neliminated from the calculation for management’s review purposes.\n\nManagement uses and believes that FFO is a useful measure of the Trust’s\nperformance that, when compared period over period, reflects the impact on\noperations of trends in occupancy levels, rental rates, operating costs and\nrealty taxes, acquisition activities and interest costs.\n\nThe following table reconciles net loss, as determined in accordance with\nGAAP, to Funds from Operations for the periods ended as indicated:\n For the periods ended March 31 ($ thousands except where otherwise indicated)   Three Months \n     2026     2025   Change $ \n Net Loss   $ (87,194)   $ (96,233)   $ 9,039 \n Add (deduct) impact of the following:             \n Amortization of intangible assets     250     250     — \n Adjustment to fair value of unit-based compensation     296     18     278 \n Adjustment to fair value of Exchangeable Units     217,683     237,472     (19,789) \n Adjustment to fair value of investment properties     (79,003)     (29,958)     (49,045) \n Adjustment to fair value of investment properties to proportionate share     12,575     (10,020)     22,595 \n Adjustment to fair value of investment in real estate securities     49,480     8,974     40,506 \n Interest otherwise capitalized for development in equity accounted joint     2,594     2,496     98 \n ventures \n Exchangeable Units distributions     76,519     75,529     990 \n Internal expenses for leasing     2,819     2,410     409 \n Income tax expense     1     1     — \n Funds from Operations   $ 196,020   $ 190,939   $ 5,081 \n FFO per unit - diluted   $ 0.271   $ 0.264   $ 0.007 \n Weighted average number of units outstanding - diluted((i))     723,810,797     723,770,677     40,120 \n (i) Includes Trust Units and Exchangeable Units.             \n\n\nEarnings before Interest, Taxes, Depreciation, Amortization, and Fair Value\n(“EBITDAFV”) is defined as net income (loss) attributable to Unitholders,\nreversing, where applicable, income taxes, interest expense, amortization\nexpense, depreciation expense, adjustments to fair value and other adjustments\non a proportionate share basis as allowed in the Trust Indentures, as\nsupplemented. Management believes EBITDAFV is useful in assessing the\nTrust’s ability to service its debt, finance capital expenditures and\nprovide distributions to its Unitholders.\n\nTotal Adjusted Debt is defined as variable rate debt (construction loans,\nmortgages, and credit facility) and fixed rate debt (senior unsecured\ndebentures, construction loans and mortgages), as measured on a proportionate\nshare basis, including the impact of other finance charges and defeasance or\nother prepayments of debt. It does not include the Exchangeable Units which\nare included as part of unit equity on account of the Exchangeable Units being\neconomically equivalent and receiving equal distributions to the Trust Units.\n\nThe following table reconciles net loss, as determined in accordance with\nGAAP, to EBITDAFV for the periods ended as indicated:\n     Three Months \n For the periods ended March 31 ($ thousands)     2026     2025   Change $ \n Net Loss   $ (87,194)   $ (96,233)   $ 9,039 \n Add (deduct) impact of the following:             \n Transaction costs and other related expenses     —     —     — \n Adjustment to fair value of unit-based compensation     296     18     278 \n Adjustment to fair value of Exchangeable Units     217,683     237,472     (19,789) \n Adjustment to fair value of investment properties     (79,003)     (29,958)     (49,045) \n Adjustment to fair value of investment properties to proportionate share     12,575     (10,020)     22,595 \n Adjustment to fair value of investment in real estate securities     49,480     8,974     40,506 \n Interest expense on a proportionate share basis     157,560     154,571     2,989 \n Amortization of other assets     293     316     (23) \n Amortization of intangible assets     250     250     — \n Income tax expense     1     1     — \n EBITDAFV - Proportionate Share   $ 271,941   $ 265,391   $ 6,550 \n   \n\n\nNet Asset Value (“NAV”) is an alternative measurement of equity. It is\ncalculated by summing Unitholder’s Equity and the fair value of the\nTrust’s Exchangeable Units. Under IFRS Exchangeable Units are considered\ndebt. The Exchangeable Units are not required to be repaid and the holder of\nthese units has the right to convert them into Units, therefore Management\nconsiders the Exchangeable Units to be equivalent to equity. NAV is a useful\nmeasure as it reflects Management’s view of the intrinsic value of the\nTrust. NAV per unit allows Management to determine if the Trust is trading at\na discount or premium to its intrinsic value.\n\nThe following table reconciles Net Asset Value as at the dates indicated\nbelow:\n               \n ($ thousands except where otherwise indicated)   As at March 31, 2026   As at December 31, 2025   Change $ \n               \n Unitholders’ equity   $ 4,434,568   $ 4,584,809   $ (150,241) \n Exchangeable Units     6,079,281     5,861,598     217,683 \n NAV   $ 10,513,849   $ 10,446,407   $ 67,442 \n NAV per unit   $ 14.53   $ 14.43   $ 0.10 \n Trust Units and Exchangeable Units, end of period     723,810,797     723,810,797     — \n   \n\n\nCautionary Statements Regarding Forward-looking Statements\n\nThis news release contains forward-looking statements relating to Choice\nProperties’ operations and the environment in which the Trust operates,\nwhich are based on management’s expectations, estimates, forecasts and\nprojections. These statements are not guarantees of future performance and\ninvolve risks and uncertainties that are difficult to control or predict.\nTherefore, actual outcomes and results may differ materially from those\nexpressed in these forward-looking statements. Readers, therefore, should not\nplace undue reliance on any such forward-looking statements. Further, a\nforward-looking statement speaks only as of the date on which such statement\nis made. Management undertakes no obligation to publicly update any such\nstatement, to reflect new information or the occurrence of future events or\ncircumstances, except as required by law.\n\nNumerous risks and uncertainties could cause the Trust’s actual results to\ndiffer materially from those expressed, implied or projected in the\nforward-looking statements, including those described in Section 11\n“Enterprise Risks and Risk Management” of the Trust’s MD&A for the\nyear ended December 31, 2025 and those described in the Trust’s Annual\nInformation Form for the year ended December 31, 2025.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260423871719/en/\n(https://www.businesswire.com/news/home/20260423871719/en/)\n\nFor further information, please contact investor@choicereit.ca\n(mailto:investor@choicereit.ca) .\n\nErin Johnston\n\nChief Financial Officer\n\ne: Erin.Johnston@choicereit.ca (mailto:Erin.Johnston@choicereit.ca)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBw2ZShLca","title":"Choice Properties Real Estate Investment Trust Reports Results for the Three Months Ended March 31, 2026","author":"Business Wire","ticker":"CHP_U","created":"2026-04-29T20:47:00.235Z","tickers":["CHP_U"],"exchange":"TSX","article_body":"Choice Properties Real Estate Investment Trust Reports Results for the Three\nMonths Ended March 31, 2026\n\nChoice Properties Real Estate Investment Trust (“Choice Properties” or the\n“Trust”) (TSX: CHP.UN) today announced its consolidated financial results\nfor the three months ended March 31, 2026. The First Quarter Report to\nUnitholders is available in the Investors section of the Trust’s website at\nwww.choicereit.ca\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.choicereit.ca&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.choicereit.ca&index=1&md5=bb73cde6237c0ae5e4833651280e0169)\n, and has been filed on SEDAR+ at www.sedarplus.ca\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.sedarplus.ca&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.sedarplus.ca&index=2&md5=d8aa4b6241df96e27ffaa30a76c8be67)\n.\n\n“Choice Properties started the year strong, with stable occupancy and robust\nleasing spreads. Same-Asset NOI and FFO per unit growth reflected this solid\noperating performance and the continued momentum across our portfolio,” said\nRael Diamond, President and Chief Executive Officer of the Trust. “With our\nbusiness in excellent shape and an industry‑leading balance sheet, we\nannounced a transformational acquisition subsequent to quarter end. The\npotential opportunity to add high‑quality urban retail assets will\nmeaningfully strengthen our national platform and enhance long‑term value\nfor Unitholders.”\n\n2026 First Quarter Highlights\n\n\n * Reported a net loss of $87.2 million compared to a net loss of $96.2 million\nin the prior year period.\n\n * Reported FFO((1)) per unit diluted of $0.271, representing year-over-year\ngrowth of 2.7%.\n\n * FFO((1)) per unit diluted, excluding lease surrender revenue and the reduction\nin Allied Properties REIT’s (“Allied”) distribution, increased by 3.5%\ncompared to the prior year period.\n\n * Achieved Same-Asset NOI, Cash Basis((1)) growth of 3.0% and Total NOI, Cash\nBasis((1)) growth of 4.2%.\n\n * Achieved long term renewal leasing spreads((2)) of 21.8%.\n\n * Period end occupancy remained stable at 98.1%, with Retail at 97.9%,\nIndustrial at 98.6%, and Mixed-Use & Residential at 93.8%.\n\n * Completed $28.5 million of real estate transactions on a proportionate share\nbasis((1)).\n\n * Delivered $9.3 million of development projects, adding approximately 21,900\nsquare feet of new commercial GLA on a proportionate share basis((1) )through\nretail intensifications.\n\nSubsequent Event\n\nOn April 16, 2026, the Trust announced that it entered into an agreement with\nFirst Capital Real Estate Investment Trust (“FCR”) and KingSett Capital,\non behalf of its investors (collectively, “KingSett”) pursuant to which\nKingSett and the Trust will acquire FCR in a unit and cash transaction valued\nat approximately $9.4 billion, including the assumption of certain debt (the\n“Transaction”).\n\nUpon closing of the Transaction, the Trust will acquire approximately $5.0\nbillion of FCR’s high-quality retail assets and KingSett will acquire\napproximately $4.4 billion of FCR’s assets and all of FCR’s issued and\noutstanding units.\n\nFor additional details regarding the agreement and the Transaction, refer to\nthe April 16, 2026 press release posted on the Trust’s website at\nwww.choicereit.ca/investors/\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.choicereit.ca%2Finvestors%2F&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.choicereit.ca%2Finvestors%2F&index=3&md5=8f6c16b274b6067675279a1dd53ef6fd)\n.\n\nPerformance Highlights\n As at or for the periods ended   Three Months     \n ($ thousands except where otherwise indicated)   March 31, 2026   March 31, 2025   Change   Change % \n FFO((1))   $ 196,020   $ 190,939   $ 5,081   2.7 % \n                   \n FFO per unit diluted((1))     0.271     0.264     0.007   2.7 % \n                   \n Net Loss     (87,194)     (96,233)     9,039   (9.4) % \n                   \n Weighted average number of units outstanding - diluted((i))     723,810,797     723,770,677     40,120   — % \n (i) Includes Trust Units and Exchangeable Units \n\n\nFunds from Operations\n\nFFO((1)) increased by $5.1 million, or 2.7% per unit diluted for the three\nmonths ended March 31, 2026. The increase was primarily due to higher net\noperating income and lease surrender revenue, partially offset by higher\ninterest expense, lower investment income as a result of the reduction in\nAllied’s distribution, higher general and administrative expenses, and lower\nfee income.\n\nGrowth in FFO((1) )per unit diluted was impacted by higher lease surrender\nrevenue of $1.9 million in the current year and a reduction of Allied’s\ndistribution of $3.2 million. Excluding these items, FFO((1)) per unit diluted\nfor the three-month period increased by $0.009 or 3.5%.\n\nNet Loss\n\nChoice Properties reported a net loss of $87.2 million for the three months\nended March 31, 2026, compared to a net loss of $96.2 million in the prior\nyear period. The difference of $9.0 million was primarily due to changes in\ncertain non-cash adjustments to fair value including:\n\n\n * a $49.0 million favourable change in the adjustment to fair value of\ninvestment properties.\n\n * a $19.8 million favourable change in the adjustment to fair value of the\nTrust’s Exchangeable Units((3)) due to the change in the Trust’s unit\nprice; partially offset by\n\n * a $40.5 million unfavourable change in the adjustment to fair value of the\ninvestment in real estate securities of Allied, driven by the change in\nAllied’s unit price; and\n\n * a $18.9 million decrease in income from equity accounted joint ventures\nresulting from the unfavourable change in the adjustment to fair value of\nrelated investment properties.\n\nSelect Proportionate Share((1)) Operational and Financial Highlights\n As at or for the periods ended   Three Months     \n ($ thousands except where otherwise indicated)   March 31, 2026   March 31, 2025   Change   Change % \n NOI, Cash Basis((1))   $ 273,085   $ 262,070   $ 11,015   4.2 % \n                   \n Same-Asset NOI, Cash basis((1))   $ 255,532   $ 247,986   $ 7,546   3.0 % \n                   \n Long term renewal spreads((2))     21.8 %     11.7 %     10.1 %   n/a \n                   \n Occupancy (% of GLA)     98.1 %     97.7 %     0.4 %   n/a \n                   \n NAV((1)) per unit   $ 14.53   $ 14.17   $ 0.36   2.5 % \n   \n\n\n\n * Same-Asset NOI, Cash Basis((1)) increased by 3.0% for the three months ended\nMarch 31, 2026 compared to the prior year period.\n\n\n* Retail increased by 3.2%;\n\n * Industrial increased by 6.2%; and\n\n * Mixed-Use & Residential decreased by 15.4% due to the impact of a property\ntax incentive recognized in the prior year period. Excluding the mixed-use\n& residential portfolio, Same-Asset NOI on a cash basis((1) )increased by\n3.8%.\n\n\n\n\n * Period end occupancy decreased by 10 basis points from December 31, 2025 to\n98.1%, with:\n\n\n* Retail at 97.9%, Industrial at 98.6%, and Mixed-Use & Residential at\n93.8%.\n\n\n\n\n * Achieved leasing spreads((2) )on long-term renewals of 21.8%, with 17.2% and\n46.2% in the Retail and Industrial portfolios, respectively.\n\nOutlook\n\nWe are focused on capital preservation, delivering stable and growing cash\nflows and net asset value appreciation. Our high-quality portfolio is\nprimarily leased to necessity-based tenants and logistics providers, who are\nless sensitive to economic volatility and therefore provide stability to our\noverall portfolio. We will continue to advance our development program, with a\nfocus on commercial developments, which provides us with the best opportunity\nto add high-quality real estate to our portfolio at a reasonable cost and\ndrive net asset value appreciation over time.\n\nWe are confident that our business model, stable tenant base, strong balance\nsheet, and disciplined approach to financial management will continue to\nbenefit us. We cannot predict the timing of the closing of the Transaction\nwith FCR and KingSett, and its impact on our financial results. In 2026,\nexcluding this impact, Choice Properties is targeting:\n\n\n * Stable occupancy across the portfolio, resulting in approximately 2%-3%\nyear-over-year growth in Same-Asset NOI, Cash Basis((1));\n\n * Annual FFO per unit diluted((1)) in a range of approximately $1.08 to $1.10;\nand\n\n * Strong leverage metrics, targeting Adjusted Debt to EBITDAFV((1)) below 7.5x.\n\nIssuance of ESG Report\n\nOn April 29, 2026, the Trust issued its 2025 Environmental, Social and\nGovernance Report, available on the Trust’s website at\nwww.choicereit.ca/sustainability\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.choicereit.ca%2Fsustainability%2F&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.choicereit.ca%2Fsustainability&index=4&md5=d1e70bae6d25d6dabfef68dd0be77c23)\n.\n\nConference Call and Webcast\n\nManagement will host a conference call on Thursday, April 30, 2026 at 9:00 AM\n(EDT) with a simultaneous audio webcast. To access via teleconference, please\ndial +1 (888) 330-2454 or +1 (240) 789-2714 and enter the event passcode:\n4788974. The link to the audio webcast will be available on\nwww.choicereit.ca/investors\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.choicereit.ca%2Finvestors%2F&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.choicereit.ca%2Finvestors&index=5&md5=77c0c2f6406b5dfadf81317b1cdc03c4)\n.\n\nChoice Properties’ Annual Meeting of Unitholders will be held on Thursday,\nApril 30, 2026 at 11:00 AM (ET) in a virtual meeting format via live webcast.\nUnitholders can attend the meeting by joining the live webcast online at\nhttps://meetings.lumiconnect.com/400-970-939-471\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fmeetings.lumiconnect.com%2F400-970-939-471&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=https%3A%2F%2Fmeetings.lumiconnect.com%2F400-970-939-471&index=6&md5=e8a13c3d584ac50782d1580755dc12f1)\n. Refer to “How do I attend and participate in the virtual Meeting?” in\nthe Management Proxy Circular, which is available to be viewed online at\nwww.choicereit.ca\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.choicereit.ca%2F&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.choicereit.ca&index=7&md5=c7c73ff28470e9e9990153b665df3c42)\nor under Choice Properties’ SEDAR+ profile at www.sedarplus.ca\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.sedarplus.ca%2F&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.sedarplus.ca&index=8&md5=57f95d7bb3c7b998cc08ed32bebf1c8d)\nfor detailed instructions on how to attend and vote at the meeting. The\nwebcast of the meeting will be archived on our website following the meeting.\nPlease refer to the events page at www.choicereit.ca\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.choicereit.ca%2F&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.choicereit.ca&index=9&md5=8bf3996066c5994f2e7ad047d1dffb29)\nfor additional details on the virtual meeting.\n\nAbout Choice Properties Real Estate Investment Trust\n\nChoice Properties is Canada’s largest real estate investment trust, guided\nby a clear purpose: to create places where people thrive. This is how we build\nenduring value. As a national owner, operator, and developer of high-quality\ncommercial and residential real estate, we go beyond managing assets. We\ncreate places that strengthen how tenants and communities live, work, and\nconnect. Our platform is built on industry leadership in sustainability,\ncommunity engagement, and social impact, embedded across how we operate,\nbuild, and grow. As a trusted steward of capital, we are committed to\ndisciplined execution, long-term value creation, and responsible growth.\nEverything we do is guided by our core values of Care, Ownership, Respect, and\nExcellence. For more information, visit Choice Properties’ website at\nwww.choicereit.ca\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.choicereit.ca%2F&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.choicereit.ca&index=10&md5=2c29dac6a2743f29c3f4cb8a77934e6e)\nand Choice Properties’ issuer profile at www.sedarplus.ca\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=https%3A%2F%2Fwww.sedarplus.ca%2Fhome%2F&esheet=54521913&newsitemid=20260423871719&lan=en-US&anchor=www.sedarplus.ca&index=11&md5=dd876891c63216d1380f45c45fe81888)\n.\n ((1) )Refer to Non-GAAP Financial Measures and Additional Financial \n Information section. \n ((2) )Long term renewal spreads are calculated as the difference between the \n average rate during the renewal term and the expiring rental rate. \n ((3) )Exchangeable Units are required to be classified as financial \n liabilities at fair value through profit and loss under GAAP. They are \n recorded at their fair value based on the market trading price of the Trust \n Units, which results in a negative impact to the financial results when the \n Trust Unit price rises and a positive impact when the Trust Unit price \n declines. \n\n\nNon-GAAP Financial Measures and Additional Financial Information\n\nChoice Properties prepares and releases unaudited interim and audited annual\nconsolidated financial statements in accordance with International Financial\nReporting Standards (“IFRS” or “GAAP”), along with its MD&A, which\nshould be read in conjunction with this news release.\n\nIn addition to results provided in accordance with IFRS, Choice Properties\nalso measures its performance using certain non-GAAP measures, which are\nprovided in this news release so that investors may do the same. These\nnon-GAAP measures include FFO, NOI Cash basis, Same-Asset NOI Cash basis, NAV,\nProportionate share, and Adjusted Debt to EBITDAFV. Such measures and related\nper-unit amounts are not defined by IFRS and therefore should not be construed\nas alternatives to net income or cash flows from operating activities\ndetermined in accordance with IFRS. Furthermore, the supplemental measures\nused by management may not be comparable to similar measures presented by\nother real estate investment trusts or enterprises. The non-GAAP measures\nincluded in this news release are defined and reconciled to the most\ncomparable GAAP measure below. Choice Properties believes these non-GAAP\nfinancial measures provide useful information to both management and investors\nin measuring the financial performance and financial condition of the Trust\nfor the reasons outlined below.\n\nProportionate share represents financial information adjusted to reflect the\nTrust’s equity accounted joint ventures and financial real estate assets and\nits share of net income (loss) from equity accounted joint ventures and\nfinancial real estate assets on a proportionately consolidated basis at the\nTrust’s ownership percentage of the related investment. Management views\nthis method as relevant in demonstrating the Trust’s ability to manage the\nunderlying economics of the related investments, including the financial\nperformance and cash flows and the extent to which the underlying assets are\nleveraged, which is an important component of risk management.\n\nThe following table reconciles net loss, as determined in accordance with\nGAAP, to net loss on a proportionate share basis for the three months ended\nMarch 31, 2026:\n       Three Months \n ($ thousands)   GAAP Basis   Adjustment to Proportionate Share Basis   Proportionate Share Basis \n Net Operating Income             \n   Rental revenue   $ 361,192   $ 31,298   $ 392,490 \n   Property operating costs     (105,095)     (9,614)     (114,709) \n         256,097     21,684     277,781 \n Other Income and Expenses             \n   Interest income     11,009     (4,484)     6,525 \n   Investment income     2,126     —     2,126 \n   Fee income     1,167     —     1,167 \n   Net interest expense and other financing charges     (150,063)     (7,390)     (157,453) \n   General and administrative expenses     (16,058)     —     (16,058) \n   Share of income from equity accounted joint ventures     (2,765)     2,765     — \n   Amortization of intangible assets     (250)     —     (250) \n   Adjustment to fair value of unit-based compensation     (296)     —     (296) \n   Adjustment to fair value of Exchangeable Units     (217,683)     —     (217,683) \n   Adjustment to fair value of investment properties     79,003     (12,575)     66,428 \n   Adjustment to fair value of investment in real estate securities     (49,480)     —     (49,480) \n Loss before Income Taxes     (87,193)     —     (87,193) \n   Income tax expense     (1)     —     (1) \n Net Loss   $ (87,194)   $ —   $ (87,194) \n   \n\n\nThe following table reconciles net loss, as determined in accordance with\nGAAP, to net loss on a proportionate share basis for the three months ended\nMarch 31, 2025:\n       Three Months \n ($ thousands)   GAAP Basis   Adjustment to Proportionate Share Basis   Proportionate Share Basis \n Net Operating Income             \n   Rental revenue   $ 346,912   $ 25,134   $ 372,046 \n   Property operating costs     (101,063)     (7,830)     (108,893) \n         245,849     17,304     263,153 \n Other Income and Expenses \n   Interest income     11,661     (4,310)     7,351 \n   Investment income     5,315     —     5,315 \n   Fee income     2,470     —     2,470 \n   Net interest expense and other financing charges     (146,189)     (6,859)     (153,048) \n   General and administrative expenses     (14,737)     —     (14,737) \n   Share of income from equity accounted joint ventures     16,155     (16,155)     — \n   Amortization of intangible assets     (250)     —     (250) \n   Transaction costs and other related expenses     —     —     — \n   Adjustment to fair value of unit-based compensation     (18)     —     (18) \n   Adjustment to fair value of Exchangeable Units     (237,472)     —     (237,472) \n   Adjustment to fair value of investment properties     29,958     10,020     39,978 \n   Adjustment to fair value of investment in real estate securities     (8,974)     —     (8,974) \n Loss before Income Taxes     (96,232)     —     (96,232) \n   Income tax expense     (1)     —     (1) \n Net Loss   $ (96,233)   $ —   $ (96,233) \n   \n\n\nNet Operating Income (“NOI”), Accounting Basis, is defined as property\nrental revenue including straight-line rental revenue, reimbursed contract\nrevenue and lease surrender revenue, less direct property operating expenses\nand realty taxes, and excludes certain expenses such as interest expense and\nindirect operating expenses in order to provide results that reflect a\nproperty’s operations before consideration of how it is financed or the\ncosts of operating the entity in which it is held. Management believes that\nNOI is an important measure of operating performance for the Trust’s\ncommercial real estate assets that is used by real estate industry analysts,\ninvestors and management, while also being a key input in determining the fair\nvalue of the Choice Properties portfolio.\n\nNOI, Cash Basis, is defined as property rental revenue and reimbursed contract\nrevenue, excluding straight-line rental revenue and lease surrender revenue,\nless direct property operating expenses and realty taxes. Management believes\nNOI, Cash Basis is a useful measure in understanding period-over-period\nchanges in income from operations due to occupancy, rental rates, operating\ncosts and realty taxes.\n\nThe following table reconciles net loss, as determined in accordance with\nGAAP, to Net Operating Income, Cash Basis for the periods ended as indicated:\n For the periods ended March 31 ($ thousands)   Three Months \n     2026     2025   Change $ \n Net Loss   $ (87,194)   $ (96,233)   $ 9,039 \n Residential inventory income     —     —     — \n Interest income     (11,009)     (11,661)     652 \n Investment income     (2,126)     (5,315)     3,189 \n Fee income     (1,167)     (2,470)     1,303 \n Net interest expense and other financing charges     150,063     146,189     3,874 \n General and administrative expenses     16,058     14,737     1,321 \n Share of income from equity accounted joint ventures     2,765     (16,155)     18,920 \n Amortization of intangible assets     250     250     — \n Adjustment to fair value of unit-based compensation     296     18     278 \n Adjustment to fair value of Exchangeable Units     217,683     237,472     (19,789) \n Adjustment to fair value of investment properties     (79,003)     (29,958)     (49,045) \n Adjustment to fair value of investment in real estate securities     49,480     8,974     40,506 \n Income tax expense (recovery)     1     1     — \n Net Operating Income, Accounting Basis - GAAP     256,097     245,849     10,248 \n Straight-line rental revenue     1,104     367     737 \n Lease surrender revenue     (1,926)     (84)     (1,842) \n Net Operating Income, Cash Basis - GAAP     255,275     246,132     9,143 \n Adjustments for equity accounted joint ventures and financial real estate     17,810     15,938     1,872 \n assets \n Net Operating Income, Cash Basis - Proportionate Share   $ 273,085   $ 262,070   $ 11,015 \n   \n\n\nSame-Asset NOI, Cash Basis represents NOI only for those assets that were\nowned and operated by the Trust since January 1, 2025 inclusive.\n\nThe following table reconciles NOI, Cash Basis to Same-Asset NOI, Cash Basis\nfor the periods ended as indicated:\n For the periods ended March 31 ($ thousands)   Three Months \n     2026     2025   Change $ \n Net Operating Income, Cash Basis - Proportionate Share   $ 273,085   $ 262,070   $ 11,015 \n Less:             \n Transactions NOI, Cash Basis - Proportionate Share     (17,553)     (14,084)     (3,469) \n Same-Asset NOI, Cash Basis - Proportionate Share   $ 255,532   $ 247,986   $ 7,546 \n   \n\n\nFunds from Operations (“FFO”) is calculated in accordance with the Real\nProperty Association of Canada’s Funds From Operations (FFO) & Adjusted\nFunds From Operations (AFFO) for IFRS issued in January 2022. Management\nconsiders FFO to be a useful measure of operating performance as it adjusts\nfor items included in net income (or loss) that do not arise from operating\nactivities or do not necessarily provide an accurate depiction of the\nTrust’s past or recurring performance, such as adjustments to fair value of\nExchangeable Units, investment properties, investment in real estate\nsecurities, and unit-based compensation. From time to time, the Trust may\nenter into transactions that materially impact the calculation and are\neliminated from the calculation for management’s review purposes.\n\nManagement uses and believes that FFO is a useful measure of the Trust’s\nperformance that, when compared period over period, reflects the impact on\noperations of trends in occupancy levels, rental rates, operating costs and\nrealty taxes, acquisition activities and interest costs.\n\nThe following table reconciles net loss, as determined in accordance with\nGAAP, to Funds from Operations for the periods ended as indicated:\n For the periods ended March 31 ($ thousands except where otherwise indicated)   Three Months \n     2026     2025   Change $ \n Net Loss   $ (87,194)   $ (96,233)   $ 9,039 \n Add (deduct) impact of the following:             \n Amortization of intangible assets     250     250     — \n Adjustment to fair value of unit-based compensation     296     18     278 \n Adjustment to fair value of Exchangeable Units     217,683     237,472     (19,789) \n Adjustment to fair value of investment properties     (79,003)     (29,958)     (49,045) \n Adjustment to fair value of investment properties to proportionate share     12,575     (10,020)     22,595 \n Adjustment to fair value of investment in real estate securities     49,480     8,974     40,506 \n Interest otherwise capitalized for development in equity accounted joint     2,594     2,496     98 \n ventures \n Exchangeable Units distributions     76,519     75,529     990 \n Internal expenses for leasing     2,819     2,410     409 \n Income tax expense     1     1     — \n Funds from Operations   $ 196,020   $ 190,939   $ 5,081 \n FFO per unit - diluted   $ 0.271   $ 0.264   $ 0.007 \n Weighted average number of units outstanding - diluted((i))     723,810,797     723,770,677     40,120 \n (i) Includes Trust Units and Exchangeable Units.             \n\n\nEarnings before Interest, Taxes, Depreciation, Amortization, and Fair Value\n(“EBITDAFV”) is defined as net income (loss) attributable to Unitholders,\nreversing, where applicable, income taxes, interest expense, amortization\nexpense, depreciation expense, adjustments to fair value and other adjustments\non a proportionate share basis as allowed in the Trust Indentures, as\nsupplemented. Management believes EBITDAFV is useful in assessing the\nTrust’s ability to service its debt, finance capital expenditures and\nprovide distributions to its Unitholders.\n\nTotal Adjusted Debt is defined as variable rate debt (construction loans,\nmortgages, and credit facility) and fixed rate debt (senior unsecured\ndebentures, construction loans and mortgages), as measured on a proportionate\nshare basis, including the impact of other finance charges and defeasance or\nother prepayments of debt. It does not include the Exchangeable Units which\nare included as part of unit equity on account of the Exchangeable Units being\neconomically equivalent and receiving equal distributions to the Trust Units.\n\nThe following table reconciles net loss, as determined in accordance with\nGAAP, to EBITDAFV for the periods ended as indicated:\n     Three Months \n For the periods ended March 31 ($ thousands)     2026     2025   Change $ \n Net Loss   $ (87,194)   $ (96,233)   $ 9,039 \n Add (deduct) impact of the following:             \n Transaction costs and other related expenses     —     —     — \n Adjustment to fair value of unit-based compensation     296     18     278 \n Adjustment to fair value of Exchangeable Units     217,683     237,472     (19,789) \n Adjustment to fair value of investment properties     (79,003)     (29,958)     (49,045) \n Adjustment to fair value of investment properties to proportionate share     12,575     (10,020)     22,595 \n Adjustment to fair value of investment in real estate securities     49,480     8,974     40,506 \n Interest expense on a proportionate share basis     157,560     154,571     2,989 \n Amortization of other assets     293     316     (23) \n Amortization of intangible assets     250     250     — \n Income tax expense     1     1     — \n EBITDAFV - Proportionate Share   $ 271,941   $ 265,391   $ 6,550 \n   \n\n\nNet Asset Value (“NAV”) is an alternative measurement of equity. It is\ncalculated by summing Unitholder’s Equity and the fair value of the\nTrust’s Exchangeable Units. Under IFRS Exchangeable Units are considered\ndebt. The Exchangeable Units are not required to be repaid and the holder of\nthese units has the right to convert them into Units, therefore Management\nconsiders the Exchangeable Units to be equivalent to equity. NAV is a useful\nmeasure as it reflects Management’s view of the intrinsic value of the\nTrust. NAV per unit allows Management to determine if the Trust is trading at\na discount or premium to its intrinsic value.\n\nThe following table reconciles Net Asset Value as at the dates indicated\nbelow:\n               \n ($ thousands except where otherwise indicated)   As at March 31, 2026   As at December 31, 2025   Change $ \n               \n Unitholders’ equity   $ 4,434,568   $ 4,584,809   $ (150,241) \n Exchangeable Units     6,079,281     5,861,598     217,683 \n NAV   $ 10,513,849   $ 10,446,407   $ 67,442 \n NAV per unit   $ 14.53   $ 14.43   $ 0.10 \n Trust Units and Exchangeable Units, end of period     723,810,797     723,810,797     — \n   \n\n\nCautionary Statements Regarding Forward-looking Statements\n\nThis news release contains forward-looking statements relating to Choice\nProperties’ operations and the environment in which the Trust operates,\nwhich are based on management’s expectations, estimates, forecasts and\nprojections. These statements are not guarantees of future performance and\ninvolve risks and uncertainties that are difficult to control or predict.\nTherefore, actual outcomes and results may differ materially from those\nexpressed in these forward-looking statements. Readers, therefore, should not\nplace undue reliance on any such forward-looking statements. Further, a\nforward-looking statement speaks only as of the date on which such statement\nis made. Management undertakes no obligation to publicly update any such\nstatement, to reflect new information or the occurrence of future events or\ncircumstances, except as required by law.\n\nNumerous risks and uncertainties could cause the Trust’s actual results to\ndiffer materially from those expressed, implied or projected in the\nforward-looking statements, including those described in Section 11\n“Enterprise Risks and Risk Management” of the Trust’s MD&A for the\nyear ended December 31, 2025 and those described in the Trust’s Annual\nInformation Form for the year ended December 31, 2025.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260423871719/en/\n(https://www.businesswire.com/news/home/20260423871719/en/)\n\nFor further information, please contact investor@choicereit.ca\n(mailto:investor@choicereit.ca) .\n\nErin Johnston\n\nChief Financial Officer\n\ne: Erin.Johnston@choicereit.ca (mailto:Erin.Johnston@choicereit.ca)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-04-29T20:47:00.290540626Z","server_sent_at_ms":1777495620290},"received_at":"2026-04-29T20:47:00.543Z","source_url":"https://www.businesswire.com/news/home/20260423871719/en/"},"analysis":null,"durationMs":null,"modelName":null}}