CT Real Estate Investment Trust Q2 2026 Earnings Report

CT Real Estate Investment Trust EPS Results

• Actual EPS: C$0.45
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

CT Real Estate Investment Trust Revenue Results

• Actual Revenue: $156.71 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

CT Real Estate Investment Trust Announcement Details

• Quarter: Q2 2026
• Date: 8/10/2026
• Time: After Market Closes
• Conference Call Date: Tuesday, August 11, 2026
• Conference Call Time: 9:00AM ET

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 Q2 2026 Earnings Call Transcript

Key Takeaways

• Positive Sentiment: Q2 performance remained solid, with same-property NOI up 2.5%, overall NOI up 4.8%, and diluted AFFO per unit up 2.5% year over year. The AFFO payout ratio was stable at 72.7%.
• Positive Sentiment: Portfolio fundamentals stayed strong, with 99.5% occupancy and Canadian Tire lease renewals totaling approximately 515,000 square feet at a 10.9% increase; total renewal spreads were 10.4% across 618,000 square feet.
• Positive Sentiment: CT REIT completed a CAD 13 million St. Catharines vend-in at a 6.9% going-in yield and closed roughly CAD 76 million of acquisitions, land purchases, and intensifications that added more than 230,000 square feet to the portfolio.
• Positive Sentiment: The REIT strengthened its financial flexibility through a CAD 300 million, five-and-a-half-year debenture issuance, while debt to EBITDA fair value improved to 6.56 times and liquidity remained substantial.
• Negative Sentiment: Management said the development pipeline has shrunk and expects fewer Canadian Tire-related opportunities in coming years as the retailer places less emphasis on store development; it is also being selective amid elevated acquisition pricing.

Presentation

[Operator]

Thank you for standing by. My name is Jonathan, and I will be your conference operator today. At this time, I would like to welcome everyone to CT REIT's Second Quarter 2026 Earnings Results Conference Call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer period. If you would like to ask a question during this time, simply press star one one on your telephone keypad. To withdraw your question, simply press star one one again. The speakers on today's call 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 discussion contains information that may constitute forward-looking information within the meaning of applicable securities laws.

[Operator]

Although CT REIT believes that the forward-looking information in today's discussion is based on information, estimates and assumptions that are reasonable, such information is necessarily subject to a number of risks, uncertainties and other factors that could cause actual results to differ materially from those expressed or implied in such forward-looking information. For information on these material risks, uncertainties, factors and assumptions, please see the REIT's second quarter 2026 and full year 2025 MD&A, as well as the 2025 AIF, which are available on the website and filed on SEDAR+. The REIT does not undertake to update any forward-looking information, whether written or oral, except as is required by applicable laws. I'd like to 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, Jonathan. Good morning, everyone, and thank you for joining us on our call today. CT REIT delivered another solid quarter in Q2, reflecting the strength and resilience of our portfolio and the disciplined execution of our strategy. Our objective remains unchanged, to be Canada's premier net lease REIT by delivering strong risk-adjusted returns, portfolio stability, and reliable, durable and growing distributions for our unitholders. During the second quarter, we continued to advance that objective through a combination of strong operating performance, strategic investments, advancing our development activity and prudent capital management. From an operating perspective, our results once again demonstrated the durability of our business model. Our portfolio remains substantially fully occupied, and we continue to successfully address upcoming lease maturities. Same property NOI, including the benefits of our intensification program, grew 2.5%.

[Kevin Salsberg, President and CEO at CT REIT]

AFFO per unit on a diluted basis also increased 2.5% year-over-year, while overall NOI increased 4.8%. We were also active on the growth front during the quarter. In addition to completing a CAD 13 million vend-in in St. Catharines, Ontario, we closed approximately CAD 76 million of previously announced investments and developments that added more than 230,000 sq ft of incremental GLA to the portfolio. Jodi will discuss these investments in greater detail in a moment, but these activities demonstrate our ability to continue growing through a mix of acquisitions, developments, and intensifications while remaining focused on opportunities that complement our existing portfolio and generate attractive long-term returns. Another highlight during the quarter was the successful issuance of CAD 300 million of Series K unsecured debentures. This transaction allowed us to refinance maturing debt, extend our debt maturity profile, and further strengthen our financial flexibility.

[Kevin Salsberg, President and CEO at CT REIT]

As Lesley will describe, we remain well positioned to fund our development pipeline and pursue future investment opportunities as they arise. Finally, as we previously disclosed, our board recently approved a 3.5% increase in our monthly distributions, which took effect in the quarter. The increase is supported by our conservative AFFO payout ratio and marks another step in CT REIT's long-term track record of distribution growth and value creation for our unitholders. Overall, we were pleased with our performance in the quarter and remain confident in the outlook for the business. Our high-quality portfolio, strong relationship with Canadian Tire, ability to source strategic investments, and conservative balance sheet continues to position CT REIT well for the future growth. With that, I will turn the call over to Jodi to discuss our investment, development and leasing activities in more detail. Jodi?

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

Thanks, Kevin, and good morning, everyone. As Kevin noted, and as highlighted in our press release yesterday, we were active on the investment front again this quarter, sourcing a new investment while closing on previously announced transactions. During the quarter, we completed a CAD 13 million vend-in of a Canadian Tire store and Canadian Tire Gas+ gas bar in St. Catharines, Ontario. The property is well located in a strong retail node, represents approximately 52,400 sq ft of incremental GLA and is expected to earn a going-in yield of 6.9%. We also closed on approximately CAD 76 million of previously announced investments during the quarter, which together added over 232,000 sq ft of incremental GLA to the portfolio.

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

These included the third-party acquisition of Centre 50, a Canadian Tire anchored multi-tenant property in Edmonton, Alberta, the acquisition of Marché Rosemère, a multi-tenant retail property adjacent to our existing Canadian Tire store in Rosemère, Quebec, and the acquisition of land adjacent to an existing CT REIT-owned property in Oliver, British Columbia. In addition, we completed intensifications of three existing Canadian Tire stores in Penticton, British Columbia, Burlington, Ontario, and Valleyfield, Quebec. During the quarter, we also continued to advance the Canada Square Toronto office retrofit project. As we have previously discussed, this project is a complete modernization of two buildings at our Canada Square complex, 2180 and 2200 Yonge Street, and includes refurbishing 680,000 sq ft of GLA, over 90% of which has been leased. The project started in Q4 2025 and is running on schedule.

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

The upgrades to the curtain wall systems in both 2180 and 2200 Yonge Street are underway, and the upgrades and refresh of internal facilities at 2180 Yonge are almost completed. As well, the work on the new elevator systems has commenced. To date, approximately 17% of the project's budget has been spent. Looking ahead, our development pipeline remains healthy. Including Canada Square, we currently have nine projects at various stages of progress. These developments represent total development costs of approximately CAD 354 million, of which approximately CAD 191 million has been spent to date. We expect to invest roughly CAD 66 million over the next 12 months to advance these projects. As at quarter end, we had committed lease agreements for 488,000 sq ft, representing 94.2% of total GLA under development, of which 91.6% has been leased to Canadian Tire.

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

Turning to leasing, during the second quarter, CT REIT completed nine Canadian Tire store lease renewals. On a blended basis, renewal leasing activity for the portfolio totaled over 618,000 sq ft at a 10.4% increase. Canadian Tire store renewals accounted for approximately 515,000 sq ft at a 10.9% increase, while other tenancies represented roughly 103,000 sq ft at an 8.3% increase. As of quarter end, we maintained a long weighted average lease term for the portfolio, with our leases with Canadian Tire averaging 7.1 years and our occupancy rate remained robust at 99.5%. 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 second quarter. Once again, our results demonstrated the steady growth and resilience of our portfolio. Same-property net operating income, which includes the impact of intensifications, grew by 2.5% in the quarter compared to Q2 2025. These increases reflect the contractual rent escalations in many of our Canadian Tire leases, as well as the contributions from the intensification projects completed in 2025 and 2026. Overall, NOI grew by 4.8% quarter-over-quarter, representing an increase of approximately CAD 5.8 million. This strong performance was supported by the same-property NOI that I just referenced and the impacts of the properties acquired and developed in 2025 and 2026. In the second quarter, general and administrative expenses as a percentage of property revenue were 4.4%, compared to 4% in the same period last year.

[Lesley Gibson, CFO at CT REIT]

The increase was mainly due to fair value adjustments on the unit-based awards and the timing of the deferred income tax provision. Excluding the fair value adjustment, G&A as a percentage of property revenue was 3.6%, compared to 3.4% in the prior year. The fair value adjustment on investment properties was CAD 44.3 million in the second quarter, compared to CAD 23.6 million in the prior year. This gain was driven primarily by contractual rent increases, renewal activity completed in the quarter, and changes to investment metrics for certain retail industrial properties based on market activity and recently completed external appraisals. In the second quarter, AFFO per unit on a diluted basis was CAD 0.326, up 2.5% compared to the second quarter of last year. AFFO on a diluted basis was CAD 0.353 per unit, up 3.2% compared to Q2 2025.

[Lesley Gibson, CFO at CT REIT]

Growth in FFO and AFFO primarily reflects the increase in NOI, partially offset by increases in interest expense. Cash distributions paid in the quarter increased 2.5% compared to Q2 2025 to CAD 0.237 per unit, reflecting the higher monthly distribution rate that became effective in July 2025. The AFFO payout ratio for Q2 was 72.7%, stable from the 72.6% in the same period last year. Turning to the balance sheet, our interest coverage ratio for the second quarter was 3.49x, compared to 3.55x in Q2 of 2025. During the quarter, we completed the issuance of CAD 300 million of Series K unsecured debentures, which carry a five-and-a-half year term at a coupon of 3.57%. The net proceeds were used to repay the CAD 200 million of Series D unsecured debentures that matured on June 1st, 2026, and to pay down amounts owing under our credit facilities.

[Lesley Gibson, CFO at CT REIT]

Even with these refinancing activities, our total indebtedness to EBITDA fair value improved to 6.56x at June 2026 compared to 6.77x at the end of 2025 as earning growth outpaced the increase in debt. With respect to liquidity, we ended Q2 with approximately CAD 12 million of cash on hand, for a total of approximately CAD 312 million available to us as our committed CAD 300 million bank credit facility was undrawn at quarter end. In addition, we had roughly CAD 187 million available on our CAD 300 million uncommitted facility with Canadian Tire. Our strong balance sheet, conservative credit metrics, and ample liquidity provide us with both a strong foundation as well as substantial financial flexibility to fund future growth initiatives. With that, I will turn back the call to the Operator for any questions.

[Operator]

Certainly. As a reminder, ladies and gentlemen, if you do have a question at this time, please press star one one on your telephone. If your question has been answered and you'd like to remove yourself from the queue, simply press star one one again. Our first question comes from the line of Tal Woolley from CIBC Capital Markets. Your question please.

[Tal Woolley, Executive Director at CIBC Capital Markets]

Hey, good morning. Just wondering if you can speak at all to sort of any deal flow that you've seen outside of Canadian Tire. Has there been a lot to look at, a little bit? What's sort of been available to, like, been put in front of you of late?

[Kevin Salsberg, President and CEO at CT REIT]

Hey, Tal, good morning. I'd say on a marketed basis, there's not much out there right now that for us would be on strategy or of interest. Obviously, we've had discussions ongoing with market participants about the type of assets we acquire, which from a strategic perspective would be Canadian Tire stores, single-tenant properties, strategic assets or assets that are adjacent to existing sites we own, and that kind of fits the description of a number of the acquisitions we made in the quarter. Nothing specific for us to speak to on today's call, but obviously there's a lot of activity broadly in the market right now and certainly there could be some subset of assets that would be of interest to us from some of those opportunities. I think we'll just keep at it and we'll see where the year takes us and maybe you can just refresh us on what sort of size or what's our quantity of maybe REIT suitable properties Canadian Tire still holds.

[Kevin Salsberg, President and CEO at CT REIT]

I'd say there's probably between 10-15 assets on the Canadian Tire balance sheet that would meet the REIT's investment criteria. So over time, certainly those could be possible candidates for what we call vend-ins. So we keep our mind turned to that. We obviously have a number of different growth levers between our development pipeline, those vend-ins, and third-party opportunities, and pull on the appropriate lever as desirable or needed when the time comes. So we are also in discussion with Canadian Tire about some of those.

[Tal Woolley, Executive Director at CIBC Capital Markets]

Okay. Then can you just talk a little bit about, you're sort of more into the teeth of doing a lot of Canadian Tire renewals or lease renewals at this point in time. Is that something you guys sit down to tackle two times a year, four times a year? Can you just talk a little bit about the process of that, given that there are normally so many to do?

[Kevin Salsberg, President and CEO at CT REIT]

Sure. Under the lease, there's a period at which they will have to notify us of their intention to renew or not. So that is the sort of governor in terms of the timing of the process or where it starts, and typically that's around 18 months prior to lease expiry. So we have a pretty good line of sight to where things are going from that perspective. The renewals that we announced this quarter pretty much deal with those up to the end of the first half of 2027. Obviously, once we receive their notification or intention with respect to those renewal options, we then sit down, do a little work on market context, market rents, renewal terms, and anything else that needs to be discussed to lead to ultimately the appropriate lease documentation to then codify the renewal.

[Tal Woolley, Executive Director at CIBC Capital Markets]

Okay. Lastly, the leverage metrics really remain low relative to most of the Canadian real estate universe. We've been seeing some other issuers manage to see credit rating upgrades. I'm just wondering, is that something you've been in discussion with the credit rating agencies at any point?

[Lesley Gibson, CFO at CT REIT]

We're really happy where the sort of the metric is overall. I think maybe one of the different parts is that our credit rating is linked to Canadian Tire's, as noted in the DBRS report. We're happy with the credit metrics. They're very positive. I think really our rates are linked to that of Canadian Tire, so there'd have to be a broader discussion. That is something that we discuss with the rating agencies on a regular basis when we meet with them. We sort of are where we are, and if things change for Canadian Tire, then there's a possibility right now that things could change for us.

[Tal Woolley, Executive Director at CIBC Capital Markets]

Got it. Okay. Thanks very much, everybody.

[Kevin Salsberg, President and CEO at CT REIT]

Thank you.

[Operator]

Thank you. Our next question comes from the line of Sam Damiani from TD Cowen. Your question please.

[Sam Damiani, Analyst at TD Cowen]

Thanks, and good morning, everyone. I apologize if this was asked already. I was distracted by some other activity in the REIT sector this morning. Just on the, I guess the new investments announcements, is there any change in your outlook for the year or let's say the next year or so in terms of the velocity of new investments that could be sourced and secured for the REIT?

[Kevin Salsberg, President and CEO at CT REIT]

Good morning, Sam. We don't typically speak to forward expectations on the investment pipeline. I would say in this market, we're being selective. Retail fundamentals are great, but what that's caused in the investment market is a lot of competition and elevated pricing. For us, certainly we have been pretty good at sticking to our knitting with respect to the type of assets we're interested in acquiring. We're going to continue focusing on that type of asset. I mentioned in the previous answer, certainly some of the broader market activity and the M&A we're seeing could bring about some opportunities for us, but it's nothing that we have anything to say about at this point in time.

[Sam Damiani, Analyst at TD Cowen]

Okay, understood. On the St. Catharines acquisition, is there anything more about that asset you could share in terms of when it was last expanded or renovated? Anything unique about the lease there? I mean, the 6.9% cap rate seems to indicate a yield that hasn't moved with the market over the last year, let's say.

[Kevin Salsberg, President and CEO at CT REIT]

Yeah, I think the first thing I will say is we have been talking to Canadian Tire about this asset for some time and kind of locked in on the pricing a little while back. The asset has not been expanded anytime recently, although it is on format. Great site, just a kitty corner from Pen Centre. St. Catharines is a strong market for Canadian Tire. For us, it totally fit with our portfolio and was a desirable asset.

[Sam Damiani, Analyst at TD Cowen]

Yeah, great location for sure. Just last one for me, noting the IFRS NAV is up about 7.5% year-over-year. Just trying to think about how that, I guess the inputs, obviously same property, NOI growth, you have about probably a 1% tailwind from the discount rate being reduced, maybe 2%. Obviously, balance sheet leverage. Are there other factors that are contributing to the NAV growth besides those obvious ones from the MD&A?

[Kevin Salsberg, President and CEO at CT REIT]

Well, the lease renewals that we have affected over the last, call it two years, would be part of the update to the discounted cash flow. We would have development completions tying into it, and then probably some broader future updates to cash flow assumptions would also play into it, Sam.

[Sam Damiani, Analyst at TD Cowen]

Okay. Kevin, you mentioned lease renewals. Does that mean that your IFRS implicitly assumes some percentage of renewal or non-renewal, and then when the lease is obviously renewed, that goes to 100% from 90% or whatever it was assumed. Is that a value-adding event for your IFRS process?

[Kevin Salsberg, President and CEO at CT REIT]

Yeah, we would always have a run rate assumption on a percentage likelihood of lease renewal. I don't think we've changed that particular assumption. I think it's more around the rent uplifts and the rental rates that we hoped to achieve when it comes time for renewal.

[Sam Damiani, Analyst at TD Cowen]

Okay. Very helpful. I'll turn it back, and congrats on the great results.

[Kevin Salsberg, President and CEO at CT REIT]

Thank you.

[Operator]

Thank you. Our next question comes from the line of Giuliano Thornhill from National Bank. Your question, please.

[Giuliano Thornhill, Analyst at National Bank]

Thanks. Good morning, everyone. Just kind of wanted to ask about the pipeline earlier. Is that kind of represented our potential pipeline from CT? Is that representative of your existing portfolio right now? Or is there anything chunkier or higher quality that is available there? Could be available, I guess.

[Kevin Salsberg, President and CEO at CT REIT]

Yeah, we like to think of our existing portfolio as high quality. I would say it certainly fits with our existing asset base, primarily retail properties. One or two smaller non-retail, but I would say it looks pretty comparable to our existing assets.

[Giuliano Thornhill, Analyst at National Bank]

Okay. Just following on that is, with your kind of leverage at pretty low levels, would you ever consider broadening out the investment opportunity set, like maybe initiating more development or just uptaking the investment capacity potentially?

[Kevin Salsberg, President and CEO at CT REIT]

Certainly. We like our balance sheet position in that it gives us a lot of financial flexibility and dry powder if we do find something that we like. Development side, we are open to. The number of projects we have in our development pipeline has certainly shrunk over the last year or so, but the actual dollar quantum is kind of similar with Canada Square. That is a big single investment that we are making in one of our assets, and we are kind of still early days on that project. We are trying to manage development exposure overall in the context of the total spend. I hope that answers your question, but we are open to doing more, but I think it has got to be on strategy and obviously financially attractive to us.

[Giuliano Thornhill, Analyst at National Bank]

Yeah. Then just lastly, on Canada Square, I think it was mentioned in the prepared remarks, around 75% of the project budget has been spent. I am assuming that is for phase one. Is that a good kind of approximation for what phase two could look like, just in terms of modeling out future capital intensity for the business?

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

Good morning. Just to clarify, 17% of our budget. 17, yes. Because we started in Q4, so we are still sort of in early days. The project itself, a retrofit, will take till the end of 2028. So we are 17% spent as of now. And no, it would not be reflective of any future phases. Those would be modeled separately and analyzed separately when the time comes.

[Giuliano Thornhill, Analyst at National Bank]

So that is just phase one, correct?

[Lesley Gibson, CFO at CT REIT]

That's right. Yeah.

[Giuliano Thornhill, Analyst at National Bank]

Okay. Is there anything different about phase II in terms of why would it be different potentially?

[Lesley Gibson, CFO at CT REIT]

Yeah. Phase II, when it comes along down the road, is the residential component of the future land area of Canada Square. Phase I is the office retrofit of the two existing office buildings. Phase II is everything else. They're completely different projects, different scope, budgets, timelines.

[Kevin Salsberg, President and CEO at CT REIT]

Phase one, we're. Sorry.

[Giuliano Thornhill, Analyst at National Bank]

Yep.

[Kevin Salsberg, President and CEO at CT REIT]

I was going to say, phase I, we're working with the existing building. Phase II would be ground-up construction.

[Giuliano Thornhill, Analyst at National Bank]

Yeah, a little different. Then the 17%, is there a CAD dollar figure that you could disclose or approximation in your PUD value that has been outlaid there?

[Kevin Salsberg, President and CEO at CT REIT]

We haven't given a specific number for the project, although we have said that at 100%, it's a little over CAD 200 million.

[Giuliano Thornhill, Analyst at National Bank]

Okay. All right. Thank you.

[Operator]

Thank you. As a reminder, ladies and gentlemen, if you do have a question at this time, please press star 1 1 on your telephone. Our next question comes from the line of Brad Sturges from Raymond James. Your question, please.

[Brad Sturges, Managing Director at Raymond James]

Hey, good morning. Just, I guess on the new investment side, and you talked about the development pipeline shrinking a bit. How do you think that could evolve in terms of the retail intensification opportunities going forward? Do you think that there's some opportunities in the pipeline that could allow for new projects to start, or how should we think about that over the next few quarters?

[Kevin Salsberg, President and CEO at CT REIT]

Yeah. So we've talked about it a little bit over the past couple of calls, where the pace at which we're adding to the development pipeline has certainly slowed, mostly related to the Canadian Tire-related projects. We mentioned that one of the acquisitions in the quarter was a piece of land in the Okanagan Valley in British Columbia. So for us, that is a future retail development opportunity unconnected to Canadian Tire. I would say we have a couple of those in the works. Canadian Tire certainly continues to invest in their store network. We're the beneficiary of that when it's on a REIT site or it's an opportunity to participate alongside of them.

[Kevin Salsberg, President and CEO at CT REIT]

But I think in the context of their True North strategy, certainly there's less focus on store development than in the last iteration of their formal strategy, which was called Better Connected, which really launched or outsized Canadian Tire-related retail development spend for the last couple of years. So there will still be opportunities, but probably to a lesser extent as we've had for the next few years, I anticipate.

[Brad Sturges, Managing Director at Raymond James]

Okay. My other question would be, obviously, you were able to get the bond offering completed in the quarter and bond yields have kind of moved up since then. I guess if you had to reprice that today, how much have the all-in costs moved since June?

[Lesley Gibson, CFO at CT REIT]

The all-in cost probably about 35 basis points sort of since June. So a little bit more, but definitely things have been more volatile and sort of moving around. So I think we're just happy to have that sort of one taken care of early on in the year.

[Brad Sturges, Managing Director at Raymond James]

Perfect. Thank you.

[Kevin Salsberg, President and CEO at CT REIT]

Thank you.

[Operator]

Thank you. As a reminder, ladies and gentlemen, if you do have a question at this time, please press star 1 1 on your telephone. Our next question comes from the line of Lorne Kalmar from Desjardins. Your question, please.

[Lorne Kalmar, Director at Desjardins]

Thanks. Good morning. Just a quick one from me on the leasing side, and sorry if I missed it, but looked like you guys did a pretty decent job in terms of getting the spreads on Canadian Tire stores, as I think we should anticipate by this point. Just on the other leasing you guys did, I know last quarter, I think there were some flat rate renewals that happened that pulled the number down. But at 8%, it is still obviously pretty healthy, but a little bit below where we have seen some of your peers doing lease renewals. I was just wondering if you can give us a little bit of color around that and where you sort of think these will trend over the next 12-18 months.

[Kevin Salsberg, President and CEO at CT REIT]

Good morning, Lorne. I guess the problem with our third-party renewal activity is in most quarters, it is pretty small. This is about 100,000 sq ft. Last quarter you mentioned that was skewed by some flat options that were exercised. I think this quarter there were some fixed rate options in there. There was also some shorter-term lease renewals. It kind of just depends on what is in the mix of that smaller quantum of space being extended. I would not read too much into it other than to say it fluctuates quarter to quarter.

[Lorne Kalmar, Director at Desjardins]

Fair enough. That is all I had. Thank you very much.

[Kevin Salsberg, President and CEO at CT REIT]

Thank you.

[Operator]

Thank you. This does conclude the question and answer session of today's program. I would like to hand the program back to Kevin Salsberg, President and CEO, for any further remarks.

[Kevin Salsberg, President and CEO at CT REIT]

Thank you, Jonathan. Thank you all for joining us today. We look forward to speaking with you again in November after we release our Q3 results. Thank you.

[Operator]

Thank you, ladies and gentlemen, for your participation in today's conference. This does conclude the program. You may now disconnect. Good day.

Participants

Analysts

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