BTB Real Estate Investment Trust Q2 2026 Earnings Report

BTB Real Estate Investment Trust EPS Results

• Actual EPS: C$0.08
• Consensus EPS: N/A
• Beat/Miss: N/A
• One Year Ago EPS: N/A

BTB Real Estate Investment Trust Revenue Results

• Actual Revenue: $31.87 million
• Expected Revenue: N/A
• Beat/Miss: N/A
• YoY Revenue Growth: N/A

BTB Real Estate Investment Trust Announcement Details

• Quarter: Q2 2026
• Date: 8/11/2026
• Time: After Market Closes
• Conference Call Date: Wednesday, August 12, 2026
• Conference Call Time: 9:00AM ET

BTB is a real estate investment trust listed on the Toronto Stock Exchange. BTB invests in industrial, suburban office and necessity-based retail properties across Canada for the benefit of their investors. As of today, BTB owns and manages 72 properties, representing a total leasable area of approximately 6 million square feet. People and their stories are at the heart of our success.

BTB Real Estate Investment Trust Q2 2026 Earnings Call Transcript

Key Takeaways

• BTB continued its portfolio shift toward industrial properties, which now represent 38% of the portfolio versus 23% in 2021. Six-month acquisitions totaled CAD 38.5 million and are expected to contribute approximately CAD 3 million in annualized NOI.
• Leasing momentum remained strong, with 378,000 square feet of activity and a 4.6% average renewal spread; industrial, retail, and suburban office spreads were 10.5%, 7.0%, and 2.9%, respectively. Retail occupancy remained particularly strong at 98.9%.
• Q2 adjusted FFO per unit rose nearly 17% to CAD 0.097, while adjusted AFFO per unit increased 3% to CAD 0.098. The AFFO payout ratio improved to 76.5%, and the quarterly distribution was maintained at CAD 0.075 per unit.
• Cash same-property NOI was flat year over year in Q2 and declined 4.8% for the first half, reflecting free rent, unfilled tenant departures, a rent reduction granted to Lion Electric, and the absence of a prior-year office lease-cancellation payment.
• Management is targeting roughly CAD 100 million or more of office dispositions, potentially supplemented by retail sales, over the remainder of 2026 and through 2027 to fund industrial acquisitions. The 132,000-square-foot Laval vacancy remains unresolved, although management is pursuing multiple prospects and expects potential 2027 revenue.

Presentation

[Operator]

Good morning. My name is Joelle, and I will be your conference call facilitator today. At this time, I would like to welcome everyone to the BTB Real Estate Investment Trust 2026 second quarter conference call, for which management will discuss the quarter ended June 30th, 2026. All lines have been placed on mute to prevent any background noise. Should you wish to follow the presentation in greater detail, management has made a presentation available on BTB's website at www.btbreit.com/investors/presentations/quarterly-meeting-presentation.

[Operator]

After the speaker's remarks, there will be a question-and-answer period reserved exclusively for analysts. If you would like to ask a question during this time, please press star followed by the number one on your keypad. Before turning the meeting over to management, please be advised that some of the statements that may be made during this call may be forward-looking in nature. Such statements involve numerous factors and assumptions and are subject to inherent risks and uncertainties, both general and specific, which gives rise to the possibility that predictions, forecast projections, and other forward-looking statements will not be achieved.

[Operator]

Several important factors could cause BTB Real Estate Investment Trust actual results to differ materially from the expectations expressed or implied by such forward-looking statements. These risks and uncertainties and other factors that could influence actual results are described in BTB Real Estate Investment Trust management's discussion and analysis, and in its annual information form, which were filed on SEDAR+ and on BTB's website at www.btbreit.com/investors/reports. I would like to remind everyone that this conference is being recorded. Thank you.

[Operator]

I will now turn the conference over to Mr. Michel Léonard, President and Chief Executive Officer, accompanied today by Mr. Marc-André Lefebvre, Vice President and Chief Financial Officer, Mr. Charles Dorais Bédard, Vice President of Finance, and Ms. Stéphanie Léonard, Principal Director of Leasing. Mr. Léonard, you may begin the conference.

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

Thank you, Joelle. Good morning, everybody. With pleasure, we are reporting our Q2 numbers, and we are continuing on our investment activity as purchasing industrial assets and selling office properties. You have witnessed that activity throughout the first two quarters. We are still actively involved in densifying some of our properties in Montreal and Ottawa, having made representations to both cities as far as a redevelopment for each property is concerned. We did, on May 14th, 2026, establish an ATM program following the filing of a prospectus supplement that was filed back on December 19, 2025, and the ATM program was approved by the Toronto Stock Exchange on May 14, 2026, and to date, it hasn't been used. On our ESG front, we are pleased to report that on June 10, we did publish our third ESG report.

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

In 2025, we strengthened our environmental data collection. We expanded sustainability certifications across our portfolio with 13 new BOMA BEST certifications, and we are continuing to foster an engaging and inclusive workplace for our employees and the community. As far as acquisition is concerned, for our property located at 7 & 9 Montclair Boulevard in Gatineau, we owned only 50% of that property, obviously, through a sort of a joint interest with another real estate developer. We decided to terminate this agreement by purchasing the 50% interest that we didn't own from that co-owner for CAD 7 million.

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

This acquisition is expected to contribute approximately CAD 500,000 on an annualized basis for NOI. Subsequent event to the quarter, we did dispose of our property located in Trois-Rivières, and that it closed on August 4th of this year, for a total proceed of CAD 20 million, obviously excluding transaction fees and adjustment. I'd like to note that this property was leased on a the occupancy rate was 80%. For the six-month period, the trust concluded CAD 38.5 million of acquisitions, and it's anticipated that these acquisitions will contribute on an annualized basis, CAD 3 million to the NOI.

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

If we look at the distribution of our portfolio, back in 2021, we used to be at 23% industrial, now we're jumping to 38% industrial. Our suburban office ownership was at 47%, we're down to 41%. Necessity-based retail used to be at 30%, and we're at 21%. As far as our geographical diversification, except for the sale of the property that represented 3% of the total ownership on the segment, basically, there has been no change.

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

The key metrics on page six for those that are following me with the presentation. As far as the fair value of investment properties, we see a slight increase of 1.7%. Our occupancy rate went slightly up, 10 basis points, to 91.3%. The total renewals concluded in Q2 2026, and new leases were 378,000 sq ft. We've witnessed positive leasing spreads. Our payout ratio has come down on an AFFO basis, and we have strong leasing activity. With this, I'll turn the presentation to Stéphanie on this leasing aspect.

[Stéphanie Léonard, Principal Director of Leasing at BTB Real Estate Investment Trust]

Good morning, everyone. If you're following us on our online presentation, we're currently at page eight of said presentation. During the quarter, we leased a total of roughly 79,000 sq ft to new tenants. In addition to renewing leases of existing tenants for roughly 299,000 sq ft, representing a total leasing activity of roughly 378,000 sq ft for the quarter. Our most noteworthy transaction on a square foot basis was concluded with ProGym in Saint-Bruno-de-Montarville in our necessity-based retail segment, located in Montreal, representing 19,000 sq ft. It's important to note that this transaction was directly in line with our leasing strategy for our necessity-based retail property, which is to increase the notoriety of tenants by replacing previous tenants who either paid under market rent or percentage rent, and with tenants that are more prestigious or have better financial capabilities.

[Stéphanie Léonard, Principal Director of Leasing at BTB Real Estate Investment Trust]

Our second most noteworthy transaction was also concluded with Noibu Technologies in our suburban office segment located in Ottawa, representing 14,444 sq ft. The essence of this transaction was similar to ProGym, that we had an opportunity to terminate the lease of an occupying tenant whose lease was coming to maturity in 2027, and we knew that they would not renew their lease. We are capitalizing on market momentum in order to replace them with Noibu for a longer term and higher rent. It is important to note that both ProGym and Noibu's cases, both transactions affected our renewal rate, as we needed to force tenant departures in order to account for these transactions. Therefore, there is no direct positive absorption to our occupancy rate as a result of these transactions.

[Stéphanie Léonard, Principal Director of Leasing at BTB Real Estate Investment Trust]

Out of the other transactions completed throughout the quarter, I wanted to note two following tenants with whom we signed expansions with during the quarter. Notably, we signed a 3,380 sq ft expansion with SFL Wealth Management, bringing their total footprint with us to 37,000 sq ft in Quebec City, and again, in our suburban office segment. In addition to an expansion of 2,422 sq ft with M&P, again in our suburban office segment in Laval, bringing their total footprint with us to 16,000 sq ft. In terms of our lease renewals for the quarter, we had quite a busy quarter with just over 299,000 sq ft of lease negotiations with our current tenants. As I mentioned, some of our new transactions impacted our lease renewal rates, but excluding these tenant replacements, our renewal rate for the quarter would have been 76%.

[Stéphanie Léonard, Principal Director of Leasing at BTB Real Estate Investment Trust]

Out of our noteworthy transactions, we renewed leases with difuze Inc, in our suburban office segment located in Montreal for a 10-year term for roughly 50,000 sq ft. In addition to a five-year renewal with BMO Nesbitt Burns in our suburban office segment in Ottawa for roughly 20,000 sq ft. In addition, as we always look to renew leases in anticipation of their maturity, we renewed a total of 157,000 sq ft of leases whose maturity dates fell in 2027 and subsequent years after. In terms of noteworthy transactions, we are looking at DBA Group in Saint-Laurent, that is in our Montreal portfolio in our suburban office segment, for 69,000 sq ft for a 10-year term. With Royal Drugs in Ottawa, also known as the Ottawa Medical Group, in our industrial segment for 46,000 sq ft, also for a 10-year term.

[Stéphanie Léonard, Principal Director of Leasing at BTB Real Estate Investment Trust]

With SFL Wealth Management, as I mentioned, that they did take an expansion, but we also renewed their lease for roughly 33,000 sq ft in our suburban office segment in Quebec City, also for a 10-year term. In terms of rental spreads for the quarter, we achieved a 4.6% average increase in our lease renewal rates across all segments. Consistent with our strategy to always find an increase when possible. We increased our industrial segment by 10.5%, our necessity-based retail segment by 7%, and our suburban office segment by 2.9%. In terms of our active large vacancies, I wanted to provide an update for a property located at 3695 des Laurentides in our Montreal portfolio, more specifically in Laval. As a reminder, this property spans 132,000 sq ft and represents a 2.2% impact on our occupancy rate.

[Stéphanie Léonard, Principal Director of Leasing at BTB Real Estate Investment Trust]

I've mentioned in past quarters that we were negotiating with an international client for different size requirements of theirs. I'm not necessarily proud to say that we're still negotiating with them, as I do understand that there have been prolonged negotiations, and it is taking time. The client, however, has re-toured the property last week for a different requirement, and we're still in their plans at this time. It's just dealing with an international company takes more time and takes a little bit more, not necessarily effort, but takes more effort to get it to the finish line. However, we also have strummed up leasing interest with three other parties for various size requirements, including a full building requirement. Based on our discussions and certain terms that have been provided to our prospects, we'd be expecting revenue in 2027.

[Stéphanie Léonard, Principal Director of Leasing at BTB Real Estate Investment Trust]

Over the past summer months, we've noticed increased momentum in the market, mainly in terms of our industrial availability, which is a positive sign. Office requirements have remained very active as we do have a healthy pipeline. Retail, as per usual, continues to be our most stable operating segment, showing a 98.9% occupancy rate for which demand is constant. On this note, I'll turn over the call to Marc-André.

[Marc-André Lefebvre, VP and CFO at BTB Real Estate Investment Trust]

Thank you, Stephanie. Good morning, everyone. For the second quarter, rental revenues stood at CAD 31.9 million. That's an increase of 4.5% compared to the same quarter last year. The increase is caused by a non-cash straight-line lease adjustment, which negatively affected the rental revenue by CAD 1.8 million in the second quarter of last year. Dispositions completed throughout 2025 and 2026 were partially offset by acquisitions concluded this year, and the net increase is CAD 0.2 million. New leases concluded, higher lease renewal rental rates, and increases in rental spreads for in-place leases contributed to an increase of CAD 0.2 million, which was partially offset by a decrease of CAD 0.8 million resulting from planned tenant departures that are not yet replaced. Also, from free rent granted to new tenants and the rent reduction granted to The Lion Electric Company.

[Marc-André Lefebvre, VP and CFO at BTB Real Estate Investment Trust]

NOI increased by 10.5% compared to the same quarter last year, and the increase was driven by the previously mentioned straight-line lease adjustment. Cash same-property NOI remains stable for the quarter compared to the same period last year. For the six-month period, cash same-property NOI decreased by 4.8%. The year-to-date decrease is driven by both industrial and office segments. First, the office segment was impacted by a partial lease cancellation payment received, and that payment is CAD 1 million. It positively affected NOI during the first quarter of 2025. A decrease in NOI due to free rent granted to new tenants in the first quarter of 2026, with whom leases were concluded in the fourth quarter of 2025, and planned departure that has not been replaced.

[Marc-André Lefebvre, VP and CFO at BTB Real Estate Investment Trust]

Second, the decrease in the industrial segment is due to the planned departure of a tenant not yet fully replaced and the rent reduction of CAD 0.4 million granted to The Lion Electric Company. FFO adjusted per unit was CAD 0.097 for the quarter. That is an increase of CAD 0.014 or almost 17% compared to the same quarter last year. This increase was mainly driven by the previously mentioned increase in NOI. Adjusted AFFO per unit was CAD 0.098 for the quarter, an increase of CAD 0.003 or 3% compared to the same quarter last year. The increase is explained by an increase in cash NOI of CAD 0.3 million. We maintain our distribution to unitholders at CAD 0.075 per unit for the second quarter, and that represents CAD 0.30 per unit on an annualized basis.

[Marc-André Lefebvre, VP and CFO at BTB Real Estate Investment Trust]

The AFFO-adjusted payout ratio was 76.5% for the quarter, and that is an improvement of 2.7% from the same quarter last year. The value of our investment properties portfolio remains virtually unchanged at CAD 1.2 billion compared to the prior quarter. We did not make any portfolio-wide changes to our cap rate this quarter, and the weighted average cap rate for the entire portfolio stood at 6.7%, the same as the previous quarter. We concluded the quarter with a total leverage ratio of 58.1%.

[Marc-André Lefebvre, VP and CFO at BTB Real Estate Investment Trust]

The weighted average term and average interest rate on our mortgage portfolio were 2.2 years and 4.4%, respectively. Finally, at the end of the quarter, we held CAD 0.6 million in cash and CAD 14.8 million was available under our credit facilities, and that is a total equity of CAD 15.4 million. This completes our presentation. We will now open the call to questions. Operator, can we please have the first question on line?

[Operator]

At this time, I would like to remind everyone that the analysts may now ask their questions by pressing star followed by the number one on your telephone keypad. Again, if you would like to ask a question, please press star one. We will now pause for just a moment to compile the Q&A roster. Your first question comes from Mark Rothschild with Canaccord Genuity. Your line is now open.

[Mark Rothschild, Analyst at Canaccord Genuity]

Thanks. Good morning.

[Marc-André Lefebvre, VP and CFO at BTB Real Estate Investment Trust]

Good morning, Mark.

[Mark Rothschild, Analyst at Canaccord Genuity]

Hey, just starting with, obviously it is not a major deal with the office partner that you bought out. Just talk a little bit about what went into the thought of buying out the stake and the long-term plan. Is this a property that you are going to maybe look to sell at some point soon?

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

The dynamic of purchasing this property was basically a consequence of the poor management of our partner. We felt that it was time for us to separate as a result of the poor management. So two years ago, driven by the same kind of impetus, we put the property on the market. Most of the people that were looking at purchasing the property were looking at it on a development basis. Obviously on a pure development basis, it is worth a lot more than the total consideration that we called it, CAD 14 million.

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

Our partner at that time was looking at it with a lot of stars in his eyes, basically thinking that this was a property that was worth CAD 20 million, CAD 22 million, but never basically made an offer to us to exit. That is what we wanted. We wanted to exit from this property. The frustrations just mounted, and as a result, we decided that it was time for us to step in and purchase the 50% interest. The property is going to be eventually on the market, so it is not a property that we are going to hold. It is just we are waiting for the right moment in order to put it back on the market. We did attract some purchasers, and our goal is to reach back to these eventual purchasers.

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

For us, it was a question of managing, it was a question of responding properly to our tenancy. They had the management interest, and I will give you a few examples. When it was time to finance the property, we had to take the responsibility of financing or refinancing the property, negotiating with the lender because they seemed to be unable to do so. When it was time to negotiate the lease with Giant Tiger, that we basically identified during, when we go to ICSC and so on, and we identified Giant Tiger as a potential tenant, we had to carry all the negotiations, and at the end of the day, we had to pay them a fee for the negotiations that we did carry.

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

The frustrations were there, and we had to find a way out. Obviously, for us, the best way out would have been to have been purchased, but unfortunately, I do not think that the partner that we had had the money in order to purchase us. That is the scenario. For us, it is a relief and it is basically going back to the market eventually.

[Mark Rothschild, Analyst at Canaccord Genuity]

Okay, great. Thanks. Maybe just one more. A lot of leasing information that was given pretty quickly. Looking at the leasing spreads for industrial retail, they've generally been pretty good. Are these numbers that we should look at as good expectations for what could be achieved over the next year or so? Or were there any specific items that maybe pushed these numbers higher?

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

No, I think the numbers are a good indication. I think if you look at the past and you look at our trend, I think the numbers are strong and are a good indication.

[Mark Rothschild, Analyst at Canaccord Genuity]

Okay, great. Thanks. I'll throw it back.

[Operator]

Again, if you would like to ask a question, please press star one. Your next question comes from Matt Kornack with National Bank of Canada. Your line is now open.

[Matt Kornack, Analyst at National Bank of Canada]

Good morning, guys. Maybe just to follow up on Mark's questioning with regards to the leasing spreads, but on the occupancy front. Can you give us a sense as to, obviously, retail's full, industrial, it seems like took a little bit of a step back in the quarter, but how should we think about the trajectory in terms of your leasing prospects on vacant space versus any known kind of non-renewals in the next 12 months, call it?

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

Let's start with non-renewals. We haven't received any notices from our tenancy that they're not renewing leases for next year. That's a positive aspect. We're now in August. Usually notices come, let's say, six months prior to the end of the term of the lease, and we haven't received notices on that front. As far as our leasing aspect and the occupancy rate, we're very hopeful that, first of all, as Stephanie mentioned earlier, that the des Laurentides property is going to be partially or totally leased on a committed basis by the end of the year. That's 2.2%. We're, I wouldn't say far advanced in negotiations, but I would say we are in negotiations, and two of these tenants that Stephanie spoke about have to commit to something by either the end of September or the end of October.

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

On a committed basis, we're hopeful that it's going to pan out. One of these tenants, the one that is looking at the whole building, is a tenant that needs a fit-up period of almost a year. It would mean that the property would be committed, and I'm just on an assumption basis, let's say that they would have occupancy on January 1st. The retrofit that they have to build in the property would take roughly 9-12 months. As a result of it, as far as cash flow is concerned, it would not hit our cash flow next year, but as far as the streamlining of rent, then it would be recognized. Again, we're hopeful. We're talking about a minimum of 2% as far as the occupancy is concerned.

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

The other one that Stephanie mentioned in her presentation is a 24,000 sq ft property located in Alberta. That property, the reason that we lost our tenant is not because they didn't enjoy it, was basically because the building was too small for them and they needed to double their size. There are two prospects that are looking at the property right now, both of them to lease up the whole building. We're hopeful on that front again. That's 24,000 sq ft. I don't think that that's going to move the needle. What will move the needle is more the 132,000 sq ft of availability in Laval.

[Matt Kornack, Analyst at National Bank of Canada]

Michel, in terms of the terms of, I understand that it hasn't been signed and it's a prospect, but where would the rents be relative to the prior tenant? It sounds like the CapEx fit-out is going to be done on the part of the tenant. Would you have to give any sort of TIs or leasing costs?

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

We're not quite there yet as far as are we going to contribute or not? We are not quite there yet. The past tenant was paying a little bit less than CAD 8 net, and the discussions are north of CAD 11. So at a minimum, there's a premium on rent of CAD 3/sq ft.

[Matt Kornack, Analyst at National Bank of Canada]

Okay. This quarter, I mean, last quarter, CapEx was down. This quarter, it was up a bit. As you're going through some of the leasing or just in the normal course, do you expect CapEx to kind of remain in long-term average ranges, or should we expect a little bit of a pickup in the near term?

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

No, we're not expecting it to pick up. I think it's always a bit slightly down, slightly up, but on a yearly basis, it's going to normalize to historical numbers.

[Matt Kornack, Analyst at National Bank of Canada]

Okay. Then lastly, just on the capital allocation side, you have done some dispositions in Trois-Rivières, which I think are welcome. What are you thinking over the next, call it, 12 months in terms of potential to sell more assets, the refocusing on industrial and the regions that you are potentially looking at for that expansion, and just the general tone in the disposition or acquisition market?

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

We see as far as disposing of office properties, just to be specific to your question and redeploying office into industrial. We are seeing a higher demand at this point. We obviously have demand for certain retail properties. I mentioned during the last quarter that we had put a retail property, or call it two retail properties on the market with an office property as a package. We were not successful in selling it as a package. We are looking at possibly selling. It is located in a tertiary market, the Saint-Jean-sur-Richelieu, as we have discussed before. So we are looking at putting the retail property on the market and one of the office properties on the market. Last year, we were not successful in selling the property located in Saint-Hilaire as a result of the fact that the lease term for the major tenant was expiring in 2027.

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

As Stéphanie mentioned, we were successful in renewing the term of that lease for 10 years. So now we are getting ready to put it back on the market or going back to the potential acquirers that were identified and were steadfast on a condition of a lease renewal. So overall, I think that if you start adding from this point on this year to the end of next year, we may have, and what we want, our objective is to sell roughly CAD 100 million, if not more, of office assets. With this, maybe a little bit of retail to complement the package and redeploying the totality of the proceeds of the sale into industrial.

[Matt Kornack, Analyst at National Bank of Canada]

Just relative cap rates between those two. Are you finding that they are more similar today for the types of assets, suburban office outside of Montreal and then industrial where you are buying it? Have those compressed, or are they still a little bit wide of one another?

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

That's your tricky question of the day. The cap rates, I think that if you're looking at Ottawa is experiencing a very high cap rate for office properties. If we're looking at, I'm not mentioning that we're going to sell our Ottawa assets because the cap rates are just, for now, too high, although the properties are stellar in my mind. But unfortunately, we're not going to hit the bid on those properties. On the island, Montreal, or around the island, Montreal, we're seeing that if you compare this year to last year, there's been compression, but not enough to get to the same cap rates as the industrial properties that we are purchasing. There's going to be some slippage there. However, if you look at a property, for instance, the one that we sold in Trois-Rivières, it was 80% leased.

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

80% leased on an in-place cap rate basis was 8.5, I think, a cap rate of 8.5. But to redeploy this, it means that if we take the same amount of cash and we redeploy it into an industrial property that is 100% leased, we're going to get more NOI out of our money. On a redeployment basis, I think that it becomes more affordable for us and obviously accretive to us to look at the NOI that is being produced by a property versus only looking at a cap rate.

[Matt Kornack, Analyst at National Bank of Canada]

No, that makes sense. Thanks, Michel.

[Operator]

At this time, no further questions. Please go ahead, Mr. Léonard.

[Michel Léonard, President and CEO at BTB Real Estate Investment Trust]

Thank you for participating in our meeting. I think that Matt touched on the points that I was going to hit on my conclusion. Unfortunately, I don't want to repeat myself and waste your time. Overall, I think that we're confident that we're going to be able to sell our properties contrary to what happened during COVID and so on. We're confident that we don't have to necessarily give them away in order to redeploy in industrial. We do have a pipeline to redeploy our capital into industrial assets, and hence, we are going to be very active in our selling of some properties within our portfolio. With this, I thank you very much for participating in this call today, and we'll see you for our results of Q3 2026. Thank you.

[Operator]

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

Participants

Executives

• Michel Léonard, President and CEO
• Stéphanie Léonard, Principal Director of Leasing
• Marc-André Lefebvre, VP and CFO

Analysts

• Mark Rothschild, Analyst at Canaccord Genuity
• Matt Kornack, Analyst at National Bank of Canada