CT Real Estate Investment Trust Q4 2025 Earnings Report

CT Real Estate Investment Trust EPS Results

• Actual EPS: C$0.63
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

CT Real Estate Investment Trust Revenue Results

• Actual Revenue: $152.92 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

CT Real Estate Investment Trust Announcement Details

• Quarter: Q4 2025
• Date: 3/19/2026
• Time: After Market Closes
• Conference Call Date: N/A
• Conference Call Time: N/A

CT Real Estate Investment Trust (TSE:CRT.UN) is an unincorporated real estate investment trust that invests in retail properties across Canada. The most significant portion of properties are located in Ontario, followed by Quebec and Western Canada. The trust generates the vast majority of revenue from leasing its properties to Canadian Tire Corporation, which operates the Canadian Tire retail stores. The trust's portfolio primarily consists of properties anchored by a Canadian Tire retail store, in addition to retail properties not anchored by Canadian Tire, distribution centres, and mixed-use commercial property.

CT Real Estate Investment Trust Q4 2025 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: CT REIT reported solid 2025 results with NOI up 4.9% in Q4 (4.6% FY) and AFFO per unit up ~2.9% in Q4 (2.8% FY), while maintaining a payout ratio in the low 70s.
• Positive Sentiment: The REIT deployed approximately CAD 235 million and added nearly 900,000 sq ft in 2025 (≈400,000 sq ft in Q4); its development pipeline is a committed CAD 329 million (≈95% pre‑leased) with ~CAD 78 million expected to be invested over the next 12 months.
• Positive Sentiment: Leasing momentum remained strong—>1 million sq ft of Q4 lease extensions and >2 million sq ft renewed for the year, with a weighted average first‑year rental uplift of ~10.4%, portfolio occupancy at 99.5% and WALT of 7.2 years.
• Neutral Sentiment: Balance sheet metrics improved modestly (indebtedness ratio down to 39.8% and total indebtedness/EBITDA at 6.77x) and committed credit lines are largely available, but cash was ~CAD 4 million at year‑end and interest coverage fell to 3.34x due to higher rates and draws; management plans to monitor markets and refinance a CAD 200 million debenture.
• Negative Sentiment: Management noted ongoing headwinds from a challenging development cost environment, timing uncertainty on incremental density at Canada Square (Crosslinx control of lands), and higher interest costs that have modestly compressed interest coverage.

Presentation

[Operator]

The speakers on the call today are Kevin Salsberg, President and Chief Executive Officer of CT REIT Jodi Shpigel, Senior Vice-President, Real Estate and Lesley Gibson, Chief Financial Officer. Today's discussions may include forward-looking statements. Such statements are based on management's assumptions and beliefs. These forward-looking statements are subject to uncertainties and other factors that could cause actual results to differ materially from such statements. Please see CT REIT's public filings for a discussion of these risk factors, which are included in their Q4 2025 Management's Discussion and Analysis and 2025 Annual Information Form, which can be found on CT REIT's website and on SEDAR+. I will now turn the call over to Kevin Salsberg, President and Chief Executive Officer of CT REIT. Kevin?

[Kevin Salsberg, President and CEO at CT REIT]

Thank you, Gigi, and good morning, everyone. We were very pleased to report that 2025 shaped up to be a great year for CT REIT. In the face of continued geopolitical uncertainty and macroeconomic disruption, CT REIT once again delivered on its value proposition to unitholders. CT REIT's goal is to provide its investors with strong returns, growing distributions, and stability. We manage our business with these hallmarks in mind, focusing on growth opportunities that leverage our strategic relationship with Canadian Tire, optimizing our existing asset base, and maintaining a balance sheet that provides us with a resilient foundation. In 2025, we successfully deployed approximately CAD 235 million and added nearly 900,000 sq ft of new retail to our portfolio, with approximately 400,000 sq ft of that being added in the fourth quarter alone.

[Kevin Salsberg, President and CEO at CT REIT]

Although we were very pleased with the quantum and quality of the new space that we brought on this past year, as I discussed on our conference call last quarter, we were even happier with how we delivered these results. Across 13 discrete investments, our team found new opportunities to acquire assets from third parties, to redevelop and improve existing CT REIT properties, and to build new locations, both for Canadian Tire and for other third-party tenants. As we look to the future, we will lean into these growth levers and the core competencies that we have built in order to continue to create value for our unitholders and to improve our portfolio. This portfolio growth, coupled with our foundation of contractual rent escalations and our successful lease renewals, contributed to our strong financial performance in 2025.

[Kevin Salsberg, President and CEO at CT REIT]

As we have seen across our peer group, demand for retail space continues to outpace supply, and the fundamentals for retail real estate are currently very strong. Jodi will provide a little more color on this momentarily, but we continue to leverage this dynamic to drive organic growth and seek out new opportunities. Our successes over the course of the last year led to solid growth in our bottom line. In the fourth quarter, Net Operating Income grew by 4.9%, and Adjusted Funds from Operations per unit grew by 2.9%. For the full year, growth in Net Operating Income came in at 4.6%, and Adjusted Funds from Operations per unit grew by 2.8%.

[Kevin Salsberg, President and CEO at CT REIT]

We achieved this growth while maintaining our payout ratio in the low 70% range and further reducing our indebtedness ratio by approximately 130 basis points relative to the end of 2024. We were also pleased that construction began at the Canada Square property related to Canadian Tire's new long-term head office lease in Q4. This project will substantially refurbish the existing 640,000 sq ft office complex, with completion anticipated towards the end of 2028. With the improvements that we will be making to the property and the new Eglinton LRT line now operational, the future for this asset looks bright. I want to take a moment to recognize the CT REIT team for their hard work and dedication over the past year.

[Kevin Salsberg, President and CEO at CT REIT]

In addition to our financial and operational achievements, we made a difference in our communities in 2025 through our fundraising efforts, the way we managed our assets, and through our various sustainability-related initiatives. I am very proud of the efforts of our entire team, and I'm optimistic about what 2026 will bring for CT REIT as we continue to advance our business. And with that, I will pass it over to Jodi for her comments on our investment, development, and leasing activity. Jodi?

[Jodi Shpigel, SVP OF Real Estate at CT REIT]

Thanks, Kevin, and good morning, everyone. As highlighted in our press release yesterday, we were pleased to have completed several previously announced projects in the fourth quarter. These included six intensification projects, five of which represented expansions of existing Canadian Tire stores that are located in Victoria, British Columbia, Winnipeg, Manitoba, Fergus and Brampton, Ontario, and Donnacona, Quebec. The last intensification project related to the development of a third-party pad at an existing Canadian Tire anchored property in Fort Frances, Ontario. In Q4, we also completed the development of a new 172,000 sq ft Canadian Tire store in Kelowna, British Columbia, and the redevelopment of a former of a vacant former Canadian Tire store in Lloydminster, Alberta. This building was successfully backfilled with a national grocer, furniture store, and a footwear retailer.

[Jodi Shpigel, SVP OF Real Estate at CT REIT]

Finally, as previously announced, we also acquired the freehold interest underlying an existing Canadian Tire ground lease, as well as a multi-tenant commercial retail building in Fort Saskatchewan, Alberta. As Kevin noted, this is a very productive quarter for growth. In total, projects completed in the fourth quarter represented CAD 160 million of investment and added more than 400,000 sq ft of incremental GLA to the portfolio. They are also strong examples of how we collaborate with our principal tenant, Canadian Tire, to unlock additional value for our unitholders. Looking ahead, our development pipeline remains healthy. We currently have 11 projects at various stages of progress, with 4 expected to be completed in 2026 and the remainder in 2027 and beyond.

[Jodi Shpigel, SVP OF Real Estate at CT REIT]

These developments, including the Canada Square office retrofit project in Toronto, represent a committed investment of approximately CAD 329 million, of which CAD 102 million has been spent to date. We expect to invest roughly CAD 78 million over the next twelve months to advance these projects. Once completed, they will add just over 600,000 sq ft of new GLA to the portfolio, approximately 95% of which is already pre-leased. Turning to leasing, during the fourth quarter, CT REIT completed a little over 1 million sq ft of lease extensions, primarily comprised of 14 Canadian Tire store lease renewals. For the full year, we completed 30 Canadian Tire store lease extensions and overall renewed retail leases representing over 2 million sq ft of GLA.

[Jodi Shpigel, SVP OF Real Estate at CT REIT]

For the full year, these renewals were completed at a weighted average first-year rental uplift of approximately 10.4%. As of year-end, we maintained a long, weighted average lease term for the portfolio at 7.2 years, and our occupancy rate remained robust at 99.5%, up 10 basis points from a year ago. I will now turn it over to Lesley to discuss our financial results. Lesley?

[Lesley Gibson, CFO at CT REIT]

Thanks, Jodi, and good morning, everyone. As Kevin mentioned, we are very pleased with the REIT's financial performance in the fourth quarter and full year, 2025. Once again, our results demonstrated the steady growth and resilience of our portfolio. Same-Property NOI, which includes the impact of intensifications, grew 2% in the quarter compared to Q4 2024. For the full year, Same-Property NOI increased 2.2%. These increases reflect the contractual rent escalations of approximately 1.5% per year in many of our Canadian Tire leases, as well as the contributions from intensification projects completed in 2024 and 2025 of CAD 1.2 million and CAD 3.3 million for the quarter and year, respectively. Overall, Net Operating Income for the quarter grew 4.9% year-over-year, representing an increase of about CAD 5.7 million.

[Lesley Gibson, CFO at CT REIT]

For the full year, 2025, NOI grew 4.6% or over CAD 21 million. This strong performance was supported by the same property NOI growth that I just spoke out to, and the impacts of acquisition and development activity over the relevant period. In the fourth quarter, general administrative expenses as a percentage of property revenue were 2.8%, compared to 2% in the period, same period last year. The increase was mainly due to the timing of non-cash fair value adjustments on unit-based compensation in Q4 2025. Excluding these fair value adjustments, G&A as a percentage of property revenue decreased 20 basis points to 2.7%.

[Lesley Gibson, CFO at CT REIT]

On a full year basis, G&A expense represented approximately 3.1% of revenue, or roughly 2.8% after normalizing for unit-based compensation fair value changes, slightly better than the 2.9% in 2024. The fair value adjustment of our investment properties was CAD 110.4 million in the fourth quarter, compared to CAD 54.8 million in the prior year. This sizable gain was driven primarily by increases to underlying cash flows due to updates made to market leasing assumptions, strong leasing and renewal activity completed during the period, the impact of numerous development project completions mentioned by Jodi earlier, and the compression of terminal capitalization and discount rates for certain retail properties within the portfolio.

[Lesley Gibson, CFO at CT REIT]

These factors more than offset the expansion of terminal capitalization discount rates applied to the valuation of our industrial properties, a change that was made to reflect current market conditions. For the full year, fair value adjustments totaled CAD 195.4 million, up from CAD 119.1 million in 2024. In the fourth quarter, AFFO per diluted unit was CAD 0.317, up 2.9% compared to the fourth quarter last year and the full year. AFFO per unit diluted was up 2.8% year-over-year. FFO on a diluted basis was CAD 0.339 per unit, up 1.5% compared to Q4 2024, and up 2% on a full year basis. Growth in FFO and AFFO primarily reflects increases in NOI, partially offset by higher interest expense.

[Lesley Gibson, CFO at CT REIT]

Cash distributions paid in the quarter increased 2.5% compared to Q4 2024 to CAD 0.237 per unit, reflecting the higher monthly distribution rate that became effective in July 2025. This continued growth is further evidence of our strong track record of increasing distributions every year since our IPO in 2013, reflecting the cumulative growth of 45.9% that unitholders have enjoyed since that time. With AFFO per unit growing faster than distributions, our payout ratio improved slightly. The AFFO payout ratio for Q4 was 74.8%, compared to 75% a year ago. On a full year basis, the AFFO payout ratio remained stable at 73.5%. Turning to the balance sheet, our interest coverage ratio for the fourth quarter was 3.34 times, compared to 3.52 times in Q4 2024.

[Lesley Gibson, CFO at CT REIT]

This decrease reflects the higher interest costs arising from the reset of interest rates on several series of our Class C LP Units effective June 1, 2025, and increased utilization of our credit facilities to fund acquisitions and developments, and the issuance of CAD 200 million of Series J Unsecured Debentures in June 2025. Even with these financing activities, our total indebtedness to EBITDA fair value improved to 6.77 times in 2025 from 6.81 times a year ago, as earnings growth outpaced the increase in debt. Our Indebtedness Ratio at the year end also improved relative to the end of 2024, at 39.8%, down from 41.1%.

[Lesley Gibson, CFO at CT REIT]

This improvement reflects the continued increase in the fair value of our investment properties and the growth in total assets from acquisitions and developments, partially offset by draws on our credit facilities. The strength in our balance sheet and these industry-leading debt metrics provide us with ample financial flexibility to fund our future growth initiatives. With respect to liquidity, we ended Q4 with approximately CAD 4 million of cash on hand. Our committed CAD 300 million bank credit facility was essentially undrawn at year-end, and we also maintained our CAD 300 million uncommitted credit facility with CTC, with roughly CAD 104 million available on this line at year-end. Altogether, we continue to have adequate liquidity and balance sheet capacity to fund ongoing investments and to pursue new, new opportunities. With that, I'll turn the call back to the operator for any questions.

[Operator]

Thank you. At this time, I would like to remind everyone that in order to ask a question, please press star, then one, one on your telephone keypad. We'll pause for just a moment to compile the Q&A roster. Our first question comes from the line of Brad Sturges from Raymond James.

[Brad Sturges, Managing Director and Equity Research Analyst at Raymond James]

Hey, good morning.

[Kevin Salsberg, President and CEO at CT REIT]

Hi.

[Brad Sturges, Managing Director and Equity Research Analyst at Raymond James]

Congrats, congrats on a good quarter and obviously a lot of, you know, success on, on a number of fronts on the growth side. Just curious on the—I guess, as you think about the expansion, intensification opportunity, you know, you completed a number of projects in the quarter. Like, how do you think about new opportunities to be added to the pipeline this year? Kind of, what do you see in terms of new opportunities right now?

[Kevin Salsberg, President and CEO at CT REIT]

Thanks, Brad. Yeah, so super happy about the completions in Q4. I think that's that was a big quarter for us. Obviously, looking to reload the pipeline just in terms of new opportunities and continue to work with Canadian Tire. I think the cost environment is still somewhat challenging on the new development side. You know, as you know, we have several growth levers that we can pull, whether it be you know, store intensifications, new store development, acquiring assets from other third-party landlords, or even vend-ins, which we haven't done in some time. So we're obviously looking to the opportunities and availability of each of those types of transactions.

[Kevin Salsberg, President and CEO at CT REIT]

You know, I'm pretty optimistic that we'll be able to find some that fit our strategy and our financial parameters, and 2026, you know, will shape up similarly to the way we were able to deliver in 2025.

[Brad Sturges, Managing Director and Equity Research Analyst at Raymond James]

Okay. So you think, pipeline, in across all those buckets could be pretty similar year over year?

[Kevin Salsberg, President and CEO at CT REIT]

Yeah. I mean, it's always opportunity based, so it's hard to say exactly, but certainly we're out there. We're looking at some things that are on market, some things that are off market. We're having discussions with Canadian Tire. So, I guess the best I would say is I'm optimistic, but time will tell.

[Brad Sturges, Managing Director and Equity Research Analyst at Raymond James]

Okay. And just what got completed or delivered in the quarter? Can you just comment, generally speaking, on going in yield on cost?

[Kevin Salsberg, President and CEO at CT REIT]

Probably a mixed bag. I mean, obviously, we had some different project types. One, you know, ground up development for a third party, some of the store intensifications, and acquisitions. So, you know, on a blended basis, I would probably say mid to high sixes. But that's without really spending a lot of time thinking about the math in my head. So, I think that's probably a good rough guide.

[Brad Sturges, Managing Director and Equity Research Analyst at Raymond James]

Okay, appreciate that. Thank you.

[Operator]

One moment for our next question. Our next question comes from the line of Giuliano Thornhill from National Bank.

[Giuliano Thornhill, Equity Research Analyst at National Bank]

Hey, guys. Good morning.

[Kevin Salsberg, President and CEO at CT REIT]

Good.

[Giuliano Thornhill, Equity Research Analyst at National Bank]

Just had one question on the kind of vend-in opportunity. How large is that? And do you think kind of CT is, you know, mostly fleshed out on the industrial distribution side?

[Kevin Salsberg, President and CEO at CT REIT]

On the supply chain side, yes, I think they're pretty set. You know, they had a major swell in COVID when their inventory positions increased, and we helped them with that as we built a new DC for them in Calgary. I would say, you know, looking back at the last couple of quarters, I think they've normalized that to a certain extent. So I don't see any huge opportunities with CTC necessarily on the supply chain side. Although we do always look at synergies with respect to our existing holdings and if there's anything, you know, in terms of adjacent sites or opportunities in the nodes that we operate in to consolidate space. So that continues to be a strategy for us.

[Kevin Salsberg, President and CEO at CT REIT]

In terms of your first question, in terms of the vend-in opportunities, there's roughly 10-15 Canadian Tire stores that we believe meet our investment criteria. You know, the last couple of years, our unit price hasn't been exactly where we want to be, in terms of issuing equity in exchange for assets, which is part of the formula we've used in the past, when acquiring assets from Canadian Tire. I think today we feel a little better about that, and and certainly with the development pipeline, you know, a little bit smaller than it was at this time last year, that is something we will be looking at.

[Giuliano Thornhill, Equity Research Analyst at National Bank]

Just with leverage kind of declining, you know, at all-time lows, really? Is there maybe the possibility to pursue larger distribution increases or possibly buying back stock at these levels? I'm just wondering kind of how you would utilize, like, the low leverage level, for unitholders.

[Kevin Salsberg, President and CEO at CT REIT]

Yeah, I mean, we've said before, you know, while being below 40% is not necessarily a target for us, we certainly feel comfortable where we are. We also believe it, you know, provides some dry powder, as you're sort of intimating. We would prefer to use that dry powder to acquire and develop sites, at the unit price levels that we're currently experiencing. I'm not sure we'd be users of our NCIB. That was something we were a little bit more active on when we were trading kind of in the low-to-mid CAD 13-dollar range. Today we're in the high 16s. So, I think primarily we would like to use it for growth initiatives at the portfolio level.

[Giuliano Thornhill, Equity Research Analyst at National Bank]

Okay. Thank you.

[Kevin Salsberg, President and CEO at CT REIT]

Thank you.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Tal Woolley from CIBC Capital Markets.

[Tal Woolley, Executive Director of Institutional Equity Research at CIBC Capital Markets]

Hi, good morning. Apologies if I missed some earlier commentary. I had to jump on late. Just with Canada Square, now that the Eglinton LRT is done, can you just talk a little bit about it? I know this was one of the hitches sort of in getting things moving on that site. Can you talk a little bit more about just progress there?

[Kevin Salsberg, President and CEO at CT REIT]

Sure. So very happy that the Crosstown LRT is finally open. In terms of hitches, there's kind of two components of that. One was the actual usability of the new line. The other is the two acres at the, I guess, northwest corner of our site are being controlled by Crosslinx, the consortium that built the LRT. And the first phase of development cannot begin on those lands until such time as they relinquish control. We don't have a specific timeline as to when that will happen. I would imagine it would be sooner than later, but we have no notice yet at this point.

[Kevin Salsberg, President and CEO at CT REIT]

Having said that, although the benefits of the LRT still accrue to the existing commercial complex and its users, the connectivity that it brings, and access, to the employee base here, we're really focused on the commercial, refurbishment, the retrofit of the office space, that we'll be undertaking with Oxford between now and the end of 2028. So I think while we will continue to advance the master plan and the zoning efforts, we're not really turning our minds quite yet to, incremental density on the site in terms of, the desire to proceed with that part of the project.

[Tal Woolley, Executive Director of Institutional Equity Research at CIBC Capital Markets]

Does that sort of—the ongoing, like, question about when you will, you know, sort of maybe start that piece—is that sort of factoring into why the pipeline is sort of where it's at right now, that you wanted, you know, when you're thinking about this a few years ago, you wanted to have capital available to pursue that and so took on less? Or is it a function of just there are fewer projects to do at Canadian Tire?

[Kevin Salsberg, President and CEO at CT REIT]

I think it's mostly the latter, where there's fewer projects. Certainly having that dry powder to allocate as we feel is appropriate is a nice to have. So if you know, in a couple of years, the market has improved, the density is realized, and it's something we want to pursue, having the balance sheet capacity to do that is obviously great. But in the current circumstances, I think it's more the cost environment that's impeding our ability to continue to add to the store intensification and new store development pipeline.

[Tal Woolley, Executive Director of Institutional Equity Research at CIBC Capital Markets]

Okay. And then, just lastly, I guess this would be for Lesley. You have the, I believe, a CAD 200 million debenture, maturing in June. Would we expect you to move earlier on that? And I'm assuming you'd be looking to refinance whatever you have left in your credit facilities, too, in addition to the CAD 200 million.

[Lesley Gibson, CFO at CT REIT]

Tal, definitely we're, we're watching markets, and I think the, the public debt market, which is sort of our continued preferred, avenue for sort of financing, you know, is very constructive right now, and it has been, and it's quite active. So, definitely looking to refinance the existing maturities, that CAD 200 million, and likely some upsize, to that. We'll just see where we are drawn on the line and, where our use for the rest of the year is in terms of, you know, how much new offering could be. But, yeah, definitely in the next sort of three months, we'll be watching the markets to find an opportune time.

[Tal Woolley, Executive Director of Institutional Equity Research at CIBC Capital Markets]

Okay. That's great! Thanks very much, everybody.

[Kevin Salsberg, President and CEO at CT REIT]

Thank you.

[Operator]

Thank you. One moment for our next question. Our next question comes from the line of Sam Damiani from TD Cowen.

[Sam Damiani, Managing Director and Real Estate Equity Research Analyst at TD Cowen]

Thank you, and good morning, everyone. I just jumped on a little late, so, but I think the question was asked about the former Canadian Tire store in Kelowna that has been backfilled. Has it been, like, 100% backfilled? And I wonder if you could comment on the rents versus the pre-existing rents on that space.

[Lesley Gibson, CFO at CT REIT]

Good morning, Sam. It's Jodi. Just to clarify, it was a former Canadian Tire store in Lloydminster, Alberta, that we backfilled. We completed a new store in Kelowna as well in this quarter, but the backfill was in Lloydminster, and so that's the tenants that were the grocer, the footwear retailer, and furniture store.

[Sam Damiani, Managing Director and Real Estate Equity Research Analyst at TD Cowen]

Okay. Okay, but there is, there is an empty former Canadian Tire store in Kelowna, too. Is that not, is that not right?

[Lesley Gibson, CFO at CT REIT]

That is correct. Canadian Tire still occupies it and has lease terms, so we're determining what comes next for that asset.

[Sam Damiani, Managing Director and Real Estate Equity Research Analyst at TD Cowen]

I see. Okay, great. Thank you for the clarification. And, appreciate the new disclosure on rent increases, on renewal rent increases. That's very helpful, showed both an uptick in the fourth quarter versus sort of first nine months on both the Canadian Tire and third-party tenants. You know, was there anything unusual in the Q4 stats there, or would you say that's indicative of kind of just a market trend?

[Kevin Salsberg, President and CEO at CT REIT]

I don't think there's anything unusual. I think certainly we're seeing, you know, an improved leasing and renewal market as we kind of commented on earlier. You know, we've substantially dealt now with our 2026 maturities. So, you know, in the next couple of months, we'll be turning our eyes to, you know, the first few that, you know, come up in 2027. But yeah, I think, you know, there's certainly an opportunity to replicate these kind of results across the portfolio. I mean, every batch of renewals that we deal with is slightly different in terms of where they're located, the size of the market, where the rents are relative to market rent.

[Kevin Salsberg, President and CEO at CT REIT]

So, there certainly could be some fluctuation up and down amongst the, the output. But, we do think there is upside for us as we continue to get at these renewals and, you know, that'll start kicking in, you know, more and more as time goes on, as we get further into our, you know, our lease expiries. I think, you know, in 2027, I think there's about 6%-7%, 6% of CTR leases come up for renewal. 2028, almost 9%, so that number will continue to grow in prominence, and, we'll continue to hopefully follow the trends that we're seeing more broadly in the retail leasing market.

[Sam Damiani, Managing Director and Real Estate Equity Research Analyst at TD Cowen]

Appreciate that, Kevin. And the sort of 10.5%-11% on the Canadian Tire store lease renewals, just to clarify, those are five-year fixed renewals, is that correct?

[Kevin Salsberg, President and CEO at CT REIT]

That's correct. Yeah, that's correct, Sam.

[Sam Damiani, Managing Director and Real Estate Equity Research Analyst at TD Cowen]

Yeah. So the average sort of annual increase is, you know, a tick above 2%. So if I'm not mistaken, that is higher than previous years, which I seem to recall was more in the 1.5% annual sort of average annual increase. Is that right?

[Kevin Salsberg, President and CEO at CT REIT]

That's correct, Sam.

[Sam Damiani, Managing Director and Real Estate Equity Research Analyst at TD Cowen]

Okay. Is that any reason, anything different with the 2025 renewals that would sort of justify that? Or is it purely just a, you know, reflection of overall markets, you know, the mix geographically isn't meaningfully different year to year?

[Kevin Salsberg, President and CEO at CT REIT]

I think it's a combination of the improved retail leasing market as well as the mix of those leases that we were dealing with.

[Sam Damiani, Managing Director and Real Estate Equity Research Analyst at TD Cowen]

Okay, perfect. I think my, the rest of my questions have been answered, so thank you very much, and I'll turn it back.

[Kevin Salsberg, President and CEO at CT REIT]

Thank you, Sam.

[Operator]

Thank you. At this time, I would like to remind everyone in order to ask a question, please press star, then one, one on your telephone keypad. As there are no further questions at this time, I will now turn the call over to Kevin Salsberg, President and CEO, for closing remarks.

[Kevin Salsberg, President and CEO at CT REIT]

Thank you, Gigi, and thank you all for joining us today. We look forward to speaking with you again in May after we release our Q1 results. Thank you.

[Operator]

This concludes today's call. You may now disconnect.

Participants

Analysts

• Brad Sturges, Managing Director and Equity Research Analyst at Raymond James
• Giuliano Thornhill, Equity Research Analyst at National Bank
• Jodi Shpigel, SVP OF Real Estate at CT REIT
• Kevin Salsberg, President and CEO at CT REIT
• Lesley Gibson, CFO at CT REIT
• Sam Damiani, Managing Director and Real Estate Equity Research Analyst at TD Cowen
• Tal Woolley, Executive Director of Institutional Equity Research at CIBC Capital Markets