{"success":true,"data":{"pressRelease":{"id":"24489","rtpr_id":"nBwNC7kPa","ticker":"SRU_U","exchange":"TSX","all_tickers":["SRU_U"],"title":"SmartCentres Real Estate Investment Trust Releases First Quarter Results for 2026","author":"Business Wire","published_at":"2026-05-06T22:23:00.124Z","article_body":"SmartCentres Real Estate Investment Trust Releases First Quarter Results for\n2026\n\nSmartCentres Real Estate Investment Trust (“SmartCentres”, the “Trust”\nor the “REIT”) (TSX: SRU.UN) is pleased to report its financial and\noperating results for the quarter ended March 31, 2026.\n\nWe are pleased to report a solid start to 2026. Retail demand remains strong\nresulting in exceptional retention of maturing tenancies which has led to\nlease extensions with a compelling average rent growth of 11.5% (excluding\nAnchors). Our focus on value-oriented retail, alongside the ongoing\nenhancement of tenant quality is further strengthening the positioning of our\ncentres in each market we operate; including increased consumer traffic;\nenhancing the long-term value of our portfolio. On the development front, a\nprogram of new retail development is gaining momentum at SmartCentres. We are\nexcited to bring, in the near future, new SmartCentres to Kingston, Ontario,\nLindsay, Ontario and Winnipeg, Manitoba, to name a few as part of an ambitious\ngrowth program fueled by consumer demand for our core large format retailers\nin the categories of grocery, general merchandise, fair price apparel and\nothers. We expect construction to begin later this year in Kingston and\nWinnipeg.\n\n2026 First Quarter Highlights\n\nRetail Operations\n\n\n * In-place and committed occupancy rate of 97.6% as of March 31, 2026 or 98.0%\nas of today.\n\n * Strong tenant base and customer traffic continued to drive Same Properties\nNOI((1)) growth for the three months ended March 31, 2026, which increased by\n1.4% (3.4% excluding Anchors) compared to the same period in 2025. This\nrepresents 3.0% growth over the trailing 12 months (4.8% excluding Anchors),\nreflecting leasing and renewal activity across the retail portfolio and\nimproved occupancy in self-storage, partially offset by tenant turnover and\nhigher expected credit loss (“ECL”) provisions this quarter.\n\n * Extended approximately 80% of leases maturing in 2026, with strong rent growth\nof 11.5% (excluding Anchors) and 5.8% (including Anchors).\n\n * Leasing momentum remained resilient, with approximately 56,000 square feet of\nvacant space leased during the quarter. In addition, growing demand for new\nretail space continues, with approximately 52,000 square feet executed during\nthe quarter.\n\nDevelopment\n\n\n * Construction of the 200,000 square foot retail building pre-leased to Canadian\nTire on Laird Drive in Toronto continues on schedule, with possession expected\nin Q3 2026.\n\n * Acquired an 18.8-acre land parcel in Kingston, Ontario, for approximately $7.1\nmillion, as part of the retail development growth program.\n\n * Construction of self-storage facilities is progressing well at Montreal (Notre\nDame St. W) and Laval E, Quebec, and at Burnaby and Victoria, British\nColumbia. The Montreal and Laval E facilities are expected to open in Q2 2026.\nBoth projects in British Columbia are expected to open in 2027. The Trust is\nalso in the process of obtaining municipal approval for four additional sites\nacross Ontario, British Columbia and Alberta.\n\n * Construction of the ArtWalk condo Tower A in the Vaughan Metropolitan Centre\ncontinues to advance as planned, with approximately 93% of the 340 units\npre-sold. The underground parking structure is completed, and the formwork\nreached the second floor of Tower A during the quarter.\n\nFinancial\n\n\n * Net operating income for the three months ended March 31, 2026 was $137.7\nmillion, representing an increase of $0.9 million, or 0.7%, as compared to the\nsame period in 2025. The increase was primarily attributable to higher base\nrent driven by lease-up and renewal activities across the retail portfolio,\npartially offset by an increase in ECL provision.\n\n * FFO per Unit((1)) and FFO with adjustments per Unit((1)) for the three months\nended March 31, 2026, were $0.54 and $0.52, respectively, compared to $0.56\nand $0.54 for the same period in 2025. The decreases were primarily\nattributable to higher interest and general and administrative expenses,\npartially offset by higher NOI.\n\n * Net income and comprehensive income for the three months ended March 31, 2026\nincreased by $139.5 million as compared to the same period in 2025. The\nincrease was primarily attributable to a $50.3 million fair value gain on\ninvestment properties, representing a $130.4 million increase from the prior\nyear period, reflecting improved valuation parameters and leasing activity, as\nwell as a $10.5 million improvement in the fair value loss on financial\ninstruments to $4.0 million in the current period, primarily due to\nmark-to-market adjustments on interest rate swaps.\n\nSubsequent Event\n\n\n * On April 1, 2026, the Trust entered into agreements with Penguin, effective\nJanuary 1, 2026, establishing a simplified framework, continued leadership of\nits Executive Chairman and CEO through December 31, 2030 and allowing\nmanagement to focus on execution of the Trust’s long-term growth strategy.\nThe new and renegotiated agreements materially reduce related-party complexity\nand cash flow variability by settling all legacy earn-out arrangements,\nterminating all mezzanine loans, simplifying and consolidating certain fees\npaid to Penguin, and renew the non-competition arrangements. The previously\noutstanding voting top-up right also expired as of December 31, 2025 and will\nnot be reinstated. The framework provides improved cash flow visibility,\nenhanced governance oversight, and clearer alignment between management, the\nTrust, and its unitholders.\n\n * On April 10, 2026, the Trust settled $42.4 million of TRS debt and the\ncorresponding TRS receivable. On a pro forma basis, giving effect to the TRS\nsettlement, the Adjusted Debt to Adjusted EBITDA((1)) ratio remains at 9.7x,\nunchanged from the previous quarter.\n (1)   Represents a non-GAAP measure. The Trust’s method of calculating non-GAAP \n measures may differ from other reporting issuers’ methods and, accordingly, \n may not be comparable. For additional information, please see “Non-GAAP \n Measures” in this Press Release. \n\n\nSelected Operational, Development and Financial Information\n (in thousands of dollars, except per Unit and other non-financial data)             \n As at   March 31, 2026   December 31, 2025   March 31, 2025 \n Portfolio Information (Number of properties)             \n Retail properties   155   155   155 \n Office properties   4   4   4 \n Self-storage properties   14   14   11 \n Residential properties   3   3   3 \n Industrial properties   1   1   1 \n Properties under development   23   21   22 \n Total number of properties with an ownership interest   200   198   196 \n Leasing and Operational Information((1))             \n Gross leasable retail, office and industrial area (in thousands of sq. ft.)   35,543   35,585   35,425 \n In-place and committed occupancy rate   97.6 %   98.6 %   98.4 % \n Average lease term to maturity (in years)   4.3   4.3   4.3 \n In-place net retail rental rate excluding Anchors (per occupied sq. ft.)   $24.54   $24.23   $23.89 \n Financial Information             \n Investment properties((2))   10,964,730   10,852,939   10,617,787 \n Total unencumbered assets((3))   10,175,221   10,030,521   9,592,521 \n NAV per Unit - diluted((3))   $36.19   $35.93   $35.51 \n Debt to Aggregate Assets((3)(4)(5))   44.4 %   44.4 %   44.1 % \n Adjusted Debt to Adjusted EBITDA((3)(4)(5))   9.8X   9.7X   9.6X \n Weighted average interest rate((3)(4))   4.01 %   4.00 %   3.93 % \n Weighted average term of debt (in years)   3.1   3.4   3.3 \n Interest coverage ratio((3)(4))   2.6X   2.6X   2.5X \n               \n         Three Months Ended March 31 \n         2026   2025 \n Financial Information             \n Rentals from investment properties and other((2))       231,835   229,338 \n Net income and comprehensive income((2))       129,897   (9,581) \n FFO((3)(4)(6))       98,595   101,919 \n AFFO((3)(4)(6))       95,503   98,426 \n Cash flows provided by operating activities((2))       76,445   81,737 \n Net rental income and other((2))       137,687   136,786 \n NOI((3)(4))       144,823   143,524 \n Change in SPNOI((3)(4))       1.4 %   4.1 % \n Change in SPNOI excluding Anchors((3)(4))       3.4 %   6.7 % \n Weighted average number of units outstanding – diluted((7))       182,366,409   181,412,769 \n Net income and comprehensive income per Unit((2))       $0.73/$0.71   $(0.05)/$(0.05) \n FFO per Unit((3)(4)(6))       $0.55/$0.54   $0.57/$0.56 \n FFO with adjustments per Unit((3)(4))       $0.53/$0.52   $0.54/$0.54 \n AFFO per Unit((3)(4)(6))       $0.54/$0.52   $0.55/$0.54 \n AFFO with adjustments per Unit((3)(4))       $0.51/$0.50   $0.53/$0.52 \n Payout Ratio to AFFO((3)(4)(6))       86.4 %   83.8 % \n Payout Ratio to AFFO with adjustments((3)(4))       90.6 %   88.1 % \n Payout Ratio to cash flows provided by operating activities       107.9 %   100.9 % \n\n (1)   Excluding residential and self-storage areas. \n (2)   Represents a Generally Accepted Accounting Principles (“GAAP”) measure. \n (3)   Represents a non-GAAP measure. The Trust’s method of calculating non-GAAP \n measures may differ from other reporting issuers’ methods and, accordingly, \n may not be comparable. For additional information, please see “Non-GAAP \n Measures” in this Press Release. \n (4)   Includes the Trust’s proportionate share of equity accounted investments. \n (5)   As at March 31, 2026, cash-on-hand of $31.2 million was excluded for the \n purposes of calculating the applicable ratios (December 31, 2025 – $44.6 \n million, March 31, 2024 – $25.6 million). \n (6)   The calculation of the Trust’s FFO and AFFO and related payout ratios, \n including comparative amounts, are financial metrics that were determined \n based on the REALPAC White Paper on FFO and AFFO issued in January 2022 \n (“REALPAC White Paper”). Comparison with other reporting issuers may not \n be appropriate. The payout ratio to AFFO is calculated as declared \n distributions divided by AFFO. \n (7)   The diluted weighted average units outstanding includes the vested portion of \n the deferred units issued pursuant to the DUP, and vested EIP units granted \n pursuant to the EIP. \n\n\nDevelopment and Intensification Summary\n\nThe following table provides additional details on the Trust’s eight\ndevelopment initiatives that are currently under construction or where initial\nsiteworks have begun (in order of estimated initial occupancy/closing date):\n Projects under construction (Location/Project Name)   Type   Trust’s share   Actual / estimated initial occupancy / closing date   % of capital spend   GFA((1))   No. of \n \n \n \n \n(sq. ft.) \nresidential units \n                           \n Mixed-use Developments                         \n Vaughan NW (Phase I & II)   Townhomes   50%   Q1 2024   68%   366,000   174 \n Montreal (Notre-Dame)   Self-storage   50%   Q2 2026   78%   184,000   — \n Laval East   Self-storage   50%   Q2 2026   61%   176,000   — \n Burnaby   Self-storage   50%   Q2 2027   31%   137,000   — \n Victoria   Self-storage   50%   Q3 2027   36%   164,000   — \n Vaughan / ArtWalk   Condo   50%   Q4 2027   41%   300,000   340 \n Ottawa SW   Residential Apartments   50%   Q2 2028   30%   361,000   425 \n Total Mixed-use Developments                   1,688,000   939 \n Retail Development                         \n Toronto (Laird)   Retail   50%   Q3 2026   72%   225,000   — \n\n (1)   GFA represents Gross Floor Area. \n\n\nReconciliations of Non-GAAP Measures\n\nThe following tables reconcile the non-GAAP measures to the most comparable\nGAAP measures for the three months ended March 31, 2026, and the comparable\nperiod in 2025. Such measures do not have a standardized meaning prescribed by\nIFRS and may not be comparable to similar measures disclosed by other issuers.\n (in thousands of dollars)   Three Months Ended March 31, 2026   Three Months Ended March 31, 2025 \n     GAAP Basis   Proportionate Share Reconciliation   Total Proportionate Share((1))   GAAP Basis   Proportionate Share Reconciliation   Total Proportionate Share((1)) \n Net operating income                         \n Rentals from investment properties and other   $231,414   $13,740   $245,154   $227,324   $12,977   $240,301 \n Property operating costs and other   (93,680)   (6,610)   (100,290)   (91,089)   (6,246)   (97,335) \n     $137,734   $7,130   $144,864   $136,235   $6,731   $142,966 \n Residential sales revenue and other((2))   421   7   428   2,014   9   2,023 \n Residential cost of sales and other   (468)   (1)   (469)   (1,463)   (2)   (1,465) \n     $(47)   $6   $(41)   $551   $7   $558 \n NOI   $137,687   $7,136   $144,823   $136,786   $6,738   $143,524 \n\n (1)   This column contains non-GAAP measures because it includes figures that are \n recorded in equity accounted investments. The Trust’s method of calculating \n non-GAAP measures may differ from other reporting issuers’ methods and, \n accordingly, may not be comparable. For additional information, please see \n “Non-GAAP Measures” in this Press Release. \n (2)   Includes additional partnership profit and other revenues. \n\n\nSame Properties NOI\n     Three Months Ended March 31 \n (in thousands of dollars)   2026   2025 \n NOI   $137,687   $136,786 \n NOI from equity accounted investments((1))   7,136   6,738 \n Total portfolio NOI before adjustments((1))   $144,823   $143,524 \n Adjustments:         \n Lease termination   (576)   (327) \n Net profit (loss) on residential closings   41   (558) \n Other adjustments((2))   2,347   1,908 \n Total portfolio NOI after adjustments((1))   $146,635   $144,547 \n NOI sourced from acquisitions, dispositions, Earnouts and developments   (1,742)   (1,688) \n Same Properties NOI((1))   $144,893   $142,859 \n\n (1)   Represents a non-GAAP measure. The Trust’s method of calculating non-GAAP \n measures may differ from other reporting issuers’ methods and, accordingly, \n may not be comparable. For additional information, please see “Non-GAAP \n Measures” in this Press Release. \n (2)   Includes items such as adjustments relating to royalties, straight-line rent \n and amortization of tenant incentives. \n\n\nReconciliation of FFO\n     Three Months Ended March 31 \n (in thousands of dollars)   2026   2025 \n Net income (loss) and comprehensive income (loss)   $129,897   $(9,581) \n Add (Deduct):         \n Fair value adjustment on investment properties and financial instruments((1))   (46,293)   94,659 \n Gain on derivative – TRS   4,524   4,323 \n Gain on sale of investment properties   (6)   (7) \n Amortization of intangible assets and tenant improvement allowance   2,398   2,490 \n Distributions on Units classified as liabilities and vested deferred units and   5,472   5,071 \n EIP units \n Salaries and related costs attributed to leasing activities((2))   2,363   2,383 \n Adjustments relating to equity accounted investments((3))   240   2,581 \n FFO((4))   $98,595   $101,919 \n Add (Deduct) non-recurring adjustments:         \n Gain on derivative – TRS   (4,524)   (4,323) \n FFO sourced from condo and townhome closings   41   (551) \n Transactional FFO – sale of land((4))   14   42 \n FFO with adjustments((4))   $94,126   $97,087 \n\n (1)   Includes fair value adjustments on investment properties and financial \n instruments. Fair value adjustment on investment properties is described in \n “Investment Properties” in the Trust’s MD&A. Fair value adjustment \n on financial instruments comprises the following financial instruments: units \n classified as liabilities, DUP, EIP, TRS, and interest rate swap agreements. \n The significant assumptions made in determining the fair value are more \n thoroughly described in the Trust’s unaudited interim condensed consolidated \n financial statements for the three months ended March 31, 2026. For details, \n please see discussion in “Results of Operations” section in the MD&A. \n (2)   Salaries and related costs attributed to leasing activities of $2.4 million \n were incurred in the three months ended March 31, 2026 (three months ended \n March 31, 2025 – $2.4 million) and were eligible to be added back to FFO \n based on the definition of FFO, in the REALPAC White Paper, which provided for \n an adjustment to incremental leasing expenses for the cost of salaried staff. \n This adjustment to FFO results in more comparability between Canadian publicly \n traded real estate entities that expensed their internal leasing departments \n and those that capitalized external leasing expenses. \n (3)   Includes tenant improvement amortization, indirect interest with respect to \n the development portion, fair value adjustment on investment properties, loss \n (gain) on sale of investment properties, and adjustment for supplemental \n costs. \n (4)   Represents a non-GAAP measure. The Trust’s method of calculating non-GAAP \n measures may differ from other reporting issuers’ methods and, accordingly, \n may not be comparable. For definitions and basis of presentation of the \n Trust’s non-GAAP measures, refer to “Presentation of Certain Terms \n Including Non-GAAP Measures” and “Non-GAAP Measures” in the MD&A. \n\n\nReconciliation of AFFO\n     Three Months Ended March 31 \n (in thousands of dollars)   2026   2025 \n FFO((1))   $98,595   $101,919 \n Add (Deduct):         \n Straight-line rents   (244)   (431) \n Adjusted salaries and related costs attributed to leasing   (2,363)   (2,383) \n Capital expenditures, leasing commissions, and tenant improvements   (485)   (679) \n AFFO((1))   $95,503   $98,426 \n Add (Deduct) non-recurring adjustments:         \n Gain on derivative – TRS   (4,524)   (4,323) \n FFO sourced from condo and townhome closings   41   (551) \n Transactional FFO – sale of land((1))   14   42 \n AFFO with adjustments((1))   $91,034   $93,594 \n\n (1)   Represents a non-GAAP measure. The Trust’s method of calculating non-GAAP \n measures may differ from other reporting issuers’ methods and, accordingly, \n may not be comparable. For additional information, please see “Non-GAAP \n Measures” in this Press Release. \n\n\nAdjusted EBITDA\n\nThe following table presents a reconciliation of net income and comprehensive\nincome to Adjusted EBITDA:\n     Rolling 12 Months Ended \n (in thousands of dollars)   March 31, 2026   March 31, 2025 \n Net income and comprehensive income   $450,232   $303,663 \n Add (Deduct) the following items:         \n Net interest expense   200,062   194,196 \n Amortization of equipment, intangible assets and tenant improvements   12,359   12,367 \n Fair value adjustments on investment properties and financial instruments   (98,568)   39,993 \n Adjustment for supplemental costs   2,413   4,107 \n Gain on sale of investment properties   (1,094)   (25) \n Adjusted EBITDA((1))   $565,404   $554,301 \n\n (1)   Represents a non-GAAP measure. The Trust’s method of calculating non-GAAP \n measures may differ from other reporting issuers’ methods and, accordingly, \n may not be comparable. For additional information, please see “Non-GAAP \n Measures” in this Press Release. \n\n\nNet Asset Value\n (in thousands of dollars, except per Unit information)   March 31, 2026   December 31, 2025 \n Total equity   $6,397,338   $6,346,305 \n LP Units classified as liabilities   208,184   201,229 \n NAV((1))   $6,605,522   $6,547,534 \n Units outstanding - diluted((2))   182,520,891   182,242,010 \n NAV per Unit - diluted((1))   $36.19   $35.93 \n\n (1)   Represents a non-GAAP measure. The Trust’s method of calculating non-GAAP \n measures may differ from other reporting issuers’ methods and, accordingly, \n may not be comparable. For additional information, please see “Non-GAAP \n Measures” in this Press Release. \n (2)   Total diluted Units outstanding include Trust Units and LP Units, including \n Units classified as liabilities, vested portion of the deferred units issued \n pursuant to the deferred unit plan and vested EIPs granted pursuant to the \n equity incentive plan. \n\n\nConference Call\n\nManagement will hold a conference call on Thursday, May 7, 2026 at 3:00 p.m.\n(ET).\n\nInterested parties are invited to access the call by dialing 1-855-353-9183\nand then keying in the participant access code 72512#.\n\nA recording of this call will be made available Thursday, May 7, 2026 through\nto Thursday, May 14, 2026. To access the recording, please call\n1-855-201-2300, enter the conference access code 72512# and then key in the\nplayback access code 72512#.\n\nAbout SmartCentres\n\nSmartCentres is one of Canada’s largest fully integrated REITs, with a\nbest-in-class and growing mixed-use portfolio featuring 200 strategically\nlocated properties in communities across the country. SmartCentres has\napproximately $12.3 billion in assets and owns 35.5 million square feet of\nincome producing value-oriented retail and first-class office properties with\n97.6% in place and committed occupancy, on 3,500 acres of owned land across\nCanada.\n\nNon-GAAP Measures\n\nThe non-GAAP measures used in this Press Release, including but not limited\nto, AFFO, AFFO with adjustments, AFFO per Unit, AFFO with adjustments per\nUnit, Payout Ratio to AFFO, Payout Ratio to AFFO with adjustments,\nUnencumbered Assets, NOI, Debt to Aggregate Assets, Interest Coverage Ratio,\nAdjusted Debt to Adjusted EBITDA, Unsecured/Secured Debt Ratio, FFO, FFO with\nadjustments, FFO per Unit, FFO with adjustments per Unit, Net Asset Value\n(“NAV”), Same Properties NOI, Same Properties NOI excluding Anchors, Debt\nto Gross Book Value, Weighted Average Interest Rate, Transactional FFO, and\nTotal Proportionate Share, do not have any standardized meaning prescribed by\nInternational Financial Reporting Standards (“IFRS”) and are therefore\nunlikely to be comparable to similar measures presented by other issuers.\nAdditional information regarding these non-GAAP measures is available in the\nManagement’s Discussion and Analysis of the Trust for the three months ended\nMarch 31, 2026, dated May 6, 2026 (the “MD&A”), and is incorporated by\nreference. The information is found in the “Presentation of Certain Terms\nIncluding Non-GAAP Measures” and “Non-GAAP Measures” sections of the\nMD&A, which is available on SEDAR+ at www.sedarplus.ca\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.sedarplus.ca&esheet=54530844&newsitemid=20260506758739&lan=en-US&anchor=www.sedarplus.ca&index=1&md5=5866d8fc203cabd70ec2b7009cf3b289)\n. Reconciliations of non-GAAP financial measures to the most directly\ncomparable IFRS measures are found in “Reconciliations of Non-GAAP\nMeasures” of this Press Release.\n\nFull reports of the financial results of the Trust for the three months ended\nMarch 31, 2026 are outlined in the unaudited interim condensed consolidated\nfinancial statements and the related MD&A of the Trust for the three\nmonths ended March 31, 2026, which are available on SEDAR+ at www.sedarplus.ca\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.sedarplus.ca&esheet=54530844&newsitemid=20260506758739&lan=en-US&anchor=www.sedarplus.ca&index=2&md5=b7cdbf6334d91f68f735258df98508bc)\n.\n\nCautionary Statements Regarding Forward-looking Statements\n\nCertain statements in this Press Release are \"forward-looking statements\" that\nreflect management's expectations regarding the Trust's future growth, results\nof operations, performance and business prospects and opportunities. More\nspecifically, certain statements including, but not limited to, statements\nrelated to SmartCentres’ expectations relating to cash collections,\nSmartCentres’ expected or planned development plans and joint venture\nprojects, including the described type, scope, costs and other financial\nmetrics and the expected timing of construction and condo closings and\nstatements that contain words such as \"could\", \"should\", \"can\", \"anticipate\",\n\"expect\", \"believe\", \"will\", \"may\" and similar expressions and statements\nrelating to matters that are not historical facts, constitute \"forward-looking\nstatements\". These forward-looking statements are presented for the purpose of\nassisting the Trust's Unitholders and financial analysts in understanding the\nTrust's operating environment and may not be appropriate for other purposes.\nSuch forward-looking statements reflect management's current beliefs and are\nbased on information currently available to management.\n\nHowever, such forward-looking statements involve significant risks and\nuncertainties. A number of factors could cause actual results to differ\nmaterially from the results discussed in the forward-looking statements,\nincluding risks associated with potential acquisitions not being completed or\nnot being completed on the contemplated terms, public health crises, real\nproperty ownership and development, debt and equity financing for development,\ninterest and financing costs, construction and development risks, and the\nability to obtain commercial and municipal consents for development. These\nrisks and others are more fully discussed under the heading “Risks and\nUncertainties” and elsewhere in SmartCentres’ most recent Management’s\nDiscussion and Analysis, as well as under the heading “Risk Factors” in\nSmartCentres’ most recent annual information form. Although the\nforward-looking statements contained in this Press Release are based on what\nmanagement believes to be reasonable assumptions, SmartCentres cannot assure\ninvestors that actual results will be consistent with these forward-looking\nstatements. The forward-looking statements contained herein are expressly\nqualified in their entirety by this cautionary statement. These\nforward-looking statements are made as at the date of this Press Release and\nSmartCentres assumes no obligation to update or revise them to reflect new\nevents or circumstances unless otherwise required by applicable securities\nlegislation.\n\nMaterial factors or assumptions that were applied in drawing a conclusion or\nmaking an estimate set out in the forward-looking information may include, but\nare not limited to: a stable retail environment; a continuing trend toward\nland use intensification, including residential development in urban markets\nand continued growth along transportation nodes; access to equity and debt\ncapital markets to fund, at acceptable costs, future capital requirements and\nto enable our refinancing of debts as they mature; that requisite consents for\ndevelopment will be obtained in the ordinary course, construction and\npermitting costs consistent with the past year and recent inflation trends.\n\nFor information, visit www.smartcentres.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.smartcentres.com&esheet=54530844&newsitemid=20260506758739&lan=en-US&anchor=www.smartcentres.com&index=3&md5=05e17c75ceb3e8a7f4a779c86cdc4661)\n.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260506758739/en/\n(https://www.businesswire.com/news/home/20260506758739/en/)\n\nMitchell Goldhar\n\nExecutive Chairman and CEO\n\n(905) 326-6400 ext. 7674\n\nmgoldhar@smartcentres.com (mailto:mgoldhar@smartcentres.com)\n\nPeter Slan\n\nChief Financial Officer\n\n(905) 326-6400 ext. 7571\n\npslan@smartcentres.com (mailto:pslan@smartcentres.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBwNC7kPa","title":"SmartCentres Real Estate Investment Trust Releases First Quarter Results for 2026","author":"Business Wire","ticker":"SRU_U","created":"2026-05-06T22:23:00.124Z","tickers":["SRU_U"],"exchange":"TSX","article_body":"SmartCentres Real Estate Investment Trust Releases First Quarter Results for\n2026\n\nSmartCentres Real Estate Investment Trust (“SmartCentres”, the “Trust”\nor the “REIT”) (TSX: SRU.UN) is pleased to report its financial and\noperating results for the quarter ended March 31, 2026.\n\nWe are pleased to report a solid start to 2026. Retail demand remains strong\nresulting in exceptional retention of maturing tenancies which has led to\nlease extensions with a compelling average rent growth of 11.5% (excluding\nAnchors). Our focus on value-oriented retail, alongside the ongoing\nenhancement of tenant quality is further strengthening the positioning of our\ncentres in each market we operate; including increased consumer traffic;\nenhancing the long-term value of our portfolio. On the development front, a\nprogram of new retail development is gaining momentum at SmartCentres. We are\nexcited to bring, in the near future, new SmartCentres to Kingston, Ontario,\nLindsay, Ontario and Winnipeg, Manitoba, to name a few as part of an ambitious\ngrowth program fueled by consumer demand for our core large format retailers\nin the categories of grocery, general merchandise, fair price apparel and\nothers. We expect construction to begin later this year in Kingston and\nWinnipeg.\n\n2026 First Quarter Highlights\n\nRetail Operations\n\n\n * In-place and committed occupancy rate of 97.6% as of March 31, 2026 or 98.0%\nas of today.\n\n * Strong tenant base and customer traffic continued to drive Same Properties\nNOI((1)) growth for the three months ended March 31, 2026, which increased by\n1.4% (3.4% excluding Anchors) compared to the same period in 2025. This\nrepresents 3.0% growth over the trailing 12 months (4.8% excluding Anchors),\nreflecting leasing and renewal activity across the retail portfolio and\nimproved occupancy in self-storage, partially offset by tenant turnover and\nhigher expected credit loss (“ECL”) provisions this quarter.\n\n * Extended approximately 80% of leases maturing in 2026, with strong rent growth\nof 11.5% (excluding Anchors) and 5.8% (including Anchors).\n\n * Leasing momentum remained resilient, with approximately 56,000 square feet of\nvacant space leased during the quarter. In addition, growing demand for new\nretail space continues, with approximately 52,000 square feet executed during\nthe quarter.\n\nDevelopment\n\n\n * Construction of the 200,000 square foot retail building pre-leased to Canadian\nTire on Laird Drive in Toronto continues on schedule, with possession expected\nin Q3 2026.\n\n * Acquired an 18.8-acre land parcel in Kingston, Ontario, for approximately $7.1\nmillion, as part of the retail development growth program.\n\n * Construction of self-storage facilities is progressing well at Montreal (Notre\nDame St. W) and Laval E, Quebec, and at Burnaby and Victoria, British\nColumbia. The Montreal and Laval E facilities are expected to open in Q2 2026.\nBoth projects in British Columbia are expected to open in 2027. The Trust is\nalso in the process of obtaining municipal approval for four additional sites\nacross Ontario, British Columbia and Alberta.\n\n * Construction of the ArtWalk condo Tower A in the Vaughan Metropolitan Centre\ncontinues to advance as planned, with approximately 93% of the 340 units\npre-sold. The underground parking structure is completed, and the formwork\nreached the second floor of Tower A during the quarter.\n\nFinancial\n\n\n * Net operating income for the three months ended March 31, 2026 was $137.7\nmillion, representing an increase of $0.9 million, or 0.7%, as compared to the\nsame period in 2025. The increase was primarily attributable to higher base\nrent driven by lease-up and renewal activities across the retail portfolio,\npartially offset by an increase in ECL provision.\n\n * FFO per Unit((1)) and FFO with adjustments per Unit((1)) for the three months\nended March 31, 2026, were $0.54 and $0.52, respectively, compared to $0.56\nand $0.54 for the same period in 2025. The decreases were primarily\nattributable to higher interest and general and administrative expenses,\npartially offset by higher NOI.\n\n * Net income and comprehensive income for the three months ended March 31, 2026\nincreased by $139.5 million as compared to the same period in 2025. The\nincrease was primarily attributable to a $50.3 million fair value gain on\ninvestment properties, representing a $130.4 million increase from the prior\nyear period, reflecting improved valuation parameters and leasing activity, as\nwell as a $10.5 million improvement in the fair value loss on financial\ninstruments to $4.0 million in the current period, primarily due to\nmark-to-market adjustments on interest rate swaps.\n\nSubsequent Event\n\n\n * On April 1, 2026, the Trust entered into agreements with Penguin, effective\nJanuary 1, 2026, establishing a simplified framework, continued leadership of\nits Executive Chairman and CEO through December 31, 2030 and allowing\nmanagement to focus on execution of the Trust’s long-term growth strategy.\nThe new and renegotiated agreements materially reduce related-party complexity\nand cash flow variability by settling all legacy earn-out arrangements,\nterminating all mezzanine loans, simplifying and consolidating certain fees\npaid to Penguin, and renew the non-competition arrangements. The previously\noutstanding voting top-up right also expired as of December 31, 2025 and will\nnot be reinstated. The framework provides improved cash flow visibility,\nenhanced governance oversight, and clearer alignment between management, the\nTrust, and its unitholders.\n\n * On April 10, 2026, the Trust settled $42.4 million of TRS debt and the\ncorresponding TRS receivable. On a pro forma basis, giving effect to the TRS\nsettlement, the Adjusted Debt to Adjusted EBITDA((1)) ratio remains at 9.7x,\nunchanged from the previous quarter.\n (1)   Represents a non-GAAP measure. The Trust’s method of calculating non-GAAP \n measures may differ from other reporting issuers’ methods and, accordingly, \n may not be comparable. For additional information, please see “Non-GAAP \n Measures” in this Press Release. \n\n\nSelected Operational, Development and Financial Information\n (in thousands of dollars, except per Unit and other non-financial data)             \n As at   March 31, 2026   December 31, 2025   March 31, 2025 \n Portfolio Information (Number of properties)             \n Retail properties   155   155   155 \n Office properties   4   4   4 \n Self-storage properties   14   14   11 \n Residential properties   3   3   3 \n Industrial properties   1   1   1 \n Properties under development   23   21   22 \n Total number of properties with an ownership interest   200   198   196 \n Leasing and Operational Information((1))             \n Gross leasable retail, office and industrial area (in thousands of sq. ft.)   35,543   35,585   35,425 \n In-place and committed occupancy rate   97.6 %   98.6 %   98.4 % \n Average lease term to maturity (in years)   4.3   4.3   4.3 \n In-place net retail rental rate excluding Anchors (per occupied sq. ft.)   $24.54   $24.23   $23.89 \n Financial Information             \n Investment properties((2))   10,964,730   10,852,939   10,617,787 \n Total unencumbered assets((3))   10,175,221   10,030,521   9,592,521 \n NAV per Unit - diluted((3))   $36.19   $35.93   $35.51 \n Debt to Aggregate Assets((3)(4)(5))   44.4 %   44.4 %   44.1 % \n Adjusted Debt to Adjusted EBITDA((3)(4)(5))   9.8X   9.7X   9.6X \n Weighted average interest rate((3)(4))   4.01 %   4.00 %   3.93 % \n Weighted average term of debt (in years)   3.1   3.4   3.3 \n Interest coverage ratio((3)(4))   2.6X   2.6X   2.5X \n               \n         Three Months Ended March 31 \n         2026   2025 \n Financial Information             \n Rentals from investment properties and other((2))       231,835   229,338 \n Net income and comprehensive income((2))       129,897   (9,581) \n FFO((3)(4)(6))       98,595   101,919 \n AFFO((3)(4)(6))       95,503   98,426 \n Cash flows provided by operating activities((2))       76,445   81,737 \n Net rental income and other((2))       137,687   136,786 \n NOI((3)(4))       144,823   143,524 \n Change in SPNOI((3)(4))       1.4 %   4.1 % \n Change in SPNOI excluding Anchors((3)(4))       3.4 %   6.7 % \n Weighted average number of units outstanding – diluted((7))       182,366,409   181,412,769 \n Net income and comprehensive income per Unit((2))       $0.73/$0.71   $(0.05)/$(0.05) \n FFO per Unit((3)(4)(6))       $0.55/$0.54   $0.57/$0.56 \n FFO with adjustments per Unit((3)(4))       $0.53/$0.52   $0.54/$0.54 \n AFFO per Unit((3)(4)(6))       $0.54/$0.52   $0.55/$0.54 \n AFFO with adjustments per Unit((3)(4))       $0.51/$0.50   $0.53/$0.52 \n Payout Ratio to AFFO((3)(4)(6))       86.4 %   83.8 % \n Payout Ratio to AFFO with adjustments((3)(4))       90.6 %   88.1 % \n Payout Ratio to cash flows provided by operating activities       107.9 %   100.9 % \n\n (1)   Excluding residential and self-storage areas. \n (2)   Represents a Generally Accepted Accounting Principles (“GAAP”) measure. \n (3)   Represents a non-GAAP measure. The Trust’s method of calculating non-GAAP \n measures may differ from other reporting issuers’ methods and, accordingly, \n may not be comparable. For additional information, please see “Non-GAAP \n Measures” in this Press Release. \n (4)   Includes the Trust’s proportionate share of equity accounted investments. \n (5)   As at March 31, 2026, cash-on-hand of $31.2 million was excluded for the \n purposes of calculating the applicable ratios (December 31, 2025 – $44.6 \n million, March 31, 2024 – $25.6 million). \n (6)   The calculation of the Trust’s FFO and AFFO and related payout ratios, \n including comparative amounts, are financial metrics that were determined \n based on the REALPAC White Paper on FFO and AFFO issued in January 2022 \n (“REALPAC White Paper”). Comparison with other reporting issuers may not \n be appropriate. The payout ratio to AFFO is calculated as declared \n distributions divided by AFFO. \n (7)   The diluted weighted average units outstanding includes the vested portion of \n the deferred units issued pursuant to the DUP, and vested EIP units granted \n pursuant to the EIP. \n\n\nDevelopment and Intensification Summary\n\nThe following table provides additional details on the Trust’s eight\ndevelopment initiatives that are currently under construction or where initial\nsiteworks have begun (in order of estimated initial occupancy/closing date):\n Projects under construction (Location/Project Name)   Type   Trust’s share   Actual / estimated initial occupancy / closing date   % of capital spend   GFA((1))   No. of \n \n \n \n \n(sq. ft.) \nresidential units \n                           \n Mixed-use Developments                         \n Vaughan NW (Phase I & II)   Townhomes   50%   Q1 2024   68%   366,000   174 \n Montreal (Notre-Dame)   Self-storage   50%   Q2 2026   78%   184,000   — \n Laval East   Self-storage   50%   Q2 2026   61%   176,000   — \n Burnaby   Self-storage   50%   Q2 2027   31%   137,000   — \n Victoria   Self-storage   50%   Q3 2027   36%   164,000   — \n Vaughan / ArtWalk   Condo   50%   Q4 2027   41%   300,000   340 \n Ottawa SW   Residential Apartments   50%   Q2 2028   30%   361,000   425 \n Total Mixed-use Developments                   1,688,000   939 \n Retail Development                         \n Toronto (Laird)   Retail   50%   Q3 2026   72%   225,000   — \n\n (1)   GFA represents Gross Floor Area. \n\n\nReconciliations of Non-GAAP Measures\n\nThe following tables reconcile the non-GAAP measures to the most comparable\nGAAP measures for the three months ended March 31, 2026, and the comparable\nperiod in 2025. Such measures do not have a standardized meaning prescribed by\nIFRS and may not be comparable to similar measures disclosed by other issuers.\n (in thousands of dollars)   Three Months Ended March 31, 2026   Three Months Ended March 31, 2025 \n     GAAP Basis   Proportionate Share Reconciliation   Total Proportionate Share((1))   GAAP Basis   Proportionate Share Reconciliation   Total Proportionate Share((1)) \n Net operating income                         \n Rentals from investment properties and other   $231,414   $13,740   $245,154   $227,324   $12,977   $240,301 \n Property operating costs and other   (93,680)   (6,610)   (100,290)   (91,089)   (6,246)   (97,335) \n     $137,734   $7,130   $144,864   $136,235   $6,731   $142,966 \n Residential sales revenue and other((2))   421   7   428   2,014   9   2,023 \n Residential cost of sales and other   (468)   (1)   (469)   (1,463)   (2)   (1,465) \n     $(47)   $6   $(41)   $551   $7   $558 \n NOI   $137,687   $7,136   $144,823   $136,786   $6,738   $143,524 \n\n (1)   This column contains non-GAAP measures because it includes figures that are \n recorded in equity accounted investments. The Trust’s method of calculating \n non-GAAP measures may differ from other reporting issuers’ methods and, \n accordingly, may not be comparable. For additional information, please see \n “Non-GAAP Measures” in this Press Release. \n (2)   Includes additional partnership profit and other revenues. \n\n\nSame Properties NOI\n     Three Months Ended March 31 \n (in thousands of dollars)   2026   2025 \n NOI   $137,687   $136,786 \n NOI from equity accounted investments((1))   7,136   6,738 \n Total portfolio NOI before adjustments((1))   $144,823   $143,524 \n Adjustments:         \n Lease termination   (576)   (327) \n Net profit (loss) on residential closings   41   (558) \n Other adjustments((2))   2,347   1,908 \n Total portfolio NOI after adjustments((1))   $146,635   $144,547 \n NOI sourced from acquisitions, dispositions, Earnouts and developments   (1,742)   (1,688) \n Same Properties NOI((1))   $144,893   $142,859 \n\n (1)   Represents a non-GAAP measure. The Trust’s method of calculating non-GAAP \n measures may differ from other reporting issuers’ methods and, accordingly, \n may not be comparable. For additional information, please see “Non-GAAP \n Measures” in this Press Release. \n (2)   Includes items such as adjustments relating to royalties, straight-line rent \n and amortization of tenant incentives. \n\n\nReconciliation of FFO\n     Three Months Ended March 31 \n (in thousands of dollars)   2026   2025 \n Net income (loss) and comprehensive income (loss)   $129,897   $(9,581) \n Add (Deduct):         \n Fair value adjustment on investment properties and financial instruments((1))   (46,293)   94,659 \n Gain on derivative – TRS   4,524   4,323 \n Gain on sale of investment properties   (6)   (7) \n Amortization of intangible assets and tenant improvement allowance   2,398   2,490 \n Distributions on Units classified as liabilities and vested deferred units and   5,472   5,071 \n EIP units \n Salaries and related costs attributed to leasing activities((2))   2,363   2,383 \n Adjustments relating to equity accounted investments((3))   240   2,581 \n FFO((4))   $98,595   $101,919 \n Add (Deduct) non-recurring adjustments:         \n Gain on derivative – TRS   (4,524)   (4,323) \n FFO sourced from condo and townhome closings   41   (551) \n Transactional FFO – sale of land((4))   14   42 \n FFO with adjustments((4))   $94,126   $97,087 \n\n (1)   Includes fair value adjustments on investment properties and financial \n instruments. Fair value adjustment on investment properties is described in \n “Investment Properties” in the Trust’s MD&A. Fair value adjustment \n on financial instruments comprises the following financial instruments: units \n classified as liabilities, DUP, EIP, TRS, and interest rate swap agreements. \n The significant assumptions made in determining the fair value are more \n thoroughly described in the Trust’s unaudited interim condensed consolidated \n financial statements for the three months ended March 31, 2026. For details, \n please see discussion in “Results of Operations” section in the MD&A. \n (2)   Salaries and related costs attributed to leasing activities of $2.4 million \n were incurred in the three months ended March 31, 2026 (three months ended \n March 31, 2025 – $2.4 million) and were eligible to be added back to FFO \n based on the definition of FFO, in the REALPAC White Paper, which provided for \n an adjustment to incremental leasing expenses for the cost of salaried staff. \n This adjustment to FFO results in more comparability between Canadian publicly \n traded real estate entities that expensed their internal leasing departments \n and those that capitalized external leasing expenses. \n (3)   Includes tenant improvement amortization, indirect interest with respect to \n the development portion, fair value adjustment on investment properties, loss \n (gain) on sale of investment properties, and adjustment for supplemental \n costs. \n (4)   Represents a non-GAAP measure. The Trust’s method of calculating non-GAAP \n measures may differ from other reporting issuers’ methods and, accordingly, \n may not be comparable. For definitions and basis of presentation of the \n Trust’s non-GAAP measures, refer to “Presentation of Certain Terms \n Including Non-GAAP Measures” and “Non-GAAP Measures” in the MD&A. \n\n\nReconciliation of AFFO\n     Three Months Ended March 31 \n (in thousands of dollars)   2026   2025 \n FFO((1))   $98,595   $101,919 \n Add (Deduct):         \n Straight-line rents   (244)   (431) \n Adjusted salaries and related costs attributed to leasing   (2,363)   (2,383) \n Capital expenditures, leasing commissions, and tenant improvements   (485)   (679) \n AFFO((1))   $95,503   $98,426 \n Add (Deduct) non-recurring adjustments:         \n Gain on derivative – TRS   (4,524)   (4,323) \n FFO sourced from condo and townhome closings   41   (551) \n Transactional FFO – sale of land((1))   14   42 \n AFFO with adjustments((1))   $91,034   $93,594 \n\n (1)   Represents a non-GAAP measure. The Trust’s method of calculating non-GAAP \n measures may differ from other reporting issuers’ methods and, accordingly, \n may not be comparable. For additional information, please see “Non-GAAP \n Measures” in this Press Release. \n\n\nAdjusted EBITDA\n\nThe following table presents a reconciliation of net income and comprehensive\nincome to Adjusted EBITDA:\n     Rolling 12 Months Ended \n (in thousands of dollars)   March 31, 2026   March 31, 2025 \n Net income and comprehensive income   $450,232   $303,663 \n Add (Deduct) the following items:         \n Net interest expense   200,062   194,196 \n Amortization of equipment, intangible assets and tenant improvements   12,359   12,367 \n Fair value adjustments on investment properties and financial instruments   (98,568)   39,993 \n Adjustment for supplemental costs   2,413   4,107 \n Gain on sale of investment properties   (1,094)   (25) \n Adjusted EBITDA((1))   $565,404   $554,301 \n\n (1)   Represents a non-GAAP measure. The Trust’s method of calculating non-GAAP \n measures may differ from other reporting issuers’ methods and, accordingly, \n may not be comparable. For additional information, please see “Non-GAAP \n Measures” in this Press Release. \n\n\nNet Asset Value\n (in thousands of dollars, except per Unit information)   March 31, 2026   December 31, 2025 \n Total equity   $6,397,338   $6,346,305 \n LP Units classified as liabilities   208,184   201,229 \n NAV((1))   $6,605,522   $6,547,534 \n Units outstanding - diluted((2))   182,520,891   182,242,010 \n NAV per Unit - diluted((1))   $36.19   $35.93 \n\n (1)   Represents a non-GAAP measure. The Trust’s method of calculating non-GAAP \n measures may differ from other reporting issuers’ methods and, accordingly, \n may not be comparable. For additional information, please see “Non-GAAP \n Measures” in this Press Release. \n (2)   Total diluted Units outstanding include Trust Units and LP Units, including \n Units classified as liabilities, vested portion of the deferred units issued \n pursuant to the deferred unit plan and vested EIPs granted pursuant to the \n equity incentive plan. \n\n\nConference Call\n\nManagement will hold a conference call on Thursday, May 7, 2026 at 3:00 p.m.\n(ET).\n\nInterested parties are invited to access the call by dialing 1-855-353-9183\nand then keying in the participant access code 72512#.\n\nA recording of this call will be made available Thursday, May 7, 2026 through\nto Thursday, May 14, 2026. To access the recording, please call\n1-855-201-2300, enter the conference access code 72512# and then key in the\nplayback access code 72512#.\n\nAbout SmartCentres\n\nSmartCentres is one of Canada’s largest fully integrated REITs, with a\nbest-in-class and growing mixed-use portfolio featuring 200 strategically\nlocated properties in communities across the country. SmartCentres has\napproximately $12.3 billion in assets and owns 35.5 million square feet of\nincome producing value-oriented retail and first-class office properties with\n97.6% in place and committed occupancy, on 3,500 acres of owned land across\nCanada.\n\nNon-GAAP Measures\n\nThe non-GAAP measures used in this Press Release, including but not limited\nto, AFFO, AFFO with adjustments, AFFO per Unit, AFFO with adjustments per\nUnit, Payout Ratio to AFFO, Payout Ratio to AFFO with adjustments,\nUnencumbered Assets, NOI, Debt to Aggregate Assets, Interest Coverage Ratio,\nAdjusted Debt to Adjusted EBITDA, Unsecured/Secured Debt Ratio, FFO, FFO with\nadjustments, FFO per Unit, FFO with adjustments per Unit, Net Asset Value\n(“NAV”), Same Properties NOI, Same Properties NOI excluding Anchors, Debt\nto Gross Book Value, Weighted Average Interest Rate, Transactional FFO, and\nTotal Proportionate Share, do not have any standardized meaning prescribed by\nInternational Financial Reporting Standards (“IFRS”) and are therefore\nunlikely to be comparable to similar measures presented by other issuers.\nAdditional information regarding these non-GAAP measures is available in the\nManagement’s Discussion and Analysis of the Trust for the three months ended\nMarch 31, 2026, dated May 6, 2026 (the “MD&A”), and is incorporated by\nreference. The information is found in the “Presentation of Certain Terms\nIncluding Non-GAAP Measures” and “Non-GAAP Measures” sections of the\nMD&A, which is available on SEDAR+ at www.sedarplus.ca\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.sedarplus.ca&esheet=54530844&newsitemid=20260506758739&lan=en-US&anchor=www.sedarplus.ca&index=1&md5=5866d8fc203cabd70ec2b7009cf3b289)\n. Reconciliations of non-GAAP financial measures to the most directly\ncomparable IFRS measures are found in “Reconciliations of Non-GAAP\nMeasures” of this Press Release.\n\nFull reports of the financial results of the Trust for the three months ended\nMarch 31, 2026 are outlined in the unaudited interim condensed consolidated\nfinancial statements and the related MD&A of the Trust for the three\nmonths ended March 31, 2026, which are available on SEDAR+ at www.sedarplus.ca\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.sedarplus.ca&esheet=54530844&newsitemid=20260506758739&lan=en-US&anchor=www.sedarplus.ca&index=2&md5=b7cdbf6334d91f68f735258df98508bc)\n.\n\nCautionary Statements Regarding Forward-looking Statements\n\nCertain statements in this Press Release are \"forward-looking statements\" that\nreflect management's expectations regarding the Trust's future growth, results\nof operations, performance and business prospects and opportunities. More\nspecifically, certain statements including, but not limited to, statements\nrelated to SmartCentres’ expectations relating to cash collections,\nSmartCentres’ expected or planned development plans and joint venture\nprojects, including the described type, scope, costs and other financial\nmetrics and the expected timing of construction and condo closings and\nstatements that contain words such as \"could\", \"should\", \"can\", \"anticipate\",\n\"expect\", \"believe\", \"will\", \"may\" and similar expressions and statements\nrelating to matters that are not historical facts, constitute \"forward-looking\nstatements\". These forward-looking statements are presented for the purpose of\nassisting the Trust's Unitholders and financial analysts in understanding the\nTrust's operating environment and may not be appropriate for other purposes.\nSuch forward-looking statements reflect management's current beliefs and are\nbased on information currently available to management.\n\nHowever, such forward-looking statements involve significant risks and\nuncertainties. A number of factors could cause actual results to differ\nmaterially from the results discussed in the forward-looking statements,\nincluding risks associated with potential acquisitions not being completed or\nnot being completed on the contemplated terms, public health crises, real\nproperty ownership and development, debt and equity financing for development,\ninterest and financing costs, construction and development risks, and the\nability to obtain commercial and municipal consents for development. These\nrisks and others are more fully discussed under the heading “Risks and\nUncertainties” and elsewhere in SmartCentres’ most recent Management’s\nDiscussion and Analysis, as well as under the heading “Risk Factors” in\nSmartCentres’ most recent annual information form. Although the\nforward-looking statements contained in this Press Release are based on what\nmanagement believes to be reasonable assumptions, SmartCentres cannot assure\ninvestors that actual results will be consistent with these forward-looking\nstatements. The forward-looking statements contained herein are expressly\nqualified in their entirety by this cautionary statement. These\nforward-looking statements are made as at the date of this Press Release and\nSmartCentres assumes no obligation to update or revise them to reflect new\nevents or circumstances unless otherwise required by applicable securities\nlegislation.\n\nMaterial factors or assumptions that were applied in drawing a conclusion or\nmaking an estimate set out in the forward-looking information may include, but\nare not limited to: a stable retail environment; a continuing trend toward\nland use intensification, including residential development in urban markets\nand continued growth along transportation nodes; access to equity and debt\ncapital markets to fund, at acceptable costs, future capital requirements and\nto enable our refinancing of debts as they mature; that requisite consents for\ndevelopment will be obtained in the ordinary course, construction and\npermitting costs consistent with the past year and recent inflation trends.\n\nFor information, visit www.smartcentres.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.smartcentres.com&esheet=54530844&newsitemid=20260506758739&lan=en-US&anchor=www.smartcentres.com&index=3&md5=05e17c75ceb3e8a7f4a779c86cdc4661)\n.\n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260506758739/en/\n(https://www.businesswire.com/news/home/20260506758739/en/)\n\nMitchell Goldhar\n\nExecutive Chairman and CEO\n\n(905) 326-6400 ext. 7674\n\nmgoldhar@smartcentres.com (mailto:mgoldhar@smartcentres.com)\n\nPeter Slan\n\nChief Financial Officer\n\n(905) 326-6400 ext. 7571\n\npslan@smartcentres.com (mailto:pslan@smartcentres.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-05-06T22:23:00.181843815Z","server_sent_at_ms":1778106180181},"received_at":"2026-05-06T22:23:00.393Z","source_url":"https://www.businesswire.com/news/home/20260506758739/en/"},"analysis":{"id":"19169","press_release_id":"24489","analysis_json":{"industry":{"label":"Retail REITs","sector":"Real Estate"},"redFlags":["FFO and AFFO per unit declined year-over-year","Interest coverage ratio tightened to 2.6x","Adjusted Debt to Adjusted EBITDA remains high at 9.7x"],"eventType":"earnings","narrative":"SmartCentres reported Q1 NOI of $137.7 million, up 0.7% year-over-year, driven by a solid occupancy rate of 97.6% and exceptional lease renewal rent growth of 11.5% excluding anchors.\n\nDespite operational strength, FFO per unit declined to $0.54 from $0.56 in the prior year, and AFFO per unit dropped to $0.52, primarily due to higher interest expenses and general administrative costs.\n\nThe Trust announced a subsequent event restructuring its agreement with management entity Penguin, extending the CEO's contract to 2030 and simplifying related-party arrangements to reduce governance complexity.","sentiment":"mixed","agentHooks":{"shouldPost":false,"suggestedAngle":"Operational momentum with 11.5% rent growth offset by FFO decline and high leverage."},"keyFigures":{"noi":137700000,"guidance":"None provided","ffo_per_unit":0.54,"affo_per_unit":0.52,"customDimensions":{"net_income":129897000,"nav_per_unit":36.19,"occupancy_rate":"97.6%","rent_growth_renewals":"11.5%","same_property_noi_growth":"1.4%"}},"quotedText":"We are pleased to report a solid start to 2026.","namedEntities":{"people":[{"name":"Mitchell Goldhar","role":"Executive Chairman and CEO"},{"name":"Peter Slan","role":"Chief Financial Officer"}],"products":[],"companies":[{"name":"SmartCentres Real Estate Investment Trust","ticker":"SRU.UN"},{"name":"Canadian Tire","relationship":"tenant"},{"name":"Penguin","relationship":"management entity"}],"dollarAmounts":[{"amount":"$7.1 million","context":"Acquisition of land parcel in Kingston, Ontario"},{"amount":"$42.4 million","context":"Settlement of TRS debt"},{"amount":"$50.3 million","context":"Fair value gain on investment properties"}]},"materialImpact":{"score":3,"reasoning":"Q1 results show solid operational fundamentals with 11.5% rent renewal growth and 97.6% occupancy, but FFO and AFFO per unit declined year-over-year due to higher interest expenses. The subsequent event detailing the CEO contract extension and management agreement simplification is a notable governance update."},"tickerRelevance":{"others":[],"primary":"SRU_U"},"globalImportance":15,"audienceRelevance":15,"eventTypeSecondary":["executive_change","operations_update"],"importanceComponents":{"tickerTier":"mid_cap_canadian_reit","eventGravity":"routine_earnings_with_ops_growth","sectorWeight":"real_estate","marketCapAdjustment":"low"}},"event_type":"earnings","event_type_secondary":["executive_change","operations_update"],"sentiment":"mixed","material_impact_score":3,"narrative":"SmartCentres reported Q1 NOI of $137.7 million, up 0.7% year-over-year, driven by a solid occupancy rate of 97.6% and exceptional lease renewal rent growth of 11.5% excluding anchors.\n\nDespite operational strength, FFO per unit declined to $0.54 from $0.56 in the prior year, and AFFO per unit dropped to $0.52, primarily due to higher interest expenses and general administrative costs.\n\nThe Trust announced a subsequent event restructuring its agreement with management entity Penguin, extending the CEO's contract to 2030 and simplifying related-party arrangements to reduce governance complexity.","key_figures":{"noi":137700000,"guidance":"None provided","ffo_per_unit":0.54,"affo_per_unit":0.52,"customDimensions":{"net_income":129897000,"nav_per_unit":36.19,"occupancy_rate":"97.6%","rent_growth_renewals":"11.5%","same_property_noi_growth":"1.4%"}},"named_entities":{"people":[{"name":"Mitchell Goldhar","role":"Executive Chairman and CEO"},{"name":"Peter Slan","role":"Chief Financial Officer"}],"products":[],"companies":[{"name":"SmartCentres Real Estate Investment Trust","ticker":"SRU.UN"},{"name":"Canadian Tire","relationship":"tenant"},{"name":"Penguin","relationship":"management entity"}],"dollarAmounts":[{"amount":"$7.1 million","context":"Acquisition of land parcel in Kingston, Ontario"},{"amount":"$42.4 million","context":"Settlement of TRS debt"},{"amount":"$50.3 million","context":"Fair value gain on investment properties"}]},"model_name":"glm-4.7","prompt_hash":"sha256:f66160e0fe5301b2","schema_hash":"sha256:12363694422af5d9","created_at":"2026-05-07T16:48:19.282Z","global_importance":15,"audience_relevance":15,"importance_components":{"tickerTier":"mid_cap_canadian_reit","eventGravity":"routine_earnings_with_ops_growth","sectorWeight":"real_estate","marketCapAdjustment":"low"}},"durationMs":null,"modelName":"glm-4.7"}}